Due to the regional instability and the spillover of the Syrian crisis, foreign direct investment flows to Lebanon have declined slightly from previous years' averages, registering a figure of USD 2.83 Billion, down by 26.6% from 2012 levels, in the backdrop of a GDP growth rate of 1.5% according to the latest World Investment Report by the UNCTAD.  Despite this decline, foreign investments to Lebanon have never stopped, with various projects being initiated across various sectors, mainly ICT and AgroFood.

The decline in FDI figures has been linked by economic experts primarily to the considerable drop in the FDI flows channeled from Gulf countries into the Lebanese real estate sector. 

Fig 1: FDI Inflows to Lebanon (USD billion I 2008-2103)

 Source: UNCTAD

Lebanon fared better compared to other countries, being one of the largest non-oil economies recipient of FDI, as FDI to the region as a whole continued their slide, with the MENA region share of the world FDI dropping in 2013, compared to 2010. The political disturbances that swept the region over the last 2 years had by all means an impact on the capacity of the region to attract investments. 

 Fig 2: FDI Inflows in the MENA Region (USD billion I 2013)

    

FACTS & FIGURES

• Today there are around 180 companies in the sector (or 4.5% of total industrial establishments), employing 3,693 workers or 5.2% of the total industrial labor force
• The industry is mostly dominated by small and medium-sized companies, with 45.5% of firms employing 5 to 9 workers, and 86.3 percent employing less than 35 employees
• Printing activities in Lebanon are mostly geared towards commercial (e.g., newspapers, books, leaflets, etc..) and industrial purposes (such as packaging) as well as recent developments in security and high-tech activities. The Lebanese printing industry is dominated by 10 large players that cater for the local and international markets.  2 of these players specialize in packaging
• Lebanon is a net exporter of printed matters; with exports accounting for 4% of total exports in 2013
• Export partners in this particular industry are Iraq, Saudi Arabia, Jordan, UAE and Syria. Together, they account for more than 60% of total exports. New markets are being formed nonetheless in West Africa and Europe with key players already exporting to these destinations

COMPETITIVE ADVANTAGES

• Well-Established Industry: Owing to the industry's historical position as the printing hub in the region, local printing presses have organically grown expertise and regional presence over time and remain well positioned in the region with branch offices in the GCC, West and North Africa.
• Relative Cost Competitiveness: labor cost for a qualified operator in Lebanon carries about a 40% advantage over an Eastern European location
• Quality & Efficiency: Lebanon has a value-add advantage as far as quality of printing and binding, especially for hard cover books goes
• Legal Framework: Lebanon compared to other Arab countries enjoys greater legal assurances for the freedom of expression, this makes printing in Lebanon a good proposition for publishers in surrounding countries