Diaspora business engagement in Lebanon

In collaboration with DRC Lebanon and funded by Novo Nordisk Fonden under the CHASE Project, DRC Diaspora Programme has in 2023 conducted research on diaspora business engagement in Lebanon.

The report documents how the Lebanese and Syrian diaspora contribute to the local economy and job growth in five selected communities in Lebanon. It outlines various business engagement models by the diaspora, detailing their dynamics with relatives in their countries of origin. The research underscores the vital role diaspora engagement plays in livelihoods and job creation in Lebanon. 

Key findings

1. Investing to support relatives: Diaspora primarily aids relatives in establishing businesses to replace traditional remittances for daily expenses.       

2. Two main business initiatives: Diaspora members assist relatives in starting businesses through for-profit or for-charity approaches.                                                                                                           
3. Family as business partners: Diaspora engages family members as primary partners for initiating and managing business investments.                                                                                                                     
4. Familiarity and trust: Trust and familiarity drive business collaborations within the family, considered essential for diaspora financial contributions.

Why is the diaspora important?

The diaspora is the backbone of Lebanon's economy, contributing significantly with 6.84 billion USD in remittances in 2022, accounting for 33% of the GDP. While the majority of diaspora members send remittances for immediate family needs, others support relatives to establish self-reliant businesses and thus reducing dependency on transfers.

The impact of diaspora engagement in Lebanon

Diaspora business engagement had a clear positive impact on business owners and their families. Respondents attribute their business starts and growth to diaspora support, enabling job creation, improving working conditions, providing for the wider family and empowering women. For the diaspora, these investments ensure family well-being, savings, and retirement in Lebanon.