Innholdsfortegnelse for May-18 i Lebanon Opportunities

Representatives from 50 countries, international organizations, and financial institutions gathered in Paris last month at the CEDRE donor’s conference to provide support to the country, CEDRE is the acronym for ‘Conférence Economique pour le Dévelopement par les Réformes et avec les Entreprises’ (Economic Conference for Development through Reforms and with Businesses). This was the fourth donors’ conference for the country and was held in Paris. The President of France said during the conference: “We will start immediately following up on the pledges made during this conference. You can count on us.” CEDRE is meant to seek an investment plan for infrastructure, certain structural reforms, and the mobilization of the the private sector. “Recovery must start, and the challenge is to reverse the negative trend in economic growth, poverty, and unemployment.…

The 2018 budget, recently passed by the Parliament, bears a deficit of $4.82 billion, slightly lower than the $4.97 billion deficit that was initially projected for 2017. However, actual figures for last year’s fiscal deficit were a lot lower than expected, at just $3.76 billion. This exceptional result was mainly due to one-time revenue from the banking sector which benefited from the financial engineering performed by the Central Bank (BDL) in 2016. The World Bank said in its ‘Lebanon Economic Outlook’ report issued in early 2018 that “the 2018 budget uses a combination of revenue measures and non-wage recurrent spending restraint to aim for further deficit reduction, but reform is ever more urgent as the Central Bank’s solo activism is facing macro-financial risks.” The 2018 budget included the new taxes…

AUDI A8 55 TFSI Quattro Arrival date: May 2018 6 cylinders, 3.0 L, direct injection and turbocharging, 340 HP 8-speed tiptronic transmission, Quattro AWD 10.1” & 8.6” MMI touch screens $169,000 Bentley Continental GT Coupe Arrival Date: August 2018 12 cylinders in W configuration, 6.0 L, twin turbo, 635 HP 8-speed dual clutch transmission, active AWD 12.3” capacitive touch screen retina display $335,200 BMW M5 8 cylinders, 4.4 L, M Twin Power turbo, 600 HP 8-speed M Steptronic transmission with Drivelogic, M xDrive Variable Damper Control $200,000 FERRARI Portofino 8 cylinders, twin turbo, 3.9 L, 590 HP 7-speed F1 dual clutch transmission, RWD E-diff3, F1 Trac traction control 10.2” touchscreen display $340,000 GENESIS G70 Expected arrival date: June 2018 4 cylinders, 2.0 L, turbo, 252 HP Dynamic Torque Vectoring, Mechanical…

There have been numerous questions surrounding the CEDRE conference, its results, follow up, and impact. Lebanon Opportunities organized an information session with Nadim Munla, Senior Advisor to the Prime Minister, and the lead on the Capital Investment Plan, to respond to the most pressing concerns. Here is a summary of the topics that elicit the most interest. There have been various reports about the financial output of the conference. What is the final figure? CEDRE brought pledges of around $11.6 billion in grants and loans, whereas expectations were around $6-7 billion. Some of it, $860 million, will take the form of grants, and the remaining will be in the form of soft loans. The reason for the success is that CEDRE has been a transparent exercise. The government went to…

▸ The property transaction tax, paid upon purchasing a property, has been lowered to three percent for units below $250,000. For more expensive units, the first $250,000 will be taxed at three percent, and the remaining amount at five percent. Previously, all purchase transactions were taxed at five percent. ▸ Custom fees and internal excise fees have been lowered on hybrid cars, to reach 20 percent. Totally electric-powered cars are fully exempted from these fees. For public transportation vehicles, the fees are lowered to ten percent. They are also exempted from registration fees and ‘mecanique’ fees for their first introduction to the market. ▸ The tax on interbank deposit interest has been cancelled. This tax, at seven percent like any other tax on deposit interest, was enacted in budget law…

