Lebanon’s liberal economy is based on competition and private ownership. Services and banking sectors predominate, representing 70% of the country’s gross national product. Agriculture constitutes 10% and the industrial sector constitutes the remaining 20%.

* Finance and Banking

In January 1996, the Beirut Stock Exchange (BSE) resumed trading. By the end of 1998, thirteen companies were listed with a total market capitalization of $2.4 billion. Favorable economic and financial conditions since the end of the civil war in 1991 have led to an improved monetary and banking situation as well as a stable currency. Although financial institutions still comprise the core of Lebanon’s stock exchange, the BSE has diversified.

* Industry and Manufacturing

The industry and manufacturing sector has performed well in recent years. According to the General Directorate for Industry, 459 new industrial enterprises were established in 1996, employing nearly 3,414 people and requiring the approximate investment of LL101 billion ($65 million). The industrial sector reported a 3.7% increase for new factories in 1998 compared with the same period in 1996.

* Tourism

Lebanon offers travelers a diverse scope of activities, ranging from mountain skiing to swimming in the Mediterranean. The hotel industry in Lebanon has begun a restoration project valued at $500 million. In 1997 the Ministry of Economy and Trade ,the Ministry of Tourism, airlines, and local merchants launched Lebanon’s first annual “shopping month,” which was designed to attract regional tourists for duty-free shopping and entertainment. Number of Tourists : 700,000 (1999)

* Agriculture

In recent years, the agricultural export sub-sector has performed well and has accounted for approximately 20% of total exports. Lebanon has been an exporter of fruit and vegetables to other Arab states such as Syria, Saudi Arabia, Jordan, Kuwait, and Iraq. Other important crops include olives, cane and beet sugar, potatoes, wheat, tobacco, and barley.