Innholdsfortegnelse for April 2019 i Lebanon Opportunities

Lebanese film audiences grew steadily over the last two years, with a quarter of all movie tickets sold being for local productions. This growth in demand is driven by a larger number of movies being produced locally, as well as an improvement in the quality of those films. PRODUCTION ON THE RISE Homegrown productions sold 905,000 movie tickets last year, up from 230,000 in 2014, according to data compiled by InfoPro. “The increasing demand for local movies is due to the improvements in movie production, and the higher volume of production,” said Isaac Fahed, Regional Sales and Distribution Manager at Grand Cinemas. Since the Syrian crisis began, a large number of Syrian actors and filmmakers relocated to Lebanon and passed on their expertise to their local counterparts. “This mutual experience…

Around 400 Chinese companies signed this month a 15-year lease agreement with Inter Mall Group, owner and operator of Cascada Village in Taanayel, Bekaa to rent the 60,000 square-meter (m2) mall. “The Chinese are entering the markets of Lebanon, Syria, Jordan, and Iraq through our premises,” said Maurice Torbey, Chairman. EXPECTED OPERATIONS China City will resemble the kilometer long Dragon Mart in Dubai, the largest Chinese trading hub outside China. The Chinese will start working at the mall as of end of April, according to Torbey. China City, which will be the official name of the hub, will be a one-stop shop for bargainhunters, packed with Chinese products that include garments, jewelry, furniture, electronic goods, and interior offerings. “The main purpose of renting the mall is for retailers and wholesalers…

Demand in destinations like Batroun, Tripoli, Tyre and Shouf is growing tremendously. Investors are responding to this growth and are expanding to these new hubs. Others have their eyes on these regions as they still have room for growth. BOOMING BATROUN One of the main areas that is becoming a touristic hub is Batroun and its nearby villages. “Demand is thriving from foreign tourists,” said Elissar Baalbaki, Chairman of the Syndicate of Touristic Guides. This is due to the variety of offerings Batroun is providing, including archeological and religious sites, such as the Phoenician Wall and old churches. Tourists heading to Batroun are taking advantage of its nearby villages, which host around ten wineries including Ixsir, Atibaia, Aurora, Clos du Phoenix and others. “We are receiving hundreds of requests for…

Traditional marketing tools such as running videos on wellknown broadcasting platforms to promote the country have become outdated. Efforts from the private and public sector have focused on new promotional tools and initiatives to put the country on the touristic map. SOCIAL INFLUENCERS International bloggers and social influencers who visit the country are producing well made promotional videos. Travel Blog Tolt Around the World posted a video with a tongue-in-cheek title ‘Don’t go to Lebanon’, depicting the country’s nightlife, heritage, and cultural sites. It was produced with the support of ‘Visit Lebanon’, which is organized by the Ministry of Tourism (MoT), as well as Aigle Azur. The video has been seen by more than 282,000 viewers. The ministry has also been inviting bloggers, and social influencers from Brazil, UK, Switzerland,…

There are many options to improve the experience behind the wheel. There are always additional features available. Gadgets such as head units, speakers, cameras, and mobile phone holders, add to the automotive fun. SMART ENTERTAINMENT A head unit, or the car’s stereo, is an important accessory, as it is the main part of any car’s audio system. It is usually installed in the dashboard, and comes with a variety of useful features: a navigation system, Android compatibility, USB inputs, an auxiliary input, CD/DVD playback and Bluetooth. Touchscreens make it easy to manage music, navigation, phone calls and so much more. Head units come in different sizes: the single DIN, which is seven inches by two inches in size, and can fit in almost any vehicle, and the double DIN system…

GOVERNMENT REITERATES LOCAL GOODS PREFERENTIAL TREATMENT IN BIDS The Prime Minister’s Office issued a circular asking all public institutions and Union of Municipalities to give ‘Made in Lebanon’ goods a preference when setting the terms of reference for tenders and public procurement. Manufactured products should be given preferential treatment even if they are up to ten percent more expensive than imported goods. The decision is based on a circular issued in 1997, calling for involving national industries in tenders whenever these industries meet the technical conditions that are required in the terms of reference. “Public institutions are still not abiding to the rules and decrees issued when setting the terms of references for tenders,” the Prime Minister’s Office said in a statement. “Public procurements for manufactured goods are still very…

