Cash-strapped Lebanon turns to cannabis cultivation for medical purposes as economic lifeline

BEIRUT/ISTANBUL

Lebanon is turning to medical and industrial cannabis cultivation as a potential lifeline for its collapsing economy, with officials saying the newly established regulatory authority could unlock billions of dollars in revenue if the sector is effectively managed.

Dani Fadel, head of the National Authority for the Regulation of Cannabis Cultivation, told Anadolu that the sector’s economic potential is “very high,” emphasizing that international cooperation will be key to ensuring quality and opening export markets.

“Global studies indicate the medical and industrial cannabis market is worth billions annually, with applications in pharmaceuticals, cosmetics, food, and other industries,” he said.

“If carried out properly, this project can truly provide a window of hope to help Lebanon recover economically.”

Fadel said the authority will oversee the entire production cycle, from soil and water testing and licensing farmers to supervising packaging and manufacturing, in coordination with ministries including agriculture, health, industry, and economy. Production, he added, will be strictly limited to legal medical and industrial purposes.

From illicit to regulated

Lebanon has been grappling with a prolonged financial meltdown, further compounded by Israel’s devastating war on the country last year.

Since 2019, the Lebanese lira has lost more than 98% of its value, while inflation at times exceeded 300%, according to the World Bank. Once pillars of stability, banks have largely frozen dollar withdrawals, eroding citizens’ life savings.

More than 80% of the population now lives below the poverty line, according to 2023 UN data, with basic needs such as food and medicine becoming a daily struggle.

Fadel underlined that partnerships with countries experienced in cannabis production will be essential to guarantee compliance with global standards and to integrate advanced technologies in cultivation and pharmaceutical manufacturing.

“International cooperation is a necessary element for the success and sustainability of this sector,” he said, adding that Lebanon aims to channel cannabis production exclusively toward licensed factories and export markets.

The authority will also decide this year how to handle cannabis crops planted before its creation, following laboratory testing. Full regulatory measures, including licensing and industrial processing, are set to roll out in 2025.

Lebanon has long been a hub for illicit cannabis cultivation. In 2017, the UN ranked the country the world’s fourth-largest producer of hashish, despite strict laws punishing growers with prison terms and heavy fines.