Innholdsfortegnelse for December 2018 i Lebanon Opportunities

US SANCTIONS AGAINST IRAN WILL NOT AFFECT LOCAL BANKS Local banks will not be affected if SWIFT complies with U.S. sanctions against Iran, which have been put into effect. SWIFT, the Society for Worldwide Interbank Financial Telecommunication, provides financial messaging services, such as money transfer instructions, between banks across the world. Makram Sader, Secretary General of the Association of Banks, said that Lebanese banks don’t have any correspondent relationships with Iranian banks. Local banks stopped de facto dealings even with the sole Iranian bank operating in Lebanon years ago, since the earlier U.S. sanctions, he said. Trade with Iran is restricted to a few imported products like peanuts and carpets, Sader said. Many carpets are imported by pilgrims returning from visits to holy shrines in Iran, he said. Overall imports…

▶ Links: Click this article’s entry in ‘Table of Contents’ on our website A number of industrial sectors are growing and attracting new investors. Sales of consumer goods, like beer, nuts, wafers, and cosmetics are growing, and demand for steel frame structures is also rising. Entrepreneurs are spotting opportunities and moving in. Established players are expanding their production to meet local and global demand. Beer BREWING: A NEW INDUSTRY After many years of monopoly by the Heineken group – encompassing Almaza, and Laziza – several breweries making craft and mass market beer have been launched. Kassatly Chtaura broke the monopoly of mass produced beer four years ago, with its brand ‘Beirut Beer’, which can be found in most stores in the country that sell alcohol. Gravity Brewing, makers of 961…

▶ Links: Click this article’s entry in ‘Table of Contents’ on our website Many people believe that all agricultural products end up on the kitchen table. However, farmers are increasingly signing lucrative contracts and growing crops for industrial manufactures such as juice producers, potato chips makers, and wineries. There is potential for further growth. WHAT’S GOING ON More than 1,200 factories are licensed to produce agro-food goods. Many growers have seen opportunities in growing industrial crops locally for these factories, such as potatoes, citrus fruits, apricots, strawberries, cucumbers, eggplants, and grapes. “There are many success stories in these agricultural sectors,” said Chadi Riachi, Debbane’s Branch Manager in Chtaura. There is also potential for other crops that are not widely grown for industrial customers, such as tomatoes, okra, molokhia, fava beans,…

▶ Links: Click this article’s entry in ‘Table of Contents’ on our website The privatization of the Beirut Stock Exchange (BSE) and the launch of an Electronic Trading Platform (ETP) were supposed to be jointly implemented by now, but political gridlock is delaying the privatization project. The Capital Markets Authority (CMA) has decided to launch the ETP project first. The CMA has placed the final touches on the tender documents and the tender to select an operator of the ETP will be launched before the end of the year, said Firas Safieddine, Vice Chairman of the CMA. Boosting the stock market has become an urgent requirement as bank lending to the private sector has reached staggering levels. “The growth rate of loans to the private sector will become slower and…

A perfect smile starts with proper oral alignment and bright white teeth. Achieving a perfect smile or what is known as a ‘Hollywood smile’ may involve bleaching of the teeth, the placement of veneers, crowns, braces or even implants and gum surgery. HOLLYWOOD SMILE The term ‘Hollywood smile’ has become common in the last decade. It refers to the improvement of the client’s teeth and is a priority for men and women, according to Gabriel Menassa, Specialist in Periodontics and Implantology. “The smile is a part of person’s look, and it should be attractive,” said Christelle Helou, Dental Surgeon at Smile to Smile Dental Clinics. BRIGHT WHITE The desired smile may be easy to achieve if tooth color is the only obstacle. The cleaning process helps to restore the natural…

THE WORLD BANK ISSUES WARNING ON RISK PROFILE The country’s risk profile is rising sharply and the utility of some of the tools used by the Central Bank (BDL) to uphold the macro-financial situation is depleting, according to the ‘Lebanon Economic Monitor’ report for the fall of 2018 issued by The World Bank (WB). The ‘De-Risking Lebanon’ report said that an improvement can be achieved when a new Cabinet is formed, especially if it quickly implements the commitments made at the CEDRE conference. “A critical first step is the formation of a new government, upon which, the risk premium for Lebanon would likely improve quickly. This can relieve some of the burden placed on the Central Bank,’ the WB said. A new Cabinet is vital to tap the “unique opportunity…

▶ Links: Click this article’s entry in ‘Table of Contents’ on our website Blind optimism or enduring pessimism always prove to be unfounded The monetary balance is well protected despite the economic slowdown, and the rising unemployment and inflation rates. “The real sector of the economy is not doing well but the banking sector remains healthy and the monetary sector remains buffered,” said Bank Audi in its ‘Lebanon Economic Report’ for the third quarter of 2018. The monetary sector enjoys two defensive lines. The first one consists of the substantial foreign assets held by the Central Bank (BDL). BDL can mobilize these assets to counter conversions from local to foreign currencies and consequently dodge monetary risks. The second buffer involves adequate primary liquidity in foreign currencies held by the banks.…

