11・09・2025
Lebanese Shia in the Economy
A Parallel Entity Attracting Sanctions

Table of Content 

Introduction

Chapter One: Historical Introduction to the Mount Lebanon Mutasarrifate 

Chapter Two: The Economic Reality of the Shia Regions until the End of the Ottoman Era

1) Mount Lebanon

2) Bekaa 

3) Jabal Amel

4) The Beginning of Migration and Displacement Movements

5) World War I and The Famine

Chapter Three: The Economic Reality in the Shia Regions from the End of the Ottoman Era to the Beginning of the Civil War 

1) Bekaa

A- Traditional Agriculture

B- Hashish and Opium

C- Trade and Professions

D- Industry

2) The South

A- Agriculture

- Citrus Fruits

- Tobacco

B- Trade

- Trade with Palestine

- Maritime Trade

C- Industry and Services

D- Migration and Consequences

3) Southern and Northern Suburbs

4) The Shia and Banks

A- Beirut Riyadh Bank

B- Jammal Trust Bank

C- Bank Saderat Iran (Export Development Bank of Iran)

5) The Shia in Senior Positions

Chapter Four: The Economic Reality in Shia Regions during the Civil War

1) The South

A- Agriculture

B- Trade and Professions

C- Industry

D- Impact of Israeli Occupation

2) Bekaa

A- Traditional Agriculture

B- Hashish and Opium

C- Trade and Professions

D- Industry and Services

3) The Southern Suburb of Beirut 

4) Banks

5) The War Economy in Shia Parties

A- Amal Movement

B- Hezbollah

6) Emigration

Chapter Five: The Economic Reality of the Shia from the End of the Civil War to the Present Day

1) The South

A- Agriculture

B- Industry

2) Bekaa 

A- Traditional Agriculture

B- Hashish and Alternative Agriculture 

C- Industry

3) Beirut and the Southern Suburb

4) Banks

A- Jammal Trust Bank

B- Middle East and North Africa Bank (MEAB)

C- Fenicia Bank (Banque de la Méditerranée)

D- Beirut Riyadh Bank

E- Lebanese Canadian Bank (LCB)

F- Bank Saderat Iran (BSI) 

5) The Shia and Financial Institutions

6) Financial Collapse

7) From War Economy to Parallel Economy

A- Diverse Institutions of Hezbollah

- Central Labor Unions and Workers' Unit

- Independent Professions Unit

- Central Financial Unit

- Jihad Al Binaa Development Foundation

- Islamic Resistance Support Association

- Muslims Treasury (Bayt al-Mal) 

- Al-Qard Al-Hasan Association 

- Islamic Social Solidarity Fund

- Al-Wafaa Union for Workers and Employees in Lebanon

 

B- The Shia and Non-Governmental Organizations 

- Banin Charity Association

- German Associations

C- The Shia and “Ponzi” Schemes 

- Khalil Hassoon (Al Jawad)

- Salah Ezzedine

D- Al-Sajjad and Al-Nour Cards

E- Sources of Financing for Hezbollah

- Iran

- Al-Khums 

- Donations

- Commercial Networks

- Black Financing: Drugs, Captagon, and International Networks

F- Sanctions

Resources and References List

Conclusion

Introduction

The economy is a complex system of interconnected production, consumption, and trade activities that is specific to a nation, region, state, or community. It is also one of the most prominent pillars of any society, to the extent that there does not exist a society that seeks to achieve self-sufficiency and meet its essential needs, as well as to expand its trade with surplus production with other societies that do not have an economy. The economy reflects the strength of its society, the nature of its people's lives, and their level of prosperity. As it is impossible to separate the economy from politics, the relationship between them is a constant dialectic; the economy influences politics, and vice versa. 

With the historical emergence of Shiite communities in the current geography of Lebanon, these communities also developed local and reciprocal economic activities, similar to other groups in the country. The forms of these activities vary depending on the diversity of available or influenced intrinsic elements, and there emerges a  multiplicity of prevailing economic patterns in each era that include those that are  traditional, legitimate, and/or prohibited.. To shed light on this topic and its significance in understanding an aspect of the lifestyle of this sect, we have presented this research.

As for its temporal scope, it covers the period from the tenth century AD, when significant Shiite communities emerged in Lebanon, up to the present day. As for its spatial scope, it focused on the current geography of Lebanon within its international borders, with glimpses into several countries across continents.

In addition, another aspect to consider is the sources we resorted to in order to enrich this research. They are diverse, ranging from references, journalistic articles, journals, and both general and specialized websites. In light of this, we encountered difficulties regarding historical periods in the middle era due to the scarcity of information at times and its generality in other periods, especially given the limited availability of specialized works on the economic reality of Shiite communities. 

We also adopted the historical methodology by narrating information related to the subject within specific temporal and spatial boundaries. Additionally, we employed the descriptive approach, focusing on classification, statistics, and data analysis. 

The research is structured with an introduction, five chapters, and a conclusion. The first chapter addresses the economic reality of the Shiite community in Lebanon up to the Mount Lebanon Mutasarrifate phase in the second half of the nineteenth century. The second chapter presents their situation, reaching the conclusion of the Ottoman era in the second decade of the twentieth century. The third chapter covers the period from the disappearance of the Ottoman phase until the beginning of the civil war in 1975. The fourth chapter delves into the era of the civil war. As for the fifth chapter, it sheds light on the economic reality of the Shia from the end of the war in 1991 until today.

Through this research, we hope to have covered as much as possible of the economic history of the Shiite sect, which cannot be separated from their other aspects, including political and cultural aspects.

Conclusion

In conclusion, this research has meticulously delineated the economic reality of the Shia in Lebanon from the tenth century AD to the present day. The first chapter examines the community’s conditions in agriculture, industry, and trade, with a focus on the flourishing cities of Tyre (Sur) and Tripoli at that time, leading up to the Mount Lebanon Mutasarrifate phase, during which the major Shiite communities became concentrated in the Bekaa and Jabal Amel regions. The second chapter presents the Shia’s economic reality at the end of Ottoman rule: it addresses the beginnings of external migration, internal displacement movements, and the famine that struck the country, as well as the regions of Shiite concentrations during that period. The third chapter covers the economic situation of the Shia and their domains in the South, the Bekaa, and the southern suburbs of Beirut between the end of the Ottoman period in 1918 and the beginning of the civil war in 1975. It also addresses the increasing cases of internal displacement towards the suburbs of Beirut and the initial entry of the Shia into the world of banks and various government positions. The fourth chapter discusses their reality during the civil war, addressing the impact of the Israeli invasions and the role of the Shia diaspora in bolstering the community's economy. It also dives into the war economy adopted by the two Shiite parties, the Amal movement and Hezbollah. As for the final chapter which extended chronologically to the present day, it covers the fields of agriculture, industry, and trade, expanding into the realm of banks and financial institutions. It also addresses the parallel economy that gained strength after the financial collapse that hit Lebanon in 2019, along with its local and international repercussions, including sanctions targeting Shiite individuals and entities.

The research necessitated significant efforts due to its importance in shedding light on the economic reality of the Shia throughout history up to the present time. It required considerable effort, given the lengthy time span it covered and the absence of detailed materials on various periods. Additionally, it faced challenges in exploring aspects of the parallel economy that are not always clear, especially during the post-war period when the Shia deviated from traditional economic patterns in their parallel and partisan economy.

This research aimed to cover a significant portion of the posed challenges and serves as a future incentive for more detailed studies in this field. These subsequent studies could focus on narrower time periods or specific topics, shedding further light on them.