Innholdsfortegnelse for Apr 1 2015 i Lebanon Opportunities

by the editor-in-chief The good news is that nothing changed last month. At a time when the fires keep raging in many Arab countries, Parliament being almost frozen, and the activity of Government limited to some petty decisions, our economic activity is sparkling. Its size has reached the $50 billion mark in its GDP (see page 62), inflation is almost nil, and growth is slow, but remains positive. More than $1.2 billion in investments and projects were announced last month alone (see news on pages 6-29), not including real estate developments. This includes $500 million in the private sector, $270 million in public sector projects, and $500 million expected in support for Syrian refugees. The sectors covered include manufacturing, hospitality, banking and finance, retail, movies and media, and ICT. Banks…

On 1 March 2015, the dismantling of the tariff barriers between Lebanon and the European Union was completed. Goods can now be exchanged between the two partners free from customs duties. This is the culmination of a 12-year long process that started with the signature of the Euro-Mediterranean Association Agreement between Lebanon and the EU on 17 June 2002 and the entry into force of its commercial component on 1 March 2003. The signing of the Agreement marked an important step in the strengthening of the political and economic relations between the two partners. It was also an important step in the process of building a wide Euro-Mediterranean area, increasingly integrated on the political, economic and social levels. This was the objective of the Southern Mediterranean Partnership launched during the…

Market capitalization and other ratios reflect all categories of outstanding ordinary shares at end of period Figures as of Mar 24, 2015 MENA Invest shall not be responsible for any loss arising from any investment based on any information herein contained Regulated by Banque du Liban - List of Financial Institutions No. 64 Saifi, Charles El Helou Avenue, Harbour Tower, 9th Floor, Beirut, Lebanon, P.O. Box: 11-4405 Tel: +961 1 577.773 - Fax: +961 1 573.444 - www.menainvest.com.lb…

Kantari 1127 Area Minet El Hosn, behind the Future news Architect Rachid Diarbakerli Developer TDS Group Contractor TDS Group Delivery Mar. 2015 Apt Sizes 235 m² - 480 m² Price/m² Starting at $4,000 Phone (01) 655.456 - (03) 487.926 Tarik El Jdide 1867 Area Tarik El Jdide, Hamad St., close to Hamad mosque Architect Buildeco: Abdul Rahman Ghalayini Developer Imad, Jihad & Salah Ghoutani Contractor Imad, Jihad & Salah Ghoutani Delivery June 2017 Apt Size 145 m² Price/m² Starting at $2,500 Phone (01) 807.043 - (03) 638.853 Lilas Residence Area Ras El Nabeh, Abdel Hafiz Chaar St., overlooking the Beirut Hippodrome Architect IDEA: International Design Engineering and Architecture Developer Melhem Jaber Contractor IDEA: International Design Engineering and Architecture Delivery Dec. 2018 Apt Sizes 124 m² - 165 m²- 180 m²…

Links: Click this article’s entry in ‘Table of Contents’ on our website The origins of the blazer lie with the Royal Navy. In 1837, young Queen Victoria paid a visit to a ship named the HMS Blazer. In preparation for the royal inspection, the ship’s captain ordered his crew to improve the way they looked by wearing navy blue double-breasted jackets over their seamen’s sweaters. Thus the blazer was born, becoming the smart-look staple of any wardrobe. A JACKET FOR ALL SEASONS According to Ayat Habib, Brand Manager at Hamra Shopping & Trading (owner of GS), blazers are to men what heels are to the ladies. They upgrade the look, enhance the silhouette and give an air of seriousness. “A blazer is both trendy and professional,” she said. It is…

SOUND BYTES PM Rafic Hariri personally guaranteed loans to the Treasury by one of the banks Former Prime Minister Fuad Siniora We can accommodate 25 million tourists if we had security and stability Michel Pharaon, Minister of Tourism The economy will be destroyed if food safety is portrayed as a catastrophe Hussein Hajj Hassan, Minister of Industry Rich Syrians live in Lebanon as if they are in Monte Carlo Sejaan Kazzi, Minister of Labor Which is better for Tripoli, $100 million in phantom funds or $85 million in real money that evil doers are trying to prevent from being spent? Rachid Derbas, Minister of Social Affairs The real name of the ‘Court of Audit’ should be the ‘Court of Un-audit’. Oversight authorities should be abolished because they cover-up corruption Mohammad…

