Lebanon economic deterioration accelerates as fuel subsidy ends

Prime Minister Hassan Diab quit last August after a catastrophic blast that destroyed much of the Port of Beirut, killing 218, injuring 7,500 and leaving 300,000 people homeless. (Reuters)
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Updated 14 August 2021
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Lebanon economic deterioration accelerates as fuel subsidy ends

  • End of fuel subsidies seen raising cost of other goods
  • Central bank governor says no one is running the country

RIYADH: Lebanon’s economic decline is set to gather pace after the central bank said this week it will end a fuel subsidy that has drained its reserves, a move that is likely to affect everything from food to clothes and basic goods.

“The price of fuel affects the price of all commodities in Lebanon,” Lebanese economic analyst Bassel Al-Khatib told Arab News. “Transportation and food will become significantly more expensive, and gasoline, diesel and cooking gas prices will at least triple if not more, paralyzing the country as all sectors will be affected.”

Lebanese economic crisis will rank as among the top three in the world in the past 150 years, according to the latest World Bank Lebanon Economic Monitor (LEM).

The country is already suffering from shortages of food, medicines, and other basic items, as well as power supply shortage due to lack in diesel supply. Stocks of liquefied petroleum gas, usually sold in canisters and used widely in homes and businesses, are also running out.

Lebanese lined up in long queues on Tuesday to stock up on cooking gas following warnings of imminent shortages, as the economic crisis eats away at supplies of basic imports.

“Our current stock will last one week, after which, if no solution is found, gas used in homes will be sold on the black market, ” Farid Zeynoun, the head of a syndicate of petroleum gas distributors, told France 24.

Zeynoun blamed the crisis on a delay by Banque Du Liban, Lebanon’s central bank, in opening credit lines to fund imports.

Central bank Governor Riad Salameh defended his actions in an interview broadcast on Radio Free Lebanon on Saturday, saying the government could resolve the problem by passing necessary legislation.

“So far you have nobody running the country,” he said. The Lebanese pound is “hostage to the formation of a new government and reforms,” he said.

Lebanon’s politicians have failed to agree on a new government since Prime Minister Hassan Diab quit last August after a catastrophic blast that destroyed much of the Port of Beirut, killing 218, injuring 7,500 and leaving 300,000 people homeless. He has continued in a caretaker capacity since then.

The central bank has said it cannot use mandatory foreign currency reserves, currently $14 billion, without legislation.

Salameh said that more than $800 million spent on fuel imports in the last month should have lasted three months, blaming traders and saying it was “unreasonable” that so much had been spent with no product available in the market.

With the Lebanese pound having lost 90 percent of its value in less than two years, the central bank is in a bind. Spend its reserves and the currency will likely depreciate further, spurring more inflation for the long-suffering Lebanese population; hold onto them and inflict prices rises through higher fuel prices.

Critics of the fuel subsidy scheme also say it has created huge incentives for smuggling and hoarding by selling petroleum products at a fraction of their real price.

The decline in the pound has already eroded Lebanese purchasing power. The minimum wage was equal to about $450 before October 2019, and is now worth $30, equal to about two tanks of gasoline.

In June, the Lebanese parliament approved a distribution of $556 million through ration cards that will support 500,000 of the country’s poorest families with an average of $93 per month for one year. Some are calling for an increase in those payments to counter increased fuel costs.

“It would have been better to approve citizen’s support through the cash card, adding to it two gasoline tanks for example, to enable them to move around, instead of subsidizing,” said Al-Khatib.

Such moves constitute a band aid for the Lebanese economy that can only begin to recover if a government can be formed and help can be obtained from the International Monetary Fund.

Over half of Lebanese people now live in poverty, one in three Lebanese suffer from food insecurity and nearly 4 million people are at risk of not accessing safe water, according to the UN.

“We only have one of two solutions, approving the financing card or accelerating the government formation which will limit the collapse through a rescue plan, and by reviving negotiations with the (IMF),” said Al-Khatib.


Saudi Arabia’s AI imperative: seizing the agentic enterprise to fulfill Vision 2030 goals

Updated 11 January 2026
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Saudi Arabia’s AI imperative: seizing the agentic enterprise to fulfill Vision 2030 goals

  • Workers who use AI daily are 64% more productive and 81% more satisfied with their jobs

RIYADH: As Saudi Arabia advances its ambitious Vision 2030, a transformative shift in the global workplace underscores a critical opportunity for the Kingdom’s organizations.

