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Update: I just noticed Mustapha already mentioned the good news.

I met two guys from PayPal at the ArabNet conference today and they informed me that Lebanon will soon be authorized on PayPal (They didn’t say how soon though). I asked them whether Lebanon is blocked due to political reasons and they said that it is not related and that there are many countries in the Middle East not yet allowed to use the service. In fact, even Russia is not yet on their authorized countries’ list but will be very soon.