Lebanese parliament approves law lifting banking secrecy
The Lebanese parliament has approved a law aimed at removing banking secrecy in the country, a key reform demanded by the International Monetary Fund for a $3 billion package to be delivered.
A majority of 87 MPs voted for the law, while 13 were against in the 128-member legislature. There is a 10-year retroactive clause in the law, meaning that it will apply to all accounts dating back to 2015.
For decades Lebanon had been known for its banking secrecy, which prevented banks from disclosing any information about their clients or their accounts to anyone. But while that secrecy was once seen as a tool to help the economy, in recent times it has been viewed as a cover for corrupt practices.
Former central bank governor Riad Salameh has been detained over charges of embezzling public funds. Nady Salameh, the son of Riad, is among close relatives of top officials accused of transferring money abroad and evading the withdrawal restrictions faced by most Lebanese.
The IMF deal entered into a staff-level agreement with the state in April 2022, but Lebanon was accused of dragging its feet in introducing the reforms required.
Economic reform
Lebanon's new leaders insist they are committed to the IMF programme but have sought to renegotiate it.
International donors have also made economic reform, which would include lifting baking secrecy, a key requirement for Lebanon to access the much-needed aid to rebuild the country after it suffered widespread devastation during Israel 's war with Hezbollah last year.
Lebanon's economy, already struggling at the time, experienced a severe downturn in 2019 that has been blamed on decades of financial mismanagement and corruption by the country's ruling classes.
The crisis has culminated in the depreciation of the local currency, falling by more than 95 per cent against the US dollar. It has also seen depositors locked out of their savings.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Zawya
2 hours ago
- Zawya
IMF backs Oman's reforms, warns of global risks
A recent visit by a staff team from the International Monetary Fund (IMF), held in Muscat from May 21 to 29, 2025, has provided a timely and comprehensive assessment of Oman's macroeconomic trajectory. Led by César Serra, the mission engaged with national authorities on key developments, fiscal performance, structural reforms and medium-term outlooks. The statement issued at the end of the visit presents a cautiously optimistic picture of Oman's economy — one marked by resilience, reform and prudent policymaking — while also highlighting emerging risks that require close attention. According to the IMF, Oman's real GDP expanded by 1.7 per cent in 2024, up from 1.2 per cent the previous year. This growth was achieved despite reduced hydrocarbon output, in line with Opec+ production curbs. The performance reflects strong non-oil sector activity — especially in manufacturing, logistics, tourism and services — all core areas targeted under Oman Vision 2040's diversification agenda. Looking ahead, GDP growth is forecast to accelerate to 2.4 per cent in 2025 and 3.7 per cent in 2026, supported by the expected phase-out of production limits and sustained investment in strategic sectors. Inflation remains well contained, registering 0.9 per cent year-on-year during January–April 2025, providing a stable environment for consumers and investors alike. The IMF notes that Oman's fiscal surplus stood at 3.3 per cent of GDP in 2024, although this figure was slightly lower than earlier estimates due to accelerated public investment in infrastructure, health, education and water services. In parallel, Energy Development Oman (EDO) redirected a portion of its dividend payments to long-term investment, further contributing to the temporary narrowing of fiscal space. Over the short term, the fiscal surplus is projected to moderate to an average of 0.5 per cent of GDP during 2025–2026, before recovering in the medium term as oil output increases and reform measures take hold. Importantly, Oman continues to make significant progress in public debt reduction. Central government debt declined to 35.5 per cent of GDP in 2024, down from 37.5 per cent the previous year. State-owned enterprise (SOE) debt also fell to approximately 31 per cent of GDP, reflecting continued progress on governance and operational reform under the Oman Investment Authority. Oman's current account posted a surplus of 2.2 per cent of GDP in 2024 but is expected to shift into a moderate deficit of around 2 per cent of GDP during 2025–2026, due to softer oil prices and more subdued non-oil export growth. Nonetheless, the IMF expects a return to surplus thereafter, contingent on higher oil production and stronger trade performance. On the financial front, the banking sector remains robust. Omani banks are well-capitalised, profitable, and maintain strong liquidity positions. The sector continues to support private sector credit growth, backed by an expanding deposit base and a positive net foreign asset position. The IMF report underscores that structural