BEIRUT: The Lebanese central bank has the foreign-currency reserves it needs to keep the pound stable against the US dollar at its pegged rate for the foreseeable future, the central bank governor said on Tuesday.
Riad Salameh said in an interview that since June the central bank has been engaged in three financial operations intended to maintain high levels of dollar assets and to help banks to run their credit portfolios in a less risky way.
“The reserves of the central bank are now at $44.3 billion, so it is a record high,” Salameh said at the headquarters of the central bank in Beirut. “These operations have contributed in increasing the dollar assets of the central bank.”
Salameh declined to say by how much dollar assets had increased as a result of the three operations, but he said Lebanon’s foreign currency reserves stood at $40 billion at the start of the year.
“I can affirm that the Lebanese pound is stable — the policy to keep it stable is not about to change — and that we have the means to keep this currency stable against the value of the US dollar for the foreseeable future,” Salameh said.
Lebanese government officials had recently suggested the pound, which has been pegged at around 1,500 to the dollar for 20 years, could come under pressure unless the state levied new taxes to pay for a public-sector pay rise. The controversial taxes were approved by Parliament this month.
Lebanon’s foreign currency reserves fell last year to around $35 billion, strained by a slowdown in deposits, a negative balance of payments and political paralysis, which weighed on investor confidence.
To increase reserves, maintain the US dollar peg and raise banks’ capital reserves, the central bank last year undertook what the International Monetary Fund termed “unconventional” financial engineering, raising dollar reserves to a then-record high of $41
billion.
The problems that prompted last year’s engineering have eased, Salameh said. Deposits are growing 6 to 7 percent and Lebanon’s balance of payments is now in equilibrium.
Salameh said the three financial operations currently underway to maintain dollar levels were “completely different” from last year’s financial engineering.
First, he said, Lebanese pounds are being swapped from short- to medium-term tenure, “enhanced by a differential of 1 percent over the yield curve on the Lebanese pound.”
Second, he said, there are “medium- to long-term dollar deposit opportunities for the banks, with a half percent over the yield curve.”
The third operation is against long-term US dollar deposits, where a bank “can obtain a credit line in Lebanese pounds at 2
percent to be invested in Lebanese
instruments.”
Lebanon’s economy has been battered by six years of war in neighboring Syria and by political divisions, which have slowed growth to just over 1 percent a year from an average of 8 percent before the conflict. Lebanon has one of the world’s highest ratios of debt to gross domestic product, around 140 percent.
Salameh said the central bank estimates a “modest” growth rate of 2.5 percent for 2017.
He said real estate prices had dropped “by maybe 10 percent” compared with last year, according to central bank statistics. “I don’t think prices can go up for the time being in the real estate market,” he said.
However, a good tourism season had led to increased consumption, and imports had increased, he said.
Some of Lebanon’s political problems have abated since last year: A political deal ended a two-and-a-half-year presidential vacuum and installed a new government under Prime Minister Saad Al-Hariri. The government recently approved its first budget in 12 years. Salameh said the approval of the 2017 budget this month was a good start, indicating that “a new discipline is in place.”
He said markets were now waiting to see if the 2018 budget contained measures to bring the deficit down.
Directed by Salameh since 1993, the central bank has often been described as one of the few pillars of stability in Lebanon. But it has recently faced unusually fierce
criticism.
Last month, the central bank published a detailed, five-page rebuttal of criticism levelled against it by a research paper that warned Lebanon faced “financial crisis conditions that may turn into full-fledged crisis” affecting the exchange rate.
Last week, a Lebanese MP called in parliament for publication of detailed central bank accounts. The finance minister responded that these were sent annually to his ministry.
“We have seen a build-up in campaigns against the monetary stability that started more than a year ago,” Salameh said.
“We don’t know the objectives of these campaigns, but if we look at the figures we can see that the confidence was not affected: Deposits are growing, the balance of payments is improving compared with where we were in 2015. Interest rates did not go up.”
In the absence of effective government decision-making, the central bank has for many years quietly steered policy in Lebanon, using stimulus packages and financial engineering to maintain monetary stability and keep growth ticking over.
The central bank would continue to play that role, he said.
If Lebanon manages to start bringing its deficit down, the central bank would not have to carry out its “unconventional operations,” Salameh said.
Salameh said oversubscribed Lebanese treasury bill auctions and higher interest from international investors in Lebanon’s Euro-bonds showed markets were “positive on the
future” of Lebanon.
