The Lebanese authorities have set as priority the improvement of the investment climate in Lebanon. For this purpose, serious efforts were deployed to modernize the regulatory framework of investment in order to offer the most suitable climate to foreigners and nationals desiring to invest in Lebanon.

This report aims to briefly highlight the most recent legislative changes through introducing new legislative acts and treaties, which have been adopted during the last two years, as detailed below:

Date of legislative	Description
2001	Law amending the 1969 law on the acquisition by foreigners of real estate and real estate rights in Lebanon and law designed to promote investment in Lebanon
2002	Law amending the Lebanese law on civil proceedings regarding arbitration.
2003	– Law ratifying the 1965 Washington Convention on the Settlement of Investment Disputes between States and National of Other States. – Entry into force of bilateral investment agreements and tax conventions.

Section I:

The 2001 Law Amending the 1969 Law on the Acquisition by Foreigners of Real Estate and Real Estate Rights in Lebanon.

Lebanese and non-Lebanese persons have the right to own real estate in Lebanon. However, the 1969 law on acquisition by foreigners of real estate rights restricted non-Lebanese, or considered as non-Lebanese, access to real estate. Since the 2001 amendment, the access to real estate for non- Lebanese has been simplified.

Before the amendment:

Legislative decree No. 11614, dated January 4, 1969 concerning real estate acquisition by non-Lebanese, stipulated the following:

1. Foreigners (non-Arabs) must receive the approval of the Council of Ministers before the acquisition of real estate and,
2. Arab nationals may acquire up to 5000 sq. m of real estate without seeking prior approval.

After the amendment by law No. 296 of April 3, 2001:

• The rule:
  All non-Lebanese persons, whether legal or natural person, and Lebanese legal persons considered by the Law as non-Lebanese as defined by Article 2 (at least one share owned by non-Lebanese), willing to acquire any real estate right on the Lebanese territory are required to obtain a license granted by decree from Council of Ministers upon proposal of the Minister of Finance.
• Exception:
  There are some cases that do not require a license, of which:
  The acquisition by non-Lebanese naturals and legal persons and Lebanese legal persons considered by the Law as non-Lebanese of built property set for building, of a maximum of 3.000 sq. m throughout the Lebanese Territory.
• Limitations:

1. It is forbidden to license non-Lebanese naturals and legal persons and Lebanese legal persons considered by the Law as non-Lebanese to acquire more than 3% of the total surface of Lebanon, providing that it would not exceed 3% of the surface of each caza, or 10% of Beirut, where they are allowed to acquire up to 10% of its surface.
2. In the following cases, the rule in only applicable to 50% of the area owned:
   a- Partnership or Limited Liability Companies, in cases where more than 50% of the shares are held by Lebanese partners, or fully   Lebanese-owned companies whose statutes prohibits the transfer of shares to non-Lebanese.
   b- Joint Stock Companies or Partnerships Limited by Shares, where more than 50% of the shares are held by Lebanese partners or by fully Lebanese-owned companies whose statutes prohibits the transfer of shares to non-Lebanese.

3. The licensed area, where ownership or any other real estate has been acquired, should be used for the purpose specified in the license application, and the implementation of the project should be completed within 5 years from the registration date. This is renewable only once decision of the Council of Ministers.