LEBANON - Lebanon signed a $10 million investment agreement with Hong Kong-based Zhonghua Lianchuang International Holding Co., Ltd. on June 8 to establish the country's first public laboratory for therapeutic cannabis research and testing.

The agreement was signed at the Grand Serail by Secretary-General of the Cabinet Judge Mahmoud Makkieh on behalf of the Lebanese government, according to the National News Agency (NNA).

The Chinese company will finance the project without direct compensation or conditions. The laboratory will be located at the Faculty of Agronomy at the Lebanese University in Dikwaneh and will operate under the Cannabis Regulatory Authority.

Officials say the facility could help speed up the development of Lebanon's therapeutic cannabis sector, which has long been viewed as a potential source of revenue and investment.

Agriculture Minister Nizar Hani described the agreement as an important step for the sector. He said it would help attract international companies to invest in therapeutic cannabis as well as medicinal and aromatic plants.

Minister Hani added that the deal follows a separate Lebanese-Chinese initiative announced last week to introduce drones into the agriculture and forestry sectors.

The laboratory will test and improve Lebanese cannabis seeds to ensure they meet international standards. Authorities say this could support future exports. The facility will also map growers and create a database of cannabis strains cultivated in Lebanon.

Dany Fadel, president of the Cannabis Regulatory Authority, said the agreement had been under preparation since February.

According to Fadel, the Chinese company will provide around $4 million worth of laboratory equipment. The remaining funds will be used for training and technical support. The project also includes publishing laboratory results online through the authority's new website.

Fadel said the laboratory is expected to receive ISO/IEC 17025 certification, an international standard for testing laboratories. He said the facility would also allow the authority to assess and approve private laboratories in the future.

Lebanon legalized the cultivation of medical and industrial cannabis in 2020. However, the sector has yet to become fully operational.

The regulatory framework prepared by the Cannabis Regulatory Authority is still awaiting approval from the Central Inspection body, where it has been under review since December.