Research & Commentary Results

The current government in Lebanon is keen to encourage financial recovery and find a new path to economic growth. A thorough understanding of the causes behind the country’s recession and the factors constraining a recovery are necessary to shape policy priorities. These are also important as an input into the discussions of the 2026 budget and to the ongoing negotiations with the International Monetary Fund (IMF). Using the wrong framework for these decisions could yield low economic growth, which would be harmful for a quick and decisive economic recovery. Conversely, improved economic outcomes and broad buy-in, following public consultations, will ease the implementation of politically difficult reforms. Thus, policymakers must take great care to develop a narrative about how to achieve progress in the short and medium terms that is adjusted to local circumstances.

Restoring both domestic and international confidence in the Lebanese government will ultimately depend on taking tangible steps towards economic revival. This article presents key policy options to achieve this result, including rebuilding trust through improved governance and judicial reforms, investing in digital infrastructure, driving sustainable growth via regional integration and innovation, and balancing economic revival with sovereign debt restructuring.

While the banking crisis remains unresolved, there is still ample scope for Lebanon’s central bank to advance reforms and set the stage for a sustainable economic recovery even without a comprehensive reform program supported by the IMF.

Seizing Lebanon’s once-in-a-generation opportunity hinges on its ability to resolve its core dysfunction: reclaiming the state’s monopoly on force and its exclusive authority to determine matters of war and peace. Beirut, backed by deepening US support, must focus on achieving tangible milestones and strategic victories that momentum, making Hizballah’s disarmament unstoppable and the state’s reassertion of authority irreversible.

The central challenge facing Lebanon today is whether the country will graduate to functional statehood or continue struggling to survive. Yet with Lebanese officials now insisting that the state “monopolize arms” and become the decisive arbiter on matters of war and peace, a relevant question arises: Where, territorially, does Lebanon begin and end?

To encourage and incentivize long-overdue structural reforms, the European Union and the broader international community should adopt a more proactive, hands-on approach to Lebanon. The current context calls for an approach that balances assistance delivery with active support to the Lebanese government in its quest to reform and rebuild the state.

Saudi Arabia and Pakistan signed a mutual defense pact on September 17, 2025, declaring that “any aggression against either country shall be considered an aggression against both.” The wording of the agreement sparked speculation that Pakistan might use its nuclear capabilities to defend Saudi Arabia. MEI’s F. Gregory Gause contends otherwise, offering insight into the history and strategic calculations driving the deal. To learn more about the deal, visit our website.

Following Israel’s September 9 strike on Hamas targets in Qatar, Pakistan has taken swift and significant foreign policy steps in response and adopted an unusually assertive stance. This shift was largely influenced by Pakistan’s military chief, Field Marshal Asim Munir. The latter is determined to enhance his country’s strategic autonomy and diplomatic leverage in an increasingly complex international environment by positioning Pakistan as a key security actor and an emerging middle power on the global stage.

The Strategic Mutual Defense Agreement (SMDA) between Saudi Arabia and Pakistan, signed in Riyadh on September 17, is far more than a bilateral pledge. It represents a profound reordering of alignments in the Gulf and South Asia, reflecting and reinforcing the broader erosion of US preeminence in the Eurasian security architecture. While much of the initial commentary centered on the striking commitment of a wealthy Gulf monarchy to the defense of a nuclear-armed South Asian state, as well as the question of whether Pakistan had in fact extended its nuclear umbrella to Saudi Arabia, the deeper story is arguably China’s potential advance.

The September 17 Saudi-Pakistani defense agreement generated a wave of overheated commentary about Saudi Arabia now residing under a Pakistani nuclear umbrella and how a new strategic reality was in the offing in the Persian Gulf and South Asian regions. Analysts need to slow their roll. Extended deterrence is an extremely difficult thing to pull off. The devil is in the details, about which we know nothing.

Once hailed as a rare democracy in the Middle East, Lebanon has now slipped into the ranks of closed autocracies. Decades of corruption, sectarian rule, and foreign meddling have left the country reeling — and the past year brought assassinations, mass displacement, and Israel’s full-scale war against Hezbollah in the south. With its economy in free fall and its political system on life support, Lebanon stands at a crossroads: could shifts in regional power, efforts to disarm Hezbollah, and a change in leadership pave the way for recovery, or will instability deepen?

At the end of August, the future of the United Nations Interim Force in Lebanon (UNIFIL), established nearly 50 years ago, goes on trial in New York, where the Security Council will debate the renewal of its mandate. Nearly two decades after its transformation under UN Security Council Resolution 1701, UNIFIL is now part of the problem it was created to solve. Ten thousand blue helmets from almost 50 countries, including major North Atlantic Treaty Organization (NATO) members, failed to stop the latest conflict between Israel and Hizballah, and, if business continues as usual, will fail to prevent the next.

With its new government at the half-year mark and the UNIFIL international peacekeeping force’s mandate due for reauthorization at month’s end, Lebanon stands at a pivotal moment. In this episode of Middle East Focus, hosts Alistair Taylor and Matthew Czekaj are joined by MEI Senior Fellow Fadi Nicholas Nassar to evaluate whether the Lebanese state can reclaim its sovereignty, starting with the disarmament of Hizballah and the enforcement of a cease-fire.

The Hamas attack on Oct. 7, 2023, shattered Israel’s long-standing security paradigm, replacing limited deterrence with an ambitious campaign aimed at dismantling Hamas, confronting Hizballah and other Iranian proxies, and directly targeting Iran’s nuclear program with the support of the United States. In stark contrast, Saudi Arabia has prioritized regional stability and de-escalation, restoring relations with Iran, and focusing on its Vision 2030 economic transformation.

The monarchical Arab Gulf states emerged on the other side of last June’s Israeli and US attacks on Iran largely unscathed, with the important exception of a limited, retaliatory Iranian missile strike on the American airbase in Qatar. However, in a larger sense, this short war, part of the broader regional conflict that began with the Hamas attack on Israel in October 2023, reinforced the precariousness of the Gulf monarchies’ security situation.