— REUTERS
Lebanese central bank says pound stable, adds to forex reserves
Lebanese central bank says pound stable, adds to forex reserves
Vision 2030 propelling Saudi Arabia’s global reputation
- Bold initiatives are positioning the Kingdom as a regional trailblazer in sustainability
RIYADH: Saudi Arabia’s Vision 2030 program, aimed at revolutionizing the Kingdom’s economic and social landscape, has propelled the nation’s global reputation on a large scale, experts told Arab News.
Launched in 2016, the program is a comprehensive guide to position Saudi Arabia as a powerhouse of business, tourism and non-oil activities, both regionally and globally.
Speaking to Arab News, Thomas Kuruvilla, managing partner of Arthur D. Little Middle East & India, said that Saudi Arabia’s Vision 2030 is the cornerstone of the Kingdom’s transformation driving diversification, investment in non-oil sectors, and reshaping its global reputation.
“Vision 2030 is not an end point but a launchpad. The foundations being laid today from renewable energy, automotive, and tourism to digital infrastructure and advanced industries are designed to endure and evolve well beyond 2030. The Kingdom’s leadership has already signaled that future frameworks will build on this momentum, ensuring that transformation continues into the decades ahead,” said Kuruvilla.
He added: “Vision 2030 has firmly established Saudi Arabia as a reforming nation on the world stage. Saudi Arabia is creating an economic and social model that looks past 2030, one that aims to deliver sustainable growth, global competitiveness, and opportunity for generations to come.”
Elie Farhat, chief of external affairs for Georgetown University’s McDonough School of Business espoused similar views and said Saudi Arabia has actively courted foreign investment, tourism, and partnerships with global universities and businesses.
“Saudi Arabia has become a market and society that is perceived as both investable and engaging. International organizations are setting up regional headquarters in Riyadh, universities are establishing partnerships, and businesses now openly discuss Saudi Arabia as a gateway to the future of the Middle East,” said Farhat.
In October, Saudi Arabia’s Investment Minister Khalid Al-Falih, while speaking at the Fortune Global Forum Conference in Riyadh, said the Vision 2030 program is progressing steadily, with 85 percent of the targets outlined in the initiative completed or on track by the end of 2024.
Al-Falih also added that the number of international firms licensed to establish their regional headquarters in Riyadh has reached 675.
The regional HQ program offers a 30-year corporate tax exemption, withholding tax relief, and regulatory support, reflecting efforts to position the Kingdom as a regional business hub and attract multinational corporations to the capital.
Some of the noted firms that have established regional bases in Riyadh include Northern Trust, IHG Hotels & Resorts, PwC, and Deloitte. Laura Hernandez Gonzalez, managing director of Globant for the Middle East and North Africa, said Vision 2030 has turned diversification from an aspiration into a reality, adding that programs like the regional HQ initiative and the transformation of Riyadh into a true financial hub are convincing multinationals to set up real operations, not just representative offices.
“From the technology side, the Kingdom’s commitment to AI, cloud, and sovereign digital infrastructure is equally important. It signals not only ambition, but the capacity to build future-ready capabilities at scale,” said Gonzalez.
She added: “This is how the Kingdom is changing global perceptions: from an energy powerhouse to a hub of innovation, capital and talent.”
Earlier in December, Rachid Boulaouine, Middle East and Saudi Arabia director at Business France, told Al-Eqtisadiah that French companies operating in Saudi Arabia are expected to increase by 30 percent to 40 percent as more small and medium-sized enterprises move to establish a presence in the Kingdom.
The changing global image
Kuruvilla said that Saudi Arabia’s pivot toward renewable energy and sustainability is not just symbolic, but it represents a decisive strategic shift in the Kingdom’s development model.
Bolstering renewable energy capacity is critical for Saudi Arabia as it aims to generate 130 gigawatts of clean energy by 2030 and achieve net-zero emissions by 2060.
Kuruvilla said that flagship projects such as Neom — a futuristic city designed to run entirely on renewable energy — and the world’s largest green hydrogen plant highlight Saudi Arabia’s determination to lead in climate innovation.
This is how the Kingdom is changing global perceptions: from an energy powerhouse to a hub of innovation, capital and talent.
Laura Hernandez Gonzalez, managing director of Globant for the Middle East and North Africa
“These initiatives are positioning the Kingdom as a regional trailblazer in sustainability and earning recognition as a nation “at the forefront of the clean-energy revolution,” with few global peers matching its scale and ambition,” said the Arthur D. Little official.
