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Conflict in Lebanon could cause 9.2% drop in GDP in 2024: UN

Conflict in Lebanon could cause 9.2% drop in GDP in 2024: UN
People drive past a Lebanese national flag fluttering in a square in central Beirut on Oct. 21, 2024, amid the ongoing Israel-Hezbollah war. (AFP)
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Updated 24 October 2024

Conflict in Lebanon could cause 9.2% drop in GDP in 2024: UN

Conflict in Lebanon could cause 9.2% drop in GDP in 2024: UN
  • “The scale of the military engagement, the geopolitical context, the humanitarian impact and the economic fallout in 2024 are expected to be much greater than in 2006,” UNDP said
  • “The escalating hostilities in Lebanon in 2024 strike while Lebanon is already weakened by years of political, economic, and social crises“

UNITED NATIONS: Fighting in Lebanon could further destabilize the country’s economy, already devastated by years of crisis, the UN warned Wednesday, predicting a 9.2 percent drop in GDP in 2024 if the conflict continues.
After a year of border skirmishes, Israel and the Iran-backed militant group Hezbollah are now engaging in open conflict. Late last month, Israel launched a ground offensive in southern Lebanon.
“The scale of the military engagement, the geopolitical context, the humanitarian impact and the economic fallout in 2024 are expected to be much greater than in 2006,” when the last Israel-Hezbollah war erupted, the UN Development Programme said in an initial evaluation of the economic impact on Lebanon.
“The escalating hostilities in Lebanon in 2024 strike while Lebanon is already weakened by years of political, economic, and social crises,” it said.
Lebanon’s GDP contracted by 28 percent between 2018 and 2021, and the Lebanese pound lost more than 98 percent of its value, sparking hyperinflation and a significant loss of purchasing power, the report said.
Despite all that, the situation seemed to have stabilized in 2022 and 2023, and the UN agency had predicted 3.6 percent growth in 2024, Kawthar Dara, an economist in the UNDP country office in Lebanon, told AFP.
But if the fighting persists until the end of the year, “GDP is projected to decline by 9.2 percent,” she added, citing two main reasons — companies unable to do business because of Israeli air strikes, and capital destruction, from factories to roads.
The conflict, which has intensified since September 23, “threatens to further destabilize Lebanon’s already fragile economy,” and lead to a “prolonged economic downturn.”
“Even if it ends in 2024, the consequences of the escalation of hostilities in Lebanon are expected to persist for years,” the UNDP report said.
Without “substantial” international support, Lebanon’s economic outlook is “grim,” with GDP expected to contract by 2.28 percent in 2025 and another 2.43 percent in 2026.
And while in 2006, economic activity quickly resumed along with reconstruction, this time, “the dynamic is totally different,” Dara said, expressing concern about the willingness of international donors to come to Lebanon’s aid again.
The UN agency said in its report that with living conditions severely diminished, “it is imperative for the international community to mobilize immediate humanitarian relief support,” along with development assistance for longer-term recovery.


Israel intercepts missile fired from Yemen

Israel intercepts missile fired from Yemen
Updated 12 sec ago

Israel intercepts missile fired from Yemen

Israel intercepts missile fired from Yemen
  • Interception comes a day after Israel carried out air strikes on its Houthi-held port of Hodeida
JERUSALEM: The Israeli army said Tuesday it had intercepted a missile fired from Yemen, a day after Israel carried out air strikes on its Houthi-held port of Hodeida.
“Following the sirens that sounded a short while ago in several areas in Israel, a missile launched from Yemen was intercepted by the IAF,” the Israeli military reported on Telegram.

WHO says Israeli military attacked staff residence in Gaza

WHO says Israeli military attacked staff residence in Gaza
Updated 43 min 11 sec ago

WHO says Israeli military attacked staff residence in Gaza

WHO says Israeli military attacked staff residence in Gaza
  • Airstrikes caused a fire and extensive damage, and endangered WHO staff and their families, including children
  • WHO stated it will remain in Deir Al-Balah and expand its operations despite the attacks

The World Health Organization said the Israeli military attacked its staff residence and main warehouse in the Gazan city of Deir Al-Balah on Monday, compromising its operations in Gaza.

