Innholdsfortegnelse for October 2019 i Lebanon Opportunities

▪ FOCUS ON CONSUMER PROTECTION ▪ UPDATE THE INSURANCE LAW ▪ RESERVED ON CENTRAL BANK’S INTEREST RATE POLICY In an exclusive interview with Lebanon Opportunities, the Minister of Economy and Trade Mansour Bteish highlighted a series of priorities. “We will work to put an end to waste and reduce the trade deficit,” said the Minister. Bteish has been busy reorganizing the Ministry’s departments in order to achieve better efficiency, to impose stricter control on the markets, to protect consumers, to protect national produce, and to update various laws. He said that the previous national economic model had focused on attracting deposits instead of supporting the productive sectors. “We want to repeal monopolies, support the productive sectors, and give incentives for [the] industry and tourism sectors,” he said. Bteish is confident…

The Central Bank (BDL) is offering incentives to banks in order to encourage them to attract foreign currency inflows from abroad, namely US dollars, in order to boost its own foreign currency reserves. This will enable it to better meet the country’s external financing needs and protect the lira. In this respect, BDL is likely to face more challenges in the future due to rising external financing needs and an anticipated decline in nonresident deposit inflows. The Central Bank is trying to achieve its goals through complex swap transactions with the banks that are dubbed ‘financial engineering operations’, however, these have begun to weigh more heavily on its balance sheet. There is, however, a possibility that these operations will be no longer needed, as the government seems determined to cut…

Foreign exchange (forex) dealers noticed a sudden rise in demand for the US dollar nearly three months ago. It all started when banks stopped meeting the market’s demand for dollars at the same level they had done so in the past, said Elias Srour Deputy Chairman of the Syndicate of Money Changers. This is mainly affecting importers of fuel, pharmaceutical products, and foodstuffs, who often sell their products in lira while they pay for their imports in foreign currencies, he said. The rush to buy dollars at forex counters led to a rise in the exchange value of the greenback, although the banks continued to quote the official price while they were very reluctant to supply the market with dollars. Many forex dealers in turn became hesitant to sell dollars…

Villas are no longer the exclusive domain of high income families. Developers are creating large villa projects near cities. The new villas are smaller in size, and consequently more affordable. VILLA COMPOUNDS Villa compounds are darling projects of some developers. These projects are enriching the real estate market in the suburbs, according to Mohammad Sinno, Managing Director at Vertica Properties. The trend is for large projects in terms of land and built up area. Following success with a villa project in Rmeileh, Hussein Salem, Owner and General Manager of Right Touch Engineering Group, started the development of an 80-villa project, Ohana Hills, in Damour on an 82,000 m2plot of land. Larger projects, such as the St Jean les Villas, a 160-villa project on a 70,000 m2 plot of land in…

MATERIAL BLOCKS (PER THOUSAND) 6 cm $320-$340 10 cm $330-$350 15 cm $480-$525 20 cm $640-$700 25 cm with styrofoam 6cm $800-$875 CEMENT (PER TON) Portland cement $102 White cement $201 Premixed plaster (SODAMCO Weber or equivalent for internal use) $115 READY MIXED CONCRETE (PER M³) In OPC cement in Beirut: • 250 kg/cm2 comp strenght $75 • 350 kg/cm2 $85 Extra for pump (per visit) $100 STEEL (PER TON) Steel reinforcing deformed bars -all sizes- fy = 420 Mpa $665 Steel reinforcing mild steel bars -all sizes- fy = 280 Mpa $675 Structural steel sections ST-37 $1,420-$1,470 ALUMINUM (PER M²) Regular façade w/glass 10 cm $150-$250 Balcony rails 60-100 cm height $50-$80 WOOD (PER M³) Swedish $400-$520 Mahogany $1,250-$1,300 Claire (Douglas Fir Clear) $1,100-$1,300 Beech $600-$800 Oak (American) $1,250-$1,500…

