About HKTDC | Media Room | Contact HKTDC | Wish List Wish List () | My HKTDC |
繁體 简体
Save As PDF Print this page
Qzone

Lebanon: Market Profile

Picture: Lebanon factsheet
Picture: Lebanon factsheet

1. Overview

Lebanon has a long tradition of domestic free trade and investment policies, with free market pricing for most goods and services, an unrestricted exchange and trade system, and extensive links with the developed world in nearly all economic activities. The government continues to favour a strong role for the private sector in a liberal policy environment. That said, the impact of the Syrian crisis has strained Lebanon's public finances, service delivery and the operating environment. However, GDP growth in 2018 accelerated to 8.7%, from 4.3% in 2017. Parliament backed the new government's mission statement in mid-February 2019 and the cabinet reaffirmed its commitment to reforming public finances and the economy. This should prop up investor confidence and help unlock donor funds pledged at a Paris conference in April 2018. Nonetheless, economic growth remains below historic trends, inhibited by volatile geopolitics and regional security conditions.

Sources: World Bank, Fitch Solutions

2. Major Economic/Political Events and Upcoming Elections

June 2017
A new electoral law was approved by parliament.

July 2017
Hizbullah and the Syrian army launched a military operation to dislodge jihadist groups from the Arsal area, near the border with Syria.

November 2017
Prime Minister Hariri announced his resignation in a televised address from Saudi Arabia. He then withdrew his resignation a month later.

May 2018
General elections held in Lebanon on May 6, 2018 triggered the start of cabinet negotiations.

August 2018
Construction started on a nearly 1,802.32 square metre medical facility in Choukine, Lebanon. The Medrar Foundation was developing the project in partnership with the American University of Beirut's Medical Centre. The centre is expected to be ready by the end of 2020.

September 2018
Germany and Saudi Arabia agreed the return of their ambassadors to Lebanon.

September 2018
Lebanon's parliament ratified the international Arms Trade Treaty. The 2014 treaty sought to regulate international trade in conventional arms and prevent illicit trade. 

December 2018
The Lebanese army strengthened its military presence in the country's southern border town of Meiss Ej Jabal in order to bolster national security.

March 2019
The Investment Policy Review (IPR) of Lebanon was discussed at the United Nations in Geneva in December 2018 and officially presented at an in-country launch of the IPR in Beirut on March 6, 2019. Lebanon's Minister of Information stated that the country would implement reforms for economic growth and job creation in close alignment with the IPR recommendations. Key priorities include a focus on capacities, awareness and institutional cooperation, the preparation of the investment promotion strategy, and the expansion of knowledge and networks for targeted activities.

Sources: BBC country profile – Timeline, Fitch Solutions

3. Major Economic Indicators

Graph: Lebanon real GDP and inflation
Graph: Lebanon real GDP and inflation
Graph: Lebanon GDP by sector (2017)
Graph: Lebanon GDP by sector (2017)
Graph: Lebanon unemployment rate
Graph: Lebanon unemployment rate
 
Graph: Lebanon current account balance
Graph: Lebanon current account balance

e = estimate, f = forecast
Sources: IMF, World Bank, Fitch Solutions
Date last reviewed: February 22, 2019

4. External Trade

4.1 Merchandise Trade

Graph: Lebanon merchandise trade
Graph: Lebanon merchandise trade

Sources: WTO, Fitch Solutions
Date last reviewed: February 22, 2019

Graph: Lebanon major export commodities (2017)
Graph: Lebanon major export commodities (2017)
Graph: Lebanon major export markets (2017)
Graph: Lebanon major export markets (2017)
Graph: Lebanon major import commodities (2017)
Graph: Lebanon major import commodities (2017)
Graph: Lebanon major import markets (2017)
Graph: Lebanon major import markets (2017)