The shortage of skilled workers has led companies to headhunt qualified candidates from their competitors in an effort to maintain their edge. Vocational training initiatives are taking place to increase the pool of skilled workers. THE CASE Vocational and technical students represented seven percent of the total number of general and higher education students in the school year 2017-2018, according to the newest report published by the Center for Educational Research and Development (CRDP). The labor market still has a problem obtaining qualified labor, as most university graduates shun blue-collar jobs and there are not enough graduates in the vocational and technical fields to meet the market’s needs. The total number of technical students studying for degrees including the Brevet Professionnel (BP), Baccalauréat Technique (BT), Technique Supérieur (TS), and License…

The tourism sector is fighting back, and the number of tourists has been on the rise for the last few years. Hotel and flight bookings indicate that this year will be promising, with visitors from various nationalities coming to the country. Gulf tourists have started returning to the country. Efforts have been focused recently by the public and private sectors to reposition the country as a premier destination for entertainment, cultural, and eco-tourism. Those efforts are bearing fruit. THRIVING TOURISM Two million tourists visited the country last year, registering a six percent increase compared to 2017, according to the Ministry of Tourism (MoT). The number of tourists is expected to increase tremendously this year, exceeding two million visitors. Tax free spending increased by 6.5 percent last year compared to 2017,…

Eco-tourism and rural offerings are catering to tourists of a variety of nationalities, who are looking to connect with nature. Outdoor activities are in demand and investors are responding. These projects are contributing to community development, and creating jobs and investment opportunities. INCREASING NUMBERS “Outdoor activities have been in more demand in the last few years, attracting local and international tourists,” said Martine Btaich, Executive Director at the Lebanon Mountain Trail Association (LMTA), which established the first national long-distance hiking trail. The LMT concept was implemented in collaboration with the United States Agency for International Development (USAID), with the aim of promoting economic growth in rural areas. “Tourists are mainly attracted to the country’s diversity in landscape,” said Btaich. The LMT is 470 kilometers long, and goes through more than…

▪ BLOM first in total profits ▪ Audi top in assets ▪ Lebanese Swiss record deposit growth ▪ IBL most efficient in using resources The consolidated assets of commercial banks grew by 13.5 percent year-on-year to nearly $250 billion at the end of 2018. The banks managed to increase their deposits, albeit moderately, despite the tough conditions they faced. The sector’s consolidated customer deposits grew by $5.6 billion, or 3.3 percent compared with 2017. The banks’ consolidated loans to the resident private sector contracted by $1.3 billion in 2018, while loans to non-residents increased by $1 billion. The banks’ profitability was affected by the rising costs of funds, the decline in lending to the private sector, and the adverse effects of domestic tax hikes. The consolidated net profit of the…

Well-paired odd pants have become an option for many men who seek to look stylish and unique. Odd pants are those that do not come with a matching vest or garment of the same material. Following the success of the odd jacket in 1920s, fashion designers began to push the limits of trouser design. They come in many different textures and cuts, and many have unique names. Among a wide variety, classic dressy pants and chinos fit the business environment, adding a touch of style. DIFFERENT STYLES Dressy or classic, trousers are the most formal style of garment when it comes to odd pants. They are identical to suit pants, but they are bought separately, without a matching jacket of the same material. Understanding how to match colors and materials…