The United Nations agency said the WHO staff residence was attacked three times, with airstrikes causing a fire and extensive damage, and endangering staff and their families, including children.

Israeli tanks pushed into southern and eastern districts of Deir Al-Balah for the first time on Monday, an area where Israeli sources said the military believes hostages may be held. Tank shelling in the area hit houses and mosques, killing at least three Palestinians and wounding several others, local medics said.

“Israeli military entered the premises, forcing women and children to evacuate on foot toward Al-Mawasi amid active conflict. Male staff and family members were handcuffed, stripped, interrogated on the spot, and screened at gunpoint,” WHO said.

Two WHO staff and two family members were detained, it said in a post on X, adding that three were later released, while one staff member remained in detention.

“WHO demands the immediate release of the detained staff and protection of all its staff,” WHO Director-General Tedros Adhanom Ghebreyesus said.

Deir Al-Balah is packed with Palestinians displaced during more than 21 months of war in Gaza, hundreds of whom fled west or south after Israel issued an evacuation order, saying it sought to destroy infrastructure and capabilities of the militant group Hamas.

WHO said its main warehouse, located within an evacuation zone, was damaged on Sunday due to an attack that triggered explosions and a fire inside.

WHO stated it will remain in Deir Al-Balah and expand its operations despite the attacks.

Britain and more than 20 other countries called on Monday for an immediate end to the war in Gaza and criticized the Israeli government’s aid delivery model after hundreds of Palestinians were killed near sites distributing food.

The war began when Hamas-led militants stormed into Israel on October 7, 2023, killing 1,200 people and taking 251 hostages back to Gaza, according to Israeli tallies.

The Israeli military campaign against Hamas in Gaza has since killed over 59,000 Palestinians, according to health officials, displaced almost the entire population, and caused a humanitarian crisis.

The World Health Organization describes the health sector in Gaza as being “on its knees,” with shortages of fuel, medical supplies and frequent mass casualty influxes.


Once a beacon of hope, Tunisia’s civil society struggles to survive

Once a beacon of hope, Tunisia’s civil society struggles to survive
Updated 22 July 2025

Once a beacon of hope, Tunisia’s civil society struggles to survive

Once a beacon of hope, Tunisia’s civil society struggles to survive
  • The Tunisian General Labour Union, which won the 2015 Nobel peace prize with other civil society groups and could once bring tens of thousands onto the streets, has been sapped by the arrests of junior officials on corruption charges

TUNIS: In May 2024, Tunisian activist Cherifa Riahi was arrested just two months after giving birth, accused of harboring illegal migrants. Over a year later, she is still in prison without charge.
Rights groups see Riahi’s case as a symbol of accelerating repression of civil society under President Kais Saied, who dissolved parliament in 2021 and began ruling by decree.
The crackdown marks a significant turnaround for Tunisia, where civil society groups flourished in the wake of the 2011 uprising that unseated President Zine El-Abidine Ben Ali, inspired other Arab Spring uprisings, and helped shape a democratic transition.

HIGHLIGHTS

• Activists subject to detentions, threats

• Groups report asset freezes and raids

• President accuses them of serving foreign agendas

As head of a refugee support group, Riahi had been helping sub-Saharan asylum seekers and other migrants find housing and access medicine and food. Her family says she did nothing wrong.
The forced separation from her daughter and young son has been traumatic.
“The girl doesn’t recognize her mother at all,” Riahi’s mother Farida, who is now caring for her grandchild, told Reuters at their family home in La Marsa near the capital, Tunis.
“They took her while she was breastfeeding. We didn’t even have time to understand what was happening.”
Since Saied’s power grab, at least a dozen civil society figures like Riahi have been detained on allegations activists denounce as fabricated, according to rights groups and lawyers. At least 10 civil society groups have had their assets frozen and offices raided, they say.
The Tunisian General Labour Union, which won the 2015 Nobel peace prize with other civil society groups and could once bring tens of thousands onto the streets, has been sapped by the arrests of junior officials on corruption charges.
The Tunisian government’s media office did not respond to calls and written questions seeking comment about Riahi’s case and those of other activists and civil society groups.
Saied, 67, has accused civil society groups of “serving foreign agendas” and undermining national unity.
He has said he will not be a dictator and that freedom and democracy will be preserved, but that he will not allow chaos or interference through foreign funding or organizations that represent a “tool of treason.”
Activists warn that some of Tunisia’s last surviving democratic gains are at risk as the judiciary, media and parliament have all come under tighter executive control and most opposition party leaders are in prison.
“The attack on civil society organizations is not an isolated incident,” said Romdhane Ben Amor of the Tunisian Forum for Economic and Social Rights, an independent advocacy group.
“It comes within the context of the authorities’ plan to close civic space and to end the democratic openness achieved by Tunisians after January 14, 2011.”

