Saudi Press

Saudi Arabia and the world
Thursday, Oct 02, 2025

Beirut Port blast damage could exceed $20bn, fuelling funding concerns

Beirut Port blast damage could exceed $20bn, fuelling funding concerns

New research reveals the extent of the damage caused by the explosion that rocked Beirut on August 4

Economic damage caused by the Beirut Port explosion is likely to exceed $20 billion, according to a new study.

Strategy&, PwC's strategy consulting subsidiary, said that on top of the immediate devastation of the explosion, the event has also left a devastating crater in Lebanon’s already-crumbling economy.Adding to the damage to infrastructure, businesses, housing, cultural and social costs of the blasts, Strategy& estimates that the bill stands at around $5 billion.

This figure excludes damage to public infrastructure, such as the port buildings and roads, and indirect economic impacts, such as export and supply chain disruptions, which are estimated at some $15 billion.



The report found a significant shortfall in funding for the reconstruction of Beirut. Distrust over the country’s leadership and the global recession at hand mean Lebanon faces a massive funding gap, it added.

On August 4, a large quantity of ammonium nitrate stored in Beirut port exploded. Approximately 2,750 tonnes of highly flammable substance – commonly used in fertiliser, and the main component in many types of mining explosives – had been abandoned without proper safety measures for the previous six years, following its confiscation by Lebanese authorities from the abandoned ship MV Rhosus.

The disaster killed roughly 200 people, wounding 6,000 more, as the blast sent shock waves through Beirut’s industrial waterfront into densely populated residential and shopping districts.

With the country’s unemployment rate surging past the 30 percent mark and the embattled central bank facing an internal audit to try and foster trust with the IMF, the explosion could not have come at a worse time for Lebanon.



The report said the infrastructure repair bill will cost more than $3.1 billion including over $1.8 billion to help rebuild housing and $865 million to help nearly 31,000 businesses impacted by the blast.

It added that the social impact of the disaster will also accumulate a cost of $555 million, with an estimated 31,000 houses now uninhabitable and around 13,000 households needing shelter, something which comes with a funding requirement of $30 million for 18 months.

The destruction of the country’s food supply has also left 300,000 people in moderate to urgent need of food assistance, something which will cost $215 million for one year.



Around $920 million in revenue will be lost by businesses in the aftermath of the port blast (based on a one-year window), with Lebanon’s retail scene to face the biggest hit. Around 38 percent of the total will come from shopping, while with eight damaged universities, the lucrative education sector has also been badly impacted.

Medawar, Rmeil, Saifi and Marfaa districts are most in need of urgent assistance, according to Strategy&. Rmeil alone suffered $489 million in property damage, including 14,000 impacted households, and 1,100 buildings.

Funding gap


While Strategy&’s analysis echoes that of the World Bank to some extent, it goes further in estimating the funding of Beirut’s recovery.

Regarding housing, for example, the generosity of those sending aid has been dwarfed by the size of the problem at hand. The UNHCR donated $35 million to shelter and protect the most vulnerable Lebanese, refugees, and migrant households in the coming months. Over $2 million was raised by public crowdfunding campaigns – with ordinary people managing to match the amount given by some of the world’s wealthiest corporations such as Google, Facebook, P&G, Pepsi and Chanel.



Despite several donations such as tonnes of glass being donated by the UAE and Cyprus for repairs and hundreds of shelters offered by the Lebanese community and hotels, of the $1.8 billion in costs incurred by the explosion, only a tiny portion has been realised.

Similarly, the announced pledges to help boost food security in Lebanon are worryingly underwhelming. With $215 million needed, countries such as Canada, the US, the UK, Australia, Denmark and Hungary have mustered $25 million in foreign aid to help, while USAID has added another $7.5 million.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
Nvidia and Abu Dhabi’s TII Launch First AI-&-Robotics Lab in the Middle East
UK, Canada, and Australia Officially Recognise Palestine in Historic Shift
New Eye Drops Show Promise in Replacing Reading Glasses for Presbyopia
Dubai Property Boom Shows Strain as Flippers Get Buyer’s Remorse
Top AI Researchers Are Heading Back to China as U.S. Struggles to Keep Pace
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
UAE-US Stargate Project Poised to Make Abu Dhabi a Global AI Powerhouse
Trump and Starmer Clash Over UK Recognition of Palestinian State Amid State Visit
Saudi Arabia cracks down on music ‘lounges’ after conservative backlash
Saudi Arabia Signs ‘Strategic Mutual Defence’ Pact with Pakistan, Marking First Arab State to Gain Indirect Access to Nuclear Strike Capabilities in the Region
Sam Altman sells the 'Wedding Estate' in Hawaii for 49 million dollars
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
Kuwait opens bidding for construction of three cities to ease housing crunch.
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
Could AI Nursing Robots Help Healthcare Staffing Shortages?
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Did the Houthis disrupt the internet in the Middle East? Submarine cables cut in the Red Sea
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Tether Expands into Gold Sector with Profit-Driven Diversification
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
Israeli Airstrike in Yemen Kills Houthi Prime Minister
After the Shock of Defeat, Iranians Yearn for Change
YouTube Altered Content by Artificial Intelligence – Without Permission
Iran Faces Escalating Water Crisis as Protests Spread
More Than Half a Million Evacuated as Typhoon Kajiki Heads for Vietnam
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
×