Can cannabis legalization rescue Lebanon’s ailing economy?

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A file photo taken on July 23, 2018 shows a cannabis plantation in the village of Yammoune in Lebanon's eastern Bekaa Valley. (AFP/File Photo)
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Updated 27 April 2020
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Can cannabis legalization rescue Lebanon’s ailing economy?

  • New law aims to regulate existing cultivation while making drug’s medical and industrial use legal
  • Experts welcome legalization considering the parlous state of the economy but with big caveats

DUBAI: The international media’s blanket coverage of the COVID-19 pandemic was interrupted on Tuesday by breaking news about Lebanon becoming the first Arab country to legalize cannabis for medical and industrial use.

Experts from different fields have welcomed the decision in light of Lebanon’s manifold problems compounded by the coronavirus crisis — but with big caveats.

Cannabis, also known as marijuana among other names, is a psychoactive drug from the cannabis plant used primarily for recreational or medical purposes.

Until now, Lebanon had banned the growth, sale and consumption of cannabis, even though legalization of production had been recommended in the past.

However, attitudes began to shift after the US consulting firm McKinsey & Company touted the legalization of cannabis in a study on how the government could revitalize the economy.

In 2018, the UN Office on Drugs and Crime (UNODC) ranked Lebanon in the world’s top five producers of cannabis.

Last year, Raed Khoury, Lebanon’s minister of economy, said medicinal marijuana exports could generate $1 billion in annual revenue for Lebanon.




A supporter of cannabis legalization demonstrates outside of the Charleston Gaillard Center ahead of the Democratic presidential debate on February 25, 2020 in Charleston, South Carolina. (AFP/File Photo)

For a country with one of the highest debt-to-GDP ratios in the world, the industry’s potential for revenue generation can hardly be glossed over.

Among those expressing guarded optimism is Dr. Nasser Saidi, a former chief economist at the Dubai International Financial Center who was Lebanon’s minister of economy between 1998 and 2000.

The move to legalize marijuana for medical use makes a great deal of sense for Lebanon, he said, noting that the country has long been a producer of hashish.

“In particular, the crop has helped the poorer areas of Lebanon, mainly the Bekaa Valley, and allowed agriculturalists to survive because many of their other crops aren’t necessarily exportable,” Saidi told Arab News.

“For the more traditional crops like potatoes, beetroot, olives and others, there is a lot of competition, whereas for hashish there is much less competition.

“Lebanon can build its reputation as a source of quality hemp. Medicinal marijuana in particular can be an important high-value export product.”

Saidi draws a parallel between Lebanon’s decision to decriminalize cannabis production, manufacturing and its use with the policies of some advanced industrial countries.

Pointing out that the US and Canada have legalized use of marijuana, hemp and hashish without any negative fallout, he said: “There is no reason why Lebanon should not be able to successfully and securely decriminalize hashish.”

Saidi’s guarded optimism is echoed by Cyril Widdershoven, a director at Verocy, a Dutch consultancy which advises on investments, energy and infrastructure risks and opportunities in the Middle East.

He believes conditional legalization could be a step towards taking out the middlemen and halting the illegal trade.

“If this is meant to be the main target, some support should be extended to the decision,” Widdershoven said.




A file photo taken on July 23, 2018 shows workers cultivating plants at a cannabis plantation in the village of Yammouneh in Lebanon's eastern Bekaa Valley. (AFP/File Photo)

“For a government, it can be very positive as it will bring, if properly regulated, additional taxes and income. Some amount of crime will get checked, though not all.”

Nevertheless, Widdershoven said much will revolve around how Lebanon defines “medical purposes.”

He said: “Is medical use the real objective or is it just a legal option to introduce cannabis in the open, without coming into conflict with other laws and regulations?” 

According to Widdershoven, “income from taxes is obviously a potential benefit, but Lebanon will need to introduce a system that can control and manage production, transport, sale and taxation.

“Without it, cannabis legalization for medical and industrial purposes is going to give rise to a semi-legal grey area.”

Similarly, Saidi, who served as vice governor of the Central Bank of Lebanon for two terms, said the new law should not amount to control of the business by Lebanese politicians.

