Lebanon; an international hub for trade, investment, finance, services, & tourism
Free enterprise and private initiative are the drivers of the Lebanese economy, based on a long tradition of liberal investment policies. Trading facilities, banking and financial services make Lebanon the commercial center of the region.

Lebanon represents a point of entry to a large regional market encompassing major Arab countries and reaching into Iran, Eastern Europe, part of North Africa, and the southwestern former Soviet Union republics. This is why many regional trade shows are organized in Lebanon. Even major shows planned for other Middle Eastern countries are mainly promoted in and via Lebanon.

Most of the Lebanese expatriates, especially the communities settled in Africa, the Gulf states, and Europe maintain commercial relations with their motherland further expanding the markets that Lebanese could penetrate apart from the regional markets of the Middle East.

Lebanon is an importing country creating huge opportunities for international exporters. International exporters have entered the Lebanese markets mainly by participating in exhibitions held in Lebanon.

With modern telecommunications, a new airport, expanding port facilities, and an ambitious road rehabilitation program, Lebanon’s infrastructure is quickly becoming one of the best in the region.

A foreigner can acquire a business under the same conditions as a Lebanese person, on condition he requires residency, and work permit. Lebanon permits the existence of collective corporations and partnerships to either Lebanese or foreigners as joint stock, limited liability, limited partnership, limited partnership by shares, general partnership, co-partnership, holding, offshore, and joint-stock corporation.

The Lebanese law, as regards commercial representation, presents a particular interest to foreign businesses or companies since most of such agreements of commercial representation are concluded between foreign companies acting as “principals” and Lebanese traders as “agents.”

Most “principles” find their “agents” during specialized trade shows and exhibitions held in Lebanon.

Fiscal Paradise
With a free foreign exchange market, full currency convertibility policies, no restrictions on the inward or outward movement of capital, and banking secrecy, Lebanon is truly ideal fiscal paradise.

The banking secrecy in Lebanon is one of the major driving forces of capital inflow to the country. While the banking sector as a whole is seen as having a key role by being the entry point for capital influx for the region’s development.

This banking sector is one of the most vibrant sectors in the Lebanese economy and regularly outperformed the rest of the sectors.

Lebanon offers investors a wide array of investment opportunities in all sectors of the economy. Lebanon offers a large number of untapped investment opportunities in all sectors, of the Lebanese economy and more specifically in the tourism, real estate and construction, agro-food industries, light & medium industries, agriculture, health, telecommunications, energy, environment, transportation, and information technology sectors.

Every year, these sectors organize trade exhibitions to attract investors from the region and from all around the world.

Real Estate
Beginning 1991, Lebanon has witnessed a significant construction boom. Real estate prices have risen steeply, especially for prime property but have recently stabilized. A mixture of local, expatriate and gulf Arab funds has fueled the boom. Governmental sources say, in 2003 alone, foreigners invested around $3 billion in real estate.

According to construction experts, these investments, which have been used mainly to buy land, could generate construction projects worth more than $8 billion in the coming years.

The hotel industry itself has seen well over $1 billion spent in the past few years.

Parallel to the boom in the private sector construction activities, the government has created the Council for Development and Reconstruction (CDR). It is responsible for formulating and monitoring the implementation of public investment projects as well as seeking foreign funding. The CDR has awarded approximately 2,681 contracts with a total value of around $7 billion for the period since reconstruction efforts started in 1992 to the end of 2003.

In addition to its ongoing projects valued at about $2.7 billion, CDR has awarded new contracts (270 contracts) for a total value of about $346 million distributed over more than 15 sectors including schools and vocational colleges, electricity, water, wastewater treatment, roads and highways, and social services.

The CDR has allocated about $1 billion to national welfare projects for the coming years, estimated to cost about $3 billion (to be implemented over a six-year period). An additional $1 billion is earmarked for projects directly linked to basic development services.

The Beirut Central District has regained its role as the main hub of commercial and business activity in the city housing a variety of administrative, recreational and cultural activities. Yet, there are many ongoing and planned multi-million USD projects including the high-rise Marina Towers, Four Seasons Hotel, Hilton Hotel, the 200,000m2 built-up area Souks project, the Formula One track and arena and many more.

As Lebanon witnesses the rise of new luxury hotels, shopping centers, and office and residential buildings, demand is at an all-time high for construction equipment, technology, and services as well as for associated technologies such as environmental, water and stone technology. The construction boom has fueled demand for all types of furniture and interiors.

Tourism
The strategic position of Lebanon, its mild climate and natural beauty, consisting of snow-capped mountains, valleys and the Mediterranean Sea, make it a natural tourist attraction.

Lebanon also benefits from qualified and experienced human resources in the tourism industry.

Between 1995 and 2003, the tourism sector witnessed significant growth with tourist arrivals increasing almost 200 percent. Total number of tourists exceeded one million in 2003.
A new marketing strategy adopted by the hotel industry is aiming to catapult Beirut’s current total hotel room capacity, which is just below 15,000, up to pre 1975 levels of 18,500.

Lebanon is an open country and the mood for encouraging investment is helping the tourism industry and one of its affiliates the MICE (Meetings, Incentives, Conventions, and Exhibitions) industry. MICE organizers present a major means of connecting investors, executives, entrepreneurs and agents from all around the Middle East and the world.

The leisure facilities in the country, such as restaurants, site seeing, skiing, swimming as well as the nightlife, constitute complementary factors to attract business trips, conferences and exhibitions.

During the past few years, major hotels were joined to the already existing wide chain of hotels in Lebanon. Including are Mzaar Inter-Continental, Gefinor Rotana, Sheraton Coral Beach, two Sheik Hotels, Four Point, Safir Heliopolis, Crowne Plaza, the Metropolitan Palace and the Movenpick Resort and Hotel.

The World Tourism Organization rates the Middle East as one of the fastest growing tourist destinations in the world, with Lebanon as one of the highest performers.

Coupled with the tourism boom, the region’s boating and yachting industry is witnessing exceptional growth. Much of Middle East spending goes to luxury items as well, such as jewelry and watches, comprising a sector with a very convenient customs duty.