The President of the Lebanese Industrialists Association, Salim Zeenni, confirmed that Lebanon’s industrial sector has continued production even during the most difficult periods the country has faced. In remarks to Leb Economy, he noted that between 2020 and 2025 Lebanon endured a series of consecutive crises, starting with the COVID-19 pandemic, followed by the severe financial crisis, and later the 2024 war. Despite these challenges, the industrial sector remained resilient and supportive of the country.

Zeenni stressed that Lebanese industrialists remain committed to their country. “The crisis today is undoubtedly significant, but the industrialist who is rooted in his land remains committed to the people of his country. He does not leave; he stays and continues to work and produce,” he said.

Production Capacity and Stock Availability

Zeenni revealed that the food industry currently has sufficient raw material stocks to continue production for at least five to six months, even if all border crossings were to close. However, he noted that this scenario is not currently in place, as sea, land, and air routes remain open.

Regarding the pharmaceutical sector, he explained that it has the capacity and raw materials needed to maintain production for a period ranging from eight months to one year.

As for other consumer industrial sectors, he indicated that they can continue production for at least six months or more.

Zeenni emphasized that this situation reflects the flexibility and resilience of Lebanon’s industrial sector, adding that there is no reason for panic regarding local industry. “As long as sea, land, and air gateways remain open, the industrial sector is doing well and there are no supply issues so far,” he said.

Rise in Local Production

He also noted that the industrial sector is capable of providing alternatives for any imported consumer goods that may disappear from the market. According to Zeenni, the share of locally produced industrial goods in the Lebanese market has increased significantly, rising from around 10–15% to between 45–50%.

Luxury Goods Most Affected

Zeenni added that luxury goods are expected to be the most affected during times of conflict, as consumers typically focus on essential goods during crises.

Export Challenges

Speaking about exports, Zeenni expressed concern about the current situation. He explained that exports are a vital outlet for Lebanese industry, particularly to neighboring Arab countries and Gulf markets. However, current regional challenges are making trade communication more difficult.

He noted that land exports to the Gulf via trucks are currently disrupted due to the inability to transit through Saudi Arabia. The industrial sector is working with relevant authorities to find solutions, as exports represent a key source of foreign currency for the sector.

Rising Costs and Tax Pressure

Zeenni also highlighted that war conditions are placing additional pressure on production costs, which could eventually impact prices. While industrialists are still trying to keep prices under control, he pointed out that taxes on industry, raw materials, fuel, and electricity make this increasingly difficult.

He revealed that the Industrialists Association had previously warned authorities that current tax policies weaken the sector’s competitiveness and contribute to higher prices for consumers in Lebanon.

Shipping Costs Increasing

Regarding exports to the Gulf and other Arab markets, Zeenni said the situation remains unclear due to regional instability. Maritime exports are also facing challenges due to disruptions in the Red Sea, which have significantly increased insurance costs.

Shipping companies have raised insurance fees by around $2,000 for a 20-foot container and $3,000 for a 40-foot container under “war risk” charges, which could affect export flows.

Alternative Routes Under Study

Industrialists are currently studying alternative options to reach Gulf markets, including shipping goods to safe ports and then transporting them overland. However, no final decisions have been made yet as the conflict is still in its early stages.

Transit Through Syria

Regarding land exports through Syria, Zeenni explained that the issue has two aspects. The first concerns restrictions on Lebanese trucks entering the Syrian market to unload goods, although temporary allowances have been granted while discussions continue.

The second issue is the inability of Lebanese trucks to transit through Saudi Arabia toward key Gulf markets, including the UAE, Kuwait, Oman, Qatar, and Bahrain.

Zeenni concluded by noting that despite these challenges, Lebanese exports can still reach markets such as Iraq, Egypt, Jordan, and Syria through direct maritime routes.