Gulf Funds Hezbollah’s New Path as U.S. Envoy Pushes $ Billion Plan

U.S. envoy Tom Barrack announced that Saudi Arabia and Qatar have committed to funding a major economic initiative in southern Lebanon to provide jobs for approximately 40,000 Hezbollah fighters and supporters, contingent on their disarmament. The plan, aimed at transitioning Hezbollah members from Iranian-backed militancy to civilian livelihoods, comes as Lebanon’s cabinet prepares to review a military-led disarmament proposal on September 2, with the Lebanese army finalizing details by August’s end. “We have to have money coming into the system. The money will come from the Gulf,” Barrack stated after meeting Lebanese President Joseph Aoun in Beirut. “Qatar and Saudi Arabia are partners and are willing to do that for the south of Lebanon if we’re asking a portion of the Lebanese community to give up their livelihood.”

Barrack emphasized the economic challenge, saying, “We have 40,000 people that are being paid by Iran to fight. What are you gonna do with them? Take their weapon and say ‘by the way, good luck planting olive trees’? It can’t happen. We have to help them.” Lebanon’s July response to U.S. disarmament proposals, described by Barrack as a “spectacular” seven-page document, demands Israel’s full withdrawal from Lebanese territory, including Shebaa Farms, while agreeing to dismantle Hezbollah’s weapons south of the Litani River. However, it stops short of nationwide disarmament. Israeli Prime Minister Benjamin Netanyahu supported the move, noting that Israeli forces could withdraw from southern Lebanon if Hezbollah disarms. Yet, Hezbollah’s leader, Sheikh Naim Qassem, rejected these demands during Ashura commemorations, stating, “We cannot be asked to soften our stance or lay down arms while Israeli aggression continues.”

The initiative faces hurdles, as Lebanon’s army lacks the resources to enforce disarmament without significant aid. Previous Gulf reluctance to fund Lebanese institutions due to corruption concerns complicates matters. Barrack’s press conference also drew criticism after he told Lebanese journalists to “act civilized, act kind, act tolerant,” threatening to leave if it became “chaotic, like animalistic,” prompting Lebanon’s press syndicate to demand an apology. The conflict, which escalated in September 2024 and ended with a November U.S.-brokered ceasefire, left over 10,000 buildings damaged in southern Lebanon, per Amnesty International, with Israel maintaining five strategic points despite Hezbollah’s claim of withdrawing from the border.