Economic/Business News Briefs [Archive]

Hassoun

May 30th, 2006, 10:07 AM

Yes,Nadini,i don't know if this related to investment news.But here's the article.

Lebanon makes 'creditable' headway in war against pirated software

BEIRUT: Police raids on shops selling pirated software programs and games and a strong commitment by the government to crack down on intellectual property (IP) violations has helped Lebanon to reduce its international piracy rating in 2005.

According to a study by Business Software Alliance (BSA), the organization dedicated to promoting a safe and legal digital world, Lebanon has made strides over the last year in its efforts to bring down software piracy rate in the country and has dropped out of the list of 20 global nations with the highest piracy rates.

The independent study conducted by the International Data Corporation, the IT industry's leading global market research and forecasting firm, showed Lebanon's piracy rate to have declined from 75 percent in 2004 to 73 percent in 2005. Total losses incurred by Lebanon on account of software piracy in 2005 totaled $36 million.

Lebanon's piracy level is still way above the global average of 35 percent as well as the Middle East average of 57 percent. According to the BSA study, global losses from software piracy amounted to $34 billion in 2005, an increase of $1.6 billion over the previous year. The countries with the largest percentage point drop in piracy rate during the past year were Ukraine with six points, and China, Russia and Morocco with four points each.

Lebanon came under increasing pressure from the Western nations and UN bodies to stamp out copyright violations.

The World Trade Organization made it very clear to the Lebanese government that the country will not join the trade organization if it does not improve its copyright record.

Police have even raided shops in areas that once were considered off limits to the Lebanese authorities.

"We have gone to areas like the southern suburbs, a strong Hizbullah stronghold, and neighborhoods close to Palestinian refugee camps, Aly Harakeh, a spokesperson for the BSA, told The Daily Star.

"To achieve a two percentage point reduction even as the global piracy rate has remained unchanged is indeed creditable," said Harakeh.

"The drop in Lebanon's piracy level was a result of a government commitment to protect IP rights as well as a concerted effort with the industry to increase awareness and introduce special plans to reduce the cost of hardware and software acquisition for businesses and individuals."

He added that although the progress made has been impressive it is imperative local enforcement authorities maintain enforcement momentum and step up their campaign to protect IP rights, especially that all the elements are now in place with the creation of a special police unit to assist in the fight against intellectual property theft."

Robert Holleyman, BSA president and CEO, commented, "The progress made in reducing software piracy in several emerging markets is encouraging. However, more than one out of every three copies of PC software put into use in 2005 was still obtained illegally, meaning much more needs to be done to tackle software piracy around the world."

Tripolis

June 3rd, 2006, 12:24 AM

from hospitality.net (May 24, 2006)

...More visitors need more places to stay, and several building projects are underway. Iconic designer Philippe Starke has chosen Beirut as the site for his first hotel in the Middle East, while Campell Gray Hotels plan to open a boutique hotel in 2007. The same year will see a new Four Seasons open, along with Grand Hyatt and Solidere Rotana Suites.

and again from Deoartures.com (May-June 2006)

... Across the Mediterranean to Lebanon, where Gordon Campbell Gray—the man behind London's One Aldwych and Antigua's Carlisle Bay—has let the news slip about his next venture, a yet-unnamed spot in Beirut. It may be just what the former war zone needs to be taken seriously by discerning travelers in the mood for something a little, well, emerging?

on the website http://www.campbellgrayhotels.com/mainworks.htm
it seems that the beirut property will open spring 07. anybody has an idea where this will be located?

Hassoun

June 3rd, 2006, 12:46 AM

Siniora vows to create jobs by privatizing telecommunications

Premier Fouad Siniora said the government will pursue the liberalization of the telecom sector and develop IT in order to create more jobs. Speaking at a news conference at the Grand Serail to launch the HIGHLEB initiative aimed at providing framework for developing the technology sector in Lebanon, Siniora promised to establish the new regulatory body in two months. The body will supervise the privatization of telecommunications and electricity.

Privatization of telecommunications is seen as a key element in the five-year economic plan. But the political wrangling has torpedoed the government's attempts to sell the telecommunications sector, which generates over $1.3 billion for the government each year, to private companies.

Siniora said the government's plan was to privatize 40 percent of the telecommunications industry in the fist two years and then offer the remaining shares to the public.

He added the high-speed internet DSL will be introduced in the coming few weeks.

The prime minister also said that Lebanon hopes to persuade Arab satellite stations to base their operations here. - The Daily Star

Nadini

June 3rd, 2006, 08:38 PM

Paris of the Middle East rebuilds

Beirut is shaking off its war- torn past to recreate itself, writes Emma Levine

Saturday, June 03, 2006

Beirut is shaking off its war- torn past to recreate itself, writes Emma Levine

B eirut drivers have a dreadful reputation, even in the context of the Middle East. For every screech of wheels taking a corner too fast, there are a dozen cases of reckless lane swapping. Crossing the road is a visitor's main challenge.

I am introduced to highway code, Lebanon-style, while squeezed in the back of a taxi with two large women. From the chic designer-boutique area of Verdun, we weave a few kilometers northeast along the Corniche, the Mediterranean promenade, to the central district known as downtown.

The ride is a medley of contrasting sights: half-destroyed buildings, their walls peppered with huge bullet holes struggle to stay up; adjacent are their pristine neighbors, the sheen of newly built high-rise towers. Scattered around the area are numerous cranes and building sites. Palm trees fringe the roads in between.

Beirut as a holiday resort might not sound so appealing but this once- popular destination is desperately trying to shake off its war-battered image. A huge rebuilding project, one of the world's largest, has been transforming the city center, but officials and locals don't want tourists to have to wait the 20 years it's likely to complete.

The mood is buoyant, hefty investment by wealthy Lebanese expatriates indicates optimism for the future and the number of new hotels, shopping and dining areas is increasing. Beirut is definitely making a welcome return to the tourist map.

During its 1960s and 70s heyday, Lebanon's capital wore its "Paris of the Middle East" badge with pride, a prominent destination for the jet-set who descended on the stylish paradise of designer boutiques, cocktail bars, the famous Casino du Liban and the best in international cuisine. They loved the azure Mediterranean, the archaeological sites and the mountain resorts. The eclectic mix of people and cultures made it popular especially with residents of the Arab Gulf states, who flocked to this unique city in the midst of a conservative world, a cultural crossroads linking East and West, a mix of Christian, Sunni, Shia and Druze inhabitants. It also held a prominent position as the region's financial hub.

Then everything changed.

A lengthy and bloody civil war between 1975 and 1990 killed about 150,000 people, injuring many more. It fragmented the country and kept visitors away, bar foreign correspondents and United Nations peacekeepers. For residents, it was a living hell.

Beirut was divided along religious and ideological lines: East Beirut (taken over by Christian forces) and West Beirut (Muslim and Palestinian militia) was divided by the Green Line of demarcation, extending from Martyr's Square in the historic center, along Damascus Road to the south.

The Central District, once a mixed area, became the main combat zone. A quarter of the population fled the country during those years. The economic infrastructure was ruined, national output cut by half.

But for the few bullet-damaged buildings remaining, it's now hard to imagine the city's horrific history: The new streets of downtown with restored facades are awash with fashionable shops and street cafes.

A vibrant arts and fashion scene is flourishing; on warm evenings and weekends the Corniche is busy with promenading families and rollerblading teenagers; and there is a new energetic nightlife on the busy streets of Gemaysiyeh, a Lan Kwai Fong equivalent packed with restaurants and bars - more earthy than the jet-set days, but nonetheless a welcome part of life for the locals. Everywhere, construction cranes dot the horizon.

At the heart of the reconstruction is Solidere - the Lebanese company for the development of Beirut central district - which embarked on the mammoth project in 1995, on a site of about 1.2 million meters. It involved constructing pedestrianised streets, offices, residential areas and government buildings. But this isn't just any war- torn city - Beirut's center contains a plethora of sites and monuments spanning 5,000 years, with layers of civilizations spanning Canaanite to Ottoman, Phoenician, Persian, Hellenistic and Roman, among others.

"This is a very important area, because it is the geographic and historical heart of the Lebanese capital," explains the cheerful Nabil Rached from Solidere, showing me around the model of the area.

"We have always insisted on recreating this area in its spirit, as a vibrant city center with a mix of commerce, history, administration, residential and entertainment."

The company set out a definitive strategy to preserve Beirut's history, integrating archaeological discoveries with new urban design, high quality environment and infrastructure. The rebuilding of the souks, or markets, is a prime example: Completely destroyed during the war, they have been restored in the same form and location, designed by award-winning architects Rafael Moneo and Kevin Dash.

The ambitious redesign of the city's layout meant radical contemporary development, and also enabled its historical highlights, such as the Roman Baths, to have more prominence.

Several of these ancient sites will be linked for a walking tour, "taking in 5,000 years of history in 500 meters," as Rached describes it.

The other main tourist attraction will be a three-tier sea-front promenade, along the 700,000m of reclaimed land.

Even the new residential blocks being added, as well as the restoration of those badly damaged, are staying faithful to traditional architecture.

"The achievements are impressive. The focus has been on architecture and design but the greater challenge is to create an inclusive urban fabric. It is easier to rebuild roads and parks than it is to strengthen social cohesion and bring the city back together," urban sociologist Dr Katya Simons, a planning consultant with Solidere, said in Planners Network magazine.

Beirut now has the second-most expensive real estate in the Middle East North Africa region (after Kuwait) with office space in the downtown central district averaging US$380 (HK$2,965) per meter, effectively pricing first-time buyers out of the market. Protests about this have been glossed over, together with the despair of unemployment at an estimated 25 percent.

Yet there is undoubtedly a feeling of renewal and a fervent willingness to forget the past. According to Rached, the project is expected to create some 100,000 new jobs.

Politicians and entrepreneurs know the value of a healthy tourism industry and are desperate to get visitors back. Joseph Sarkis, Lebanon's minister for tourism, wants it to be the main player in the national economy, especially with no oil or mining industry to help pay back the huge national debt.

"Beirut was the Paris of the Middle East, and Lebanon was known as the Switzerland of the Middle East. These [the 1960s and 70s] were the golden days, where no tourism existed in the region apart from Lebanon. I remember the beautiful hotels, the celebrities and personalities ... we want people to come back now."

One market in particular has caught his eye.

"China is a special country and very important for us. We have just signed an executive agreement and will start creating our tourist offices over there."

It is only a matter of time, he says, before formalities will be minimized and Chinese visitors will be issued visas on entry to Lebanon, as are most other nationalities.

As Sarkis continues, it is almost possible to hear the cash registers ringing in his mind.

"Last year, 20 million people departed China as tourists. It is expected that in 2010, that figure will be around 80 to 100 million. They are now becoming rich people, business people, and we want to have a part of this market in Lebanon."

While the war ended 16 years ago, Beirut exists in a politically volatile area and the country has endured years of Syrian occupation.

In February, just when the country was getting back on its feet and tourists were returning, prime minister Rafik Hariri and several of his bodyguards were killed when a huge explosion destroyed his motorcade near the waterfront. A charismatic billionaire - and majority shareholder in Solidere - many believed the bomb destroyed Lebanon's best hope for the future. It was certainly a major setback to the country's progress and economic recovery. Hariri had served as prime minister for 10 years between 1992 and 2005, and was credited with securing the 1989 Ta'if peace accord which put an end to the war. Huge demonstrations were held in the city shortly after his death, demanding the withdrawal of Syrian troops.

Another, albeit minor, setback occurred in February when Muslim rioters protesting caricatures of the Prophet Mohammed printed in European newspapers set fire to the Danish Embassy in Beirut. The incident was passed off as unrepresentative of the country's politics but it fuelled a stereotype of unrest.

There is enough evidence of tourists avoiding the capital. The newly restored National Museum in Beirut, with exhibits ranging from Pharaonic tablets with hieroglyphics to huge fourth- century mosaics, remained empty on a Saturday afternoon, save for a small Japanese group. The astounding early 19th-century palace at Beit ed Dein, just outside Beirut, built in a mix of Arab and Italian baroque styles, likewise is relatively unvisited.

But the city must be viewed in context. When I comment to Georges Kahy, publisher of Touristica travel magazine, that it is a shame the local beach is full of litter, he laughs.

"During the war it was a rubbish dump nearly 50 feet [15 meters] high," he says. When the city was divided, residents on the west side had no access to the garbage treatment plant on the east, so piles of refuse grew and spilled over into the sea. Solidere has since cleaned up the area.

From her haute couture store in a small arcade in Verdun, housing many boutiques both Lebanese and foreign, Sylvia SURNAME? is delighted at Beirut's progress.

"Most of my customers are tourists from Arab countries. More and more of them are coming every year, which helps our economy," says the designer amid her bejeweled garments costing up to US$5,000. "I love Beirut and I'm proud to be Lebanese. We have to believe that it will be alright, that life can be good. War is over!"

Sylvia, like most Beirutis who lived through those dark days, prefers not to talk of the past and waxes lyrical about the country's assets.

"I would advise anyone just to come here and see for themselves - we have good weather, we have mountains and the sea."

Erik Vedsegaard, Danish-born general manager of the Four Points Sheraton, the newest of the luxury hotels in Beirut, is astounded at the city's development.

"The strangest thing about Lebanon is that it takes just a few months of peace and stability and people start investing again," Vedsegaard says.

"I don't know where this drive comes from. I think Europeans are much more conservative and unwilling to take risks. Maybe that's why Lebanon is so different from any other place."

A resident of the city for five years, he is aware of whatkeeps people away.

"I speak to my mother and she asks, `Are you safe?' That's the perception problem, but it is getting better all the time. Europeans who come here are really surprised to see how far Beirut has come and how safe it is."

I do find the city to be safe with no hint of aggression, despite an unnerving if incongruous abundance of armed soldiers and blockades on the streets.

Adds Vedsegaard: "I realized recently that in all the years I have lived here, I have never seen any drunkenness. You see the youngsters go out to bars and nightclubs, and they go out and enjoy every night."

Like most residents of Beirut, Vedsegaard acknowledges the enterprising nature of the Lebanese, especially the wealthy ones who left during the war and now want to return and invest in a glut of recently built hotels.

"When someone puts US$50 million or US$100 million into a hotel project, they have to be optimistic. People must believe in it. If we have peace within the country, and between the Israelis and the Palestinians, Lebanon will move forward."

It's easy to see the best of Lebanon because it is relatively small. It is possible in one hour by road from Beirut, for example, to visit the fabulous souks of Tripoli in the north and the rich expanse of cedar plantations in the Mt Lebanon range, now a protected area. The ancient ruins at Baalbakare just 85kilometers away. Several ski resorts provide the only winter sports facilities in the Middle East, with quality skiing possible until April. Come down from the slopes and it is still warm enough to have a dip in the Mediterranean.

A 20km drive north along the coast from Beirut is the ancient city of Byblos, its ancient ruins inhabited since Neolithic times. Here lies the answer to Lebanon's tourism wishes, says the Lebanese Peace Party's Roger Edde, a presidential candidate in next year's election.

"Don't mention Beirut - it is synonymous with civil war," Edde tells me sternly. We sit in his mansion, an elegant castle-like structure in the tiny town of Edde. Down the road is Edde Sands, a classy beach resort which he built two years ago to cater for visitors with money.

"Lebanon can re-emerge on the international travel scene as a country of peace and leisure, a country where people can get a real idea about what it is to be Western in an Eastern Mediterranean country," he says, settling into his chair and lighting a huge pipe. "I wanted to start something more cultural and less related to the war. Byblos has a 7,000 year-old history as well as a mix of Shi'ite, Sunni, Greek Orthodox and Armenian communities. There is a spirit of unity here and that is why we want to relaunch it as a tourist destination."

Edde also has his eyes on the exclusive Casino du Liban a few kilometers away. Once fully privatized, he wants to take the "old-fashioned European type of casino" and turn it into a resort- convention center and modern casino.

Back in Beirut I search for remnants of its old soul, ripped out when the city center was destroyed at the heights of its conflict. On the frontline of fire during the war, the boundary between east and west Beirut was the Hippodrome, a recreation and sports venue.

After many years of closure, the Sunday afternoon horseracing crowd is glad to return.

"I come here every week," 88-year old Issam tells me.

He studies the form and send his younger pal to queue and place another bet, for the minimum stake of 3,000 Lebanese pounds (about HK$15). It is easy to see that the standard was not high, of neither the race nor the track, but like the other local racing enthusiasts, he is "just happy to be back."

And it's easy to find the popular entertainment areas, like Monot St, an otherwise unassuming thoroughfare lined with bars and restaurants, or Gemmayzeh near the port, with its clubs that stay open till the small hours.

Then, on Sunday evenings the Corniche comes alive, not only with those visiting the famous Rouche Rocks just off the coast. Headscarfed old women bring plastic chairs and brew tea on tiny stoves; men and women of all ages puff on argiles (water pipe) and watch the world go by; teenagers practice rollerblading acrobatics and leap makeshift hurdles; and breakdancing buskers gather a crowd while their stereos blast out a beat.

There's no need to worry about bombs - just be careful how you cross the road.

Beiruti

June 3rd, 2006, 09:42 PM

Oman-Lebanon business forum to begin today

By Our Special Correspondent

MUSCAT — A two-day Omani-Lebanese business forum will open here at Shangri-La Barr Al Jissah Resort today. His Highness Sayyid Haitham bin Tariq Al Said, minister of heritage and culture, will preside over the forum. Sheikh Saad Al Dine Rafiq Hariri, president of Future Parliamentary bloc, Lebanese parliament, will be the guest of honour.

Beirut-based Confex International is organising the forum, in association with the Ministry of Commerce and Industry and Oman Chamber of Commerce and Industry.

The two-day (June 3-4) forum will be an ideal platform for the Omani and Lebanese businessmen to explore business opportunities in two countries. The forum will host a series of roundtables, including high- profile speakers and participants from Lebanon and Oman, to discuss and exchange views on mutual cooperation. It will help businessmen explore opportunities in both countries. More than 200 businessmen from the financial, investment, tourism, trade and investment will attend the forum

Lebanese Cedar

June 3rd, 2006, 10:01 PM

on the website http://www.campbellgrayhotels.com/mainworks.htm
it seems that the beirut property will open spring 07. anybody has an idea where this will be located?

This is it, it's under construction right now.
http://www.hanimuradgroup.com/achievements/images/bcd.jpg

Beiruti

June 7th, 2006, 10:09 PM

Intel takes education initiative to Lebanon

Intel Corporation has signed a memorandum of understanding (MOU) with the Lebanese Ministry of Education and the Hariri Foundation to develop its worldwide Intel Teach to the Future program in Lebanon.

The three-year program, part of the Intel Education initiative, aims to train 10,000 in-service teachers to enable them to develop higher level thinking skills and enhanced learning in their students through the integration of technology into day-to-day lessons.

Nadini

June 7th, 2006, 10:30 PM

Heavy investment in Beirut real estate defies tensions
Buyers bet on property boom

By Daniella Matar
Special to The Daily Star
Thursday, June 08, 2006

BEIRUT: Lebanese and Arab companies are investing billions of dollars in the real estate sector in Beirut and other areas, reflecting greater confidence in the country despite the assassination of former Premier Rafik Hariri in February 2005. Participants in a major construction and contracting exhibition all agreed that Lebanon was a good place to make investments although the country was relatively small in size.

Held under the patronage of Premier Fouad Siniora, the 12th edition of Project Lebanon was inaugurated by Mohammad al-Sadafi Tuesday at Biel. It is expected to attract over 20,000 visitors this year.

Certified by the UFI (Global Association of the Exhibition Industry), Project Lebanon has become the annual rendezvous for hundreds of local, regional and International firms to meet and do business with thousands of industry professionals from Lebanon and the region.

"Seventy percent of the participants are Lebanese," explained Camille Geha, the Resident manager of IFP Lebanon. "The other 30 percent are from all over the world. There are country pavilions from Germany, Belgium, Cyprus, Italy and Turkey." There are also exhibitors from the UAE, Greece, Poland, Holland, Luxembourg, India, Bangladesh, Kuwait, Jordan and Egypt. Lebanon is hosting a record participation of its own at Project Lebanon 2006, with hundreds of Lebanese manufacturers and traders presenting new technologies and the latest in building products and equipment.

The fair this year is one of the most impressive to date. "The obvious importance of the fair is in line with all the building projects that are currently happening in Lebanon" said Geha. "$1 billion worth of projects are being executed in Beirut alone - projects such as hotels, shopping malls, infrastructure. In the whole of Lebanon $5 billion worth of projects are being executed now. Furthermore the council of development has announced that over the next 10 years $11 billion has been assigned to future projects."

"Last year was catastrophic because of the situation" said De-Concrete, one of the exhibitors. "The fair is usually good for business though. Lebanon is a small country but this is a huge exhibition which has a very good reputation in construction circles. The construction business is definitely better now after last year."
http://www.dailystar.com.lb

Another exhibitor agreed, adding that he believed the construction business was still being affected. "Lots of Arabs from the Gulf are coming to Lebanon and having villas built. So there are projects on the one hand but then on the other hand there's also a reluctance to invest because of the political situation. Which is a pity."

