The Lebanese information and communications technology (ICT) market was worth an estimated USD 436.2 million in 2016 and is expected to increase to USD 543.5 million by 20191. The market grew at a compound annual growth rate (CAGR) of 7% from 2014 to 2016, and it is expected to grow at a CAGR of 9.7% from 2016 to 2019. In 2013, the ICT sector made up about 3% of Lebanon’s GDP, and by 2017, its direct and indirect effects on GDP are expected to total more than USD 6 billion. Between 2013 and 2015, the Lebanese IT sector fell short of its potential, however from 2017 on, the market was predicted to rise rapidly. Rising income, falling device prices, modernization activities undertaken by businesses and the public sector, upgrades to communication infrastructure, and improved business sentiment are among the factors driving the market’s progress.
Companies profiling
There are over 800 businesses in the local ICT sector, largely small and medium-sized enterprises. The majority of these enterprises are distributors and dealers because the market is still controlled by global ICT hardware manufacturers and their local agents and distributors.
However, software development accounts for 40% of all businesses, and the industry is moving away from retail and wholesale toward innovation and content creation.
About 5000 people are employed by businesses in the software development subsector, which conducts three main operations.
Software products are primarily for the banking, healthcare, and education industries. These make up about 48% of all software companies.
Companies offering web solutions make up 38% of all software companies and are mostly engaged in web hosting, web design, and development, as well as e-services.
A little over 14% of all software companies are engaged in mobile services and applications.
Export activity
In the area, Lebanon is quickly becoming a top supplier of software goods and services. In 2014, it is anticipated that 26.5% of all service exports were tied to ICT services. More than 60% of ICT-related businesses are export-oriented, and the vast majority of their earnings come from operations outside of Lebanon. Mobile applications and vertical software are important exporting items.
Lebanese exports primarily go to the Gulf region, with other Middle Eastern nations coming in second. Third on the list are European markets, with France at the top. Currently, African nations are becoming a more significant export market and are being progressively pursued by Lebanese businesses.
Investment trends
Lebanon already has a history of prosperous national and international businesses based in Beirut. In the communication and software markets, notably in the Middle East but also in Africa, Europe, and the US, Lebanese ICT companies have established themselves as significant participants. In addition to these well-established businesses, creative startups have also been appearing in a variety of industries, including gaming, e-services, and mobile apps.
The high-tech environment in Lebanon is also significantly influenced by multinational firms. Well-known foreign ICT corporations have started operations through their Beirut-based subsidiaries in the Lebanese sector. These companies include, among others, Microsoft, Ericsson, Cisco, and Intel.
E-commerce laws
A package of laws supporting the ICT industry has been written by the Ministry of Economy and Trade and presented to the Parliament. This bundle consists of new and amended laws created to support e-commerce in the nation. Consumer protection, privacy, copyright, electronic transactions, and cybercrimes are all covered by laws.
Telecommunications law
To manage the telecommunications services industry and establish the guidelines for its transfer to the private sector, Law 431, often known as the Telecommunications Law, was published in 2002.
Following this, the Telecommunications Regulatory Authority (TRA) was established to control sector liberalization and guarantee the development of a competitive environment.
