Innholdsfortegnelse for Volume 4 - 2022 i Lebanon Opportunities

The current government – just like its predecessor – has focused most of its attention on the so-called ‘losses’ in the financial sector. It will be impossible to get stakeholders to agree on their amount and how they should be distributed. Especially if it is the only measure taken, or front-loaded into a program. It is the most costly and difficult way to start. Tackling business and economic issues is the easiest and least expensive approach to begin untangling our problems. Resolving the issue of losses should be the end result of these efforts, not their catalyst. But this takes some ingenuity and out-of-the-box thinking, which are missing in our leaders. A different flavor of the same failed approach The current government’s approach in handling the nation’s multiple crises is…

Provided by Philippe Jabre, a Geneva-based Lebanese investor and founder of hedge funds and personal wealth management companies, has acquired the majority ownership stake of Heineken Group in Brasserie Almaza (Almaza). Both parties did not disclose the financial value of the acquisition which has increased the stake of the Jabre family to more than 70 percent from 12.5 percent. Heineken has retained a minority ownership in Almaza while other shareholders hold tiny stakes. The Bocti group, which used to hold around 17 percent stake, had exited the company at a previous time. The Almaza brewery was founded in 1933 by Jabre’s grandfather and two other members of the family in addition to two other shareholders. The combined stake of the Jabre family members was 60 percent at that time. Exports…

Name Mondis Sal Capital (Shares) LL300,000,000 (30,000) Directors Noel Michel Abi-Nader (Chairman & Gen. Mgr), Ayda Lichah Abi-Nader, Patrick Michel Abi-Nader, Thierry Michel Abi-Nader, MAN Holding Sal (Holding) Reg. address 2nd Floor, Port 427 Sal Property, Lot No. 678 Medawar Object General trade, management of waste and sewage projects Bank Banque Libano-Francaise Solicitor Me Georges Lichah Abi-Nader Auditor Sarkis Sakre and Partners Name Diamantina Sal Capital (Shares) LL30,000,000 (3,000) Directors Roula Bachir Nsouli, wife of Nader Nasreddine (Chairman & Gen. Mgr) (1,499), Serena Helal Tawil (01), Imane Abdelatif Schoucair (1,499) Shareholders Farah Nader Nasreddine (01) Reg. address RB 380 Building, Hamra Street, Lot No. 380/12 Ras Beirut Object General trade, import, export, commerce and industry of jewelry and precious stones Bank Bank Audi Solicitor Me Firas Mounir Hamdan Auditor Bechara…

▶ Links: Click this article’s entry in ‘Table of Contents’ on our website A synthesis of a recent report published by The Central Administration of Statistics (CAS), and two others by UN Women, one in conjunction of the World Bank – International Finance Corporation (IFC), and the other with the European Union (EU), are showing major strides in the levels of participation and pay for women in the country. Educational levels of women improved at a much faster pace compared to men during the last 30 years. This has led to a substantial increase in their participation in the labor force. University education has also shrunk the wage gap. Despite this improvement, the gender gap remains in labor force participation and pay. The recent economic, Covid-19 pandemic, and the port…

The proposed law does not only put restrictions on transfers abroad, but it also imposes strict controls on withdrawals by depositors from their lira and U.S. dollar accounts in Lebanese banks. The constraint on amounts withdrawn from deposits is by itself more damaging than the limitations enforced on transfers abroad. The fifth article of the proposed law set the maximum monthly withdrawal at $1,000 per person. A special committee decides the currency (foreign or national currency) in which this amount is to be paid to the depositor. I emphasize the critical importance of this article because of its destructive effect on the economy as it leads to the loss of the citizens’ purchasing power and a deep depression. It will also have a negative impact on public finances and the…

Agrytech (2017 - Present) ACT Program Grants, business solutions Agri-food specialist Soha Nasser (01) 533.040 Soha.nasser@beytech.org www.berytech.org/programs/agrytech/ Partner: Berytech Financial and technical support to agrifood SMEs and startups producing innovative food and beverage products or working on technology-based solutions addressing challenges in farming, packaging and marketing, rangelands and forestry, fishing and aquaculture, and management and extension challenges facing the agri-food industry. The beneficiaries will be offered networking opportunities with dedicated experts, the opportunity to be promoted locally and worldwide, and will be offered training and access to Berytech’s Fab Lab. Size per ticket: Up to $37,000 BESTMED GRAPES New Business opportunities & Environmental suSTainability using MED GRAPE nanotechnological products (Sept 2019 – Aug 2022) ENI CBC MED Grants, technical Business support specialist Joelle Hajjar (01) 649.555 ext. 6082 joelle.elhajjar@berytech.org www.berytech.org/programs/bestmedgrape/…

From Deliberate Depression to Great Denial Titles of World Bank reports on Lebanon We call on policy makers to move forward… in order to avert the complete devastation of its social and economic networks The World Bank Lebanon’s challenges are deep and complex, and will require time and commitment Gerry Rice, IMF spokesperson Lebanon will need six to seven years to overcome the economic crisis President Michel Aoun Lebanese leaders do not have the right to punish the people by continuing to disagree António Guterres, UN Secretary-General We have to bear each other Prime Minister Najib Mikati The 2022 budget is an emergency budget Youssef Khalil, Minister of Finance The ball is in the World Bank’s court to ask the government to start negotiations to finance Egyptian gas and then…

