Economy
Saudi Arabia lifts 5-year Lebanese import ban
After years of curbs, Saudi Arabia’s authorities have reopened the kingdom’s market to imports from Lebanon, lifting a five-year ban, a statement by the official press agency indicated.
According to the Saudi Press Agency (SPA) on Wednesday evening, Riyadh justified the move by citing the encouraging measures taken by the Lebanese government to strengthen state institutions.
The import ban severed access to one of Lebanon’s most important export markets and put particular pressure on the Lebanese agricultural sector.
“This is a real turning point,” Ibrahim Tarshishi, chairperson of the farmers’ association in Lebanon’s eastern Bekaa Valley, told Deutsche Presse-Agentur (dpa).
He said the focus would now be on creating the practical conditions for resuming exports and resolving outstanding issues such as transit visas for truck drivers. “We have waited five years for such a decision,” he added.
Saudi Arabia halted imports of fruits and vegetables from Lebanon in 2021. The kingdom’s authorities justified the move at the time by citing an increase in attempts to smuggle drugs, allegedly by the Hezbollah militia, into the country via agricultural shipments.
Lebanese President Joseph Aoun welcomed the decision, describing it as an expression of Saudi support for Lebanon, intended to strengthen the economy and further solidify relations between the two countries.
In the wake of the war between Israel and Iran-backed Hezbollah, the government in Beirut aims to curb Iranian influence in the country. Observers see Saudi Arabia’s decision as an important step in supporting the Lebanese government.
The German economy is expected to recover more slowly than expected as rising energy prices following the start of the U.S.-Iran war weigh on households, companies, and exports, the Kiel Institute said in its summer 2026 forecast published Thursday.
The institute expects real gross domestic product (GDP) to grow by 0.8% in 2026 and 1.0% in 2027, cutting its 2027 forecast from 1.4% in the spring.
It said the recovery would be supported by expansive fiscal policy, especially public consumption and investment, but held back by higher commodity prices, weak competitiveness and subdued business investment.
Inflation is forecast to accelerate to 2.8% in 2026 from 2.2% in 2025, before easing to 2.3% in 2027.
The institute said higher oil and gas prices were reducing purchasing power and keeping price pressures elevated.
Private consumption is expected to grow only 0.3% this year and 0.4% next year, while exports are seen rising 1.8% in 2026 and 1.6% in 2027.
The labor market is expected to improve only gradually, with unemployment forecast at 6.3% in 2026 and 6.2% in 2027.
U.S. President Donald Trump brushed aside concerns over rising consumer prices on Wednesday, saying he “loved” the latest inflation figures and expressing confidence that inflation would ease once the conflict involving Iran comes to an end.
Asked about U.S. government data showing consumer inflation increased at its fastest pace in three years in May, and whether it could hobble his fellow Republicans just months ahead of November’s midterm election, Trump said: “I love the inflation.”
The president then explained how he greenlit a plan to secretly move oil tankers through the Strait of Hormuz over concerns of higher costs and increasing inflation. “It was worth it to me,” Trump said about his calculus and calling the operation a success. “When it’s over, you will see oil drop to where it was before,” Trump said of the larger war. “It’s coming down. It’s going to come down like a rock.”
Trump has called the war on Iran a detour and framed it as a national security issue as Tehran’s closure of the key shipping route has pushed up the cost of gasoline, fertilizer and other goods, contributing to inflation.
Higher prices could also keep the U.S. Federal Reserve from cutting interest rates, which could lower borrowing costs, which Trump has called for since returning to power last year. Republicans are seeking to maintain control of the U.S. House of Representatives and the Senate but are concerned a consumer backlash could hand the reins to Democrats as the cost of living remains a top issue for voters.
Trump himself won the 2024 presidential election in large part because of his promise to lower inflation, but has since seen his approval rating, including on his handling of the cost of living, fall to the lowest level of his political career.
Efforts to reopen the Strait of Hormuz to tanker traffic to move goods have so far stalled, with industry executives and analysts warning that coming weeks could see another oil price shock severe enough to shake the broader financial markets.
Even if Trump and Tehran reach a deal soon, it is expected to take months to get supplies moving, with the disruptions expected through 2026. And while Americans may be more insulated from fuel shocks than other nations, ongoing higher energy prices could dent consumer spending over time.
Last month, Trump said Americans’ financial struggles were not a factor as he pushed for a deal even while threatening renewed attacks on Iran: “I don’t think about Americans’ financial situation. I don’t think about anybody. I think about one thing: We cannot let Iran have a nuclear weapon.”
Turkish Airlines (THY) on Wednesday reported the highest occupancy rate ever recorded for the month of May, as its passenger count rose despite challenges amid the Middle East conflict.
National flag carrier served 7.9 million passengers last month, a 3.7% increase from a year ago, it said in a statement.
