Exporting to Lebanon
Liberal economic system
Lebanon has a liberal economic system with a dynamic private sector, a profitable banking sector and an attractive corporate tax rate of 17%.
UK trade links
The economic relationship between the UK and Lebanon is growing stronger. Lebanon is an important trading partner for the UK and offers a stepping stone to trade with other countries in the Middle East.
Ease of doing business
143rd
out of 190 countries (World Bank, 2019)
Currency
Lebanese pound
Business languages
Arabic, French
You may need a translator
GDP per capita
$9,250
UK is $42,558 (IMF, 2018)
Economic growth
0.3%
(IMF, 2018)
Time zone
GMT +2
Opportunities for exporters
There are opportunities for UK companies across a broad range of industries. Our trade advisers in the Lebanon have identified particular opportunities for UK businesses in the following sectors:
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Oil and gas
Onshore seismic surveys are being carried out in Lebanon, and initial reports are promising. There are significant commercial opportunities for UK technical assistance.
Oil and gas reserves
The experience of UK companies in offshore North Sea oil exploration will give them an advantage in Lebanon’s oil and gas sector. 2D and 3D offshore seismic surveys have been conducted and the results are highly promising.
Exploration and production bids
On 4 April 2019, the Lebanese government launched a second offshore licencing round. UK companies wanting to explore Lebanon’s oil and gas reserves could participate in this or provide supporting services.
Oil and gas supply chain and servicing
The oil and gas sector will result in high demand for oil and gas servicing, an area in which Lebanese businesses currently lack knowledge and expertise. This means that UK businesses with experience in this area may find considerable demand for their services in Lebanon.
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Food and drink
In 2017, UK products made up around 4% of Lebanon’s total food and drink imports (CCIB, 2017). During the same time period, the UK was the 6th largest food and drink supplier to Lebanon’s food and drink industry.
Alcohol
Alcohol is widely consumed in Lebanon, and alcoholic drinks make up a significant proportion of all drinks imports. Whisky is particularly popular.
Confectionery
Sugars and confectionery products were Lebanon’s 4th most imported food and drink item in 2017 (CCIB, 2017). Due to Lebanon’s high costs of production, imported products are very popular due both to their cheaper price and their perceived quality.
Organic products
Lebanese consumers are becoming increasingly aware of the implications of food choices for health and wellness. Their purchasing behaviour reflects a trend towards healthy and organic food, in which even snack foods are included.
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Retail
Beirut is widely considered the fashion capital of the Middle East. Lebanese society is consumption oriented, with a tendency to spend on high end and premium goods.
Franchising opportunities
UK brands have found considerable success in Lebanon through franchising arrangements.
Success of UK brands
Lebanon has long been considered one of the most cosmopolitan and progressive countries in the region. The taste of Lebanese consumers is widely known to be European. UK brands such as Ted Baker, Karen Millen and Monsoon have opened several successful outlets across Lebanon.
Demand for fashion
Fashion plays a pivotal role in Lebanese and Middle Eastern society. Social gatherings are a core part of the culture and women in particular tend to put considerable effort into their outfits for these events, resulting in high demand for fashionable clothing.
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Healthcare
There is high demand in the Lebanese healthcare sector at the moment. UK healthcare businesses could help to meet demand in the sector.
Pharmaceuticals
The UK exported over £60 million worth of medicinal and pharmaceuticals to Lebanon in 2018 (ONS, 2019). There is continued opportunity for UK businesses in the sector to enter the Lebanese market.
Private hospitals
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. In particular, there are opportunities for UK healthcare companies in the supply of high-tech medical equipment.
Demand for consultancy services
UK businesses can also capitalise on the demand for consultancy services in Lebanon’s healthcare sector.
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Education
There is high demand in the education sector. The Lebanese government spent 6.3% of its overall budget on education between 2013 and 2015 (World Bank, 2017).
Education technology
The Ministry of Education and Higher Education’s main priorities include supporting information and communications technology (ICT) in the education system. This presents opportunities for UK companies to provide technology and equipment for the education sector.
English language education
There’s considerable demand for English language education in Lebanon and the UK is a popular higher education destination. There are opportunities in Lebanon’s education sector for UK businesses to set up and run English language training centres.
Doing business in Lebanon
Preparing to export
VAT
If you’re registered for VAT in the UK, it may be possible to zero-rate the goods you export to Lebanon, provided certain conditions are met.
The standard VAT rate in Lebanon increased from 10% to 11% effective 1 January 2018. Unless specifically exempt, VAT is levied on all commercial transactions undertaken by business entities.
Corporate tax
The corporate tax rate is 17%.
Customs
You’ll find information about customs law, procedures and regulations on the Lebanese Customs website.
Regulations and standards
LIBNOR , Lebanon’s standards institution, has responsibility for standards, 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, electrotechnical and electromechanical
Trade barriers
Check for any reported barriers to trading with Lebanon.
Report any trade barriers that are affecting your business so we can help fix them.
Operating in Lebanon
Intellectual property
As a first step, we advise you to speak to an intellectual property lawyer if you think you need patent protection when exporting.
Lebanon has signed the Berne Convention, the main international copyright convention.
Though Lebanese copyright law provides protection for artistic, dramatic, musical, photographic and cinematographic works, infringements are common.
Payment terms
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, you should be careful about extending credit terms until you’ve established the reliability of the organisation you’re doing business with.
Getting started in the market
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.
Challenges
Although the business climate in Lebanon continues to improve, obstacles remain. UK businesses may face challenges around bureaucracy, corruption and poor infrastructure.
Next steps
DIT can advise you on doing business abroad, and help put you in touch with other people who can help such as lawyers and distributors.
