Makhzoumi: “Lebanon must become a gas producer and, above all, an energy supplier”

Throughout his business career, having founded Future Pipe Industries, a member of the Trilateral Commission, and having founded the National Dialogue Party, you embody the image of a self-made man, but when you entered the political arena in Lebanon, you were considered an outsider. What economic benefits and opportunities do you believe Lebanon might gain from the current reconstruction of Syria? 

“The company I founded is now present on five continents and is one of the world’s largest firms in the sector, with production facilities in thirteen countries, and it is constantly expanding. After losing my son, in 2014 my three granddaughters asked me if I wanted them to return to Lebanon. At the time, I told them no because, given the way Lebanon was being run, I didn’t see it as a viable option for young people. Then I realised that you cannot prevent people from returning to their country; times change, and over the years Lebanon has always experienced change as a constant. And for this reason, I decided to enter politics in 2018 and was elected in my constituency. From my experience as an entrepreneur in various countries around the world, I have come to understand that Lebanon’s problems are similar to those of many other countries. Except that here there is a lack of political will, due to the ‘deep state’ which prevents change from taking root, because those who are part of the system benefit from the status quo. And I am not referring solely to Hezbollah; they are a militia that protects the mafia, which cuts across and is present in all the country’s sectarian divisions and within most of the political class. The only way to change things is to bring about change from within. We set about immediately by bringing together a group of MPs to launch the necessary financial reforms for the country. When the time came to elect the Prime Minister [who, according to constitutional custom, is Sunni], I was one of the three candidates. But I decided to withdraw in order to support the current Prime Minister, Nawaf Salam, thereby blocking the possible election of Najib Mikati, which would have handed control to Hezbollah. As for Lebanon and Syria, there are historical and economic ties that bind us. The current reconstruction of Syria, now led by President Al-Shaara, could certainly be supported by Lebanon [thereby also benefiting Lebanon]. However, to do this, Lebanon must first sign a peace agreement with Israel so that it can participate in the reconstruction of Syria first, and then Iraq. But we must change our tax regime for offshore companies in order to attract their investments. On this basis, I believe that Lebanon could be a major beneficiary of the reconstruction process in Syria.”

In the eastern Mediterranean, a not-so-silent competition is underway to secure energy resources, and this was already the case even before the war and the closure of the Strait of Hormuz. How do you view the strategic shift currently taking place with regard to water and energy resources in the eastern Mediterranean?

‘When the United States was still a net importer of energy, it was essential to be involved in global energy production. Today, however, as the United States is a net exporter of energy, energy supply is more important than production. Today, those who ensure the supply of energy benefit most from the situation. For example, the corridor through Pakistan, Iran and Afghanistan has now become extremely important for connecting South-East Asia with China and India. By building pipelines – the least costly way to supply energy – the Strait of Hormuz becomes less crucial than it is today. Admittedly, the construction of pipelines involves a significant investment, but it would shield the entire region from geopolitical conflicts in terms of energy security. In the 1970s, there was discussion of a project to build an Arabian Gulf corridor that was to run the entire length of the region as far as the Red Sea or as far as Lebanon and Syria. Meanwhile, in the 1950s, there were two historic oil pipeline networks extending as far as northern and southern Lebanon (where there were refineries at the time). If we could do the same today with Iraq, offering them a better solution than Tartus, I believe the Iraqis would look to Lebanon as a port for the arrival of pipelines and perhaps even for refining. These are some examples of how oil producers in the eastern Mediterranean might view Lebanon as a base for exports and a transition point for the future.”

What role do you envisage for Italian businesses in Lebanon, and in which sectors might there be opportunities that benefit both countries?

‘Historically, Italia has been Lebanon’s second or third largest trading partner. We work extensively with Italian engineering firms and with your suppliers of industrial components (I am not referring to consumer products). Italia still has an advantage over other countries, but to derive greater benefit from it, it should broaden its perspective on how to capitalise on this advantage. I believe Prime Minister Meloni is very focused on these aspects. The Ministry of Foreign Affairs could show greater understanding of the situation. Italia is held in high regard in our region – there is real potential – let’s see what we can achieve together.’