Sources: Trade Map, Fitch Solutions
Date last reviewed: February 22, 2019

4.2 Trade in Services

Graph: Lebanon trade in services
Graph: Lebanon trade in services

e = estimate
Source: WTO
Date last reviewed: February 22, 2019

5. Trade Policies

  • In May 2017, the Lebanese finance minister pledged to tackle corruption at the country's customs agencies and, in particular, those located at Beirut port.
  • Businesses face supply chain disruption due to the ongoing conflict in Syria, which has closed off overland trade routes, while additional concerns emanate from Lebanon's current exclusion from the World Trade Organization (WTO). Lebanon is in negotiations in order to accede to the WTO.
  • IModern, simple and efficient assessment means are adopted by the customs authorities (for example, electronic declarations, declaration in advance, applying international procedures in clearing the goods, selective inspection, auditing the goods after their release, and adopting the unique declaration). Customs rates are imposed and modified according to decisions from the Lebanese customs authorities. These decisions are adopted based on the need of the Lebanese markets of some goods and the will to protect national production sectors.
  • Safeguard measures are provided for in relation to imported goods. The purpose behind such measures is to protect the domestic production sectors when an increase of imports is witnessed compared to the same period during the previous year. The rates are determined based on a specific schedule created in conformity with the Harmonised System of Nomenclature. This conformity with the unified system makes Lebanon an importer-friendly environment for traders. The normal rates are applied where there is no preferential agreement. When the origin of the good or part of the good is a country with which Lebanon has a preferential customs treatment, preferential rates apply. Customs rates in Lebanon are either determined in percentage or paid as a lump sum per unit of imported products.

  • Import tariffs are highest on fruit and vegetable products and beverages and tobacco, but most intermediate inputs and many finished goods face competitive tariff rates. The fact that Lebanon is not a member of the WTO poses risks that tariffs could be hiked unilaterally with no recourse for the country's trade partners, but Lebanon's reliance on imports and commitment to free trade make such actions unlikely.

  • Lebanon signed an Association Agreement with the European Union (EU) in June 2002, which entered into force in April 2006. As a result, Lebanese industrial as well as most agricultural products benefit from free access to the EU market. Bilateral trade between the EU and Lebanon has been increasing steadily over the past years, with average annual growth of 7.5% since 2006, with total trade amounting to around EUR7.7 billion in 2017.

  • There are few non-tariff barriers to trade with Lebanon, with less than 1% of exports and imports subject to additional requirements such as phyto-sanitary certificates, import licencing or technical standards certificates. The customs process has been largely digitised and updated to remain in line with international standards, easing the trade process.

  • Lebanon's import-reliant economy generally offers an open environment for international trade, with few major regulatory, tariff or customs barriers impeding trade flows. The Lebanese economy is highly reliant on international trade, with most growth in trade value driven by imports, due to the strength of private consumption and the relative lack of domestic manufacturing industries. The government operates an open policy with regard to trade; furthermore, both tariff and non-tariff barriers are low, encouraging greater trade flows.

Sources: WTO - Trade Policy Review, Fitch Solutions

6. Trade Agreement

6.1 Multinational Trade Agreements

Active

  1. Greater Arab Free Trade Area (GAFTA): GAFTA was declared within the Social and Economic Council of the Arab League as an executive programme to activate the Trade Facilitation and Development Agreement that has been in force since January 1, 1998. On January 1, 2005 the elimination of most tariffs among the GAFTA members was enforced.

  2. European Free Trade Association (EFTA)-Lebanon Free Trade Agreement (FTA): Of the EFTA states (Switzerland, Norway, Iceland and Lichtenstein), Switzerland is a key trade partner of Lebanon, although trade with the other member states is much more limited. The EFTA-Lebanon FTA covers trade in industrial and agricultural goods, the latter covered by agreements concluded bilaterally between each EFTA state and Lebanon, forming part of the instruments creating the free trade area. The agreement also contains substantive provisions on intellectual property, competition and dispute settlement and covers certain aspects of services, investment and government procurement.

  3. EU-Lebanon Association Agreement: The EU-Lebanon Association Agreement progressively liberalised trade in goods between the EU and Lebanon. Its gradual implementation was overseen between 2008 and 2014 and Lebanese industrial as well as most agricultural products benefit from free access to the EU market, with a view to creating a bilateral free trade area. The association agreement is part of the Euro-Mediterranean Partnership which aims to foster trade and investment links between the EU and the southern Mediterranean. In November 2010, the EU and Lebanon signed a protocol establishing a dispute settlement mechanism applicable to disputes under the trade provisions of the association agreement. Due to its FTA with the EU, Lebanon ceased to benefit from preferential access to the EU market under the Generalised System of Preferences scheme from January 2014.