Provided by Slight increase in Port of Beirut freight activity Freight activity at the Port of Beirut Port increased by almost two percent in 2021 to 4.6 million tons. The number of vessels dropped by 15 percent to 1,168. The handled containers had a total cargo capacity of 615 million TEUs (including transshipments) compared with 773 million TEUs in 2020. ▶ L0222-05 Balance of Payments deficit drops significantly The deficit in the Balance of Payments (BoP) narrowed by 81 percent to $2 billion in 2021 from $10.6 billion in the previous year, according to Central Bank (BDL) data. The deficit was the result of a $4.6 billion decrease in BDL’s net foreign assets and a $2.6 billion increase in the banks’ net foreign assets. The sharp drop in the deficit…

Six Five IMF reports on Lebanon Since the flare-up of the multiple crises, and even before that, a lot has been analyzed and written regarding the behavior, actions, and transgressions of actors in the fiscal and financial sectors. However, almost nothing has been mentioned on what the IMF had to say since 2011, the start of the economic decline. The IMF has been keeping a watchful eye on the regress of the economy, and the accompanying decay in trust, decline in the real value of the national currency, a shaky balance at the Central Bank, challenges to the banking system, the fiscal fiasco, and the totally irresponsible destructive governance at many levels of authority. Following each mission, dubbed Article IV Consultation, the IMF issued a comprehensive report assessing areas of…

▶ Links: Click this article’s entry in ‘Table of Contents’ on our website Private initiative to address vulnerabilities Vulnerabilities to cyberattacks are high amid lack of awareness and widespread carelessness but a private initiative and the forthcoming creation of a national Computer Emergency Response Team (CERT-LB) as envisaged in the government’s ‘Lebanon National Cyber Security Strategy’ are expected to strengthen the country’s information technology (IT) systems against cyberattacks. Amplified country risk Local IT systems are largely exposed to potential cyberattacks. An attack surface analysis of Lebanon’s national network perimeter (secured network boundary) carried out by Lebanon Cybersecurity Empowering Research Team (Lebanon CERT) in the second half of 2021 showed that 761 systems were vulnerable to cyberattacks. Around 50 percent of the vulnerable systems are hosted in Lebanon which further amplifies…

▶ Links: Click this article’s entry in ‘Table of Contents’ on our website Stimulating the private sector has become the most promising option to achieve economic recovery especially that foreign governments and international donor organizations have practically lost trust in those who are in charge of the public sector. Donors are betting on the private sector’s ability to act as catalyst to spur economic revival. For this reason they are intensifying different kinds of support to businesses in various sectors to help them face existing challenges and tap opportunities that still exist or that have paradoxically arisen because of the crisis, mainly exports and import substitution. Most of the donor assistance is coming from the United States and the European Union (EU). According to the ‘Aid Tracking Lebanon 2021’ report…

ACT Agri-Food & CleanTech Smart Innovation Hub Initiative (2021 – 2026) Program: The Netherlands Grants, technical COO Berytech and Leader of the ACT Initiative: Ramy Boujawdeh (04) 533.040 ext. 2112 ramy.boujawdeh@berytech.org https://berytech.org/programs/act-smart-innovationhub-initiative/ › Implementing partners: Berytech, The Issam Fares Institute for Public Policy and International Affairs of the American University of Beirut, ELCIM -The Euro-Lebanese Centre for Industrial Modernisation of the National Industrial Research Institute, Ecosystem Navigators, Wageningen University and Research, YES!Delft › Supporting partners: Arc en ciel, Cewas Middle East, IPT Energy Center, Fondation Diane, Lebanese Center for Energy Conservation, IM Capital, Rene Moawad Foundation › Community Partners: Association of Energy Engineers - Lebanon Chapter, AMWAJ, Clean Rivers Hub, Global Water Partnership An approach for economic growth that stimulates innovators and entrepreneurs to put their creativity and energy at…

Provided by CMA CGM wins concession of Beirut Port container terminal CMA Terminals, a fullyowned subsidiary of the CMA CGM Group, has won a bid to manage, operate and maintain the container terminal of the Port of Beirut (PoB) for a ten-year period starting in March 2022. It has a target to handle 1.4 million TEUs (Twenty-foot equivalent units). CMA CGM will earn $11 and LL285,000 for each TEU. The number of containers handled at PoB dropped from 1.3 million TEUs in 2018 to nearly 773,000 in 2020. Gulftainer was the competing bidder. Beirut Container Terminal Consortium (BCTC) was managing the terminal for the past 17 years. The CMA CGM Group currently handles almost 55 percent of the container terminal’s volume. It has nine weekly calls and transshipment operations at…

Khalil Daoud CEO of Fattal Former Chairman of the Board of Liban Post Khalil Daoud has jumped ship to become CEO of KFF (Khalil Fattal & Fils), one of the largest and most diversified wholesale traders in the country with a wide implementation in other countries. He replaces Hubert Fattal who was murdered a few weeks before. Daoud is the first leader of KFF from outside the founding family since its inception 120 years ago. His spent the last twenty years managing the country’s embattled postal service which had a controversial exclusivity agreement with the government. Daoud holds a bachelor’s degree in business from Saint Joseph University (USJ). Antoine Habib Chairman of Banque de L’Habitat Antoine Habib has been appointed as Chairman of Banque de L’Habitat (Housing Bank) for a…

The ongoing debate across the country shows that the financial gap at the Central Bank (BDL) exceeds $55 billion taking into account the value of gold and BDL’s foreign currencies. The discourse in this regard often includes a lot of blame for the banks, claiming that they are the ones that had voluntarily placed the surplus of their foreign currency deposits with BDL because they were lured by lucrative and high interest rates that BDL was allegedly paying. Obviously, this story, which has spread like wildfire, has obscured many facts for its simplicity, and has become the prevailing story. It is useful, even a duty, to elucidate the facts regarding these placements, away from a truncated view and to ward off slander. Subsidies eat up free reserves The banks’ placements…