Innholdsfortegnelse for May 1, 2016 i Lebanon Opportunities

PROPERTY REGISTRY GOES ONLINE The Ministry of Finance’s Property Registry recently launched three online services, one paid, and two freeof-charge. George Maarawi, Director General of the Registry, said: “The first service allows citizens to check the title register of properties (ifada ikariya) and print it out through a mobile phone or a computer.” This service will cost LL7,500 ($5), and an additional LL1,000 ($0.66) for application submittal. Until now, the service has been available only on premises. The second service allows users to track paperwork, whether the procedure was stopped, and the reasons behind it. The third service helps citizens calculate the value of different property fees, and includes templates of the documents needed to carry out each procedure. Maarawi said: “The goal behind these electronic services is to facilitate…

The projected path of public pension expenditure is explosive, according to the International Monetary Fund report, “Sustainability and Equity Challenges: Some Arithmetic on Lebanon’s Pension System,” which was published last month. Reform proposals have been announced in the past, but none have seen the light yet. The applied pension systems are already a burden on the fiscal balance. Delay in implementing reform measures would aggravate the costs and hinder disbursement in the medium and long terms. CURRENT SYSTEMS The current pension system is divided into public and private sector schemes. The public schemes cover most civil service employees and military personnel. The public civil employee system applies a retirement age of 64. Employees wishing to retire before 60 will not receive their full benefits. The system is also linked to…

The reclaimed area of the Beirut Central District (BCD), also known as Phase II or the Waterfront, is in the making. Solidere is finalizing the infrastructure to allow investors who have already bought land to begin their projects. The reclaimed area is expected to lure more investors, as it is considered the market’s most prime location. With most plots snapped up, a new stock of residential units and commercial spaces will gradually become available starting in 2019. Most developers are waiting for the completion of infrastructure projects or for better market conditions before beginning their projects while others have already taken a step forward. LOCATION Solidere is upgrading the infrastructure of the BCD’s reclaimed area, which stretches from Quay 1 at the Port of Beirut (presently occupied by the naval…

BENTLEY MULSANNE 6.75 liters, V8 engine, 8-speed automatic transmission, 8-inch infotainment screen, navigation, climate control $528,000 BMW 750 Li 8 cylinders, 8-speed steptronic transmission, Gesture Control, BMW Laserlight or Remote Control Parking, Touch Command, automatic start/stop function, Dynamic Stability Control, Brake Assist, cruise control, iDrive touch controllers $158,000 CADILLAC CT6 6 cylinders, 3.0 liters twin turbo engine, 8-speed automatic transmission, 10.2-inch front screen, 10-inch HD rear seat screen, Blu Ray playback, radar collection, cameras and ultrasonic sensors, Quadzone Climate System, Bose Panaray Surround System $130,000 (Price is estimated and may vary) Prices may vary depending on options, specs, and currency fluctuation. For exact pricing and more details please contact the agent. CITROEN DS5 3.8 liters, 6-speed automatic transmission, blind spot monitor, lane departure warning system, Connect Box, Start command $55,000…

DUBAI MEAT COMPANY SOLD TO LEBANON AND JORDAN BUYERS Local private equity fund management company Emerging Investment Partners (EIP) has acquired the Dubai-based Diamond Meat Processing (DMP), the owner of Almasa brand, in partnership with the Jordanian publicly listed firm, Siniora Food Industries. The full equity deal closed at $17 million. The seller of DMP is Emirati firm, Al Ghurair Group. EIP’s share of the deal is 30 percent. CSC Bank financed close to one third of EIP’s share. The terms of the deal are seven years at market rate, which is to be repaid from dividends. BSEC acted as advisor to the sellers, managing the deal, and undertaking its valuation, which was close to the final purchase price. Several other entities were also vying for the deal, including Salah…