Links: Click this article’s entry in ‘Table of Contents’ on our website Outside the European Union (EU), there are European countries that are considered large markets and comprise wide opportunities. Switzerland is one of the large markets outside the EU that local producers rely on and export several products and services to. Besides Switzerland, there are promising non-EU markets located in Eastern Europe that local exporters have not yet tapped. Exports to these countries are still shy, although they are large markets and geographically closer to Lebanon than the rest of Europe. Additional efforts could be applied by the private and public sectors to strengthen trade relationships between these countries and local exporters. EXPORTS TO SWITZERLAND Switzerland is one of the main countries outside the EU that Lebanon has strong…

Links: Click this article’s entry in ‘Table of Contents’ on our website Banks maintained stable growth in assets, deposits, loans, and net profits, in 2014 compared to 2013. Major banks like Bank Audi, BLOM Bank, Byblos Bank, Fransabank, Bank of Beirut (BoB), and Banque Libano-Française (BLF) were well ahead in many criteria, given their size and investments in the market. Small to midsized banks succeeded in dominating the top ten lists and grabbing shares from bigger banks, especially in terms of annual growth or return ratios. High competition and the small size of the market, in addition to regulatory measures from the Central Bank (BDL), and the economic slowdown are limiting the expansion of banks locally with only a few branches opening in 2014. Banks are not highly active in…

Market capitalization up Activity on the Beirut Stock Exchange (BSE) was relatively robust last month, driven mainly by two sizeable block trades involving 6.24 million Bank Audi GDRs and 1.54 million BLOM Bank listed shares. The total number of traded shares aggregated to more than nine million shares over the first three weeks of March, valued at almost $70 million, one million shares above the same month a year earlier. The BSE recorded a healthy performance during the third month of the year, with 11 gaining stocks and only two stocks down. This was reflected in the BSE’s market capitalization, which rose to $11.93 billion as of March 23, from $11.77 billion as of the end of February. Trading activity remained concentrated on banking stocks. Ciments Blancs Bearer stock was…

SAMIR HAMMOUD, CHAIRMAN, BANKING CONTROL COMMISSION Samir Hammoud was appointed as the new Chairman of the Banking Control Commission. “My tasks won’t be limited to auditing and controlling, but involve governance and human resources building,” said Hammoud. He will help implement the sector’s compliance with international norms and standards. Hammoud has 40 years of banking experience, with senior appointments in major institutions including Rif Bank, BBAC, and the Commercial Bank of Kuwait. Hammoud was Deputy General Manager, Head of Remedial Management Division at Bankmed. Hammoud holds a BBA from Haigazian University and an MBA from AUB and a Law degree from the Lebanese University. FADLO KHURI, 16TH PRESIDENT OF AUB Fadlo R. Khuri, MD, has been named President of the American University of Beirut (AUB). He will succeed Peter Dorman,…

Lebanon signed an Association Agreement with the EU in June 2002, which entered into force in April 2006. The agreement intended to promote regular dialog between the parties on political and security matters, in order to promote mutual understanding, cooperation and joint initiatives. It also aimed to promote economic, trade and financial cooperation, through the gradual trade liberalization and sustainable development of the region and investment. The agreement also aimed to boost social, cultural and educational cooperation, through intercultural dialog, migration control, qualification development, the promotion of labor law and gender equality. In addition, the agreements encouraged intra-regional cooperation between the Mediterranean countries, as a factor for peace, stability, economic and social development. Lebanon was one of the seven southern Mediterranean countries that EU signed the Association Agreements with between…

The banking sector around the world and the various environments around it are undergoing fundamental changes, on local, regional, and international levels. The banking sector in Lebanon and its Central Bank are involved in that process. Key changes dominated the banking industry for over seven years, since the outbreak of the global financial crisis. A SEMI-RADICAL SHIFT On the forefront is a semi-radical shift in the structure of assets and liabilities of banks and financial institutions. Short-term deposits increased from 60 to 80 percent of total deposits in international banks and lending ratio decreased from 56 to 51 percent rates, as per a study prepared by the Deloitte & Touche Institute (D&T). The liquidity of banks improved comparatively to pre-crisis levels and became closer to the structure of the Lebanese…