"Last year we had to delay the project by three months" said Geha. "This year participation is much higher - about 20 percent higher - and we gained a lot of exhibitors on a last-minute basis after the announcement that many projects had been signed three months ago."

"You only have to drive through Downtown and look at the sheer amount of cranes. You can see how much growth there is in construction. In fact that's why we chose the crane to be the logo for Project Lebanon 2006," he added.

However, there is still much to be developed, with high hopes for Lebanon's coast.

"A law was recently voted to fix all the problems with illegal construction on the seafront," said Geha. "During the war people constructed properties on the beach without proper licenses. Now the law enables them to pay taxes in order for them to continue living there. People were afraid for a long time but we hope this will encourage a lot of seafront development."

With over 220 kilometers of coastline there is a lot of scope for this and Lebanon can certainly expect a lot of projects to be launched.

Evidence suggests that the construction industry will continue to flourish. "There is a major future in construction" said Geha. "People need to drive in Beirut and I think this needs work on bridges, roads and infrastructure in general. The big boom will continue in construction."

Jayme

June 8th, 2006, 01:16 PM

whoooooooooo lots of investment ! thire any Invnestment for there EDL ( close it down) get AGL to give Lebanon power l

Hassoun

June 10th, 2006, 11:35 PM

MIT gathering believes in hi-tech Lebanon
Measures include call centers, arabization of software
-------------------------------------------------------------------
Turning Lebanon into a regional IT and software hub can be achieved if proper decisions were taken by the government. This conclusion came after two days of deliberations and discussions during the first international conference on technology development in Lebanon (TECHLEB/06) (www.techlebconference.com) held at the Massachusetts Institute of Technology (MIT) in the United States in May of this year.

A group of Lebanese expatriates studying and working in the US succeeded in gathering business leaders, decision makers and economic development experts to address the potential of the technology sector in Lebanon and lay the ground work for a road map of development strategies and initiatives.

Speakers and participants at the conference proposed a number of measures such as developing infrastructures, setting regulatory frameworks, improving market access and mobilizing financial resources

"Lebanon has a great potential for becoming a vibrant and sustainable technology hub in the Middle East and North Africa region," the conference chair Loai Naamani told The Daily Star on a visit to Lebanon.

The conference came up with a concrete set of recommendations not only for the government but also for the private sector, academia, the media, expatriates and civil society, according to Naamani, who is pursuing his doctorate at MIT.

Beyond recommendations, the conference's planning committee has started setting into motion specialized working groups and task forces to identify gaps, specify areas where achievements could be made, and coordinate efforts with the various stakeholders.

One of these initiatives, the OpenMarket Working Group, "will help Lebanese entrepreneurs access the global market by introducing them to strategic US customers," Naamani said. The group already includes top executives from leading companies, namely, IBM, Microsoft, RedLine Communications and Vernier Networks.

The conference also showcased success stories of hi-tech ventures in Lebanon and abroad and featured international experts to talk about models of technology-driven economic development in countries like Ireland, India, and Eastern Europe, Naamani said.

One of the key speakers according to Naamani was John Cullinane, founder of the first successful software products company, who pointed out why Lebanon has to invest in the area of "smart" call centers as Ireland did in the past. Cullinane gave as an example specialized call centers which act as help and support desks for nurses.

Naamani sees this is an area that doesn't need much in the way of financial resources and where Lebanon's multi-lingual skilled human capital is very much needed.

"I believe call centers would create job opportunities exponentially," he said. He added that such an initiative would attract multinationals servicing this area as well as local companies which are realizing the importance of outsourcing their call centers.

Other areas where Lebanon could be leading include the Arabization of software and computer games that are politically and socially relevant to the region.

So far, the response of the Lebanese government has been very positive. Telecommunications Minister Marwan Hamade also promised to set up a call-center unit under his supervision and will issue, within weeks, a decree that would legalize voice-over Internet protocol technology, which is today the main cost barrier for the establishment of call centers in Lebanon, Naamani said.

Furthermore, Prime Minister Fouad Siniora announced last week the establishment of a unit for the development of the technology sector grouping representatives from several ministries, the private sector and civil society.

For Naamani, the government should assume the role of "an industry facilitator and promoter" by developing the legal and technical infrastructure while "staying in the back seat during the ride."

He stressed, however, the importance of fighting corruption, promoting good governance principles and ensuring political stability as essential prerequisites for technology development in Lebanon.

Another project Naamani and his group are working on currently is bringing Endeavor, a leading nonprofit organization that fosters private-sector development, to work in Lebanon. Endeavor works in Latin America, South Africa and Turkey to stimulate and support high-impact entrepreneurship in emerging markets.

Hassoun

June 11th, 2006, 04:13 AM

إحصاء أولي للنشاط العقاري الخليجي في لبنان
الكويت تحتل المرتبة الأولى في الاستثمارات
والإقبال الخليجي ضاعف قيمة العقارات المبنية
-------------------------------------------------------------------------
يؤكد الخليجيون، خصوصا مواطني دول مجلس التعاون الخليجي ( السعودية، الكويت، الامارات، قطر، البحرين، وسلطنة عمان) ان لبنان هو بلدهم الثاني، وهم لا يتوانوا على الرغم من كل الاحداث الدراماتيكية التي مرت في هذا البلد الصغير من وضع ثقتهم عبر الاستثمار العقاري اولا، وغير العقاري ثانيا.
وفي تقرير اعدته شركة العقارية "كونتوار الامانة"ان نسبة استثمار الخليجيين تأتي بالمرتبة الثانية بعد استثمارات ابناء البلد المقيمين والمغتربين وبلغت هذه النسبة نحو 40% من الاستثمار العقاري العام بقيمة 3.5 مليارات دولار اميركي.
واحتلت دولة الكويت المرتبة الاولى من حيث الاستثمارات الخليجية في لبنان حيث بلغت قيمة استثماراتها نحو مليارو700 مليون دولار بعد الاعلان عن القرية الفينيقية لشركة "ليفانت القابضة" التي بدأت الاكتتاب في الشركة الشهر الماضي . ويتميز المشروع بضخامته، إذ تبلغ مساحته المبنية 205770 متراً مربعاً ويضم ستة ابراج سكنية وتجارية وسياحية. ويبلغ حجم الاستثمار في هذا المشروع 1.3 مليار دولار. فضلا عن مشروع لبناني ـ كويتي سينشأ في السنوات القليلة المقبلة قبالة ساحة رياض الصلح يطلق عليه اسم "لاند مارك" تقدر تكلفته بـ270 مليون دولار اميركي، ويقوم على مساحة 77080 متراً، وتبلغ مساحته المبنية 149 الف مترمربع، ويتألف من برج ومبنيين تابعين، مساحة الطبقة الواحدة 1024مترا مربعا.
ـ مشروع مجمع قصور الساير في منطقة بتاتر ـ عاليه في جبل لبنان وهي كناية عن 12 قصرا اي مدينة قصور، ويبلغ استثمارها اكثر من 100مليون دولار، وفندق "السفير هليوبوليتان "في منطقتي الروشة وبحمدون باستثمار جاوز 35 مليون دولار اميركي، ومجموع الفلل والقصور في مناطق عاليه، بحمدون، بعلشميه، صوفر وحمانا والشبانية.
وعلى صعيد الاستثمارات الاماراتية التي احتلت المرتبة الثانية فقد جاءت على النحو الآتي:
مشروع بوابة بيروت الذي يتولاه بيت أبو ظبي للاستثمار على ثماني قطع أرض تبلغ مساحتها 21447 مترا مربعا. وتقدر تكلفة المشروع بنحو 660 مليون دولار، وهو يتوزع على البناء السكني والتجاري والسياحي. ومن المتوقع ان يتم إنجازه على مراحل ليكتمل نهائيا في العام 2014، فضلا عن مشروع بنك دبي الاسلامي، الذي اشترى عدة عقارات ضمن سوليدير الاول لبناء برجين سكنيين مشرفين على المارينا، والثاني سيقام عليه مشروع سكني، ويخطط البنك لمشاريع مستقبلية في منطقة " ردم ـ سوليدير"، بقيمة استثمارية تبلغ 200 مليون دولار.
وسجل الاستثمار الاماراتي فاتحة الاستثمارات الخليجية من خلال فندقي "حبتورميتروبوليتان" و"ميتروبوليتان بالاس" و"حبتورغراند " ، بل تعداها إلى المجمعات السياحية الترفيهية كـ "المتروبوليتان بارك" التابعة لمجموعة الحبتور الاماراتية ايضا، او مدينة الملاهي الضخمة في منطقة سن الفيل وحارة الست في جبل لبنان، فضلا عن "حبتور فيليدج" في في منطقة اليرزة، وتقدر قيمة استثماراتها جميعا 500 مليون دولار اميركي.
اما الاستثمار السعودي فيتبين من بعض الاحصاءات انه يتركز على الاستثمار في القطاع العقار السياحي والشقق الفخمة والقصور. ويعد الامير الوليد بن طلال من خلال مجموعة القابضة المستثمر السعودي الاول وله: "فورزيزنس "في وسط بيروت باستثمار بلغ 35 مليون دولار اميركي، ويعد فندق فور سيزنس اضافة نوعية مميزة للسياحة في لبنان لفخامته وتصنيفه من الفنادق الاولى، التي تشاد في لبنان بهذا الحجم والضخامة والاستثمار. وهي ويقع الفندق على العقار رقم 8141 في منطقة ميناء الحصن العقارية ـ وسط بيروت التجاري. وتبلغ مساحته في منطقة المارينا التابعة ل"سوليدير" 21405 أمتار مربع. وأُعلِن عن بدء تنفيذ اعمال المشروع في ايار 2004 وتستغرق ثلاثين شهراً، وكانت رست اعمال البناء على شركة محمد عبد المحسن الخرافي واولاده ( كويتية) ويتوقع انتهاء اعمال الانشاء نهاية عام 2006الجاري. هذا بالاضافة الى فندق الموفنبيك (25 مليون دولار) ومجموعة فنادق جفينور روتانا وغراند هيلز في برمانا وثلاثة فنادق فئة اربع نجوم وفندق واحد من فئة ثلاثة نجوم.وتبلغ قيمة استثماراتها الاجمالية 200 مليون دولار اميركي.
وجديد الاستثمار القطري جاء من خلال شراء عقار الارض لامير دولة قطر الشيخ حمد من خليفة آل ثاني في منطقة النعص* ضهر الصوان التابعة لمنطقة جبل لبنان، وتقدر بحوالي 90 الف متر مربع. وكان "بيت التمويل العربي" الذي افتتح فرعا له في بيروت وهو أول مصرف إسلامي في لبنان بمساهمة مجموعة من كبار المستثمرين القطريين. ويملك مصرف قطر الإسلامي أكبر حصة في البنك الجديد، وفق تصريح خالد السويدي رئيس مجلس إدارة المصرف الذي يتخذ من الدوحة مقرا. وتملك المصرفين شركة بيت التمويل العربي القابضة برأسمال سيرتفع إلى 100 مليون دولار في غضون ثلاث سنوات منها 60 مليون دولار مدفوعة حاليا كاملة. اما على الصعيد العقاري والسياحي، فإن مساهمة القطريين تتركز في الشقق الفخمة والقصور.
هذا فضلا عن استثمار لشركة "كابكو" القطرية لبناء مصفاة تكرير من المقرر ان تكون في منطقة طرابلس بتلكفة تجاوز المليار دولار.
وتشهد منطقتا بيروت وجبل لبنان إقبالا كبيرا لمواطني سلطنة عمان على الشقق الفخمة حيث لا يقل سعر الشقة عن مليون دولار اميركي.
ويؤكد خبراء اقتصاديون أن الاقبال الخليجي في سوق العقارات اللبنانية يعود الى العام 2001، لاعتبارات عدة اهمها احداث 11ايلول وما رافقها من تداعيات. فضلا عن الطفرة النفطية واستثمار مردودها في القطاع العقاري العربي ومنه لبنان.
وذكر الخبراء أن الاستثمار الخليجي في قطاع العقار اللبناني ليس وليد اليوم أو السنوات القليلة الماضية، بل أن تملك الخليجين يمكن وصفه بالامتداد التاريخي، لكنه شهد تكثيفا خلال الفترة القليلة الماضية.
وأضاف أن السوق تشهد نموا على أكثر من صعيد منها الفنادق والمجمعات التجارية والشقق الفاخرة التي يقبل عليها الخليجيون وذوو المداخيل المرتفعة من اللبنانيين المقيمين بالداخل أو الخارج، مشيرا إلى أن مشاريع قد تم تخطيطها وتشييدها مستهدفة هذه الفئات، وتوقع أن يستمر الانتعاش خلال عامي 2006 و2007 تدعمه توقعات نمو الاقتصاد بمعدل 3* 4 % وزيادة الودائع المصرفية بنسب تتراوح 13% سيما وان حجم الاراضي اللبنانية المبنية في لبنان ككل لا تتجاوز 30% من مساحة البلد البالغة 10452 . كلم2.
ومن جهته قال الخبير الاقتصادي وديع كنعان ل "المستقبل" إن معدل النمو في السوق يقدر بما يتراوح بين 35% و50% خلال العام الماضي، وأن المعد ل سيكون أكبر خلال العام الجاري بعد ثبات نسبي خلال عامي 2001 و 2006، بفعل زيادة الاستثمارات الخليجية واستثمارات اللبنانيين الذين لديهم مدخرات، لكن لديهم مخاوف في الوقت نفسه من حالة عدم الاستقرار النقدي والمالي.
وبمراجعة البيوعات الاخيرة في "سوليدير" يتبين ان التركيز الخليجي هو على العقارات الكبيرة والبلوكات .بالإضافة إلى وجود عدد من الـ"بنتهاوس" فجميع هذه الأبراج تتراوح مساحتها ما بين 1200 و1700 متر مربع تشتمل على حديقة وحوض سباحة، وأ ن معظم هذه الوحدات قد تم بيعها بالفعل.
واللافت أن تألق العقار الخليجي، يتزامن مع حركة سياحية ناشطة، حيث سجل عدد الوافدين الى لبنان خلال الفصل الثاني من العام الحالي، على سبيل المثال، زيادة بلغت نسبتها 5.30 في المئة، كما تزامن مع تعزيز السياحة الشتوية (التزلج). والسياحة التراثية، والسياحة الدينية والسياحة البيئية، والسياحة الصحية والسياحة الترفيهية، (مهرجانات تسويقية وفنية ورياضية) واعادة تأهيل شارع الحمراء الذي كان قبل الحرب قلب العاصمة النابض، واعادة ترتيب منطقة الروشة لتستعيد جاذبيتها السياحية الراقية.

Beiruti

June 14th, 2006, 08:51 PM

Lebanon receives €731m ($928.4m) in FDI in 2005 - 6/10/2006

The Agence Française pour les Investissements Internationaux (AFII) published a report on the Foreign Direct Investments (FDI) to the MEDA (EUMediterranean partnership) countries in 2005.

The report stated that Lebanon’s political instability in 2005 after the assassination of former Prime Minister Rafik Hariri and the country’s high public debt caused a weak 1% year-on-year growth in FDIs by value. Lebanon thus attracted 26 projects in 2005 for a total value of €731m ($928.4m), up from 18 in 2004 for a total value of €724m ($919.5m). France and Kuwait each contributed by 4 projects, followed by the UAE, US and Saudi Arabia with 3 projects each. The tourism sector attracted most FDIs with 10 projects (40% of the total).

Phoenician Empire

June 18th, 2006, 12:54 AM

Lebanon booms against all odds

--------------------------------------------------------------------------------
Published on: Sunday, 18th June, 2006 | Permanent Link | no responses

Despite Lebanon’s deep economic and political crises, an unprecedented property boom has turned Beirut into a giant building site. And it’s been spurred by the appetite of developers, expatriates and GCC Arabs. Bulldozers and giant cranes have invaded the capital, where any vacant lot or damaged building triggers fierce battles among property developers, who are mostly building residential apartments too expensive for the average citizen.

The boom started last year despite dramatic events that shook the country, and which turned on the assassination of former premier Rafiq Hariri, with property prices soaring an average of 50 per cent. Beirut has witnessed a major face-lift with the new construction boom, mostly in the once war-ravaged downtown area, being rebuilt by the private company Solidere, which runs properties valued at about five billion dollars.

New residential high-rises financed by Lebanese and Gulf investors now tower over the marina near the seafront road where Hariri was killed in a massive car bombing in February 2005. "Very often, when the first picks strike the ground at the construction sites, between 75 and 80 per cent of these projects are already sold to rich Lebanese or Arab nationals," Raja Makarem, manager of Ramco realty says.

Victor Najarian, director general of CARE realty, said "we are managing about 15 projects worth a total value of one billion dollars, and we hope to double that amount within a year." Along the downtown seafront area, apartments run at between 600 and 1,000 square metres and sell at $5,000-$6,000 per square metre. About 60 per cent of the apartments sold in the area have been bought by GCC nationals and the rest mostly by wealthy Lebanese.

Apartments in the downtown area sell at $3,400-$4,500 per square metre. "And Lebanon can still expect more, as it has great potential in the five years to come," Najarian said. He noted that five luxury hotels and a dozen large projects were underway along the seafront, where about 30 more projects are due to be launched.

Solidere sold land worth a total of $1.1 billion in the first quarter of 2006, five times more than in all of last year, Makarem said. The latest Ramco report said "Gulf investors may have propped up Lebanon’s balance of payments with more than one billion dollars during 2005 alone. Additional spending on construction and furnishing could more than double that amount." Gross foreign capital inflow reached $3.9 billion in the first four months of this year, increasing the balance of payments surplus to $1.4 dollars, said the Central Bank of Lebanon.

Looks like the unlikely boom will surge on regardless.

source: http://www.7days.ae/2006/06/18/lebanon-booms-against-all-odds.html
http://www.gulf-daily-news.com/Story.asp?Article=146530&Sn=BUSI&IssueID=29090

Bahraini Spirit

June 18th, 2006, 05:39 AM

Hey fellas, well am sure you already know that we love you down here in the gulf. Anyways, lemme cut it short and you'll understand:

Property sector is booming in Beirut

http://gulf-daily-news.com/source/xxix/090/images/31leb.jpg

BEIRUT: Despite Lebanon's deep economic and political crises, an unprecedented property boom has turned Beirut into a giant building site, spurred by the appetite of developers, expatriates and Gulf Arabs. Bulldozers and giant cranes have invaded the capital, where any vacant lot or damaged building triggers fierce battles among property developers, who are mostly building residential apartments too expensive for the average citizen.

The boom started last year despite dramatic events that shook the country, and which turned on the assassination of former premier Rafiq Hariri, with property prices soaring an average of 50 per cent.

Beirut has witnessed a major face-lift with the new construction boom, mostly in the once war-ravaged downtown area being rebuilt by the private company Solidere, which runs properties valued at about $5 billion.

Brand new residential high-rises financed by Lebanese and Gulf investors now tower over the marina near the seafront road where Hariri was killed in a massive car bombing in February 2005.

"Very often, when the first picks strike the ground at the construction sites, between 75 and 80pc of these projects are already sold to rich Lebanese or Arab nationals," Raja Makarem, manager of Ramco realty, said.

Victor Najarian, director general of CARE realty, said "we are managing about 15 projects worth a total value of $1bn and we hope to double that amount within a year."

Along the downtown seafront area, apartments run at between 600 and 1,000 square metres and sell at $5,000-6,000 per square metre.

Relatively smaller apartments in the downtown area sell at $3,400-4,500 per square metre.

"And Lebanon can still expect more, as it has great potential in the five years to come," Najarian said. He noted that five luxury hotels and a dozen large projects were underway along the seafront, where about 30 more projects are due to be launched.

Solidere sold land worth a total of $1.1bn in the first quarter of 2006, five times more than in all of last year, Makarem said.

The latest Ramco report said "Gulf investors may have propped up Lebanon's balance of payments with more than $1bn during 2005 alone. Gross foreign capital inflow reached $3.9bn in the first four months of this year, increasing the balance of payments surplus to $1.4bn, according to figures from the Central Bank of Lebanon.

Beiruti

June 22nd, 2006, 09:58 AM

US Department of Commerce says Lebanon has favorable investment and business environments

6/18/2006

The United States Department of Commerce’s 2006 Country Commercial Guide for Lebanon (CCG) highlighted the country’s favorable investment climate and its liberal economic system.

It cited the absence of controls on the movement of capital and foreign exchange, a highly educated labor force, a dollarized economy, limited restrictions on investors, and the quality of life as factors that have encouraged a number of foreign companies to set up offices in Lebanon in recent years. Also, there are no delays in remitting investment returns except for the normal time required by the banks to carry out transactions.
The CCG said Lebanon has the fundamental building blocks needed to become a regional center for technology including a highly educated and multilingual workforce, a strong private sector, world-class advertising firms, and multilingual media content providers and web portals.

