Back to Promotional Activities Homepage
February 2001


Lebanon
Summary Report (1999 - 2000)

The idea of Information Society in Lebanon has emerged in a significant way during the year 1996 when the use of Internet started to attract the main actors within the Lebanese economy. Shortly defined, the Information Society is the society that is currently being put into place involving a general utilization of techniques of information and data storage and transmission at reasonable costs. Such generalization of information and data use has been accompanied, since 1996, by legal, organizational, commercial, and social transformations that have changed, sometimes profoundly, work habits and social behavior. Though one cannot say yet that the Lebanese society has reached a defined and stable model of Information Society, many experts believe that tremendous changes have occurred during the past few years and especially so during the years 1999 and 2000 which are the reference period for this report. The following presentation will stress two aspects: the public sector initiatives and the private sector initiatives.

1. The public sector initiatives

Many ministries have initiated actions pertaining to the Information Society. The most active ministries in this respect were:

Not all ministries have played a comparable role. According to the events that were reported in our previous deliveries, we can single out the importance of the achievements of the Ministry of Economy and Trade and of the Ministry of State for Administrative Reform (OMSAR). They are the principal actors that promoted the Information Society in the Public Sector through the gradual implementation of the initial step towards E-government with the help of International Bodies as the World Bank, the UNDP, and the EU.

The various actions undertaken can be classified as follows:

2. The private sector. 

The actors in the private sector fall in different categories. A separate section is devoted to each of these categories.

2.1 The local press and TV stations.

All major newspapers published in Lebanon are now appearing on the worldwide web with free access.

Many of these publications are devoting a weekly page, or a weekly issue to the ICT. Special mention is to be made of the Annahar supplement of Wednesday and of the special page edited every Wednesday by L’orient-Le Jour concerning the world of computing. Some local publications are dedicated to the ICT sector evolution. The monthly ‘Lebanon PC Guide’ and its free supplement the ‘IT News’ are completely dedicated to the ICT while Lebanon Opportunities is partially so. These publications are frequently reporting news related to the Information Society. Many foreign specialized reviews in English and French are regularly on the shelves and usually read by professionals and young university students.

A special service implemented by Annahar newspaper is a five-minute audio option allowing the visitor to listen the main headings of the daily issue.

Another trend has appeared early in 1999 and confirmed itself during the year 2000. The main Lebanese TV broadcasting stations are now present on the web with integral retransmission of their daily newsreel. Special mention is to be made for the Lebanese broadcasting corporation (LBC) < www.lbcsat.com.lb >. The Murr Television network (MTV) and the MANAR TV station. These transmissions have constituted a regular link between the resident Lebanese and the expatriates disseminated all over the five continents.

2.2 Local portals

Practically every Internet Service Provider has set up his own portal since it started business. Special mention has to be made of two portals that seem to be almost complete content wise and service wise: these are the < www.yalla.com.lb > launched in 1998 by the ISP Data Management SAL, and < www.thisiscyberia.com > launched by Cyberia net. It is worth mentioning that these two ISPs are considered among the main providers on the Lebanese market, representing together nearly 60%.

The influential press group Annahar has launched the first portal in Lebanon conceived by a community of experts from the press media. The completeness and the richness of the site < www.naharnet.com > is a model of its kind.

Naharnet Virtual Community combines all the essential information, contacts and tools that allow the Lebanese – in Lebanon and at large – to communicate, learn and create a new sense of community that is not available elsewhere. The different channels in Naharnet news desk cover up-to-the-minute local and international news, ranging from politics and technology to other subjects, handpicked by the Naharnet team of editors and presented in a concise way that saves the reader a lot of hassle.

Naharnet allows its members to organize their Mobile Office on the Net by having their own free mailbox@naharnet and their diary, appointments, to-do lists and links accessible from anywhere.

They can also enjoy the shopping experience in the virtual Shopping Mall featuring products at competitive prices and offering credit when needed.

They can also play the interactive multiplayer games. The Entertainment module offers a one-click guide to cultural events in Lebanon. The visitors can express his or her opinion freely on subjects of their choice in the Forums, Chat with people from all over the world, and join various Clubs and interest groups.

2.3 Promotion agencies and IT companies.

Many promotion and marketing companies are organizing with the main IT companies established in Lebanon various events on a yearly basis. Some of the IT companies are spending a lot of effort in organizing special short training programs targeting their staff and some of their customers to introduce the most up to date products.

One of the major yearly events is the Arabcom congress and exhibition whose main objective is to bring together actors from the telecom sector, the IT sector, the television and the Internet operators. A special feature to mention is that this event is attended by high profile companies from 17 neighboring Arab states < www.arabcom.com.lb >. Arabcom has built its reputation as specialized meeting for telecom development in the Middle East Region. It has adopted a format combining an expert congress with an exhibition aiming primarily at large corporate and public sector clients. This event is usually held in collaboration with the Lebanese Ministry of Post and Telecommunication and its landline subsidiary OGERO. Many pressing issues are debated during this gathering where decision makers from various Ministries express the official views concerning their fields of competence. A special issue is the Voice over IP service. The development of VOIP in Lebanon has been repeatedly demanded by the IT industry and telecom consultants, but so far, the public sector had not moved toward implementing the service and the private sector had been banned from offering it. The awareness benefit from such an event is obvious and unanimously considered desirable for the development of the IS.

