Sourcing in Lebanon

Overview by
Type of Production
The Lebanese industry is one of the most important sector for the economy of the country because it is a source of employment. The main challenge will be to maintain high employment level while maintaining the competitive operator in an unfavourable economic situation. This sector is less diversified than other ten sub-sectors which compose it and with which we are the most common:

- Plastic Industry: The main companies produce containers, tubes, household items or promotional material . Some of them are very competitive and have set up subsidiaries abroad;
-Textile Industry: mainly represented by spinning, tisserant and prêt à porter industries. This activity is very export oriented and more than 50% of production is sold abroad
- Furnishing Industry: thanks to sustained domestic demand, the major companies have set up modern production units and are now internationalising their market;
- Paper industry: this sector has also invested a great quantity in modernising production tools;
- Marble industry: due to a state-of-the-art equipment, this industry grew with the domestic demand engendered by the reconstruction. It exports now to the Gulf and to Europe;
- Cement industry: it was the main industrial production after the war. It decreased henceforth considering the realisation already operated for the main projects of infrastructure.


The biggest companies, employing more than 50 persons, represent less than 1 % of the total number of industries in the country. Furthermore, the Lebanese industry is mainly detained by families and thus very fragmented. One of the major challenge in this sector will be to improve the quality of the production. Indeed, the regional competition is strong, in particular after the opening of certain bordering countries such as Syria and Jordan. Simultaneously, the production costs of Lebanese products are high and make them uncompetitive in the export. High costs are due to the workforce education level, often high, the cost of social security contribution and energy costs.

Manufacturers Associations of the Main Industries
Association of Lebanese industrialists

Type of Manufacturers

Original Equipment Manufacturers
In Lebanon, OEM are in general manufacturers of parts and accessories for the automotive industry, the informatics industry and electronic industry. Within Lebanese OEM, you may find large groups such as Wacom.
Original Design Manufacturers
Numerous subcontractors had to adapt to their industrial client's demand and take a larger part in the industrial production process. They grew from simple manufacturer to decision helpers or even market introducers of their products.
Subcontracting in Lebanon is important and dynamic. It is overall developed in sectors such as informatics and electronics. The country is appreciated for its qualified and cheap labour force.
Useful Resources
Investment Development Authority of Lebanon

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