Innholdsfortegnelse for December 2017 i Lebanon Opportunities

LIRA SECURED BY CENTRAL BANK CAPABILITIES The Governor of the Central Bank, Riad Salameh, affirmed the stability of the lira. He cited financial operations carried out by the Central Bank and cooperation with the banking sector in his assessment. “The lira will remain stable and it is based on the existing capabilities of the Central Bank,” he said. “The Central Bank has built a monetary model that takes into account the financial and economic data of the country and has contingency plans to deal with negative surprises,” he said. Salameh was not worried about the situation of banks. “Banks have liquidity and a long history of dealing with customers,” he said. The Central Bank controls liquidity through special operations and through the sale of the dollar. The State paid all…

The property market has reached stability and a balance between new supply and demand. But old stock of large units is still waiting for better momentum in order to be sold. The following is the result of an analysis of statements by public and private figures, as well as the opinions of experts shared during the latest Business Opportunities in Lebanon conference this October. Demand is heading toward inexpensive units in Greater Beirut. The upper limit of most apartments is within the $500,000 limit of BDL-subsidized loans (which increased last month to $800,000). Professional developers within Beirut are designing small sized units and even studios. All in all, around 35,000 units, new and old, were sold last year, according to the Real Estate Registry (Cadaster). According to banking sources, the…

Links: Click this article’s entry in ‘Table of Contents’ on our website Businessmen and executives annually send and receive rather traditional gifts – another tie or a new pair of cufflinks. It could create a better impression to select unusual gifts, based on the preferences of the recipients and their lifestyles. Trends during recent years are shifting from regular, traditional gifts toward more technical and functional items, gadgets, art pieces, and even entertainment. The type of the relationship between the sender and recipient dictates the budget for a gift and its nature. APPROPRIATE SELECTION Sending a gift should be done with a clear idea of the recipients’ preferences and lifestyle. Senders should also think of what impression they want to create through the gift. Maya Saab, Marketing Manager at Virgin…

Links: Click this article’s entry in ‘Table of Contents’ on our website ■ NO SIGNIFICANT CAPITAL FLIGHT ■ LIRA TO DOLLAR CONVERSIONS WERE LIMITED ■ TENSION ON THE FINANCIAL MARKET CALMED DOWN The latest political developments have once again demonstrated the resilience of the lira and of the banking sector. The shock of the surprising resignation of the prime minister, and the unclear conditions surrounding his stay in Saudi Arabia, had short-term repercussions on lira deposits, the Eurobonds’ quoting on international markets, and the price of Solidere’s shares. Once the Prime Minister announced he was putting his resignation on hold, the market quickly recovered. The Central Bank (BDL), which was selling dollars, became a buyer of the US currency. Solidere’s shares rebounded to pre-resignation levels. Global demand for Eurobonds surged…

This year represents a recuperation in the market dynamics compared to 2016. Purchasing activity has gone up in almost all areas near Beirut, according to official figures and the Winter-Spring 2018 edition of Properties. The number of sold out projects has reached 271. New buildings with apartments for sale have also grown, but at a slower pace than purchasing activity. This shows that the market is starting to absorb the stock of units, and developers are becoming more conscious of the issue and are slowing down their activity. But still, overall supply is above demand, as shown in the graphs below. Solid developers could hold their prices steady for good-sized apartments. The survey covers Beirut and most of Mount Lebanon. ALL AREAS Total number of buildings sold out yearly versus…

Links: Click this article’s entry in ‘Table of Contents’ on our website Three things are needed to make coats and jackets just right: Color, cut, and craftsmanship. For the past few years, buyers are slowly moving from the classic coat toward more flexible and lightweight options. Impermeable jackets made of a blend of natural and synthetic fibers are relatively new to the market. Choosing the right outerwear is all about learning from past mistakes and getting the right look in the end. Trending this fall and winter season is the down jacket. COORDINATING OUTFITS Just like other types of outfit, outerwear that fits well will work best. Smart coats are to be found everywhere, but ending up in an oversized baggy coat can create an unprofessional look. Different cuts and…

BLACK FRIDAY HAD WHITE RESULTS Over the final weekend of last month, retailers engaged in ‘Black Friday’, an Americaninspired occasion that comes a day after Thanksgiving on which special discounts are offered. Nicolas Chammas, Chairman of the Beirut Traders Association, expects this year’s Black Friday sales to reach $200 million. Local retailers have slightly shifted the concept, extending the occasion over three to four days, rather than just one. Chammas said that Black Friday became a trend in the U.S. during the recession in the 1950s and then became tradition. “Locally, discounts are being done throughout the year. This situation has been going on since 2011, when sales dropped by 30 percent,” said Chammas. Discounts during Black Friday were 10-70 percent. “The danger is that discounts reach December and affect…

BEIRUT CHAMBER SEES STABLE EXPORTS The Chamber of Commerce, Industry and Agriculture in Beirut and Mount Lebanon reported a small growth in ‘real exports’ in the first six months of the year compared to 2016. The tonnage of exports, however, shot up 36 percent. Real exports exclude mineral products, gold, pearls, and precious and semi-precious stones. In terms of value, the Chamber issued certificates of origin for exports worth $1.4 billion, up 4 percent from the first six months of last year. The price of raw materials had fallen in the past year because of the drop in international oil prices. This made local merchandise less expensive, but more competitive. Base metals represent the biggest share, 38 percent, of total exports. Food industry exports grew 53 percent to $176 million.…

People looking for a housing loan are offered a wide variety of options by commercial banks, the Housing Bank (Banque de l’Habitat), and the Public Corporation for Housing (PCH). The options depend on the income level of the beneficiaries, whether they are residents or not, and whether they are employed in the private sector or in some departments of the public sector. The loan’s monthly installment should not exceed a third of the beneficiary’s monthly income. Low-income individuals, some public servants, and the displaced can benefit from Central Bank subsidies and from many exemptions. Interest rates have decreased, but they are still tied to the yield on treasury bills, this can change over the loan’s tenure, which is most often 30 years. PUBLIC CORPORATION FOR HOUSING Households whose cumulated income…

Links: Click this article’s entry in ‘Table of Contents’ on our website High-end and fashion-brand watchmakers are constantly motivated to continue making improvements, both in terms of technology and craftsmanship. Lifestyle drives the need for a wristwatch, and their appeal goes far beyond the basic time-telling functionality. For men, watches are their sole jewels, and exclusive rewards. Sometimes, the buyer also wants to pass his watch to the next generation. For connoisseurs, the more sophisticated the watch is in terms of complications, the more expressions it symbolizes – and the more expensive it is. NOVELTIES Development in high-end watches is expressed as an uninterrupted sequence rather than a short-term trend. According to Pamela Kassouf, Brand Manager at Holdal, agent of many brands such as Patek Philippe and Vacheron Constantin, clients…