INDUSTRY DECLARES STATE OF EMERGENCY The Association of Lebanese Industrialists (ALI) announced an ‘industrial emergency’ on Wednesday, calling on the government to save the country’s industry, jobs, and economy. “Tens of manufacturers are close to shutting down their factories due to dumping, smuggling, and unlicensed factories,” said Fadi Gemayel, Chairman of ALI. The association gave the government 100 days to take measures to save the industrial sector. ALI requested a comprehensive vision and strategy for reviving the sector and economy. They demanded the closure of all illegal factories, implementation of trade agreements based on reciprocity, implementation of laws on the books, a review of industrial costs, injection of liquidity in the market, and a reduction of borrowing costs. Wael Abou Faour, Minister of Industry, joined voices with the industrialists. “I…

PUBLIC DEBT UP WITH HIGHER DEFICITS Gross public debt increased seven percent year-on-year to $85.1 billion at the end of 2018, according to the Ministry of Finance (MoF). Net total debt rose ten percent to $75.7 billion over the same period. Net total debt is calculated by subtracting from the gross debt, public sector deposits with the Central Bank (BDL) and commercial banks. “Wider fiscal deficits in the context of weak economic activity and high interest rates have led to rapid accumulation of public debt, which increased to 152 percent of GDP in 2018,” the Institute of International Finance (IIF) said in ‘Lebanon: Time to Act’, a report released in February. The gross local currency debt, which includes public sector deposits, stood at $51.6 billion at the end of 2018.…

Parliament has approved a number of long-awaited amendments to the Code of Commerce, which was issued almost 80 years ago. The key amendments include separating the positions of chairperson and of general manager, reducing the minimum number of shareholders in a limited liability company to one instead of three shareholders, and separating the assets owned by a non-bankrupt woman from the assets of her bankrupt husband. Andre Chidiac, Chairman of the Beirut Bar Association, said that the amendments are necessary to modernize the Code of Commerce and to keep it in line with progress in the business world. The proposal to modernize the Code of Commerce, which is part of the reforms pledged at the CEDRE conference, had lingered in Parliament for nearly six years. SOLE SHAREHOLDER Reducing the minimum…

Investments in new hospitality projects abound. Cities and towns beyond the capital appear attractive, based on increasing demand. Several beach and mountain resorts, restaurant clusters, and food and beverage chains are expected to open in the coming two years. VALUABLE INVESTMENTS Travel and tourism attracted capital investment of $1.4 billion in 2017, according to the latest ‘Travel and Tourism Economic Impact 2018 Lebanon’ report published by the World Travel and Tourism Council (WTTC). Investors are looking at cities that have a large enough population and adequate infrastructure in place. They are eager to open their projects in Beirut as well as in the North, South, and Bekaa. Previously, areas outside the capital relied on local demand or limited weekend visitors. But people are heading back to their home villages for…

Many touristic projects that reflect the country’s heritage and diversity have seen light in recent years. Investors have spotted the need for projects that take guests into the countryside, teach them traditional crafts, or give them the chance to pick fresh produce. Within a short time, these investments have proven successful in attracting both local tourists and foreigners. BADER HASSOUN ECO-VILLAGE The family behind Khan el Saboun in Tripoli has taken the initiative of establishing an eco-village in Daher-al-Ain, Koura. The increasing demand on the old Khan in Tripoli inspired the family to build the eco-village. “It is seeing an annual 20 percent growth in the number of visitors,” said Ahmad Hassoun, Chief Executive Officer. The number of people visiting the Bader Hassoun Eco-village reaches 1,000 visitors per day. The…

There are more than 40 new residential buildings under construction on the Kesrouan mountain highway from Jeita to Sheileh, Ballouneh, and Ajaltoun. These areas are the main residential pockets in Middle Kesrouan. Demand for residences in these areas has been consistent due to their proximity to the coastal highway, their moderate elevation, and affordable prices. ACCESS AND AMENITIES Middle Kesrouan can be accessed by leaving the Zouk Mosbeh highway heading north using the Ajaltoun exit. The exit will lead to Jeita, followed by Sheileh, Ballouneh, and Ajaltoun. These areas can also be reached from Zouk Mkayel by heading towards Aintoura, eventually leading to Jeita and beyond. This is the same road that eventually leads to Faraya. Perhaps the most famous touristic landmark in the region is the Jeita Grotto, which…