Further, Lebanon is an ideal location for establishing a regional office to cover the Levant region, including Iraq. The Lebanese market has been used as a platform for testing U.S. technology prior to introducing it to the rest of the Levant market, and opportunities exist to form partnerships with local ICT companies, especially in areas such as software and telecom solutions for small and medium-sized Lebanese companies, and medical and healthcare sectors. The guide indicated that over 160 offices representing U.S. businesses currently operate in Lebanon and a number of large U.S. firms have local branches or regional offices such as Microsoft, Cisco Systems, Intel, Procter & Gamble, American Airlines, United Airlines, FedEx, General Electric, Parsons Brinckerhoff, Eli Lilly, and Pfizer. Further, franchising has become one of the fastest-growing business sectors in the country with the presence of numerous U.S. fast food chains such as McDonald’s, Starbucks, Pizza Hut, Kentucky Fried Chicken, Baskin Robbins, Hardees as well as several other non food franchises such as Hertz Car Rental and Florsheim Shoes.

Franchised hotels are also witnessing spectacular growth in the country, with many local hotels partnering with international chains, to the benefit of local proprietors who can take advantage of the chains’ name recognition and international reservation networks. Several chains are already managing hotels in Lebanon such as Movenpick, Crowne Plaza, Inter-continental, Holiday Inn, Marriott, and Sheraton.

It also noted that Lebanon has become a regional center for the advertising industry despite stiff competition from Arab Gulf states, as it enjoys a sophisticated domestic audience and a thriving media sector.

Jayme

June 22nd, 2006, 01:32 PM

International investors have been urged to take advantage of the many opportunities emerging in Lebanon’s growing economy.

The raft of new investments in Lebanon launched under the incentive schemes provided by Investment Development Authority of Lebanon (IDAL) reflect the strength of the Lebanese economy and the increasing trust placed by investors in the country’s promising economic environment, said Nabil Itani, chairman and general manager of IDAL.

He said successful execution of important IDAL-supported projects will catalyse increased presence from business owners, multinational companies and investors.

Itani’s statement followed a recent press trip organised by IDAL to showcase some of the projects benefiting from Investment Development Law 360, brought to force in end 2003 to stimulate investment in Lebanon.

“The current regional economic boom, driven by factors such as high oil prices and a strong real estate sector, is resulting in investor-friendly conditions that form a critical phase for furthering Lebanon’s economic prosperity. We must take full advantage of current economic progression by making greater efforts to attract Arab investment to all sectors of the Lebanese economy by showcasing the prosperity and stability of the country and highlighting the competitive nature of sectors such as tourism, manufacturing, agriculture, information technology and communications; all of which boast innumerable high worth investment opportunities,” said Itani.

Lebanon’s tourism sector has witnessed significant growth in recent times and still holds many opportunities for investors. Hand in hand, the hospitality industry is expanding to cater to higher tourist influx, and has thrown up many high return investment options in the areas of conference tourism, medical tourism and environmental tourism, said Itani.

The industrial sector is also witnessing progress, driven by new opportunities particularly for sectors with high export rates, such as jewellery, equipment, food, chemicals, cement and printing products.

“ICT is a key target sector for us as it plays a vital role in uplifting other economic activities, particularly as Lebanon makes strong advances in software development. Opportunities for investment include call centres, internet centres, commercial e-trade networks, shared media and education centres, remote education and telemedicine,” he said. -TradeArabia News Service

Jayme

June 24th, 2006, 08:38 AM

BEIRUT: Lately it seems there are more cranes than buildings rising from Beirut's skyline, and Gulf investors continue to funnel oil revenues into mega-construction projects in the Beirut Central District (BCD). So far the majority of investment has been concentrated on high-end tourist, residential, and office spaces with price tags well out of reach for most Lebanese, prompting some to question whether the real-estate boom will eventually trickle outside of the BCD and lead to the development of more affordable housing options.

From 2004 to 2005, Beirut accounted for 37 percent of the total value of land sales transactions, with 27 percent concentrated in Baabda, Aley, and Chouf, and 14 percent in Metn.

The general manager of Infopro Research, Imad Bashour, argues that as Solidere becomes saturated and Gross Domestic Product rises in line with future projections, there will be an outward push of local buyers which will spur the regeneration of lower-profile, less developed neighborhoods, such as Abadieh, Adma, Aley, Awkar, Hazmieh-Baabda, Beit Mery and Rabieh.

Based on the results of an Infopro survey of future residential real-estate trends in Lebanon, Bashour forecasts the growth of smaller, mid-range apartments outside of Beirut and larger, luxury units in BCD between 2006 and 2010.

"It's a basic supply and demand issue, as supply becomes limited you have to delegate more," said Imad Bashour at a panel on local real-estate investment opportunities Thursday, the second day of the Lebanon Opportunities Conference organized by Lebanon Opportunities magazine.

"If there is a limited capacity and increase in price in Beirut, this will push development to outlying areas. The market will react differently depending on the location of the boom."

Many experts attribute the large demand for properties to the excess of cash in the rich oil countries which are looking for sound investments in the region, Europe and Asia.

Many brokers say property prices in Beirut have more than tripled in the past three years.

Currently the majority of apartments in Lebanon are two- and three-bedroom residences. Only 1 percent of units in Beirut and Aley are one-bedroom, and there are almost none in Baabda. As demand for single occupancy and smaller apartments in the 100-250 square meter range rises from people with lower purchasing power than those who buy in Beirut - namely young people who want to move away from home and middle-class families - more affordable units will come onto the market.
http://www.dailystar.com.lb

But while the supply of property in the BCD is limited - the company is allotted 4.69 million square meters of built-up area-and demand is progressively rising along with prices - so far only 1 million square meters of built-up area has been recuperated and 1 million sold to third-party developers to be built on.

Solidere general manager, Mounir Douaidy told The Daily Star the occupancy rate for retail and commercial space is about 98 percent, and all completed apartments sold or leased.

Though no official statistics are available, Douaidy said there was significant local demand for residential property in BCD. Most Saifi Village occupants are Lebanese and in areas such as Minet al-Hosn, there is an equal distribution of local and foreign residents.

The sale price for per 1 square meter of built up area has risen by almost 70 percent over the past 11 years. In 1995 the price was $950, and Douaidy says from 2006 onward it will not fall below $1,600 per square meter.

Since demand for residential and commercial space shows no signs of ebbing and is sure to rise for retail property with the completion of the Souks of Beirut project - part of the 100,000 square meters of additional space has already been reserved and the remainder will be leased by a variety of retailers. Some analysts have questioned whether the real-estate boom is in fact a bubble. But Douaidy shrugs off this notion.

"What's happening in the Gulf is a bubble, but what's happening in Solidere is steady growth," he said.

"Solidere is a controlled development, meaning we can control both quality of work and supply on the market."

lebgurl

June 24th, 2006, 11:28 PM

^^ thank god!!! housing prices are ridiculous in beirut!!! maybe this will encourage some lebanese to buy in the area instead of being driven out!

Jayme

June 26th, 2006, 02:29 PM

A cost of living survey has ranked Beirut 32nd among the world's most expensive cities and gave first place to Moscow.
Mercer Human Resource Consulting examined 144 cities across six continents where it measured the comparative cost of over 200 items and services including housing, transportation, food, clothing, household goods and entertainment.

In the 2005 survey Beirut was ranked 52nd with a score of 84.6 while it had an index of 85.4 in the 2006 study. The surveys usually take New York as the base city with 100 points.

The company said in a press release that Moscow replaced Tokyo as the world's most expensive city with Seoul knocking Japan's leading city to third place. Joining them in the top five are Hong Kong and London.

Asuncion in Paraguay remained the least expensive city with an index of 43.5 while Moscow scored 123.9 and is nearly three times costlier than Asuncion.

Beiruti

June 29th, 2006, 03:06 AM

BIEL real-estate expo targets GCC investors

By Meris Lutz
Special to The Daily Star

Thursday, June 29, 2006

BEIRUT: The annual Dream Development and Real Estate meeting combined with the Banks and Insurance exposition opened at BIEL Wednesday, offering a wide base of developmental industries to potential investors and individual buyers.

Tourism Minister Joseph Sarkis presided over the opening ceremony, welcoming over 40 banks, insurance and real estate firms, and media outlets from across the region. The turnout was light, but most of the miniature apartment complexes and super-malls on display were not geared toward the average Lebanese.

Ramy al-Zein, a marketing representative for Dubai Islamic Bank subsidiary Deyaar Properties, said the UAE-based developer has been investing in high-end residential properties in Lebanon in response to high demand among Gulf nationals.

"A lot of GCC [Gulf Cooperation Council] nationals have taken Lebanon as a second home, some of our clients spend at least nine months here," Zein said.

Deyaar is currently building two exclusive villa compounds in the mountains and another upscale apartment complex in Saifi village.

"Because of prices and the way the facilities and buildings were designed, we hope to attract mostly GCC nationals," he said. "I don't think the Lebanese would be interested - the interior design was conceived with GCC nationals in mind."

Zein added prices have been increasing steadily over the past year, estimating at least a 25-percent rise in demand since 2005.

Although many of the banks advertised individual loans, the conference was more of an industry event, with a number of projects based in Dubai or Jordan seeking heavy investment or development partners.

"We operate mainly in Dubai and we have some buildings in India, but we're hoping to attract investors to buy into Dubai because it's a great investment opportunity," said Azam Pirani, director of sales for Desert Dream Real Estate.

Martina Rohel, marketing manager for Ilyas and Mustafa Galadari Group, which is developing City of Arabia in DubaiLand, said the company is testing the local waters.

"This is our first time in Lebanon, so we're launching the project and developing first of all the network of various real estate agents here in Lebanon, and then looking for end users and investors," she said.

Hassoun

June 29th, 2006, 04:00 AM

إعلان مؤتمر "إدراج الشركات... فرص وآفاق"

أزعور: لا نعاني مشكلة تمويل ولا نؤيد رفع الفوائد
مشروع كبير لأسواق المال يجعل لبنان مركزاً عالمياً
--------------------------------------------------------------------------
http://www.almustaqbal.com/issues/images/2309/C7-N1.jpg
طمأن وزير المال جهاد أزعور إلى عدم وجود مشكلة تمويل عند الدولة، بل ثمة فوائض مالية كبيرة لدى الخزينة، وقال "نطمئن المستثمر والمواطن استنادا إلى الأرقام والمؤشرات الحقيقية الموجودة أن الوضع المالي مستقر وهو يدار بطريقة حكيمة غامزا من "قناة ما يتم التداول به من مواقف وأرقام غير دقيقة ومبالغ فيها".
وأوضح أنه ليس مع رفع الفوائد الآن لعدم وجود مبرر لذلك، لأن رفعها سينعكس سلبا على القطاع الخاص، مشددا على استمرار سياسة الاستقرار المالي وعلى عملية الإصلاح ومتابعتها جديا، نافيا وجود أي تلكؤ في هذا الموضوع، "بل على العكس ثمة مبادرات كثيرة تقوم بها الحكومة على هذا الصعيد"، داعيا جميع التيارات السياسية إلى التوافق حول الإصلاح، مطالبا الكف عن بعض الجدل الدائر نظرا لمعرفة من يديرونه بانعكاسه السلبي على الأوضاع الاقتصادية والمالية والاجتماعية.
وكشف أزعور عن إعلان قريب عن مشروع كبير لتطوير الأسواق المالية يسهم في إعادة بيروت مركزا ماليا إقليميا، ليس فقط على مستوى المنطقة فحسب بل في الشرق الأوسط ليلعب دورا عالميا.
عقد أمس في فندق "فينيسيا" مؤتمر صحافي حضره الوزير ازعور ورئيس بورصة بيروت فادي خلف ورئيس شركة "كونفكس انترناسيونال" رفيق زنتوت ونائب رئيس غرفة التجارة والصناعة والزراعة في بيروت وجبل لبنان محمد لمع، أعلن خلاله تنظيم مؤتمر "إدراج الشركات ... فرص وآفاق"، بالتعاون مع وزارة المال، غرفة التجارة والصناعة والزراعة في بيروت وجبل لبنان، وبمشاركة بورصة بيروت في 26 تموز/يوليو المقبل في فندق "جفينور روتانا".
إستهل زنتوت المؤتمر بكلمة قال فيها إلى أن مؤتمر إدراج الشركات يشارك فيه حوالي 200 شركة، ويهدف إلى تسليط الضوء على الفرص التي توفرها بورصة بيروت في ظل الطفرة المالية التي يشهدها العالم العربي والاهتمام المتنامي من المستثمرين والشركات بالاستثمار في أسواق المال.
ثم تحدث الوزير أزعور الذي أكد اهتمام وزارة المال بتطوير الأسواق المالية عن طريق تطوير مجموعة من التشريعات ذات الصلة، وردا على سؤال حول العلاقة مع المصارف في ظل الحديث عن تباين في وجهات النظر حيال مواضيع لها علاقة بالتمويل للدولة، قال أزعور "من موقعي كوزير مال فإني أتحدث عن هذا الموضوع بدرجة عالية من الحكمة والروية، نحن كحكومة عازمون على متابعة مسيرة الإصلاح التي بدأناها، وهي مسيرة لمصلحة الوطن والاقتصاد اللبناني وليس الهدف منها إنجاح مؤتمر ما أو توفير شروط معينة مطلوبة من لبنان، ومن هنا يمكن ان يكون لدى البعض هاجس يتلاقى مع هاجسنا كحكومة".
وتابع "إذا كان هناك أكثر من صوت ينادي في الاتجاه نفسه، فهو لمصلحتنا جميعا، إنما أريد أن أؤكد أن ليس هناك أي نية لدى الحكومة ولدي كوزير بعدم متابعة الإصلاح".
وأردف يقول "أما في ما يتعلق بالنقطة الثانية حول موضوع التمويل.. ليس هناك في الوقت الحاضر أي مشكلة تمويلية عند الدولة، حالياً هناك فوائض موجودة وهناك دائماً فوائض في سندات الخزينة، وبات لدى الخزينة فائض كبير من السيولة، وهذه إستراتيجية اعتمدناها منذ اليوم الأول لتشكيل الحكومة، في إنه في هذه المرحلة السياسية المتقلبة علينا أن نعزل قدر الإمكان الاستقرار المالي عن الأوضاع السياسية".
وقال أزعور "يمكنني أن أطمئن في هذا الموضوع إلى أن الخزينة كما يريد أن يظهرها البعض أنها تعاني مشكلة تمويلية بل على العكس، إلا أن هناك حاجة للعمل المشترك وهذا كان مطلبنا من خلال تطوير الأسواق المالية، على أن يتم توسيع قاعدة المستثمرين، فلذلك المطلوب ممن يقوم بتسويق الإصدارات أن يسوقوها للمستثمرين في لبنان وخارجه، ونحن الدولة العربية الأولى التي أدرجت سنداتها للتداول في الأسواق العالمية من خلال إمكانية تداولها والمقاصة فيها".
وأكد مجدداً "أن الوضع المالي مستقر وهو يدار بطريقة حكيمة فيها نوع من الترقب، وكما تعرفون أقدمنا على عملية إعادة تمويل مطلع السنة الحالية كل الاستحقاقات بالدولار وكان البعض يشك بقدرة الخزينة على إدارة الدين في العام الحالي، ونحمد الله أن الخطر انخفض وتراجعت الفوائد على الدولار على الرغم في ارتفاع الفوائد عالمياً وهي مستقرة على الليرة وهذا ما يجعل لدينا سيولة إضافية، ومن هنا تتمة تناقض بين الكلام والواقع".
ورداً على سؤال حول الإجتماع الأخير مع المصارف والمطالبة برفع الفوائد، أجاب أزعور "نحن لا نطلب أي شيء معين من المصارف، والذي أرسلناه إليها هو إعلان نيّات عمن يرغب في إدارة الإصدار وتوزيعه، وفي الطلب كان الهدف الأساسي هو توزيعه على أكبر قاعدة من المكتتبين وإلا يتم الاكتتاب فيه أو التركيز في الاكتتاب من قبل المصارف، أعود وأؤكد أن ليس هناك مجالاً في هذا الموضوع للجدل، لأن الهدف منه تطوير الأسواق المالية وليس هناك اختلاف على أهمية الإصلاح وعلى ضرورة وعي جميع القيادات والتيارات السياسية لضرورة الإصلاح".
واستنتج أن "لا وجود لخلاف على ذلك، إنما ليس هناك من ضرورة للمبالغة وتصوير الأمر على أن ثمة موقفين مختلفين. فالبحث لم يتم في موضوع الفوائد، إنما الرسالة التي بعث بها بعض المصرفيين نحن نؤكد عليها وهي ضرورة الإصلاح".
ورداً على سؤال بخصوص الورقة الاصلاحية، قال أزعور إنها "في التداول حاليا، وقد أحيطت بملاحظات عدة، ودعوتي هي أن تتحول هذه الملاحظات إلى اقتراحات بناءة لتعديل الورقة لنتوصل إلى ورقة جامعة تشكل وجهة نظر لأكثرية القيادات السياسية والاقتصادية والعمالية في لبنان لننطلق من خلالها لتحويل مؤتمر بيروت كنقطة تحول في الاقتصاد اللبناني.. هذا يتطلب توافق القيادات السياسية الأساسية التي تشكل العنصر الأساسي في إنجاح أي برنامج اقتصادي لأن أي برنامج يحتاج إلى دعم من القيادات السياسية".
وتحدث الدكتور خلف عن نشاط بورصة بيروت بعد التطور الأخير الذي شهدناه في الفصل الأخير في عام 2005 والفصل الأول من العام الجار. وكذلك تحدث لمع عن أهمية المؤتمر، معتبرا أنه "يشكل خطوة أساسية على طريق دعم دمج الشركات في بورصة بيروت".

Jayme

June 29th, 2006, 11:26 AM

Deyaar, the region's leading real estate developer, will showcase its unique Lebanon projects at DREAM 06, the first and biggest exhibition dedicated to the Middle East's real estate market that will be held by Promofair at the Beirut International Exhibition & Leisure (BIEL) Centre in Downtown Beirut from June 28 to July 1.

Through its participation in the event, Deyaar seeks to enhance awareness of its premium real estate offerings in response to positive feedback from customers and investors on visit to Lebanon and will exclusively showcase its Saifi Village II, Nacim Baabdet and Matal Al Qamar projects. It will specifically target these projects at the increasing number of GCC Nationals planning to acquire a holiday home in Lebanon and high net worth individuals interested in Saifi Village II and Nacim Baabdet.

Zack Shahin, CEO of Deyaar said:

'Deyaar's projects have been well received by investors and buyers looking for mega luxurious, upscale properties that provide state-of-the-art facilities. DREAM 06 is an excellent forum through which we will target GCC Nationals in addition to high net worth individuals keen on buying property in the country.'

Occupying a place of pride at Deyaar's stand will be the Saifi Village II project. Situated in the old-style prestigious Downtown Beirut area, the development comprises four blocks of ultra-chic apartments sitting amidst landscaped areas and gardens. Located along Damascus Road, the Saifi Village II property offers spacious four, three and two bedroom apartments with car parks, balconies and basement storage facilities.

Deyaar, the wholly owned subsidiary of Dubai Islamic Bank, will also promote its Nacim Baabdet project being built in Baabdet, the hilly, wooded suburbs of Beirut. This comprises a group of 16 exclusive villas that are architecturally designed to suit the tastes and lifestyles of GCC Nationals and which are surrounded by lush, landscaped gardens. Deyaar's Matal Al Qamar project consisting of ten blocks with 21 apartments each, being built in Falougha in Mount Lebanon too will be displayed at the exhibition.

Deyaar is behind several prestigious developments including the residential and commercial Churchill Towers project and The Citadel, coming up in Dubai's elite Business Bay. It also manages more than 16,000 residential and commercial units across 700 buildings in the UAE.

DREAM 06 is a development and real estate exhibition and conference that will attract some of the region's premier property developers, mortgage banks and other financial institutions, legal consultants and allied property sector players.

Jayme

June 30th, 2006, 01:07 AM

BEIRUT: The decision of the region's largest real-estate development company, Dubai-based DAMAC Properties, to launch its Middle East expansion drive from the Beirut Central District (BCD) this week may challenge the emirate's monopoly on the luxury residential property market in the future. DAMAC chairman Hussain Sajwani told The Daily Star about his plans for the region, Lebanon's investment climate, and why the real-estate boom in the Gulf is not, in fact, a bubble.

DAMAC's new office in Beirut - and the launch of the $150 million La Residence by Ivana project, to be completed in the BCD by 2009 - represent the firm's first moves outside of the Gulf market. Sajwani said that construction of a residential complex in Jordan will begin in July, and the company is eyeing projects in potentially lucrative North African markets as well.

