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Leading Sectors for U.S. Export and Investment

1-Commercial Sectors:

Automotive (AUT)

Overview

Year 2005 2006 2007 (to Aug 31)
Total Market Size 758 709 559
Total Local Production 0 0 0
Total Exports 21 25 21
Total Imports 779 734 580
Imports from the U.S. 85 93 90

(Figures are in millions of dollars and based on Lebanese Customs statistics - Section 17 / Chapter 87)

The Lebanese market of approximately 1.7 million vehicles has witnessed an increase of 15 percent in the first eight months of 2007 compared to the same period in 2006, with a total import value of $580 million. This growth is mainly attributed to the weakness of the dollar in relation to Euro. U.S. market share is expected to reach 15 percent in 2007.

Best Products/Services

Demand for Sport Utility Vehicles (SUVs) in Lebanon has been growing. According to private sector sources, around 10 percent of cars imported into Lebanon are SUVs. This percentage is expected to increase due to their heavy duty performance and poor road conditions throughout the country. Lebanese prefer American SUVs over other SUVs because of their competitive price, high quality, and long record of success in the market. Moreover, demand for U.S. automotive products such as brakes, clutches, engine lubricants, and safety accessories is increasing because they have demonstrated a quality advantage over foreign competitors.

Opportunities

The Lebanese Car Importers Association co-organizes the Motor Show, a bi-annual trade fair for the automotive industry in Lebanon. The Motor Show presents significant opportunities for U.S. companies to introduce their products and services to the Lebanese market. For more information, you can go to www.promofair.com.lb.

Web Resources

For additional information on Lebanon’s market for automotive, please email Naaman Tayyar.

Air Cond / Refrigeration Eq ACR

Overview

Year 2005 2006 2007 (to Aug 31)
Total Market Size 826 869 704
Total Local Production 79 80 75
Total Exports 314 334 291
Total Imports 1,061 1,123 920
Imports from the U.S. 73 98 92

(Figures are in millions of dollars and based on Lebanese Customs statistics - Section 16 / Chapter 84-85)

Lebanon’s market for air conditioning and refrigeration equipment has witnessed a growth of 33 percent in the first eight months of 2007 compared to the same period in 2006, with a total import value of $920 million. This growth is mainly attributed to the weakness of the dollar in relation to Euro. U.S. air conditioning and refrigeration exports to Lebanon reached $92 million in first eight months of 2007, and U.S. market share is expected to reach 13 percent in 2007.

Best Prospects/Services

U.S. products have an advantage over European products in the air conditioning and refrigeration sector due to their high quality and heavy-duty performance. Moreover, demand for U.S. products is increasing due to the weakness of the dollar in relation to Euro.

Web Resources

For additional information on Lebanon’s market for air conditioning and refrigeration, please contact Naaman Tayyar.


Drugs / Pharmaceuticals (DRG)

Overview

Year 2005 2006 2007 (to Aug 31)
Total Market Size 437 518 429
Total Local Production 17 15 16
Total Exports 9 8 7
Total Imports 429 511 420
Imports from the U.S. 28 38 30

(Figures are in millions of dollars and based on Lebanese Customs statistics – Section 6 – Chapter 30)

Lebanon is the leading importer of pharmaceutical drugs in the Levant with over 50 pharmaceutical importers. Total pharmaceutical imports to Lebanon reached $420 million in the first eight months of 2007. Since, the local pharmaceutical industry is weak, imports constitute around 96 percent of the total available in the market. U.S. products account for about 7 percent of total imports.

Best Prospects/Services

U.S. products have an advantage over European products in biotechnology, high-tech, anti-cancer, and cardiovascular fields. Moreover, any new leading American drug that is not yet manufactured in Europe is well received in Lebanon.

