Lebanon hosted a delegation of more than 80 economic leaders and private-sector figures from the UAE on Wednesday, announcing the creation of a business council that signals a thaw in bilateral relations.
It is hoped the newly formed group could pave the way for Emirati investments in Lebanon’s struggling economy.
The Lebanese-Emirati Economic Forum, attended by Dr Thani Al Zeyoudi, Minister of Foreign Trade, is being held in Lebanon for two days. Business figures told The National they have been in Lebanon since last week, hoping to gain a “first-mover advantage” by investing in sectors of the Lebanese economy such as logistics, agriculture, energy, aviation and tourism.
“I think that if everyone waits until the [economic and security] crisis is over, it will take time,” said Mohamed Yusuf Adam, vice president of the National Pulse investment conglomerate in the UAE and a member of the delegation. “Let's create more justifications for calming the situation through economic co-operation.”
Mr Adam encouraged business leaders “to focus on the economic aspects, to focus on improving the situation more than focusing on waiting until the crisis is resolved or waiting on other ideas”.
Mohammad Choucair, head of the Chamber of Commerce, Industry and Agriculture of Beirut and Mount Lebanon, and organiser of the Lebanese-Emirati Economic Forum, said the delegation was “a message of affection, support and confidence in Lebanon”.
“The establishment of the Lebanese-Emirati Business Council, the lifting of the travel ban and the Emirati delegation's visit to Lebanon are all indicators of the strength of the fraternal relations between the two countries,” Mr Choucair said. He was referring to an Emirati travel ban, lifted in June.
The event signals a rapprochement between the two countries after years of a deteriorating relationship. “I believe in Lebanon because, most importantly, Lebanon has regained its sovereignty,” Mr Choucair told The National, referring to a Lebanese government decision to outlaw Hezbollah’s military and security operations.
Years of conflict have considerably weakened Hezbollah, with Israel destroying much of its leadership and arsenal. The group has since come under unprecedented domestic and international pressure to surrender its weapons. In July, Lebanon signed a preliminary agreement with Israel aimed at ending hostilities, under which Hezbollah must give up its arms, as Israel begins a phased withdrawal from areas it occupies in south Lebanon.
Lebanon’s US-backed President, Joseph Aoun, has stressed the need to restore Lebanon’s sovereignty and stop Iranian interference in its affairs. “There is no longer a particular group or party speaking for Lebanon,” said Mr Choucair. “Today there is a Lebanese state and a Lebanese government speaking for Lebanon.”
The UAE-Lebanon Business Council is expected to develop an “investment road map” that would open up investment opportunities in Lebanon, said Abdulaziz Mohammed Al Shamsi, assistant director-general of the Sharjah Chamber of Commerce and Industry.
Mr Al Shamsi told The National that “the council will be one of the main mechanisms for developing economic investment relations”.
The revival of economic ties is a win-win situation, according to participants. While it is expected to provide a much-needed boost to the Lebanese economy, it also offers the UAE an opportunity to diversify its economy beyond oil revenue, Mr Al Zeyoudi said.
“These figures reflect the significant potential available to us to further strengthen economic partnerships in the coming years,” Mr Al Zeyoudi added. “We believe there are promising opportunities for co-operation in these fields that can enhance the competitiveness of both economies and create new opportunities for the private sector.
“Lebanon also has significant strengths, particularly its human capital,” he explained. With a significant segment of Lebanon’s diaspora in the UAE, “Lebanese professionals have demonstrated their excellence”.
Mr Adam of the National Pulse said that for him and other investors in Lebanon, “it’s all about timing. The first-mover advantage is now. This is the moment to move. Lebanon is a driving force, while the UAE is oriented towards the global economy.”
He added: “Being able to lock in an early partnership and establish early mutual support is very important. It’s not a one-way relationship – it works both ways.”