“Hashish growers are afraid that legalization means the industry will come under the control of a government-licensing administration or body, which could then be open to abuse, corruption and clientelism,” he told Arab News.

“They will tell you they fear that licensing will be monopolized by politicians and their cronies, enabling the latter to control the production, distribution and export of hashish — to the detriment of the growers.”

Saidi said legalization should mean decriminalization with a light regulatory structure but not a strict licensing system.

“You cannot, in a country with Lebanon’s corruption levels, institute a system for the farming, manufacturing and distribution of hashish that can be monopolized by the state or captured by a corrupt political class and its cronies,” he said.

“The government can play a role in terms of ensuring the quality of medicinal hashish, particularly for export purposes, and monitoring for statistical, public-health and taxation purposes. But I would not favor a strict physical licensing system.”

Saidi sees a lot of hype surrounding the economic dividend of cannabis legalization.




A cannabis plant is seen during the opening of a cannabis (marijuana) clinic at the Department of Development of Thai Traditional and Alternative Medicine in Bangkok on January 6, 2020. (AFP/File Photo)

According to one estimate, up to 100,000 hectares could come into hashish farming within a period of five to 10 years, with a crop value of $1 billion to $1.2 billion.

But Saidi does not see income from the crop as something that can put Lebanon’s public finances on a sustainable footing.

“We should allow producers to switch crops away — from low value-added crops like potatoes and sugar beet — to go into hashish, (as) it would help some of the poorest of the poor in Lebanon who eke out a subsistence income from agriculture,” he told Arab News.

“But it’s not a problem solver for the Lebanese government.”

Said added: “You can impose a tax, which is fine. Hashish consumption could be subject to VAT for local consumption to generate revenue for government, or to a production tax at a low rate.

“But again, I am not in favor of a licensing system to raise revenue because of the potential of corruption and bribery.

“Effectively, a licensing system would mean a highly inefficient regime for the benefit of politicians at the expense of growers. Licensing would become another form of political clientelism.”

An expert on Lebanon’s recreational drugs trade, who asked to remain anonymous, told Arab News that cannabis legalization was smart from the standpoint of Lebanon’s parlous economic situation and public finances.

However, he added, making cultivation of the plant legal is one thing while enforcement of the law without fear or favor is quite another.

He pointed out that Lebanon is the third-largest exporter of hashish after Afghanistan and Morocco, accounting for six percent of the world’s illegal supply of the drug, according the UNODC in 2012.

“This has made many people in Lebanon rich and powerful, specifically in the Bekaa Valley, where most of the cannabis is grown,” he said.

He wonders whether legalization will open opportunities for newcomers to enter the business or further enrich the players and politicians who control the business.

The anonymous expert said that he was unsure of the contours of a long-term strategy to decriminalize cannabis inside Lebanon for commercial purposes.

“These are basic questions that must be addressed if the legalization move is to make a positive impact on the economy,” he said.

Citing the tobacco industry as a cautionary tale, he said all Lebanese producers are required to sell only to government-approved authorities that produce and sell cigarettes, such as the Régie Libanaise des Tabacs et Tombacs.

“The risk is that the same situation could arise with cannabis. An element of corruption can completely wipe out the positive impact,” he said.

In his opinion, the Lebanese government wants a piece of the pie with the global legal cannabis market tipped to reach $103.9 billion by 2024.

“One can only hope that the Lebanese government transforms cannabis cultivation into a diversified income stream, with scope for local industries such as medicine, pharmaceutical, textile, wellness, and even tourism to flourish,” he said.

“But all this may be too much to ask given previous the government’s track record in other sectors.”

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THE BIGGEST CANNABIS PRODUCERS AND CONSUMERS

Mexico: Medical marijuana was legalized in 2017. The legalization of the drug for recreational purposes is expected to take place by April 30, 2020. According to Arcview and BDS, recreational marijuana sales in Mexico are expected to reach $582 million by 2024, with an additional $441 million in medical spending, for a combined $1.02 billion.

