Lebanon Scored 46.3 over 100 on the Composite Risk Rating

On the Business Monitor International Risk Ratings, Lebanon scored 46.3 over 100 on the composite risk rating, ranking 14 out of the 19 Middle Eastern countries.  All ratings are between 1 and 100, where a higher rating indicates lower risk. The composite rating is a geometric mean of the short-term political and economy ratings.

The political instability in the future is forecasted to stay due to the security situation in Syria which does not seem to add confidence for Lebanon’s stability over the medium-term. Moreover, sectarian tensions will remain fickle which will probably result in further legislative deadlock amid a presently fractious parliament. Thus Lebanon’s Political Risk Ratings for the short and long-term, at 45.2 and 56.4, respectively, were below the regional average of 58.6 and 57.5.

On the economic front, due to regional conditions, which affected tourism and fixed investment, the Lebanese economy is not expected to post inspiring growth over the coming quarters. This being said, Lebanon’s short and long-term Economic Risk Ratings stood at 35.4 and 47.6, also lower than the regional average of 55.2 and 53.3.

The business environment is still relatively perceived by investors, due to Lebanon’s strong private and financial sectors and its educated workforce. Nevertheless, it is affected by infrastructural shortfalls, corruption, restricted government authority over some parts of the country, and political risk. Therefore Lebanon scored 46.5 on the Business Environment Risk Rating, below the regional average of 47.9.

Lebanon Risk Rating

Short-term Political45.258.6
Long-term Political56.457.5
Short-term Economic35.455.2
Long-term Economic47.653.3
Business Environment46.547.9

Source: BMI

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