"We chose Beirut because we plan on going all over the Middle East and it's a logical place to start. We're doing a three-building residential project in Amman in July, and are studying the markets in Egypt and Morocco," said Sajwani.

Despite relatively high property costs in the BCD - which Sajwani attributes to a limited supply of land to be built upon and high demand - DAMAC has even more expensive residential developments in the BCD planned for the future. But he ruled out diversifying investments into other economic sectors or moving development outside the city center.

"Beirut is a good environment, the economy is doing well, there is money in the country again after last year," Sajwani said.
http://www.dailystar.com.lb

DAMAC did not encounter any significant problems at any stage of applying for a building license, and he said the whole process took six to nine months, "which is normal for the region."

Sajwani is also upbeat about the regional real-estate sector on the whole, and refuses to buy into any alarmist talk of a real-estate bubble, let alone predictions that it may burst.

"With the new liquidity there is definitely a tendency toward real-estate investment, but I don't think this classifies as a bubble," Sajwani said. "But the property market in the region was undeveloped before and there were almost no mega-developers in the1990s. I mean, Solidere was the third."

Sajwani is confident that a genuine, sustainable demand for luxury apartment units exists across the region, and with oil prices showing no signs of faltering in the near future the market has the potential to growth.

"The demand is coming from locals and foreigners depending on the country. In Qatar it's coming from locals because the market is underdeveloped, and in Dubai it's coming from foreigners because they are trying to attract foreign investment."

He acknowledges that La Residence will be geared toward GCC nationals or Lebanese who live oversees since it is a high-end development and they are the only ones who can afford the prices.

High-end indeed. With a global brand like Ivana Trump attached and apartments priced at $500,000 to $4 million, the BCD may soon resemble Dubai.

Hassoun

July 9th, 2006, 12:50 AM

Russia’s Gazprom Bank will open soon in Lebanon
------------------------------------------------------------------------
http://yalibnan.com/site/archives/2006/7/img/gazprombank%20logo.gif
Beirut- Lebanon’s Central Bank has given its preliminary approval to a Russian bank to operate in Lebanon marking the first Russian investment in the banking sector since the civil war, Al Markaziya news agency said.

Gazprom Bank Invest s.a.l., which is owned by Gazprom Bank, Quantic company and Lebanese banker Sami Maroun, will become operational within three months, the agency reported this week.

Gazprom Bank is owned by the Russia’s energy giant Gazprom. The Russian government owns 51 percent of the Gazprom 's shares. Gazprom accounts for 25 percent of the world's natural gas.

According to As Safir newspaper the bank's initial minimum capital will be around $10 million.

"Setting up this bank in Lebanon constitutes a significant and important step because it would be the first Russian bank operating in the Middle East," Al Markaziya's sources said.

"Choosing Lebanon is proof of Russia's trust in the country as a major banking center in the region," they added.

The last Russian bank that operated in Lebanon was the Moscow Narodni ( National) Bank which closed down during the war.

Beiruti

August 18th, 2006, 10:10 PM

Investors smile on truce, send Beirut stocks higher

Tuesday, August 15, 2006

Daily Star staff
Copyright (c) 2006 The Daily Star

BEIRUT: The cease-fire gave the Beirut Stock Exchange a breather on Monday as shares on the bourse rose by an average of 5 percent. The BLOM share index rose by 3.80 percent to 1,262.34 points, a clear indication that the market reacted positively to the news of the cease-fire. Shares of the giant real-estate company Solidere rose by 4.78 percent and 4.98 percent for A and B shares respectively.

Solidere normally dominates the volume and value of trading on the BSE and brokers say that investors are not willing to give up their shares in the real-estate company.

The BSE reopened a week ago to reassure brokers and investors that the Lebanese capital market would not succumb to the war.

To contain any possible panic, the BSE limited the fluctuation of prices to 5 percent a day.

The shares of listed banks such as BLOM, Audi and Byblos also improved during trading.

Lebanese banks are seen as the main driving force behind the Lebanese economy and their huge assets, estimated at over $70 billion, will allow the government to refinance the reconstruction drive once Israeli forces pull out completely from the South, according to analysts.

According to the BSE, 22,159 shares changed hands with a value of $519,537 and the market capitalization closed at $5.865 billion.

The index had plummeted to the lowest level of the year following the launch of Israel's offensive against Hizbullah on July 12 after the party captured two Israeli servicemen.

It lost 10 percent on July 13 alone and is still down more than 16 percent from the closing level of 1,506.34 points on July 11, a day before the war began.

Solidere shares fell by 30 percent in the first two days after the assassination of former Premier Rafik Hariri, who founded the real-estate company that rebuilt the Beirut Central District.

But Solidere's stocks eventually rallied and the price reached a record $25 before falling to an average of $20 for both A and B shares.

Despite its small size, the BSE recorded the second-highest growth among all the Arab bourses in 2005.

But investors and brokers argue that the BSE will not prosper if the political and security situations in Lebanon remain vulnerable. - The Daily Star

JP Morgan considers Lebanon’s financial sector as “strong mitigant to rising risks"

8/18/2006

JP Morgan, leading global financial services firm, released a report on Lebanon’s financial system under the current crisis situation.

The report shows that the system is well equipped to face the rising risks. At the level of foreign exchange risk, the report believes that the Central Bank of Lebanon can easily defend the Lebanese pound and meet almost all currency conversion needs, given its significant level of foreign exchange reserves and the amount of Lebanese pound deposits placed at commercial banks, not to mention the Arab deposits it received. The latter would only further reinforce such ability.

At the level of liquidity risks, the financial system is also well equipped to manage the pressure. Although Lebanon has a high rate of dollarization limiting the ability of the Central Bank’s role in this respect, JP Morgan highlights that these risks are offset by the high offshore liquidity of Lebanese commercial banks. Lebanon’s financial system primary liquidity ratio is estimated at 50% while banks foreign assets stand at 33% of the foreign currency deposits and at 60% of GDP, according to the same source. In addition, the historical track record of the deposit base in Lebanon shows that it remained stable during the most critical times.

JP Morgan mentions that only 3%-4% of the deposits’ base was transferred abroad as per Lebanese banks’ estimates while the bulk of LP-to-US dollars conversions have already taken place over the first two weeks of the conflict. At the same time, remittances continue to inflow forming another source of liquidity.

The main challenge, according to the report, is the deterioration in banks’ asset quality, as a result of the direct economic damages and the impact on economic growth. Most of the economy’s real sectors have been directly hit while other sectors that were indirectly hit would register declining revenues. However, JP Morgan considered the Lebanese banking system well provisioned, while also benefiting from diversification through the banks’ recent expansion into new regional markets across the border.

Beiruti

August 29th, 2006, 08:50 PM

Banks union plans Beirut talks

8/23/2006

The Union of Arab Banks (UAB) is to hold its annual conference in Beirut in November to help rebuilding efforts in Lebanon.

UAB president Joseph Tarabay said the union would hold a board meeting on November 1 before a two-day annual conference in the Lebanese capital.
‘The objective of this conference is to shed light on Lebanon again and discuss the issue of reconstruction following the destructive war,’ said a statement from the organization.

‘This issue is an Arab and international priority,’ it said.
The UAB, along with the UN Economic and Social Commission for Western Asia have started ‘to prepare studies about the reconstruction of Lebanon,’ it said.

The studies were also meant to help ‘meet challenges and confront the consequences of this (Israeli) operation on the political and economic future of the region,’ it said.

Beiruti

August 29th, 2006, 08:57 PM

World Bank moves to help Lebanon rebuild

8/22/2006

The World Bank will reallocate $40 million in previously approved loans for post-war rebuilding in Lebanon and will help verify immediate reconstruction needs as donors consider how much aid to give, a senior bank official said.
In an interview with Reuters, Joseph Saba, country director for Lebanon, said the bank would also assist the Lebanese government in establishing transparent mechanisms to manage international donor funds, a role the bank has traditionally played in post-conflict rebuilding.

Lebanese government officials have estimated $3.6 billion in damages to infrastructure from five weeks of Israeli air strikes. Beirut hopes to raise funds for rebuilding at a donor conference in Sweden on Aug. 31 followed by a meeting later in Beirut to address longer-term economic needs.

“They have asked us to validate the early assessments of requirements for reconstruction and recovery and of course many of the Lebanese agencies have already begun this work and are far advanced,” said Saba.
He said Beirut had made it clear to donors it wants to lead its own reconstruction effort.

“This is a government which has excellent capacities and competencies and they are determined to take the lead and this means in every respect,” Saba said, adding, “This is not a traditional case where the international community needs to come in and set up parallel structures,” he added.

ACCELERATE REBUILDING

Saba said the bank had already mobilized teams, including staff evacuated during the bombings, to help the Lebanese coordinate donor assistance and accelerate projects in the worst-affected areas.
Some staff would be deployed in the various ministries, he added.
Saba said the bank would also conduct an economic and social assessment for Lebanon that would review expenditures and budgets for sectors such as health and education.

“It is too premature to put a number on the economic damages,” he said, also pointing to the loss of lives and livelihoods that were immediate priorities for people.

“The international community has indicated a willingness
to be generous with Lebanon in the initial reconstruction phase when the government will have huge needs in the short-term, “ he said, “Fortunately it has a lot of good friends and a lot of goodwill,” he added.
Saudi Arabia has committed $1 billion to reconstruction in Lebanon, Kuwait has offered $300 million and the United States $230 million.
Even before the war, Lebanon was struggling to cut a public debt load of above $35 billion, worth some 180 percent of GDP. It has also struggled to push through reforms because of political bickering that would privatize the power and telecommunications sectors, boost taxes and lower spending.
Saba said the World Bank’s lending strategy, which has approved projects for urban development, water and sanitation, education and transport, was still valid although government priorities may have changed.

Lebanon’s tight fiscal situation had always been a constraint to capital investment and the Lebanese had not sought new loans, Saba added.
World Bank outstanding loans to Lebanon total nearly $300 million, from which the $40 million has been reallocated for reconstruction.

“The government has pointed out already to us that the work and the funding which was contemplated by that strategy are still needed,” he said.
“Perhaps while many of the issues presented in that strategy exist maybe some of the priorities are different,” he added. “It is still too early now but we have to sit down with the government and start working out those priorities.”

Reuters

Beiruti

August 29th, 2006, 09:00 PM

Lebanon sees rapid investment growth

8/24/2006

Foreign investment in Lebanon should jump dramatically in 2006 and 2007 over last year if a truce that halted a devastating war between Israel and Hizbollah holds, its investment agency said.

Nabil Itani, head of the Investment Development Authority of Lebanon (IDAL), said if Lebanon could maintain stability, investment would more than double in 2006, from $1.6 billion a year earlier, and rise further next year.
“This year we were expecting $3.5bn before the war, and I now think this investment will still be here,” he said.

“I’m speaking now to those who invested before the war or who were preparing to do so. They are now waiting for security stability, but their intention is to proceed... If we have that situation, for 2007 we expect more than 4bn.”

The main investors in Lebanon in recent years have been companies from other Arab states: Saudi Arabia, Kuwait and the UAE.
Itani said this year’s forecast was still quite high because figures from the first quarter alone showed $1.1bn in the sale of Beirut real estate to foreign investors.

“They want to see the arrival of a UN force, the deployment of the Lebanese army, no more fighting,” Itani said, citing aspects of a UN-backed truce agreement that halted the fighting on August 14.

Prime Minister Fouad Siniora’s government has estimated the damage to bridges, roads, and other infrastructure at $3.6bn. Damage to economic activity is seen at billions more, including $3bn lost from tourism receipts this summer.

Itani said his estimates for incoming investment did not include billions of dollars in aid expected to be injected by Lebanon’s government, private firms and donor states to rebuild infrastructure devastated by Israeli attacks.

Gulf Daily News

Beiruti

September 5th, 2006, 07:15 AM

Shares higher at Beirut Stock exchange

Monday, 28 August, 2006 @ 8:59 PM

Beirut, Lebanon- Shares at Beirut Stock Exchange continue to do well despite the Israeli economic blockade, which is hurting the Lebanese economy. The rise in share prices is signaling a positive outlook for Lebanon in the aftermath of the blockade.

Solidere shares which represent the bulk of trading at the exchange continued to rise. "A" shares closed at $ 19.28 up 1.68 % and "B" shares closed at $ 19.27 up 1.58% over Friday's price. Solidere shares lost about one third of their value during the war.

Bank shares were mostly up or unchanged :

BLC Bank "listed shares" was unchanged at $ 10.26
Banque Audi GDR was up 1.07% and closed at $ 61.20
Bank of Beirut "listed shares" was unchanged at $ 13.00
Byblos Bank "listed shares" was up 1.50% and closed at $ 2.02
Byblos Bank priority "listed shares" was up 6.31% and closed at $ 2.02
Banque BEMO "listed shares" was unchanged at $ 4.44
BLOM Bank GDR was up 1.14 % and closed at $ 70.75

HOLCIM Liban a cement company closed at $ 2.62 down about 3 %

Market Capitalization was up at: $ 7.24 billion.

The Lebanese Pound (Lira) was unchanged at USD/LBP :1507.5

Volume of trade was relatively low. Number of shares traded was 819,889 and Value was $ 10,475,831

Lebanon calls for post-war rebuilding sponsorships

Prime Minister Fouad Siniora called for public and private sponsorship of projects to help Lebanon overcome the multi-billion dollar damage inflicted by the Israeli offensive.

“How to fund it?” Siniora asked of Lebanon’s reconstruction at a press conference, saying damage from Israel’s month-long offensive on Lebanon was “in the billions of dollars”.

We are trying to be in contact with sister countries and donor countries, as well as Lebanese individuals and Arabs and other individuals who would like to, let’s say, ‘sponsor’ certain projects and pay for them”, he said.
“We have already put into place such a mechanism, so that we have something that is expedient, cost-effective and transparent”, he said.

A spokesman for the UN Development Program (UNDP) estimated that overall economic losses for Lebanon from the hostilities between Israel and Hezbollah totaled “at least 15 billion dollars, if not more”.
“Lebanon needs the backing of every Lebanese and Arab national to overcome the destruction inflicted by the barbaric (Israeli) offensive”, Siniora said.

“We are in dire need of assistance”.

Many Wealthy Lebanese have already pledged to rebuild many of the destroyed bridges ...Many friendly countries have already also pledged hundreds of millions of dollars to rebuild the country.... A donor conference will be held in Sweden on Aug 31 to raise funds for Lebanon.

The fact of the matter, the country is in ruins and much is needed. The 15 years of rebuilding after the civil war ended have been wiped out according to UNDP. The pressure on reconstruction will increase as more displaced people are returning and they have no place to stay.

Picture: Workers demolish a damaged bridge, that was destroyed during the recent war between Israel and Lebanon's Hezbollah, south of Beirut

Sources: BSE, Ya Libnan, Reuters

Phoenician Empire

September 6th, 2006, 08:14 PM

--------------------

Hassoun

September 25th, 2006, 05:52 AM

Bekaa housing company builds anew
Destroyed by israel, dalal steel hustles to fill contracts with us military

BEIRUT: Of all the industrial plants destroyed by Israel in its 34-day bombardment of Lebanon, one target, Dalal Steel Industries, stands out. The prefabricated housing company is arguably the single commercial target hit during the war with the most regional strategic significance, since its main client is the US military - Israel's unyielding patron.

Dalal Steel, located in Taanayel, 50 kilometers from Beirut, is also the only one of the five Bekaa-based industrial companies that were destroyed to have begun rebuilding its manufacturing facilities. It has already resumed production, providing temporary facilities for US military bases in the region and now for United Nations Interim Force in Lebanon troops stationed in the South.

Unlike other Bekaa businessmen, Toufic Dalal is not waiting for the government to compensate him for damages, instead financing the entire $25 million rebuilding out of his own pocket, with the help of bank loans.

"Its frustrating because we [local industrialists] are not involved in these politics, we are just trying to work and to provide employment to people in the Bekaa who rely on agriculture," Dalal told The Daily Star on Saturday morning from his offices in Hamra.

"The government is like my insurance company," Dalal said. "If you have fire insurance and your factory burns down, you expect the company to pay you back. If they don't you'll go with another insurance company. If the government does not compensate me for a mistake that they made, I'll move to another country."

Despite the progress on the reconstruction of Dalal's production facilities - rebuilding is 50 percent complete and is expected to be finished within two months - Dalal's back-up plan, in the event that he is not reimbursed for his losses, is to shrink local operations and establish facilities in Saudi Arabia.

But Dalal says he is loathe to leave Lebanon, especially the Bekaa, where there is an abundance of inexpensive labor and where he can easily access key export markets.

He started Dalal Steel Industries from scratch in 1989 from a small 2,000-square-meter facility in Beirut. Now it is one of the biggest companies in the Middle East, according to Dalal, occupying 65,000 square meters of land in the Bekaa. The company manufactures temporary housing facilities for fast-moving armies and displaced victims of natural disasters, and employs between 250 and 600 workers, depending on level of demand, Dalal said.

Dalal's biggest customer is the US military, which accounts for 80 percent of sales. The US buys pre-engineered buildings for army bases in Iraq, Afghanistan, and Kuwait from Dalal. Before the United States became embroiled in Iraq, Dalal had contracts with international oil companies in Iraq, the United Nations' Oil for Food Program, and the Iraqi government, he said.

Regardless of the outcome in Lebanon, Dalal says he will build a large factory in America to be managed by his son, also an engineer. Though he had not planned on leaving during the war, the day after his plant was destroyed he evacuated Lebanon on a US naval ship to purchase new machinery. For Dalal the trip to America was the only positive outcome of the war because it alerted him to a new potential market, where there is a huge demand for prefabricated homes. The states also promise a less risky investment environment.

"I went to try to buy new machinery in the States and the salesman asked me why I was placing such a large order all at once. When I told them planes bombed my factory they didn't believe me," Dalal recalls with a laugh. "The man said to me 'yeah right, maybe you were dreaming, maybe it was a UFO.'

"There is a different reality in Lebanon."

Though Dalal is still demanding government compensation, he is busy filling back orders. First he is focusing on a delayed contract with the Iraqi government - financed with the US military - to provide housing for engineers for the South Oil Company.

Hassoun

October 2nd, 2006, 09:19 AM

Recovery scenarios: the good, the bad and the ugly
By Nohad Baroudi

Numerous scenarios are circulating nowadays to predict what shape the Lebanese economy will take after the July-August war. Also, many estimates are given of the direct and indirect losses resulting from the war.

The Lebanese are lost between those scenarios and those estimates. After incurring enormous damages and frustrations in livelihood and property, they are now worried about their future. Will they recuperate (or keep) their jobs, will their children find work, will they dare invest again in businesses, will their security be assured ... to name only a few concerns? In one word, "what" Lebanon is emerging from the rubble, in view of the political (and administrative) bickering that is currently going on? Each side defends its own "blueprint" of tomorrow's Lebanon, and meanwhile the economy is sinking to new lows.

Time is not on our side. If we really care about the welfare of our children, then we have to act without delay.

This introduction is meant to put the figures that follow into perspective.

A convenient measure of the economic health of a country is GDP (gross domestic product) and how it evolves from one year to the next. GDP is also a gauge of the standard of living in as much as it is the sum of all the revenues in the economy: salaries of the employed, profits of businesses, taxes levied by the state. When these are affected, consumer expenditure (on food, shelter, health, education and so on) is affected, and so is government spending as well as business investment spending (the expenditure side of the GDP equation).

Why such an abstract notion as GDP is used to depict an economy's heath is that practically every country in the world provides this information in a relatively consistent manner, so that comparison between countries are made possible as well as comparison between different years within the same country.

So, when scenarios for future GDP growth are drawn, one can now grasp the dramatic impact that their predictions, if realized, may have on the welfare of the people.

The three scenarios that are briefly described below have been prepared to give an idea of what could lie ahead for us. I call them the good, the bad and the ugly. All three scenarios have the same starting point: a 2005 GDP of $18.2 billion and an annual growth trend of 5 percent up to 2010 had the last war not taken place (a hypothetical no-war scenario).

The good scenario assumes catching up with war losses within six months and experiencing accelerated growth thereafter (6 percent instead of 5 percent).This would allow GDP to recuperate all opportunity losses by end-2010. Of course the rationale underlying this good scenario is that, on the physical side, reconstruction would be swift with no financial, administrative, political and security bottlenecks, and that, on the human side, the return and reintegration of the active labor force would be as swift.

The bad scenario assumes a two-year delay in GDP growth (resulting from a 5 percent contraction in GDP for 2006 instead of the expected 5 percent expansion) and resuming normal (5 percent) growth thereafter. This would result in about $10 billion cumulative opportunity losses in GDP by end-2010. Actually this is not a really bad scenario as it still assumes physical and human rehabilitation to take place without major delays. Even so, the opportunity loss is horrendous ($10 billion of lost jobs, lost business opportunities, lost social welfare, etc.).