United States: Marijuana is legal in 11 states for adults over the age of 21 and legal for medical use in 33 states. The US marijuana industry’s economic impact is predicted to reach $77billion by 2022, according to Marijuana Business Factbook, while studies estimate the industry will produce at least 330,000 jobs by 2022.

Canada: In 2018, Canada become the second country in the world to implement legislation to permit a nationwide marijuana market. By the end of August 2019, cannabis inventories across the country had reached almost 400 tons. In total, 5,884,055 packaged units of cannabis were sold across the country for medical and non-medical purposes in 2019.

Paraguay: The principal producer of cannabis in South America legalized cannabis for medicinal use in 2007. However, the proposed framework for implementing a medicinal cannabis industry was not approved until 2018. That year the government opened licensing opportunities for businesses looking to cultivate cannabis for medicinal purposes in the country. The Senate also approved a separate bill permitting the personal growth of cannabis for medical use, provided users present authorized certificates.

Jamaica: Since decriminalizing marijuana in 2015, Jamaica now allows citizens to grow up to five cannabis plants, while the possession of two ounces or less has been downgraded to a petty offence. According to the US State Department, Jamaican farmers cultivate 15,000 hectares of cannabis every year. The government has also granted licenses to farmers who want to grow cannabis for medical, therapeutic or scientific purposes.

Morocco: According to a report released by the UN Office on Drugs and Crime (UNODC), Morocco remains the world’s largest producer of cannabis, producing over three times more than the next highest contender, Moldova. The report suggested that cannabis production in the country has continued to grow, showing an increase from 35,653 tons in 2016 to 35,703 tons in 2017.

Nigeria: Nigeria has the highest cannabis usage worldwide with 20 million users. It is estimated that 20.8 million people in Nigeria consume the illegal commodity every year in a market estimated at $15.3billion. Two reports have stated that Nigeria has the highest rate of cannabis use in the world with 19.4 percent of its population over the age of 15 consuming the drug in 2019, and at least 12 percent consuming it monthly.

United Kingdom: The country was declared the world’s largest producer and exporter of medical cannabis by the UN’s International Narcotics Control Board in 2018. According to the International Narcotics Control Board (INCB), 95 tons of marijuana was produced in the UK in 2016 for medicinal and scientific use, accounting for 44.9 percent of the global total. The cannabis-based medicine ‘Sativex’ accounts for a significant proportion of UK legal cannabis production and is available on prescription.

Afghanistan: Over 10 years ago, Afghanistan was the largest supplier of cannabis, estimated at 1,500-3,500 tons a year, according to a UNODC report. Between 10,000 and 24,000 hectares of cannabis are grown every year in Afghanistan, with major cultivation occurring in 17 out 34 provinces.

India: In 2019, buyers in Delhi and Mumbai purchased 38.3 tons and 32.4 tons of cannabis respectively, despite the drug being illegal in these cities, according to data released by the Berlin-based data firm ABCD. Cannabis is sold at Rs315 per gram in Delhi and Rs329 per gram in Mumbai, which are the cheapest rates globally, says the report. In 2017, Uttarakhand became the first Indian state to allow farmers to cultivate hemp plants for industrial purposes. The drug is believed to have been sold and consumed across the country for decades.


Firefighters in Turkiye battle to contain wildfires for second day

Updated 7 sec ago
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Firefighters in Turkiye battle to contain wildfires for second day

  • Helicopters, fire extinguishing aircrafts and other vehicles, and more than a thousand people were trying to extinguish the fires

ISTANBUL: Firefighters in Turkiye are battling wildfires for a second day raging in the western province of Izmir fanned by strong winds, the forestry minister and local media said on Monday
Wildfires in Kuyucak and Doganbey areas of Izmir were fanned overnight by winds reaching 40-50 kph (25-30 mph) and four villages and two neighborhoods had been evacuated, Forestry Minister Ibrahim Yumakli said.
Helicopters, fire extinguishing aircrafts and other vehicles, and more than a thousand people were trying to extinguish the fires, Yumakli told reporters in Izmir.
Media footage showed teams using tractors with water trailers and helicopters carrying water, as smoke billowed over hills marked with charred trees.
Turkiye’s coastal regions have in recent years been ravaged by wildfires, as summers have become hotter and drier, which scientists relate to climate change.


