By SARAH EL DEEB – apnews.com — BEIRUT (AP) — A Lebanese DJ was days away from moving to Riyadh to play for a month in one of the newest entertainment centers in Saudi Arabia’s capital when a brief, polite Whatsapp message informed her that the contract won’t go through. The head of a Beirut-based communications agency had been negotiating to revive a two-year-old contract derailed by the pandemic for hundreds of thousands of dollars. After two days of silence her Saudi client, in an apologetic call, said now is not the time. A business owner who for years exported stationary to the kingdom had to return 20 containers of notebooks and paper ready for shipping to his warehouse outside of Beirut. “Please freeze everything,” Ziad Bekdache recalled the handlers telling him.
These are some of the victims of Saudi Arabia’s furious backlash against Lebanon in October after a Lebanese minister criticized its war against Iran-backed rebels in Yemen. At the root of the crisis is a years-old regional rivalry with Iran, and Saudi unease about the increasing clout of Lebanon’s Iran-backed Hezbollah group. Lebanon is caught in the middle. In response to the minister’s comments, Saudi Arabia recalled its ambassador and banned Lebanese imports ranging from chocolate to chemical products, which used to bring in about $240 million a year. The diplomatic crisis is causing anxiety among Lebanese, particularly those who work in Gulf countries, at a time when Lebanon is already enduring an unprecedented economic meltdown. “I felt bad, not just for my part, but for my country and for the expats,” said DJ Chloe. “We all have families abroad.”
Remittances from more than 350,000 Lebanese working and living in the Gulf have been essential, particularly as the meltdown drives up inflation and unemployment in the once middle-income country. The World Bank said remittances of over $6.2 billion, mostly from Gulf countries, made up 18.9% of Lebanon’s GDP in 2020, one of the highest in the world. While the dollar value of exports to Saudi Arabia has declined in past years, the kingdom had been a top importer of Lebanese products, including soap, printed books and some canned food.