’SEEN AS ENEMIES’
In Tunis, the offices of I Watch, an anti-corruption watchdog founded after the 2011 revolution, used to bustle with dozens of employees, volunteers and journalists.
These days, only three employees work on-site. Dozens work remotely, some fearing raids or arrests.
Wajdi Belloumi, I Watch’s president, said its bank transfers have been hindered and official investigations into the group are piling up. Hotels have stopped renting spaces for the group’s events, citing vague instructions from authorities, Belloumi said.
Last year, the electoral commission refused for the first time to allow I Watch to monitor elections due to suspicions of foreign funding.
“We’re seen as enemies now,” Belloumi told Reuters. “Many volunteers are afraid. Whistle-blowers have gone quiet. The pressure is everywhere — legal, financial, even personal.”
Ben Amor said he had received anonymous threats and started looking over his shoulder in public spaces.
“People start saying, ‘This man must be gotten rid of’,” he said, referring to comments sent in private messages, or “’your son studies at that school, your daughter studies at that school ... I saw you on that street’.”
Foreign governments that once championed Tunisia’s democratic transition now prioritize curbing migration and short-term stability, rights groups say.
Ben Amor said he believed he had been targeted particularly after speaking out against Saied’s recent anti-migrant rhetoric.
In 2023, the same year Tunisia signed a pact with the European Union aimed at stemming migration across the Mediterranean, Saied said illegal immigration was part of a “conspiracy” to alter Tunisia’s demographics.
Since then, authorities have dismantled tents and carried out forced deportations — the campaign amid which Riahi was detained.
Though the space for civil society groups is shrinking by the day, Belloumi said he remains committed.
“We chose this path — transparency, justice, accountability,” he said. “And we’re not walking away.” 


Morocco’s central bank explores digital currency cross-border payments

Morocco’s central bank explores digital currency cross-border payments
Updated 22 July 2025

Morocco’s central bank explores digital currency cross-border payments

Morocco’s central bank explores digital currency cross-border payments
  • The bank has been working with the IMF and the World Bank to assess the payment system impacts of its central bank digital currency (CBDC), Jouahri told a conference in Rabat

RABAT: Morocco’s central bank was exploring the use of its own digital currency for peer-to-peer and cross border payments, bank governor Abdellatif Jouahri said on Monday.
A central bank digital currency (CBDC) is controlled by the central bank, in contrast to cryptocurrencies that are usually decentralized.
Cryptocurrencies have been banned in Morocco since 2017, but the public continues to use them underground, circumventing restrictions.
The bank has been working with the IMF and the World Bank to assess the payment system impacts of its central bank digital currency (CBDC), Jouahri told a conference in Rabat.
The Moroccan central bank, together with its Egyptian peer and the World Bank, was also exploring the use of the CBDC for cross-border transfers, he said. A draft law on crypto assets is currently under review by the finance ministry before entering the adoption process, Jouahri said last month.
 

 


Why Lebanon’s fragile state hinges on Hezbollah’s next move

Why Lebanon’s fragile state hinges on Hezbollah’s next move
Updated 21 July 2025

Why Lebanon’s fragile state hinges on Hezbollah’s next move

Why Lebanon’s fragile state hinges on Hezbollah’s next move
  • Iran-backed group under pressure to disarm but its deep roots in armed resistance complicate peace hopes
  • With Israel’s airstrikes and political paralysis, many doubt national unity can be restored without confrontation

BEIRUT: As pressure intensifies on Lebanon’s new government to resolve the question of Hezbollah’s arms, it confronts a fundamental challenge: Can the Iran-backed group relinquish its military wing and become a purely political party? And if it does, will Lebanon’s state institutions and political culture prove capable of supporting such a transition?