It achieved an 84% load factor, the highest ever May rate that marked a 2.9% year-over-year rise.
The airline increased its capacity, measured in available seat kilometers (ASK), by 2.5% compared with the same month a year earlier.
International load factor stood at 84%, while domestic flights recorded a load factor of 84.4%.
Total available seat kilometers rose to 23.2 billion in May from 22.6 billion a year earlier. Cargo and mail volumes increased 8.6% year-over-year to 203,100 tons.
From January through May, THY carried 36.4 million passengers, up 7.3% from the same period last year.
Overall passenger load factor for the five-month period reached 83.6%, with international routes posting 83.5% and domestic routes 84.3%.
Capacity during the five-month period increased 6.5% year-over-year to 112.1 billion available seat kilometers from 105.3 billion.
Cargo and mail traffic rose 13.5% to 954,600 tons during the period.
Its fleet included 542 planes as of the end of May, a figure is aimed to be expanded to 800 aircraft under the company’s 2033 strategy.
THY’s Chair of Board Murat Şeker said on Monday the airline plans to add ultra-long-range aircraft from late 2027 that would enable nonstop services to destinations in Australia and South America.
The carrier has orders in place for nearly 420 aircraft, including Airbus and Boeing jets, with negotiations continuing for an additional 100 Boeing planes.
Global airlines are grappling with higher fuel costs driven by the U.S. and Israel’s war with Iran, which has choked jet fuel supplies and disrupted key air corridors, forcing costly detours.
But Şeker said THY has not faced fuel supply challenges and has been less affected than some Asian markets.
The Iran conflict has upended traffic flows through Middle Eastern hubs such as Dubai, Doha and Abu Dhabi, creating acute challenges for Gulf carriers including Emirates, Qatar Airways and Etihad.
Disruptions provided THY with an opportunity to attract new passengers from South Asia, the Far East, the Maldives, Seychelles and North America.
But, Şeker said “only time will tell whether this turns into a real and lasting opportunity in the long term,” noting that major Gulf carriers have largely restored their pre-crisis capacity levels.
THY had budgeted for capacity growth of 7%-8% this year but Şeker said it now expects expansion of only 1%-2%.
Türkiye has secured 200 million euros (more than $230 million) in financing from the European Investment Bank (EIB), marking the lender’s first major funding package for the country after an eight-year break, the Treasury and Finance Ministry said on Tuesday.
The funding will be provided under two separate deals backed by a Treasury repayment guarantee. Half of the amount, 100 million euros, will go to the Türkiye Development and Investment Bank (TKYB) to support sustainable industrial investments, while the remaining 100 million euros will be channeled through Türk Eximbank for green financing projects aimed at exporters.
The funds are intended to back investments in renewable energy, energy efficiency and sustainable industrial production, in line with Türkiye’s climate targets and broader green growth strategy.
With the latest agreements, the total amount of external financing secured by Türkiye this year has reached $4.9 billion.
Treasury and Finance Minister Mehmet Şimşek said the EIB’s support for Türkiye’s development priorities was expanding through close cooperation between the two sides.
“The positive momentum in Türkiye’s relations with the European Union is beginning to produce tangible results in external financing,” Şimşek said.
He noted that, excluding a loan provided for post-2023 earthquake reconstruction efforts, the EIB had resumed offering financing opportunities to Türkiye after an eight-year pause.
The EIB had stopped virtually all lending in Türkiye after a row over oil and gas drilling off the island of Cyprus in 2019.
It formally returned to the country this year.
TKYB CEO Ibrahim Öztop said the last financing agreement with the EIB had been signed in 2017, describing the latest deal as a sign of confidence in Türkiye’s economy, transformation agenda and long-term growth potential.
“The 100 million euros financing package will support investments in renewable energy, energy efficiency and green industry, helping Turkish companies improve productivity, strengthen competitiveness and adapt to a changing global economy,” Öztop said.
Türk Eximbank CEO Ali Güney said the funding would support exporters’ projects aimed at expanding renewable energy use, improving energy efficiency and reducing carbon emissions.
He added that the financing would help Turkish exporters adapt to the European Union’s Carbon Border Adjustment Mechanism (CBAM), a key requirement for maintaining access to European markets.
‘New chapter’
EIB Vice President Robert de Groot said the two credit facilities would provide financing to small and medium-sized enterprises (SMEs) across Türkiye, supporting energy-efficiency and renewable-energy projects while helping strengthen supply chains, reduce emissions and create green jobs.
De Groot described the agreements as the beginning of “a new chapter” in cooperation between the EIB and Türkiye’s banking sector.
During meetings with government officials in Ankara, De Groot said they discussed expanding cooperation in areas including sustainable transport, clean energy and water infrastructure.
