UAE investment push incentivizes Lebanon to break from Iran, Hezbollah, analyst tells 'Post'

The United Arab Emirates’ recent investment push in Lebanon will help incentivize Beirut to “steer away from” Iranian and Hezbollah influence, Dr. Ahmed Alkhuzaie, a Middle Eastern political analyst, told The Jerusalem Post on Sunday.

The UAE’s Foreign Trade Minister, Thani bin Ahmed Al Zeyoudi, led a delegation of more than 80 prominent figures to Lebanon last week, where an intergovernmental memorandum of understanding was signed to strengthen bilateral relations, the two countries’ foreign ministries confirmed. During the high-profile visit, Lebanese President Joseph Aoun and Zeyoudi reportedly focused on advancing bilateral economic cooperation, with plans for the UAE to expand trade and investment in Lebanon’s private sector.

The countries signed the intergovernmental memorandum of understanding on Thursday, following the opening of the Lebanon-UAE Economic Forum on Wednesday, where five additional agreements were also initialed.

“Lebanon is pursuing a new phase of economic renewal, and the UAE stands ready to be a partner in that journey,” Zeyoudi said. “By strengthening trade flows, encouraging investment partnerships and formalizing channels of business-to-business engagement, we are beginning a new chapter in bilateral relations and building a solid foundation for sustainable growth that will benefit both nations.”

Though the countries already enjoy a degree of economic cooperation, with non-oil trade reaching $4.2 billion in 2025, a 35.6% increase compared to 2024, the timing of the agreement is significant as it comes at a key juncture for Beirut.

Trade, investment expansion encourages Lebanon to seek alternatives to Iran

Having been dragged into multiple wars by Iran-backed Hezbollah, an expansion of trade and investment while Lebanon is still rebuilding after the latest conflict could help encourage Beirut to continue to seek alternatives to Iranian support.

“Security and investment go hand in hand, but as long as there is will and genuine intent, challenges will not be an obstacle,” Aoun told Zeyoud, according to the UAE’s Foreign Ministry.

Notably, the UAE recently cut financial ties with Iran, ending all trade, commerce and money transfers with Tehran in response to months of aerial attacks launched by Iran against the UAE.

“It is a good incentive for the Lebanese government, as well as a good drive for them to steer away from Iran’s and Hezbollah’s influence and work on the disarmament process,” Alkhuzaie told the Post. “If it’s part of a new strategy, or a continuation of an existing one that will make things faster, then it makes total sense on both the economic and political sides.”

Security concerns behind UAE investment push

Members of the delegation have also told international media that security concerns were among the factors behind the investment push.

Mohamed Yusuf Adam, vice president of the National Pulse investment conglomerate in the UAE and a member of the delegation, told The National that business leaders were encouraged “to focus on the economic aspects, to focus on improving the situation more than focusing on waiting until the crisis is resolved or waiting on other ideas.”

Members of the economic forum also told the site that they were reassured by the fact that Beirut had “regained its sovereignty” by banning Hezbollah from holding arms.

Though Alkhuzaie stressed that Israel had not been striking areas likely to be of interest to UAE investors, he acknowledged that fewer or no Israeli attacks would help safeguard investments in the short term. In the long term, he continued, Iran would also face greater difficulty rebuilding its influence in Lebanon if the country becomes more economically integrated with the Gulf state repeatedly attacked by Iran.