Innholdsfortegnelse for Apr-18 i Lebanon Opportunities

SUBSIDIZED HOUSING LOANS FUNDED FROM 2019 BUDGET The Central Bank will increase the number of housing loans that will benefit from the interest rate subsidy. The total amount earmarked for housing loan subsidies for 2018 has been completely used up in just one month due to a large number of loan applications that have been rolled over from last year’s excess demand. Riad Salameh, the Governor of the Central Bank (BDL), said that some banks made commitments beyond their assigned quotas. BDL asked them to fulfill these obligations by using funds from the forthcoming 2019 subsidy package. A source said that BDL is also considering increasing the ceiling of subsidized housing loans for 2018 beyond the previously allocated $500 million. The 2018 stimulus program, worth up to $1 billion, was…

METHODOLOGY InfoPro has been monitoring the residential real estate market for the past 18 years. Its database contains all buildings under development in Greater Beirut and the Mount Lebanon area. The data for buildings under development is captured through extensive ground surveys, desk research, and by interviewing developers. InfoPro developed two indicative indices which track the performance of residential real estate over time: A Price Index and an Inventory Index. As a baseline, a starting nominal value of 100 was assigned to all the indices beginning in the first half of 2012. The indices were computed relying on this base year. The indices show how the prices and the inventory of units vary against previous values across different periods. The activity of developers has slowed down in 2017 compared to…

Improving technologies have led to major changes in consumer demands, as norms are rapidly shifting in terms of panel size, picture resolution, and audio quality. ‘Smart’ features are also a requirement for all consumers in the mid-range and higher categories. The term ‘smart’ includes many broad features, such as an Internet connection and video-on-demand (VOD) capability. Almost all TVs are equally smart, especially in the medium and high-end categories. Improvements in TV screens have resulted in two major lines of technology, both based on the light emitting diode (LED). Consumers have a wide selection that suits all budgets, and enjoy better prices due to fierce competition. BRANDS FOR ALL Substantial improvements have been seen in the quality of picture, audio, and smart features, said Bassam Nassar, General Manager at Kintaro,…

PRIVATE SECTOR TO TAP $6 BILLION IN PUBLIC PROJECTS The High Council for Privatization (HCP) has proposed a list of projects subject to public-private partnership (PPP) deals, which will be part of a $22 billion infrastructure investment program (IIP). The 18 projects that have been announced have a combined value of over $6 billion. They include five projects in transport, five projects in wastewater, three projects in water, two projects in solid waste, one project in energy, one project in telecom, and the Tripoli Special Economic Zone. Ziad Hayek, Chairman of the HCP, said: “This is not an exhaustive list of potential PPP projects. Many of the projects currently under examination are not listed, for particular reasons in each case.” He said that the presented projects are not all at…

Tech entrepreneurs highlight the accumulating positive factors within the ecosystem, such as the moderate availability of funding, the availability of incubators and accelerators, and improving mentorship programs. This is one of the findings put forward by the ArabNet report, ‘Lebanese Innovation Economy Tech Startups’, released during the Digital Transformation Forum event organized last month in Beirut. The report reflects the views and profiles of local tech entrepreneurs regarding the evolution of the tech ecosystem. The survey also reflects how the knowledge economy (KE) has benefitted in the four-year period from the Central Bank (BDL) circulars 331 and 419. The circulars gave large facilities to banks to invest in startups. The surveyed startups still find many obstacles in their entrepreneurial track, such as a tech-talent gap, a restrictive regulatory framework, and…

News of a tax inspection is not music to the ears. It can be a nightmare as one does not know what kind of inspector is coming to poke into accounting records. How supportive, picky, or corrupt will the inspector(s) be? Private sector tax evasion and public sector corruption are assumed to be prevalent. Many companies have become specialists in tax avoidance. Some corporate and individual taxpayers try to reduce their tax burden lawfully through tax planning and structuring. Others dodge the law in order to evade taxes. Experts hope that reforms and the automation of the tax departments will help in reducing contact between tax inspectors and the public, which might help to reduce corruption and boost budget revenues. INSPECTION DAY Taxpayers are informed beforehand by the tax authorities…

