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(Last updated: 19 Jul 2007)
Trends and opportunities
The market
The overall Lebanese economy has grown at an average of approximately four per cent per annum over the last few years, however; an accumulating public debt is hampering economic recovery. The government operates (relatively) free market and liberal trade policies. Services account for over two-thirds of the value of the economy, industry about 20 per cent and agriculture approximately 10 per cent.
The public health sector in Lebanon has been severely damaged by the 1975–91 civil war. Many hospitals and community clinics were closed down, while others have suffered severe structural damage. This is compounded by the affect of damaged civil infrastructure, where medical facilities experience events such as the intermittent loss of sewerage works and drinking water. In the reconstruction period, the Lebanese Government was only able to deliver basic health support services, principally to low-income individuals.
There has been a substantial expansion in the provision of private health facilities, off-setting in part the deterioration in the public health sector. New private hospitals have been built, and others modernised, that provide international standards of care and treatment.
The range of private sector activity extends from community clinics and private hospitals, through to charity associations and insurance companies, and is the foundation of health services in the country. Over 90 per cent of health services are provided by private hospitals.
There are a number of different health insurance programs – offering full or partial cover – funding patient’s use of private health facilities. As well as private health insurance companies, schemes are run by public agencies, such as the Ministry of Health, Ministry of Defence, National Social Security Fund and the Interior Security Forces, and private philanthropic organisations; only an estimated 10 per cent of patients are hospitalised at their own immediate expense.
The private hospital sector is the only provider of advanced medical technologies in the country. It is private hospitals that actively train and develop the specialisations of medical and paramedical students, in collaboration with universities and related institutions.
Despite the trauma of war, Lebanese health standards still compare relatively well with other countries in the Middle East. The average life expectancy in Lebanon is 72.3 years, compared with 70.3 years in Syria and 71 years in Egypt. Lebanon also has a patient/doctor ratio of 670:1, compared with 1320:1 in Egypt (and approximately 400:1 in Australia).
While health services of Lebanon are overall in poor condition, education standards are regarded as being of high quality. Lebanon has a literacy rate of 91 per cent, and higher education in the country is considered amongst the best in the Arab world.
Most Lebanese have access to some form of health services. The numbers of qualified health personnel are also expected to increase with the return of many highly educated Lebanese from self-imposed exile.
Opportunities
A few Australian companies are represented in the Lebanese market. The following areas in the Lebanese health and medical sector represent potential opportunities for Australian exporters:
- Hospital/medical equipment
- Diagnostics and pathology
- Pharmaceutical and vaccines
- Services and consultancy
The World Bank is implementing a new Country Assistance Strategy in Lebanon covering the years 2006–2009. Contingent on Lebanon tackling structural and fiscal reforms and improving social indicators, the concessional lending program could provide up to US$700 million to assist Lebanon’s transition from reconstruction to development.
Competitive environment
The USA is very active in the Lebanon market, both commercially and through US aid organisations. France has a significant commercial relationship with Lebanon – an extension of the historical relationship between the countries, especially during the period between the first and second World Wars. Italy and Germany are two other European Union countries with strong trading relationships with Lebanon. |