Lebanon’s persistent economic struggles have led the country to rely heavily on foreign aid and loans, yet one potential solution remains underutilized: cannabis cultivation. Despite a rich history of cannabis farming and the legalization of cannabis for medical and industrial purposes in 2020, the Lebanese government has yet to implement the regulatory framework necessary to fully harness this sector’s potential. This was previously mentioned in McKinsey and Company: Lebanon Economic Vision Report that was published in early 2019 which aimed to grow Lebanon’s GDP.
This subject has gotten recent attention lately. Salwa Baalbaki’s article, published on December 19 2024 in ANNAHAR, highlights the urgent need for reform and emphasizes how cannabis cultivation could be a keystone of Lebanon’s economic recovery. According to Baalbaki, Lebanon’s financial situation continues to deteriorate, with foreign aid and loans being essential to avoid a collapse. However, the revenue from cannabis cultivation presents a much more sustainable solution. The McKinsey report estimates that cannabis could generate up to $4 billion annually, a sum significantly higher than the financial assistance Lebanon seeks from international sources.
According to the article, historically, cannabis farming in Lebanon that dates back to the 1930s. The Beqaa Valley, the primary region of cannabis cultivation, became a major center during the Lebanese Civil War, covering vast areas with cannabis crops. Today, around 3.7 million square meters in the Beqaa are dedicated to cannabis farming according to Baalbaki, yielding between 60 and 80 Kilograms per dunam. Despite the passing of the Cannabis Law in 2020, which legalized cannabis for medical and industrial purposes, the government has failed to establish the necessary regulatory authority to oversee the sector, including recreational use.
In addition, minister of agriculture Abbas Al-Haj Hassan estimates that cannabis cultivation could generate approximately $1.5 billion annually, meaning Lebanon has missed out on a potential $5 billion in revenue over the past three and half years, and that is most likely a lower bound estimate. This lost revenue contrasts sharply with Lebanon’s ongoing negotiations for a $3 billion loan from the International Monetary Fund (IMF), further underscoring the missed economic opportunity.
Also important are the practical advantages of cannabis as a crop. Cannabis requires minimal water, is resistant to bacterial infections, and is easier to cultivate than traditional crops. It also generates significantly higher revenue per dunam, with estimates ranging from $800 to $1,200, compared to $350 to $400 for hashish, which is made from the resign of the buds of the cannabis plant. These factors make cannabis an ideal crop for Lebanon’s Beqaa Valley, where water is scarce and farmers struggle with low agriculture yields.
Despite its potential, critics question the economic feasibility of cannabis cultivation. However, Minister Hassan counters these concerns by highlighting the diverse industrial and medical applications of cannabis, including the use in textiles, cosmetics, oils, and pharmaceuticals. Lebanon is already the third largest global exporter of cannabis, according to the UN Office on Drugs and Crime, and the exceptional quality of Lebanese cannabis strains gives the country a comparative advantage in the international market.
By: Jana Boumatar
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