Middle East reconstruction costs to top $300B

Lebanese displacement crisis

Mitri told the panel that Israel's occupation of Lebanese territory is continuing and that attacks have rendered numerous villages uninhabitable. He identified the plight of displaced people as one of the country's most pressing challenges, noting that infrastructure must be repaired to enable families to return and rebuild their lives. He added that however devastating these conflicts may have been for Lebanon and however much they may have divided its society, recovery and rebuilding are always possible.

Hundreds of billions needed

Former OECD Secretary-General Angel Gurria outlined the staggering financial requirements for regional reconstruction, estimating that Lebanon would need approximately $20 billion while Gaza would require at least $75 billion and Syria roughly three times that amount. He stressed that the financial burden could not be shouldered by a single country or institution, adding that multilateral and regional development banks must join the US, the EU, Gulf countries and national governments in funding recovery. Gurria emphasized that sharing financial risks is essential and that Gulf capital could play a particularly significant role in the region's economic rehabilitation.

Energy risks for Europe

European Policy Centre Chief Executive Fabian Zuleeg warned that the impact of Middle East instability on global markets depends largely on the duration of the conflicts, noting that energy prices are already creating economic challenges across Europe. Although supply restrictions have not yet emerged, he said prolonged instability could eventually lead to shortages that compound existing pressures from sluggish growth and high inflation. Zuleeg added that disruptions to trade routes and the simultaneous developments in the Middle East and the Russia-Ukraine war are fundamentally reshaping Europe's economic and security policies.

Private debt concerns

University College London Honorary Professor Steve Keen argued that the global economy places excessive emphasis on public debt while overlooking private-sector borrowing, which has surged from 55% to 155% of gross domestic product over the past 70 years compared to a rise from 63% to 75% for public debt. He noted that conventional economic policies have largely ignored these growing risks, which represent a main underlying driver of financial instability. Keen also said that speculative activities in the private financial sector and its financing of the military-industrial sector pose significant risks to the global economy.