The MIDEL board of directors met on April 2, 2026, in Beirut. (Crdit: Photo released by MIDEL)
BEIRUT — The International Movement of Lebanese Enterprises (MIDEL) on Thursday warned that the war between Hezbollah and Israel, which began on March 2 and was condemned by the group, could be “fatal” for Lebanon’s private sector, raising concerns about the economic fallout after the conflict.
"The Lebanese private sector has lost most of its capacity for resilience, adaptation, and restructuring in the face of this new war, which could be fatal to our economy and institutions," wrote MIDEL's board of directors, chaired by Fouad Zmokhol, during an emergency meeting.
"The market is experiencing serious and unprecedented disruptions in all supply chains, whether local, regional, or international, strongly affecting economic activity. In addition, there are signs of a dangerous liquidity crisis, which could worsen as the war continues, and portending catastrophic economic and social consequences if the conflict is prolonged. All indicators show that this conflict could last for a long time," the statement continued.
MIDEL also warned against "the risk of social explosion, which could be even more severe and intense than the war itself, due to inflation reaching unprecedented levels." Over a million people have been forced to flee the bombings since the war began.
MIDEL finally insisted that "the Lebanese state and all its institutions must continue to function despite the hardships of war, without halting the implementation of necessary structural reforms, notably the law on end-of-service indemnities and the strengthening of social security, and by granting additional time to the private sector to fulfill its tax obligations."
"There is no doubt that the war is harsh, but the post-war period will also be difficult due to the deficit and the lack of internal, regional, and international funding for reconstruction and for attracting investments and investors, because of the loss of confidence and the absence of a unified vision to rebuild this sacred land, a land of peace and love," the statement concluded.
