Will Gulf sanctions impact Lebanon’s banking sector?
Although the recent decisions by Gulf states to impose political and economic measures on Lebanon’s Hezbollah sparked concerns about the impact on the country’s economy, experts in the field say Lebanese banks will be able to overcome this phase.
Gulf countries led by Saudi Arabia are upping the ante against Lebanese Hezbollah as well as companies and individuals affiliated with it. Political and economic measures taken by Arab countries, which come in the backdrop of increased tensions with Lebanon, could further damage the country’s already fragile economy.
On March 9, the Gulf Cooperation Council (GCC) discussed measures aimed at “confronting Hezbollah,” according to Saudi Foreign Minister Adel al-Jubeir. Gulf ministers had also decided on March 8 to take legal measures against TV channels affiliated with Hezbollah or its leaders. Lebanese newswire Naharnet reported that legal measures were applied to production companies, producers and all that falls under the umbrella of the media.
These decisions come in the wake of a move by Gulf countries to declare Hezbollah as a terrorist organization and cut $4 billion in aid to the Lebanese army and security forces.
Lebanon has long been caught in the midst of a rivalry between Shiite Iran and Sunni Saudi Arabia, exacerbated by the Yemen and Syria wars, where the two countries have picked opposing sides. Iran’s regional proxy Hezbollah, which is fighting in Syria alongside forces loyal to Syrian President Bashar al-Assad, is part of the Lebanese government with two ministers.
