A billboard in Beirut that reads, in Arabic, 'A new era for Lebanon'. AP
A billboard in Beirut that reads, in Arabic, 'A new era for Lebanon'. AP
A billboard in Beirut that reads, in Arabic, 'A new era for Lebanon'. AP
A billboard in Beirut that reads, in Arabic, 'A new era for Lebanon'. AP

Lebanon aims to win back Gulf tourists and investors, but is it enough to save the economy?


Vanessa Ghanem
  • English
  • Arabic

With its sun-soaked beaches, pine-covered mountains and buzzing summer nightlife, Lebanon is hoping to once again become the playground of wealthy Gulf tourists. After years of strained relations, Beirut is making concerted efforts to reset its ties with the Gulf – a region long seen as both a political ally and economic lifeline.

Since taking office in January, President Joseph Aoun has placed rebuilding Lebanon’s relationship with the Gulf countries at the centre of his foreign policy agenda. The former army chief, elected after more than two years of presidential vacuum, wasted no time in launching a diplomatic charm offensive. Mr Aoun has so far visited the UAE, Saudi Arabia, Qatar and Kuwait, in an effort to re-establish Lebanon as an open destination for tourists and investors.

Gulf states have historically played a major role in rebuilding Lebanon, including after the 1975–1990 civil war and the 2006 Israel-Hezbollah conflict. Gulf tourists and investors − particularly from Saudi Arabia, Kuwait and the UAE − significantly boosted Lebanon’s economy for decades by driving its tourism, real estate and hospitality sectors, especially in Beirut and mountain resort areas.

However, in recent years, Lebanon’s relations with its Gulf neighbours began to sour due to Iran’s growing influence over Lebanese affairs. This was primarily through its backing of the Lebanese armed group Hezbollah, which held significant sway over the country’s political and military landscape.

This dynamic has shifted following a year-long war between Hezbollah and Israel that ended last November. Israel’s military campaign destroyed much of Hezbollah’s infrastructure, eliminated the group’s leader and top commanders and infiltrated its security network.

Now, Lebanon seeks to revive its economy, which has been mired in crisis since 2019. The national currency has collapsed, the banking sector is in disarray and basic public services have all but crumbled. The war between Israel and Hezbollah only worsened conditions, leaving much of southern Lebanon and Beirut’s southern suburbs in ruins. The World Bank estimated recovery and reconstruction needs at $11 billion.

Lifting travel bans

The UAE and Kuwait have lifted years-long travel bans on Lebanon after President Aoun’s recent visits, opening the door for their citizens to return to the country.

“Lebanon is moving in the right direction, getting back to the Arab fold – and that’s a Lebanese demand before anything else,” Fouad Dandan, Lebanon’s ambassador to the UAE, told The National.

Emiratis love Lebanon. They don’t go there just for tourism. Many have properties in the country, and some may even invest in it – which would create a boost that is not only seasonal and would help the economy,” he said.

Lebanon is also seeking to benefit from the UAE’s expertise in key sectors, including security and renewable energy, added Mr Dandan. Emirati technical teams have already visited Beirut to explore co-operation and knowledge transfer. “We have a golden opportunity,” he said.

President Sheikh Mohamed receives Lebanese President Joseph Aoun, before a meeting at Al Shati Palace on Wednesday. UAE Presidential Court
President Sheikh Mohamed receives Lebanese President Joseph Aoun, before a meeting at Al Shati Palace on Wednesday. UAE Presidential Court

All eyes are now on Saudi Arabia to see whether it will follow suit. But Riyadh remains cautious, and a key sticking point is security, according to sources.

Saudi Arabia has banned its citizens from travelling to Lebanon since 2021 because of security concerns. The kingdom was Lebanon’s top destination for agricultural exports in 2019, accounting for 22.1 per cent of total shipments, according to a Lebanese government report published in 2020. However, Riyadh suspended imports of Lebanese fruits and vegetables in April 2021, citing drug-smuggling concerns and accusing Beirut of failing to take action.

Lebanon’s security forces say they are stepping up efforts to protect key sites, especially Beirut’s international airport and tourist hotspots.

“Preparations are under way to welcome tourists, though the state is working with a limited budget. Efforts have been made to improve visitors' experience: the road from the airport to Beirut has been repaired, and political banners and posters were removed months ago,” a senior security official involved in the operations told The National.

“What’s new is the increased police presence near airport routes, especially at night. Police staffing has recently expanded to accommodate these new duties, and additional checkpoints are now active, with clear instructions to search suspicious vehicles and fine violators,” the source added.

“Overall, the security situation is stable. The main concern remains the potential for Israel to disrupt the atmosphere, but internally, the focus is firmly on ensuring safety for both residents and visitors.”

