Beirut stock exchange : financial market development for future economic growth.

Abstract

The recent political developments in the MENA region continue to leave their mark on the economic and financial landscape of Lebanon. It has become important to diversify the country’s sectors and industries through liberalization of the financial market, while at the same time equipping governmental institutions with the adequate legislation that secures the future of investments and financial development in the country. Recently in 2011, the government has enacted a law which vitalizes the Beirut Stock Exchange and empowers it by becoming less dependent on governmental directives and more open to the free market. This paper assesses the situation of the BSE and discusses its recent development while pointing out the needed reforms to strengthen the role of the exchange in fostering economic growth through financial development. By comparing different regional stock exchanges performance and drawing on the experience of other exchanges i.e. Qatar, Dubai and by capitalizing on the direct influence of the Middle Class, this study evaluates the current position of the Beirut Stock Exchange and puts forth recommendations that are directed towards the empowerment of the BSE and subsequently the Lebanese financial market.