World Bank backs Lebanon with $350M boost

On 27 January 2026, The World Bank approved a new financing package of $350 million aimed at supporting Lebanon’s fragile economic recovery and improving public service delivery through social protection and digital transformation.

The funding, approved by the Bank’s Board of Executive Directors, targets the country’s most vulnerable populations while promoting economic inclusion, strengthening social safety nets and accelerating the digitalization of key government services.

Amid persistent economic, social and political crises, this package represents a significant effort to address Lebanon’s multidimensional challenges.

Strengthening social protection

The first component of the financing, the Social Safety Net Enhancement and System Building Project, is allocated $200 million. It is designed to provide cash transfers to poor and vulnerable households while expanding access to economic opportunities and social services, with a particular focus on women, youth and marginalized groups.

A central feature of the project is the enhancement of the DAEM platform, which supports the AMAN cash transfer program, allowing it to function as a comprehensive national social registry. This integrated approach not only facilitates direct assistance but also strengthens institutional capacity to manage social programs effectively and sustainably. Additionally, the project stresses shock preparedness, regular recertification of beneficiaries and an increase in domestic budget allocations for social protection programs.

Jean-Christophe Carret, World Bank Division Director for the Middle East, highlighted the importance of this initiative, stating: “Lebanon is witnessing a fragile recovery. The World Bank’s new financing package is designed to deliver broad, high-impact benefits across society by advancing social protection, economic inclusion, and digital transformation.”

Accelerating digital transformation

The second component, the Lebanon Digital Acceleration Project, will receive $150 million and focuses on enhancing citizens’ access to essential government services and economic opportunities. The project will empower businesses and entrepreneurs by creating a secure digital environment and expanding market access, while improving government efficiency through advanced data management and digital platforms.

Key initiatives include the development of secure digital infrastructure, investment in national cybersecurity and strengthening legal and institutional frameworks to support a trusted, inclusive digital transformation. The project will pilot the digitalization of selected public services, aiming to improve government transparency, operational efficiency, citizen benefits, and climate resilience.

Addressing Lebanon’s multidimensional crises

Lebanon has been grappling with severe economic decline, political instability and the aftermath of regional conflicts, including the 2023-2024 armed conflict between Israel and Hezbollah, which inflicted an estimated $14 billion in damage. These crises have worsened poverty, food insecurity and access to healthcare, while straining public institutions and limiting the state’s ability to deliver essential services.

The World Bank financing complements recent international support, including more than $430 million announced by Qatar to address Lebanon’s chronic power shortages and stabilize key sectors. Together, these initiatives aim to bolster Lebanon’s recovery, enhance human capital and restore confidence in public institutions.

In conclusion, The World Bank’s $350 million financing package represents a critical step toward strengthening Lebanon’s social protection system and advancing digital governance. By targeting vulnerable populations, promoting economic inclusion and improving public service delivery, these projects aim to provide immediate relief while supporting long-term institutional development. As Lebanon navigates its complex recovery, international support through initiatives like these will be crucial in fostering economic stability, enhancing citizen well-being and accelerating the country’s digital transformation.