'It's now or never': Lebanon looks to digital transformation to revive economy and curb corruption

Lebanon's President Joseph Aoun has pledged to expand digitalisation in the public sector as part of a broader drive to make governance more efficient, revive the economy and tackle corruption.

The country must be "open to regional partnerships and ready for foreign investment", he said at the Smart Government: Diaspora Experts for Lebanon conference in Beirut.

“The smart government is always postponed so that citizens’ paperwork remains hostage to the whims of the corrupt,” Mr Aoun said. “We want Lebanon to be open to regional partnerships and ready for foreign investment. The digitalisation project is not just a government initiative, it is a national project and a sovereign decision for a better future."

The conference brought together senior officials, business leaders and experts from the Lebanese diaspora to discuss the country’s digital strategy, including its policy for artificial intelligence and the role of public-private partnerships in innovation.

“Now is the right time because we are living in the era of global digital transformation. If Lebanon doesn't catch up, it risks missing the moment,” said Rabih El Amine, chairman of the Lebanese Executives Council, which organised the event.

He added that Lebanon has reached a turning point for reform with the election of Mr Aoun and appointment of Prime Minister Nawaf Salam after more than two years of political vacuum, and 14 months of deadly conflict with Israel.

“We now have a newly elected President and a government in formation. Both have pledged in their initial statements to endorse and support the establishment of a smart government in Lebanon,” Mr El Amine said.

Political will and legal reforms are essential for Lebanon to initiate its digital transformation, he said.

“International partners are ready to help. We're here to help the government build the needed infrastructure for digital transitions," he said. "But if parliament does not modernise laws to align with these strategies, then we go nowhere."

Lebanon’s Minister of the Displaced and Minister of State for Technology and Artificial Intelligence, Kamal Shehadi, outlined his flagship initiative at the conference. Known as LEAP, the project is aimed at driving digital reform, transforming government operations and the broader economy, and developing AI infrastructure.

Under the initiative, AI is expected to contribute 10 per cent of the country's GDP by 2035, supported by expanded broadband and digital infrastructure, generating an economic boost of $3 billion to $4 billion. It also aims to attract $500 million in AI investment and double the AI workforce.

“This is our last chance,” Nadine Shawi, an adviser to the Ministry of Technology and Artificial Intelligence, told The National. “The time is now. We’ve also established a digital authority to oversee everything related to AI, and we’re actively co-ordinating with other ministries. This is the right moment. We’re making progress and now is the time to accelerate development.”

Economic challenge

Since 2019, Lebanon has faced what the World Bank described as one of the worst financial crises since the mid-19th century, with the local currency losing more than 90 per cent of its value and public services collapsing.

The financial meltdown, which has resulted in losses exceeding $70 billion, has left banks nearly insolvent and locked many depositors out of their savings. One in three Lebanese is living in poverty, according to a World Bank report released last year.

“After the 2019 financial crash, investors will think 10 times before putting money in. The government needs to create the right conditions for investment,” Jihad Bitar, chief executive of Siren Analytics, a Beirut company that specialises in digital transformation, told The National.

Lebanon faces a long road to economic recovery, with numerous constraints, Economy Minister Amer Bisat said at the conference. “It’s clear that we do not have a functioning banking sector capable of seizing emerging opportunities, including those in Syria,” he added.

The downfall of former Syrian president Bashar Al Assad in December and the lifting of western sanctions have renewed international investor interest in the country, although Beirut has not yet revived its historically close trade ties with Damascus.

“Our private sector is not competitive. We need to lower the cost of production, particularly electricity,” Mr Bisat added.

He also pointed to the country’s challenging business environment. “Today, it takes just two hours to open a company in London. In Lebanon, the relationship between the private and public sectors is not sound,” he said.

“One of the solutions is digitalisation. The implementation of e-government can help streamline procedures and facilitate interaction with the state."