  4. United States-Lebanon Trade and Investment Framework Agreement (TIFA): The United States and Lebanon signed the TIFA with the aim of regulating all commercial matters between the two countries and strengthening bilateral trade. This includes a wide range of trade and investment issues such as market access, intellectual property rights, and labour and environmental issues. The TIFA will also help in growing commercial and investment opportunities by identifying and working to remove impediments to trade and investment flows between the two countries. This will create more opportunities in a key market for businesses in Lebanon.

Sources: ITA, US Department of Commerce, Fitch Solutions

7. Investment Policy

7.1 Foreign Direct Investment

Graph: Lebanon FDI stock
Graph: Lebanon FDI stock
Graph: Lebanon FDI flow
Graph: Lebanon FDI flow

Sources: UNCTAD, Fitch Solutions
Date last reviewed: February 22, 2019

7.2 Foreign Direct Investment Policy

  1. Lebanon has liberal domestic free trade and investment policies, with free market pricing for most goods and services, an unrestricted exchange and trade system, and extensive links with the developed world in practically all economic activities. The government continues to favour a strong role for the private sector in a liberal policy environment and the economy, characterised by freedom of exchange and transfers, is based on private initiative. The Lebanese economy is service-oriented, and its main growth sectors include banking and tourism.

  2. There are relatively few barriers to foreign direct investment (FDI) in Lebanon, as the government actively encourages foreign investment in the majority of industries. The only remaining barriers exist in terms of some localisation and job creation requirements (particularly if businesses wish to benefit from incentive programmes), the dominant presence of state-owned entities (SOEs) in a few sectors, and limited foreign ownership restrictions. In general, the foreign investment regime is one of the most open in the Middle East and North Africa region, making Lebanon an attractive location for businesses, were it not for the pressing domestic political situation and wider regional insecurity.

  3. Lebanon's commercial law provides for a range of business entities available to both local and foreign investors. Legal structures commonly used by foreigners in conducting business in Lebanon are joint-stock companies (SALs), limited liability companies and branch offices. Lebanese SALs are permitted to engage in all kinds of business activity. Shareholders of a SAL have no liability beyond their actual capital subscriptions. With a small number of exceptions (such as real estate companies and banks), there are no limits on the amount of capital that can be held by foreign investors. The management of a SAL is entrusted to a board of directors with a minimum of three and a maximum of 12 members. The majority of board members must be Lebanese, but the chairman may be a foreign national. Certain types of businesses, such as banks and insurance companies, are required to incorporate as SALs. The minimum capital is LBP30.0 million, and the applicable corporate income tax rate is 17%, in addition to a withholding tax on dividends of 10%.

  4. The overall estimated cost of establishing a company in Lebanon is around USD7,500. This includes lawyer's fees and registration fees. The registration fees will increase if the company is established with capital exceeding the minimum requirement. However, the registration fees should not normally exceed 1% of the value of capital. For branch offices and representative offices, establishment costs are lower, estimated at USD5,000. When transferring ownership of real estate, registration fees of approximately 6% are applicable.

  5. Not all businesses are taxed in the same manner. Depending on the relative size and structure of a business, the tax method applied is assessed depending on real (or actual) profits or deemed profits. A deemed profit method is imposed on insurance and savings institutions, taxable transport companies, oil refineries and public work contractors. Taxation is based on deemed profits and is levied at a flat rate of 17%. The rate of deemed profit for public work contractors, as approved by the Ministry of Finance, is currently set at either 10% or 15% of total amounts collected per year, based on the type of activity performed by the contractor. For insurance companies, the deemed profit rate ranges between 5% and 10%, depending on each insurance activity. There are no governorate or local government taxes on income in Lebanon.

  6. The standard value added tax (VAT) rate in Lebanon increased from 10% to 11%, effective January 1, 2018. Unless specifically exempt, VAT is levied on all commercial transactions undertaken by business entities. Export of goods and services and export-related services, international transport, and some of the intermediate operations are zero-rated. Banking, financial services and insurance operations are exempt from VAT. Investors must note that the recharge of expenses from an entity in Lebanon to another entity abroad is subject to VAT at 11% instead of 10%, effective January 1, 2018.

