Qatar Commits Hundreds of Millions to Revive Lebanon’s Power Sector and Support Security and Refugee Returns

BY EMMANUEL OGBONNA 

Qatar on Monday announced a sweeping package of investments in Lebanon worth hundreds of millions of dollars, aimed at rehabilitating the country’s long-deteriorating electricity sector while continuing financial and logistical support for the Lebanese armed forces and the return of Syrian refugees to their homeland.

The pledge was unveiled in Beirut by Qatar’s minister of state for foreign affairs, Mohammed bin Abdulaziz Al-Khulaifi, following meetings with Prime Minister Nawaf Salam and President Joseph Aoun. The funding will be channeled through the Qatar Fund for Development and is intended to address some of the most acute challenges facing Lebanon as it struggles to emerge from years of economic collapse and political instability.

Al-Khulaifi said Qatar would provide a $40 million grant to Lebanon’s electricity sector, alongside an additional $360 million earmarked for power-related projects expected to benefit around 1.5 million people. The announcement marks one of the most significant foreign-backed efforts in recent years to tackle Lebanon’s chronic electricity shortages, which have crippled daily life and the broader economy.

Lebanon has been working to mend ties with wealthy Gulf states after years of strained relations, largely driven by the outsized political and military influence of Hezbollah. That dynamic has shifted in recent months after the Iran-backed group was weakened by a 14-month conflict with Israel, prompting renewed diplomatic outreach and calls from Hezbollah itself for a reset in relations with regional powers, including Saudi Arabia.

Qatar has long been viewed in Beirut as a comparatively friendly Gulf partner and has frequently played the role of mediator in both domestic political disputes and regional crises involving Lebanon. Doha is also a stakeholder in international consortia exploring Lebanon’s offshore gas blocks, giving it a strategic interest in the country’s stability and energy future.

Lebanon has been mired in a historic financial crisis since late 2019, following decades of corruption, mismanagement and unsustainable public spending by successive governments. Few sectors illustrate the depth of the dysfunction more starkly than electricity. The state-owned power utility has accumulated losses estimated at roughly $40 billion over the years, burdened by outdated infrastructure, chronic fuel shortages and an inflated payroll.

Despite consuming vast public resources, the utility provides only a few hours of electricity per day to most parts of the country. Until last year, the state regularly resorted to advances from the central bank to purchase diesel when fuel supplies ran out, further aggravating the financial collapse. As a result, households and businesses have become heavily dependent on costly private generators, a system that has fueled pollution and widened social inequality.

Previous attempts by Qatar and other international partners to reform or stabilize the electricity sector failed to produce lasting results, largely because of entrenched corruption and political paralysis. This time, Lebanese officials say conditions may be different. President Aoun, elected last year, and Prime Minister Salam, appointed recently, have publicly pledged to confront corruption and restore basic governance to key state institutions.

Beyond energy, Al-Khulaifi said Qatar would help facilitate the return of Syrian refugees from Lebanon, beginning with an initial group of 100,000 people at an estimated cost of $20 million. He said those returning would be guaranteed appropriate housing in Syria, along with financial support covering food and medical needs for a three-month period. According to Al-Khulaifi, the Syrian government, which maintains close ties with Doha, will cooperate to ease the process.

Lebanon’s minister of social affairs, Haneen Sayed, said earlier this month that around half a million Syrian refugees returned to Syria in 2025. Syria’s war, now in its 14th year, displaced roughly half of the country’s prewar population of 23 million. Lebanon has hosted an estimated 1.5 million Syrians, many of whom entered the country informally and were never registered with the United Nations, at one point accounting for nearly a quarter of Lebanon’s total population.

The presence of such a large refugee population has placed immense strain on Lebanon’s fragile economy and infrastructure, becoming an increasingly sensitive political issue amid rising poverty and unemployment among Lebanese citizens.

Al-Khulaifi also reaffirmed Qatar’s continued support for the Lebanese armed forces, describing the military as the cornerstone of national stability. He said Doha’s decision reflects its conviction that a strong, unified army is essential for maintaining security and preventing further deterioration in a country still grappling with the aftermath of war, economic collapse and regional tensions.

The announcements underscore Qatar’s expanding role in Lebanon at a moment when Beirut is seeking external support to stabilize its institutions and rebuild trust with international and regional partners after years of isolation and decline.