This paper discusses processes of urban transformation in Beirut, Lebanon and embeds them in economic globalization and neoliberal urbanism. Contrary to what has been described for many cases in the West, the role of the state in urban renewal processes is not clearly visible and manifests itself in subtle ways, involving public as well as private actors. As will be seen, gentrification processes in Beirut are firmly and historically rooted in the country’s political economy, with an economic system that facilitated and promoted foreign direct investment, let economic agents pursue their interests with minimal state intervention and ensured a free mobility of goods and capital. Urban change is mostly instigated by individual real estate developers who buy a plot of land, demolish the existing structure and replace it with a high rise usually containing luxury apartments. Authorities are implicated in gentrification processes as many real estate developers are connected to politicians or are politicians themselves. Boundaries between public and private spheres are, and always have been, blurred. Instead of explaining these findings through lenses of Arab exceptionalism, corruption or state hybridity, I state that these processes are strongly connected to processes of economic globalization and profit motives play as much as role as anywhere. Moreover, public-private overlaps in urban decision-making have been documented for the West as well (Swyngedouw et al., 2002). The two case studies I employ to prove my point are the Mar Mikhael-area in East Beirut and Zokak el-Blat South of Downtown. The former represents a rather ‘classic’ form of gentrification where creative classes have moved into the neighborhood, galleries opened their doors and some older buildings have been restored to house bars and restaurants. The second case seems to involve a more common form of real estate development in Beirut, where high rises have replaced older structures, implying major socio-economic change. Both cases display transnational capital investment and an appeal to ‘global’ trends in real estate and culture. Data have been collected during research for MAJAL Academic Urban Observatory, Beirut, and fieldwork trips in 2011 and 2012. Methods consisted of surveying and mapping the neighborhoods (looking at building height, projects under construction, building demolition, and comparing these where possible with data from previous years), interviewing real estate developers and reviewing literature on the quarters’ history and current developments. Insights on actors, capital and interests behind urban renewal in the two quarters will be shared.