In the midst of the economic crisis, Lebanon is struggling to provide basic economic services to its population. Faced with mounting challenges, the idea of establishing a sovereign fund to manage state-owned enterprises (SOEs) has gained traction. Proponents of this approach argue that recruiting top private management will ensure good governance, transparency, financial viability, operational efficiency, and ultimately lead to improved service provision. While opponents of the sovereign fund argue that it may serve as a veiled scheme to sell off Lebanon’s state asset. LIMS explained that the primary objective of the proposed sovereign fund is to eliminate the losses incurred by SOEs and gradually phase out budgetary transfers, particularly within the energy sector. These are entities such as Electricity du Liban (EDL) and Ogero, the national internet provider. However, LIMS highlighted that the SOEs are not only state-owned companies, but also hold a monopoly over their respective sectors. Regardless of whether the SOE’s are managed through a sovereign fund, a public-private partnership, or directly by the ministry, it is imperative to address the monopolistic control that these SOEs possess over essential sectors. This is particularly relevant considering Lebanon’s current struggles with electricity outages, internet disruptions, and exorbitant costs. The introduction of competition in the electricity sector holds immense potential for Lebanon’s manufacturing and agriculture areas. Similarly, introducing competition in the internet sector would have a transformative impact on businesses in sectors of telecommunications, e-commerce, and technology. Those reforms would attract domestic and foreign investments, contribute to the growth, foster innovation, and enhance Lebanon’s competitiveness in the global landscape.

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