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Lebanon’s Economic Crisis by Sector: Challenges and Opportunities in Manufacturing

policy brief

This brief examines the impact of the ongoing crisis in Lebanon on the manufacturing sector, based on a literature review, insights from a roundtable of experts, and other secondary data sources on the history and the recent state of the manufacturing sector. It starts with a background on the ongoing economic crisis, the history and current status of manufacturing in Lebanon, and the experience of manufacturers in other countries in dealing with similar market issues. The brief then summarises the many challenges facing industrialists, particularly those related to energy, finance, and regulations, among others. In addition, the authors highlight some advantages tied to the current crisis, such as reduced labor cost. Finally, recommendations inspired by the roundtable discussions, modern trends, and technology advances are offered as possible solutions.

Bacel Maddah is a professor and the inaugural chairperson in the Industrial Engineering and Management Department at American University of Beirut (AUB). His research interests are in retailing, supply chain management, and stochastic processes. His research is published in leading journals specialized in operations research and management science. He also consults and provides professional training.

Lina S. Maddah is an Economic Researcher at the Lebanese Center for Policy Studies (LCPS). Her areas of work include local economic development, regional economics, economic geography, location decisions, firm dynamics, and cultural and creative industries (CCIs). Lina holds a Ph.D. in Economics from Universitat Rovira i Virgili (URV), Spain, and is currently an Adjunct Professor at the Department of Economics at the Lebanese American University. 

Nadim Gharios is an industrialist in the FMCG sector. He is a director and shareholder at LibanJus, the Lebanese market leader in juice and ice-cream, and a major player in the dairy and spreads markets. Nadim holds an MBA from the Wharton School at the University of Pennsylvania and an Engineering degree from the American University of Beirut, where he was a senior lecturer for two years.


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