Earlier this month, Tom Barrack, the US ambassador to Turkiye and special envoy for Syria, telegraphed Washington’s growing impatience with the status quo in Lebanon in remarks to journalists following his visit to Beirut. He described Hezbollah’s disarmament as an essential condition for the renewal of international financial aid and long-term political stability in Lebanon.

As part of a proposal presented to Lebanese officials, the US offered support for Lebanon’s economic reform efforts in exchange for Hezbollah’s complete disarmament, Israeli withdrawal from Lebanese territory, and the release of Lebanese detainees held by Israel.

“If Lebanon doesn’t hurry up and get in line, everyone around them will,” Barrack said. He acknowledged what he described as a “spectacular” response from Beirut in a short time, but criticized the Lebanese political system’s ingrained culture of “delay, detour, and deflect,” saying time was running out for the country to adapt to a fast-changing regional order.

But disarming Hezbollah is far from straightforward. Despite suffering significant losses last year during its war with Israel, including the death of longtime leader Hassan Nasrallah and the destruction of much of its military infrastructure, Hezbollah has shown no willingness to give up its arms.

The World Bank has estimated the cost of Lebanon’s reconstruction at $11 billion. (AFP)

The group’s new leader, Sheikh Naim Qassem, reiterated that stance in a video address on July 19. “We will not surrender or give up to Israel; Israel will not take our weapons away from us,” he said.

According to him, any disarmament would be discussed only as part of a national defense strategy determined internally by Lebanon, and only after a complete Israeli withdrawal from Lebanese territory.

That position is tied to continued Israeli airstrikes, including recent attacks in the south that killed two individuals on July 20, as per local media reports.

Hezbollah cites these violations, along with Israel’s continued occupation of five positions seized after the November 2024 ceasefire, as justification for retaining its arms.

Although the group claims to have handed over 190 of its 265 southern military positions to the Lebanese army, it continues to maintain a significant arsenal in the region and in other strongholds.

Hezbollah emerged as Lebanon’s most powerful military force and dominant political actor in the post-civil war era, representing a significant portion of the Shiite population alongside the Amal party. Together, the two groups hold all the 27 Shiite seats in the 128-member parliament.

Analysts say that Hezbollah’s ideological foundation has long rested on armed resistance, so shifting toward civilian politics would require not only strategic recalculation but also a new political message capable of sustaining its popular base.

Lebanese army troops patrol the destroyed southern border village of Adaisseh. (AFP)

“For decades, the party has emphasized armed resistance against Israel as central to its appeal,” said David Wood, senior analyst on Lebanon at the International Crisis Group (ICG).

“If Hezbollah wants to transition into a normal political party, it will need to craft another electoral narrative based around how it can improve the socio-economic fortunes of its constituents.”

Such a transformation is not without precedent. Other armed movements in the region, such as the Palestinian Fatah in earlier decades, have evolved into political organizations. However, the Lebanese context is unique in many ways. Years of economic collapse, institutional paralysis and political gridlock have left the state too weak to assert its authority.

The November 2024 ceasefire, brokered by the US and France, was intended to revive the terms of UN Resolution 1701, which calls for Israeli withdrawal from all Lebanese territory, a halt to Hezbollah’s military operations near the southern border, and full control of arms by the Lebanese state. But little progress has been made.

Bilal Saab, associate fellow in the Middle East and North Africa Program at Chatham House, expressed doubt over Hezbollah’s ability to function effectively as a conventional political party. He pointed to signs of waning support in southern Lebanon and other Hezbollah strongholds.

The group’s military losses, the destruction of southern villages, and the economic suffering in Hezbollah-controlled areas are undermining its grassroots support, Saab told Arab News. “It is therefore unclear whether an unarmed Hezbollah could compete effectively in free elections, within Lebanon’s complex political system.”

For Lebanon’s new leadership under President Joseph Aoun, left, and Prime Minister Nawaf Salam, the challenge is to preserve national stability while dealing with an increasingly polarized domestic landscape and pressure from powerful external actors. (AFP)

He said the obstacles ahead of the government are political willingness and “exaggerated” fears of sectarian violence. The new leaders, he said, “must recognize that the chances of sectarian tensions are higher with the status quo unchanged.”