Eventions Damascus Street, Furn El Chebbak Tel: (01) 280.085 info@eventionslb.com www.eventionslb.com IFP Group Hazmieh, Jeser el Basha Tel: (05) 959.111, Fax: (05) 959.888 info@ifpexpo.com www.ifpexpo.com Lebanon Expo Riad El Soloh, Downtown Tel: (76) 785.855 info@lebanonexpo.com www.lebanonexpo.com Promofair Accaoui Street, Ashrafieh Tel: (01) 561.600, Fax: (01) 561.605 info@promofair.com.lb www.promofair.com.lb S.P.M Fair Kaslik, Jounieh Tel: (01) 285.539, Fax: (01) 485.539 spmfair@inco.com.lb Weddings Mall Mathaf Street, Ashrafieh Tel: (03) 824.364 info@weddingsmall.com weddingsmall.com Check our website for full listings…

The banks have reacted positively to the incentives offered by the Central Bank (BDL) to attract dollars from the market. They are offering attractive interest rates to suck liquidity from the market, while at the same they are limiting the supply of dollars. A number of banks have put ceilings on dollar withdrawals. BDL is using the banks as channels to absorb dollar liquidity, especially from abroad, in order to maintain its foreign exchange reserves and uphold the exchange value of the lira. The Central Bank also aims to reduce liquidity in the market in order to prevent any speculative trading that could be harmful to the national currency. It is also seeking to boost bank deposits, which are the major contributor to the financing of public debt. The banks’…

The 2019 budget law has improved the progressivity of income tax on salaries and wages by raising the maximum rate to 25 percent from 20 percent. It has also introduced a tax on retirement pensions that is equivalent to half the rates on the correspondent tranches of salaries and wages. The new pension law does not apply to the families of martyrs from the military and security forces. MAXIMUM TAX RATE AT 25 PERCENT The new budget law stipulates that the tranche of annual net taxable earnings above LL225 million ($150,000) will pay the new maximum tax of 25 percent. According to the previous law, the tranche above LL120 million ($80,000) paid a maximum tax of 20 percent. All rates on tranches below LL120 million remained unchanged. TAXING PENSIONERS The…

Aaraya 1414 Aaraya Patrick Sawaya & Antoine Sawaya 220 m2 (09) 851.003 Azores Jamhour Rockhill Real Estate 125 m2 - 150 m2 - 165 m2 - 250 m2 (01) 445. 190 Baabdat Valley Villas Baabdat Baabdat Valley Villas 160 m2 - 240 m2 (03) 605.744 Eagle Rock Mechmech Boutros Chehade 250 m2 (03) 893. 435 Ohana Hills Damour Right Touch Engineering Group 200 m2 - 225 m2 - 250 m2 275 m2 - 325 m2 - 400 m2 (01) 748. 820 St Jean les Villas (Phase I) Daychounieh Platinum Invest Holding 125 m2 - 155 m2 - 185 m2 (05) 452. 753 Ouyoun Broummana Ouyoun Broummana GEA -Property Care Plus 105 m2 -130 m2 -140 m2 (03) 860. 654…

As in seasons past, for the autumn/winter 2019 collections, designers played their cards safe, with slim fit men suits ever-present on the runways, as well as extreme plaid designs, fabrics of wool and cashmere, and a variety of options in a range of gray shades. Office wear was reborn in the form of suit/parka ensembles for a firmly preppy air. Fashion houses have retained the traditional male style, with a few modifications in the cuts, and this autumn/winter collection will be a good opportunity to explore how to wear suits in different ways. THINK PLAID If there’s one print or pattern that defines fall more than any other, it is plaid. Fashion houses, without exception, are using this style to present their suit collection for this coming season. Plaid appeared…

Demand for sport utility vehicles (SUVs) and 4x4s continues to dominate the auto market. The local market is following a similar international trend. Automakers make sure to offer products that respond to their clients’ different needs. More SUVs are arriving in showrooms. The newcomers are mobile friendly, have modern designs, high efficiency and enhanced safety and connectivity. NEW ARRIVALS Brands are expanding their lines to respond to different client needs, making sure to offer three types of SUVs, big, medium and compact, in their line ups, according to Serena Srour, Marketing Manager at Saad and Trad, the dealer of Jaguar, Bentley, and Lamborghini. The brands’ dealer showrooms welcomed new SUVs and 4x4s this year. T.Gargour & Fils continues to enhance the Mercedes Benz brand presence in the local market and…

