Lebanon Real Estate Newsletter Vol. 4, Issue 1 - January, 2008

Lebanon's economy is 60.9 percent free, according to our 2008 assessment, which makes it the world's 73rd freest economy. Its overall score is 0.5 percentage point lower than last year, mainly reflecting a lower monetary freedom score. Lebanon is ranked 9th out of 17 countries in the Middle East/North Africa region, and its overall score is slightly higher than the regional average.

Lebanon's economy is a mixture of very strong economic institutions and weak economic institutions. Its strongest scores are in fiscal freedom, financial freedom, and labor freedom. The top income and corporate tax rates are low. The financial sector is well developed for the region, with an array of private banks and services. The labor market is highly flexible.

Business freedom, investment freedom, property rights, and freedom from corruption are all areas in which Lebanon could improve. Intrusive bureaucracy makes closing a business difficult, and the generally chaotic regulatory regime deters foreign capital. Corruption is rampant, and fair adjudication of property rights cannot be guaranteed because the courts are subject to significant influence from the security services and the police.

2008 Index of Economic Freedom