Lebanon’s Saudi exports on hold

It appears that some misjudged the situation by believing that once Saudi Arabia issued a decision to reopen its markets to Lebanese products, Lebanese products would immediately return once again to those markets under the same conditions and in the same quantities as before, approximately six years ago, before the import ban was imposed

A number of factors have combined to hinder a smooth return to the Saudi market. Some may be beyond control and require time to resolve, while others are the result of negligence and poor management by all Lebanese parties concerned with this issue.

The main obstacles currently facing exports to the Kingdom can be summarized as follows:

First: The issue of the malfunctioning scanner at the Masnaa border crossing.

Second: The current Saudi import standards, which differ significantly from those that were in place before the closure.

Third: Verifying the exporter’s identity through a Know Your Customer (KYC) system similar to that used in the financial sector

Fourth: Successfully re-entering the Saudi market by convincing consumers there of Lebanese agricultural and industrial products.

Regarding the scanner and the inability to export through Masnaa, Nidaa Al Watan reported that funding has been allocated for its repair and the required spare parts have been ordered from abroad. The cost is estimated at around $150,000. The repair requires time, which means that farmers may lose the current agricultural season.

This situation led to an exceptional measure allowing loaded trucks to pass through the port scanner at specific times. Security forces, under the supervision of the Ministry of Interior, will accompany these trucks on their return journey to Masnaa to ensure that no violations occur. This process is complicated and makes exports more difficult, but it is a temporary measure to save what remains of the agricultural season.

Regarding Saudi standards, there has been a failure by all parties involved in this issue, including agricultural associations and Lebanese official bodies. Preparations should have been made before the Kingdom announced the reopening of its markets, especially since the matter had already been discussed and it was known that such a decision would be taken.

However, the concerned parties did not act. When the decision was announced, everyone discovered that they could not export according to the standards that existed six years ago.

Work has now begun to comply with these standards and take the necessary steps to ensure that Lebanese exports meet Saudi requirements. Preparations are also underway to cooperate with a global standards company accredited in Saudi Arabia. Once the company places its seal on a product, it will be accepted as compliant with Saudi standards.

Regarding exporter identity, work has begun on a Know Your Exporter (KYE) system, where exporters’ files will be prepared in cooperation with the relevant official authorities.

The process of completing exporters’ files will begin gradually, until every exporter has a file containing personal data and the required information about their identity and business, making them trusted in export operations.

Finally, the competition issue, which will require additional time for Lebanese products to regain their position among Saudi consumers. Some products will recover faster than others, while Lebanese consumers residing in Saudi Arabia can be relied upon as they are expected to be among the first customers to return to Lebanese products.

In conclusion, this is the story of the return of exports to the Kingdom.

What happened confirms once again that the Lebanese state has not yet reached the level of anticipating events and preparing and planning for them. And that its approach continues to rely on reactions and improvisation that reaches the level of negligence and leads to missed opportunities.