UNIDO Lebanon

UNIDO LEBANON CONTINUOUS COMMITMENT TOTHE DEVELOPMENT OF INDUSTRIAL ZONES

Lebanon is facing multiple challenges due to the consecutive happenings that influenced its status quo. Starting from the Syrian war in 2011, to the deteriorating monetary and economic situation in 2019, to the increased tension on the socio-political fronts, to the ongoing impact of the COVID _19 pandemic on major businesses and industries, and recently, the devastating August 4th Beirut blast. All have proved the ongoing need for accelerated industrial development and sustainable initiatives to support productive sectors, job creation, and economic growth.

The industrial sector in Lebanon has been severely impacted by all the beforementioned challenges. These add to additional chronic structural ones mainly a non-sustainable economic model favoring consumption and services over productive sectors and an unconducive business environment leading to a limited contribution of industry to the GDP and to poor infrastructure.

In line with MoI Industrial Vision “Lebanon Industry 2025”, working in close partnership with the Ministry of Industry (MoI), the Association of Lebanese Industrialists, and the international community, industrial zone development, and inclusive and sustainable industrial development are among UNIDO’s top priorities in Lebanon.

In this context, MoI collaborated with UNIDO to develop its Strategic Plan for the Development of Industrial Zones (2013-2018), as a key policy tool to foster job creation and economic growth. On another hand, as part of the UNIDO/MoI Industrial Zones project funded by Italy, master plans and feasibility studies were completed for 5 new sustainable industrial zones: Tourbol, Joun, Baalbek-El Hermel; Al Qaa, and Baawerta.

These zones featured in the Government’s Capital Investment Plan prior to October 2019 outbreak and were expected to create approximately 31,000 jobs and impact 200 enterprises across Lebanon. At that time, the zones have attracted financial commitments of 7 million euros (USD 7.9 million) from the Italian government and 52 million euros (USD 59.3 million) from the European Investment Bank (EIB) for their construction and development. The European Bank for Reconstruction and Development (EBRD) have also considered a loan of 42 million euros (USD 47.9 million) for investments in the development of these zones.

Another important component of UNIDOs work is environmental sustainability. Through the Lebanon SwitchMed II MED TEST III project funded by the European Union (2019-2022), challenges are being tackled by mainstreaming the concepts of industrial resource efficiency and cleaner production (REC) and by fostering the principles of circular economy in two existing pilot industrial zones as means of reaching greener, more competitive and more resilient industrial zones.

Despite all challenges, the economic and financial crises, which erupted in October 2019, imposed a revision of the economic model of the country in favor of a more sovereign and resilient economy based on productive sectors. Also, with the drop in merchandise imports a result of the current financial crisis, more attention is being directed towards locally manufactured products.

Through its mandate and with the generous support of the donor community, UNIDO will continue playing its part in supporting inclusive and sustainable industrial development in Lebanon. This is underpinned by joint working and building partnerships with public and private sector partners, in order to ensure the successful implementation of projects and programs, and to positively contribute to the achievement of the UN’s Sustainable Development Goals.