  7. Companies and organisations which are granted an indefinite exemption from corporate income tax include the following: educational institutions, hospitals, non-profit organisations and other shelters that admit patients free of charge, shipping, sea and air transport associations (subject to certain restrictions), farmers (subject to some restrictions), syndicates and other types of professional associations, holding companies and offshore companies, and public sector bodies that do not compete with private institutions.

  8. Localisation Requirements: In order to obtain an employer work permit to run their business, investors must contribute at least USD67,000 of upfront capital and hire three Lebanese workers within the first six months of setting up operations.

  9. State-Owned Enterprises (SOEs): SOEs do not have a dominant position across the Lebanese economy, though they do mainly control the power and aviation sectors. While some private power providers have been granted licences to generate and distribute electricity in recent years, the national airline, Middle East Airlines, retains a guaranteed monopoly in air travel until 2024.

  10. Foreign Ownership Restrictions: There are restrictions on management participation, as Lebanese nationals must comprise the majority of company board members. In addition, the following restrictions apply to foreign ownership of real estate:
    • More than 3,000 square metres requires approval from the Council of Ministers
    • Exploitation and normal lease right extending for a period of more than 10 years cannot be attained without obtaining approval
    • Real estate owned by foreigners, for which approval has been obtained, cannot exceed (over all of Lebanon territory), 3% of the total area of the country. In each province, the total area owned should not exceed 3% of its area. With respect to Beirut, the total area owned should not exceed 10% of its area
    • When approval is granted, the building on the real estate should be constructed within a period of five years (renewable once by the Council of Ministers)

  11. Lebanon has signed bilateral investment agreements with the following (in alphabetical order, as of January 2012): Armenia, Austria, Azerbaijan, Bahrain, Belarus, Belgium/Luxemburg, Benin, Bulgaria, Canada, Chad, Chile, mainland China, Cuba, Cyprus, Czech Republic, Egypt, Finland, France, Gabon, Germany, Greece, Guinea, Hungary, Iceland, Iran, Italy, Jordan, Kuwait, Malaysia, Mauritania, Morocco, Netherlands, OPEC Fund, Pakistan, Qatar, Romania, Russia, Slovakia, South Korea, Spain, Sudan, Oman, Sweden, Switzerland, Syria, Tunisia, Turkey, United Arab Emirates, Ukraine, the United Kingdom and Yemen.

Sources: ITA, Ministry of Finance, IDAL, Fitch Solutions

7.3 Free Trade Zones and Investment Incentives

Free Trade Zone/Incentive ProgrammeMain Incentives Available
IPZ Zone A: Coastal areas including Beirut. Minimum investment of USD200,000 (IT, media, technology, communication); USD1.5 million (agriculture); USD2.0 million (agribusiness industry); USD5.0 million (industry); USD10.0 million (tourism).Work permits are available for all categories of employee. Exemption from corporate income tax for two years if 40% of company shares are listed on the Beirut Stock Exchange (BSE).
IPZ Zone B: Central inland areas. Minimum investment of USD200,000 (IT, media, technology, communication); USD1.0 million (agriculture); USD1.5 million (agribusiness industry); USD3.0 million (industry); USD4.0 million (tourism).Work permits are available for all categories of employee. 50% reduction of corporate income tax and tax on dividends for a five-year period. Exemption from income tax for a further two years if 40% of company shares are listed on the BSE.
IPZ Zone C: Northern and southern inland areas. Minimum investment of USD200,000 (IT, media, technology, communication); USD500,000 (agriculture); USD1.0 million (agribusiness industry, industry, tourism).Work permits are available for all categories of employee. Exemption from corporate income tax and tax on dividends for 10 years. Exemption from income tax for a further two years if 40% of company shares are listed on the BSE.
Package Deal Contract: Eligible for large projects located anywhere in the country. Minimum requirements: investment of USD400,000 and creation of 25 jobs (IT, media, technology, communication); investment of USD2.0 million and creation of 50 jobs (agriculture); investment of USD3.0 million and creation of 60 jobs (agribusiness industry); investment of USD10.0 million and creation of 100 jobs (industry); investment of USD15.0 million and creation of 100 jobs (tourism).Exemption from corporate income tax and tax on dividends for 10 years. Up to 50% reduction on residence and work permit fees. Up to 50% reduction on construction permit fees. Work permits are available for all categories provided two Lebanese nationals are employed for every one foreign national. Exemption from requirement to include 50% Lebanese nationals on board of directors. Exemption from land registration fees.
Reinvestment incentivesIndustrial companies using operating profit to finance certain capital investments are exempt from up to 50% of their income tax liabilities for a period of up to four years, provided that such exemptions do not exceed the original investments made. In areas designated 'development zones', 75% of a company's tax liabilities may be exempt.

