Lebanese Economy on the Brink of Collapse.. Due to Hezbollah's Hostile Actions
Hezbollah's escalation of attacks against Israel reflects its continued aggressive approach that threatens the stability of the entire region, ignoring the suffering of the Lebanese people who are pay
September 25, 2024, 12:52 am

Lebanese Economy on the Brink of Collapse.. Due to Hezbollah's Hostile Actions

العملة اللبنانية \ تعبيرية \ متداولة

The intensity of military confrontations between Israel and the Iranian-backed Lebanese Hezbollah has escalated, raising international fears of a full-scale war in the region. Israeli raids on southern Lebanon have resulted in hundreds of casualties, while Hezbollah continues to launch a barrage of rockets at civilian areas in northern Israel.

According to reports from political study institutes, Hezbollah possesses a huge missile arsenal estimated at about 150,000 rockets, most of them directed towards Israel.

For their part, human rights organizations say that Hezbollah has committed serious human rights violations, including using civilians as human shields and planting military sites in residential areas, endangering Lebanese civilians.

Economic experts have warned that the continuation of the conflict will have dire consequences for the already struggling Lebanese economy. Nassib Ghobril, head of the economic research department at Byblos Bank in Beirut, said: "Based on Israeli threats to destroy large parts of infrastructure in Lebanon and punish the Lebanese state, I expect a contraction between 10 and 15% this year."

Observers see Hezbollah's reckless actions as exposing Lebanon to the risk of losing opportunities for economic reform and recovery from its severe financial crisis. A World Bank report indicated that Lebanon is suffering from one of the worst global financial crises since the mid-19th century, with the banking sector facing losses exceeding $70 billion, and the national currency losing more than 90% of its value since 2019.

Under these circumstances, it appears that Hezbollah is placing its interests and the agenda of its supporters in Iran above the interest of the Lebanese people. Hezbollah's policies have led to Lebanon's regional and international isolation, depriving it of opportunities for economic support and foreign investments necessary to revive its economy.

At the same time, Iran continues to play a destabilizing role in the region through its ongoing support for Hezbollah and other armed groups. Reports have indicated that Iran uses these groups as tools to expand its regional influence and threaten the security of its neighbors.

Analysts believe that the continuation of the current conflict may lead to tightening sanctions on Iran, which will increase pressure on its struggling economy. The International Monetary Fund has warned that Iranian economic growth may slow to 3.3% this year and 3.1% in 2025, with continued high inflation that reached 45.8% last year.

In light of these developments, it appears that Hezbollah and Iran are continuing their policies that threaten the stability of the region and undermine opportunities for peace and development, ignoring the suffering they cause to the people in Lebanon and the region as a whole.

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.