World Country Guide

Business Profile

Economy
The 15-year civil war from 1976 to 1991 all but completely destroyed the economy; Beirut’s position as a major financial and commercial centre for the Middle East was lost. Since then, both Lebanon and its capital have gone a long way to re-establishing themselves. Agriculture now accounts for about 10 per cent of GDP, with citrus fruit, olives and cereals as the main products. Light industries include textiles, processed foods and industrial machinery. There are no significant mineral resources, but the manufacturing industry is growing rapidly. In the all-important service sector, the two main components, banking and transit trade (both of which were almost wiped out during the civil war) have recovered reasonably well. Essential reconstruction, financed by expatriate capital, international aid and foreign investment, began with infrastructural projects. However, by the late-1990s, the government’s failure to control the budget deficit and external debt was causing serious difficulties. Annual growth had fallen from an average 4 per cent during most of the 1990s to just over 1 per cent by 2000. At the end of 2000, the government introduced a major reform programme based on privatisation and promotion of foreign investment. However, it was at pains to do so outside the normal channels of the IMF and World Bank which, the government felt, imposed unacceptable constraints on its freedom of manoeuvre on economic policy-making. To that end, in November 2002, Lebanon successfully raised a $4 billion loan package from a consortium including a dozen governments (notably excluding the US) and a number of investment banks and multinational funds. Earlier in the year, Lebanon concluded a major bilateral trade deal with the EU. Besides the EU, Saudi Arabia, the Syrian Arab Republic, the United Arab Emirates and Kuwait are Lebanon’s principal trading partners.

Business
Businesspeople usually wear a jacket and tie. English is spoken by many local businesspeople and normal courtesies are observed. Appointments and business cards are used. Office hours: Mon-Fri 0800-1330 and 1500-1800. Government office hours: Mon-Thurs 0800-1400, Fri 0800-1100, Sat 0800-1300.

Commercial Information
The following organisations can offer advice: Chamber of Commerce, Industry and Agriculture of Beirut and Mount Lebanon, PO Box 11-1801, Rue Sanayeh, Sanayeh, Beirut (tel: (1) 353 390 or 744 160; fax: (1) 353 395; e-mail: tradeinfo@ccib.org.lb; website: www.ccib.org.lb); or Ministry of Economy and Trade, Artois Street, Hamra, Beirut (tel: (1) 340 504/5; fax: (1) 354 640; website: www.economy.gov.lb); or Euro Info Correspondence Centre (EICC), PO Box 11-1801, 1 Rue Justinien, Sanayeh, Beirut (tel: (1) 744 163; fax: (1) 341 039; website: www.euroinfocentre.net).

Conferences/Conventions
Beirut is an increasingly popular business destination and a number of companies offer extensive conference and exhibition facilities. For further details, contact the Ministry of Tourism (see Contact Addresses section).