HISENSE M7030UWG 65”, 3840x2160 UHD 4 HDMI, 3 USB ports Ultra contrast, one-touch access Surround sound, Dolby $1,750 SAMSUNG KS9500 78”, 3840x2160 4K UHD, HDR Quad core processor 4 HDMI, 3 USB ports $9,400 HISENSE K3140PW 65”, 3840x2160 UHD 2 HDMI, 2 USB ports Analog and digital, one-touch access Dolby DTS $530 LG LJ550V 43”, 1920x1080 FHD 2 HDMI, 1 USB port Virtual surround plus $530 LG 65G6V 65”, 3840x2160 OLED, HDR WebOS3.0, quad core processor 4 HDMI, 3 USB ports DTV recording $6,500 PHILIPS PFT5250 43”, 1920x1080 FHD 3 HDMI, 1 USB port, $350 SAMSUNG QA75Q7F 75”, 3840x2160 QLED, 4K UHD Quad core processor 4 HDMI, 3 USB ports $7,400 SONY KD-85X8500D 85”, 3840x2160 4K UHD, HDR 4 HDMI, 3 USB ports $6,360 SONY KD-55X9300E 55”, 3840x2160 4K UHD,…

BEIRUT CHAMBER EXPANDS TO JOUNIEH The Chamber of Commerce, Industry, and Agriculture in Beirut and Mount Lebanon (CCIABML) inaugurated last month a branch in Jounieh. The total built-up area of the office reaches 850 square meters, including a conference hall named ‘Cheik Nassib Gemayel’, and a meeting room named ‘Hanna Fahed’. It also comprises offices representing the CCIABML and Union of Mount Lebanon Traders, Jounieh and Kesrouan Traders Association, Kesrouan Industrialists Association, Syndicate of Owners of Maritime Touristic Institutions, and a center for processing paperwork. Mohamed Choucair, Chairman of CCIABML, said: “The new branch was created and equipped with the most advanced technologies in order to host major economic events.” Choucair said that everyone, especially the public sector, has become aware of the private sector’s role and capabilities in preserving…

FISCAL DEFICIT DROPS 24 PERCENT The fiscal deficit narrowed 24 percent to $3.76 billion in 2017 as total revenues increased at a greater rate than expenditures, according to the Ministry of Finance (MoF). Total revenues, mainly driven by tax revenues, jumped 16 percent to $10.8 billion, while total spending rose nine percent to $14.1 billion. Tax revenues surged by $1.2 billion, or 17 percent. Non-tax revenues increased by $315 million, or 14 percent. The decrease in the fiscal deficit was the result of an improvement in tax collection and additional austerity measures regarding spending, said Marwan Barakat, Chief Economist and Head of Research at the Bank Audi group. He said that there is a need to improve tax collection further as fiscal evasion still accounts for eight percent of GDP.…

Akkar has great potential for the formation of an agriculture packaging cluster and a processed meat cluster, according to the ‘Investment Opportunities in Akkar’ report recently issued by the Investment Development Authority in Lebanon (IDAL). The authority has a more comprehensive project awaiting Cabinet approval. It aims to create clusters of similar or complementary companies, each related to a sector and a geographic area. The project aims to boost investment. The model could be the result of a public-private partnership through the government provision of land, or be limited to private sector ownership with government support through the Central Bank and Kafalat. AGRO-FOOD CLUSTERS IDAL has conducted a socio-economic analysis for Akkar, showing the opportunities for establishing clusters related to agriculture and agro-food. According to the report, Akkar is the…

A cashless society is getting closer, at least in private transactions. There is growth in the usage of payment cards. But when compared to industrialized countries, there remains large potential to convert from cash to electronic payments. There is no obstacle that prevents fast development, as the technology used locally is state of the art. Banks are continuously providing technologies that facilitate the usage of plastic cards and make it more secure. They are also diversifying loyalty programs and facilitating ways for customers to redeem their points, to attract more consumers. HEALTHY EXPANSION The number of credit cards in circulation increased by three percent last year. But the usage of credit cards has registered a record 20 percent growth, according to Visa. “The main reason behind this growth is linked…

The Central Bank (BDL) is planning to issue its own digital currency. Riad Salameh, Governor of the BDL, said that the Code of Money and Credit gives the prerogatives to BDL to establish means of electronic payments. “Work on the digital currency project has begun,” he said. The digital currency will be under BDL’s supervision. Information technology consultant Jacques Bakaev said that central banks around the world are taking their time to develop a digital currency platform to achieve air-tight reliability, security, and control. “A central bank digital currency (CBDC) could be made widely available to the general public and serve as an alternative safe, robust, and convenient payment instrument,” according to a report by the Bank for International Settlements (BIS) released last month. The BIS report said that issuing…