Saudi import ban creates an $885 million trade deficit for Lebanon

Trade relations between Lebanon and Saudi Arabia have become one-sided in favor of Saudi Arabia since 2021.

Despite the Riyadh administration’s import ban on Lebanese products, Lebanon’s continued purchase of goods from Saudi Arabia has led to an eightfold increase in the trade deficit.

According to data from the Lebanese Customs Administration, this situation caused a foreign currency outflow of approximately $2 billion from the country between 2021 and 2025.

This process, occurring while Lebanon is experiencing the greatest economic and financial crisis in its modern history, indicates that the country’s authorities are acting disconnected from national interests and are not following a planned foreign policy.

Trade deficit grew 8-fold

According to Lebanese Customs Administration data reported by the Al-Akhbar newspaper, the trade deficit, which averaged $108 million annually between 2016 and 2021, surged to $885 million in 2024.

While Lebanon’s exports to Saudi Arabia averaged $218.2 million annually between 2016 and 2021, this figure dropped to just $415,000 annually in the 2022-2025 period.

In contrast, Lebanon’s imports from Saudi Arabia peaked in 2024 at $886 million, up from $317 million in 2016.

The rupture in relations began in April 2021 when Saudi Arabia seized Captagon pills in a pomegranate shipment from Lebanon.

Following this incident, Riyadh suspended fruit and vegetable imports from Lebanon, and since then, Lebanon’s exports to the country have effectively ceased.

Political reasons prevent retaliation

Petroleum derivatives are the main products Lebanon imports from Saudi Arabia. Diesel imports alone accounted for 72% of the total $886 million in imports in 2024.

Lebanon also imports food products like milk and cheese from Saudi Arabia, despite having domestic production.

Lebanon is part of the Greater Arab Free Trade Area agreement, which came into force in 1998 and provides for full exemption from tariffs among member countries.

While Saudi Arabia’s import halt constitutes a violation of this agreement, Lebanon’s failure to retaliate against this decision is noteworthy.

The primary reason behind this inaction is reportedly a political stance aimed at not provoking Saudi Arabia in any way.