Innholdsfortegnelse for September 2016 i Lebanon Opportunities

YAFI AND JISR TO RAISE $50 MILLION FOR ICT FUND B&Y Venture Partners (BYVP) has completed the closing of an investment fund and expects the capital raised to reach $50 million, said Ghaith Yafi, BYVP’s Managing Partner. The fund, named B&Y Division One, obtained the Central Bank’s final approval before launching this month. It will invest in the information and communication technology (ICT) sector here and abroad. B&Y Division One is the first fund launched and managed by BYVP, a joint venture created in 2015 between Y Venture Partners and Broadgate Advisers. Y Venture Partners is a company owned by the Yafi brothers, Ghaith and Abdallah. Broadgate Advisers was founded by Rami Jisr, the former General Manager of Audi Investment Bank. The fund’s first capital injection was from BYVP’s founders…

Links: Click this article’s entry in ‘Table of Contents’ on our website Third party administrators (TPAs) have come a long way since they were introduced to the market in the early 1990s. Over the years these companies, which manage medical claims on behalf of insurance companies, have developed steadily. Since only a small part of the market is being covered, there is still room for growth. TPAs offer several products, of which the ‘perpetual plan’ has become a best-seller. The know-how of local TPAs has expanded regionally where multiple types of beneficiaries are covered. But the regional market is still far from saturated. GROWING BUSINESS The business of TPAs has witnessed positive evolution in terms of quality and quantity. The growth rate is in line with the progress in medical…

The demand for extra-curricular activities after school and during the summer vacation is increasing. This is because parents consider such activities vital for the development of their children’s capabilities. This business model is also expanding as clubs and specialized centers, in addition to schools, are mushrooming to offer diversified activities. Because owners have made big efforts to inject high added value to their offerings, these businesses have proved to be a good investment. DANCE AND EXERCISE A wide range of artists and athletes, or just simply entrepreneurs, are opening late afternoon schools and clubs to provide extracurricular activities for kids. Most have started these businesses rather reservedly, but have been quickly encouraged by positive market forces to invest more, expanding their offerings in terms of quantity and diversity. Art and…

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MINISTRY OF LABOR PROPOSES INCREASE IN MINIMUM WAGE The Ministry of Labor has suggested increasing the minimum wage to LL1, 200,000 ($800) from the current LL675,000 ($450). The Ministry invited business associations and the General Confederation of Labor Unions (GCLU) to meet at the session of the Cost of Living Indicator Committee which was held on August 9. The meeting included representatives from several ministries, including Labor, Finance, and Economy and Trade. The Ministry of Labor said: “The suggested increase to the minimum wage is due to the decrease in purchasing power and the cost of living increase.” The Indicator Committee will be required to study the percentages of inflation that are issued by the Central Administration of Statistics (CAS) and amend the minimum wage accordingly. The Consumer Price Index…

Younger children are increasingly going to the movies by themselves, either to pass the time while visiting a mall or because a blockbuster movie has just arrived in town. Children’s plays are also starting to pick up again. Some plays are produced every year. Others have been running for over 20 years and still have the power to attract a young audience. The high costs of putting on plays make it a struggle, but theater owners are diversifying their sources of revenue in order to be profitable. DEMAND VARIABLES Figures reveal that demand is high for kids’ movies. Children form 35 percent of visitors at Grand Cinemas. “The growth of this section has been stable over the past few years,” said Isaac Fahd, Sales and Distribution Manager at Grand Cinemas.…

There are around one million households in the country, according to the latest figures from the Central Administration of Statistics (CAS). If every household were to give its children one dollar pocket money per day on average ($30 per month), then more than $360 million a year would be spent on miscellaneous products. A large chunk of this amount would go into the cash registers of neighborhood minimarkets and dekkanes where children buy candy, chips, and other confectionery. Global estimations are that the confectionery market evolves by 3.8 percent per year. Eventually, this will have a knock-on effect on the local market where children constitute almost a quarter of a minimarket’s business. NEIGHBORHOOD HUBS It is the residential areas that lead in the number of children who buy confectionery. Minimarkets…

Links: Click this article’s entry in ‘Table of Contents’ on our website The Beirut Stock Exchange (BSE) is awaiting two major developments for next year. The first is an electronic trading platform, which is expected to be introduced by mid-2017. The platform will include a variety of financial instruments, but most importantly the stocks and shares pertaining to local small and medium enterprises (SMEs) and startups. The second development is the privatization of the BSE, which has been on the table for the past few years. Originally two separate projects, the Capital Markets Authority (CMA), which is in charge of the BSE and the new projects, has decided to link both of them together. The idea behind the developments is that an added electronic platform will enhance the value of…