He noted that Türkiye was well positioned to advance its green and resilient growth ambitions, and said the EIB stands ready to support that journey.
Flag carrier Turkish Airlines (THY) was once again recognized as the country’s most valuable brand, according to a report by international brand valuation organization Brand Finance on Wednesday.
According to the “Türkiye 125” survey, Turkish Airlines reclaimed first place in 2026, as in previous years, with a brand value of $2.884 billion (TL 133.06 billion).
Household appliances maker Arçelik claimed the second spot with $1.989 billion, while private lender Iş Bank maintained its third place with $1.243 billion.
Ford Otosan, which was fifth last year, rose one spot to fourth place with a brand value of $1.037 billion. State lender Ziraat Bank also climbed to fifth place with a brand value estimated at some $958 million.
This year, 13 new brands were included in the list. Alfa Solar, ATP, Baykar, Besler, Çelebi Aviation, Datagate, e-Bebek, Karaca, Karel, Koçtaş, Ray Sigorta, Trabzonspor, and Yudum entered the ranking.
Brand Finance Türkiye Director Muhterem Ilgüner, in an assessment shared with Anadolu Agency (AA), noted that they are celebrating their 20th anniversary this year and suggested that the total value of the 125 brands increased by 15% compared to last year, rising from $17 billion to $19.6 billion.
Ilgüner pointed out that for the second consecutive year, there has been an increase in total value.
“Aviation and defense, financial services, and electronics and ready-to-wear brands with activities abroad have positively influenced the total brand value,” he said.
“Banking services constitute 23% of the total brand value, while airline and electronics brands make up 15%,” he added.
Moreover, he pointed out that renewable energy brands have begun to find a place on the list.
“An important observation over the years is that revenue generated abroad and in relatively stable country markets has a positive impact on brand value calculation. Therefore, the spread, acceptance, and strengthening of Turkish brands abroad will have a positive effect on their brand values,” he further said.
Emphasizing that the Turquality Project is an exemplary initiative launched for this purpose, Ilgüner explained that today, this support program has nearly 500 member brands, and its outcomes should be evaluated not just in terms of export success but as brand success.
Murat Şeker, the chairperson of the board of Turkish Airlines, stated that THY’s top position once again in the report prepared by Brand Finance is a significant indicator of stable growth and a strong brand strategy.
By increasing its brand value by 27% compared to the previous year, reaching $2.9 billion, the carrier has preserved its status as the country’s most valuable brand for the ninth consecutive time. Additionally, it also continued to rise in the global airline brand rankings, reaching 15th place among the world’s most valuable airlines, marking its best achievement to date.
“To be recognized as Türkiye’s most valuable brand without interruption for nine years and to increase our brand value by 27% to $2.9 billion is a significant indicator of the stable growth and strong brand strategy we have demonstrated. As Turkish Airlines, we will continue to add value to our country and proudly carry our flag in the sky by focusing on service quality and sustainable growth,” Şeker said.
Chinese automaker BYD has put a factory it planned to build in Türkiye on hold while it focuses on production in Europe, a top executive said on Tuesday.
BYD said in 2024 it would invest $1 billion to build a plant in Türkiye that would start production this year.
China’s No. 1 automaker currently does not have a timeline for starting production in Türkiye, Executive Vice President Stella Li told Reuters at the company’s U.K. headquarters in west London.
The factory in Manisa, western Türkiye, was planned to have an initial annual capacity of 150,000 cars.
Türkiye has long served as a low-cost manufacturing hub for major automakers, including Toyota, Stellantis, Ford, Hyundai and Renault.
Last year, the Turkish government said BYD rival Chery would invest $1 billion in a plant with an annual production capacity of 200,000 vehicles.
BYD’s Li, meanwhile, said the company would start assembling cars at its new plant in Hungary in the fourth quarter of this year.
“Hungary is the number one priority right now,” she noted. “The second priority will be to focus on finding a second (production) facility in Europe.”
The start of production comes about a year later than originally expected. Li said last September the plant in Szeged in southern Hungary – BYD’s first factory in Europe – would start producing the Dolphin Surf compact electric car by the end of 2025.
Used to speed at home in China when it comes to building new factories, BYD and Chery have experienced delays in Europe.
Chery has pushed back the start of production at a plant in Barcelona a number of times, but says the joint venture with Spanish carmaker Ebro will start making vehicles in 2026.
Li said BYD was still installing equipment at the factory.
BYD’s sales in Europe grew 270% last year to almost 188,000 vehicles. European sales at the world’s largest electric vehicle maker rose 144% year to date through May this year to over 100,000 units.
Building EVs in Europe would help BYD avoid European Union tariffs on Chinese-made electric cars.
Many of the cars made in Türkiye are also destined for Europe and face no tariffs when exported to the EU.
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