Updated laws on e-transactions, offshore companies, and code of commerce

Pressure to update the seven-decades-old Lebanese code of commerce was threefold. First, pressure to reform followed the decision of Banque du Liban (BDL), Lebanon’s central bank, to issue Circular 331 in 2013 to encourage investment in the startup ecosystem, as startups by definition entail innovative technology and development language that is foreign to rigid and non-adaptive Lebanese laws. Second, the revolution of information technology and its use in electronic transactions created an ecosystem that the code was unable to handle and, as such, was a disincentive to foreign investment. Third, pressure to update the code also came from international consulting company McKinsey’s Lebanon Economic Vision, which advocated for 11 statutes to be accelerated to provide a business friendly environment, including the code of commerce.  To address these gaps, the Lebanese Parliament has enacted three new laws: Law 81 (2018) on electronic transactions and personal data; Law 85 (2019) on offshore