Lebanon’s Agriculture Sector Falls Victim to Smuggling, High Export Tariffs

A grape picker harvests grapes in a farm at Taanayel Monastery, in Lebanon's Bekaa Valley, September 15, 2018. REUTERS/Jamal Saidi
A grape picker harvests grapes in a farm at Taanayel Monastery, in Lebanon's Bekaa Valley, September 15, 2018. REUTERS/Jamal Saidi
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Lebanon’s Agriculture Sector Falls Victim to Smuggling, High Export Tariffs

A grape picker harvests grapes in a farm at Taanayel Monastery, in Lebanon's Bekaa Valley, September 15, 2018. REUTERS/Jamal Saidi
A grape picker harvests grapes in a farm at Taanayel Monastery, in Lebanon's Bekaa Valley, September 15, 2018. REUTERS/Jamal Saidi

Prime Minister Saad Hariri has said that Lebanon’s agriculture sector should be organized to compete in outside markets amid complaints by farmers that they have fallen victim to smuggling and high export tariffs.

Hariri spoke during a workshop titled “Transforming Lebanon’s Agriculture: Challenges and Opportunities” that was held at the Grand Serail in Beirut on Friday.

“The sectors linked to agricultural policies should be developed,” said Hariri. “We need a unified agenda for a roadmap on developing the sector.”

“Agriculture accounts for only four percent of GDP,” he told the conference, saying the sector’s success brings back farmers to their villages.

Agriculture comes in third place after the services and industry sectors in Lebanon. But its budget forms only eight percent of the state budget.

Around 200,000 families work in agriculture, which means 20 to 30 percent of the labor force.

However, the chief of the Bekaa Farmers Association, Ibrahim Tarshishi, told Asharq Al-Awsat that smuggling has severely affected the sector.

“Whenever a farmer has a good crop season, he sees his same produce at lesser cost,” said Tarshishi. The sector faces other severe constraints such as increasing water scarcity and loss of arable land.

In addition, there isn’t enough subsidies. The Investment Development Authority of Lebanon (IDAL) gives farmers 100 Lebanese pounds for every kilogram of exported apples, and 65 pounds for every kilogram of potato.

“The subsidies were at first acceptable, but they no longer meet the current challenges,” said Tarshishi.

Subsidies to farmers are meaningless when there are high export costs, he told the newspaper. There are tariffs of around 4,000 dollars for each truck that passes through al-Boukamal crossing on the Syrian-Iraqi border.

As for the Nasib border crossing between Jordan and Syria, there is a cost of 1,000 dollars for each lorry, he added.



Saudi Non-Oil Exports Reach Highest Levels Since 2022

A view of the Jeddah Islamic Port. (Asharq Al-Awsat)
A view of the Jeddah Islamic Port. (Asharq Al-Awsat)
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Saudi Non-Oil Exports Reach Highest Levels Since 2022

A view of the Jeddah Islamic Port. (Asharq Al-Awsat)
A view of the Jeddah Islamic Port. (Asharq Al-Awsat)

Saudi Arabia’s non-oil exports have reached their highest levels since the second quarter of 2022, continuing to grow at a steady pace. By the end of the third quarter of this year, non-oil exports, including re-exports, totaled SAR 80 billion (USD 21 billion), reflecting a 16.8% increase compared to the same period in 2023.

This growth aligns with the goals of Vision 2030, which aims to diversify Saudi Arabia’s economy and reduce reliance on oil revenues. Credit rating agency Moody’s recently upgraded Saudi Arabia’s credit rating to AA3 from A1 with a stable outlook, citing the Kingdom’s ongoing economic diversification and the strength of its non-oil private sector. Moody’s projects the non-oil private sector’s GDP to grow by 4–5% annually in the coming years.

According to data from Saudi Arabia’s General Authority for Statistics, non-oil national exports (excluding re-exports) grew by 7.6% in the third quarter of 2024, reaching SAR 57 billion (USD 15.1 billion). Re-exports saw a remarkable surge of 48.4%, amounting to SAR 23 billion (USD 6.1 billion).

In contrast, total merchandise exports dropped by 7.7% to SAR 276 billion (USD 73.5 billion) due to a 14.9% decline in oil exports. As a result, the share of oil exports in total exports decreased from 77.3% in the third quarter of 2023 to 71.3% this year.

Chemical industry products accounted for 25.5% of non-oil exports, growing by 5.3% compared to the same period last year. Plastics, rubber, and their derivatives followed closely, representing 24.9% of non-oil exports, with an 8.9% increase from the third quarter of 2023.

China remained Saudi Arabia’s top export destination, accounting for 15.2% of total exports in the third quarter of 2024. Japan and South Korea followed, at 9.3% and 9.2%, respectively. Other major destinations included India, the UAE, the US, Poland, Egypt, Bahrain, and Taiwan. Together, these ten countries accounted for 66.4% of Saudi exports.

Experts emphasize that the growth in non-oil exports strengthens Saudi Arabia’s economy and reflects the success of its diversification strategy under Vision 2030.

Shura Council member Fadhel Al-Buainain highlighted the importance of considering the scale of Saudi non-oil exports during the third quarter of 2024. He emphasized two key aspects of Saudi non-oil exports.

First, the 16.8% growth achieved is a significant leap that boosts the Saudi economy’s ability to continue strengthening non-oil exports, which are a focal point of Vision 2030 and its economic diversification goals.

Second, he said the 48.4% increase in the value of re-exported goods represents substantial growth, reflecting the Kingdom’s potential to play a pivotal role in regional re-export activities. This, in turn, can stimulate exports and position Saudi Arabia as a global logistics hub.

He further noted that the increase in export value compared to the second quarter of this year, amounting to SAR 37.2 billion (USD 9.92 billion) or 15.6%, indicates sustained and accelerating export growth.

Al-Buainain believes that Saudi Arabia’s ports on the Red Sea and the Arabian Gulf are well-equipped to play a central role in re-exporting, supported by free economic zones, robust infrastructure, and a well-established transportation and logistics network.

He also stated that the improvement in global demand, particularly in the petrochemical sector, which accounted for the largest share of exports, contributed to this growth.

However, the global economic conditions may face certain challenges that will reflect negatively on global demand, he remarked, stressing the importance of diversifying exports.

Dr. Osama Al-Obaidi, an international commercial law consultant and professor, told Asharq Al-Awsat that the significant increase in non-oil exports in the third quarter of this year compared to the same period in 2023 is linked to the growth in petrochemical exports, particularly plastics, rubber, and their derivatives.

He explained that this rise reflects the effectiveness of Saudi Arabia’s economic diversification efforts and its reduced reliance on oil as a sole income source, in line with Vision 2030.

It also highlights the success of the substantial investments made by the government to develop ports and logistics services, such as King Abdulaziz Port in Dammam and Jeddah Islamic Port.

Moreover, improvements in domestic, regional, and international airports, along with initiatives to promote local industries—particularly chemicals, food products, pharmaceuticals, and other high-demand goods in foreign markets—have also played a pivotal role.