In order to take advantage of this regulation, investments should consist of capital expenditures designed to increase a company's manufacturing capacity or of investments in housing facilities for the company's staff and other employees.

Sources: US Department of Commerce, national sources, Fitch Solutions

8. Taxation – 2019

  • Value Added Tax: 11%
  • Corporate Income Tax: 17%

Sources: IDAL, Lebanon Ministry of Finance

8.1 Important Updates to Taxation Information

A new Law no. 64, dated October 20, 2017 (published in the Official Gazette on October 26, 2017) introduced new tax measures and amended several tax articles to fund the increase of the minimum wages and the cost of living for the public sector. The corporate income tax rate increased to 17% and the VAT rate increased to 11%. There are also further taxes on bank deposit interest, financial transactions and real estate sales.The Ministry of Finance issued the 2018 Budget Law no.79, dated April 18, 2018 (published in the Official Gazette no.158, dated April 19, 2018). It is important to note that not all businesses are taxed in the same manner. Depending on the relative size and structure of a business, the tax method applied is assessed depending on real (or actual) profits or deemed profits.

8.2 Business Taxes

Type of TaxTax Rate and Base
Corporate Income Tax17%
Taxes of offshore companiesThe employer's social security contribution is 12% for Bahraini workers and 3% for non-Bahraini workers
A Withholding Tax at a rate on all proceeds derived from movable capital assets (fixed assets) generated in LebanonOffshore companies are subject to:

- LBP1.0 million (USD663) fixed annual tax
- 15% tax on profit received from the sale of the fixed assets in Lebanon
- Payroll tax on the salaries of company employees working in Lebanon

Offshore companies are exempt from paying:
- Income tax on profits
- Income tax on profit distribution
- Stamp duties on overseas business contracts signed in Lebanon
- Payroll tax on 30% of foreign employees' basic salary
Taxes on holding companies (these companies are exempt from Corporate Income Tax and Withholding tax on dividends)10% on the interest on loans issued to companies operating in Lebanon, if the loan maturity is less than three years
- 15% tax on capital gains received from the sale of holding company shares or its participation in Lebanese companies it has owned for less than two years
- 10% on amounts collected from renting patents and on the reserved rights it possesses on a Lebanese company
- 5% on amounts collected from management fees
Capital gains on sale of fixed assets and shares15%
Value Added Tax11% on sales value of products

Sources: Source: IDAL, Lebanon Ministry of Finance
Date last reviewed: February 22, 2019

9. Foreign Worker Requirements

9.1 Refugee employment restrictions

Lebanon's large refugee population faces structural disadvantages in the job market due to outdated legislation, which makes it difficult for refugees to join the formal labour force. In particular, Lebanese law treats refugees from the West Bank and Gaza as normal foreign workers. This means that in order to gain employment, they are required to meet the condition of reciprocity of treatment for Lebanese workers in their home state - a situation which is impossible to reconcile, given the lack of legal status of the West Bank and Gaza. Applications for work permits must also include copies of a passport, which many refugees do not own, as well as medical reports and formal employment contracts, which are difficult for refugees to obtain.

9.2 Foreign worker permits

Foreign workers are required to obtain prior approval from the Ministry of Labour before taking up employment in Lebanon. Foreign workers must have entered into a formal employment contract, and present this along with a medical report, passport, application form, and information about the employer.