▪ GROWTH TARGETED IN PRIMARY SURPLUS ▪ FRANCE PUSHING HARD FOR REFORMS ▪ BANKS REMAIN STRONG WHILE FACING CHALLENGES Cabinet officials and major political and financial leaders in the country have agreed on the broad outline of a three-year economic emergency plan that aims to reduce the fiscal deficit and speed up the implementation of capital investment projects. The leaders have approved a medium-term fiscal framework over the three-year period, 2020-2022, that aims to achieve an annual primary budget surplus of at least three percent, four percent, and five percent of GDP over each consecutive year. The plan also aims to realize a deficit that does not exceed seven percent, six percent, and five percent of GDP successively over the same period. The measures include cutting the annual electricity deficit…

The dollar scarcity and the sharp rise in its price created a panic in the market as people feared that the collapse of the lira that took place between the late 1980s and early 1990s would be repeated. Samir Hammoud, Chairman of the Banking Control Commission at BDL, said that there is no dollar crisis in the country and that it is a problem of a scarcity of dollars in circulation outside of the banking system. He said that the amount of dollars in the hands of people outside of the banking system is extremely small in comparison to the overall dollar liquidity available in the banks, whose customer deposits in foreign currencies stood at nearly $123 billion at the end of July. Foreign currency deposits account for 72 percent…

Importers and distributors whose products are mainly sold on the market in lira, are facing a dilemma. They pay for these imports in foreign currencies, chiefly the US dollar. Such products include foodstuffs and other consumer goods, as well as pharmaceuticals and fuels. Banks continue to provide dollars to major importers. Smaller importers may have more difficulty in getting access to their funds. Some distributors that buy locally in the dollar but sell in lira, such as fuel distributors, are facing tougher challenges when securing funding in the greenback. A solution for financing the imports of the three major strategic and regulated commodities - wheat, medicine, and fuels, is slated to be announced by the Central Bank (BDL) on the first day of October. IN SHORT SUPPLY Importers of medicine,…

The Ministry of Finance (MoF) has submitted the draft law of the 2020 budget to the Cabinet with a projected deficit of LL5,090 billion ($3.4 billion). It is expected to be discussed over several sessions and after a vote it will be sent to Parliament this month. The MoF said the draft law includes budget cuts of more than $1.7 billion. Total expenditure is projected at $16 billion, most of which consists of current spending, which totals $15.1 billion. Investment expenditure is projected at just $930 million. Total revenues are estimated at $12.6 billion. They consist of tax revenues of $10 billion and non-tax revenues of $2.6 billion. The measures to reduce spending and improve revenues include getting rid of needless public entities and implementing tax reforms. LOWER DEFICIT-TO-GDP RATIO…

The look that has been popular for the past few seasons shows no signs of slowing down. As with men, designers are offering plaid designs on mohair and cashmere. Grey is at the forefront of colors, with the entry of brown and camel in some collections. SUIT YOURSELF The autumn/winter 2019 runways offered new styles of tailoring but also provided the template for many of this season’s other trends: 70’s bourgeois, color saturation, and oversized cuts with a wide range of luxury fabrics. Most designers played on jackets cut at the expense of other suit pieces. Alexander McQueen, Alexandre Vauthier, and Mango presented suits with a peak lapel jacket with angled pockets and single-button styling, lined with long sleeves, simple and versatile. This kind of jacket is most often paired…

Prices here are to be viewed as an indication. They often vary depending on factors including, but not limited to, special offers and exchange rates. Check with the vehicle agent for the actual price. While every care has been taken to ensure accuracy of the information, it does not constitute a guarantee that the vehicles are available, or sold, at these prices. Prices here are to be viewed as an indication. They often vary depending on factors including, but not limited to, special offers and exchange rates. Check with the vehicle agent for the actual price. While every care has been taken to ensure accuracy of the information, it does not constitute a guarantee that the vehicles are available, or sold, at these prices. Prices here are to be viewed…