NextFin news, BEIRUT — On Tuesday, U.S. Middle East envoy Tom Barrack revealed that Saudi Arabia and Qatar are prepared to invest in an economic zone in southern Lebanon near the Israeli border. This initiative aims to provide employment opportunities for members of the militant Hezbollah group and its supporters once they disarm, in line with the Lebanese government’s decision to disarm Hezbollah by the end of 2025.
Barrack made the announcement in Beirut following visits to Israel and Syria, where he discussed the ongoing situation in Lebanon with officials. The Lebanese government’s plan to disarm Hezbollah has been rejected by Hezbollah’s leader, who vowed to retain the group’s weapons.
Israeli Prime Minister Benjamin Netanyahu stated on Monday that Israeli forces might begin withdrawing from southern Lebanon after the Lebanese government’s decision to disarm Hezbollah. The U.S.-backed Lebanese army is preparing a disarmament plan expected to be ready by the end of August, with government approval anticipated during a meeting scheduled for September 2.
Addressing reporters after meeting Lebanese President Joseph Aoun, Barrack said, “We have to have money coming into the system. The money will come from the Gulf. Qatar and Saudi Arabia are partners and are willing to do that for the south (of Lebanon) if we’re asking a portion of the Lebanese community to give up their livelihood.”
Barrack highlighted the challenge of reintegrating approximately 40,000 Hezbollah fighters funded by Iran since the 1980s, stating, “What are you gonna do with them? Take their weapon and say ‘by the way, good luck planting olive trees’? It can’t happen. We have to help them.”
He added that the Gulf states, the U.S., and Lebanon will collaborate to create an economic forum to generate livelihoods for those affected.
When questioned about direct U.S. discussions with Iran regarding Hezbollah, Barrack responded, “You think that’s not happening? Goodbye,” and ended the news conference.
Regarding the United Nations Interim Force in Lebanon (UNIFIL), deployed since 1978, Barrack said the U.S. prefers funding the Lebanese army over UNIFIL and supports extending UNIFIL’s mandate for only one year during the upcoming U.N. vote in New York.
The announcement follows a low-level conflict between Israel and Hezbollah that escalated into war in September 2024, resulting in over 4,000 deaths and $11 billion in damages in Lebanon, according to the World Bank. The war ended in November with a U.S.-brokered ceasefire. Since then, Hezbollah claims to have ended its presence along the border, while Israel continues airstrikes targeting Hezbollah members.
Amnesty International reported on Tuesday that more than 10,000 buildings in southern Lebanon were heavily damaged or destroyed between October 2024 and January 2025. Israeli forces remain in several strategic points in the border area, with allegations of violations of international law concerning destruction of civilian property after active fighting ceased.
This development marks a significant step in efforts to stabilize southern Lebanon through economic investment linked to Hezbollah’s disarmament, involving key regional players Saudi Arabia and Qatar, under U.S. diplomatic facilitation.
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