Lebanon’s Digital Transformation: A Key to Economic Revival, Says Shehadeh
Lebanon's digital shift is key to growth, says Shehadeh, urging AI investment and innovation. ©Al-Markazia

Lebanon’s Minister of the Displaced and State Minister for Technology and Artificial Intelligence, Kamal Shehadeh, has underscored the critical role of digital transformation in driving the country’s economic development.

In an interview with CNBC Arabia, Shehadeh described digital transformation as “a key step to strengthening economic growth,” highlighting the importance of advancing digital governance. According to him, improved digital systems would boost public sector efficiency and streamline administrative procedures.

Shehadeh emphasized that the artificial intelligence (AI) industry holds significant potential to fuel Lebanon’s digital economy, create jobs, and foster innovation in the tech sector. He noted that AI could enhance government operations, improving the speed and transparency of public services.

The minister called for a comprehensive strategy to build Lebanon’s capacity in IT and AI, pledging to turn the country into a “digital hub” despite ongoing challenges.

He stressed that the private sector would play a leading role in AI development, while the government must ensure fair competition by introducing appropriate legislation. Shehadeh also highlighted the need to attract investments and secure funding to fast-track Lebanon’s digital transformation.

“Lebanon has a strong pool of tech talent,” Shehadeh said, expressing confidence that the country’s skilled youth could drive a major leap in the digital sector.

He also pointed to the potential economic impact of establishing tech industry free zones, arguing they could play a pivotal role in Lebanon’s recovery. Restoring investor confidence, he added, is a top priority in the months ahead.

Lebanon currently ranks 76th out of 193 countries in the 2023 Government AI Readiness Index and 7th among lower-middle-income nations. The index evaluates countries based on 39 factors across 10 pillars, grouped under three main indicators: “Governance,” “Technology Sector” and “Data and Infrastructure.”

Shehadeh encouraged Lebanon to learn from regional leaders such as the UAE, Saudi Arabia and Qatar, which have invested billions in advancing artificial intelligence.

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