FEWER LOANS BY THE PUBLIC CORPORATION FOR HOUSING The Public Corporation for Housing (PCH) approved 4,600 loan applications in 2015 worth $544 million. The number of loans has fallen by eight percent and the value by 16 percent, compared to figures from 2014. The value of loans averaged $122,000. Rony Lahoud, PCH Chairman, said: “Most applications are for small-size apartments in Mount Lebanon.” The market share of PCH market is half of the total housing loans issued. The Housing Bank, Banque de l’Habitat, which gives Central Bank (BDL) subsidized loans, and commercial banks constitute the remaining half. Demand for PCH loans shot up by 100 requests in the first quarter of this year. Lahoud said: “This is a significant increase as in March alone we received 516 applications. We expect…

Corporate Governance (CG) is vital for the survival of family businesses. A substantial part of the economy, family businesses need CG in order to balance the interests and responsibilities of the company’s stakeholders and to achieve sustainability, as well as to improve efficiency. It allows family businesses to have better access to external capital and to have lower financing costs. Separating the functions of the board of directors from those of executive managers and adding independent board members are a major requirement of corporate governance. Separating business and family matters is another prerequisite. A CG plan requires the full approval of top decision-makers in order to become successful. Local family businesses that are already applying the principles of good CG are reaping positive results. CRITICAL MASS ‘The first generation builds,…

IS IT BOB… Most domestic funds that invest locally target fixed-income securities, such as Government bonds, securities issued by the Central Bank, and preferred shares of local banks. Some of these funds invest in money market securities and time deposit accounts. Investment in local equities is limited. BOB LBP Growth Fund Class A, which is managed by Bank of Beirut Invest, achieved a return of 8.61 percent in 2015, topping the list for this benchmark. The fund has accumulation units (shares), which mean that it does not pay out dividends and therefore the profits are reinvested in the fund. This allows the fund to generate higher returns. FNB’s National Fixed Income Fund, which also invests on the local market, came second and reported a return of 8.34 percent. Ronald Rizk,…

Airports generally offer a varied mix of tenants and have high footfall. Beirut Rafic Hariri International Airport (BRHIA) is no different. According to the airport’s latest statistics, there were more than seven million passengers during 2015. Compared to those on the high street, airport retailers have a better opportunity to reach audiences. This is because airport passengers have to wait for long periods before boarding, creating a captured audience. Since renovations in 1998, BRHIA has become a lucrative hub for investors, business owners, and suppliers. Like most, if not all airports, there is a duty free zone. The Beirut Duty Free zone retails some of its merchandise at prices lower than those found in both the local market and in regional duty free zones. While some retailers have earned high…

The compliance of banks to the new international regulations pertaining to anti-money laundering (AML), countering the financing of terrorism (CFT), and tax crimes is becoming more challenging. As regulations mushroom and become even more demanding, local banks and financial institutions have no choice but to quickly adapt to an increasingly complex landscape. With penalties for noncompliance exorbitant, financial institutions are vigilantly monitoring the decisions of international regulators and learning how to apply them. UPPING THE GAME Banks have to manage compliance risks and cope with the specific requirements of multiple global regulatory enforcement agencies. Chip Poncy, President and Co-Founder of US-based Financial Integrity Network (FIN), said that one of the challenges is that there is not enough consistency between the enforcement rules of the US, Europe, and other enforcement systems.…

Luxury cars, already synonymous with comfort, are now peaking in technology innovations. Automakers are perfecting new specs and focusing on advanced connectivity to provide a more rewarding motoring experience. Newly upgraded sedans have better driving control, breakthrough infotainment systems, and preventative safety features. Not only have these strongholds of luxury been able to maintain their sporty aspects while becoming more fuel efficient, they are fast becoming the self-driving cars of the not-sodistant future. LUXURIOUSLY LIGHT Luxury cars have become even more stylish, lighter, and better equipped than ever before. New luxury models include the Cadillac CT6 and the Volvo S90. Layal Karam, Sales and Marketing Manager at Gabriel Abu Adal, the exclusive agent for Volvo, said: “According to Volvo’s statistics, the company received the largest preordering percentage relative to the…

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