Lebanon prepares for Syria’s post-war construction windfall

In this Wednesday, Aug. 9, 2017 photo, cranes offload hay from a ship onto waiting trucks in the port of the northern city of Tripoli, Lebanon. Markets across the Middle East are anticipating a mammoth reconstruction boom in Syria that could stimulate billions of dollars in economic activity, and Lebanon, as Syria’s neighbor, is in prime position to capture a share of that reward.(AP Photo/Bilal Hussein)
Updated 17 August 2017
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Lebanon prepares for Syria’s post-war construction windfall

TRIPOLI, LEBANON: The port of Tripoli in northern Lebanon wants the world to know it’s ready for business.
British safety managers are training local hires to operate heavy machinery and Chinese technicians are running diagnostics on two new container cranes that tower over the harbor, just 28 kilometers (18 miles) from the Syrian border.
After six years of civil war in Syria, markets across the Middle East are anticipating a mammoth reconstruction boom that could stimulate billions of dollars in economic activity. Lebanon, as Syria’s neighbor, is in prime position to capture a share of that windfall and revive its own sluggish economy.
Battles still rage in Syria’s north and east, and in pockets around the capital, Damascus, but the survival of President Bashar Assad’s government now appears beyond doubt.
That is introducing an element of stability into forecasts not seen since 2011, when the war broke out. The Damascus International Fair, a high-profile annual business event before the war, is to open on Thursday for the first time since war broke out, with participants from 43 countries.
The World Bank estimates the cost to rebuild Syria at $200 billion.
For Lebanon, that could be just the stimulus it needs — the tiny Mediterranean country’s growth rate has hovered around 1.5 percent since 2013. And though the capital, Beirut, has grown visibly richer over the years, Tripoli and the impoverished north have lagged behind.
“Lebanon is in front of an opportunity that it needs to take very seriously,” said Raya Al-Hassan, a former finance minister from northern Lebanon who now directs the Tripoli Special Economic Zone project that’s planned to be built adjacent to the port.
Ahmad Tamer, the port manager, estimates Syria’s reconstruction will create a demand for 30 million tons of cargo capacity annually.
Syria’s chief ports, Tartous and Latakia, also on the Mediterranean Sea, have a combined capacity of 10 to 15 million tons, he says. He wants Tripoli port to be ready to step in for a portion of the rest.
“We could provide up to 5 or 6 or 7 million tons,” he says.
The port is nearing the completion of the first phase of an expansion project first drawn up in 2009, then revised with an eye on Syria in 2016. Capital investment has reached around $400 million, according to the port manager.
On a map, Tamer pointed to a vacant quadrant where 7/8preparations are underway to build silos to hold grain destined for regional markets.
Syria’s conflict has decimated its food production, which included an average of 4.1 million tons of wheat annually before the war, according to the UN’s Food and Agriculture Organization.
In 2017, it managed to produce just 1.8 million tons.
Lebanon’s businessmen and politicians have always maintained close relations with Syrian counterparts. Syria is among Lebanon’s largest trade partners, and arguably its most reliable supplier of cheap labor. Lebanon, in exchange, is the banker to many of Syria’s enterprises and its wealthy elites.
These ties give Lebanon — and Tripoli in particular — an edge over competitors vying for the Syrian market.
The city’s location is also attracting foreign investment. Tripoli port signed a 25-year lease with the Emirati port operator Gulftainer in 2013, to manage and invest in the terminal.
“Our aim was to invest here in anticipation of Syria’s reconstruction,” said Ibrahim Hermes, the CEO of Lebanon’s subsidiary of Gulftainer.
Lebanon is now a fixture on itineraries of prospective investors. Hermes said he has seen delegations arriving from Europe, Asia and especially China, to scope out trade opportunities.
Before the war in Syria, goods coming through Lebanon’s ports used to transit as far afield as Iraq — saving ships from having to take the sea journey through the Suez Canal and around the Arabian Peninsula.
There is talk now that Tripoli could even be a terminal in China’s trillion-dollar new “Silk Road” project, carving a trade route from east Asia to Europe.
The Chinese firm Qingdao Haixi Heavy-Duty Machinery Co. sold the two 28-story container cranes now at the port. Safety signs inside the structures are posted in English and Mandarin.
“Tripoli can be a main transshipment hub for the eastern Mediterranean,” said Ira Hare, a sunburned British manager working for Gulftainer.
Lebanon has officially sought “dissociation” from the Syrian war so as not to fuel rancor among political parties split between those aligned with Damascus and those against it.
But there is also an air of inevitability about the re-normalization of relations, as Assad looks, for the short-term at least, to stay on in power.
Syria’s chief champion in Lebanon, the militant Hezbollah group, which is fighting alongside Assad’s forces, evinces little doubt.
“Our national interest is for the border between Lebanon and Syria to be open ... because, tomorrow the routes will open to Iraq and to Jordan and we want to be able to transport Lebanese goods,” Hezbollah’s leader, Hassan Nasrallah, said in a speech this week.
A Hezbollah minister, Hussein Hajj Hussein, is one of two Cabinet ministers headed to Syria this week in a highly controversial visit, the first since the start of the war. Prime Minister Saad Hariri, an Assad critic, said the visit did not have government backing.
Damascus also knows it will be brought back in from the cold.
The Damascus International Fair, which promises to attract investors from Russia, China, Iran, and other places, is a telling indicator of the mood in the Syrian capital.
Europe and the United States are hesitant to finance the reconstruction projects so long as Assad, a pariah to the West, remains in power. But Russia, China, and Iran, as well as investors in Lebanon and the Middle East, are showing no signs of hesitation.
“As soon as there is a political agreement to end the war, we will be among the first countries to play a role in reconstruction,” said Al-Hassan, the former finance minister.