Slack’s latest Workforce Index survey revealed an unprecedented surge in the adoption and impact of artificial intelligence, presenting a clear pathway for Saudi businesses to lead in the era of digital labor, drive economic diversification, and create high-value roles for the future workforce.
“Saudi Arabia has all the ingredients to lead this shift: a young population, a government willing to modernize at extraordinary speed and industries preparing for global competition,” Mohammad Al-Khotani, the senior vice president and general manager of Salesforce Middle East told Arab News.

From adoption to advantage
The evidence that AI is a decisive competitive advantage is now overwhelming. Slack’s research, which surveyed 5,000 global desk workers, found that daily AI usage has soared by 233 percent in just six months.
Workers who use AI daily are 64 percent more productive and 81 percent more satisfied with their jobs than their non-AI-using colleagues. This trend is even more pronounced in specific markets; in the UK, daily AI users report an 82 percent increase in productivity and a 106 percent boost in job satisfaction.
According to the report, this surge is fundamentally reshaping work. The data confirms that trust grows with use: workers who use AI agents daily are twice as likely to trust them in areas like data protection and accuracy. 
Furthermore, AI is enabling workers to expand their capabilities strategically. Some 96 percent of AI users have leveraged the technology to perform tasks they previously lacked the skills to do.
Workers are now 154 percent more likely to use AI agents to perform tasks better and more creatively, not merely to automate them. The top productivity boosts come from eliminating extensive research, assisting with communication, and overcoming creative blocks.
Given this, Al-Khotani emphasized the macroeconomic imperative for Saudi organizations to lead, not follow. 
“Saudi Arabia is one of the few countries where the public sector has already set a global benchmark for digital service delivery. This creates a macroeconomic condition in which private-sector organizations must now match the pace set by the state,” he said. 
He further noted that “the scale of Saudi Arabia’s transformation, megaprojects, tourism growth, manufacturing build-out and new digital sectors, requires the productivity lift that only digital labor and AI agents can provide. Organizations that adopt early will move faster, earn citizen trust and gain market share.”
This perspective is echoed by Mohamad El-Charif, founder of the Middle East’s first sovereign regulatory compliance platform, Qadi.
“When we talk about digital labor in Saudi Arabia, we have to acknowledge that legal and regulatory AI is not optional. If we wait and come in as fast followers, we’ll end up running our core legal and regulatory workloads elsewhere, governed, and updated elsewhere,” he explained to Arab News. 
He argued that early adoption creates a lasting advantage: “Moving early with governed, sovereign agents, lets Saudi organizations encode their own local laws, internal policies, escalation paths and audit trails into the infrastructure.”
He added: “Under Vision 2030, leading Saudi banks, insurers, telcos, and energy companies are not just serving the domestic market; they’re becoming global players. If they build their regulatory backbone early and on their own terms, they don’t just stay in bounds at home, but they also carry that infrastructure with them as they expand.”

From automation to the agentic enterprise
This ground-level adoption aligns with a strategic corporate pivot identified in the 2025 MuleSoft Connectivity Benchmark Report, produced in collaboration with Deloitte.
The report highlighted that generative AI has reshaped human-AI interaction, and the next frontier is the rise of the “agentic enterprise.” This model involves autonomous AI agents that can operate with unprecedented independence, responding to queries, managing sophisticated tasks, and optimizing workflows without continuous human intervention.
The report found that 93 percent of IT leaders intend to introduce such autonomous agents within two years, with 40 percent having already done so and another 41 percent planning deployment within the next year.
This shift is accelerating rapidly; the average number of AI models in use has already doubled from 2024 projections, and IT leaders predict a further 78 percent increase over the next three years.
Salesforce Middle East’s Al-Khotani elaborated on this strategic potential, stating: “AI agents offer a multiplier effect across sectors that Vision 2030 prioritizes. This same efficiency can shift the economics of different industries.”
He added: “Legacy sectors can automate routine compliance, scheduling, documentation, onboarding and case resolution. Public services can move from reactive to proactive, anticipating citizen needs and completing tasks autonomously.”
Qadi’s El-Charif described this as turning “compliance from a blockage into an API,” accelerating Vision 2030’s ambitions. 
“For a thriving economy, the biggest gift you can give businesses is predictable, low-friction compliance,” he said, adding: “When you encode local laws, regulations and internal policies into agents, those checks move inside the workflow. Approvals can happen in days, not months, without lowering standards.”
However, this potential is gated by integration. Some 95 percent of IT leaders cite integration challenges as the primary hurdle to effective AI implementation. 
Organizations use an average of 897 applications, with 46 percent using over 1,000, yet integration levels have stagnated.

