Saudi Arabia's decision to resume accepting exports from Lebanon has sparked hope among Beirut's long-shaken production and foreign trade circles. The five-year disruption had led to the closure of one of Lebanon's most important export markets.
The decision is seen not only as a commercial step but also as part of a broader process aimed at restoring trust in state institutions in Lebanon. Expectations for economic and institutional normalization under President Joseph Aoun and Prime Minister Nawaf Salam have also come to the forefront with this development.
Ministry of Agriculture: An Economic and Development Step
Lebanon's Ministry of Agriculture stated that the decision is not a mere trade regulation but an economically and developmentally significant step of national importance. The ministry noted that this development will help farmers stay afloat and revive the agricultural production cycle.
According to the ministry, the decision will contribute to the resumption of sorting, packaging, marketing, and export chains. Thousands of families who depend on agriculture for their livelihood are expected to benefit directly from this process.
Expectations of Foreign Currency Inflows to the Economy
Economists believe the Saudi decision will quickly impact Lebanon's production sectors, especially industry and agriculture. It is also expected to open the way for increased foreign currency inflows into the country.
Economist Walid Abu Suleiman described the decision as significant both economically and politically. He reminded that Saudi Arabia is a key target for Lebanese exports, with Lebanon's exports to the kingdom reaching approximately $240 million in 2020.
Abu Suleiman characterized the reopening of the market as a "positive shock" for the Lebanese economy. He explained that as exports increase, more foreign currency will enter the country, contributing to monetary stability in Lebanon, which is suffering from severe foreign currency shortages.
A Critical Threshold for Farmers
The decision was welcomed especially in the agricultural sector, as Lebanese farmers have suffered significant losses since the Saudi market closed in 2021.
Ibrahim Tarshishi, President of the Lebanese Farmers National Federation, described the development as "a historic day in the life of the Lebanese economy." He said that Saudi Arabia's removal of obstacles to Lebanese agricultural exports has revitalized the economy and reopened normal trade channels with Gulf markets.
According to Tarshishi, agricultural trade relations between the two countries have a history spanning more than half a century. For many years, Saudi Arabia held the top position with about a 50% share in Lebanon's agricultural exports to Arab countries.
Export Preparations and Transportation Plan
The Ministry of Agriculture is expected to hold a coordination meeting to prepare for the resumption of exports. The meeting will include customs, IDAL, chambers of commerce, inspection companies, exporters, refrigerated transport owners, and agricultural unions.
Discussions will focus on how to reorganize exports, the operation of land and sea transportation, and the procedures for transitioning to Gulf markets.
Tarshishi explained that in the past, more than 30 trucks per day transported vegetables and fruits from Lebanon to Saudi Arabia, amounting to about 1,000 tons. Additionally, around 1,000 tons of goods transiting to other Gulf countries also passed through Saudi territory.
New Era Expected for Lebanese Products
Grapefruit, pears, peaches, plums, and other seasonal fruits were among the most demanded Lebanese products in the Saudi market. Tarshishi said these products were the main export points to the kingdom during their production seasons.
The farmers' representative also emphasized the heavy damage the agricultural sector has suffered in recent years. Lebanon normally exports about $200 million worth of agricultural products annually, but losses over the past five years have exceeded $1 billion due to the closure of the Saudi market and related markets.
The impact of the decision is expected to extend beyond farmers to a wide chain including sorting and packaging centers, cardboard, wood and plastic production, transportation, and price formation. It is also noted that the surplus supply of agricultural products in recent years has forced many producers to sell below cost.
