Innholdsfortegnelse for March 2017 i Lebanon Opportunities

LEBANON SEED FUND LAUNCHED BY FLAT6LABS Flat6Labs Beirut announced the launch of Lebanon Seed Fund (LSF), a $20 million early stage fund aimed at supporting 100 local startups over the next five years. Startups taking part in the seed stage program will receive $30,000-$50,000 investments. They will go through a 16-week mentorship program. Early stage startups will receive $100,000 to $500,000, as well as access to Flat6Labs Beirut’s resources and operational guidance to scale. The program is in partnership with ArabNet, and has the support of Central Bank’s (BDL) Circular 331. Flat6Labs is a Cairo-based accelerator, which also has offices in Abu-Dhabi and Jeddah. Flat6Labs Beirut, through the LSF, will seed and grow local startup companies working in innovation-based and knowledge- driven industries. These industries will mainly include information and…

Links: Click this article's entry in 'Table of Contents' on our website The pharmaceutical market is growing every year. But the market share for local production still remains modest. To counteract this, the Ministry of Public Health (MoPH) has taken measures aimed at encouraging medical representatives to prescribe local pharmaceuticals that meet international standards, and thus to try acquire a larger share of the market. SURGING PHARMA MARKET The pharmaceutical market increased four percent last year, reaching $1.1 billion, according to the Lebanese Pharmaceuticals Importers Association (LPIA). The unit of measurement of the pharmaceutical market is the Net Selling Price to market. Pharmacies had an $838 million share (up from $802 million), hospitals $159 million, and public institutions $110 million. Total pharmaceutical imports reached $1.2 billion, according to Customs. Armand…

Links: Click this article's entry in 'Table of Contents' on our website Innovations in card payment tools are the drivers behind an increase in demand for plastic cards and card-only transactions. Banks are adopting the latest trends and programs to match the life style of their clients. But much still can be done to encourage people to move from cash and checks to plastic card use, which would a positive effect both on banks and the economy. CARD PENETRATION The number of plastic cards in circulation has grown 130 percent within ten years. Central Bank’s (BDL) latest figures reveal there were 2.7 million cards by the end of 2015, registering a 13 percent increase in a year. The same growth rate is expected for 2016. Bankers are satisfied with the…

The projects being developed in Saida tend to be small, with few gated communities planned. The suburbs are beckoning. Properties there tend to be less expensive, and the environment calmer than the inner city. Commercial activity is moderate to good. Demand for retail units is high, with the number of malls expected to increase. NUMBER CRUNCHING The number of projects in Saida has remained stable during the past three years. The Municipality issued around 30 construction permits at the end of 2016. It is a 19 percent drop compared to 2015, but an increase of 30 percent compared to 2014. According to Ziad Hakawati, Municipality engineer, some developers are quickly purchasing land in Wastani and near the River Awali before Saida Municipality undergoes a reorganization plan. FUTURE OPPORTUNITIES Saida Municipality…

TAX COLLECTION HALF ITS ECONOMIC POTENTIAL Tax collection is weak. It has been driving a drop in public revenues since 2010, and remains below the regional average, according to the International Monetary Fund’s recent report, ‘Article IV consultation for Lebanon’. It said that tax collection is only 50 percent of estimated capacity. A weakness in electronic tax declaration system and staff numbers, among others, was cited as reasons behind the deficiency in total tax revenues. “Tax administration increased by 120 staff members in 2016, but the actual needs are estimated to be five times higher,” the IMF said. The country’s ‘tax effort’ is lower than that in similar Middle East and Central Asian countries. The tax effort is the ratio of actual tax revenues to potential capacity, which is the…

Links: Click this article's entry in 'Table of Contents' on our website Increasing consumption and an inability to compete with imported goods are behind the main reasons why imports have risen. Alternative, expensive transport routes, and a slump in the Gulf region, are all negatively affecting exports. FIERCE COMPETITION The trade deficit (the resultant of goods exports minus imports) widened four percent last year, reaching $15.7 billion, according to Customs. The deficit increase was triggered by a growth in imports (3.5 percent) reaching $18.7 billion higher than that of exports (0.8 percent) which reached $2.9 billion. ‘Real exports,’ which excludes mineral products (oil transferred to Syria), and gold (mainly gold plates), dropped 14 percent registering $2.1 billion. Alia Abbas, Director General at the Ministry of Economy and Trade, said: “Production…

