A short, informative guide for doing business in Lebanon gives any interested international corporation useful information on how to venture into Lebanon's reviving economy.

A Foreign Company Guide

Few other countries in the Middle East offer a business environment as open to outsiders as that of Lebanon. The constitution and other laws guarantee the protection of private ownership, the free flow of funds in and out of the country, freedom of foreign exchange, the free exploitation of business opportunities, freedom of contract between parties and a free banking system. Certain protective regulations are, however, applied in financial services and the banking sector.
Lebanon's private sector is energetic, innovative and experienced in international matters, and its payment record is good. Foreign firms are recommended to always closely examine potential partners.


Business Opportunities

Since the end of the war, business opportunities for foreign firms have opened in a number of sectors. The private construction and real estate sector has been very active in recent years. Great potential exists for international architects, contractors and suppliers. Lebanese banks are undergoing a dramatic process of capital raising and modernization.


Regulatory Framework

For companies wanting to take part in Lebanon's re-emergence, local laws and regulations offer an encouraging framework:
- The right to private property is guaranteed by the constitution.
- Lebanon's laws allow establishment of a wide range of business entities.
- Holding and offshore companies are recognized and encouraged.
- Local financial services are well developed and banks are highly experienced in international transactions.
- Banking secrecy and bank supervision laws are strictly enforced by the Central Bank.
- All important tax rates have been reduced substantially in recent years. Today, maximum business income tax is set at 10%. Personal income tax ranges from 2% to 10% and the withholding tax is fixed at 5%. In December 2001, Parliament adopted the VAT law, which became effective on February 1, 2002. VAT is levied at a single rate of 10 per cent. on all goods and services, subject to certain exemptions, such as medical and educational services.


Public Tenders

Official tendering procedures are kept deliberately strict. The vast majority of Lebanese public sector projects require foreign or local companies to go through an official tendering process. Local tendering procedures have been praised as fair and transparent by several international credit agencies. As elsewhere, however, foreign companies are advised to consult the commercial sections of their home country's embassy about recent developments that may be of interest.


Customs Duties and Trade Restrictions

Lebanon's foreign trade and customs regime has been substantially simplified in recent years. Today, the country has among the lowest ad valorem rates in the region. Lebanon has a very open trade regime with virtually no discriminatory barriers against foreign imports. During the last four years, the foreign trade regime has undergone important changes, which are expected to continue. The general trend in local trade regulations is towards easier rules and internationally accepted standards. Major changes are expected on Lebanon's integration into the European Union's Mediterranean Free Trade zone.


Lebanese & Regional Links

Below is a list including some of the main financial and Lebanese links which might be of assistance in providing answers to diverse queries: