Saudi Arabia Resumes Lebanese Exports, Boosting Economy and Confidence

Saudi Arabia's decision to resume receiving Lebanese exports has sparked optimism among Lebanese business and farming communities, signaling a potential return of a crucial foreign market after five years of disruption. This move is viewed in Lebanon as more than just a trade measure; it represents a new stage in rebuilding confidence in the Lebanese state and offers a vital lifeline to sectors battered by shrinking export markets and the country's prolonged economic crisis.

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The impact of this step is very good economically and politically. Economically, it is very important because Saudi Arabia was a key destination for Lebanese exports.

The Lebanese Agriculture Ministry described the decision as an economic and development step of national importance. Officials believe it will help Lebanese farmers remain resilient, restart production cycles, and revive sorting, packaging, and export chains, directly benefiting thousands of families reliant on agriculture for income. This positive development is expected to have a swift and beneficial impact on Lebanon's productive sectors, particularly industry and agriculture, while also helping to attract much-needed foreign currency.

Economist Walid Abu Suleiman told Asharq Al-Awsat that Saudi Arabia was a key destination for Lebanese exports, ranking third among importers with approximately $240 million in 2020. He characterized the reopening of the Saudi market as a "positive shock for the Lebanese economy," emphasizing its importance beyond reviving exports to supporting monetary stability in a country facing a severe shortage of foreign currency. "The more exports increase, the more foreign currency enters Lebanon," he noted.

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This step is also very important for the monetary situation, because the more exports increase, the more foreign currency enters Lebanon. We know the extent of Lebanon’s suffering today in preserving what remains of its dollars and hard currencies.

Abu Suleiman further highlighted the Saudi market's significance within the Arab economic system, representing about 85% of Gulf markets. He believes Lebanese products have substantial room for growth, with the potential to increase exports significantly from their current figures if quality and competitive pricing are maintained. The industrial and agricultural sectors, especially food processing and beverages, are anticipated to be the primary beneficiaries of this renewed market access.

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We must not forget that the Saudi market represents about 85% of Gulf markets. If we improve our products and succeed in offering quality goods at competitive prices, we can obtain a larger share of this market and increase our exports.