Innholdsfortegnelse for February 2017 i Lebanon Opportunities

HOUSING BANK LOWERS ITS RATES Banque de l’Habitat, a housing loans specialist, has announced it has lowered its interest rates from five to three percent. Beneficiaries include loan applications that were accepted starting in January 2017. Joseph Sassine, Chairman of the bank, said: “The objective is to provide low-to-middle income expats with better access to housing financing.” Sassine said that because of the low-interest facilities provided by the Central Bank (BDL), the bank’s profit margins have risen, even if interest rates are lowered. The decision follows BDL’s policy to boost demand and stimulate the real estate sector. The move helps Banque de l’Habitat circulate its accumulated assets in lira. Banque de l’Habitat has made LL160 billion ($106 million) worth of loans in 2016, almost the same level as the previous…

Links:click this articles entry in 'Table of Contents' on our website The government is again assessing international interest for oil exploration. It adopted this month two decrees delineating maritime blocks that will be offered for bids, and the contract type that would link the operators to the State. It is also finalizing a number of draft laws that are essential for the exploration and production process. The draft tax law is undergoing modifications. The Lebanese Petroleum Administration (LPA) is also examining different forms of a Sovereign Wealth Fund. Concurrently, it is working on enhancing transparency and improving accountability in light of possible corruption. ROADMAP TO PRODUCTION A second prequalification round of bidding for interested oil and gas companies is set to be launched under the same conditions as the first…

Links:click this articles entry in 'Table of Contents' on our website Millennials visit eateries between two to six times per month, according to a recent survey by InfoPro titled: “Generation Y: Millennials.” They are a demanding lot who request quality dishes with value to match, yet at an affordable price. Tech use among this generation is high. Marketing strategies therefore rely heavily on social media platforms in order to interact with them, gain a loyal following, and thus making deeper inroads into this target market. FOLLOWING THE CROWD Wherever the millennial generation gathers, restaurateurs are not far behind. Donald Batal, Chairman of Ministry of Food, which has the brands Classic Burger Joint and Tomatomatic on its portfolio, said: “We follow millennials to the regions they gather, such as Faraya and…

This generation is well educated, fast at picking up skills, and dynamic. Specific strategies need to be implemented to create the kind of working environment that attracts them. But it does not stop here. These ambitious employees will also require wellthought- out career paths, as well as continuous managerial support and flexibility if they are to be retained. RECRUITMENT Around 60 percent of Malia Group’s employees are below the age of 34, of which 16 percent handle managerial positions, according to Mirna Brax, HR Manager at Malia Group, “Recruits tend to be mainly graduates,” she said. Tony Bou Nassif, HR Manager at Brasserie Almaza, which is part of Heineken, said: “We are keen to recruit from this group. When replacing staff, we look for young, dynamic, and talented people who…

Real estate development in the medium-elevation areas of Metn began some time ago. It continues with accrued vigor. For some years, the area on the road from Jal-el-Dib to Broummana – including Bsalim, Bkennaya, Kennabeh, and Nabay – has been among the routes witnessing growth. Both ongoing demand and ease-of-access created by the Metn Expressway are the drivers behind more developers descending on the area. Numerous developments are expected for the future. This is due to the large stocks of available land at affordable prices. Highend projects are becoming a feature of the Bsalim outskirts. Being part Jal-el-Dib’s conurbation and that it is closest place to the coastal highway are reasons why Bkennaya has a high rate of projects. There are still a few small plots available for further development…

$2.8 BILLION NEEDED FOR SYRIAN REFUGEES Ministry of Social Affairs (MSA) is preparing to launch the Lebanon Crisis Response Plan 2017-2020. The Task Force on Support to Host Communities gathers more than 30 partners including the UN, NGOs and governmental organizations. It is co-chaired by UNDP and UNHCR, together with the Prime Minister’s Office and MoSA. The plan has assessed that needed requirements in 2017 alone will cost $2.8 billion. LCRP 2017-2020 has yet to be announced. It will be launched along with a financial tracking system separate from that of the UN. The plan is divided into ten sectors: Basic assistance, food security, education, shelter, protection, livelihoods, social stability, water, energy, and health. The task force plans to raise the basic survival needs of refugees and strengthen social safety…

In December 2016, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Lebanon. Its main findings after an extensive field trip and meetings with high officials were detailed in a report on the country’s challenges and risks. Some are directly or indirectly related to exterior factors, like the war in Syria and the influx of refugees. Local authorities have no impact on these risks, except asking for more international support, and managing foreign assistance well. Other challenges, the most important ones, are related to the internal financial policy, as well as the overall management of the country. The IMF also issued recommendations that should be followed by the new government so that these challenges are dealt with properly. THE CHALLENGES The protracted conflict in…