Another yearly awareness raising event is the Termium exhibition. For the seventh year running, this event has gathered enough momentum and reputation especially in combating piracy, thus enhancing the public awareness concerning the importance of IPR law.

Termium is considered the second biggest exhibition of computer hardware and software in the Middle East. Organized in cooperation with the Professional Computer Association (PCA), it is attracting some 250 local and foreign exhibitors and more than 10000 visitors.

A special feature of this gathering is the recent participation of BSA. The Business Software Alliance, a watchdog organization dedicated to stomping out sales of illegal software, has had its representative patrolling the exhibition in search of infringements to the IPR law. This recent copyright law has brought to the Lebanese market some new international companies, the most prominent being Microsoft, which started operation in Beirut in June 1999, in direct response to the IPR law passage.

The Termium exhibition has always been the occasion when a number of business persons and public sector officials come to push the idea that Lebanon has a real potential in developing the IT sector. This is where a consortium of companies called the Byblos Multi-media Company announced plans to build a scientific high-tech free zone near Jbail in north Lebanon. That announcement was followed by the Investment Development Authority of Lebanon’s (IDAL) announcing plans to construct a Beirut Emerging Technology zone for high-tech industries. Recently in September 2000, the University of Saint-Joseph announced the creation of a technology park called BERYTECH.

3. The Universities.

The institutions of higher learning in Lebanon have all been moving toward the integration of advanced ICT courses in their curricula and the promotion of research. They are demonstrating a real and fundamental interest in adopting new technologies and steadily entering in the knowledge economy. The websites that are being developed are witnessing such an evolution:

As part of this drive towards a knowledge-based economy, many academic research groups have been founded to encourage the creation of innovative projects coupled with well-articulated business plans. These kinds of entrepreneurship clubs have been building key connections, in advanced economics, between the innovative educated young man and the world of business and finance.

Starting early January 2001, a web site devoted to the Information Society will be launched as part of the site of the faculty of economics at the University of Saint-Joseph < www.fse.usj.edu.lb >.

4. The Commercial sector.

Over the last couple of years, many websites have been launched as shopping places for various trade activities. The majority of these sites are business to customer focused, as B2B is not yet a major visible trend. The great beneficiaries of e-commerce in Lebanon are small and medium companies that can target new markets previously inaccessible. No market survey has yet assessed the volume of this business but experts are frequently reported in the press saying that the number of serious businesses is not exceeding 100 sites. The reason why this sector is not globally taking off has many reasons. The most important being the lack of confidence reflected in fear of non-delivery of goods and fraud of credit card numbers.

According to a survey of ten major actors in this field, it seems that the trust issue will remain the main concern unless an aggressive e-awareness campaign is conducted. Besides, the private and public sectors have to establish e-commerce regulations that provide consumer security. Consumers must be able to rely on procedures that will allow them to raise claims against businesses on grounds of poor product quality and non-delivery of goods. Legal frameworks are imperative to a flourishing e-commerce activity. The government has shown willingness to make progress toward the updating of its legal system. Examples of successful e-commerce ventures are < www.netcommerce.com.lb >, < www.soukloubnan.com >, < www.elmazad.com >. According to a recent statistics published by Data stats < www.datastats.com >, the number of sites registered under com.lb has reached 1467 sites. Most of these sites are just for the sake of marking the presence of the company.

The banking and financial sector.

This sector is where the most sophisticated and most complete applications have emerged. A recent press release from the Associations of Banks in Lebanon < www.abl.org.lb >, online banking has a very promising future in Lebanon partly because of the rich expatriate market and because banks have substantial cash flow to finance large scale projects. Nearly ten banks have started during 1999-2000 their own online banking ventures, providing their clients with value added services.

It remains true however, that many e-banking procedures are still bureaucratic even though banks have introduced services to facilitate and guarantee e-commerce transactions. A specific kind of electronic transactions that are becoming a common feature in urban areas is the usage of payment cards. The following table gives the complete picture as published by the Central Bank. The site of the Central Bank < www.bdl.gov.lb > is a good entry point to the banking sector in Lebanon.

Number and Usage of Payment Cards Issued in Lebanon
(For the periods ending June 2000 and June 1999)

 

1999

2000

Change

Cards

207,227

293,086

41,44 %

ATMs

323

395

22.30%

Points of Sale

7,619

8,453

10.95 %

Purchases (in $ million):

     

By residents in Lebanon

$26.55

$36.14

36.12 %

By residents outside Lebanon

$34.31

$40.85

19.05 %

Cash withdrawal ($million):

     

By residents in Lebanon

$77.13

$130.88

$69.70 %


Please note that this report has been prepared under the sole responsibility of the
ESIS II contractors.
It does not necessarily reflect the views of the Commission, nor does the Commission accept responsibility for the accuracy or completeness of information contained herein.
The ESIS Team of contractors welcomes any additional information or corrections.

navigation2.jpg (7319 octets)