Why trade with Lebanon?

Lebanon has been a trading nation since before the days of the Roman Empire.

The deep water port of Beirut’s container terminal handles a million containers a year (more than Marseilles). The ancient Phoenician coastal cities of Tyr, Sidon and Tripoli (not to be confused with the Libyan capital of the same name) are joined by modern motorways. There’s a thriving banking industry and a string of universities trying to satisfy the Lebanese thirst for education. Luxury restaurants line the new Zaytouna Bay Marina in Beirut. The local wines are good, ski resorts are small but expanding, the cuisine is varied with an abundance of fresh produce as the base.

Yet for all that, Lebanon seems to be a well-kept secret, at least to the British if not the French, Canadians and Australians who have recognised the opportunities presented here. Is it language? No, indeed for many native Lebanese, at least three languages is the norm – Arabic with the family, a French school and an English speaking university is common. Is it culture? Again, no. Foreigners are made welcome and foreign brands too, Burger King vies with McDonalds, Vivienne Westward, HSBC, Johnnie Walker and … well you get the picture. Is it the echo of the images of war from over thirty years ago, the first to be seen live on TV? Well, perhaps.

Let’s have a few numbers, GDP per capita is estimated at $14,400, just above Mexico and Belarus, just below Malaysia and Argentina. GDP is forecast to grow this year by 3%. Airport passengers are up 14% in the first half of 2012. Lebanon’s banking industry, thanks to tight regulation and control was little touched by the 2008/9 debt crisis and aftershocks that have echoed around Europe and the US.

So what’s wrong? Not enough electricity it’s true, but the first offshore generating barges are being commissioned. Poor internet speeds, but, again the new fibre optic cable to Marseilles and Mumbai has significantly improved that. Little publicity of the true level of business activity, well although Britain’s exports to Lebanon have grown over fivefold in the last decade to over £400 million a year; in Michael Caine’s immortal words “not a lot of people know that!”

One last thought. Indications are that Lebanon has significant reserves of offshore Gas and possibly Oil, if those prove to be correct then this renowned trading nation will have a field selling its raw petroleum and reaping the rewards. According to the English language newspaper, the Daily Star, Lebanon is educationally and culturally positioned to avoid the so-called resource curse and change its ambition from being the Switzerland to the Norway of the Middle East.

Please note that numerous sources have been used here, including Byblos bank, the Daily Star and Index Mundi.