The Information and Communication Technology (ICT) sector is a fast growing sector with a market size of USD 436.2 million in 2016, growing at a compounded annual growth rate (CAGR) of 7% over the 2014-2016 period. The positive performance of this sector has benefited from massive investments in the telecom infrastructure, broadband capacity and speed.
KEY FACTS AND FIGURES:
The market is expected to grow at a CAGR of 9.7% over the 2016-2019 period.
In 2017, the sector contributed USD 1.4 billion to Lebanon’s GDP.
The impact of the ICT sector on GDP, whether direct or indirect, is forecasted to be greater than USD 7 billion by 2025.
The local ICT sector comprises mostly small and medium-sized businesses.
Around 5000 high-skilled individuals are employed in software development and services companies.
The ICT industry in Lebanon spans across an array of activities that rank among the most growing in the world.
In 2017, exports of ICT related activities accounted for 4.2% of total service exports, and around 85% of firms engaged in ICT activities are export oriented.
Highly skilled and multi-lingual labor force: Lebanon ranks 18th worldwide for the Quality of its higher Educational System and 4th for the quality its Math and Sciences Education.
In 2017, Lebanon ranked 4th worldwide on the Global Ranking for Total Early Stage Entrepreneurial Activity and 3rd for New Firm Entrepreneurs Rate.
Competitive labor cost: the average wage of software engineers is 27% less than in the GCC and 55% less than in selected developed economies.
Booming regional market for ICT services: Lebanon’s access to expanding regional markets presents significant opportunities for ICT companies to serve the region.
Enabling Infrastructure: Companies operating out of Lebanon can benefit from an adequate infrastructure and an enabling business environment:
Fixed broadband penetration rate≈ 25.6% in 2016, the highest amongst the Levant countries and other MENA economies.
Mobile broadband penetration rate ≈ 53.5% in 2016, up from 43% in 2013.
A thriving supporting system: with the proliferation of incubators and business development centers and the increase of financial support by the government and international institutions.
Gaming: The mobile gaming industry in the MENA region generated around USD 2.7 billion with Lebanon revenues amounted to USD 49.9 million.
E-Health: The MENA healthcare market will be valued at USD 144 billion by 2020, with a third of the market controlled by the private sector.
AdTech: Lebanon presents a competitive advantage for the development of Adtech products, especially in mobile and search
Enterprise Software as a Service (SaaS): the SaaS market in the MENA region is expected to reach USD 411.7 million by 2019, accounting for the biggest share of public cloud services market size.
Media Streaming: Global revenues in the "Music Streaming" segment are expected to grow at a CAGR of 8% over the 2018-2020 period, providing opportunities for developers in Lebanon.
Consumer Internet: in 2017, 4.8% of the world internet users are Arabic speakers with a penetration rate of 43.8%
Financial and e-payment solutions: in Lebanon, the market is comprised of 12 online payment providers offering fast and innovative payment methods.
ICT FACT BOOK 2018
IT Investment Incentives
INVESTMENT OPPORTUNITIES IN THE ICT SECTOR 2018
Development Opportunities for Lebanon’s ICT Subsectors