Can Lebanon become a regional tech hub? A new law could pave the way

Report by Theresia Rahme, English Adaptation by Karine Keuchkerian

In a major shift aimed at boosting its tech sector, some companies in Lebanon will not have to pay income tax, customs duties on imported goods, additional taxes, or even social security contributions for employees. The question is: which companies qualify—and what’s making it possible?

These are technology companies benefiting from a new law recently passed by Parliament to establish free zones designed to support their operations.

For entrepreneurs looking to launch tech or electronics manufacturing businesses—producing equipment, chips, semiconductors, computers, or phones—Lebanon now offers government support with zero fees.

While the law has been approved by Parliament, it still requires implementing decrees and the appointment of a regulatory body to oversee companies and define eligibility criteria. 

That is why it is critical the law does not end up shelved, as has happened with previous legislation.

Is Lebanon equipped to support this type of industry? The answer is yes. Its proximity to Europe allows for faster shipping, and manufacturing costs are 30% to 40% lower than in many European countries.

Additionally, Lebanon has a ready labor force, with more than 10,000 engineering graduates entering the market each year and labor costs that are competitive on a global scale.

One example is Houmal Technology Park, a Lebanese company that has already achieved international success.

This company currently employs about 350 people—80% engineers and 20% technicians. Under the new plan, the company could expand to more than 2,000 employees within three years.

With operating costs expected to decrease by 30% to 35%, the law could boost profits, enable companies to hire more workers, and scale up production. As a result, Houmal’s exports are projected to grow nearly tenfold.

That is just one company. If dozens like it emerge, the plan could stimulate the economy, create thousands of jobs, and increase domestic spending. As always, however, the key is swift implementation.