A Good Business Environment is the most important factor contributing to an economy in any country in the world. As a country’s economy is the collective sum of its individuals income and its corporations. Therefore, the success of any country leadership is in its capability to encourage new investments, support entrepreneurship and safe guard its existing businesses.
Let us start with the basics of the basics:
If you are a rich Swiss man or a wealthy Brazilian Investor or a Lebanese Expatriate looking back to go back to Lebanon for an Investment. Your most basic requirements are probably, safety, quality of life, quality of the business Environment (Logistically speaking), a big consumer Market.
With the continuous chronically unstable situation in Lebanon, the first two conditions (Safety and quality of life) simply do no exist. However, fortunately, Lebanese people like to live, love life, love to spend more than they earn and this makes Lebanon a good Investment Market. So let us discuss the Logistical Side of business.
What is the situation of the Business Environment in Lebanon? Logistically speaking; assuming that the above conditions of security and peace are delivered; where does Lebanon stand? How easy is it to open a business in Lebanon? How easy is it to run a business in Lebanon?
Logistics performance index: Quality of trade and transport
2.41 1=low to 5=high (2012)
Logistics performance index: Efficiency of customs clearance
2.21 1=low to 5=high (2012)
Logistics performance index: Ease of arranging competitively priced shipments
2.71 1=low to 5=high (2012)
Logistics performance index: Competence and quality of logistics services
2.38 1=low to 5=high (2012)
Logistics performance index: Frequency with which shipments reach consignee within scheduled or expected time
3.11 1=low to 5=high (2012)
Logistics performance index: Ability to track and trace consignments
2.61 1=low to 5=high (2012)
Logistics performance index: Overall
2.58 1=low to 5=high (2012)
Well, if you take a look at the numbers, as a business man, you would probably ask your self, why wouldn’t you invest in UAE or Qatar or Singapore, fair question… the answer is yes… Lebanon is no longer the Pearl of the middle east.
Unfortunately non of the healthy business environment conditions are available in Lebanon, with the continuous internal and external tension, partial war spillover from Syria, high political instability, relatively low over all Logistic Performance Index, Business in Lebanon will continue to suffer, scale down and close down.
Until when? We hope for a better future for our country. Time to wake up and realize that the only way forward is together hand in hand for a bright prosperous future.
To discuss this: please visit our forum thread, Business Environment in Lebanon