Qatar has purchased Lebanese bonds in a planned $500 million investment in Lebanese debt, with the aim to support Lebanon’s struggling economy. The gas-rich country intends to make the rest of the $500 million investment in January, the official said. Following the news, Lebanon’s dollar bonds rallied on Friday, leading to a decrease in its yield.

Lebanon is one of the most indebted countries in the world. The debt has reached 150% of the country’s GDP and Lebanon spends almost half of its fiscal revenue paying interests on that debt. The country also faces a stagnant growth.

“Qatar has always been committed to strengthening its ties with the brotherly Lebanese Republic. Hence it decided to invest $500 million in the Lebanese economy, including purchasing Lebanese government bonds,”

a government official said.

Following the announcement that Qatar would inject $500 million in Lebanon’s economy, regional rival Saudi Arabia made a similar commitment just days after, although it has not followed up yet.

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Author

Ahmed Naser is a UK-based journalist with a deep understanding of the Middle East. Ahmed is a contributor to a wide range of regional publications in the Middle East. He works across print and digital media as a freelance editor and writer.

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