The ugly scenario assumes a three-year delay in GDP growth, which implies resuming normal (5 percent) growth in 2008 instead of 2007. This would result in increasing GDP opportunity losses for 2006-2010 from $10-$14 billion dollars. And the years after 2010 will continue to witness a widening of the gap.

Based on what has lately been taking place on the political and even the administrative scene, the specter of an even "uglier" scenario than the ugly scenario presented above cannot be ruled out. The cumulative opportunity loss figures indicated above are indicative of course, but their order of magnitude is very real, and will directly affects the livelihood of all the Lebanese, their work prospects and their confidence in the future of the country, let alone the attractiveness of Lebanon to foreign investors.

With each side insisting on its own "blueprint" of tomorrow's Lebanon, we might end up with no Lebanon at all...

Nohad Baroudi is the former Secretary General of CDR

Hassoun

October 11th, 2006, 02:38 AM

IMF: Lebanon Safe From Monetary Collapse Despite Israeli War

Lebanon is safe from a monetary collapse despite Israel's blistering 34-day offensive against Hizbullah due to sufficient capital inflows and a successful monetary policy, the International Monetary Fund (IMF) believes.
"The IMF is not worried about a monetary collapse in Lebanon in the foreseeable future," the head of the IMF's Middle East and Central Asia department, Mohsin Khan, told AFP in an interview in Dubai.

"We have seen lots of shocks hit Lebanon and the monetary system has held together. It seems to be extremely resilient to shocks," Khan said while discussing the findings of the IMF's latest Regional Economic Outlook report.

Khan was referring, among other events, to the February 2005 assassination of former prime minister Rafik Hariri, the repercussions of which left the economy with a mere one percent growth last year after a 6.0 percent expansion in 2004.

However, due to Israel's war against Hizbullah, the economy is expected to contract 3.2 percent in 2006, according to the IMF report.

But Khan said that certain factors in the Lebanese economy had saved it from a monetary collapse that would have been expected in other countries in similar circumstances.

"There is a sort of implicit commitment on the part of the wealthy nations of the region, ie the Gulf countries, to support Lebanon," said Khan, pointing to the "enormous boost in confidence" in Lebanon after pledges by the Saudis and Kuwaitis respectively of 500 million and 300 million dollars.

The two oil-rich countries also deposited one billion dollars and 500 million dollars respectively in Lebanon's central bank to ease the monetary pressure during the war, which according to initial estimates caused damage to infrastructure alone of around 3.5 billion dollars.

"(Lebanon has) friends with deep pockets who are ready to put money on the table ... They are ready to support Lebanon," said Khan.

He also highlighted a vital role played by Lebanese expatriates in topping up Lebanon's foreign exchange coffers through remittances and investing in their homeland.

"The Lebanese Diaspora is very committed to Lebanon ... It has been very strong," he said.

The country's central bank, which maintains a stable currency rate through intervening in the market when needed, boasted a 10.5-billion-dollar cushion of foreign reserves just before July 12, when the war started.

The IMF economic outlook forecasts a drop in these reserves by the end of 2006 to eight billion dollars, possibly reflecting the bank's intervention to defend the Lebanese pound during the war, and the drop in economic activities.

Khan said it was Lebanon's "strong economic team", represented in fiscal policy makers and the central bank, which had "held the (economic) system together" during the war.

"The central bank has managed to keep the monetary system intact in the face of a war and a blockade ... (without) raising interest rates, which is the normal reaction, ... it didn't do a freeze on deposits, (and) did not (impose) a bank holiday," he said.

"I cannot think of a bigger shock to the system and there has not been a monetary collapse ... Investors who put money in (Lebanon's) banks did not run away," he added.

But if the financial sector has managed to weather the crisis, as only a modest four percent of deposits departed the banking system, the service sector, especially tourism, had been badly hit.

"Lebanon had a very bright future for 2006 ... It was becoming a services centre," for the region, said Khan, adding however that "tourism had a virtual collapse".

He said that a recovery in the tourism sector is key for a comeback in the economy of Lebanon, where the widening base of government revenues was helping rein in the enormous public debt -- in the region of 175 percent of GDP.

The IMF put Lebanon's nominal GDP in 2005 at 22.1 billion dollars.

Khan said the IMF would advise the Lebanese government "to minimize the amount of borrowing and rely to the extent possible on grants" for its reconstruction bill.

"You should do everything you possibly can so that you can prevent your debt from rising," he said, forecasting that a donors' conference due later this year should see a further boost in aid to Lebanon.

In August, donor nations pledged 940 million dollars in aid to help Lebanon rebuild smashed infrastructure, shelter the homeless and remove unexploded ordnance.(AFP)

Beirut, 10 Oct 06, 16:13

Hassoun

October 16th, 2006, 04:51 PM

France to Host Lebanon Aid Conference in January

Prime Minister Fouad Saniora said Monday that an international conference on financial aid for his war-ravaged country would be held in January in Paris.
"The cabinet has decided to hold an Arab and international forum on aid for Lebanon dubbed 'Paris-3' in the French capital on January 15, 2007," he said after a cabinet meeting.

Lebanon was devastated by Israel's month-long war on Hizbullah that ended in August under a U.N.-brokered ceasefire.

The Paris-2 conference, held November 23, 2002, pledged a total of $4.2 billion in financial assistance to Lebanon. The figure was formally announced after a three-hour session of donor nations at the Elysee under the personal auspices of French President Jacques Chirac.

The then Prime Minister Rafik Hariri has made an emotional plea at Paris 2 for financial help to maintain Lebanon as a stable haven of moderation in the turbulent Middle East. His speech was greeted by prolonged applause.

Hariri was killed along with 22 other people in a massive bomb blast Feb. 14, 2005.

Hariri's killing provoked an international outcry that ultimately forced Syria to withdraw thousands of its troops from Lebanon in April 2005, ending nearly three decades of military dominance of the country. Syria has denied involvement in Hariri's death.(AFP-Naharnet)

Beirut, 16 Oct 06, 14:28

Hassoun

October 17th, 2006, 10:55 PM

Arab states vow to accelerate Lebanon's comeback
Meeting passes series of recommendations aimed at revitalizing economy

By Nada Bakri and Nafez Qawas
Daily Star staff
Wednesday, October 18, 2006

http://www.dailystar.com.lb//admin/storage/articles/2006101723890.1-Arab%20league.jpg

BEIRUT: Arab states pledged to help and support Lebanon's postwar reconstruction process and endorsed a series of measures that will boost and revive its economy, during a news conference in Beirut on Tuesday. During an extraordinary ministerial meeting of the League's Economic and Social Council held at the Grand Serail, Arab finance ministers passed a series of recommendations to help the Lebanese commerce and trade, tourism, health and education sectors.

The measures included exempting Lebanese cargo trucks from paying transportation fees in Arab countries for two years; exempting Lebanese goods from customs fees for three years; and re-implementing the Lebanese agricultural calendar for three years.

Lebanon reportedly exports more than 50 percent of its products to Arab markets.

In the tourism field, the meeting agreed to promote Lebanese tourism by declaring the year 2007 a year of Arab tourism to Lebanon.

The Arab ministers also vowed to contribute in rebuilding and restoring destroyed schools and hospitals and supporting different health programs such as those dealing with the victims of the cluster bombs;

The meeting also pledged to grant Lebanon 5 percent of the budgets of different Arab organizations to execute special programs and activities in various fields that will be held during the years 2007 and 2008 for Lebanon to carry out similar projects.

The Arab representatives also recommended holding Arab conferences scheduled for 2007 in Beirut, including a conference for Arab businessmen and investors titled "Supporting and Helping Lebanon's reconstruction process and economy."

In addition to that, Arab funds pledged to take into consideration Lebanese requests to extend loans maturity.

But the conference fell short of pledging support for Lebanon's industrial sector, prompting Fadi Abboud, head of the Lebanese Industrialists Association, to storm out of the meeting in protest.

According to Abboud more than 90 factories were severely or partially destroyed during the recent war and Prime Minister Fouad Siniora told industrialists they will not be compensated unless special grants are received for this purpose.

Lebanon will prepare a detailed program for its reconstruction process and will present it before the Arab summit which will be held next March.

The meeting was attended by Siniora, Economy Minister Sami Haddad, and Arab League chief Amr Moussa, in addition to United Nations officials and Arab ambassadors to Beirut.

"This meeting is considered the practical launch of the reconstruction, rebuilding and assistance of Lebanon," Moussa said.

"We will not let Lebanon [continue to] be the scene of conflicts and wars, we will not let the great people of Lebanon fight on their own," he told Arab finance and economy ministers.

"We, the Arab states, have decided to help Lebanon with all our strength, capability and determination, and we will continue that important task," Moussa said.

"The stability and safety of Lebanon is a main part of the security and stability of the Arab world," he added.

Siniora appealed to Arab states to increase and accelerate their donations to Lebanon to help it recover from what he called "a series of devastating Israeli invasions" in the past 30 years.

He also thanked Arab states for their prompt support and financial assistance for his country following the Israeli offensive which caused over $3.5 billion in material damage.

"We count on your active participation in the Arab and international aid conference which will be held in January in Paris to help the Lebanese achieve their dream of a free and prosperous Arab country," he said.

The Paris donor conference aims to raise long-term financial assistance to help the country recover from Israel's blistering 34-day war and revive the ailing Lebanese economy.

"We also count on the role of [French] President Jacques Chirac to back Lebanon and to encourage countries to participate and contribute," Siniora said, adding that Chirac will head the conference.

During the Stockholm aid conference in August, donor nations pledged $940 million in emergency aid to help rebuild smashed infrastructure, shelter the homeless and remove unexploded ordnance.

Saudi Arabia and Kuwait have pledged grants of $500 million and $300 million, respectively, for Lebanon.

The two oil-rich Gulf countries also deposited $1 billion and $500 million respectively in Lebanon's Central Bank to ease pressure on the national currency during the war.

The cost of the latest Israeli offensive on Lebanese public finances was about $1.5 billion for 2006, which will raise public debt to $41 billion at the end of the year, according to Finance Minister Jihad Azour.

Azour said on Friday that Lebanon's growth rate which had been forecast to reach 6 percent this year would be negative because of the war, but that the situation should improve in 2007. - With agencies

_BPS_

October 23rd, 2006, 03:04 AM

Where can I find credible economic statistics on Lebanon?

Lirtain

November 29th, 2006, 05:04 AM

Posted: 28-11-2006 , 18:52 GMT

Ericsson on Tuesday announced a new Global Service Delivery Center to be opened next year in Beirut, Lebanon. The new center will initially employ about 100 people and will serve regional and global customers.

Its location in the Middle East means Lebanon offers a central position and cultural capabilities to Ericsson’s global organization. Its 17 universities delivering technical diplomas provide highly skilled, multi-lingual professionals who work across the whole region. The country also offers a very good climate for new company investments and establishments.

”I am impressed of the business growth of the region Middle East and Africa”, says Fredrik T. Strand, vice president and head of Service Delivery within Ericsson. “We are a global company and our service delivery organization provides a global structure that includes local capabilities in order to meet our customer’s demands.”

Initially about 100 persons will be employed during 2007, mainly engineers to deliver services in the areas of systems integration and network & technology consulting.

The new Global Service Delivery Center (GSDC) in Beirut is a consequence of the expansion of Ericsson’s services business, and is in line with Ericsson's plans to continue to develop global and local services and delivery capabilities.

The current Ericsson services organization employs about 23 000 professionals worldwide. About 6500 of these employees work in Global Service Delivery Centers.

Ericsson has 18 GSDCs which are designed to ensure business readiness for the global market. They support global and regional demand by providing global expertise cost-efficiently, supporting the expansion of Ericsson's services business.

Ericsson has activities and operations in all 14 countries in Middle East and offices in 11 of them (Iraq, Yemen and Afghanistan are exceptions) employing around 1800 persons. Today, Ericsson does business with more then 20 operators in the region.

© 2006 Al Bawaba (www.albawaba.com)

http://www.albawaba.com/en/countries/Lebanon/206697

Hassoun

December 20th, 2006, 12:02 AM

CORPORATE PROFILE: Lebanese phone group seeks big market share

http://www.lebaneselobby.org/picture/leb%20business/cell%20cytamobile.gif

By Kerin Hope
Financial Times
Dec 19, 2006

When Areeba won Cyprus's second GSM licence three years ago, it was clear that the Lebanese-controlled operator would have its work cut out to build market share. CytaMobile, the mobile arm of the state-owned fixed-line operator, had already achieved penetration rates of more than 90 per cent in the Greek Cypriot-controlled south of the island.

To fend off the challenge from a new market entrant, CytaMobile teamed up with the UK's Vodafone group. The partnership enabled the Greek Cypriot operator to provide high-quality roaming services for tourists, while giving domestic customers access to products and services developed by Vodafone. Areeba, which operates GSM networks in the Middle East and Africa, and recently launched Afghanistan's third mobile network, expected a comparatively smooth ride in a country that was preparing to join the European Union.

The company is Cyprus's biggest foreign investor, having paid C£12.5m for a 20-year operating licence and investing another C£40m in infrastructure and services. But while the Cyprus telecommunications market is fully liberalised, Areeba encountered so many obstacles that it resorted to making an official complaint with the European Commission's competition directorate.

"The political will for creating an efficient competitive environment is missing," says Bassel Jamaleddine, chief executive of Areeba Cyprus. "For example, there are no tenders held for government phone contracts. They are given to CytaMobile-Vodafone."

Areeba has problems providing full coverage across the south of the island because several municipalities rejected its application for a planning permit to put up antennas. The permits are required under legislation introduced several years after CytaMobile had installed its own network.

Areeba has nevertheless built a 10.5 per cent market share during two years of operation. It relies overwhelmingly on pre-paid customers. Only 15 per cent of users have monthly subscriptions compared with about 50 per cent of CytaMobile-Vodafone customers.

The sale of Investcom, Areeba's parent group, to MTN of South Africa earlier this year should have a favourable impact on the Cyprus operation, Mr Jamaleddine says.

"MTN competes with Vodafone in countries across Africa, so we expect to benefit from their support. I'm convinced that, in the medium term, we'll reach a market share in Cyprus above 20 per cent," he says.

© The Financial Times Ltd 2006. "FT" and "Financial Times" are trademarks of the Financial Times.Copyright The Financial Times Ltd. All rights reserved.
URL: http://www.msnbc.msn.com/id/16279338

Hassoun

December 20th, 2006, 11:36 PM

Beirut Port inks three-year transshipment deal with French cargo giant CMA CGM

By Michael Bluhm
Daily Star staff
Thursday, December 21, 2006

BEIRUT: The Port of Beirut will handle at least 100,000 containers of goods per year for the next three years for the world's third-largest shipping firm, France's CMA CGM, the Port and CMA CGM announced Wednesday. CMA CGM began using Beirut as its Eastern-Mediterranean transshipment hub in mid-November, docking its ships here before moving goods on to Turkey, Cyprus and Syria.

Transshipment comprises about half the port's business, although the domestic market still largely determines the bottom line for shipping firms which dock at the port, said Mohammed Fakhreddine, a partner at Mediterranean Shipping Company, which also uses Beirut as a transshipment hub.

With the help of CMA CGM, the Port of Beirut will handle about 600,000 containers units this year and could surpass 700,000 containers next year, said Port Authority chief Hassan Koraytem.

About 480,000 containers passed through the port in 2005, and transshipment is the chief reason volume increased this year despite the port's closure for two months during the July-August war with Israel, said Elie Zakhour, president of the Chamber of International Navigation.

lebgurl

December 24th, 2006, 02:09 AM

A shot in the arm for smaller businesses

BEIRUT: The Finance Ministry launched on Wednesday a $20 million Building Block Equity Fund to finance small- and medium-sized businesses in Lebanon. The fund was initiated by the Lebanese Bader group in collaboration with LBC group and graduates of MIT University.

Naji Rizk, the director of the fund, said that the fund will be raised in two stages, the first of which was to run through the winter and spring of 2007.

Rizk said that individuals and groups from Lebanon, the Middle East, Europe and the United States will take part in the fund.

Adnan Kassar, the chairman of the economic committee and president of Fransabank, is expected to contribute $1 million to the fund.

Bader group has also raised $1 million for the fund.

Underlining the importance of the fund, Finance Minister Jihad Azour told reporters in a press conference that the new program is in line with the government's plan to attract initiatives that have added value to the economy.
http://www.dailystar.com.lb

"The Building Block ... will fill the vacuum left by some of the mechanisms in the local market," Azour said.

In the past few years, several programs were launched with the help of the European Union and international organizations to create funds for Lebanese enterprises.

Azour said that the fund will pave the way for further programs in Lebanon in the future.

The minister said that exports in the past four years jumped by 40 percent, adding that the Lebanese market has the potential to attract foreign companies at a rate that would turn the capital into the regional financial hub.

Azour said that as a result of the increase in business, the balance-of-payments recorded a surplus of $2.5 billion in June of this year compared to a deficit of $1.5 billion in the same period of 2005. - The Daily Star

Hassoun

December 27th, 2006, 12:16 AM

Hariri family company wins major contract in UAE
Wednesday, December 27, 2006

ABU DHABI: Mubadala Development Company on Tuesday selected Oger Abu Dhabi for the 1.5-billion-dirham ($408 million) construction of UAE University's new campus development in the city of Al-Ain. Oger Abu Dhabi is part of Saudi Oger, which is owned by Lebanon's Hariri family.

Al-Hikma Development Co., a subsidiary of Mubadala Development, is mandated to develop and deliver the new campus on a BOOT (build, own, operate, transfer) basis.

Oger Abu Dhabi was selected following a detailed evaluation process carried out by Al-Hikma Development, the latter said in a statement. Its proposal for the package was evaluated as more competitive in terms of technical and long-term commercial value than the four other bidders - Al-Habtoor, CCC, ACC and Arabtech.

"This constitutes another important milestone in the project as we continue with the construction phase. All companies submitted attractive and competitive offers. The competition was very close, but Oger Abu Dhabi emerged as the best value," said Mubadala Development chief operating officer Waleed al-Mokarrab al-Muhairi.

"We are one step closer to achieving our goal of having a state-of-the-art campus that will address all of the university's current and future needs," said Hadef Bin Jouan al-Dhaheri, vice chancellor of the UAE University.

The new campus will feature approximately 290,000 square meters of high-technology teaching and recreational facilities, including accommodation for students and university staff. It will be built over a period of four years, with the first phase scheduled to be completed in mid 2008.

"Oger Abu Dhabi is committed to providing ... the highest quality and distinctive services compliant with international standards," said Mohammad Fakhouri, Oger's general manager for the UAE. - Trade Arabia News Service

Hassoun

December 29th, 2006, 12:45 AM

Lebanon offers open field for Islamic financing

Thursday, December 28, 2006

Cynthia Darrous

Zawya Dow Jones

BEIRUT: Lebanon is a potentially lucrative market for Islamic banking in view of its diversified community but the country still has a shortage of Islamic financial operations in terms of growing conventional transactions, according to Lebanese bankers.

"In Lebanon Islamic banking is still new and requires awareness and a marketing campaign," said Mutasim Mahmassani, general manager at Al-Baraka Bank, adding that he expects fast growth for Islamic financial operations in Lebanon.

Four Islamic banks are currently licensed to operate in Lebanon: Al-Baraka, Arab Finance House, Lebanese-Islamic Bank (unit of Credit Libanais), and BLOM Development Bank (a unit of BLOM Bank). All four focus mostly on retail banking and concentrate on consumer finance.

Al-Baraka Bank has been in the market since 1992, while the others are more recent entrants to the sector.

"We are holding conferences and forums to inform people about Islamic banking," Arab Finance House general manager Fouad Matraji told Zawya Dow Jones in an interview.

Bankers from three of the country's four Islamic banks agree that Lebanon is still an infant market for this specialization, but they all say it is developing fast and will play an important role in Lebanon's financial market.

But it is not an easy task in a country where the commercial banking sector plays a major role in the economy and regularly records growth even while other sectors are lagging behind.

Total assets of commercial banks rose 7.6 percent year-on-year to $74.3 billion at the end of October 2006, which is almost three-and-a-half times the national GDP.

At less than $250 million for the two larger Sharia-compliant banks, the assets of Islamic banking in Lebanon are a tiny fraction of the sector's total.

The total assets of Al-Baraka Lebanon stand at $130 million, Mahmassani said.

Matraji said the total assets of Arab Finance House are $100 million. He said the bank achieves a yearly profit of 7-8 percent and expects a return on equity between 12 and 14 percent in 2007.

Islamic banks are expansion-minded in Lebanon and Al-Baraka and Arab Finance House both have capital increases in the works.

In a recent general meeting of Al-Baraka, shareholders agreed on a capital increase of 150 percent to $50 million.

Mahmassani said the capital increase will help the bank develop its expansion plans, which include setting up new branches and expanding its activities, including devising investment funds.

According to Matraji, Arab Finance House is currently the largest Islamic bank in Lebanon in terms of capital.

