Innholdsfortegnelse for Feb 1 2015 i Lebanon Opportunities

Oil prices have decreased significantly in recent months, reaching a five-year low of below $50 per barrel. The oil market has slumped by more than 50 percent since June 2014. The International Energy Agency (IEA) is forecasting even steeper price drops. As an oil importer, the country will benefit from lower oil prices in many economic sectors. “The national economy should enjoy some relief due to such developments in the global oil market,” said economist Marwan Iskandar. IMPROVEMENT IN GDP Lower oil prices are expected to contribute to economic growth. The high import bill is heavily weighed by its petroleum component (6.7 million tons in 2013). The shrinking energy bill will free up financial resources for investments and better cash flow management, which will lead to more growth. The drop…

Young firms and startups are the engines of job creation, according to a World Bank report, entitled ‘Jobs or Privileges: Unleashing the Employment Potential of the Middle East and North Africa’, published in December 2014. Micro-startups (firms with less than four years of activity and less than four workers) generated about 66,000 jobs between 2005 and 2010. “Many government programs, policies, and incentives, as well as many initiatives by the Central Bank (BDL), were launched in favor of young and startup firms in recent years,” said Haneen Sayed, Program Leader at The World Bank-Lebanon. “This has contributed to the growth of these companies and the increase of their share in job creation,” she said. The firm census data were obtained from the Central administration of Statistics (CAS) and included only…

There are new entrants to the banking sector at a time when consolidation is the name of the game. Three new banks have been launched in the past three years, bringing the number of operational banks to 65. More are on the way. WHY OPEN NEW BANKS? Although the market seems saturated with banks, relative to the size of the economy, many entrants see a potential. “The banking sector has many attractive factors, including high profitability, stability of performance, resilience against crisis and compliance with high global banking standards,” said Fadi Assali, Founder and Co-Chief Executive Officer of Cedrus Invest Bank, which opened in 2011. Banking has proven to have sustained profitability. Deposits had an average growth rate between six to eight percent in the past few years. “The banking…

For the past few years, the skiing landscapes in Laqlouq, Faraya, Kfardebian and its Faqra subdevelopment have been getting a facelift. Mega developers have brought in new entertainment concepts to resorts and varied the unit sizes and prices. Their large mixed-use communities of resorts, hotels, supermarkets and entertainment centers provide amenities to residents who choose to live in their ski chalets year-round. This trend has also attracted small developers, who are exploring the less developed areas around the magnetic and expensive Faqra. Building in remote areas has driven developers to also establish the required infrastructure for a more satisfactory living experience. WHO’S WHO The six major developers who have established their presence in these ski resorts are: BREI, FFA Real Estate, Sayfco, Moawad and Partners, Plus Properties, and Zardman. Sayfco…

The hat is not to everyone’s taste, but according to fashion experts, it is here to stay. The functional use of a hat is still the predominant reason to wear one, but many like it as a fashion statement. A well-made hat keeps out the cold and looks good doing it. “There’s an equation to designing and wearing hats: It balances the proportions of your face. It’s like architecture or mathematics,” said Irish designer Philip Treacy. INDIVIDUAL STYLE Hats are popular again, symbols of prestige and social class, according to Fadi Fawaz, Sales Manager at GGF, a retail shop with a large collection of hats. “Men in their 20s and 30s have been purchasing hats to show style,” he said. The ‘Mad Men’ TV series has popularized this retro look.…

FUNDING FOR TRIPOLI SLAUGHTERHOUSE The Council for Development and Reconstruction (CDR) signed a $19 million loan agreement with the Kuwait Fund for Arab Economic Development (KFAED), to build and equip a slaughterhouse in Tripoli. “This project dates back to about ten years, but no funds were available to support its implementation,” said Wafa Charafeddine, Director of Funding at the CDR. “Finally, we succeeded in getting support from the KFAED,” she said. The loan agreement is subject to approval by Parliament. The interest rate on the loan is two percent, with a grace period of three years, starting from the first withdrawal of funds. The loan, which will cover the total cost of the project, will be used to finance the import and establishment of mechanical and electrical equipment, as well…

Opportunities rise from challenges and those are piling up. The country has integrated into the woes of its surrounding region, but its traditional dependence on global markets has, this time, been a source of good news. All this has altered the economic equation and is calling to review basic principles. Our special report has explored the new variables from a variety of angles. REGIONAL INFLUENCERS Former Prime Minister Fuad Siniora is bringing his political and financial perspective into a changing region and is calling for a new Arab world economic order. He is calling to put the economy first, with a focus on what really matters, which is addressing the socio-economic needs of citizens around the Arab world. OIL The impact of totally new prices of oil is being reported.…

