The Association of Lebanese Industrialists, headed by Salim Zeenni, announced today that the industrial sector is facing “double losses” as a result of the war. The first stems from direct damage to factories, while the second is linked to declining local consumption and a sharp drop in exports. The Association warned that the sector can no longer bear additional burdens, particularly amid the state’s repeated reliance on taxation to finance its expenditures. T

he Association noted that while the number of factories completely destroyed remains limited, most damages are partial or caused by forced closures. It highlighted the difficulty of accurately estimating total financial losses, which include rising energy costs, increased shipping fees, and higher prices of raw materials.

It further stressed that the impact of the war extends beyond the domestic market to industrial exports. Arab countries—especially those in the Gulf—have traditionally served as Lebanon’s main export markets, often offsetting weak local demand. However, the current situation is markedly different, with export activity nearly at a standstill. In this context, the Association called on the President of the Republic, ahead of his visit to the Saudi Arabia to participate in the Arab Summit, to prioritize discussions on reinstating transit routes for Lebanese goods to Gulf countries and lifting the ban on Lebanese exports to the Kingdom.

The Association emphasized that the industrial sector remains a cornerstone of the Lebanese economy, with an estimated production value of $10 billion—approximately one-third of the country’s GDP, estimated at $30 billion. The sector also supplies around 55% of goods in the local market.

It underlined that increasing state revenues and improving tax collection can only be achieved through economic growth—particularly by supporting the industrial sector. Expanding the economy requires boosting exports, developing local industries, and substituting imported goods with domestically produced alternatives.

The statement concluded with a warning that the industrial sector can no longer sustain additional pressures, reiterating that a healthy economy cannot rely on taxation alone, but must be built on production—especially industry, which directly supports around 250,000 families. Additionally, approximately 250,000 industrial workers are registered with the National Social Security Fund, out of a total of 360,000 contributors.