"Our capital is $60 million and expected to become $100 million in 2007," he said.

Khodr Temsah, general manager of Lebanese Islamic Bank, said the bank will soon increase its capital to $50 million to fund its expansion.

Mahmassani declined to estimate the market share of Al-Baraka in Lebanon, saying there are no official statistics.

"The market share of Al-Baraka is relatively low with respect to the overall banking market, but we expect to occupy 50 percent of the Islamic-banking market share in 2007," he said.

Matraji said he expects Arab Finance House to have 15 percent to 20 percent share of the country's Islamic banking market. However, he said it is still early to speculate on total market share.

The size of global Sharia-compliant assets is estimated today at up to $400 billion, whereas the potential market for Islamic financial services is believed to be closer to $4 trillion, meaning that Islamic finance currently has only a 10-percent market share among the Muslim community globally and still has a long way to go, according to a report by Standard and Poor's in October.

There are around 800 branches of commercial banks in Lebanon compared to only eight branches of Islamic banks.

The Islamic banks have an ally in the Banque du Liban. Governor Riad Salameh said during the launch of a new certification program for Islamic banking professionals in October that the Islamic finance industry "is not restricted to Muslim countries and could benefit from Western and Middle Eastern experience as well."

Islamic banks in Lebanon have already led several development initiatives in producing new Sharia-compliant products that found their way into other regional markets.

With further development of specialized competencies in the sector, banks said they could use Lebanon as a base for cross-border expansion, despite the size limitations of the local market. Arab Finance House said it might open up a Sharia-compliant bank in Syria by the end of 2007, with capital of $100 million. A major shareholder in the new Syrian bank will be Qatar Islamic Bank, which also owns 70 percent of Arab Finance House.

Jayme

December 29th, 2006, 11:02 PM

whats the Diffrents with islamic banking and just banking ?

lebgurl

December 30th, 2006, 12:37 AM

interest is haram in islamic banking ... I think .... it is interest right?

Phoenician Empire

January 2nd, 2007, 05:48 PM

Lebanese Economy Still Feels Effects of Summer War with Israel

David Axe | Bio | 02 Jan 2007
World Politics Watch Exclusive

BEIRUT, Lebanon -- Right up to the very end, the farm community near the town of Massoudiyye in northern Lebanon was untouched by this summer's Israeli invasion. Its Lebanese farmers and their migrant Syrian workers, ironically, had even briefly benefited -- demand for their produce increased as supply in the south waned under Israeli air attacks. Then, two days before the Aug. 14 ceasefire, an Israeli jet aimed a bomb at one of the community's small road bridges -- and missed. Residents came outside to see what had happened. That's when the Israeli jet dropped a second bomb, killing 11 people.

The way Nell Abou Ghazale Hasbini describes it, the attack was completely unnecessary -- and motivated only by Israel's desire to kill Lebanese civilians fleeing the fighting by way of northern roads.

In the wake of the summer war, there is a deep animosity towards Israel in Lebanon, especially in the rural communities most deeply affected by the fighting. The conflict killed hundreds of rural civilians, cut off many road routes for produce and disrupted international efforts to jump start the Lebanese economy following the end of its 15-year-long civil war in 1990 and the departure of occupying Syrian troops in 2005.

The war also had a nearly fatal effect on the country's tourism industry -- once its strongest sector. The airport was out of operation for two months and travelers have since been wary of vacationing in a country still under the threat of invasion.

Hasbini is a manager with Stanford Research Institute, an American nonprofit that, in 2002, was awarded $12 million by the U.S. Agency for International Development to improve Lebanon's tourism and agricultural sectors. SRI and seven partner nonprofits represent the vanguard of U.S. efforts to rebuild its Lebanese ally. In the beginning, things were going well.

"Until the summer war, we had been part of a very successful strategy that saw a dramatic increase in tourism over past three years," says James Billings, SRI's Lebanon director. "In mid-July, the tourism season was in full speed ahead. There had been a 30-percent increase in the number of arrivals in country . . . [then] all of our support to tourism basically came to a screeching halt. The tourism industry stopped and it really hasn't restarted."
Articles on this Issue
In 2007, the Middle East Will Again Dominate Headlines
Iraqi Shiites to Meet in Najaf to Discuss Factional Differences
More on War and Conflict
Articles by this Author
Fears of Iran Meddling in Southern Iraq Appear Overblown
In Southern Iraq, British Forces Use Cultural Understanding -- and Money
More by David Axe
The war also damaged SRI's efforts to coax Lebanese farmers into international markets. The organization had sent Lebanese representatives to the July New York Fancy Foods Show to score lucrative international contracts for local produce. As a result of the war, Billings reports, "several of these contacts they were unable to fulfill."

Aside from the physical and institutional damage, the war exacted a psychological toll on the Lebanese people. "There isn't the sense of what the future is going to be," Billings says. "Overall, the economy has suffered."

But SRI and its partners, including Silver Spring, Md.-based CHF International, are still hard at work in Lebanon, struggling against ruin and despair to restore the local economy's forward momentum. For Hasbini, that means trudging through muddy fields in communities like the one near Massoudiyye, preaching, begging and cajoling in order to drag farmers into the 21st century.

"One other thing we tried to work [out] with farmers was to [get them to] group themselves into a cooperative," Hasbini says. "We are hoping that this [cooperative] grows progressively, becomes a place where they can meet and exchange information."

The idea is to take traditionally isolated and proudly self-sufficient farmers and turn them into a marketing and lobbying bloc for the purposes of winning government aid and big contracts with multinational firms. Hasbini's work on this front is back to its early stages following the disruptions of the summer war, but already she's got farmers negotiating with McDonald's in Lebanon to supply potatoes for french fries.

On Dec. 21, driving north from Beirut to meet Iskanar Iskanar, a potato farmer with fields near Massoudiyye, Hasbini tried to cross over the formerly bombed-out bridge, which like scores of other bridges is in the middle of being repaired. The going was too rough, so she backed up and found another way around.

Source: http://worldpoliticswatch.com/article.aspx?id=446#

Phoenician Empire

January 2nd, 2007, 05:49 PM

Saniora Announces Six-Point Socio-Economic Reform Program

Prime Minister Fouad Saniora on Tuesday announced a six-point economic revival and reform program that his government intends to present to a conference of donors at Paris later this month.
Saniora told a packed news conference at government compound in downtown Beirut that the government would convene on Thursday to ratify the accord.

The program for "Economic-social revival and reconstruction" focuses on:

Sparking development and modernizing the economy, reforming the social status and strengthening social security networks to protect limited-wage sectors, major financial reform, a privatization program aimed at encouraging investment and creating new jobs, a conservative monetary policy and an exchange policy to support the national currency.

In line with drawing a policy to achieve the five major points, the sixth, and most important part, of the government scheme calls for "seeking international financial backing for Lebanon" from the Paris-3 conference of donors that will convene on Jan. 25 at the French capital.

Saniora warned that failing to gain international support would further escalate the state debt and "the Lebanese economy would enter a very serious era."
Lebanon has a foreign debt of 41 billion dollars and sustained losses estimated at 6.3 billion dollars during 34 days of war between Hizbullah and Israel last summer.

Source: http://www.naharnet.com/domino/tn/newsdesk.nsf/0/84C68C12C315ED0CC2257257004F7A8C?OpenDocument

Hassoun

January 3rd, 2007, 03:38 AM

Aoun already rejected Seniora's reform program...Offff,he can't be serious,he lost almost half of his supporters,he wanna lose them all???let it be.

Hassoun

January 5th, 2007, 01:24 AM

Mikati firm in talks for majority stake in British Mediterranean
Airline's ceo says offer is in his company's 'best interests'

Compiled by Daily Star staff
Friday, January 05, 2007

http://www.dailystar.com.lb//admin/storage/articles/200714233250.8%20%20lead3.jpg

A consortium led by Lebanon's powerful Mikati family is in talks about a takeover of British Mediterranean Airways (BMED), the airline's chief executive officer said Thursday. BMED, a franchise partner of British Airways (BA), said the Mikati group has proposed to invest $58 million in the airline in return for majority control.

BMED, which flies under BA colors, has been hit hard by soaring oil prices and the summer 2006 war between Israel and Lebanon - it was forced to suspend its eight flights a week between Heathrow and Beirut for two months last year.

CEO David Richardson said the airline's board had held discussions with a number of interested parties about possible options to restore the company to profitability. Richardson hopes to put firm proposals to shareholders later this month, he said.

"While the proposed transaction is severely dilutive of present shareholders' interests, the board is confident that the proposal, albeit yet to be finalized, is in the airline's best long-term interests," he said.

The investor group making the proposal includes a subsidiary of M1 Group, which is owned by former Prime Minister Najib Mikati and his brother Taha. M1 Travel owns the Swiss airline FlyBaboo, which spent $50 million in November 2006 to add new planes to its Geneva-based fleet.

The Mikatis' main business, however, is telecommunications. Their company Investcom operated cellular networks in 10 countries throughout the Middle East and Africa, such as Syria, Cyprus, Sudan, Afghanistan and Ghana. In May 2006, the Mikatis sold Investcom to South-African mobile operator MTN for about $5.5 billion in cash and shares. Investcom estimated its 2005 revenues at $750 million, with 90 percent of revenues flowing in from mobile services.

With the sale of Investcom, the Mikatis' M1 now controls about 10 percent of MTN, although that interest could soon increase. MTN announced in November 2006 that it approved plans for M1 and a group including the company's top managers to acquire more MTN shares.

The company did not give details of the deal, but said it would enhance the percentage of black control of MTN. South African firms have to meet quotas on black ownership and employment. MTN CEO Phuthuma Nhleko and CFO Rob Nisbet - both black - were part of the group which teamed up with M1 to buy shares through a new company. - With agencies

mahdial_x5

January 6th, 2007, 07:18 AM

^^ i hate BMED its the shittiest airline ever...
wow even Irans shitty coffins called TUPOLEV tu-154's are better than what BMED flys, so is their service...
IranAir nott to be mistaken witht the low-cost airlines though;)

grzes

January 6th, 2007, 08:19 AM

I always though BMed was a division of BA, kinda like Express. Does BMed have a noticable presence in Beirut?

mahdial_x5

January 6th, 2007, 08:46 AM

well, their first flights ever were by a a320 5 times a week to Beirut...it was their first ever destination
they used to be a private company founded by investors but in 1997 a joint franchise was agreed with British Airways.

soo, later in 1997 britsih Airways withdrew their service to Beirut, Damascus and Amman and instead leaving B|MED as the sole british carrier on/to these routes

so yes, i would say they have notable presence in Beirut

Hassoun

January 6th, 2007, 04:48 PM

World Vision Lebanon's Organic products went International
Friday, 5 January, 2007 @ 9:24 PM

Beirut- For the first time, Campagnia, the brand name of organic products produced by World Vision Lebanon's SABIL (Sustainable Agri-Business Initiative in Lebanon) grant, went international

http://yalibnan.com/site/archives/2007/01/05/campagnia.jpg

by participating in the fourth edition of the Dubai's Middle East Natural and Organic products Expo 2006.

The 2 day exhibition in December featured 100 exhibitors from all around the world, and according to Helena Fehayly, BioCoop Lubnan's marketing specialist, was a 'huge visibility success' for Campagnia.

'The recent war on Lebanon and the current volatile political and economic situation in Lebanon have negatively affected Campagnia which suffered a 60 percent drop in sales during the past couple of months,' she said. So this exhibit came at the right time, as our contacts will allow us to make future deals and export our products with various countries in the Gulf and in Europe, hopefully,' Fehayly said, adding that in terms of quality, Campagnia far outstrips the 100 other exhibitors.

The exhibit also helped us establish contacts in various countries such as Italy, Kuwait and Abu Dhabi,' Fehayly said.

'Most of the other GCC exhibitors were still in their preliminary stages of organic farming, still figuring out strategies and looking for best recipes, while we were literally pioneers in the field,' Fehayly said.

SABIL, a two- year organic agriculture project in Lebanon mainly funded by the United States Agency for International Development (USAID) aims at supporting and reactivating BioCoop Lubnan, the first Lebanese cooperative for organic agriculture – funded in 2001 by a group of concerned agriculture engineers who were striving to introduce organic farming in Lebanon - through strengthening the organic agriculture infrastructure by providing 'extension, demonstration and training services' to BioCoop Lubnan farmers.

As a successful result of the WVL USAID project around 160 farmers are currently enrolled in BioCoop Lubnan.

The 160 BioCoop Lubnan farmers are spread in 61 Lebanese villages covering an approximate area of 471 hectares. Those farmers are reached out through five Extension, Demonstration and Training Centers (EDTC). The fives centers are located in the North specifically in Bsharre district, the Bekaa specifically in Zahlé district, and the south which encompasses three growth poles namely East Sidon, Nabatiyeh and Marjeyoun and include open fields, greenhouses, nurseries and compost unit to test for improved varieties and the best combination of material (in case of compost).

BioCoop's four main goals are: to be able to function as a strong independent cooperative, to be able to fight for farmers' rights, to be able to expand more in the Lebanese national market, and most importantly to be able to establish an international market.

Picture: Issam Ghobril (left), BioCoop Lubnan's manager at the Dubai exhibit.

Source: Reuters

Phoenician Empire

January 9th, 2007, 12:28 AM

Ski season gets off to rocky start in Faraya

Businesses reel from impact of bad weather, political turmoil
By Nour Samaha
Daily Star staff
Tuesday, January 09, 2007

FARAYA: The ski season got off to a rocky start last week in Faraya, with the slopes opening prematurely and the weekend's bad weather preventing snow-lovers from hitting the slopes.

Businesses in Faraya that rely on the ski season have suffered, both from the weather and from the current political situation.

Mayor Tony Mehanna, complained to The Daily Star about the lack of skiers this season. Sitting in Mzaar Sport, the ski shop he owns in the heart of Faraya with his wife Helene, he explained that the season has yet to be profitable.

"This season has been really bad. Usually, the majority of our business comes from foreign visitors, but this year, very few foreigners have come to Lebanon," he said.

"It is probably because of the current political situation. The demonstrations in Beirut have stopped foreigners from coming to Lebanon. But the fact that the season started late hasn't helped either. Until this weekend, there was really very little snow," he explained.

Tony's wife said storms over the weekend only made the already miserable start of the ski season worse, as they also discouraged the locals from making the journey to Faraya.

"Weekends tend to be our busiest times. But as you can see, there is barely anyone in the shop this weekend. Today we have only had about 40 or 50 customers. Normally, even in bad weather, you can't get through the door because there are so many people inside. In previous seasons we have had an average of about 300 customers a day over the weekends. This clearly is not happening this year," she said.

Faraya received approximately 60 centimeters of snow this weekend, reaching as low as 1,300-meter of altitude. This snow was badly needed, but according to the Mehannas, the storms kept the locals away, making Sunday another bad day for business.

They say that that the majority of their revenue originates from foreigners who come to spend their winter holidays in Lebanon, as tourists are generally more willing to ski at any time, rain or snow. But this season, the Mehannas say that only 20 percent of those who have come through their door have been foreigners.

"The local Lebanese don't tend to come when the weather is bad, as they have the opportunity to come back once the weather is better. It is usually the foreigners - the Europeans who work in Dubai, the Arabs from other states in the region, the ambassadors from neighboring countries, and the Lebanese living abroad - that will ski in any condition. This is who we usually depend on," said Tony.

In order to entice more people to purchase and rent equipment, the Mehannas have introduced discount rates. But even though they have made their prices more attractive, the couple fears that the bad start to the season may continue as a result of the tense political situation. They say that their profits are not even half of what they were last season.
http://www.dailystar.com.lb

By mid-afternoon on Sunday, the usually crowded parking lot was almost empty. There were only three cars, and the slopes, usually over-flowing, contained at most a dozen dedicated visitors.

Two of those were snowboarders Zard Zard and Nial Kazendar. After weaving their way down the empty slope, they took a break in a near-deserted coffee-shop at the foot of the slope.

"We first came when the slopes opened last week. But there were a lot of rocks, as not enough snow had settled. So we came today, because this weekend there was a lot of snow," said Zard.

Kazendar, originally from Germany but currently living in Dubai, added: "I'm going back to Dubai tomorrow. I wanted to have a go on the slopes before I left, and today was really the last chance I had."

The previous week - when the slopes first opened - had proved to be more dangerous than enjoyable for the two men. Despite the fact that there was not enough snow to completely cover the slopes, the municipality insisted on opening them to the public.

"Whoever is in charge needs to be more honest. The slopes didn't have enough snow and it was dangerous," said Zard.

It was so dangerous in fact, that Kazendar injured himself.

"I went over some rocks that were barely covered and injured my ribs," he said.

He also complained that the operators of the ski-lifts were not even properly informed about how much snow was on the top of the mountain.

"Even today, before we went up on the lift, we asked the controller if there were any rocks at the top. But he had no idea," he said.

Apart from Zard and Kazendar, few people were adventurous enough to take to the slopes in the harsh weather conditions on Sunday.

"You can't see anything. Literally, you can't see what is right in front of you. When it's like this, it stops you from letting go and going fast down the slopes," Zard complained.

Eglia Zghraib, who owns the ski-rental store Pic Blanc Ward in Faraya, said that by midday he had only had three customers. "This season has not been good for us. Today we have had very few people, and it has been the same all week," he said.

"We haven't had any foreigners - only Lebanese, and then only the Lebanese who live abroad and are here on holiday," Zghraib said. "We just hope that the situation in Beirut improves. Otherwise, we will really suffer."

Zghraib is not alone. Both skiers and business owners are hoping that by next weekend, they will have seen an improvement - in both weather and political conditions.

Phoenician Empire

January 9th, 2007, 06:49 PM

Olive Farmers Benefit from U.S. Support
Posted on: 08/01/2007 10:23:00 ص

Partnership for a Better Life

The United States is helping unemployed people in Lebanon get temporary agricultural harvesting jobs aimed at helping them rapidly restore their communities and resume sustainable economic activity following recent conflict.

In one example of support provided under the Humanitarian Assistance for Lebanon -- or HAL -- initiative, an olive harvesting project was launched in Zogharta in north Lebanon. Implemented by the Cooperative Housing Foundation (CHF) and its local partner, the Rene Moawad Foundation (RMF), the project also aims to help olive farmers harvest their orchards by providing increased access to harvesting equipment that was destroyed during the conflict.

The project matches underemployed community members with olive farmers to increase the availability of labor while decreasing labor costs. The project was aimed at directly benefiting 800 farmers in the harvest and in maintaining their livelihood.

In addition, 300 individuals would benefit from cash-for-work opportunities during the olive harvest period.

Overall, the HAL program targets nearly 5,400 people who are involved in olive harvesting or fisheries, or are receiving post-conflict psychological support. In another HAL project providing temporary agricultural jobs, approximately 250 cash-for-work beneficiaries -- farmers, unemployed and students -- helped sort, store, pack and transport for distribution locally harvested apples, linking apple farmers to marketing outlets through the Central Agricultural Market project, which is funded by the U.S. Agency for International Development (USAID).

source: http://www.rebuildlebanon.gov.lb/english/f/NewsArticle.asp?CNewsID=749

Phoenician Empire

January 9th, 2007, 06:51 PM

Paris III Paper

http://www.rebuildlebanon.gov.lb/images_Gallery/Paris%20III%20document_Final_Eng%20Version.pdf

Prime Minister Speech

http://www.rebuildlebanon.gov.lb/images_Gallery/PM%20Speech%20For%20Paris%20III.doc

Beiruti

January 9th, 2007, 08:31 PM

^^ Thanks for posting this Libano!

Tripolis

January 12th, 2007, 06:49 PM

indeed.. however, the information is rehashed from previous documents. we have all heard these same concepts over and over again, efficient capital markets, privatization of Electricite du Liban, fiscal reforms...

there is no question this is vital for the Lebanese economy, but let's hope for implementation this time around.

Jayme

January 17th, 2007, 02:44 AM

BEIRUT: Lebanon and Cyprus are expected to sign an agreement today delineating a boundary through possible undersea gas reserves lying between the two countries. A median line on the continental shelf will designate an "exclusive economic zone" for each side, paving the way for the exploration - and potential commercial drilling - of Lebanon's likely offshore gas deposits, and maybe its future energy independence.

Under a contract signed in May 2006, the Norwegian energy consulting firm PGS recently initiated a 3-D seismic survey to determine the volume of exploitable hydrocarbon reserves off the coast of Lebanon.

Data has yet to be processed because PGS is still in the beginning stages of exploration, a source close to the Ministry of Energy and Water said on condition of anonymity. While the early results have been "encouraging," he said, PGS is still "far away" from estimating the volume of existing gas reserves. So drilling is still a distant prospect.

Nonetheless Cypriot Foreign minister Yiorgos Lillikas is expected to sign an agreement with Lebanon's director of land and maritime transport today, after less than a year of bilateral negotiations.