He added: “Such bold moves are strengthening Saudi Arabia’s standing among international partners that prioritize climate action, demonstrating alignment with global sustainability imperatives rather than resistance.”
According to Farhat, it is the young generation in Saudi Arabia guided by Vision who are playing a crucial role in elevating the Kingdom’s global reputation.
“Saudis — particularly younger generations — have opened up to the world with a readiness to learn, build, and lead for 2030. The world, in turn, has opened up to Saudi Arabia, seeing it as a dynamic partner to invest in,” said Farhat.
Saudi Arabia’s tourism growth
Gonzalez said that the global narrative about Saudi Arabia has shifted decisively, with international travelers increasingly considering the Kingdom as a favorite destination.
She added that the growth in tourism numbers is one of the clearest proof points that Vision 2030 is delivering, also indicating the Kingdom’s growing appeal among the international public.
“Ranking among the top three globally for growth in international tourist arrivals, surpassing 100 million visits in 2023, and contributing over 10 percent of the gross domestic product in 2025 are extraordinary achievements in such a short period,” said Gonzalez.
She added: “Today, when I speak with investors, partners, or peers, Saudi Arabia is framed around opportunity, innovation, and delivery.”
Kuruvilla said that the growth in tourism has signaled to the world that Saudi Arabia is no longer just an oil-rich nation, but a fast-emerging must-visit destination.
HIGHLIGHT
The regional HQ program offers a 30-year corporate tax exemption, withholding tax relief, and regulatory support, reflecting efforts to position the Kingdom as a regional business hub and attract multinational corporations to the capital.
The Arthur D. Little official added that media coverage has reinforced this narrative, with tourism and entertainment mentions up 60 percent in 2024, underscoring the Kingdom’s growing appeal to global travelers.
“International surveys echo this sentiment: a recent multi-country poll found 59 percent of respondents were interested in visiting Saudi Arabia — a figure unimaginable only a decade ago,” said Kuruvilla.
Saudi Arabia passed its 2030 target of 100 million visitors in 2023, and the following year it welcomed 115.9 million tourists.
Having already reached its goal, the Kingdom raised its target to 150 million annual visitors by 2030.
In November, the Saudi Conventions and Exhibitions General Authority announced record growth in the Kingdom’s business events infrastructure, reporting a 32 percent year-on-year increase in capacity across 923 accredited venues.
The authority added that this expansion reflects significant investment aligned with Vision 2030’s tourism and event sector priorities, driving a 320 percent increase in exhibition space since 2018 to a total of 300,520 sq. meters.
Sports and technology
According to Kuruvilla, Saudi Arabia is cultivating an image as a global hub for business, technology, and innovation by hosting high-profile international events like the Future Investment Initiative, the LEAP tech conference, and the World Defense Show.
He said that these events draw thousands of investors, entrepreneurs, and industry leaders to the Kingdom, showcasing opportunities beyond oil.
“The cumulative effect of these marquee gatherings and the establishment of such innovation-driving entities is a narrative that Saudi Arabia is open for business and eager to lead in future industries – a notable departure from its old image of insularity,” said Kuruvilla.
He added: “These gatherings are translating into tangible partnerships and long-term investment opportunities, solidifying Saudi Arabia’s reputation as a hub for innovation and global business exchange.”
According to Gonzalez, events like FII and LEAP in Saudi Arabia prove the Kingdom’s execution capacity, as well as showing the nation’s capability to “convene the world, compress partnership cycles, and set the agenda on innovation, defense, and finance.”
Highlighting the importance of sporting events, Kuruvilla told Arab News that sports have become a cornerstone of Saudi Arabia’s effort to bolster its global reputation.
“From hosting Formula 1 races and high-profile boxing matches to purchasing stakes in English Premier League football clubs, the Kingdom has invested heavily in sports as an avenue for soft power. The pinnacle of this strategy is Saudi Arabia securing the rights to host the 2034 FIFA World Cup — a coup that instantly thrusts the country into the international spotlight,” said Kuruvilla.
Adding to this momentum, Saudi Arabia has also positioned itself at the forefront of digital sports by hosting the Esports World Cup in Riyadh in 2024 and 2025, with record-breaking prize pools and participation from the world’s top gaming titles.
“By associating with beloved sports and athletes, Saudi Arabia is effectively rebranding itself, especially to younger global audiences, as a vibrant and welcoming destination. Superstars like Cristiano Ronaldo playing for Saudi clubs – and posting about life in the Kingdom – further humanize Saudi Arabia’s image abroad,” added the Arthur D. Little official.
