We have seen, in the recent weeks, dramatic events that occurred in Lebanon. If the safety of the country hasn't deteriorated, it's currency has been devastated. Although the currency is officially pegged to the dollar at 1500 LL, the market value is now at 2500 LL and rising.
This drop in the currency can definitely be exploited in many ways.
If salaries and rent have kept the same price in LL, it has lowered in any other currency. It means that labor cost just dropped (from a foreign perspective). Now although Lebanon doesn't have much prime resources, Lebanon has a very wide range of industrial production and of professional services.
This drop in the currency can definitely be exploited in many ways.
If salaries and rent have kept the same price in LL, it has lowered in any other currency. It means that labor cost just dropped (from a foreign perspective). Now although Lebanon doesn't have much prime resources, Lebanon has a very wide range of industrial production and of professional services.
The Industrial Sector: Competitive more than ever
Lebanon has always been an important producer in the Middle East in pharmaceuticals, cosmetics, printing, foodstuff and beverages. Major pharmaceutical brands like Pfizer, Merck, Sanofi are producing their products in Lebanon and ship them in the region. Fresh and canned food are being produced in Lebanon and delivered under many different labels all over the world. Olive oil is in the same category but since the roman empire.
Those products have been competing with international markets for a long time. Now, production cost has decreased by tremendously and is still decreasing further. Lebanon's industry is now able to compete even more.
The Service Sector: Cheaper talent
In the late 2010s, many companies have moved their activities to Lebanon from UAE. Firms providing design, accounting, consulting... but why?
Talent availability: Lebanon hosts the best universities in the middle east. LAU, AUB are considered the best English speaking universities in the Middle East. They rank in the top universities in the world (according to the QS university ranking 2020). Young teens travel to Lebanon to attend those universities and get a degree from those reputable institutions. USJ, Alba, and LU provide similar quality of education but in French and Arabic.
Hub of Creativity: Lebanon hosts world prestigious designers in fashion like Elie Saab, Zuhair Murad and Rabih Keyrouz; in advertising, architecture, programming... The standards are high and the talents are competing with each other.
Shipping: Great location but some constraints
The geographical location of Lebanon allows to supply many countries in Europe, Middle east and Africa. Simultaneously, its location is near many countries producing raw materials and semi-finished goods.
Unfortunately, politics have made shipping by land very difficult. The only reliable method of shipping available is sea or air.
Payment: The major issue
During the economic crisis, faith in the banking system has dropped incredibly. To a point where companies do not accept bank transfers to their bank account. Instead, open accounts outside Lebanon in order to be able to use that money. Cash is always accepted but amounts exceeding 10 000 USD are harder to take in a commercial plane.
TLDR: Conclusion
Yes, there has never been a better time to buy from Lebanon. Quality of goods and services have always been to the highest standard and prices are now at a historic low. There are just two factors that can make or break: Shipping must be by air or sea and payment must be done outside of the country.
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