A farmer tends to cannabis plants in a field in the Yammouneh area, west of Baalbek, Lebanon in 2018. Reuters
A farmer tends to cannabis plants in a field in the Yammouneh area, west of Baalbek, Lebanon in 2018. Reuters
A farmer tends to cannabis plants in a field in the Yammouneh area, west of Baalbek, Lebanon in 2018. Reuters
A farmer tends to cannabis plants in a field in the Yammouneh area, west of Baalbek, Lebanon in 2018. Reuters

Lebanon becomes first Arab country to legalise cannabis for medical use


Joyce Karam
  • English
  • Arabic

Lebanese legislators approved a law on Tuesday legalising the cultivation of cannabis for medicinal and industrial use.

The decision, which makes Lebanon the first Arab country to legalise marijuana growing, offers economic incentives for the debt-ridden state.

It makes the state the sole proprietor for trading cannabis, which has been grown illicitly for decades in Bekaa, in the east of the country.

Lebanon's Parliament approved the bill in its session on Tuesday, despite opposition from Hezbollah representatives.

Hezbollah's allies in the government, including representatives of President Michel Aoun and Speaker Nabih Berri, supported the decision.

  • A farmer is seen tending to cannabis plants in a field in the Yammouneh area west of Baalbek, Lebanon, August 13, 2018. Reuters, file
    A farmer is seen tending to cannabis plants in a field in the Yammouneh area west of Baalbek, Lebanon, August 13, 2018. Reuters, file
  • A farmer is seen in a cannabis field in the Yammouneh area west of Baalbek, Lebanon, August 13, 2018.Reuters, file
    A farmer is seen in a cannabis field in the Yammouneh area west of Baalbek, Lebanon, August 13, 2018.Reuters, file
  • Workers cultivating plants at a cannabis plantation in the village of Yammouneh in Lebanon's eastern Bekaa Valley. AFP, file
    Workers cultivating plants at a cannabis plantation in the village of Yammouneh in Lebanon's eastern Bekaa Valley. AFP, file
  • Anti-government demonstrators wave Lebanese flags as they protest in their cars, amid a countrywide lockdown to combat the spread of the coronavirus disease in Beirut, Lebanon. Reuters
    Anti-government demonstrators wave Lebanese flags as they protest in their cars, amid a countrywide lockdown to combat the spread of the coronavirus disease in Beirut, Lebanon. Reuters
  • An anti-government protester bangs a knife against a lid of a pot, as she covers her face with a national flag to help curb coronavirus pandemic during a protest the economic situation in downtown Beirut. EPA
    An anti-government protester bangs a knife against a lid of a pot, as she covers her face with a national flag to help curb coronavirus pandemic during a protest the economic situation in downtown Beirut. EPA
  • Anti-government demonstrators wearing face masks gesture as they pose during a protest, amid a countrywide lockdown to combat the spread of the coronavirus disease. Reuters
    Anti-government demonstrators wearing face masks gesture as they pose during a protest, amid a countrywide lockdown to combat the spread of the coronavirus disease. Reuters
  • Anti-government demonstrators wearing face masks gesture as they protest during a countrywide lockdown to combat the spread of the coronavirus disease. Reuters
    Anti-government demonstrators wearing face masks gesture as they protest during a countrywide lockdown to combat the spread of the coronavirus disease. Reuters

A study by the global consultancy company McKinsey in 2018 recommended the move as a way to revitalise the Lebanese economy.

It estimated that it could generate as much as $1 billion (Dh3.67bn) in revenue a year, Bloomberg reported.

The UN Office on Drugs and Crime ranked Lebanon in 2018 as one of the world's top five producers of cannabis.

Firas Maksad, a policy analyst and professor at George Washington University in the US, said for the move to be successful, a lot would rely on implementation.

"If regulated and taxed properly, this is a net positive for Lebanon," Mr Maksad told The National.

But the decision was a reversal of policy.

“It is important to note that Lebanon spent many millions of foreign assistance dollars in the nineties to fight cannabis farming in the Bekaa,” Mr Maksad said.

He said that Hezbollah’s public opposition to the bill might be only posturing.

“Hezbollah took a principled position against it given the party's claimed Islamic credentials, but practically it signalled to its allies that they can vote for the legislation,” Mr Maksad said.

The party has strong presence in the Bekaa Valley, where most of the cultivation occurs.

Abramovich London

A Kensington Palace Gardens house with 15 bedrooms is valued at more than £150 million.

A three-storey penthouse at Chelsea Waterfront bought for £22 million.

Steel company Evraz drops more than 10 per cent in trading after UK officials said it was potentially supplying the Russian military.

Sale of Chelsea Football Club is now impossible.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

The biog

Born: Kuwait in 1986
Family: She is the youngest of seven siblings
Time in the UAE: 10 years
Hobbies: audiobooks and fitness: she works out every day, enjoying kickboxing and basketball

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Why are asylum seekers being housed in hotels?

The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.

A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.

Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.

The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.

When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.