BEIRUT: The cost of reconstruction and recovery for Lebanon following the 14-month Israel-Hezbollah war is estimated at $11 billion, the World Bank said in a new report Friday.
The war killed over 4,000 people in Lebanon, displaced hundreds of thousands and caused widespread destruction in the nation.
The report by the World Bank’s Lebanon Rapid Damage and Needs Assessment covered damage and losses in ten sectors across the country from Oct. 8, 2023 until Dec. 20, 2024.
Hezbollah began firing rockets across the border on Oct. 8, 2023, one day after a deadly Hamas-led incursion into southern Israel that sparked the war in Gaza. Israel responded with shelling and airstrikes in Lebanon, and the two sides became locked in an escalating conflict that became a full-blown war in late September. A US-brokered ceasefire went into effect in late November.
The World Bank report estimated that of the $11 billion in reconstruction and recovery needs, $3 to $5 billion will need to be publicly financed, including for infrastructure sectors. It added that private financing is required for about $6 to $8 billion of the costs, mostly in the housing, commerce, industry, and tourism sectors.
The report said the economic cost of the conflict on Lebanon totals $14 billion, with damage to physical structures amounting to $6.8 billion and economic losses from reduced productivity, foregone revenues, and operating costs reaching $7.2 billion.
Housing has been the hardest-hit sector with damages estimated at $4.6 billion.
The report found that the conflict resulted in Lebanon’s real gross domestic product contracting by 7.1 percent in 2024, a significant setback compared to a projected growth of 0.9 percent had the war not happened.
By the end of 2024, Lebanon’s cumulative GDP decline since 2019 had approached 40 percent.
World Bank estimates $11 billion needed for reconstruction of Lebanon after Israel-Hezbollah war
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World Bank estimates $11 billion needed for reconstruction of Lebanon after Israel-Hezbollah war
- Of the $11 billion in reconstruction and recovery needs, $3 to $5 billion will need to be publicly financed
- Housing has been the hardest-hit sector with damages estimated at $4.6 billion
Arab Coalition announces ‘limited’ airstrike targeting two ships that smuggled weapons to Yemen
- Coalition urges evacuation of the Port of Mukalla, signaling that a major military operation to force an STC withdrawal could be imminent
- Spokesman says the two ships transported weapons from the UAE port of Fujairah to Mukalla without getting permission from Coalition command
RIYADH: The Coalition to Support Legitimacy in Yemen on Tuesday said it conducted a “limited” airstrike targeting two ships that smuggled weapons and other military hardware into Mukalla in southern Yemen.
In a statement carried by the Saudi Press Agency (SPA), the Coalition Forces spokesman, Major General Turki Al-Maliki, said that two ships coming from the port of Fujairah in the United Arab Emirates entered the Port of Mukalla in Hadramaut without obtaining official permits from the Joint Forces Command of the Coalition.
“The crews of the two ships disabled the tracking systems of the two ships and unloaded a large quantity of weapons and combat vehicles to support the Southern Transitional Council forces in the eastern governorates of Yemen (Hadramawt, Al-Mahra) with the aim of fueling the conflict. This is a clear violation of imposing a truce and reaching a peaceful solution, as well as a violation of UN Security Council Resolution No. (2216) of 2015 AD,” said the spokesman.
The coalition urged civilians and fishermen to evacuate the Port of Mukalla, signaling that a major military operation to force an STC withdrawal could be imminent.
Al-Maliki said the Coalition Forces acted on a request by Rashad Al-Alimi, the president of the Yemeni Presidential Leadership Council, “to take all necessary military measures to protect civilians in the governorates of Hadramawt and Al-Mahra.”
Al-Alimi, the president of the Yemeni Presidential Leadership Council, warned last week that unilateral actions by the STC were pushing the country toward a dangerous tipping point.
“Given the danger and escalation posed by these weapons, which threaten security and stability, the Coalition Air Forces conducted a limited military operation this morning targeting weapons and combat vehicles unloaded from the two ships at the port of Al-Mukalla. This was done after documenting the unloading, and the military operation was carried out in accordance with international humanitarian law and its customary rules, ensuring no collateral damage occurred,” spokesman Al-Maliki said on Tuesday.
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He affirmed the Coalition’s "continued commitment to de-escalation and enforcing calm in the governorates of Hadramawt and Al-Mahra, and to prevent any military support from any country to any Yemeni faction without coordination with the legitimate Yemeni government and the Coalition. This is aimed at ensuring the success of the Kingdom and the Coalition’s efforts to achieve security and stability and prevent the conflict from spreading.”
Disregarding previous agreements with the Coalition, the group calling itself Southern Transitional Council, or STC, launched a sweeping military campaign early in December, seizing the governorates of Hadramaut along the Saudi border and the eastern governorate of Al-Mahra in Yemen’s border with Oman.
The UAE-backed STC forces captured the city of Seiyun, including its international airport and the presidential palace. They also took control of the strategic PetroMasila oilfields, which account for a massive portion of Yemen’s remaining oil wealth.
This prompted Saudi Arabia to issue a firm demand for the STC to withdraw and hand over the seized areas to the National Shield Forces, a Saudi-backed unit.
The coalition warned that any military movements undermining de-escalation efforts would be dealt with immediately to protect civilians, according to the Saudi Press Agency.
On Dec. 26, the UAE issued a statement welcoming Saudi Arabia’s efforts to support security and stability in Yemen.
The statement carried by state news agency WAM praised Saudi Arabia’s constructive role in advancing the interests of the Yemeni people and supporting their legitimate aspirations for stability and prosperity.