Heatwave leaves Moroccan cities sweltering in record-breaking temperatures

Updated 29 June 2025
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Heatwave leaves Moroccan cities sweltering in record-breaking temperatures

  • In the coastal city of Casablanca, the mercury reached 39.5C (103 Fahrenheit), breaching the previous record of 38.6C set in June 2011

RABAT: Monthly temperature records have been broken across Morocco, sometimes topping seasonal norms by as much as 20 degrees Celsius, the national meteorological office said Sunday, as the North African kingdom was gripped by a heatwave.
“Our country has experienced, between Friday 27 and Saturday 28 of June, a ‘chegui’ type heatwave characterised by its intensity and geographical reach,” the meteorological office (DGM) said in a report shared with AFP.
The heatwave, which has also struck across the Strait of Gibraltar in southern Europe, has affected numerous regions in Morocco.
According to the DGM, the most significant temperature anomalies have been on the Atlantic plains and interior plateaus.
In the coastal city of Casablanca, the mercury reached 39.5C (103 Fahrenheit), breaching the previous record of 38.6C set in June 2011.
In Larache, 250 kilometers (150 miles) up the coast, a peak temperature of 43.8C was recorded, 0.9C above the previous June high, set in 2017.
And in central Morocco’s Ben Guerir, the thermometers hit 46.4C, besting the two-year-old record by 1.1C.
In total, more than 17 regions sweltered under temperatures above 40C, the DGM said, with Atlantic areas bearing the brunt.
“Coastal cities like Essaouira recorded temperatures 10C or 20C above their usual averages” for June, the DGM said.
Inland cities such as Marrakech, Fez, Meknes and Beni Mellal experienced heat 8C to 15C above the norm, with Tangier in the far north at the bottom end of that scale.
The forecast for the days ahead indicates continuing heat in the interior of Morocco due to a so-called Saharan thermal depression, an intense dome of heat over the desert.

 


Netanyahu sees ‘opportunities’ to free Gaza hostages

Updated 5 min 17 sec ago
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Netanyahu sees ‘opportunities’ to free Gaza hostages

  • Palestinian militants seized 251 hostages during Hamas’s attack on Israel on October 7, 2023

JERUSALEM: Israeli Prime Minister Benjamin Netanyahu said Sunday that his country’s “victory” over Iran in their 12-day war had created “opportunities,” including for freeing hostages held in Gaza.

“Many opportunities have opened up now following this victory. First of all, to rescue the hostages,” Netanyahu said in an address to officers of the security services.

“Of course, we will also have to solve the Gaza issue, to defeat Hamas, but I estimate that we will achieve both goals,” he added, referring to his country’s campaign to crush the Palestinian militant group.

In a statement late Sunday, the main group representing hostages’ families welcomed “the fact that after 20 months, the return of the hostages has finally been designated as the top priority by the prime minister.”

“This is a very important statement that must translate into a single comprehensive deal to bring back all 50 hostages and end the fighting in Gaza,” the Hostages and Missing Families Forum said.

Palestinian militants seized 251 hostages during Hamas’s attack on Israel on October 7, 2023.

Of these, 49 are still believed to be held in Gaza, including 27 the Israeli military says are dead. Hamas also holds the body of an Israeli soldier killed there in 2014.

The forum called for the hostages’ “release, not rescue.”

“The only way to free them all is through a comprehensive deal and an end to the fighting, without rescue operations that endanger both the hostages and (Israeli) soldiers.”