The influx of the Syrian refugees has left two opposing results. The refugees are pressuring infrastructure services, power and water resources, transportation and medical services, and the tourism sector. On the other hand, they have introduced a new purchasing source, increased consumption rates and contributed to lower production costs. “Syrian refugees have pushed the economy forward, otherwise the economy would have registered negative growth rates in the past three years,” said Kamal Hamdan, Managing Director of Consultation and Research Institute (CRI). IMPACT OF THE SYRIAN CRISIS The geographical proximity and political link between both countries has impacted directly on Lebanon’s economy. The Syrian crisis has led most of Lebanon’s economic indicators to decline. The number of tourists decreased by 43 percent, in 2013, to 1.2 million compared to 2.1 million…

SMEs and entrepreneurships have become one of the foundational drivers for the creation of economic value, source of innovation, employment, and wealth generation. According to the National SME Strategy 2020 study, conducted by the Ministry of Economy and Trade (MoET) and Inventis, a strategy and investment management firm headed by former Minister of Finance Jihad Azour, over 90 percent of active enterprises in the local market may be categorized as Small and Medium-Sized Enterprises (SME’s). The study shows that the country boasts all the right ingredients for success: Educated entrepreneurs who seek to monetize opportunities, a sophisticated financial industry with global affiliations, talent with multinational experience, and unique capabilities. But there are several challenges to overcome before reaping the full benefit of SMEs. SME DEFINITION There is no formal unified…

Bank of Beirut took issue with an analysis of its performance in our January issue, by one of the companies we interviewed. Lebanon Opportunities regrets the confusion created by the report. Bank of Beirut provided this clarifications. PERFORMANCE In the article related to the Bank’s share valuations and recommendations, the analyst noted, after listing the Q3-2014 year-on-year growth rates in profits and assets, that “this is a good result although the bank is still far from the achievements of the top three banks in the market.” The analyst was referring to Bank Audi, BLOM Bank and Byblos Bank as the top three banks. The schedule on the performance of Bank of Beirut for the first nine months of 2014, as compared to the same period in 2013, shows otherwise. The…

ZAHLE’S 45 MW POWER PLANT READY The construction of a plant to generate 45 MW of power in Zahle will be completed soon and generation will start next month. The plant is owned and will be run by Electricité de Zahle (EDZ), a privately owned company with a concession for power transmission. “The plant will generate power during electricity blackouts,” said Nicolas Saba, Project Engineer at EDZ. Zahle’s power supply is divided into two zones, when the electricity is on in one zone it is off in the other. With the new power plant, Zahle will have round the clock power generation. “The plant is expected to benefit 53,000 subscribers in Zahle to the power network. Bill collection will be carried out by EDZ,” he said. The owners of the…

“Night club and restaurant owners have always wished there were more than one New Year’s Eve per year,” said Michel Elefteriades, artist and music composer and the founder, 12 years ago, of Music Hall, a nightclub in Beirut. This wish has come true, with an innovative concept of partying over several nights before and after the night of December 31. It has not just tantalized party animals, but benefited club and restaurant owners, multiplying their revenues. Music Hall has organized six nights before NYE and three after, bringing to ten the total end-ofyear celebration nights. MIDNIGHT MATH New Year’s Eve’s ticket prices bring in up to the equivalent of a whole month’s worth of revenues. Clubbers are especially eager to party on this particular night. It overshadows the days around…

Not so different from the ancient Egyptian tablets, which communicated so much power and weighty matters, modern day electronic tablets are also carrying a serious message: we’re here to stay. Tablets, in fact, are taking the mobile media market by storm with devices multiplying by brand, size and price. Competitors are poised to do battle against the leviathan, Apple, which has no less than five new tablet models, some hot, some not. The iPad Air 2 is seriously impressive, but the iPad mini 3 is less so, with fewer upgrades. Samsung Galaxy’s tablets are no less ready for the competition, with even more performing models. Screens are widening to an average of seven to ten inches and some are being morphed into something referred to as the ‘Phablet’, a cross…

ACER Iconia Tab 8 8’’ Touch-screen, 5MP primary camera, 2MP secondary camera, WiFi, Bluetooth, Android OS, v4.4.2 (KitKat), Intel Z3740 1.3Ghz, 2GB memory, 32GB storage $349 M2 ASUS Transformer Book T100 10.1” LCD HD Slim IPS, with multi-touch, 1.2MP camera, Bluetooth, Windows 8.1, Intel Atom Z3740, up to 1.86GHz, 2GB memory, 64GB storage $499 Macrotronics AMAZON Kindle Paperwhite 6” Paperwhite display, designed for reading, exclusive Carta e-paper technology, WiFi, Kindle Paperwhite OS, 2GB storage, holds up to 1,100 books $170 Macrotronics GOOGLE Nexus 7 (K008) 7” screen, 1.2MP camera, Bluetooth, WiFi, Android OS 4, Quad-Core1.2GHz Cortex-A9, 1GB memory, 16GB storage $349 Virgin Megastore ICONZ Mini pad T6 7” screen, 2.0MP primary camera, 0.3MP secondary camera, Bluetooth, WiFi, mobile integrated (3G DUAL SIM), Android OS 4.4, Quad-Core1.3GHz Cortex-A7, 1GB memory, 8GB…