Gulf set to invest in Lebanon’s digital future

Lebanon is preparing to announce a major Gulf-backed investment in its digital sector in the coming weeks, marking a potentially significant step in the country’s economic recovery strategy. Minister of State for Technology and Artificial Intelligence Kamal Shehadi revealed the forthcoming initiative, emphasizing the government’s commitment to rebuilding Lebanon’s economy through digital transformation and international partnerships.

As Lebanon continues to recover from political instability, economic collapse, and the aftermath of the Israel-Hezbollah War (2023-2024), officials increasingly view the digital economy as a central pillar for sustainable growth.

Strategic partnerships over financial aid

Shehadi stressed that Lebanon is prioritizing investment partnerships rather than seeking direct financial assistance. The anticipated Gulf investment is expected to support the development of digital government services as part of a broader national transformation plan. Although Gulf states have previously adopted cautious engagement with Lebanon due to political concerns, regional interest in supporting the country’s recovery has recently grown (which was evident in Qatar’s decision to provide approximately $434 million in assistance).

Shehadi described the planned digital investment as a “win-win” opportunity that would allow foreign investors to generate returns while supporting Lebanon’s modernization efforts. He شمسخ noted that Lebanon has the potential to become a regional hub for digital innovation, supported by an active entrepreneurial ecosystem and internationally recognized talent.

Regional engagement and global cooperation

Lebanon has intensified diplomatic and economic engagement with regional partners as part of its digital strategy. During recent meetings at the World Governments Summit in Dubai and the General Assembly of the Digital Co-operation Organization (DCO) in Kuwait, Shehadi held discussions with counterparts from the United Arab Emirates (UAE), Saudi Arabia, Kuwait, and Jordan. These discussions focused on reintegrating Lebanon into regional digital initiatives and establishing unified regulatory frameworks to support cross-border digital business.

Lebanon is also exploring membership in the DCO, which promotes international digital collaboration. Joining the organization could provide access to new investment opportunities, technical expertise and regulatory cooperation, strengthening Lebanon’s digital transformation plans.

Partnerships with global technology leaders

Alongside regional engagement, Lebanon has expanded cooperation with major global technology companies. Agreements with Microsoft and Oracle aim to enhance digital skills and support technological development. Microsoft’s partnership focuses on supporting start-ups and providing artificial intelligence (AI) training, with hopes of reopening its Beirut offices. Meanwhile, Oracle has committed to training 50,000 Lebanese citizens in digital and AI-related skills, marking one of the most significant collaborations between a major US technology firm and a Lebanese government institution in more than 2 decades.

Digital transformation as a national priority

Despite ongoing security challenges and economic reforms, Lebanese authorities consider digital transformation essential to long-term stability. Shehadi stressed that technology development is not simply a modernization effort but a national necessity. Financial systems, border management and regulatory compliance increasingly rely on advanced digital infrastructure. Without continued investment, he warned, Lebanon risks falling behind in an increasingly technology-driven global economy.

In conclusion, Lebanon’s expected Gulf investment in its digital sector reflects a broader strategy to rebuild the economy through innovation, international cooperation and private-sector partnerships. By leveraging its human capital and entrepreneurial strengths, Lebanon aims to secure long-term economic resilience. While challenges remain, the country’s focus on digital transformation signals a forward-looking vision that could play a decisive role in shaping its future development and regional competitiveness.