Opportunity for the Kingdom
For Saudi organizations, moving early to adopt and integrate AI is no longer optional, but a strategic necessity to lead in digital labor and deliver on Vision 2030’s goals of a vibrant society, a thriving economy, and an ambitious nation.
First, deploying AI in ways that deliver positive outcomes for both business and employees is key. The Slack Index showed that AI enhances human connection, not replaces it.
Daily AI users are 246 percent more likely to feel more connected to colleagues and report a 62 percent higher sense of belonging. This counters fears of displacement, showing AI can augment teamwork and culture.
Al-Khotani stressed the principles for positive deployment, noting: “AI must be introduced as augmentation, not substitution. When people understand that agents are handling low-value tasks, while humans focus on creativity, judgment and customer relationships, acceptance is extremely high.” 
He added that Salesforce data shows 84 percent of AI users say the technology makes them enjoy their job more, largely because it reduces repetitive work.
El-Charif advocated for a practical Outcome-Workflow-Governance framework to achieve this symbiosis, saying: “We design agents to take over that ‘read, retrieve, reconcile’ loop. 
“This doesn’t replace humans, but it elevates them out of the infrastructural gridlock.” 
He added: “That, for me, brings a real opportunity of using agentic AI to remove the glue work that exhausts people, and free up talent to focus on strategy, relationships and judgment, which is exactly what Vision 2030 is asking our institutions to excel at.”
Agentic AI can directly accelerate Vision 2030 ambitions. As noted by Goldman Sachs Research, generative AI can streamline business workflows, automate routine tasks and give rise to a new generation of business applications.
For Saudi Arabia, this means modernizing legacy sectors, improving efficiency in health care and financial services, and supercharging nascent industries. 
The MuleSoft report confirmed that APIs and API-related implementations now account for 40 percent of company revenue on average, up from 25 percent in 2018, demonstrating the tangible economic value of a connected, AI-ready infrastructure.
El-Charif also highlighted the societal dimension, stating: “For a vibrant society, this technology drives transparency and trust. When rules are encoded into agents, their application becomes consistent and audit-ready. This builds confidence in the market and investors know that compliance isn’t subjective, but structural.”
Finally, this transition will create high-value roles for humans. The integration challenge itself is a source of future jobs. The MuleSoft report found that developers spend an estimated 39 percent of their time building custom integrations, and IT staffing budgets are expected to rise by 61.5 percent year-over-year to meet AI demand.
Al-Khotani foresees specific new roles emerging from the AI integration challenge, saying: “Salesforce’s research shows that organizations adopting AI expect their data and integration teams to grow nearly 50 percent over the next three years.” 
He went on explaining that this opens pathways for new roles such as AI integration architects, agent workflow designers, and responsible AI officers and digital trust specialists.
El-Charif identified the emergence of roles such as “Legal Engineer,” — someone who understands both the regulation and how to encode it into logic.
Furthermore, as AI handles routine tasks, workers are freed for more strategic, creative, and innovative work, precisely the skills needed for a knowledge-based economy. 
Al-Khotani envisioned this shift elevating Saudi Arabia’s broader economic structure: “As agents take on routine and administrative tasks, Saudi Arabia’s workforce will shift toward higher-value roles that emphasize creativity, human judgment, and strategic decision-making.”
He added that this shift increases productivity per capita, a core Vision 2030 outcome, because the workforce is no longer limited by the volume of manual work it can process. “The macroeconomic structure becomes more innovation-driven and less labor-intensive.”
Global AI adoption is accelerating, worker productivity and satisfaction are skyrocketing with its use, and the next wave of enterprise value lies in agentic AI.
For Saudi Arabia, the mandate is to build the robust, integrated digital foundations today that will allow its organizations and workforce to not just participate in this future, but to lead it, turning the promise of Vision 2030 into an intelligent, automated, and human-centric reality. 
As Al-Khotani concluded: “The future economy will not reward automation alone, it will reward nations that use AI to elevate human potential. Saudi Arabia is positioned to be one of them.”