Any financial aid to Lebanon should be tied to a material commitment by its elites to undertake long-needed reforms.

Diversification of Middle Eastern economies is more a political than an economic challenge.

And what is the solution?

Saudi Arabia’s diversification effort will prove challenging with or without an Aramco IPO.

Despite favourable geography, Middle Eastern economies have not diversified or developed their private sectors.

History has shown that elites share their power when faced with the prospect of losing it, as Egypt now shows.

The region’s dependence on natural resources has prevented the emergence of a strong private sector.