Links: Click this article's entry in 'Table of Contents' on our website Growth has been healthy and steady in the insurance market these past few years. Both life and non-life insurance categories are registering good results. This is despite an increasingly concentrated market in which more than 50 players compete for market share. The life insurance segment is mainly driven by two international firms and about five companies that are partially or entirely owned by banks. Growth in the non-life segment is dominated by the medical and motor business lines. Authorities have taken measures to combat illegal competition, a first in a long time. Cyber security insurance is the new kid on the block that is beginning to emerge. Insurance companies are raising awareness toward this new product. Slowly but…

Saida is witnessing a dynamic era. The Municipality and other public bodies are pushing vital projects that will contribute in reviving this southern city. More than $150 million will be injected during the coming three years. Existing facilities are expanding their premises and increasing production, and newcomers are penetrating the city’s surrounding industrial areas. To meet demand, developers are constructing apartment buildings and commercial hubs. Farmers too are getting in on the act. New agricultural practices are being adopted, and thus breathing new life into this particular sector. ACTIVE PROPERTY MARKET Compared to other cities, the supply of new real estate projects in Saida is still limited, and essentially focused on residential projects. Demand for residential units is high in some districts, such as Wastani and Dekerman. The city is…

Retailers and industrialists are showing a higher interest in Saida than previously. Industrialists are looking to build on their past long-term activity. Malls are attracting footfall to Saida, as well as other retailers. The Municipality is taking strides to upgrade the city’s infrastructure and attractions. A business center is providing sanctuary to startup and young businesses, helping them to grow and prosper. INCREASING PRODUCTION RATES Saida’s industrial sector is expanding. The list of categories is growing and production is being increased. Sweets, soap production, construction material, generators, and foodstuff form the city’s basic industries. Several factories are developing their facilities to meet demand from export markets, especially those to Africa and Arab countries. According to Mohamed Ghaddar, Marketing Manager at Ghaddar Machinery, a power solutions and manufacturer of generator sets,…

THIRD MALL AND MORE CARREFOUR BY MAJID AL FUTTAIM Out of the $2 billion earmarked for projects in Lebanon since 2009, Majid al Futtaim has still to invest $1.1 billion. New investments will include a new mall. Alain Bejjani, CEO of the group, said: “The third mall will be in the immediate suburbs of Beirut.” Majid Al Futtaim already operates Beirut City Centre, a mall in Hazmieh, with another planned for Waterfront City in Dbayeh. Majid Al Futtaim is also the developer of Waterfront City, Carrefour, VOX cinemas, and Magic Planet. The company will launch this year new phases at Waterfront City. It will also finalize the entitlement process for the Waterfront City mall and then set a date for its delivery. The Emirati company is also expanding their Carrefour…

PUBLIC DEBT: $75 BILLION! Gross public debt reached $74.9 billion at the end of 2016, a 6.4 percent increase on the previous year. It had grown 5.7 percent in 2015. Net public debt reached $65.4 billion recording 6.2 percent increase compared to 2015. Damianos Kattar, Former Minister of Finance, said: “The absence of a public budget has contributed to excesses in expenditures.” The primary surplus (Revenues minus expenditures excluding debt servicing) was $1.2 billion, well below the $4.4 billion needed to meet interest payments. Gross debt in the lira reached LL70,528 billion ($46.8 billion) growing by a yearly eight percent and representing 62.5 percent of total debt. Gross debt in foreign currencies, mainly the U.S. dollar, increased 3.7 percent to $28.1 billion. Kattar said: “The increase in the share of…

The Crisis Response Plan for 2017-2020 has been launched Links: Click this article's entry in 'Table of Contents' on our website Six years have passed since the start of the Syrian conflict. This has allowed humanitarian assistance to develop into a network of international donors and NGOs. The Office for the Coordination of Humanitarian Affairs (OCHA) revealed that the international community spent around $2 billion last year on helping refugees and host communities countrywide. But Philippe Lazzarini of the UN Resident and Humanitarian Coordinator said it has not been enough to lower the poverty rate. A revised version of the response plan has now been put together for the coming three years, with calls for the energy sector to also be included in funding. 2016 AID DISBURSEMENTS International assistance to…

Several renovation projects are underway in Saida. Some have already begun, others are soon to be launched. The projects include revamping the city’s old souks, and the renovation of the historical maritime and land castle, as well as plans for a new hotel and museum. OLD SOUKS Saida’s traditional commercial center is currently in its final restoration phase. The project includes installing granite tiles in the old souks, starting from Nejmeh Street, passing through Shakrieh Street, and reaching the ruins of the land castle. Riad el Solh Street will be asphalted. Mohammad Seoudi, Mayor of Saida, said that the old souks will be pedestrianized. Traffic will be redirected along Riad el Solh Street instead. The project also includes installing new electricity and telephone cables, a sewage system, water pipelines, street…