Lebanon and Saudi Arabia: A Renewed ‘Economic Lifeline’!

The steps that were taken by Lebanese authorities, following the election of new president and the formation of a reform government, to combat money laundering and smuggling, such as the upgrading of the monitoring and scanning infrastructure in the airport and the port and on borders, and implementation of stricter security and anti-smuggling measures, have finally started to pay off internationally. Crown Prince Mohammed Bin Salman of Kingdom of Saudi Arabia (KSA) ended on 10 June 2026 the trade ban against Lebanon, following requests from President Joseph Aoun and Prime Minister Nawaf Salam. This means KSA will resume importing goods from Lebanon, following a 5-year embargo that started in April 2021. The first ship loaded with Lebanese goods sailed from the port of Beirut to the port of Jeddah on 20 June 2026. The Saudi decision was followed by a decision from The United Arab Emirates on 29 June to allow again its citizens to travel to Lebanon. All of this means Lebanon had started to return to the Arab economic fold, and a vital economic artery for Lebanon was reconnected. However, Saudi Arabia’s economic role in Lebanon is not limited to trade or to importation of Lebanese goods, it goes beyond that to include all aspects of economic activity in Lebanon. KSA has a strong impact on Lebanon’s external revenue and cash inflows; and its role is vital for monetary and fiscal stability, besides its participation across many channels and key sectors, making it a critical and strategic economic partner. We will analyze in this brief note the most important of these crucial channels.

For the full article click HERE.