IMF-led coalition targets
Lebanon, Syria, Palestine

Initiative to focus on war-torn countries

A newly formed international coordination group, spearheaded by the International Monetary Fund (IMF), World Bank, and Arab financial institutions, has placed Lebanon, Palestine, and Syria at the center of its economic support efforts.

The initiative, announced at the AlUla Conference for Emerging Market Economies in Saudi Arabia, aims to provide more structured financial and technical assistance to fragile economies in the region.

Jihad Azour, the IMF’s Middle East director, pointed to the group’s commitment to regional collaboration. He said that this initiative is defined by its partnership with the region. The coalition brings together global development banks, regional institutions such as the Islamic Development Bank and the Arab Monetary Fund, and key international players including the Gulf countries and the G7.

Lebanon’s Role and Challenge
Lebanon, long plagued by economic instability and governance failures, stands to benefit from the coalition’s enhanced coordination efforts. The IMF’s Middle East Technical Assistance Centre, based in Beirut, will play a crucial role in implementing reforms and capacity-building programs.

Azour highlighted the importance of strengthening Lebanon’s financial governance by training civil servants at the Central Bank and the Ministry of Finance. He said that there is a need to develop expertise in core state functions—statistics, fiscal management, and financial oversight—and most of those experts must be Arabic-speaking, indicating that regional knowledge is essential for effective policy implementation.

With its newly established regional office in Riyadh, the IMF is positioned to work more closely with Lebanon’s financial institutions, aligning international aid with local economic recovery initiatives. The coalition aims to ensure that assistance is not merely financial but contributes to structural improvements in governance and economic stability.

Aiding Fragile Economies
Beyond Lebanon, the initiative is set to address Syria’s post-conflict reconstruction and Palestine’s economic needs. Syria, where governance structures remain weak, faces challenges similar to those encountered by former Soviet states after the collapse of the USSR, according to Azour. For Palestine, the focus remains on rebuilding war-torn Gaza, which, according to UN estimates, will require over $53 billion for reconstruction. The IMF is in regular consultations with the Palestinian Authority and supports policy development and capacity-building efforts within the Palestinian Monetary Authority.

Expanding the Reach
The informal coalition plans to widen its network at the 2025 Spring Meetings of the IMF and World Bank in Washington, with potential new partners from the Gulf and the United Nations. Future expansions may include Yemen and Sudan, depending on the stability of their political and economic conditions.

The initiative comes amid growing concerns over declining global aid contributions, especially as major donors like the United States reassess their foreign aid policies. By leveraging regional cooperation and technical assistance, the coalition seeks to provide a more sustainable model of economic support for Lebanon and its neighboring countries.

As Lebanon grapples with ongoing economic hardship, the success of this coalition may play a pivotal role in determining its financial future.