AI and Lebanon’s Digital Transformation
ExecutiveMagazine -

Infrastructure is no longer just about steel and concrete. It is increasingly about computation and connectivity. Beyond moving people and goods, today it must move intelligence. Public-Private Partnership (PPP) encompasses modalities designed to deliver such infrastructure at scale.

The danger is not that AI will take over the world. (Even if it were to, we in Lebanon are powerless to stop it from doing so). The danger is that we will fail to build the right infrastructure for the development of our economy, or that we will build 21st-century infrastructure on 20th-century centralized architectures that are too fragile and dependent to survive minimal server outages.

A national plan

Alas, today, our politicians and decision-makers lack the sophistication and knowledge necessary to chart a path forward for our country that ensures that our people benefit effectively from the wealth being created by the AI economy. Urgent attention must therefore be given to developing a national socio-economic vision that integrates AI and high tech from the start, not as an afterthought, but by design.

The deployment of artificial intelligence in Lebanon can be one of the most compelling case studies in technological leapfrogging and national renewal – similar to how cellular technology PPPs (in the form of Build-Operate-Transfer (BOT) transactions, which are a form of PPP) allowed Lebanon in the early 1990s to become one of the countries with the highest mobile telephony penetration in the world. As a nation confronting profound structural challenges, Lebanon finds itself at an inflection point once again, where AI technologies offer not merely incremental improvement but the potential for systemic transformation. The “4 Lebanon” initiative—grounded in the pillars of People, Innovation, Processes, and Infrastructure—provides a framework for this transformation. Yet, its success hinges on our capacity to anticipate risks and architect robust mitigating strategies. Critically, the scale and complexity of this undertaking exceed the capacity of government alone. Of course, AI-driven governance platforms, supported by substantial international investment such as the World Bank’s US$150 million Digital Acceleration Project approved for Lebanon as part of a $350 million economic and social package in January 2026, can help attract the private sector, especially in the form of PPP, where it contributes not only know-how but financing as well. Indeed, crowding-in the private sector and its capabilities early on would certainly make a big difference.

Public-Private Partnership

PPP offers the mechanisms through which Lebanon can leverage bilateral or multilateral investments with the capital, expertise, and operational efficiency required for a successful digital transformation.

At the beginning, and until homegrown technology can start making a difference, there is no need to reinvent the wheel. Following the example of other countries that have developed and implemented technology PPPs is sufficient. I see four axes for focus:

  • Smart city infrastructure that can help reduce traffic jams, monitor traffic infractions, improve solid waste collection and management, improve sewer inspections, promote multi-modal public transport, and enhance municipal services. Alibaba City Brain, deployed in Hangzhou, is a small example of this.
  • A major, tier-four national data center can play an important role in securing government data while improving access to global digital networks. Sovereignty concerns have fueled the demand for data center PPPs in India, France, Singapore, and many other countries. Better connectivity, resilience, and independence from foreign public- and private-sector actors are additional benefits in this regard. (While we are on the subject of sovereignty, I should point out that partnership with international technology partners such as Microsoft, Google, AWS, and others may be unavoidable, but it should be managed through carefully structured relationships. PPP frameworks provide the mechanism for balancing access to global capabilities with the protection of national interests. Cloud service agreements with major providers, for example, should be structured as public-private joint ventures rather than simple procurement. The UAE’s model with major cloud providers demonstrates how smaller nations can negotiate favorable sovereignty protections through strategic partnership structures.
  • E-Government applications, which have traditionally not required AI, are being enhanced by the introduction of AI into their systems. Virtually all the services provided by the public administration, at the national or local level, can be made many times more efficient (and predictive) by using AI. Many countries, from the Philippines to Chile, are implementing such strategies. Estonia’s X-Road e-government system is being similarly improved. Lebanon could see public-private or even public-public partnerships in this regard. Automated systems for licensing, taxation, and social service distribution reduce friction points where corruption has historically flourished, creating transparency mechanisms that rebuild public trust.
  • Finally, it is clear to everyone that Lebanon’s society, with its large concentration of highly educated young men and women, could greatly benefit from public-private partnerships aimed at fostering incubators, accelerators, venture capital, private equity, cybersecurity, and other initiatives that help Lebanese entrepreneurs and startups find outlets for their creativity and potential. The explosive growth of AI Agent use, powered by developments such as Anthropic’s MCP, Google’s A2A, Cisco’s AgenticOps, and most recently OpenClaw, provides immense opportunities for young Lebanese developers to create businesses that may well become unicorns.

A government strategy should use the above recommended areas of focus to kick-start the country’s AI journey. By enabling Lebanese professionals to participate in the global digital economy while remaining resident, we create a sustainable mechanism for foreign currency inflows and knowledge retention that addresses the chronic brain drain that has depleted the nation’s intellectual capital.

Public-Private Partnerships can also benefit ancillary areas important for AI and Tech. The Government could achieve more reliable power generation in a country that suffers from chronic power shortages, perhaps through satellite-based internet connectivity, and a wider FTTX (optical fiber) network through PPP.

Education and capacity building

Lebanon also needs to implement comprehensive reskilling programs specifically targeting workers in vulnerable sectors: administrative roles, basic logistics, and routine data entry. The optimal model involves tripartite partnerships among government, educational institutions, and private-sector employers. The government provides policy frameworks and baseline funding; private companies commit to hiring graduates from certified programs; and educational institutions deliver training aligned with actual market needs. The NUMŪ platform, Lebanon’s national digital and AI capacity-building program launched in Nabatieh in mid-January of this year, exemplifies this approach but should be expanded through formal PPP agreements with technology companies, consulting firms, and business process outsourcing providers. This demand-driven approach ensures relevance and employment outcomes while sharing costs across stakeholders.

Proposed government initiatives

  • Hardware-supported hackathons: Last summer, I proposed – and still do – that the government use US$500,000 to buy 2,000 NVIDIA Jetson Orin Nano Super Developer Kits and gift them to 2,000 serious young developers and run hackathons using these devices for emergent intelligence and robotic applications, among others. One never knows what potential lies dormant in smart young minds until they have the tools with which to bring it to life.
  • A billion-dollar fund: Another proposal of mine was part of the platform I ran on for President of Lebanon: for the government to establish a US$1 billion fund using its gold reserves. Such a fund would provide interest-free loans and grants to young men and women pursuing AI- and Tech-related courses or university studies. In a similar vein, the Government could establish a National Digital Infrastructure Fund to invest in Lebanese tech enterprises. It would differ significantly from the Banque du Liban Circular 331 in its structure. It would invest alongside private-sector investors to complement their investment, not to guarantee it.

Private sector involvement is key

Whether it is through the mechanisms suggested here above or through more traditional forms of public-private partnership, PPPs are not merely financing mechanisms; they are governance and crowding-in models suited to the complexity and urgency of digital transformation. They bring private sector efficiency, innovation, and capital to bear on public challenges while maintaining democratic accountability and social purpose. For Lebanon, PPPs represent the most credible pathway to achieving the scale and quality of digital infrastructure, skills development, and service delivery that AI-enabled transformation requires. What is needed is a clear government vision and strategy that can convince the private sector to invest and help brighten our future.



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