▶ Links: Click this article’s entry in ‘Table of Contents’ on our website Financial institutions are attempting to encourage clients to go cashless with innovative payment cards that make it easier than ever to use plastic. They are seeing substantial opportunities outside Greater Beirut, where card usage is relatively low. At the same time banks are issuing more secure cards to protect their clients and boost confidence. PENETRATION The number of payment cards in circulation increased by five percent in the first half of the year compared to the same period last year, according to the Central Bank (BDL). With the majority of employees having domiciled their salaries in banks, the number of debit cards is three times the number of credit cards. “There is still large room for growth…

Audi A6 3.0 L six-cylinder, twin-scroll turbocharged, 340 HP 7-speed S-tronic dual-clutch transmission $110,000 Audi A7 Sportback 3.0 L six-cylinder, twin-scroll turbocharged, 335 HP 7-speed S-tronic dual-clutch transmission $135,000 BMW 330 2.0 L four-cylinder, 252 HP 8-speed automatic $60,000* Honda Accord 1.5 L four-cylinder, turbo, 200 HP Continuously Variable Transmission Starting price: $35,500 Kia Cerato LX 1.6 L four-cylinder, 128 HP 6-speed automatic transmission Starting price: $17,200 Mazda 6 2.5 L four-cylinder, 188 HP 6-speed automatic transmission Starting price: $47,300 Peugeot 301 1.6 L four-cylinder, 120 HP 6-speed automatic transmission Starting price: $12,900 *Estimated prices. Only new models and those that have undergone major uplifts are listed. Prices include VAT and are to be viewed as an indication. They often vary depending on factors including, but not limited to, special…

BERYTECH IN AMCHIT Berytech and Michel Issa Foundation (MIF) have launched ‘Berytech Amchit’, the first business innovation center outside Beirut. Berytech Amchit will support area entrepreneurs in various fields including ICT, smart agri-food, renewable energy, ecotourism, and social entrepreneurs, said Maroun Chammas, Chairman and CEO of Berytech. The Amchit location was selected for two major reasons. Ramy Boujawdeh, Berytech’s Deputy General Manager, said that the area has a high population and universities, and graduates have shown interest and commitment to improve entrepreneurship. The project will enhance the economy and address job creation in the Kesrouan and North Lebanon areas, said Toni Issa, Chairman of MIF. MIF will finance the building at an approximate cost of $5 million, and expects to open in Q1 2020. Berytech will manage the project, and…

INDUSTRIAL PERMITS UP BY 45 PERCENT The Ministry of Industry (MoI) issued 476 industrial permits in the first six months of the year, a 45 percent increase compared to the same period last year. These include new establishment licenses, expansion approvals, exploitation permits, and renewals. The MoI issued 139 licenses for the establishment of new factories. “Investors’ appetite for putting money in the industrial sector is growing,” said Dany Gedeon, Director General at the Ministry. Food industries and construction material industries accounted for 40 percent of licenses for new factories. “Small and medium-sized projects are opting for opportunities in the agro-food sector, especially in rural areas,” said Georges Nesraoui, Vice Chairman of the Association of Lebanese Industrialists. The majority of these factories produce pickles, spices, and traditional sweet beverages. The…

▶ Links: Click this article’s entry in ‘Table of Contents’ on our website The property market continued to adjust this year in terms of stock, sales, and new projects. The stock of apartments continues to rise for the second consecutive year, albeit at a slower pace. Sales activity fell in 2018, with the Northeastern Suburbs taking the brunt of the fall. Statistics show that fewer new projects were begun, a decline that has persisted since mid-2014. These findings are based on InfoPro’s market survey, published in Properties magazine this month, which covers new construction activity in Beirut and its suburbs, as well as Baabda, Metn, and Kesrouan. SLOWDOWN IN BEIRUT The capital might be the most flexible region when it comes to weathering the market slowdown. Beirut has room for…

Arab Cultural Club Abdel Aziz Street, Hamra Tel: (01) 948.345, Fax: (01) 847.351 info@arabculturalclub.com www.arabculturalclub.com IFP Hazmieh, Jeser el Basha Tel: (05) 959.111, Fax: (05) 959.888 info@ifpexpo.com www.ifpexpo.com M.I.C.E. Lebanon Sami El Soleh, Badaro Tel: (01) 976.902, Fax: (01) 976.798 info@micelebanon.com www.micelebanon.com Oraunion Armenian Catholicosate of Cilicia Street, Antelias Tel : (04) 403.352 info@oraunion.org, www.oraunion.org Promoteam Ashrafieh Tel: (01) 577.203 sm@promoteam.me, promoteam.me Syndicate of Publishers Union Al-Shadia Building, Bir Hassan Tel: (03) 775.638/9 Fax: (01) 853.712/3 info@publishersunionlb.com www.publishersunionlb.com ▶ Check our website for full listings…