"[The agreement] concluded very fast because it is in the economic interests of both countries," said a representative of the Cypriot Embassy in Lebanon. "When you define boundaries between two states, you lay foundations for future exploration and you can invite foreign companies to drill. If there is gas and petrol underneath, we will both win."
http://www.dailystar.com.lb

Once the perimeter of each country's energy-extraction zone takes effect, the Ministry of Energy and Water, formerly run by resigned Hizbullah member Mohammad Fneish, will be responsible for commercial exploration and future drilling contracts.

Cyprus, whose estimated

6-8 billion barrels of undersea hydrocarbon reserves are worth $400 billion according to some estimates, signed an "exclusive economic agreement" in 2005 with Egypt, which like Lebanon lacks the necessary petroleum legislation to encourage foreign investment.

Instead, contracts with foreign investors or firms are passed by Egyptian Parliament in separate laws. Lebanon will not go this route, a source said on condition of anonymity.

The foreign investment necessary for the exploitation of Lebanon's possible undersea gas deposits is contingent on the Cabinet's approval of Fneish's draft petroleum law, the source explained.

"Even though our minister has resigned he's still interested in pushing things forward with the petroleum law, because not having one is not very modern," he said, declining to offer a projected date for a law's passage.

Hassoun

February 10th, 2007, 05:59 AM

Lebanon to sell both mobile firms in 2007
Friday, 9 February, 2007 @ 7:25 PM
By Yara Bayoumy

Beirut - The Lebanese government expects to get as much as $7 billion from the sale of the country's two mobile telephone companies after opening them to bidding later this year, the telecommunications minister said on Friday.

http://yalibnan.com/site/archives/2007/02/09/marwan%20hamadeh.jpg

“Our valuation estimate is $2.5 billion to $3.5 billion for each license ... We are preparing for eventual international bids,” Marwan Hamadeh told Reuters in an interview.

The telecoms regulatory authority expects to start receiving bids in September or October for Alfa and MTC Touch, he said, adding that he had already been approached by top European and Middle Eastern firms who were interested.

Last month, Prime Minister Fouad Siniora's government proposed to international donors a series of reforms to help the recovery of its war-damaged economy, including the “sale of a majority stake in or 100 percent of the mobile sector companies” and use of the proceeds to reduce public debt.

The government has carried forward with the privatisation process, overriding the opposition of pro-Syrian President Emile Lahoud.

Citigroup Inc. and JPMorgan Chase & Co. have been named as lead managers in the deal.

“We have already charged, asked and dealt with Citigroup and JP Morgan to prepare the privatisation of the two mobile companies. They are well advanced in their work,” Hamadeh said.

Lebanon has 1.1 million mobile phone users out of a population of roughly 4 million. The minister said he expected user numbers to increase to 3 million in the next three to five years.

The gross revenue of the telecommunications sector in Lebanon amounts to about $1 billion a year, he said.

Hopes for Growth and Competition

Lebanon's infrastructure at the best of times has been fragile due to destruction during the 1975-1990 civil war, while less developed countries in the region have become more advanced in the telecommunications sector.

Last year's war between Hezbollah guerrillas and Israel contributed to the destruction.

Hamadeh says the privatisation should lead to the growth and development of Lebanon's mobile services. He hopes it will bring more competition to the market, because Lebanese law allows no price changes until the companies are privatised.

Lebanon's mobile phone charges are among the most expensive in the Middle East. Post-paid customers pay 13 cents per minute, while usage costs as little as 4 cents per minute in Egypt and 9 cents per minute in Saudi Arabia.

Lebanon has no high-speed, third-generation (3G) capabilities yet, but Hamadeh said he hoped the companies buying the licences would introduce that.

“Voice is going to decline in quantity. What we need are the new 3G products. We need this growth,” he said.

Hamadeh said that apart from the privatisation, improvements would be made to the telecoms industry.

“Blackberry will be introduced in the next two to three weeks. I would like to think that the greater Beirut area will have DSL (digital subscriber lines) operational from March.” DSL is a technology that enables broadband Internet transmission over standard copper phone wires.

“Our broadband capacity will increase ... to 10 gigabytes,” from 150 megabytes currently, Hamadeh said.

Source: Reuters

nareg

February 10th, 2007, 10:52 AM

^^ Excellent step.
Hope that what mentioned above gets implemented in the near-future.

Hassoun

February 13th, 2007, 04:37 AM

Hopefully.

Lirtain

February 13th, 2007, 07:23 AM

Portuguese cement firm buys control of Sibline

By Michael Bluhm
Daily Star staff
Monday, February 12, 2007

BEIRUT: Secil Cement, Portugal's second-largest cement producer, has gained majority control of third-ranked Lebanese cement-maker Sibline. Secil raised its ownership stake in Sibline to 50.5 percent with a $37.3 million deal last week to acquire 21.9 percent of the Lebanese company's shares.

Nicholas Nahhas, Sibline's general manager, told The Daily Star on Sunday that his company is not planning any major changes as a result of the new ownership structure and that Secil's motivation for the deal was "consolidation."

Secil also has holdings in factories in Tunisia and Angola, and its controlling share in Sibline should ensure markets for Sibline by strengthening its links to an international network, Nahhas said. Sibline has been unable to take advantage of higher cement prices in Syria and cannot transport cement overland to the booming market in Iraq, because Sibline's products are not welcome in Syria - Walid Jumblatt, leader of the Progressive Socialist Party and a fierce critic of Syria, is a key shareholder in Sibline.

"[Secil] has a strategic link that could serve very well when we are in a down cycle," Nahhas said. "The most important thing is that now a majority is in the hands of one [owner]."

Sibline, which did not have a majority owner before Secil's acquisition, should also benefit from greater access to Secil's know-how and technology, Nahhas said.

The deal was an apparent windfall for Jumblatt, who sold 4 percent of his 24-percent stake in Sibline. As a percentage of last week's deal, Jumblatt's shares fetched about $4.9 million.
http://www.dailystar.com.lb

Secil should take majority control of Sibline's board of directors at a meeting at the end of March, after 2006 accounting is completed. Nahhas, who has worked at Sibline for 26 years, said he could not rule out management changes although no one has told him of any impending moves.

The acquisition should not affect the Lebanese market significantly, because Secil was represented on Sibline's board and exercised control before with its stake, said Jamil Bou Haran, business development manager at Lebanon's market leader Holcim, part of the Swiss multinational.

The purchase does demonstrate the willingness of multinational firms to invest in Lebanon despite the country's deep political turmoil, said Pierre Doumet, general manager of Cimenterie Nationale (CN).

"I think it's a vote of confidence in Lebanon that these guys are increasing their stake now," Doumet said. "It's a positive for the country. I guess these guys are thinking long-term.

"I don't see it as a big change [for Sibline] - maybe it will strengthen the general finances of the company. If I were a new company, I would be worried - Lebanon is kind of saturated right now."

Sibline has an annual production capacity of about 1.1 million tons, trailing CN's 1.7 million tons and Holcim's 2 million tons; CN should increase capacity this year to 2 million tons thanks to new investments.

Sibline was founded in 1974 by a group of businessmen and politicians but did not begin producing cement until 1988.

http://www.dailystar.com.lb/article.asp?edition_id=1&categ_id=3&article_id=79437

Hassoun

February 14th, 2007, 02:09 AM

Good news :)

Lirtain

February 21st, 2007, 06:01 AM

Local equity fund buys part of Jordanian meat maker
By Michael Bluhm
Daily Star staff
Tuesday, February 20, 2007

BEIRUT: Lebanon's private-equity EuroMENA Fund concluded a $3.2-million investment in a Jordanian meat distributor on Monday, one day after the Algerian government awarded EuroMENA and its French partner exclusive negotiating rights in the privatization of the state-owned paint-making company.

EuroMENA's Jordanian partner, Jordinvest, will make an identical investment in the company, which is the market leader in cold cuts and sandwich meats in Jordan and Palestine, said EuroMENA managing director Romen Mathieu. Mathieu would not divulge the name of the company, which has annual sales of about $20 million.

In general, private-equity funds inject capital into promising firms in exchange for equity, almost always with a time limit to exit the ownership positions, typically either through sale to a strategic investor or an offering on a capital market.

EuroMENA's deals show private equity is gaining a toehold in the region - in Lebanon, the sector stands so untapped that managers of the country's four private-equity funds remain friendly enough to bring each other deals.
http://www.dailystar.com.lb

The capital infusion will fund expansion of the company's meat-processing plant, with an eye toward boosting market share in the Gulf.

"We don't believe in investing in a local company that remains local," Mathieu told The Daily Star on Monday.

The strategy of the $113.5-million fund, which launched operations in March 2006, is to invest in MENA companies with growth potential and turn them into regional powerhouses.

"I'm very happy for my friend," said Paul Chucrallah, a principal in Byblos Investment Bank's private-equity vehicle Byblos Ventures, about Mathieu and the new investments. "I'm still of the opinion that private equity will have a defining impact on the business landscape of the region.

In Algeria, EuroMENA should invest about $6-7 million for a stake in ENAP, the state-owned paint company with annual sales of about $135 million on production of 100,000 tons of paint. EuroMENA will acquire 10-15 percent of ENAP, while the majority will go to Materis, Europe's second-largest paint-maker.

Hassoun

February 21st, 2007, 12:12 PM

Walla nice,lebanese companies going regional :)

Hassoun

April 3rd, 2007, 05:50 PM

Union of Arab Banks opens local flagship
Move seen as vote of confidence
By Osama Habib
Daily Star staff
Tuesday, April 03, 2007

http://www.dailystar.com.lb//admin/storage/articles/200742223790.8-bankk.jpg

BEIRUT: Prominent figures from the country's financial community convened on Monday for the official opening of a new Arab Finance House headquarters in the Mina al-Hosn area of the capital. The headquarters will serve as a local flagship for the Union of Arab Banks (UAB).

Central Bank Governor Riad Salameh, UAB president Joseph Torbey and Association of Banks in Lebanon president Francois Bassil were among the figures inaugurating the new 10-storey building.

Founded in March 1974, the Union of Arab Banks comprises more than 300 regional lending institutions.

Salameh hailed the opening of the new headquarters as a sign of confidence in the future of Lebanon and determination to maintain the country as regional banking center.

Salameh said the government had managed to preserve the stability of the Lebanese pound despite difficult conditions in the country.

"The continued Arab support and Paris III donor conference have cemented this stability and helped boost the balance of trade payments as well as increase the Central Bank's foreign currency reserves," Salameh said.

He projected a stability for the Lebanese currency in 2007, adding that the interest rates on local and foreign currencies would remain the same.

But Salameh suggested that reducing the cost of borrowing in Lebanon was not feasible in the near future.

"A reduction in the cost of borrowing in Lebanon is linked to a drop in sovereign risk and this is linked to a suitable political environment and the implementation of reforms," he said.

He added that the International Monetary Fund (IMF) is expected to monitor the execution of reforms in the country.

"Lebanon must implement all the reforms without any dictations from the IMF. But any delay in these reforms will only smear our reputation which is the most important capital for our country," Salameh said.

A team from the IMF has recently concluded meetings with officials from the Finance Ministry and leading bankers to assess the fiscal situation after the Paris III conference.

The IMF is expected to release a report on Lebanon soon, outlining the strength and weaknesses in the reform proposals submitted by the government during the conference.

But many rating agencies expressed fear that the political deadlock may delay reforms and if this happens the public debt will reach more than $43 billion in 2007.

Torbey also hailed the opening of the new headquarters.

"First, I would like to point out that the Union of Arab Banks succeeded in accomplishing great successes during the past years in developing and expanding its activities and roles on the banking and economic fronts," he said.

Torbey said that that the UAB has deemed it necessary to expand, develop, maintain and consolidate its relationship with regional and international organizations and institutions specialized in banking, finance and economy.

"In this respect, the UAB has gained strong and special international business relationships with the United Nations and its agencies and affiliates, in addition to many financial and economic institutions such as the World Bank, the IFC, the OECD and others," Torbey said.

The UAB comprises financial and banking institutions including the biggest Arab banks.

The members of the Union consist of two categories. The first category combines active members and includes all Arab banking, financial, and investment institutions and joint Arab foreign banking institutions. The second category combines observer members and includes Arab central banks, Arab banking associations and joint Arab-foreign institutions.

Lirtain

April 4th, 2007, 04:51 AM

^^ I wonder where's the exact location of this 10 storey new building in Mina al-Hosn

The ground floor looks nice in the pic

Hassoun

April 4th, 2007, 04:48 PM

^^They say it's infront of the Holiday Inn hotel.

Hassoun

April 14th, 2007, 03:56 AM

Ace Hardware to open 6 stores in Lebanon
Friday, 13 April, 2007 @ 6:42 PM

http://yalibnan.com/site/archives/2007/04/13/ace%20hardware.jpg

Beirut- Ace Hardware said Thursday it plans to open six stores in Lebanon in the next decade. The Oak Brook-based hardware co-operative said its first store in the Middle Eastern country is under construction and will open in Beirut next spring.

The effort is part of Ace's plans to expand its name globally, said Mel Gregory, Ace International Regional Director . Ace already has members that operate stores in 65 countries, including the United Arab Emirates, Kuwait, Saudi Arabia and Israel.

Sources: Chicago Sun Times

Phoenician Empire

April 14th, 2007, 09:44 AM

#############################

Beiruti

April 15th, 2007, 04:51 AM

I wonder where this new hardware store is located (that is currently U/C)?

Jayme

April 16th, 2007, 01:22 AM

BEIRUT: ABC Group, Lebanon's largest retail developer, is expanding into Jordan and Bahrain, an example of yet another Lebanese company seeking customers abroad with the local market either saturated or suffocated by the continuing political turmoil. ABC Group opened an outpost in Bahrain's Seefa mall two months ago and will christen a branch at Amman's Al-Baraka mall in October, said ABC marketing manager Tania Ezzedine. The expansion plans were hatched long before last summer's war with Israel, as ABC covered the domestic market with outlets in Tripoli, Zahle and Kaslik, in addition to its various Beirut locales.

Along with ubiquitous brands such as Virgin and Aishti, ABC falls into the category of merchants for whom regional growth came naturally as they neared the limits of the relatively small Lebanese market, while other enterprises have turned their sights abroad only in the wake of the economic devastation caused by the war and the ensuing political turmoil.

The political squabbling has paradoxically helped keep sales afloat at ABC during the economic malaise, as shoppers have continued to flow into ABC's mall in Achrafieh with most shops closed in the Beirut Central District. In spite of the war and its aftermath, revenues for 2006 at ABC in Achrafieh exceeded the numbers from 2005, while income at the Dbayyeh flagship was roughly the same as the previous year.

"We're doing very well here despite what's happening," Ezzedine said.

ABC poured about $6 million into its 1,500-square-meter Bahrain store, which will offer mostly women's fashions. The branch will have a staff of approximately 20 employees, compared to the 100 planned for the 4,500-square-meter department store in Amman. The Jordan ABC will resemble the Achrafieh one, with boutiques for the Chanel and Kookai brands.

Next year could also see branches in Kuwait, Qatar and Syria for ABC, which has estimated assets of more than $100 million. The Fadel family owns 80 percent of ABC Group, with the remaining equity dispersed among some 100 shareholders.
http://www.dailystar.com.lb

Strong balance sheets also typify other big-name Lebanese companies that put up shingles elsewhere in the region. Among restaurants, for instance, recognizable names such as Kabab-ji, Crepaway, Casper & Gambini's and Water Lemon have launched outposts throughout the Middle East over the past few years.

On the other hand, other eateries such as Al-Balad have decided to try their luck across the border when faced with the daunting political and economic climate at home, said Paul Ariss, president of the Syndicate of Restaurant and Cafe Owners. The Larissa bakery, another case in point, has recently opened outlets in Jeddah and Riyadh.

Whether a company has planned expansion for years or been pushed into it by the circumstances, the moribund Lebanese market allows entrepreneurs to devote more attention to foreign ventures, said Aishti CEO Tony Salameh.

"Because of what is happening here, we're going faster and faster," said Salameh, who opened a branch in Jordan a week ago. "Sometimes it's easier when you're not really busy here. Instead of sending people home, you can send them abroad."

With sales flagging here, Salameh has sent some of Aishti's Lebanese staff to Jordan, and with branches slated for Bahrain and Qatar in the next 12 months, other personnel might follow. With a Dubai shop launched in 2005, Aishti's expansion has been a long-term project independent of the war, and ambitious Lebanese traders have traditionally eyed foreign markets because of the limited dimensions of their home turf.

"Lebanese think they have the know-how," Salameh told The Daily Star on Sunday. "In the long run, everybody had that strategy. The market now is saturated - the market is becoming more and more regional."

Dailystar

Lirtain

April 18th, 2007, 10:20 AM

Intel gears up to give Lebanon high-tech boost ceo Craig Barrett details broad development plan
By Rami G. Khouri
Daily Star staff
Tuesday, April 17, 2007

NEW YORK: Craig Barrett, chairman of the global leader in microprocessors Intel, has already made a pretty serious contribution to changing the way much of the world operates in the fields of business, technology, entertainment and communications. Now, he says, he and his colleagues in the high-tech communications and computer business want to promote change and expand opportunity for every child in the world, through partnerships with governments and private sectors in scores of countries.

He will bring that endeavor to Lebanon on Tuesday when he arrives to announce a series of new initiatives that aim to help the reconstruction of Lebanon in a manner that goes beyond traditional assistance for short-term infrastructure repair or construction.

"Intel and several other private companies in the information and communications technology (ICT) sector are partnering with the private sector, universities, the government and professional associations in Lebanon to promote long-term well-being through four main channels: economic development, education, healthcare and connecting Lebanese communities to the world," he told The Daily Star in an exclusive interview in New York earlier this week.

Intel and other large ICT firms have already worked around the world through the UN-sponsored alliance for development through private-public sector partnerships. The Lebanon initiative is part of a growing new approach that sees Intel and other private sector companies working with non-governmental partners to bring the power and possibilities of information and communication technologies to vast new beneficiaries in the developing world.

"We have already launched programs to train teachers and equip schools in countries like Brazil, Turkey, China and Egypt. In Lebanon we want to respond to the unfortunate post-war circumstances by developing opportunities for private sector partnerships that focus on creating job opportunities, training workers, enhancing the education sector, promoting entrepreneurship and generally connecting communities to the world through ICT," he explained.

Intel will announce a series of initiatives in these fields, along with healthcare diagnostics that connect hospitals in Lebanon with leading facilities around the world. One aspect of this program, already under way, will offer some 500 young Lebanese internships in Lebanon and abroad.

Barrett did not sense any constraints or obstacles to this effort due to the turbulent political situation in Lebanon and the region. He explains this by noting that the work focuses on fundamental human and national development needs that serve all Lebanese and transcend political disagreements, such as education, job creation and better healthcare.

The advances in technology also give Lebanon an opportunity to leapfrog over some developmental stages, by adopting wireless broadband technology in communities that had been held back due to lack of advanced wired communications networks, he said. Remote communities, in particular, can make a leap forward in education, healthcare, commerce and other fields when they connect to the global Internet.

"We've seen this happen in several countries already where we worked with local partners to set up wireless broadband connections in rural and remote areas. Teachers and kids were the first to make use of the technology, and in most cases it instantly transformed their lives and conditions in their communities," he said.

Working with millions of teachers in over 35 countries, the Intel Teach program has been driving systemic change in teaching and learning since 1999. Teachers learn from other teachers how, when and where to incorporate technology into their lesson plans, with a focus on developing students' higher-order thinking skills. They experience new approaches to create assessment tools and align lessons with educational learning goals and state and national standards.
http://www.dailystar.com.lb

Intel's World Ahead Program has worked throughout the globe to expand the use and impact of advanced technology and communications in four primary areas: greater accessibility to computers and networks; expanding connectivity in remote areas through wireless systems; working with local authorities and non-governmental groups to enrich the content of computer and communications systems; and using ICT in schools to improve education.

Barrett became chairman of the board of Intel Corporation in May 2005, having previously served as president, chief executive officer, member of the board and chief operating officer. He was an associate professor at Stanford University in the Department of Materials Science and Engineering before joining the company.

Nearly 5 million teachers around the world are being trained in new communication technologies, and a key priority now is to rigorously evaluate the long-term, real impact of connecting communities to the global ICT network. One means of doing this is to work closely with local partners, especially in non-governmental sectors, so that newly introduced systems are well integrated and lasting. Intel's chairman said that he and his colleagues are very aware of the shortcomings that some other foreign aid and development efforts suffered by bringing assistance to a community and then seeing the progress stop suddenly when the foreign donor departed.

One way to ensure this is to foster dynamism in the private sector, especially in entrepreneurship and job creation. The new initiatives in Lebanon aim to do this by promoting incubation of new businesses, seed funding for start-up firms, and basic entrepreneurial skills. "It's important for the government to ensure basic needs like clean water and health, and for the state and society to work together to promote quality education. You then need a robust business community to create the new jobs that will absorb the talented young people coming out of high school and college. Ireland showed the world a few years ago how a country that exported its youth because of insufficient opportunities at home transformed itself into a magnet for young talent that reversed its former brain drain and now sees a net repatriation of its talented and experienced workers and entrepreneurs," Barrett explained.