According to Saab, lack of serious action to address the issue of Hezbollah’s arms would prompt Israel to continue its attacks and cause more damage and human casualties. “If that happens, war-weary and economically dispossessed Lebanese could blame Hezbollah for causing even more death and destruction. This would in turn increase the risk of sectarian violence and people taking up arms against Hezbollah and its supporters,” he said.

For Lebanon’s new leadership under President Joseph Aoun and Prime Minister Nawaf Salam, the challenge is to preserve national stability while dealing with an increasingly polarized domestic landscape and pressure from powerful external actors.

Though both leaders have reiterated their commitment to imposing a state monopoly on arms, they have insisted that any progress depends on Israel’s complete withdrawal from Lebanese territory and an end to violations of Lebanese sovereignty.

While Barrack’s proposal received praise for its ambition, its feasibility depends on wider geopolitical considerations. Paul Salem, senior fellow at the Middle East Institute, believes that Iran, Hezbollah’s principal backer, will have the final say.

“The key decision of disarming Hezbollah would have to be made in Iran, the group’s main backer, not in Lebanon,” he told Arab News. “For the time being, it is clear that Tehran is encouraging Hezbollah to drag its feet and not to hand over all its arms and I think that will remain the case.”

Salem emphasized the need for a coordinated domestic and international effort to encourage Hezbollah’s transition into a political entity. This, he said, would require guarantees from the US, a defined role for the LAF, and political assurances from the Arab Gulf states.

“Hezbollah, at a minimum, would need assurances about Israel’s withdrawal and protection of its operatives in Lebanon, which would have to come from the US, as well reassurances from Gulf countries of aid for reconstruction of the war-ravaged areas,” Salem said.

“They would want some of that money to come through their auspices so they could benefit politically.”

The World Bank has estimated the cost of Lebanon’s reconstruction at $11 billion. US and Gulf officials have indicated that significant portions of that aid will only be unlocked if Hezbollah agrees to disarm.

Lebanese emergency responders inspect the debris at the site of a reported Israeli strike on a vehicle in Khaldeh, south of the capital Beirut. (AFP)

The issue of integrating Hezbollah supporters into Lebanon’s broader political and economic fabric is also paramount. Wood emphasized that the process of disarming Hezbollah should come with assurances that the Shiite community would remain part of the nation-building process in a country long paralyzed by factional politics.

“Lebanon’s leaders must think very carefully about how to fully integrate Hezbollah’s supporters into the country’s future, or else they risk creating dangerous fissures in Lebanese society,” the ICG’s Wood said.

Despite mounting pressure, few expect a quick resolution. Reports suggest Hezbollah is conducting a strategic review of its military posture, exploring possible scenarios but delaying concrete action. “Hezbollah is taking a ‘wait and see’ approach for now,” Wood said. “Perhaps it wants to know if regional circumstances might improve for it before seriously entertaining the idea of surrendering its military wing.”

Meanwhile, the Lebanese army has consolidated control over Rafik Hariri International Airport and large parts of the south, improving state authority and border security. A successful disarmament, officials argue, would boost the credibility of Lebanon’s institutions and the case for the state’s monopoly on force.

The Middle East Institute’s Salem cautioned that Hezbollah is unlikely to fully relinquish its arms without assurances that go beyond Lebanese borders. If anything, he said, the disarmament would reduce sectarian tensions “with the Sunnis, Christians, Druze and other communities that have been afraid of Hezbollah’s arms.”

Firefighters  work at the site of an Israeli drone attack in the southern Lebanese village of Kfar Roumman. (AFP)

The potential rewards for Lebanon are clearly substantial. Hezbollah’s disarmament would enable Lebanon to form new alliances with regional and global partners. The disarmament process could also unlock vital economic assistance, helping the country recover from years of political paralysis, financial crisis and social unrest.

However, Lebanon’s leadership remains caught between the demands of the international community and the compulsions of domestic sectarian politics. For now, a delicate balance holds. But as pressure builds, time may be running out for Lebanon’s politicians to chart the country’s future — before others do it for them.