Economic Research | Lebanon This Week | Lebanon This Week 566 | McKinsey recommends 160 initiatives to address economic challenges | Lebanon | Byblos Bank

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Byblos Bank

Lebanon This Week 566

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McKinsey recommends 160 initiatives to address economic challenges

The Ministry of Economy & Trade issued the report that the Lebanese government commissioned from consulting firm McKinsey & Company titled "Lebanon Economic Vision", with quantifiable targets for 2025 and for 2035. The study identifies five economic sectors that present the highest economic potential for Lebanon, which are agriculture, industry, tourism, financial services, and the Knowledge Economy. It provides a list of 160 priority initiatives related to the five economic sectors, to the Lebanese Diaspora, and to government actions in infrastructure, public administration, fiscal policy and legislation to support the sectors.   

The study allocates 15 initiatives to the agricultural sector in order to achieve a "high-value, high-quality" sector that generates "sustainable wealth" for farmers and rural communities. The initiatives aim to enhance yield and quality; to improve local food markets; to shift agricultural cultivation towards higher-value crops and livestock such as tomatoes and avocadoes; and to unlock export potential by facilitating access to international markets, among others. The study considers that the first phase, which consists of the highest priority initiatives, should focus on developing a regulatory framework to legalize the cultivation of cannabis for medicinal purposes, assuming that government policies are in place. 

Further, the report assigns 12 initiatives to the industrial sector to transform Lebanon into a "niche regional leader in creative and high-value industries and a hub for regional processing". The initiatives aim to prioritize high potential sub-sectors, to develop National Integrated Industrial Parks and to improve access to finance, among others. According to the study, the highest priority initiative is to develop an industrial construction technology zone close to the northern border in order to capitalize on the reconstruction efforts in Syria. 

In addition, the study earmarks 22 initiatives to the tourism sector, with a focus on business and specialized medical tourism. The initiatives focus on increasing the number of leisure visitors by building core offerings in Beirut, Byblos and Tyre, and by developing ultra-luxury "eco-tourism" hubs. They also aim to promote Lebanon as a "high value for money" destination for business tourists, as well as to position Lebanon as a "convenient" destination targeting regional medical tourists, among others. The highest priority initiative is to earmark about $14m for marketing Lebanon in 15 Arab countries, core European markets and the main countries of the Lebanese Diaspora; as well as to launch a national campaign to clean public beaches. 
 
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