Lebanon opts for cannabis farming as an economic rescue plan
Lebanon, currently grappling with a prolonged financial meltdown and a struggling economy, is considering medical and industrial cannabis cultivation as a potential solution to revive its economy. The Middle Eastern country aims to generate between $1–3 billion annually from this sector, boosting hard currency inflow, job creation, and economic diversification.
Since the establishment of the National Authority for the Regulation of Cannabis Cultivation in Lebanon, the government has been working towards establishing a comprehensive and integrated cannabis cultivation industry. The regulatory framework is still being finalized, with full supervision from cultivation to export, including soil and water testing, licensing farmers, supervising packaging and manufacturing, and coordinating with relevant ministries.
The medical and industrial cannabis market is estimated to be worth billions annually, with applications in pharmaceuticals, cosmetics, food, and other industries. Lebanon's favorable climate and emerging global cannabis market opportunities make it an attractive destination for this sector. The Bekaa region, in particular, is expected to benefit from job creation and economic integration.
Dani Fadel, head of the National Authority for the Regulation of Cannabis Cultivation, emphasizes the importance of international cooperation for the success and sustainability of the cannabis sector. Partnerships with countries experienced in cannabis production will be essential to guarantee compliance with global standards and integrate advanced technologies in cultivation and pharmaceutical manufacturing.
However, progress has been somewhat slow due to delays in appointing members to the regulatory authority and finalizing necessary implementing decrees and control systems. These key regulatory steps are currently underway, with the government working toward establishing a fully operational cannabis cultivation industry by 2025.
The idea to legalize and regulate cannabis cultivation was supported by McKinsey & Co., which in 2019 estimated the sector could generate up to $1 billion annually in state revenue. More recent government forecasts have expanded this estimate to as much as $3 billion, reflecting the emerging opportunities in the global cannabis market.
Despite the potential economic benefits, it's important to note that production in Lebanon will be strictly limited to legal medical and industrial purposes. The authority will decide this year how to handle cannabis crops planted before its creation, following laboratory testing.
Basic needs such as food and medicine have become a daily struggle for many Lebanese citizens. The cannabis cultivation project is seen as a potential window of hope for Lebanon's economic recovery. With international cooperation, strict regulation, and a focus on quality and export markets, Lebanon could position itself as a regional hub for cannabis-based products.
References:
- Al Jazeera
- Reuters
- The Daily Star
- The National
- The Guardian
To achieve the projected revenue of $1–3 billion annually from medical and industrial cannabis cultivation, Lebanon's government is dedicating efforts to regulate and establish a comprehensive industry, from soil and water testing to licensing farmers, packaging, manufacturing, and coordinating with relevant ministries. International partnerships with nations experienced in cannabis production will be essential to guarantee global standards compliance and integrate advanced technologies in cultivation and pharmaceutical manufacturing, as emphasized by Dani Fadel, head of the National Authority for the Regulation of Cannabis Cultivation.
