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FDI Data

Foreign Direct Investments flows (FDI) to Lebanon jumped by 9% in 2016 compared to 2015 reaching a value of 2.56 USD Billion, reversing the trend of the previous year and overall FDI flows to the region, again highlighting the confidence of investors in Lebanon’s economy.

 

FDI INFLOWS TO LEBANON (USD billion |2008- 2016)

FDI INFLOWS TO LEBANON (USD billion |2008- 2016)

Source: UNCTAD World Investment Report 2017

 

Indeed the whole West Asia region which Lebanon belongs to, registered a slump in FDI fuelled by weak oil prices, fiscal restructuring and political uncertainty. More specifically, FDI flows to the region registered a 2% decline to reach USD 28 billion but appeared to stabilize after eight consecutive years of decline. 


Turkey, Saudi Arabia, and the United Arab Emirates accounted for the lion’ share of inward FDI stock in the region and Turkey was hard hit by a retraction of foreign investors amidst local political uncertainty.


FDI INFLOWS TO WEST ASIA REGION (USD billion |2008- 2016)

FDI INFLOWS TO WEST ASIA REGION (USD billion |2008- 2016) 

Note: The West Asia region includes Turkey and Gulf countries as per the UNCTAD classification

Source: UNCTAD World Investment Report 2017

 

In relative terms, when accounting for a country’s size and GDP relative to FDI inflows, Lebanon stands out as the top performer in the region with FDI inflows accounting for 4.94% of GDP.

 

FDI INFLOWS TO THE MENA REGION (USD billion|2016)

FDI INFLOWS TO THE MENA REGION AS A % OF GDP (%SHARE|2016)

Source: UNCTAD World Investment Report 2017


The trend in the West Asia region follows the trend in Global FDI inflows which reached USD 1.75 trillion in 2016, a 2% decrease from 2015 levels, as economic growth and world trade volumes remain weak as per the latest World Investment Report issued by UNCTAD.

 

Developing economies were the hardest hit by a reduction in FDI most notably Asia (including China, Singapore), West Asia, Latin America as well Africa, which were impacted by a continuing decrease in oil prices and slowing economic growth. More specifically FDI flows to developing economies dropped by 15%, with a 14% drop in Asia and 3% drop in Africa.

 

Developed economies on the other hand registered a moderate increase in FDI most notably driven by an increase in M&A activity in North America.  The EU didn’t register such a positive performance as a result of political transitions in most economies leading to low growth prospects in the EU making it less attractive for multinational companies compared to other investment destinations.


REGIONAL CONTRIBUTION TO GLOBAL FDI FLOWS (USD billion|2014-2016)

REGIONAL CONTRIBUTION TO GLOBAL FDI FLOWS (USD BILLON|2014-2016)

Source: UNCTAD World Investment Report 2017


In terms of most attractive investment destination, the USA remained the number one preferred destination for investors first among host economies in 2016, with around USD 391 billion of FDI inflows registered. Inflows to United Kingdom followed (USD 254 billion), as did inflows to China (USD 134 billion), and Hong Kong (USD 108 billion).


FDI INFLOWS: TOP 10 HOST ECONOMIES (USD Billion l 2016)

FDI INFLOWS: TOP 10 HOST ECONOMIES (USD Billion l 2016)

Source: UNCTAD World Investment Report 2017

Get in Touch
Lazarieh Tower, 4th Floor, Emir Bechir Street, Riad El-Solh Beirut, Lebanon, P.O.Box 113-7251
Phone
+961 1 983306 / 7 / 8
Fax
+961 1 983302 /3
IDAL FDI MONITOR Q1 2017
UNCTAD WORLD INVESTMENT REPORT 2017