The Hayek Group Newsletters and Reports

The Lebanese Diaspora: A Community of Great Importance

The #Lebanese#diaspora has the potential to play a significant role in helping to revive the country's struggling #economy. Many Lebanese expatriates have achieved success in various industries around the world and have the potential to invest in and support the development of their home country.

Lebanese entrepreneurs and business people worldwide have proved very successful in all kinds of sectors and contexts. Most Lebanese abroad are considered rich, educated and influential. Money sent to Lebanon from abroad accounted for 53.8% of the country's #GDP in 2021, finds a new study by #Mercy_Corps. Remittances and other diaspora inflows have long played an important role in Lebanon's economy, bringing in an average of $7.15bn each year over the past ten yearsHowever, there remains a great untapped potential for further collaboration between the diaspora and the Lebanese in their home country.

Examples of Lebanese diaspora leaders include #Carlos_Ghosn, the former CEO of #Nissan and #Renault, and #Carlos_Slim, the Mexican businessman and one of the richest men in the world. Other notable Lebanese diaspora figures include H.E #Issam_Fares, a businessman and philanthropist who made his fortune in the construction and real estate industry, and #Tony_Fadell, an entrepreneur and inventor, known as the "father of the iPod."

The sharp decline of the Lebanese pound in recent years has created opportunities for #diaspora investors to step into the market. The sharp devaluation of the currency has made Lebanese assets, such as real estate and businesses, more affordable for diaspora investors. They can take advantage of these opportunities by investing in a range of sectors, such as #real_estate, #tourism, and #technology. They can also provide capital and expertise to help revive struggling businesses and create #remote_jobs for locals. By investing in Lebanon, diaspora members can not only make a financial return but also contribute to the country's economic recovery.

To attract diaspora investors, the Lebanese authorities must consider implementing the following incentives:

  • Tax breaks and financial incentives for investment in specific sectors or regions.
  • Simplification of regulations and procedures related to starting and running a business.
  • Providing assistance and support in navigating the local business environment through an E. Government.
  • Encouraging the development of a strong legal framework that protects investors and their assets.
  • Offering access to local networks, resources, and reliable data to help establish credible business plans.
  • Creating Special Economic Zones with different regulations.
  • Focusing on #PPP for developing the #infrastructure, #telecommunications and #transportation sectors.

However, it's important to note that the investment environment in Lebanon is still challenging due to the political instability, lack of transparency, and weak institutions. To address this, it's important to note that the diaspora alone cannot fix the deep-rooted issues that Lebanon is facing, such as political corruption, lack of government accountability and poor governance. Diaspora investors should conduct thorough due diligence and work with reputable local qualified partners to mitigate these risks.

#Patriotism and a desire to help their fellow citizens can also be a motivating factor for many Lebanese expatriates to invest and support the development of their home country. However, a comprehensive plan that addresses these issues and encourages expats investment, transparent governance and economic development, is crucial for the country's long-term stability and prosperity.

Abdallah Hayek P.E


Hayek Group

Jan 23, 2023

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