Partial collapse of Sudan gold mine kills 11

Updated 29 June 2025
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Partial collapse of Sudan gold mine kills 11

  • Africa’s third-largest country is one of the continent’s top gold producers, but artisanal and small-scale gold mining accounts for the majority of gold extracted

KHARTOUM: A partial collapse of a traditional gold mine has killed 11 miners and wounded seven others in war-torn Sudan’s northeast, the state mining company said on Sunday.
Since war erupted between Sudan’s regular army and the paramilitary Rapid Support Forces in April 2023, Sudan’s gold industry has largely funded both sides’ war efforts.
In a statement, the Sudanese Mineral Resources Company, or SMRC, said that the collapse occurred in an “artisanal shaft in the Kirsh Al-Fil mine” in the remote desert area of Howeid, located between the army-controlled cities of Atbara and Haiya in Sudan’s northeastern Red Sea state.
It did not mention when the collapse took place.
The war, now in its third year, has shattered Sudan’s already-fragile economy, yet the army-backed government announced record gold production of 64 tonnes in 2024.
Africa’s third-largest country is one of the continent’s top gold producers, but artisanal and small-scale gold mining accounts for the majority of gold extracted.
In contrast to larger industrial facilities, these mines lack safety measures and use hazardous chemicals that often cause widespread diseases in nearby areas.
SMRC said it had previously suspended work in the mine and “warned against its continuing activity due to its posing a great risk to life.”
Before the war, which has pushed 25 million people into dire food insecurity, artisanal mining employed more than 2 million people, according to the industry.
Today, according to mining industry sources and experts, much of the gold produced by both sides is smuggled to Chad, South Sudan, and Egypt, before reaching the industrialists.
Tens of thousands of people have been killed in Sudan, where over 10 million people are currently displaced in the world’s largest displacement crisis.
A further 4 million have fled across borders.

 


How news from the Middle East is shaping Gen Z’s mental well-being

Updated 30 June 2025
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How news from the Middle East is shaping Gen Z’s mental well-being

  • UNICEF-led study warns constant news exposure is overwhelming Gen Z, fuelling anxiety, disconnection, and growing mental health concerns
  • Despite feeling informed and engaged, many young people say nonstop digital headlines are undermining their well-being and sense of agency

DUBAI: Gen Z — those born between the late 1990s and early 2010s — consumes more news than any other type of content, according to a new study unveiled by the UNICEF-led Global Coalition for Youth Mental Health — a finding that many may find surprising.

What is less surprising, however, is the emotional toll that constant exposure to global headlines appears to be taking on young people.

The study, based on a survey of more than 5,600 people aged 14 to 25 globally, found that 60 percent of Zoomers reported feeling overwhelmed by the news. Despite these pressures, they remain determined to contribute to shaping a better future.

In a statement to Arab News, Dr. Zeinab Hijazi, UNICEF’s global lead on mental health, said such anxieties are shaped by a combination of geopolitical conflict, climate and ecological crisis, and economic uncertainty.

Screen grab from a Youtube video showing Dr. Zeinab Hijazi, UNICEF’s global lead on mental health, talking about mental health issues. 

“For many, especially young people, the weight of these overlapping crises is not abstract — it’s deeply personal, showing up in their minds, their bodies, and their sense of hope for the future,” said Hijazi.

The study, which was unveiled at the Social Innovation Summit in San Francisco, raises concerns that feelings of being overwhelmed and disempowered may be eroding young people’s sense of agency.

This is hindering their ability to help shape the future they envision for themselves and generations to come. This impact on mental health is compounded, the study states, by inadequate support and services available to young people.

Infographic courtesy of UNICEF.

“It can feel as though we are caught in a constant storm of challenges, with little control over the forces shaping our world,” said Hijazi.

Given its serious repercussions, Hijazi emphasized that mental health should not be treated as a side effect of global disruption, but as a central pillar of collective efforts to empower youth in shaping a better future.

While Gen Z tends to feel connected and engaged with world events, around 67 percent of the global cohort reported feeling overwhelmed after exposure to news or events in the world, more than news in their country (60 percent) or their community (40 percent).

Escalating geopolitical tensions and instability in the Middle East, particularly since the onset of Israel’s latest war on Gaza in 2023, have raised concerns among analysts about the long-term impact on youth and the potential for fomenting extremism in times of unrest and uncertainty.

The continuing violence against Plaestinians in Gaza is a major cause for concern about its long-term impact on the enclave's youth. (AFP).

