Lebanon is abuzz with debate over the proposed “Trump Economic Zone” in the country’s south, after reports from Axios outlined plans for the project. While the government views the zone as a potentially transformative economic initiative, analysts and observers warn it raises questions about feasibility, security, and possible political motives.

Professor Anis Abu Diab, an economist and member of Lebanon’s Economic and Social Council, told Al-Anbaa that economic zones—whether free, industrial, or technological—can inject liquidity into markets, create jobs, and provide infrastructure to surrounding areas.

“In this case, a zone stretching from Naqoura to the Shebaa Farms could generate significant employment depending on the nature of the economic activity,” he said.

However, Abu Diab deemed it as crucial to understand the type of economic zone being proposed, expressing doubt that the zone would be a free economic zone exempt from customs duties.

“Will it be a free economic zone? I doubt it, because free zones are typically located at public facilities like airports, ports, or along borders between countries. Since there is no normalization with Israel, I doubt it would be a free zone, exempt from customs duties.”

He suggested the project could take the form of a technological or industrial zone, which would create jobs, attract new investment to the South, and raise the value of land and property.

“The South is rich in gas, so the zone could host processing facilities and enable the supply of oil and gas to Europe or local utilities,” he said.

Despite the significant economic potential, Abu Diab emphasized that “economic sustainability is paramount, especially "if this area remains a buffer or security-oriented economic zone."

"This will affect the nature of economic growth there,” he noted.

Security concerns, however, remain significant. Southern Lebanon has seen repeated Israeli strikes, raising doubts about the feasibility of a stable investment environment. Abu Diab emphasized the importance of clarifying the economic goals of the project and any political motivations behind it.

“Any economic zone should have positive effects on GDP and employment, generate new liquidity, attract foreign direct investment, and boost economic growth in the country,” he said.