Last month, Lebanon’s prime minister, Saad Hariri, resigned in Saudi Arabia — only to later rescind his resignation. This sparked fear of a Saudi-backed war against Hezbollah, Iran’s Lebanese ally. Riyadh has few local military assets to confront the Shiite movement but could strangle Lebanon’s small open economy. Lebanon is deeply reliant on capital inflows from the Gulf. The immediate crisis of Hariri’s premiership is over, but Lebanese economic dependency persists. It is dangerous if the country must stay in Riyadh’s political good grace to avoid economic crisis.
Three Gulf countries accounted for 76 percent of new foreign direct investment projects in Lebanon from 2003 to 2015.… Seguir leyendo »