Why BCG’s involvement in Gaza marks an all-time low for consulting firms

Updated 13 July 2025
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Why BCG’s involvement in Gaza marks an all-time low for consulting firms

  • FT investigation examined Boston Consulting Group’s role in Gaza aid planning, including plans for Palestinian relocation
  • BCG has disavowed the work and fired two senior partners — but the scandal sheds light on the wider industry’s irresponsibility

LONDON: A Financial Times investigation, published on July 4, found that a consulting firm connected to the Gaza Humanitarian Foundation secured a multimillion-dollar contract to help shape the initiative and a proposal for the possible “relocation” of Palestinians from the Gaza Strip.

The Boston Consulting Group was found to have played a central role in designing and managing the US- and Israeli-backed project, which aimed to replace the UN as the primary coordinator of humanitarian aid in Gaza.

Amid growing criticism, BCG denied any ongoing involvement in the Gaza Humanitarian Foundation. In a June 7 statement, the firm said it initially provided “pro bono support” in October 2024 to help launch “an aid organization intended to operate alongside other relief efforts.”

BCG has faced heavy scrutiny for its role in Gaza’s postwar reconstruction, mainly through its work with the controversial Gaza Humanitarian Foundation. (AFP file)

The firm said two senior US-based partners who led the initiative “failed to disclose the full nature of the work” and later engaged in “unauthorized” activities outside the firm’s oversight.

“Their actions reflected a serious failure of judgment and adherence to our standards,” the firm said. “We are shocked and outraged by the actions of these two partners. They have been exited from the firm.

“BCG disavows the work they undertook. It has been stopped, and BCG has not and will not be paid for any of their work.”

The company emphasized it is strengthening internal controls to prevent future breaches. “We deeply regret that in this situation we did not live up to our standards,” the statement said. “We are committed to accountability for our failures and humility in how we move forward.”

FAST FACTS:

• A Financial Times investigation examined BCG’s role in Gaza aid planning, including controversial proposals for Palestinian relocation.

• BCG disavowed the work and fired two senior partners, but documents suggest deeper involvement and lapses in internal oversight.

• The scandal underscores wider concerns about consulting firms’ ethics, with similar controversies involving PwC, KPMG, EY and McKinsey.

Following the FT story, BCG issued another statement on July 6 disputing aspects of the reporting. “Recent media reporting has misrepresented BCG’s role in post-war Gaza reconstruction,” the firm said.

BCG reiterated that the initiative was not an official company project and was carried out in secret. “Two former partners initiated this work, even though the lead partner was categorically told not to,” the statement read.

“This work was not a BCG project. It was orchestrated and run secretly outside any BCG scope or approvals. We fully disavow this work. BCG was not paid for any of this work.”

Buildings that were destroyed during the Israeli ground and air operations stand in northern of Gaza Strip as seen from southern Israel on July 10, 2025. (AP Photo)

However, individuals familiar with “Aurora” told the FT that BCG’s involvement ran deeper. The report revealed that BCG created a financial model for Gaza’s postwar reconstruction that included scenarios for mass displacement.

This revelation intensified scrutiny of the consulting industry’s ethical boundaries.

“Consulting companies… are held to a higher standard of professionalism and ethics than other lines of work,” Dr. Abdel Aziz Aluwaisheg, the Gulf Cooperation Council assistant secretary-general for political affairs and negotiation, wrote in an April opinion piece for Arab News.