reforms are advancing across multiple fronts. The Tax Authority is implementing its Tax Administration Modernisation Programme, the Central Bank of Oman is refining its liquidity management framework, and efforts are underway to expand access to finance through a well-structured financial development agenda. One of the most significant milestones is the operational launch of Future Fund Oman, a new investment platform designed to mobilise private capital into key economic sectors. Several projects have already been approved, and substantial co-investment from the private sector has been secured. Simultaneously, Oman is intensifying its efforts in renewable energy, particularly green hydrogen. These initiatives are vital for future energy security, export diversification and industrial development. The finalisation of the 11th Five-Year Development Plan (2026–2030) — framed under the objectives of Vision 2040 — is expected to play a critical role in consolidating these reform gains and accelerating economic diversification. Despite a broadly favourable outlook, the IMF warns of downside risks. Geopolitical tensions, global trade disruptions and prolonged weakness in oil prices could all undermine fiscal and external stability. Furthermore, elevated global interest rates could raise borrowing costs and dampen private investment, particularly if hydrocarbon revenues soften. To mitigate these risks, the IMF recommends that Oman sustain its current reform momentum, enhance private sector participation and continue building fiscal buffers. Policy consistency and timely implementation will be essential to navigating this uncertain landscape. The IMF's mission affirms that Oman has made tangible progress in strengthening its economic fundamentals. Growth is returning, inflation is low, debt is declining and reforms are deepening. The economy is now better positioned to respond to external shocks and capitalise on long-term opportunities. As Oman prepares to launch its next development cycle, the focus must remain on execution. Maintaining investor confidence, advancing green energy initiatives and ensuring inclusive growth will be critical to achieving Vision 2040's long-term goals. Oman's economic strategy is evolving with purpose. The challenge now is to maintain momentum, institutionalise reform, and drive the transition from a hydrocarbon-dependent model to a resilient, diversified and sustainable economy. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (


Zawya
2 hours ago
- Zawya
Resilient non-oil sectors to keep Qatar's economy afloat in 2025
Doha, Qatar: Qatar's economy is expected to remain on stable footing in 2025, buoyed by steady growth in non-hydrocarbon sectors and a slight recovery in hydrocarbon output, according to a recent analysis by Fitch Solutions. While global economic uncertainty and softening energy prices have led to a downward revision in the country's growth forecast from 2.9 percent to 2.6 percent, Fitch reports that Qatar's diversified growth drivers and long-term energy export contracts will shield it from more severe global shocks. Fitch revised Qatar's real GDP growth forecast for 2025 down to 2.6 percent, citing lower global energy prices and increased investor caution amid elevated international uncertainty. The updated figure is a slight reduction from the previously expected 2.9 percent but still represents a modest improvement over 2024's estimated 2.4 percent growth. Notably, Fitch remains more optimistic than the International Monetary Fund (IMF), which forecasts 2.4 percent growth for a second consecutive year. Analysts emphasises that the direct impact of recent US tariffs on Qatar will be minimal. Exports to the United States comprise just 1.5 percent of Qatar's total exports and less than 1 percent of GDP. Moreover, most of these exports are exempt from tariffs, resulting in an effective rate of just 6.4 percent well below the rates faced by many other MENA economies. 'We believe Qatar is largely insulated from weaker growth in key trading partners such as China, thanks to its reliance on long-term hydrocarbon export contracts,' Fitch analysts noted. This export model has proven resilient, limiting exposure to short-term global demand shocks. Instead, the downward revision stems primarily from anticipated softness in non-hydrocarbon sectors, particularly construction and real estate. Weaker energy revenues are expected to dampen both public and private investment, as lower oil and gas prices prompt a more cautious approach from investors. As a result, Fitch lowered its forecast for non-hydrocarbon growth from 3.8 percent to 3.4 percent. However, not all sectors are slowing. Manufacturing is projected to rebound in 2025 following a 2.2 percent contraction in 2024, and the financial sector is set to benefit from expected interest rate cuts. Fitch also pointed to signs of resilience in household consumption, supported by slowing inflation, rising wages, and population growth. 'Purchasing Managers Index (PMI) data from early 2025 shows stronger non-hydrocarbon activity compared to Q1 2024, especially in manufacturing, services, and retail,' the report stated. 