Re-opened after 11 years, the Beirut Stock Exchange is moving towards a new and enhanced future. First established in 1920, it now acts as a deciding factor towards the growth of Lebanon economy. The Beirut Stock Exchange previously dealt in gold and foreign investments but presently concentrates on attracting foreign investors to increase the inflow foreign capital.
Beirut Stock Exchange: The past story
The Beirut Stock Exchange, located in Beirut, came into being in 1920. Being the commercial center of Middle East, Beirut played a pivotal role in the business and financial sector of the entire Arab world. One of the major financial institutions of Beirut is the Beirut Stock Exchange.
The first of its kind in Middle East, Beirut Stock Exchange dealt mostly in gold and foreign exchange in its early years. The financial market attracted investors and dealers from public utility companies of Lebanon, France and Syria like Aleppo Electricity, Beirut Port Company, Beirut Electricity, Radio Orient, Damascus and Hama Rail Road Company, Beirut Water Company, Regie Company, Latakia Asphalt and Petroleum and also the real estate companies of Lebanon and France. These companies featured in the stock exchange listings of both Beirut and Paris.
The Stock Exchange of Beirut operated without conforming to any rule or regulation for 34 years. In 1945, The Lebanese government laid down the rules and regulations that were to govern the stock market of Beirut thereafter. During 1950s and 1960s, the stock exchange earned a worldwide reputation as being one of the major
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financial markets of the Middle East but in 1983, the operations of Beirut Stock Exchange came to a halt with the stock exchange being shut down. This was because of the civil war that broke out in Lebanon in 1975.
Current Situation of Beirut Stock Exchange
Long after the end of the civil war, the Stock Exchange of Beirut was re-opened. It started operating once again after a period of 11 years in order to regain its previous position and role in the global financial market.
Currently, the main emphasis of the Beirut Stock Exchange is on attracting foreign investors since economic growth depends largely on foreign investments and inflow of capital. With the growth of foreign investment in the Beirut stock market, it will attain stability and recognition in the world trade market as well. Studies reveal that the stock exchange will require an estimate of $ 10 billion to $ 20 billion in the coming decades for the purpose of economic recovery.
Beirut Stock Exchange will try enhancing the tourism sector of Lebanese economy by developing the international airport and the sea port of Beirut. It will also incorporate economic liberalization in order to help in future progression of the domestic economy of the city of Beirut.
All set for a new future, the Beirut Stock Exchange has re-emerged to contribute and help rebuild the country's economy. It was not easy for the stock exchange to establish its former reputation but Beirut Stock Exchange is all ready to face the challenges that are coming up.
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