He warned that without corrective action, major firms risk alienating clients.

Displaced Palestinians carrying relief supplies from the Gaza Humanitarian Foundation (GHF) return from aid distribution centers in Rafah to their tents in the southern Gaza Strip on May 29, 2025. (AFP)

ndeed, in recent years, top consulting firms like McKinsey, PwC, KPMG, and EY have faced growing scrutiny for putting profit over ethics, with scandals revealing conduct lapses worldwide.

McKinsey, for instance, faced heavy backlash for its role in the US opioid crisis. The firm was accused of helping Purdue Pharma and other manufacturers to aggressively market addictive painkillers, including OxyContin, The New York Times reported.

Aluwaisheg noted in his op-ed that some of these ethical lapses “are quite common throughout the consulting business.”

However, he added, “big firms are more likely to commit them,” citing sprawling operations that limit senior management oversight.

The industry’s core business model may be the issue: consulting firms adopted law firms’ high-fee model for expert advice — without their legal liability.

Despite this, demand for consulting services remains high. Aluwaisheg believes governments and businesses will continue to need outside expertise.

People walk by PricewaterhouseCoopers (PwC) New York headquarters. (AFP)

Still, accountability concerns have prompted some governments to take action. In February, Saudi Arabia’s Public Investment Fund banned PwC from taking on new advisory and consulting contracts for one year.

Some media outlets reported that the decision was related to an ethical violation tied to an alleged recruitment of a senior-level employee from the client’s side. The suspension did not impact PwC’s auditing work.

These events highlight ongoing concerns over consulting firms’ roles in controversial actions. In April 2024, KPMG’s Dutch arm was fined $25 million after over 500 staff cheated on internal training exams, Reuters reported.

Yet the BCG case may represent a new low for the industry.

The Gaza Humanitarian Foundation’s model bypassed traditional organizations like the UN, restricted aid distribution to limited sites under Israeli oversight and relied on private security contractors. This move has had deadly consequences.

According to Gaza’s health authority, at least 740 Palestinians have been killed and almost 4,900 injured while attempting to reach aid centers, drawing condemnation from humanitarian organizations and UN officials.

Displaced Palestinians look around on alert in the wake of gunfire shots as they receive food packages from a US-backed foundation pledging to distribute humanitarian aid in western Rafah in the southern Gaza Strip on May 27, 2025. (AFP)

UN aid chief Tom Fletcher called the initiative a “fig leaf for further violence and displacement” of Palestinians in the war-torn enclave.

In a July 10 letter to the FT editor, BCG’s CEO Christoph Schweizer pushed back against the allegations that his firm endorsed or profited from projects related to Gaza.

“None of that is true,” Schweizer wrote, adding that “a few people from BCG were involved in such work. They never should have been.”

Adding another layer to the controversy, FT reported on July 6 that staff from the Tony Blair Institute were also implicated in postwar planning that included scenarios for mass Palestinian displacement — despite being prominent advocates for peace in the Middle East.

Christoph Schweizer, CEO of Boston Consulting Group. (Supplied)

The plan, seen by the FT, imagined Gaza as a regional economic hub, complete with a “Trump Riviera” and “Elon Musk Smart Manufacturing Zone,” based on financial models developed by BCG.

While the Tony Blair Institute for Global Change denied authoring “The Great Trust” blueprint, it acknowledged two staff joined Gaza planning calls and chats. It also denied backing population relocation.

Arab News approached the TBI for comment, but did not receive a response by the time of publication.

Nevertheless, its involvement has triggered additional concerns about the ethics of postwar reconstruction planning and the role of consulting firms in shaping policies with far-reaching humanitarian consequences.
 

 


Syrian, Israeli officials meet in Baku: Diplomatic source in Damascus

Updated 12 July 2025
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Syrian, Israeli officials meet in Baku: Diplomatic source in Damascus

  • Meeting marked major step for two countries which have been foes for decades

DAMASCUS: A Syrian and an Israeli official met face to face in Baku Saturday on the sidelines of a visit to Azerbaijan by President Ahmed Al-Sharaa, a diplomatic source in Damascus said.

The meeting marked a major step for the two countries which have been foes for decades, and comes after Israel initially cold-shouldered Al-Sharaa’s administration as jihadist because of his past links to Al-Qaeda.

“A meeting took place between a Syrian official and an Israeli official on the sidelines of Al-Sharaa’s visit to Baku,” the source said, requesting anonymity because of the sensitivity of the issue.