'This reinforces our view that these sectors will continue to support overall economic growth.' On the hydrocarbon side, growth is forecast to rise slightly from 0.6 percent in 2024 to 0.9 percent in 2025, supported by a 1.6 percent rebound in oil and gas output. The sector is expected to gain further momentum in 2026, with output projected to jump 5.2 percent as capacity expansions from the North Field come online. The data also shows that Qatar's external accounts remain strong. Although the current account surplus is expected to narrow from 17.4 percent of GDP in 2024 to 10 percent in 2025 due to lower hydrocarbon revenues, the surplus is still large enough to maintain confidence in the riyal's US dollar peg. In terms of monetary policy, Fitch forecasts that the Qatar Central Bank (QCB) will follow the US Federal Reserve in easing rates, but at a slightly more aggressive pace. The QCB is expected to cut policy rates by 120 basis points starting in July 2025, compared to 100 basis points anticipated by the Fed. Since October 2024, QCB rate cuts have consistently outpaced the Fed's by 5 basis points per move. Despite the challenges, Fitch Solutions underscores Qatar's relative economic resilience in the region. The report added, 'Strong fundamentals, long-term contracts in hydrocarbons, and targeted government spending will continue to provide a floor under growth.' © Dar Al Sharq Press, Printing and Distribution. All Rights Reserved. Provided by SyndiGate Media Inc. (


Zawya
5 hours ago
- Zawya
MENA region records 225 M&A deals worth $46bln in Q1
Doha: According to the latest EY MENA M&A Insights 2024report, the MENA region witnessed 225 M&A deals in Q1 2025, up from the 172 deals recorded in Q1 2024, reflecting a 31% increase in deal volume when compared year-on-year. Total deal value rose by 66% to US$46bn in Q1 2025, when compared to $27.6bn in Q1 2024. Cross-border deals were the primary driver of M&A activity in the MENA region, contributing 52% of total deal volume with 117 deals and 81% of total deal value at $37.3bn. The first quarter of 2025 recorded the highest cross-border deal activity both in volume and value when compared to the same period in the past five years, as companies increasingly pursued growth and diversification beyond domestic markets. Brad Watson, MENA EY-Parthenon Leader, says: 'In 2024 we saw a steady flow of M&A deals and the MENA region continues to exhibit a robust influx of M&A transactions in 2025. This is supported by regulatory reforms, policy shifts, and a favorable macroeconomic outlook, including easing interest rates and improved investor sentiment.' 'This growth is also reflected in the steady increase of domestic M&A activity, whichcontributed48% of total deal volume in Q1 2025. The rise in domestic M&A transactions aligns with the IMF projection that MENA GDP will grow by 3.6% this year and is further supported by the strong global M&A momentum. Companies are realigning their strategies to better accommodate the need for diversification, digital transformation, and the integration of emerging technologies.' In the MENA region, the United Arab Emirates (UAE) remained the top target country with 63 deals totaling $20.3bn in Q1 2025. Kuwait ranked second in terms of deal proceeds, reaching $2.3bn, driven by two major transactions in the Diversified Industrial Products and Power & Utilities sectors. During the first three months of 2025, Canada attracted the highest outbound deal value from MENA investors at US$6.4b, while the USA remained the preferred target destination in terms of deal volume. Sovereign Wealth Funds (SWFs) like ADIA, PIF, and Mubadala, along with other government-related entities (GREs), remained key M&A drivers in Q1 2025, aligning with national economic strategies and diversification goals. In the first quarter of 2025, M&A activity in the MENA region witnessed a 20% increase in deal volume while deal value rose significantly reaching US$8.7b as compared to $1.69bn recorded in Q1 2024. The technology sector led domestic M&A activity in MENA in Q1 2025, contributing 37% of total domestic deal value and 27% of total domestic deal volume. The largest domestic deal during the first quarter of the year was a $2.2bn acquisition where Group 42, an Abu Dhabi based AI and cloud computing firm, agreed to acquire a 40% stake in Khazna Data Centres, a digital infrastructure provider. Anil Menon (pictured), MENA EY-Parthenon Head of M&A and Equity Capital Markets Leader, says: 'The MENA deal markets remained resilient despite lack of clarity on two fronts: the impact of monetary policy on cost ofcapital and the ongoing tariff and trade discussions. The MENA deal book for the remainder of 2025 is promising and we can expect to see increased activity in consumer, technology, and energy sectors. In addition, with AI expected to drive material shifts in fundamental value, we can expect to see significant capital allocation in technology.' © Dar Al Sharq Press, Printing and Distribution. All Rights Reserved. Provided by SyndiGate Media Inc. (