Doing business in Lebanon: Lebanon trade and export guide
Updated 7 August 2015
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This publication is available at https://www.gov.uk/government/publications/exporting-to-lebanon/doing-business-in-lebanon-lebanon-trade-and-export-guide
Managing risk
Find out how UK companies can control risks when doing business in Lebanon.
Export opportunities and advice
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1. Lebanon export overview
Lebanon is a regional centre for trade and business due to its strategic geographical location. It’s an excellent gateway to the Middle East for exporters new to the region, due to the Lebanese business community’s strong links with its overseas residents.
Contact a Department for International Trade (DIT) Lebanon export adviser for a free consultation if you’re interested in exporting to Lebanon.
Contact UK Export Finance (UKEF) about trade finance and insurance cover for UK companies. You can also check the current UKEF cover position for Lebanon.
UK companies present in the market include HSBC and the Beirut Container Terminal Consortium (BCTC), which is a joint venture between a Lebanese group and Mersey Docks and Harbour.
Benefits for UK businesses exporting to Lebanon include:
- Investment Promotion and Protection Agreement (IPPA) signed by UK and Lebanon
- no exchange regulations
- English widely spoken
Strengths of the Lebanese market include:
- large financial sector
- well educated and highly skilled workforce
2. Challenges
Although the business climate in Lebanon continues to improve, obstacles remain.
Challenges include:
- bureaucracy
- lack of clarity and transparency in tax administration
- tax burden
- poor infrastructure
- corruption (ranked 136th in the Corruption Perceptions Index)
You should ensure you take the necessary steps to comply with the requirements of the UK Bribery Act.
Read the latest Overseas Business Risk report for Lebanon.
3. Growth potential
3.1 Economic growth
The economy has been largely unaffected by the global financial crisis. Lebanon’s Gross Domestic Product (GDP) was USD 47.5 billion in 2014. GDP is expected to reach USD 54.81 billion by 2030, with an annual growth rate of 2.8%.
Lebanon has a liberal economic system in which the private sector plays a dominant role.
Priority sectors for economic development include:
- oil and gas
- Information and Communications Technology (ICT)
- infrastructure
- defence
- education
3.2 Trade agreements
Lebanon is a member of the World Trade Organization (WTO). It’s also a member of the Greater Arab Free Trade Area (GAFTA)
4. UK and Lebanon trade
UK exports to Lebanon reached £498.2 million in 2014.
The UK’s main exports to Lebanon are:
- engines
- food and drink
- luxury goods
- clothing
5. Opportunities for UK businesses in Lebanon
DIT provides free international export sales leads from its worldwide network. Search for export opportunities.
5.1 Oil and gas
Onshore seismic surveys are on-going with promising preliminary reports.
Opportunities for UK companies include:
- surveying
- infrastructure design and construction
- extraction management
- infrastructure servicing and maintenance
- corporate services and insurance
- health and safety systems
- oil trading regulation and services
- shipping and pipeline management
Contact paul.khawaja@fco.gov.uk for more information on opportunities in Lebanon’s oil and gas sector.
5.2 Food and drink
UK products make up around 14% of Lebanon’s total food and drink total imports. Alcohol is widely consumed. 49% of imported drinks are alcoholic beverages.
Prepared foodstuffs make up a large proportion of Lebanon’s food imports.
Opportunities for UK companies include:
- alcoholic beverages
- confectionary
- organic products
Contact yasmine.elhajj@fco.gov.uk for more information on opportunities in Lebanon’s food and drink sector.
5.3 Fashion and retail
Beirut is the fashion capital of the Middle East. Lebanese society is a consumption oriented society with a tendency to spend on high end and premium goods.
Franchising has proven successful in Lebanon for UK brands. There are franchising opportunities for international UK brands, which are still not available in the market.
Contact yasmine.elhajj@fco.gov.uk for more information on opportunities in Lebanon’s fashion and retail sector.
5.4 Healthcare
The Lebanese healthcare market is worth over USD 4.88 billion per annum and is expected to expand 7 to 8% per year.
The standard of medical care in Lebanon is one of the highest in the region. Lebanon’s private sector hospitals are constantly seeking to improve their services and upgrade their equipment.
Lebanon spends 7% of GDP on healthcare, the highest rate in the Middle East and North Africa (MENA) region. Around 95% of pharmaceutical products are imported.
There are opportunities for UK healthcare companies to supply:
- consultancy
- high-tech medical equipment
- pharmaceuticals
Contact diala.michlawi@fco.gov.uk for more information on opportunities in Lebanon’s healthcare sector.
5.5 Education
At 90%, Lebanon has the highest literacy rate in the Arab world. 10% of the government’s budget is spent on education.
The Ministry of Education and Higher Education’s (MEHE) main priorities are to support ICT in the education system.
The UK is the fourth most popular destination for Lebanese students. More than 50% of students pursue their higher education in English.
Opportunities for UK companies include:
- English language training centres
- partnership with UK companies
- education technology equipment
Contact diala.michlawi@fco.gov.uk for more information on opportunities in Lebanon’s education sector.
6. Start-up considerations
UK companies are advised to appoint a local agent or distributor, rather than attempt to sell direct. One agent is usually able to cover the whole market.
UK companies can also:
- establish a joint venture partner
- set up a company
- acquire a local company
The main methods of payment in Lebanon are irrevocable Letters of Credit and cash in advance.
Open account payment terms are increasingly popular in established business relationships. However, care should be taken in extending credit terms until the reliability of the organisation is established.
UK companies entering into agreements in Lebanon should undertake professional legal advice. Contact DIT’s team in Beirut for a list of lawyers.
7. Legal considerations
Contact the DIT team in Lebanon to help find tax and legal advisers before entering into agreements.
7.1 Standards and technical regulations
LIBNOR, Lebanon’s standards institution, has responsibility for standard, regulations and granting use of the Lebanese Conformity Mark (NL Mark).
National standards cover all products in the following sectors:
- agro-food
- chemicals
- construction
- mechanical, electro technical and electromechanical
7.2 Intellectual Property Rights (IPR)
The Office of Protection and Commercial and Industrial Property at the Ministry of Economy and Trade has responsibility for IPR.
Lebanon has signed the main international copyright convention known as the Berne Convention. Lebanese copyright law provides protection for artistic, dramatic, musical, photographic and cinematographic works. However, copyright infringements are common.
8. Tax and customs considerations
An Investment Promotion and Protection Agreement between the UK and Lebanon has been in force since September 2001.
8.1 Value Added TAX (VAT)
The VAT rate is 10%.
8.2 Corporate tax
Corporate income tax is 15%.
8.3 Income tax
The personal income tax rate in Lebanon is 20%.
8.4 Customs
Lebanese Customs provides a guide to customs law, procedures and regulations.
You can find more about import tariffs in the Market Access Database.
8.5 Documentation
An original invoice which is manually or electronically signed and a Certificate of Origin are required for customs. It must include:
- name of the seller and buyer
- cost
- goods description
- quantity
There must also be a statement that the goods do not originate from Israel. The ship carrying the goods must not have docked at an Israeli port.
A EUR1 Movement Certificate should be used to support claims for preferential rates of duty.
9. Entry requirements
You can obtain a visa at the airport upon arrival, or via the Lebanese Embassy.
Travellers with an Israeli stamp in their passport cannot enter Lebanon.
9.1 Travel advice
If you’re travelling to Lebanon for business, check the Foreign & Commonwealth Office (FCO) travel advice beforehand.
10. Contacts
Contact the DIT team in Lebanon for more information and advice on opportunities for doing business in Lebanon.