Gulf conflict squeezes funding, leaving Lebanese creatives facing layoffs and scholarship cuts

Since the outbreak of the Iran-linked war six months ago, Gulf nations have entered a deep economic slowdown, causing Lebanese advertising and branding agencies to lose up to 70% of their income and cut staff by half. Creative Space Beirut, a fashion school that has historically relied on Gulf philanthropy, sees its anticipated $500,000 in donations evaporate, threatening scholarships for disadvantaged students and leaving it with just four months of operating cash.

Founder Sarah Hermez says donors have entered "survival mode" and many pledges cannot be fulfilled. Bank Audi’s chief economist Marwan Barakat notes downgrades across Gulf GDP growth, aviation traffic, stock markets and fiscal balances, with a modest recovery not expected until 2027. Freelancers like Kim Heshme report income drops of around 60% and difficulty collecting fees from Gulf clients, many of whom are unwilling to pay full value for creative ideas.