A 2019 report by the United Nations Office on Drugs and Crime (UNODC) estimated that Lebanon was the third largest source for ‘cannabis resin’ worldwide, only behind Morocco and Afghanistan. The UNODC estimated that roughly 6% of all the cannabis resin on earth originates in Lebanon.

Two historical measures largely govern cannabis activity in Lebanon. The first came in 1998, when Lebanon passed law 673/1998, which criminalized the use of illicit drugs and scheduled cannabis as a “very dangerous substance with no medical use.”

The second occurred in 2020, when Lebanon became the first country in the region to somewhat liberalize its cannabis policies by permitting limited cannabis farming. As time has gone on, the measure approved in 2020 has proven to be largely symbolic, with the nation’s cabinet refraining from implementing decrees to establish a regulatory authority.

“In April 2020, after decades of discussions and controversy, the Lebanese parliament voted a law legalizing the cultivation, production, and sale of cannabis for medicinal purposes. Although the law leaves several unanswered questions and awaits implementation, the symbolic nature of this step in recognizing a positive role of cannabis in the local economy is significant on a regional level.” wrote a team of researchers affiliated with various health and academic institutions based in Lebanon.

“The social experiment taking place in Lebanon is fraught with risks, given the unstable political situation and chronic economic challenges. The reactions to the law have been mixed with several scientific bodies such as the Lebanese Psychiatric Society criticizing the absence of proper consultation of stakeholders.” the researchers also wrote.

With Lebanon’s economy struggling, discussions have turned toward exploring new ways to generate revenue and boost the nation’s economy. Talk of implementing the previously approved medical cannabis production measure has emerged as a result.

“If cannabis cultivation were legalized and properly regulated, Lebanon could generate between $1 billion and $3 billion annually in state revenue, according to Agriculture Minister Nizar Hani.” reported LBC International.

“That would amount to roughly one-quarter to one-half of the state’s projected revenue for 2024. In that case, cannabis could become a major source of income, more effective than other alternatives that often result in higher taxes and fees for citizens without tangible returns.” the outlet also reported.

A report presented by leading international cannabis economist Beau Whitney, founder of Whitney Economics, at the recent International Cannabis Business Conference in Berlin estimates that the potential global medical and adult-use cannabis market is roughly $237.8 billion. Separately, Whitney projects that the potential value of the global industrial hemp industry could be as much as $456.2 billion.