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ICDT’s Member States Business Guides LEBANON I. PROFILE Location Lebanon is loc

ICDT’s Member States Business Guides LEBANON I. PROFILE Location Lebanon is located on the eastern shore of the Mediterranean Sea. The country is 215km long, and from east to west the distance ranges from 25 to 90km. It is bordered by Syria to the north and east, and by Palestine, and Israel to the south. Official Name Republic of Lebanon Area 10,452 sq km Population 4 million inhabitants in 1999 Capital Beirut Major cities Tarabulus, Sayda, Zahle and Tyre Langage Arabic is the official language; French and English are widely spoken. Currency Lebanese Pound (LL). 1 $ US= 1508 LL Climate The climate varies with altitude .The coastal lowlands Are hot and humid in summer, becoming mild in winter (cool and damp) In the mountains snowfalls and rainfalls are heavy in winter. Main holidays January 1st, February 9th (St Maron), May 1st, August 15th (Assumption), October 1st, November 22nd (National Day), December 25th, Good Friday*, Easter Monday*, Ascension Of the Prophet Mohamed*, Ascension of the Christ, Eid ul-Fitr*, Eid-ul-Adha*, Muharram 1st*, Mouloud*, and Ashoura*. Weekly day off Saturday- Sunday. Local time GMT +2 (GMT+3 between June and October) Working hours * Government offices and Business Monday to Thursday – From 8H/8H30 to12H/13H/14H. Friday: From 8H/8.30H to 12.30 or to 13H * Banks: From 8.30 to 12H30 from Monday to Friday. Saturday: from 8h30 to 12H. Principle Growth Sectors Telecommunications, Construction, Tourism and banking. (*) Variable dates II. ECONOMIC SECTORS The main economic sectors of Lebanon are: agriculture, industry and manufacturing and tourism. II.1 AGRICULTURE Only one-third of Lebanon's land is cultivable and the primary agricultural areas are along the coast and the Bekaa Valley. Lebanon has for many years been a fruit and vegetable exporter to other Arab states such as Syria, Saudi Arabia, Jordan, Kuwait and Iraq. Other crops include olives, sugar cane and beet, potatoes, wheat, tobacco, and barley. The war disrupted agricultural production and the Israeli invasions of 1978 and 1982 had a devastating effect on cultivation particularly in the south and the Bekaa Valley. The 1983 ban on Lebanese products to prevent ICDT’s Member States Business Guides 2 Israeli goods that had flooded the market from entering Arab countries via Lebanon, hit the agricultural sector hard. In recent years, the agricultural export sub sector has performed well due to the depreciation of the Lebanese pound and has accounted for approximately 20% total exports. II.2 INDUSTRY AND MANUFACTURING Lebanon's industrial base has traditionally been small scale. According to a 1975 survey, there were over 18,000 industrial establishments. The largest industrial employer was the food processing industries followed by the well-developed textile industries. These two industries captured 44% of industrial output, furniture and woodworking factories accounted for 29%, and mechanical industries accounted for 7%. The remainder of industrial production was contributed by cement, ceramics, pharmaceutical, and plastic industries. The civil war inflicted severe damage on this sector in terms of human and capital resources. By 1985, one-fourth of the country's productive capacity had been destroyed with 600-700 factories closed and those that remained functioning did so at only a quarter of pre-war capacity. However, in times of stability this sector has performed well. According to the General Directorate for Industry, 431 new industrial enterprises were established in 1995--up from 408 in 1994--employing nearly 3,500 people and entails the approximate investment of LL96 billion, 22% higher than in 1994. Not surprisingly, the new factories reflect many of the same industries as were prevalent prior to 1975. In December 1995, total industry exports reached LL56.3 billion (against LL26.2 billion in November 1995), thus registering an increase of 53.7 % from a year earlier and 114.7% compared to November 1994. Cement exports represented 26% of total exports. The main destination of exports at this time is the Middle East region. II.3 TOURISM Lebanon has a diverse range of activities ranging from mountain skiing to swimming in the Mediterranean. Prior to the country's civil war, the country was one of the most popular tourist destinations in the Arab world, and contributed over 15% to Lebanon's national income. Recently, the tourism industry has experienced a turnaround. While only a few up-scale hotels are currently in operation, an addition of new up-market hotel rooms as well as the reconstruction of damaged hotel properties is now in progress. Meridian hotel is under construction and the Inter-Continental hotel chain has signed a management agreement to operate the renovated Phoenicia hotel. Other international hotel chains are also expressing interest in expanding to Beirut. Lebanon's airline industry is also making progress to attract tourists. A major