Israel is a major arms supplier to Azerbaijan and has a significant diplomatic presence in the Caucasus nation which neighbors its arch foe Iran.

Al-Sharaa himself did not take part in the meeting, which focused on “the recent Israeli military presence in Syria,” the source added.

After the overthrow of longtime ruler Bashar Assad in December, Israel carried out hundreds of air strikes in Syria to prevent key military assets falling into the hands of the Islamist-led interim administration headed by Al-Sharaa.

It also sent troops into the UN-patrolled buffer zone that used to separate the opposing forces in the strategic Golan Heights, from which it has conducted forays deeper into southern Syria.

Al-Sharaa has said repeatedly that Syria does not seek conflict with its neighbors, and has instead asked the international community to put pressure on Israel to halt its attacks.

His government recently confirmed that it had held indirect contacts with Israel seeking a return to the 1974 disengagement agreement which created the buffer zone.

Late last month, Foreign Minister Gideon Saar said Israel was interested in striking a peace and normalization agreement with Syria.

A Syria government source quoted by state media responded that such talk was “premature.”

But during a visit to Lebanon this week, US special envoy to Syria Tom Barrack said: “The dialogue has started between Syria and Israel.”

After meeting Al-Sharaa in Riyadh in May, US President Donald Trump told reporters he had expressed hope that Syria would join other Arab states which normalized their relations with Israel.

“(Al-Sharaa) said yes. But they have a lot of work to do,” Trump said.

During his visit to Baku, Al-Sharaa held talks with his counterpart Ilham Aliyev, the two governments said.

Azerbaijan announced it would begin exporting gas to Syria via Turkiye, a key ally of both governments, a statement from the Azerbaijani presidency said.


5 children playing soccer killed in Yemen explosion

Updated 12 July 2025
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5 children playing soccer killed in Yemen explosion

  • Two local residents who were eyewitnesses, Ahmed Al-Sharee and Khaled Al-Areki, said that the children were playing soccer when the explosion happened

ADEN: Five children in southwestern Yemen died after an explosive device detonated in a residential area where they were playing soccer, rights groups and eyewitnesses said on Saturday.
The circumstances surrounding their deaths on Friday night in Al-Hashmah subdistrict of Taiz province remain unclear. 
A spokesperson for the United Nations children’s agency UNICEF said that they are aware of reports about the incident but can’t verify the facts at the moment.
Two local residents who were eyewitnesses, Ahmed Al-Sharee and Khaled Al-Areki, said that the children were playing soccer when the explosion happened.
At least three people with minor to moderate injuries were also taken to the hospital. 
Mahmoud Al-Mansi, another eyewitness, said the explosive was directed from an area where forces allied with the Islah party were present.
The Yemen Center for Human Rights condemned the incident in a report that included graphic photos of the children’s torn bodies.  Citing health care sources at Al-Rafai Hospital, where the victims arrived unresponsive, the group said they died from shrapnel injuries. 
Two of the children were 12 years old, while two others were 14 years old, according to the group. The age of the fifth child is unknown.

 


US envoy Tom Barrack clarifies Syria comments, denies they were threat to Lebanon

Updated 12 July 2025
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US envoy Tom Barrack clarifies Syria comments, denies they were threat to Lebanon

  • Reports cited Barrack warning that Lebanon risked “going back to Bilad Al-Sham”
  • Syrian government also moved to quash speculation that it was planning escalatory steps against Lebanon

LONDON: US Special Envoy Tom Barrack has sought to clarify remarks made during his recent visit to the region, saying that his comments praising Syria’s progress were not intended as a threat to neighboring Lebanon.

“My comments yesterday praised Syria’s impressive strides, not a threat to Lebanon,” Barrack posted on X on Saturday.

“I observed the reality that Syria is moving at light speed to seize the historic opportunity presented by @POTUS’ lifting of sanctions: Investment from Turkiye and the Gulf, diplomatic outreach to neighboring countries and a clear vision for the future. I can assure that Syria’s leaders only want coexistence and mutual prosperity with Lebanon, and the US is committed to supporting that relationship between two equal and sovereign neighbors enjoying peace and prosperity,” he added.

The clarification comes after reports in Lebanese media, including from MTV Lebanon, cited Barrack as warning that Lebanon risked “going back to Bilad Al-Sham” if it failed to act quickly on regional realignment.

The term Bilad Al-Sham, historically referring to Greater Syria, encompasses present-day Syria, Lebanon, Jordan and Palestine under the Ottoman Empire; a sensitive concept in Lebanon given fears over sovereignty and outside interference.