Links:click this articles entry in 'Table of Contents' on our website Parliament has ratified a 26-article law on the public right to the access of information. The law allows public access to all kinds of information, except some court proceedings and matters of national security. PUBLIC ADMINISTRATIONS The law stipulates that every individual of natural or legal status has the right to access information and documents that are available at administrations, as long as the right is not abused. Administrations are defined by the law as State and public administrations, public institutions, independent administrative authorities, courts and legal councils (except for religious courts), municipalities and municipal unions, private companies tasked with running public facilities and properties, mixed companies, public benefit institutions, and committees that organize and operate public sectors and…

Links: Click this article’s entry in ‘Table of Contents’ on our website Millennials and technology go hand-in-glove. An InfoPro survey reveals mobile phones are a millennial’s best friend. Laptops are not far behind, closely followed by an array of tech accessories. The first generation to come of age with cable TV, the Internet, and mobile phones, their attachment to tech gadgets equates to a high online presence. Retailers, marketers, tech brands and products are stepping up their game in order to appeal and engage to a target market that knows exactly what tech products they want, how they want it. GADGETS ON THE GO Millennials see technology as an enhancement to daily life. The InfoPro survey showed 86 percent of this demographic believed the latest technology makes life easier. This…

CASINO DU LIBAN TO TAP ONLINE GAMBLING AND GAMING Casino du Liban, a gaming and entertainment establishment, aims to launch an online gaming platform in partnership with an international company. It launched bidding which ended January 19. The terms of reference stated that the winning bidder “should be already generating their own revenues of not less than $650 million, of which 75 percent should be from gaming and gambling activities.” It also stated that the bidder “should be committed to investing a minimum of $15 million.” No laws exist yet in the country to regulate online gambling. Casino du Liban has exclusive rights for gambling. There are more than 700 gaming and entertainment centers operating illegally. Casino du Liban filed a lawsuit at the State Shura Council against the State…

RESERVES REPRESENT 90 PERCENT OF LIRA MONEY SUPPLY The Central Bank (BDL) gross reserves in foreign currencies reached $40.71 billion at the end of last year, an increase of around ten percent from 2015. Bank expert Joe Sarrouh said: “The main reason is the financial engineering adopted by BDL, and its effect on foreign deposits.” Sarrouh said: “Higher reserves ensure more confidence in the banking sector and more stability for the lira.” Gold reserves also increased nine percent at the end of 2016. Total reserves (gold and foreign currencies), which reached $51.4 billion, represents more than 90 percent of the entire money supply in lira. This is also equivalent to 69 percent of the overall gross public debt, 80 percent of the net public debt, and over 140 months of…

‘Generation Y: Millennials’, a recent study by InfoPro Research surveyed a sample of 600 people. The results reveal how this demographic segment, born between 1982 and 1998, lives, works, and plays differently than the generations that came before it. Their technological savviness mean businesses are having to rethink how they appeal and approach this generation on a landscape that is ever changing. CONNECTED 24/7 Millennials represent 28 percent of the population. More than half are single. Around 45 percent are university graduates. Born during the technological revolution, they are connected almost all the time. Ibrahim Lahoud, Managing Partner at Brand Tribe, a brand consulting and strategic design firm, said: “They have always been thirsty for knowledge, but technological tools are what’s making the difference between millennials and the generation before,…

Links:click this articles entry in 'Table of Contents' on our website The 18 to 34 age group appreciate ‘experience’ over mere products and services. This has presented a challenge in how retailers approach this target market. If local retailers are to increase sales, then now is the time to start ‘thinking like a millennial.’ CRUISING THE AISLES The highest percentage of respondents do their grocery shopping from both hypermarkets and minimarkets twice or once a week, according to the InfoPro study. For others, the visit is more frequent. Riad Khairallah, Communication Manager at Le Charcutier Aoun, said: “Millennials visit us on a daily basis because we offer convenient shopping. We have many branches, and provide different offers every day.” Aware of additives found in canned food, millennials mainly head to…

Links:click this articles entry in 'Table of Contents' on our website The country scores well in terms of financial inclusion. There has been progress in addressing segments of the economy that are usually unbanked, such as small and medium enterprises (SMEs), women, and rural, low-income, and lesseducated sections of society. The ratios of private sector credits and deposits to GDP are among the highest in emerging economies, and the number of bank branches and ATMs is above average regionally. Since 2009, the Central Bank (BDL) has been playing an active role in ensuring inclusive finance. It has issued numerous circulars aimed at enhancing consumer protection. A clause, included in Circular 84, encourages banks to lend to microfinance entities. Despite all this, the report, “Lebanon: Raising Financial Inclusion,” by The Institute…