The line separating new generation laptops and tablets is starting to blur. The two-in-one notebook enjoys the benefits of both the tablet and the laptop. Its performance is better and faster than a tablet. It is not as good as a regular laptop but is lighter and more portable. “It is a combination designed especially for moving businesspeople,” said Bilal Tamim, head of research and business development at Abed Tahan. Two-in-one notebooks are flexible. Whether it is flipping around into presentation mode for a showcase or going from laptop to tablet mode for quick movie screening, there is no better option. PERFECT COMBINATION A hybrid notebook is a device that combines the characteristics of a tablet with the computing power and software compatibility of a laptop. It incorporates a relatively…

This season is all about earthy colors. Black and grey are were also at the core of the runway collections. The slim-fit suit is seemingly here to stay. Small scale checks are the season’s pattern. Wool and cashmere blends are the fabrics to keep warm. Men of a certain age – 30 to 40 years olds – are health conscious more than ever before. According to Amer Ejjeh, owner at Jawdat Ejjeh & Sons clothing store, the market is following this trend and producing suits that are much more fitted. CLASSIC CUTS Men’s collections worldwide have a vast range of fits, cuts, patterns, and colors. Some of which make it to the local market. But it is the classics that are sold the most. Ejjeh said: “When it comes to…

EXPORTS NOSEDIVE IN FIRST SEMESTER Industrial and agricultural ‘real’ exports decreased 17 percent in the first half of this year, in comparison to the same period of 2015, registering $1.4 billion, according to figures published by Customs. The ‘real’ export figures exclude pearls and precious stones which registered $305 million compared to $238 million last year. The figures also exclude mineral products (mostly oil products), which decreased to $95 million from $137 million in the previous year. Entire exports decreased 21 percent in terms of weight, registering one million tons in the first half of 2016. Industrial exports also fell, amounting to $1.3 billion. Fadi Gemayel, Chairman of the Association of Industrialists (ALI), said: “Industrial exports declined around 30 percent during the last three years due to the closure of…

Children 14 years old and under constitute around 25 percent of the total local population. This means that they represent one million consumers whose needs are fulfilled by parents, not forgetting that many, if not all, receive pocket money to spend on different products and services. This demographic is being targeted more and more by the marketing campaigns of related businesses. Children have become powerful little players that the market is trying to please. Parents are increasingly responsive to what their children request, even when demands are excessive. Consumerism that has ruled the grown-up world for some time has now spread among children. Related businesses are rapidly reacting and expanding to add more branches and diversity to their product lines and services. When the economy is not in their favor,…

Toymakers are being challenged to keep up with the ever-changing trends that attract children. This is proving to be all the more difficult in the presence of electronic gaming tools. One large toy store group dominates the market. There are also a few medium-sized toy companies around. The rest are small outlets spread sporadically across the market. Internationally, the toy market is growing and shifting at the same time. This is mainly due to ‘millennials’ who wish to play and spend quality time with their children. Events, such as the superhero sagas and Disney animation movies, have also influenced the industry. Local players are starting to catch up on these global trends and are moving the market forward. FEW PLAYERS Big players in the toy market are few. One of…

Links: Click this article’s entry in ‘Table of Contents’ on our website The banking sector remains profitable. The combined net profit generated from the local business of banks increased 9.7 percent to $1.9 billion in 2015 compared to the previous year, according to the Association of Banks (ABL). The revenues from commercial banks are mainly derived from the interest on loans, and commissions and fees, as well as additional miscellaneous revenues. The income earned from interest is divided into two main sources: Private customers and public ones, or the Ministry of Finance and the Central Bank (BDL), respectively. Each has its own advantages and risks. The banking sectors’ exposure to the country’s sovereign risk is high with local banks carrying 54 percent of the public debt, amounting to around $38…

Links: Click this article’s entry in ‘table of Content’ on our website The inner city district of Mar Elias is witnessing a high number of construction projects. Demand is high on the eastern part of the district’s commercial main street more than its western side. Apartments target the medium-to-high income bracket, especially toward the Tallet el Khayat and Unesco areas. Demand for small-sized retail outlets is high compared to other areas of the city. Due to the district’s busy commercial nature, the outlets are quickly leased out. There are no newly constructed offices or available purposely built office space in the area. Because of this, small companies are forced to rent apartments and reorganize them into workable office space. HISTORICAL SHOPPING DESTINATION Mar Elias is a district that forms part…