step was taken with the expansion and rehabilitation of Beirut's international airport. An agreement was reached between the German-Lebanese joint venture Hochtief-Consolidated Contractors International Company and the Council for Development and Reconstruction in 1994. The contract includes the construction of a new 3.4 km (approximately 2.1 miles) runway, a transit lounge, a new control tower, a 90-room hotel and new air traffic control equipment. Major airline services have resumed services to Beirut and include Swissair, Pakistan Airlines, and British Airways. III. INFRASTRUCTURES ICDT’s Member States Business Guides 3 III.1 TRANSPORTS AIR, SEA 1 RAIL Beirut has an international airport. The national carrier, Middle East Airlines (MEA), operates flights to most European capitals, the Middle East, Africa, Singapore and Australia. There is no domestic air service within Lebanon. Beirut, Tripoli, and Sidon are the major ports, and a government owned railway connects Beirut with Tripoli and Damascus. There are 378 km of railway. It is possible to travel to Beirut by sea: a three and a half hour boat trip from Lanaca, Cyprus. The length of road is about 7,100 km. III.2 TELECOMMUNICATIONS Lebanon has been actively pursuing a policy of infrastructure reconstruction, especially of its telecommunications systems. The Lebanese PTT has recently: • Replaced analogue equipment by state of the art digital technology; • Upgraded the national transmission network with new copper cables, fibre-optic cables and microwave systems; • Upgraded the international transmission network through new earth stations and fibre optic cables; • Migrated the existing signalling network based on R2 and CS for international networks to CCS7; • Implemented a GSM cellular network. The new telecom infrastructure is now able to handle up to 1.5 million potential subscribers. IV. FOREIGN TRADE REGULATIONS IV.1. LEGAL FRAMEWORK OF TRADE RELATIONS: Lebanon is a member of the following international organizations: • World Trade Organization (W.T.O); • United Nations Organization (UN) and its main specialized institutions (IMF, World Bank, FAO etc.); • Organization of the Islamic Conference (O.I.C); • G-77; • Lebanon is a member of the League of Arab States and signed economic and trade co- operation agreements with the Arab States and Eastern Europe countries, Turkey, the European Union and African countries. We may quote among others, the economic and social co-operation agreement signed with Syria (abolition of customs duties, free movement of natural persons…), trade agreements were ratified between Lebanon and Cameroon, China, Czechoslovakia, Egypt, Jordan, Kuwait, Turkey and Ukraine. Besides, economic and social development co-operation agreements were also ratified between Lebanon and Iraq, Morocco and Rumania, Russian Federation and Saudi Arabia. Thanks to the co-operation agreements established between Lebanon and the European ICDT’s Member States Business Guides 4 Union, Lebanon has been able to benefit from very low customs duties for some products with the countries of 15. In the near future Lebanon will be provided with a free trade area with the entire Mediterranean zone. Investment agreements were signed between Lebanon and Rumania (18/10/1994) and Ukraine (25/3/1995, and Cuba (14/12/1995) and Spain (22/2/1996). IV.2. TRADE STRUCTURE: IV.2.1. Main exported products: * Pearls, precious stones & metals, plated metals and fake jewelry; * Heaters, machines, mechanical apparatus & instruments; * Ready-made textiles; * Aluminium; * Fertilizers. IV.2.2. Main imported products: * Cars, tractors, bicycles & other vehicles; * Heaters, machines, mechanical apparatus & instruments; * Mineral combustibles, mineral oils, bituminous materials and mineral wax; * Heaters, machines, mechanical apparatus & instruments; * Electrical machines & apparatus. IV.2.3. Trading partners: Main suppliers Main customers - France - Italy - Switzerland - France - United States of America - Germany - Saudi Arabia - United States of America -United Arab Emirates - Syria IV.3. FOREIGN TRADE REGULATIONS: In Lebanon, foreign trade was liberalized and all suppliers are allowed to export all sorts of goods and services in collaboration with Lebanese importers. Very often foreign firms resort to local agencies, which know better the country. IV.3.1. Imports regulations: Foreign trade and customs regimes have been substantially simplified in recent years. Currently, the Lebanese government applies the lowest ad valorem rates in the region. It is within this framework that the Lebanese government abolished all discriminatory barriers against foreign imports. ICDT’s Member States Business Guides 5 Lebanon does not impose any import quotas but it has maintained a complex system of export and import licenses. Oil and oil products imports are restricted to twenty local firms. Import or export licenses cannot be transferred to third parties. Export licenses are required for large consumption goods. Violation uploads/Industriel/ biz-guide-lb.pdf