9.3 Visa/travel restrictions

Israeli citizens are not permitted to travel to Lebanon and any person with an Israeli entry stamp in their passport will be refused entry.

Sources: Government websites, Fitch Solutions

10. Risks

10.1 Sovereign Credit Ratings


Rating (Outlook)Rating Date
Moody's
Caa1 (stable)21/01/2019
Standard & Poor'sB- (negative)01/03/2019
Fitch Ratings
B- (negative)18/12/2018

Sources: Moody's, Standard & Poor's, Fitch Ratings

10.2 Competitiveness and Efficiency Indicators


World Ranking
201720182019
Ease of Doing Business Index
126/190133/190142/190
Ease of Paying Taxes Index
67/190113/190113/190
Logistics Performance Index
N/A79/160N/A
Corruption Perception Index
143/180138/180N/A
IMD World CompetitivenessN/AN/AN/A

Sources: World Bank, IMD, Transparency International

10.3 Fitch Solutions Risk Indices


World Ranking
201720182019
Economic Risk Index Rank N/A75/20275/202
Short-Term Economic Risk Score
51.751.950.8
Long-Term Economic Risk Score52.656.557.7
Political Risk Index Rank N/A140/202141/202
Short-Term Political Risk Score47.546.7
46.7
Long-Term Political Risk Score53.953.953.9
Operational Risk Index Rank N/A127/201124/201
Operational Risk Score43.942.943.4

Source: Fitch Solutions
Date last reviewed: February 22, 2019

10.4 Fitch Solutions Risk Summary

ECONOMIC RISK
Economic growth will pick up very gradually in Lebanon over the coming quarters. The recent government formation, agreed on January 31, 2019 – after nine months of political stalemate – will help to boost economic sentiment in the short term. Coupled with funding commitments from Qatar and Saudi Arabia, the improvement in political stability has seen a sharp compression in Lebanon's USD-denominated 2028 bond yield and 10-year credit default swap contract, both proxies of investor sentiment. Much-needed reform should boost the economy by unlocking billions of US dollars in donor funds, shoring up public finances and improving investor and consumer confidence. However, the large twin deficits and high public debt burden pose significant downside risks. In addition, given Lebanon's reliance on foreign capital to finance domestic demand (as evidenced through its large current account shortfall), a marked deterioration in regional or global capital markets over the coming quarters could slow financial inflows, which would negatively impact growth.

OPERATIONAL RISK
The Lebanese economy, characterised by freedom of exchange and transfers, is based on private initiative. The Lebanese economy is service-oriented, and its main growth sectors include banking and tourism. Lebanon's appeal to investors is undermined by the country's exposure to a range of wider regional security risks, the most pertinent being the ongoing conflict in neighbouring Syria. This has had a negative effect on trade growth as many overland connections are inaccessible due to high risk of clashes occurring in border regions, and military blockades. The influx of Syrian refugees has placed unmitigated pressure on already struggling logistics networks and social services, elevating the already high unemployment rate. While Lebanon continues to boast relatively robust financial buffers, persistent high deficits will reduce the scope to increase investment and achieve higher levels of economic growth over the medium term.

Source: Fitch Solutions
Date last reviewed: March 16, 2019

10.5 Fitch Solutions Political and Economic Risk Indices 

Graph: Lebanon short term political risk index
Graph: Lebanon short term political risk index
Graph: Lebanon long term political risk index
Graph: Lebanon long term political risk index
Graph: Lebanon short term economic risk index
Graph: Lebanon short term economic risk index
Graph: Lebanon long term economic risk index
Graph: Lebanon long term economic risk index

100 = Lowest risk, 0 = Highest risk
Source: Fitch Solutions Political and Economic Risk Indices
Date last reviewed: February 18, 2019

10.6 Fitch Solutions Operational Risk Index


Operational RiskLabour Market RiskTrade and Investment RiskLogistics RiskCrime and Security Risk
Lebanon Score43.447.951.841.432.4
MENA Average47.549.348.048.744.1
MENA Position (out of 18)11991313
Global Average49.649.749.949.049.8
Global Position (out of 201)12411294122156

100 = Lowest risk, 0 = Highest risk
Source: Fitch Solutions Operational Risk Index

