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She began her career with Studio El Fan, a Lebanese talent show, in 1990. The show aired during the 1970s, which continued through to the early 2000s. At the talent show, Labaki won a prize for directing various music video productions.

Labaki obtained a degree in audiovisual studies at Saint Joseph University in Beirut. In 1997, she directed her graduation film, 11 Rue Pasteur, which won the Best Short Film Award at the Biennale of Arab Cinema at the Arab World Institute in Paris. Labaki is unique among her fellow Lebanese and Arab Film Makers in that she was not educated or trained abroad.

In 1998, she attended a workshop in acting at the Cours Florent in Paris. With her sister Caroline Labaki as executive producer, she went on to direct advertisements and music videos for renowned Middle Eastern singers, for which she won several awards. Striving to project the contemporary Lebanese woman, she "created examples of Lebanese women who were very at ease in their bodies."

Director
In 2003, Labaki's name began to become more popular within the Arab media. 2003 was also the year when she began directing music videos for singer Nancy Ajram. The song, "Akhasmak ah" (I'll taunt you), sparked controversy due to the nudity presented and its sexually explicit dancing. Ajram's female character, who serves as a waitress to male customers, was seen as inappropriate and too evocative. Labaki defended her script, stating that Ajram was actually portraying an "assertive and powerful female figure". Labaki and Ajram worked to redefine the image of the current Arab woman as feminine, alluring and in control. Ajram continued colloborate with Labaki on her music videos, "Ya Salam," "Lawn Ouyounak" and "Inta Eih." The three videos were awarded with best music video honors.