Massive refugee-related aid is channeled to the country each year – nearly $1 billion annually – through specific countries and international NGOs (INGOs), generating opportunities for the private sector on every level. In some cases, the procurement done by relief organizations has become a lifeline for companies. The economic effect on private companies has changed year on year since 2011, both in terms of the amount and of kind of products and services that are supplied by local companies. Over time, procurement needs have changed. At first, refugees required solutions to long-lasting basic needs, such as shelter, to satisfy the urgent need for settlement. Procurement then focused on the daily consumer goods needed to sustain refugees and vulnerable locals. Among the main beneficiaries are micro, small, and medium enterprises (MSMEs).…

• BLOM surpasses Bank Audi in deposits and equity • Saradar Bank is the fastest growing • Bank Audi has the highest return for shareholders • IBL Bank has the highest productivity per employee The banking sector continues to prove its resilience despite the uncertainties it faced in 2017. The consolidated assets of commercial banks grew 7.6 percent to $220 billion compared with 2016. Total customer deposits increased 3.8 percent to $168.7 billion. Many banks increased their placements with the Central Bank (BDL), which offered attractive rates. This did not prevent lending to the local private sector from rising. The number of banks that have reported a decrease in their net profit over the period 2016/2017 has jumped to ten out of 21 banks participating at the survey compared with…

A short-sleeve, collared shirt is simply a better choice As the temperatures rise, the dress code for office attire eases off, especially in less formal workplaces. However, in some sectors, in banks, for example, regulations are more rigid. But even if some workplaces are a relaxed setting, no one should be fooled into thinking that your appearance is of no importance at all. Nothing says, “I do not take my job seriously” more than exposing a lot of skin and diminishing the formality of your attire. WHAT TO AVOID Every professional workplace has its own dress code. In some places, the code is not very strict. But, whatever the business is, a dress code is a must. No one should ‘Come as you are’. People who dress more casually, even…

15 MORE PLANES AND HQ FOR MEA Middle East Airlines (MEA) plans to purchase 15 new airplanes between 2019 and 2021, 11 Airbus A321s and four other ‘wide-body’ variants. The new planes will be equipped with Wi-Fi. MEA will expand its headquarters to include several new buildings and hangars, according to its Chairman Mohammad El Hout. The expansion of the headquarters, located near MEA’s recently inaugurated training center near the airport, will cost $150 million. Works will start next year. The new buildings will include a ground technical services building and a ‘green’ office building, both scheduled to be completed in 2020. An in-flight services facility and an aircraft maintenance facility will also be inaugurated in 2021. The new buildings will include a gym and a daycare center for working…

The Office of the Minister of State for Administrative Reform (OMSAR) has launched a Digital Transformation Strategy (DTS) to shift the government and related entities to a digital-by-default environment. According to Ali Abdallah, Senior Advisor at OMSAR, the strategy aims to initiate a consolidated portal where end-users can benefit from improved online services through interactive interfaces. The DTS will also set better operational standards among ministries and departments through pre-set technical criteria. Investments in the hardware and software infrastructure are required to permit the exchange and use of data between different governmental entities. DTS also involves continuous investments in human capital within the public sector. International and regional donors, including the World Bank and the Delegation of the European Union, will help implement the strategy. DTS will benefit the private…

Powerful engine lineups, smooth rides, superior handling, exquisite interiors, and a rich array of features are the norm in the luxury car segment. Sports cars were usually less comfortable in the past, but now more feature advanced suspensions. Shifting driving modes makes these powerful machines ride smoothly for daily driving. To better compete, brands from both segments are re-inventing their models to provide a full range of cars to satisfy ever-escalating needs. The two segments are intersecting more and more, making them inseparable. EVOLVING MARKET Automakers compete aggressively in design, technical aspects and benchmarks. Local competition is rising as sales of luxury/sports cars are decreasing. Imad Ghorra, Brand Manager of Bentley and Lamborghini at Saad & Trad said that the estimated overall decrease in these segments had reached 30 percent…

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