Psychologists and media analysts believe that exposure to such news through social media platforms also increases the emotional toll on young users.

Dr. Shaima Al-Fardan, a UAE-based clinical psychologist, highlighted the impact of constant exposure to news and endless scrolling on youth development.

“It can isolate youth from real-life social interactions, which in turn hinders the development of essential social skills. It also consistently heightens negative emotions, reinforcing those emotional patterns over time.”

Caption

According to Attest, a consumer research platform, social media platforms serve as the primary news source for Gen Z. About 43 percent said they rely on social media for daily news, with TikTok leading for 21 percent of users.

While instant access to content across digital platforms can broaden young people’s awareness of global events, Al-Fardan warned that it also exposes them to misinformation and propaganda.

Infographic courtesy of consumer platform Attest.

“It is important to be taught to be critical about news they consume at this time due to their brain development, as they have still not been able to fully form the part of their brain that is responsible for rational decision-making in order to form solid opinions,” she said.

However, she observed that while young people often respond with strong initial reactions, they may quickly become desensitized. “Social media has created a culture of following trends, which makes engagement inconsistent,” she said.

The short, fast-paced nature of social media content may intensify young people’s negative emotional responses to world events.


READ MORE:

• How Israel-Hamas war in Gaza is impacting the mental health of Palestinian children

 Social media fueling ‘devastating’ kids’ mental health crisis: NGO

• Mental health care for children and young adults in refugee camps

• Fake news or free expression: Top CEO Conference panel examines the hazards of digital media age


Elizabeth Matar, assistant professor and chair of Media and Mass Communication at the American University in the Emirates, told Arab News social media platforms have expanded information sources but not necessarily deepened users’ understanding, especially on evolving issues.

“When users are following the news from a media outlet on social media, they only get a headline with an image or video clip and a caption, which does not give the full nuance from reading a full article,” said Matar.

“This is causing a problem because it just feels like headlines and just information coming in without understanding much of the context or forming an ability to piece it together.”

An Iranian woman records a video of a cultural ceremony with her smartphone at Vahdat Hall in downtown Tehran on June 10, 2025. Citizen journalism surges in recent years, as ordinary people armed with smartphones and internet access capture and share news from the ground. (NurPhoto via Getty Images)

She added that this “flood of information,” compounded by inputs from non-traditional news sources such as citizen journalists, can lead to a general sense of uncertainty, deepened by the limited depth of understanding.

“The quality, in contrast to quantity, of engagement with the news must be monitored,” said Matar. “Only then we can understand if deeper engagement with content would have the same negative effect.”

Despite growing awareness and open conversations around mental health in the digital age, many young people continue to face stigma and limited access to support services — even as their familiarity with the topic increases.

A UNICEF-led study found that 40 percent of respondents felt stigmatized when speaking openly about mental health in schools and workplaces, while only half said they knew where to access relevant support resources.

Despite resource availability, the study findings showed that many young people still lacked clarity on where to turn for help and how to build effective coping skills.

Al-Fardan said that access to mental health resources remains limited due to affordability and lack of insurance. She also observed a lack of understanding about what psychotherapy involves.

“There is a limited amount of culturally attuned, affordable, skilled therapists around as well,” she said. “In addition, many people are either unaware or hesitant to share their views, particularly when it comes to processing political information during times of unrest.”

Warning of the long-term impact of unguided online news consumption, Al-Fardan said: “Without boundaries on excessive scrolling, negative thought patterns in the brain can be reinforced, influencing one’s outlook on life and overall functioning.

“This can contribute to mental health disorders such as anxiety and depression, increased social isolation, and a lack of essential skills needed to integrate into society.”

 

 

Education and media literacy are key to addressing these challenges, along with building healthy habits, monitoring exposure, and setting boundaries around social media use.

UNICEF’s Hijazi stressed that ensuring mental health support for young people should be a responsibility shared by governments, schools, employers and the private sector.

“Understanding perception is the first step toward meaningful action,” she said.

“If we can listen more deeply — not just to the facts, but to the feelings — we can begin to design and scale solutions that are grounded in empathy and centered on human well-being.”