Key facts
- Lebanese creative professionals are experiencing a downturn in work and funding due to economic pressures in Gulf economies.
- The ongoing regional war has led Gulf clients to postpone projects, reduce budgets, and slow payments.
- Fashion school Creative Space Beirut (CSB) faces financial instability as Gulf donations have decreased.
- Economists report downgrades in key indicators for Gulf economies, including GDP growth and stock market performance.
- Lebanese advertising and communications firms have seen revenue drops and layoffs.
- Professionals are struggling to collect payments from Gulf clients, with some facing significant income loss.
Lebanese creative professionals are experiencing a significant downturn in work opportunities and funding as Gulf economies face economic pressure exacerbated by a nearly six-month-old regional war. For decades, the Gulf served as a primary destination for Lebanese talent in design, marketing, and communications, offering clients and financial support through foundations and cultural centers.
However, uncertainty linked to the ongoing conflict has prompted Gulf-based clients to postpone projects, reduce budgets, and delay payments. This has led to layoffs and a decline in income for many Lebanese professionals. Fashion school Creative Space Beirut (CSB), which relies on Gulf donations to offer free courses to underprivileged students, has seen its funding prospects diminish as Gulf-based donors have entered 'survival mode,' according to co-founder and CEO Sarah Hermez. Promises of support have not been met, and existing contributions have been downsized, putting student scholarships at risk.
Economists note that Gulf economies are expected to contract more sharply than previously anticipated, with key indicators such as GDP growth, aviation traffic, stock market performance, and fiscal balances showing downgrades. Marwan Barakat, chief economist at Bank Audi, confirmed these trends. While Lebanese have long relied on salaries earned in the Gulf for remittances, fears are rising about reduced financial support for families back home.
Advertising and strategy consultancy owner Wassim Haddad estimates a 70% hit to his firm's revenues, forcing him to cut his staff by half. He noted that clients outside the region struggle to navigate business operations amidst the ongoing conflict. Several professionals, speaking anonymously, reported that Gulf clients are now seeking discounts on projects that previously commanded higher fees. One branding professional mentioned a client in Saudi Arabia cut his pay, while a Qatari client indicated they could no longer commit to new projects. Another communications professional reported a 30% drop in projected income, expressing concern about her financial future.
Kim Heshme, head of operations at CSB and a freelance branding expert, has seen her income drop by approximately 60% due to the drying up of freelance work. She has also faced difficulties collecting fees for completed projects, with some clients paying only a fraction of what is owed or ignoring invoices. Heshme observed that Gulf clients seem less accustomed to operating through prolonged periods of uncertainty compared to their Lebanese counterparts, suggesting a reluctance to pay for the value of creative ideas.