Dual-track reform for Lebanon’s industrial sector

Lebanon’s Ministry of Industry has taken 2 significant steps aimed at reorganizing the industrial sector while reducing administrative strain on businesses.

Through Circular No. 13/1 and Decision No. 16/1, Minister Joe Issa el-Khoury has introduced a deadline for unlicensed industrial establishments to regularize their status and simultaneously abolished a previously imposed calibration system for industrial equipment. Together, these measures reflect a dual-track policy: strengthening regulatory compliance while easing operational burdens on manufacturers.

Circular No. 13/1: a clear deadline for legal compliance

Circular No. 13/1 grants unlicensed industrial institutions until 15 April 2026, to legalize their operations. The move is framed as part of a broader effort to organize the industrial sector through what the ministry describes as an “integrated regulatory approach.” Rather than relying solely on enforcement, the circular invites industrial investors to proactively align their operations with existing laws and licensing requirements.

Under the new directive, investors operating industrial establishments without licenses are required to submit formal licensing applications to the competent department at the Ministry of Industry or to the relevant regional office. Likewise, investors who initiated but did not complete licensing procedures must file applications to regularize their status within the same timeframe.

The ministry has committed to reviewing all submitted applications and coordinating with other relevant ministries and public administrations to facilitate compliance within the established legal framework. This coordinated approach suggests an effort to streamline bureaucratic processes and avoid procedural bottlenecks that have historically discouraged formalization.

Decision No. 16/1: a regulatory reform and administrative relief

In parallel with tightening compliance requirements, Minister Khoury issued Decision No. 16/1, revoking 2 previous decisions from 2022 that imposed a mandatory calibration system for measuring devices in industrial establishments. The abolished decisions had required industrial operators to adhere to specific calibration standards for equipment, a measure intended to regulate quality control and technical accuracy.

The ministry justified the revocation by citing the need to reduce administrative and financial burdens on industrial institutions. By removing the mandatory calibration framework, authorities appear to be responding to concerns from manufacturers about regulatory costs and operational constraints, particularly amid Lebanon’s ongoing economic challenges.

The decision was issued based on the legal framework governing the Ministry of Industry, including the law establishing the ministry and subsequent decrees regulating its structure and authority. The immediate entry into force of the decision underscores the government’s intent to deliver swift regulatory relief.

Balancing oversight and growth

Taken together, both measures signal a recalibration of industrial policy. On one hand, the ministry is reinforcing the importance of legal compliance and formal licensing, which are essential for transparency, accountability, environmental standards, labor protection, and tax collection. On the other hand, it is easing specific technical requirements that may have placed additional strain on already struggling businesses.

For Lebanon’s industrial sector, which has been navigating economic contraction, currency instability, and rising production costs, the balance between regulation and flexibility is delicate. Encouraging formalization while reducing unnecessary burdens could help broaden the tax base and enhance institutional oversight without stifling economic activity.

In conclusion, by setting a firm deadline for the regularization of unlicensed establishments and simultaneously lifting certain regulatory obligations, the Ministry of Industry is pursuing a pragmatic approach to sectoral reform. The success of these measures will depend on effective implementation, transparent administrative processes, and constructive engagement between authorities and industrial stakeholders.