Graph: Lebanon vs global and regional averages
Graph: Lebanon vs global and regional averages
Country
Operational Risk Index
Labour Market Risk Index
Trade and Investment Risk IndexLogistics Risk IndexCrime and Security Risk Index
United Arab Emirates72.7
67.8
79.068.7
75.3
Qatar66.0
63.9
61.9
71.6
66.5
Bahrain64.9
58.469.571.5
60.1
Oman63.351.061.664.576.0
Saudi Arabia61.663.062.162.758.6
Jordan58.654.960.659.060.0
Kuwait55.152.351.552.564.1
Morocco
53.239.863.554.854.6
Egypt
48.446.046.156.445.3
Tunisia
47.342.356.947.342.8
Iran
43.447.951.841.432.4
Lebanon42.848.736.650.835.1
Algeria
41.544.031.242.947.9
West Bank and Gaza34.246.437.232.021.2
Libya
27.244.421.729.313.4
Syria27.043.724.428.611.3
Iraq
26.642.923.827.012.7
Yemen21.930.625.015.8
16.1
Regional Averages
47.5
49.3
48.0
48.7
44.1
Emerging Markets Averages46.7
48.1
45.5
47.4
46.0
Global Markets Averages49.6
49.7
49.9
49.0
49.8

100 = Lowest risk, 0 = Highest risk
Source: Fitch Solutions Operational Risk Index
Date last reviewed: February 18, 2019

11. Hong Kong Connection

11.1 Hong Kong’s Trade with Lebanon

Graph: Major export commodities to Lebanon (2018)
Graph: Major export commodities to Lebanon (2018)
Graph: Major import commodities from Lebanon (2018)
Graph: Major import commodities from Lebanon (2018)

Note: Graph shows the main Hong Kong exports to/imports from Lebanon (by consignment)

Graph: Merchandise exports to Lebanon
Graph: Merchandise exports to Lebanon
Graph: Merchandise imports from Lebanon
Graph: Merchandise imports from Lebanon

Note: Graph shows Hong Kong exports to/imports from Lebanon (by consignment)
Exchange Rate HK$/US$, average
7.75 (2014)
7.75 (2015)
7.76 (2016)
7.79 (2017)
7.83 (2018)
Sources: Hong Kong Census and Statistics Department, Fitch Solutions
Date last reviewed: February 22, 2019


2017
Growth rate (%)
Number of Lebanese residents residing in Hong Kong813-8.0

Sources: Hong Kong Tourism Board, Fitch Solutions


2017Growth rate (%)
Number of Middle East residents visiting Hong Kong129,816-0.2

Sources: Hong Kong Tourism Board, Fitch Solutions
Date last reviewed: February 22, 2019

11.2 Commercial Presence in Hong Kong


2016
Growth rate (%)
Number of Lebanese companies in Hong KongN/AN/A
- Regional headquarters
- Regional offices
- Local offices


11.3 Treaties and Agreements between Hong Kong and Lebanon

Lebanon and mainland China have a bilateral investment treaty which came into force in July 1997.

Source: UNCTAD

11.4 Chamber of Commerce (or Related Organisations) in Hong Kong

Arab Chamber of Commerce & Industry
The Arab Chamber of Commerce & Industry (ARABCCI) was established in Hong Kong in 2006 to promote commercial ties between Hong Kong, mainland China and the Arab World.

Address: 20/F, Central Tower, 28 Queens Road, Central, Hong Kong
Email: info@arabcci.org, secretariat@arabcci.org
Tel: (852) 2159 9170
Fax: (852) 2159 9688

Source: The Arab Chamber of Commerce & Industry, Hong Kong

11.5 Visa Requirements for Hong Kong Residents

A Lebanon tourist visa is required for Hong Kong residents. Generally, a visa will be granted upon arrival and the maximum duration of stay is three months.

Source: Hong Kong Immigration Department
Date last reviewed: March 6, 2019

Content provided by Picture: Fitch Solutions – BMI Research
Comments (0)
Shows local time in Hong Kong (GMT+8 hours)

HKTDC welcomes your views. Please stay on topic and be respectful of other readers.
Review our Comment Policy

*Add a comment (up to 5,000 characters)