Despite a ceasefire agreed in November between Israel and Hezbollah, the Israeli military continues to carry out strikes in Lebanon. Last week, just before Eid Al Adha, at least 10 strikes hit Beirut's southern suburbs – a sprawling area known as Dahiyeh. It was the fourth time that Dahiyeh has been bombed since the November truce.

The rubble of a collapsed building is pictured at the site of an Israeli air strike in the Kafaat neighbourhood of Beirut’s southern suburbs on June 6, 2025. AFP
The rubble of a collapsed building is pictured at the site of an Israeli air strike in the Kafaat neighbourhood of Beirut’s southern suburbs on June 6, 2025. AFP

Israel also continues to bomb southern Lebanon almost daily and maintains control over five military posts along the southern border.

The ceasefire says Hezbollah must pull all military equipment and fighters out of southern Lebanon and says all non-state militant groups must be disarmed across the country. Lebanon remains under international pressure to reassert full state sovereignty. President Aoun has repeatedly said the decision to centralise arms under state authority has been taken, but says this can only be achieved through dialogue rather than force.

Promising summer amid challenges

Many in Lebanon are hopeful for a booming summer season.

“Eid Al Adha holiday gives a glimpse of how this summer will look,” Jean Abboud, president of the Association of Travel and Tourist Agents in Lebanon, told The National. “We’re seeing new nationalities this year: Emiratis, Kuwaitis and Qataris. Gulf tourists tend to spend more time and money in the country.”

“In May, airport traffic rose 11 per cent compared to the same period last year. The momentum is encouraging,” said Mr Abboud.

But analysts caution that this is not enough to lift the country out of its deep economic crisis.

“Tourism accounts for 20 per cent of GDP, and Gulf tourists generate 50 per cent of tourism revenue. While the rebound in Gulf tourism and renewed investment are essential catalysts, they alone cannot secure Lebanon’s full recovery,” said Lebanese economist Walid Abousleiman.

“The scale of Lebanon’s financial crisis and the depth of required reforms mean that international assistance potentially including an IMF programme remains necessary to restore fiscal and monetary stability, restructure debt and rebuild confidence in the banking sector.”

Since the 2019 crisis, which saw the Lebanese currency lose over 90 per cent of its value and bank deposits decimated, with losses estimated at more than $70 billion, Lebanon has failed to implement most of the IMF’s demanded reforms.

Economy Minister Amer Bisat told The National last month that the country faces deep-rooted challenges across multiple sectors − including banking, electricity, production costs, infrastructure and governance. “I don’t think that small and quick steps will bring back the confidence of investors. What will bring it back is when investors see we are addressing these core issues,” said the minister.

Mr Abousleiman noted that "Gulf tourists bring vital foreign currency and support key sectors but cannot alone restore Lebanon’s economy to pre-crisis levels".

“Lebanon’s path to recovery is a marathon, not a sprint. Gulf tourism and investment are promising first steps, but real, lasting change requires comprehensive reforms and international support,” he added.

Mohamad Ali Harisi and Jamie Prentis contributed to this report from Abu Dhabi and Beirut, respectively

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RESULT

Arsenal 0 Chelsea 3
Chelsea: Willian (40'), Batshuayi (42', 49')

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
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MOUNTAINHEAD REVIEW

Starring: Ramy Youssef, Steve Carell, Jason Schwartzman

Director: Jesse Armstrong

Rating: 3.5/5

COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
Six large-scale objects on show
  • Concrete wall and windows from the now demolished Robin Hood Gardens housing estate in Poplar
  • The 17th Century Agra Colonnade, from the bathhouse of the fort of Agra in India
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ONCE UPON A TIME IN GAZA

Starring: Nader Abd Alhay, Majd Eid, Ramzi Maqdisi

Directors: Tarzan and Arab Nasser

Rating: 4.5/5

UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
The specs

Engine: 1.5-litre turbo

Power: 181hp

Torque: 230Nm

Transmission: 6-speed automatic

Starting price: Dh79,000

On sale: Now

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if you go

The flights

Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.

The hotel

Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.

The tour

Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg

How to help

Call the hotline on 0502955999 or send "thenational" to the following numbers:

2289 - Dh10

2252 - Dh50

6025 - Dh20

6027 - Dh100

6026 - Dh200

RESULT

Uruguay 3 Russia 0
Uruguay:
 Suárez (10'), Cheryshev (23' og), Cavani (90')
Russia: Smolnikov (Red card: 36')

Man of the match: Diego Godin (Uruguay)

RESULT

Kolkata Knight Riders 169-7 (20 ovs)
Rajasthan Royals 144-4 (20 ovs)

Kolkata win by 25 runs

Next match

Sunrisers Hyderabad v Kolkata Knight Riders, Friday, 5.30pm

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Torque: 390Nm

Price: From Dh126,000

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Updated: June 12, 2025, 8:52 AM`