Barrack’s comments were widely interpreted by some local outlets as a warning that Lebanon could fall under renewed Syrian influence if it failed to align with shifting regional dynamics.

Meanwhile on Saturday, the Syrian government also moved to quash speculation that it was planning escalatory steps against Lebanon over the issue of Syrian detainees held in Lebanese prisons.

A Syrian Ministry of Information official said that the detainee issue remains “a top priority” and that Damascus is committed to resolving it “swiftly through official channels between the two countries.”

Earlier reports had cited unnamed sources close to the Syrian government suggesting that diplomatic and economic retaliation was under consideration in response to what Damascus saw as Lebanon’s neglect of the detainees’ plight.

However, the Information Ministry source denied this, saying there were no such plans and reaffirming Syria’s commitment to bilateral resolution.

In an interview with Arab News on Friday, Barrack had made remarks reflecting growing US concern over Lebanon’s political inertia and the evolving role of Hezbollah.

“If Lebanon doesn’t hurry up and get in line, everyone around them will,” Barrack warned, pointing to a broader regional shift sparked by the lifting of US sanctions on Syria.

He framed the moment as pivotal for Lebanon, with pressure mounting for a new political order.

Addressing questions about Hezbollah’s future, Barrack said the group consists of “two parts,” an Iran-backed militant faction designated as a terrorist organization, and a political wing operating in Lebanon’s parliament.

He added that any disarmament process “must be led by the Lebanese government, with the full agreement of Hezbollah itself.”

Barrack said: “That process has to start with the Council of Ministers. They have to authorize the mandate. And Hezbollah, the political party, has to agree to that. But what Hezbollah is saying is, ‘OK, we understand one Lebanon has to happen.’ Why? Because one Syria is starting to happen.”

On Syria, Barrack described the lifting of sanctions on May 13 as a “strategic fresh start” for the war-ravaged nation and said that the US was not intending to pursue “nation-building or federalism.”

He called the Middle East a “difficult zip code at an amazingly historic time,” and told Arab News that the Trump administration’s new approach was designed to offer “a new slice of hope” to the Syrian people.

“President (Trump)’s message is peace and prosperity,” he said. “Sanctions gave the people hope. That’s really all that happened at that moment.”


Fuel shortages in Gaza at ‘critical levels,’ UN warns

Updated 12 July 2025
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Fuel shortages in Gaza at ‘critical levels,’ UN warns

  • Seven UN agencies said in a joint statement that “fuel is the backbone of survival in Gaza”

GENEVA: The United Nations warned Saturday that dire fuel shortages in the Gaza Strip had reached “critical levels,” threatening to further increase the suffering in the war-ravaged Palestinian territory.

Seven UN agencies said in a joint statement that “fuel is the backbone of survival in Gaza.”

Fuel was needed to “power hospitals, water systems, sanitation networks, ambulances, and every aspect of humanitarian operations,” they said, highlighting that bakeries also needed fuel to operate.

The besieged Palestinian territory has been facing dire fuel shortages since the beginning of the devastating war that erupted after Hamas’s deadly attack inside Israel on October 7, 2023.

But now “fuel shortage in Gaza has reached critical levels,” warned the agencies, including the World Health Organization, the World Food Programme and the humanitarian agency OCHA.

“After almost two years of war, people in Gaza are facing extreme hardships, including widespread food insecurity,” they pointed out.

“When fuel runs out, it places an unbearable new burden on a population teetering on the edge of starvation.”

The UN said that without adequate fuel, the agencies that have been responding to the deep humanitarian crisis in a territory swathes of which have been flattened by Israeli bombing and facing famine warnings, “will likely be forced to stop their operations entirely.”

“This means no health services, no clean water, and no capacity to deliver aid,” the statement said.

“Without adequate fuel, Gaza faces a collapse of humanitarian efforts,” it warned.

“Without fuel, bakeries and community kitchens cannot operate. Water production and sanitation systems will shut down, leaving families without safe drinking water, while solid waste and sewage pile up in the streets,” it added.

“These conditions expose families to deadly disease outbreaks and push Gaza’s most vulnerable even closer to death.”

The warning comes days after the UN managed to bring fuel into Gaza for the first time in 130 days.

While a “welcome development,” the UN agencies said the 75,000 liters of fuel they were able to bring in was just “a small fraction of what is needed each day to keep daily life and critical aid operations running.”

“The United Nations agencies and humanitarian partners cannot overstate the urgency of this moment,” they said.

“Fuel must be allowed into Gaza in sufficient quantities and consistently to sustain life-saving operations.”