In its annual assessment of the market accessibility of 85 developed, emerging and frontier equity markets, global portfolio analytics and indices provider MSCI, Inc. maintained Lebanon in its Frontier Markets category. It evaluated the country's stock market based on five accessibility criteria that are openness to foreign ownership, ease of capital inflows and outflows, efficiency of the operational framework, the availability of investment instruments, and the stability of the institutional framework. It said that the five criteria reflect the views of international institutional investors, which generally put a strong emphasis on the equal treatment of investors, the free flow of capital, the cost of investment, unrestrictive use of stock market data, and country-specific risks.

In terms of openness to foreign ownership, MSCI said that there are no constraints on foreign ownership of stocks listed on the Beirut Stock Exchange, except for Israeli nationals who are prohibited from investing in Lebanese companies. It noted that Lebanon could improve equal rights to foreign investors, as company-related information is not always readily available in English. As such, Lebanon is, along with Sri Lanka, the only frontier markets with a "no major issues" rating in terms of investor qualification requirements, as the remaining countries have a "no issues" rating. Also, it is one of 12 frontier markets with a "no major issues" rating in terms of equal economic and voting rights to foreign investors. Further, Lebanon is one of 23 frontier markets with a "no issues" rating in terms of foreign room level, which mainly reflects the limit to foreign ownership in locally-listed companies. It is also one of 22 markets with a "no issues" rating in terms of foreign ownership limit.

Regarding capital inflows and outflows, the review said that, since October 2019, Lebanese authorities have put in place restrictions on the repatriation of funds outside Lebanon. These measures have impacted the ability of foreign investors to repatriate funds from investments on the local equity market. As such, MSCI downgraded Lebanon's rating in terms of ease of capital flows from a "no issues" rating to an "improvements needed" rating. It also noted that there is no offshore currency market and that there are constraints on the onshore currency market, as foreign investors are not allowed to hold accounts denominated in Lebanese pounds. As such, it placed Lebanon among eight markets with an "improvements needed" rating in this area.

Regarding the efficiency of the operational framework, the assessment considered that the market entry process needs to improve, as the registration of foreign investors is mandatory and may take up to five days. Further, it said that not all market regulations are available in English, and that the flow of information can be enhanced, as detailed stock market information is not always disclosed in English. Lebanon is among 11 frontier markets that received a "no major issues" rating in terms of market regulations, and one of six markets to get the same rating in terms of information flow. In addition, the survey noted that almost all market infrastructure indicators need improvement, except for trading where Lebanon has a "no issues" ratings. In terms of clearing and settlement procedures, the review said that there is no functioning nominee status as well as no omnibus structures, while overdraft facilities are prohibited. In terms of custody, it indicated that there is no formal segregation between custody and trading accounts for transactions on the Beirut bourse. It added that  foreign investors do not have access to global custodians in the Lebanese market. In terms of registry and depository, it stated that not all listed shares are dematerialized, and that there is no central registry, with some securities registered at the issuer level. In terms of transferability, it said that in-kind transfers and off-exchange transactions are prohibited.

Finally, the review has an "improvements needed" rating on the stability of Lebanon's institutional framework, which reflects the political situation in the country. Lebanon's rating on this category is similar to the ratings of five other frontier markets. But the assessment did not rate Lebanon on the availability of investment instruments category. Lebanon is one of 24 countries worldwide that fall under MSCI's definition of Frontier Markets. The other Arab markets in the same category are Bahrain, Jordan, Kuwait, Morocco, Oman and Tunisia. 

In November 2007, MSCI included Lebanon in its MSCI Frontier Markets Index, a fully investable index for frontier equity markets. The index contains stocks from 27 developing markets in Asia Pacific, Emerging Europe, the Middle East & Africa, and the Americas.

Figures issued by the Ministry of Finance show that the compensation of public-sector personnel totaled $1.7bn in the first quarter of 2020, constituting an increase of 0.6% from $1.68bn in the same period of 2019. Salaries, wages and related benefits accounted for 63.8% of the total in the first three months of 2020, followed by retirement benefits (27.6%), and end-of-service indemnities and transfers to public institutions to cover salaries (4.3% each). The compensation of public-sector personnel represented the largest component of current primary spending and accounted for 66% of such expenditures in the first quarter of 2020, compared to 76.5% in the same period of 2019. Also, the compensation of public-sector personnel absorbed 76.1% of total fiscal receipts in the covered period relative to 65.4% in the first quarter of 2019. It accounted for 43.7% of overall fiscal spending in the first three months of 2020 compared to 47.5% in the same period of 2019.

Salaries, wages & related benefits paid to public-sector employees reached $1.1bn in the covered period, constituting an increase of 6.7% from $1bn in the first quarter of 2019. This category includes basic salaries, employment benefits, allowances, contributions to civil servants' cooperatives, as well as contributions to other mutual funds providing health insurance for specific categories of civil servants, mainly civil and religious judges, and employees at the Parliament. In addition, retirement benefits grew by 9.3% annually to $468.3m in the first quarter of 2020, and transfers to public institutions to cover salaries rose by 41% year-on-year to $73.6m, while end-of-service indemnities declined by 62.1% annually to $72.3m in the covered period.

The U.S. State Department announced that it granted $20m in emergency support to cover half of the tuition of 1,800 students at the American University of Beirut (AUB) and the Lebanese American University (LAU). The funding aims to help alleviate the impact of Lebanon's challenging economic conditions on the education sector in the country.

The emergency tuition support is part of the "Tomorrow's Leaders" program, which is an initiative funded by the State Department's U.S.-Middle East Partnership Initiative (MEPI). The program provides tuition and other academic and living expenses for a period of four years to academically-qualified and financially-disadvantaged students at American accredited institutions in the Middle East and North Africa region.

AUB generated $208.2m, or 36.6% of its revenues from tuition payments in the academic year 2018-19. It also provided $49m in financial aid in the same year, which accounted for 8.6% of the university's total spending. Further, AUB's endowment reached $769m at the end of June 2019. In parallel, AUB announced that it will lay off up to 25% of its workforce, close administrative departments, and discontinue work on a project for a new medical center. The university forecast its annual revenues for academic year 2020-21 at $249m, which would constitute a reduction of 60% from projected revenues of $609m in academic year 2019-20.

In parallel, LAU generated $143m, or 75.8% of its revenues from tuition payments in the academic year 2017-18, the latest available figures. It also paid $34m in financial aid in the same year, which represented 18% of its total spending. According to the National Association of College and University Business Officers, LAU's endowment reached $543.4m at the end of June 2019.