Web Resources

For additional information on Lebanon’s market for drugs and pharmaceuticals, please email Naaman Tayyar


Medical Equipment (MED)

Overview

Year 2005 2006 2007 (to Aug 31)
Total Market Size 126 150 102
Total Local Production 1 1 1
Total Exports 6 8 5
Total Imports 131 157 106
Imports from the U.S. 32 42 25

(Figures are in millions of dollars and based on Lebanese Customs statistics – Section 18 / Chapter 90)

Lebanon’s market for medical equipment has witnessed a slight growth of two percent in the first eight months of 2007 compared to the same period in 2006, with a total import value of $106 million. This growth is attributed to the weakness of the dollar in relation to Euro. U.S. medical exports reached $25 million in the first eight months of 2007 and U.S. market share is expected to reach 23 percent in 2007.

Best Prospects/Services

U.S. products have an advantage over European products in the medical sector due to their high quality and long record of success in the Lebanese market. Moreover, demand for these products is increasing due to the weakness of the dollar in relation to Euro.

Opportunities

Lebanon is an ideal location for establishing a regional office to cover the Levant, including Iraq. The Lebanese market has been used as a platform for testing U.S. products prior to introducing them to the rest of the Levant market. Opportunities to form partnerships with local companies are available in the medical and healthcare sectors.

Web Resources

For additional information on Lebanon’s market for medical equipment, please email Naaman Tayyar.


Apparel (APP)

Overview

Year 2005 2006 2007 (to Aug 31)
Total Market Size 419 424 270
Total Local Production 195 200 133
Total Exports 63 67 49
Total Imports 287 291 186
Imports from the U.S. 5 7 4

(Figures are in millions of dollars and based on Lebanese Customs statistics – Section 11 / Chapters 61, 62, 63)

Lebanon attracts a large number of Arab tourists every year who significantly boost retail activity in Lebanon, resulting in steady growth in the apparel sector. U.S. apparel exports to Lebanon reached around four million dollars in the first eight months of 2007, constituting around two percent of total apparel imports to Lebanon. Many U.S. brands, including Tommy Hilfiger, Nautica, Seven Jeans, Rock and Republic, True Religion, Polo Ralph Lauren and Timberland are very popular in the Lebanese market.

Best Prospects/Services

The trend in Lebanon is moving from high-end haute couture to casual wear. Most Lebanese consider U.S. brands to be the leader in casual wear. Thus, demand for U.S. apparel has been increasing steadily. Lebanese buyers regularly travel to Magic Apparel Show in Las Vegas and Coterie Show in New York to explore the latest trends in the U.S. fashion industry.

Web Resources

For additional information on Lebanon’s market for apparel, please email Naaman Tayyar.


Education Services (EDS)

Overview

Year 2005 2006 2007 (estimated)
Total Market Size 125 125 125
Total Lebanese Students 124 124 124
Total Foreign Students in Lebanon 1 1 1
Total Lebanese Students Abroad 3 3 3
Lebanese Students in the U.S. 2 2 2

(Figures are in thousands of students and based on AMIDEAST statistics)

Lebanon has one of the best educational systems in the Middle East. There are currently 125,000 students enrolled in universities throughout Lebanon and over 2,100 Lebanese students are currently studying in the U.S.

Best Prospects/Services

Demand for graduate studies in the U.S. has been increasing, especially in the fields of business, computer science, engineering, medicine and fine arts.

U.S. educational franchises are doing well in Lebanon. The U.S. franchise New Horizon, which provides computer training, has over 45 percent of the Lebanese market. The U.S. franchise Berlitz, which provides language training, has approximately 10 percent of the market.

Web Resources

For additional information on Lebanon’s market for education, please email Maya Barhouche.


Agricultural Sectors

According to Lebanese Customs statistics (chapters 1-24), Lebanon’s total agricultural imports reached $1,249 million in the first eight months of 2007. Out of which, $119 million, equivalent to 10.5 percent, are from the U.S. Major U.S. agricultural exports to Lebanon include dairy products (10.7 percent), cereals (10 percent), beverages and spirits (eight percent) and tobacco (seven percent).

Web Resources

For additional information on Lebanon’s market for the agricultural sectors, please email Naaman Tayyar.

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