Two key elements for this to happen in Lebanon or other countries that export its educated youth, he suggested, are expanding the local ITC infrastructure and encouraging much more local content, whether in commerce, education, entertainment, media or other sectors. Barrett added that an expanding ICT sector that prods foreign and local investments also promotes sound legal foundations for business, such as investment rules, guarantees, exit strategies and general commercial codes and statutes.

"Business codes that attract investment go hand-in-hand with expanding entrepreneurial opportunities and creating jobs, he concluded, pointing to India and China's rapid and sustained recent economic performances that were partly facilitated by clear foreign investment rules.

All governments he had dealt with, Barrett noted, shared the common goal of driving economic development that comprised new investments, creating quality and high-paying jobs, raising the standards of the work force, improving education systems, and expands citizens' opportunities in general.

Jayme

May 8th, 2007, 02:28 PM

Beirut & Dubai - Middle East Airlines and the Lebanese Ministry of Tourism to take part in the Arabian Travel Market 2007

Middle East Airlines, Lebanon official carrier has announced its promotional packages for the upcoming summer season during a press conference held today at the Bustan Rotana Hotel, in the presence of major tour operators and travel agencies from the UAE and the Middle East.

The airline also asserted its involvement in the Arabian Travel Market 2007 which will take place at The Dubai World Trade Center from the 1st to the 4th of May.

In this matter, Elias Awad ( picture right) , General Manager of the company in the UAE declared ''Middle East Airlines has been enthusiastically participating in the Arabian Travel Market since its inception and under the patronage of the Lebanese Ministry of Tourism''. A Lebanese pavilion will congregate a large number of Lebanese travel agencies and tour operators as well as hotels and resorts all put together with the aim of promoting and emphasizing Lebanon as an ideal sightseer's destination for its idyllic summer climate, its amazing and diverse landscape due to its perfect geographical location. These few points are essential enough to put Lebanon on the map of regional and worldwide traveler's destination.

Awad also stated, ''It's with pleasure that we want to introduce our future visitors to the launch of our campaign insisting on the fact that Lebanon as a tourist destination, will always be on the top of mind despite the dramatic episode the country has been trough. We at Middle East Airlines, Ministry of Tourism and all the other components of tourism in both private and public sectors, are always striving to offer the most interesting promotions, services and offers specific to each season across the year.''

The program for this summer consists of several packages with very competitive prices to feed the needs of our incoming visitors from Dubai and Abu Dhabi with of course the support of all our local tourism constituents in order to offer the best packages in which we include various hotels and resorts, sightseeing all over Lebanon. MEA summer packages will include , roundtrip tickets, airport -hotel - airport transfers , hotel stay starting from 3 nights including breakfast in 3, 4, and 5 stars hotels, car rental and for the first time, this summer the package comprise SPA treatment.

Awad concluded '' Lebanon will always be up to date in world wide trips destinations due to its particular weather, landscape, relaxing atmosphere as well as its cultural and artistic events.''

Sources: AME , Ya Libnan

Hassoun

May 10th, 2007, 02:23 AM

Beirut promises to slash time and cost for registration of new businesses
Economy minister will submit slate of reforms to Cabinet next month
By Michael Bluhm
Daily Star staff
Wednesday, May 09, 2007

BEIRUT: The time and cost to register a business in Lebanon should be reduced by as much as 40-50 percent by the end of this year, according to a plan endorsed by the Economy Ministry on Tuesday. Economy Minister Sami Haddad said he would submit a slate of reforms to the Cabinet next month to streamline the cumbersome registration process for newly created businesses, with the intended goal of boosting employment and tax income. The proposed reforms would not require the approval of the dormant Parliament so could be in place by the end of 2007, Haddad told The Daily Star Tuesday.

The changes would allow prospective entrepreneurs to collect all necessary forms at any branch of LibanPost. After preparing the required documents, visiting a notary, and setting up a bank account, entrepreneurs will also be able to submit all the paperwork and pay all fees from a LibanPost branch. The government plans to issue a guide in Arabic and English with templates for documents such as company by-laws, subjecting business people to minimal levels of legal assistance mandated by existing legislation.

These short-term reforms within the Business Registration Simplification Project unveiled Tuesday, should cut the registration process to six days and reduce fees by about $2,000, roughly half of the best-case minimum scenario today.

Streamlining registration will not only address the goals of job creation and increasing the tax base, but will hopefully facilitate Lebanon's entry to the World Trade Organization (WTO) since it has received failing marks on the issue from the World Bank.

The WTO is requiring Lebanon to rewrite registration laws, and the World Bank ranked Lebanon 116th out of 175 countries in its Ease of Doing Business Survey, behind Sudan, Morocco and Tunisia among Arab countries. Founding a business in Lebanon takes an average of 46 days and costs the equivalent of 110 percent of the country's per capita GDP, while in Tunisia, for example, the procedure takes an average of 14 days and costs 10 percent of GDP per capita.

But more long-term reforms needed to improve Lebanon's business environment- such as eliminating initial capital requirements and the use of a lawyer, notary and auditors - would require new legislation and the approval of Parliament, which has not met since November. Lebanon's WTO entry will be stalled until the mandated legislative reforms are approved, said Lama Oueijan, an adviser to Haddad, who is leading the country's WTO negotiations.

"It has to be done very

soon or else we'll stay outside the WTO," Oueijan said. "The WTO member countries would like to see real progress. From the Lebanese side, there is no defense for maintaining [the existing business registration process]. It's a violation of one of the major principles of the WTO."

Oueijan said she would prepare drafts of WTO-compliant legislation for Haddad by the

end of the week. However, when Parliament does convene again, powerful professional associations with vested interests in conserving the bureaucrat labyrinth will lobby to kill any such legislation, warned Finance Minister Jihad Azour. For instance, the Bar Association derailed a bill to revise

the regulations for offshore companies, because the proposal reduced obligations for legal counsel.

"Lebanon lost millions of dollars and thousands of jobs because of the opposition of the Bar Association," Azour said. "The Bar Association is preventing the reforms from taking place. The same for the notaries, the same for the judges."

Azour said he was willing to slash registration fees almost to zero, because such charges mean little to the treasury. The state's coffers depend instead on tax income, which would undoubtedly rise with the elimination of obstacles to registering and doing business.

"I'm very happy to remove" the fees, he said. "If we mean business, we have to do it."

Hassoun

May 10th, 2007, 02:26 AM

Builders celebrate as cement makers push middlemen to the sidelines:banana:
Direct sales help reduce prices driven by smuggling to syria
By Michael Bluhm
Daily Star staff
Thursday, May 10, 2007

BEIRUT: Lebanon's three major cement producers have launched direct deliveries of cement to builders in an attempt to counteract spiraling retail prices driven up by smuggling to Syria.

The last producer to commence direct deliveries, Cimenterie Nationale (CN), has taken the approach a step further by setting up 11 sales points throughout the country where contractors and individuals can buy cement without wholesalers' sizeable mark-ups or delivery fees.

The response from builders has been "overwhelming," said CN general manager Pierre Doumet - all the sales centers had sold out their inventories by early Wednesday afternoon.

CN announced its network in a series of ads taken out in newspapers this week, whereas Holcim and Sibline have undertaken deliveries without similar public fanfare.

Holcim, Lebanon's largest producer, commenced its distribution service about three weeks ago, and deliveries now account for 30-40 percent of all bag sales, said Jamil Bou Haroun, business development manager for the company. Holcim has not fixed a firm minimum order, but it prefers that builders take at least 30 tons.

Sibline, the smallest of the country's three major cement producers, began delivering to various sites at which buyers can pay in cash more than a month ago, said general manager Nicholas Nahhas.

The producers' new vending systems arose because of complaints that wholesalers and other middlemen were charging consumers prices similar to those in Syria, where perpetually low supplies and high import duties have pushed the price to roughly twice the level here. With smuggling to Syria such a tempting option, traders were demanding prices comparable to those in Syria as an incentive not to try the contraband market.

The cement producers' response is "a signal to tell the traders not to be so greedy," said Sibline's Nahhas.

Prices had dropped in Lebanon after the summer 2006 war with Israel, when the three cement companies agreed to the government's request in September to drop the wholesale price to $65 per ton for one year in order to spur reconstruction. Syria charges import duties of about $40 per ton, and a recent construction boom had propelled retail prices as high as $180 per ton, although in past months the price has typically stayed close to $130, industry insiders told The Daily Star.

Including charges for transportation and VAT, the new delivery structure will offer consumers a per-ton price of $80-$90. The Contractors Syndicate, which had led the chorus of complaints about rising prices here, welcomed the introduction of sales points and direct deliveries.

"The problem has been solved," syndicate president Fouad al-Khazen told The Daily Star on Wednesday.

In addition to complaints from contractors and small-scale builders, cement makers also felt pressure from the government to combat the rising retail prices. Representatives from the three majors met on April 26 with Khazen, Finance Minister Jihad Azour, Economy Minister Sami Haddad and Minister of State for Parliamentary Affairs Michel Pharaon.

The state has long backed the industry. In the years after the Civil War left the sector in tatters, cement imports were banned and then slapped with duties, although such protections no longer exist. Now, after moving to keep consumers satisfied, the cement makers want quid pro quo from the government - a serious effort to smother the smuggling trade.

"When three ministers ask me, I try to do the best I can," said CN's Doumet. "We want to be very good corporate citizens. We want to bend over backward. For many years, the Lebanese government has supported us when we were in ruins. Today, the state is saying, 'The consumer has a problem, why don't you guys fix it?' We're telling them, 'You have a great way: Shut the border.' We want the rest of the job done by shutting down the border to illicit exports."

Since the April 26 meeting, where the producers pleaded with the government to address smuggling, the Customs Authority has prepared a new regime for cement trade at the border, Azour said. The new procedures should take effect after Azour meets with customs officials this week to approve the changes, and the minister acknowledged that the market across the frontier was the source of the price problems here.

"The issue is the difference in price between Lebanon and Syria," he said.

nareg

May 10th, 2007, 10:40 AM

German Tourists in Beirut: A Rare Happening
Beirut, 10 May 07, 08:01

http://img220.imageshack.us/img220/9467/35509904vg5.jpg

An Nahar photo shows a German cruise ship docking at the port of Beirut. The daily said the visit by German tourists was the first since last summer's Israeli offensive on the country. It also wondered whether Premier Fouad Saniora's promise last week that summer 2007 "will not be hot" is going to materialize.

AmeriLEB

May 10th, 2007, 06:16 PM

AGIPNEWS4385

10/5/2007 07:13 GMT
ag-IP-news
Lebanon’s Application Moves to Draft Report Phase

GENEVA - At the fifth meeting of the working party for Lebanon’s accession to the World Trade Organization (WTO) on May 3, 2007, members agreed to draft a first report, which will outline the terms of its membership. In parallel, Lebanon will continue to supply information on its trading regime. This process will help Lebanon to comply with the WTO agreements.

According to a press release by the WTO, head of the Lebanese delegation, Economy and Trade Minister Sami Haddad urged members to treat his country’s application sympathetically because of its recent political problems and because, he said, Lebanon has a liberal economy.

A number of Arab, Middle Eastern and developing countries supported Lebanon’s application, either as groups or individually. Speakers included the Arab Group (Morocco speaking), the informal group of developing countries (Paraguay speaking), Tunisia, the Gulf Cooperation Council members (Saudi Arabia speaking), Jordan, the EU, China, the US, Egypt, Chinese Taipei and Canada.

Among the issues members raised were privatization, pricing policies, trading rights, import duty drawback for exports, import licensing, technical barriers to trade (standards), sanitary-phytosanitary measures, free zones, agricultural exports subsidies (some countries want Lebanon to commit not to use these, as has been the case with all other new WTO members), and Intellectual Property (particularly geographical indications and the possible relationship between these and trademarks).

Lebanon has met bilaterally with the US, Cuba, Australia, Chinese Taipei, the EU and Japan but so far none of these negotiations have been completed. Canada has also bilateral talks with Lebanon.

AmeriLEB

May 10th, 2007, 06:16 PM

Thats great news!

Hassoun

May 15th, 2007, 01:41 AM

Siniora Cabinet predicts rise in GDP growth
But outlook depends on successful reform
By Osama Habib
Daily Star staff
Tuesday, May 15, 2007

BEIRUT: The Lebanese government on Monday projected higher revenues and GDP in the coming three years - if all of the reforms presented during the Paris III donor conference are fully implemented. The new projections were included in the 2008 draft budget outline that was submitted on Monday. According to the 18-page document, Lebanon's real GDP growth is expected to reach 4 percent in 2008, 4.5 percent in 2009 and 5 percent in 2010.

This projected growth rate, however, depends on the implementation of higher VAT rates in 2008 and 2010.

The Finance Ministry proposed increasing the VAT rate from 10 percent to 12 percent in 2008 and 15 percent in 2010.

The VAT, first introduced in 2001, is the second largest source of state revenue after Telecommunication receipts.

The government of embattled Prime Minister Fouad Siniora has not submitted the 2007 draft budget and officials say that the premier is waiting for the Parliament to convene to review and approve it. But it is unlikely that the Parliament will convene amid the sharp political divisions in the country.

Lebanon's economic performance was very poor at the end of 2006, as GDP plummeted below zero percent due to the summer war and the ensuing political crisis.

Central Bank Governor Riad Salameh had said earlier that GDP will reach two percent in 2007 and inflation will stand at four percent.

A five-month power struggle between the government and opposition groups has drastically increased the pressure on the treasury.

The budget deficit fell to 32 percent of total spending up to March 2007 with the Finance Ministry attributing the problem to the increased allocations for the electricity sector and the National Social Security Fund (NSSF).

The 2008 draft budget outline said that the introduction of a budget demonstrates the government's credibility to the Lebanese and the international community alike.

"We believe that all the public departments will be committed to the government's reform pledges," the document said.

The Finance Ministry said that the reforms approved by the donor conference in Paris aim at achieving higher growth in the coming few years.

It added that the liberalization of all sectors will allow the private companies to play a bigger role in shaping the Lebanese economy, emphasizing that privatization will be in full swing in 2007 and 2008.

The government hopes to privatize the two cellular networks in the third quarter of 2007 and all the proceeds from this step will be used to reduce the $41 billion public debt.

But it is not clear if the government will be able sell the telecom while the country is embroiled in open confrontation over so many issues.

Finance Minister Jihad Azour has said that privatization does not need the approval of the Parliament.

The ministry also predicted that total spending will fall by 31 percent in 2008 and 27 percent in 2010.

Apart from the cost of debt servicing, the second spending item on the government list is paying the salaries of some 180,000 public staff, including civil servants, soldiers and police officers.

The government said that it will not touch the salaries of public staff but plans to increase the working hours in an attempt to increase productivity.

The 2008 outline also predicted total spending will reach LL12.665 trillion in 2008, LL12.174 trillion in 2009 and LL12.064 trillion in 2010.

On the revenues side, the ministry said total income will rise by 23.5 percent of GDP in 2008 and 24.3 percent in 2010.

Government taxes and indirect revenues are projected to reach LL9.261 trillion in 2008, LL9.195 trillion in 2009 and LL10.499 trillion in 2010.

If the revenues and spending go according to the government's plan, the budget deficit will reach LL3.404 trillion in 2008, LL2.979 trillion in 2009 and LL1.565 trillion in 2010.

Azour said that the economic picture might not be as bleak as it looks, noting that the balance of payments and the inflow of capital have picked up in recent months. "Lebanon has survived many political crises in the past and there is no reason to doubt that the country will be able to override the current problems," Azour said.

He said investors never loose faith in Lebanon and investments will flow into the country as the situation improves.

AmeriLEB

May 18th, 2007, 05:34 PM

LEBANON: BEIRUT PORT REVENUE UP 20%, DESPITE WAR CRISIS
(ANSAmed) - BEIRUT, MAY 16 - The revenue of the port of Beirut has registered a 20% increase despite last summer's war between Israel and Hezbollah and the current political crisis which blocks the country. The number of boats moored at the port of the Lebanese capital increased from 726 to 801 in April 2007, while the cargo handled reached some 1.711 million tons. "Domestic consumption remains high despite the ongoing crisis," port services chief Hassan Koreitem told local L'Orient-le Jour daily. "I believe that the port of Beirut answers the needs of international carriers in terms of both water depth and quality of services," Koreitem added. A series of new projects are underway to promote the development of port activities in Lebanon. (ANSAmed).
2007-05-16 18:10

AmeriLEB

May 18th, 2007, 05:37 PM

LEBANON RIDES REAL ESTATE PRICE HIKE ROLLERCOASTER ***
(by Vittoria Volgare) (ANSAmed) - BEIRUT, MAY 4 - Despite the summer war of 2006 and the current economic and political crisis, Lebanon keeps registering a mind-boggling rise in the real estate market, both in rental and purchase prices. For the past two years the Lebanese housing market has been feverish: buying or renting a flat in Beirut for a reasonable price has become a very difficult task. All types of accommodations registered an increase in prices by 30% and no district has been spared. "In the centre of the city a 200 sq m, three-room apartment costs between USD700,000 and $1 million. In some other areas such as the Christian part of the capital, Achrafiye, very popular among expatriates, rents and purchase prices have gone up even by 40%," real estate agent Nadira Antun told ANSAmed. "We are facing a phenomenon with many causes which began two years ago with the assassination of ex-Prime Minister Rafik Hariri on February 14, 2005," Nadira explains. The first factor which contributed to the phenomenon was the increase in the prices of construction materials which Lebanon imports from Europe. But it was mainly the increase in demand, after the withdrawal of Syrian troops from Lebanon, on April 26, 2005, which pushed up average housing prices. "As of this date, which marked the end of the Syrian military presence, lasted 29 years, in the Country of Cedars," Nadira adds, "many of the Lebanese who were living and working abroad during the years of the civil war of '75-'90 and soon afterwards, started buying houses in their motherland, with the security of being able to go back to a Lebanon no longer controlled by Syrians, and rented them out at exorbitant prices". Experts believe that the demand for new houses will continue in the future, boosted on one hand by a high domestic demand and on the other by the interest shown by the Arabs from the Gulf , who are not afraid to invest in a country hit by a crisis which affects every sector of the economy. "Prices will increase further if the political crisis is not solved,'" Nadira warns. The growing demand for real estate properties in the city pushed up the prices also in the suburbs of Beirut by 20%. In the current circumstances, small houses in the outskirts represent a forced, and often just as expensive, choice for many, because the owners take advantage of the situation. Furthermore, an increasing number of families who do not have the financial means to buy a house, are forced to choose to live in a rented accommodation. And even the quality of what is available on the market leaves a lot to be desired. The best houses have already been bought and the owners hold on to them tightly. Thus, a mixture of factors has been the detonator of the real estate boom which is at the basis of the increase in prices. One thing is sure: this situation penalises most of all young people. (ANSAmed)
2007-05-04 17:09

Hassoun

May 22nd, 2007, 02:05 AM

Shuaa Capital unveils plan to open new office in Beirut
'We're optimistic about the long-term prospects of lebanon'
By Michael Bluhm
Daily Star staff
Monday, May 21, 2007

BEIRUT: Shuaa Capital, one of the Middle East's leading investment banks, will open a branch in Beirut in September, the company's chief operating officer said Sunday. Dubai-based Shuaa's new office in the Beirut Central District will house six to 10 employees, although the bank plans to have at least 15 workers here within a year of opening, Karim Mitri told The Daily Star.

"Shuaa is keen on Lebanon," Mitri said. "We're optimistic about the long-term prospects of Lebanon."

Mitri did not give specifics on whether the bureau would focus more on banking or back-office tasks, saying the employees here will take some time to gauge the market's needs.

Personnel played a key role in Shuaa's move - not only are many of its top executives Lebanese nationals, including Mitri, but the prominence of Lebanese talent throughout the finance sector in the Gulf provides a strong argument to set up shop closer to the home of the workforce. "Lebanon has a good profile in our sector," Mitri said. "[Lebanon] has an abundance of talent. We have a big contingent of our personnel who are Lebanese."

Human-resource and financial concerns stood largely behind Shuaa's decision, said Byblos Bank head of research Nassib Ghobril.

"It's very good news," he said. "The most important aspect is that the human resources are here. That tells you we have competitive advantages, despite everything. It shows that, despite everything, Lebanon is still an attractive destination for services."

Another competitive advantage is that the county stacks up as a bargain next to the spiraling costs in the booming United Arab Emirates. Aside from rent, firms can cut expenses by operating in Beirut because they will save on generous expatriate pay packages, including allowances for moving, family members and housing, to Lebanese banking professionals. Ghobril said he has heard rumors of other multinationals considering moving some of their offices from the Gulf to Beirut, with cost savings a major motivation.

In addition, the robust domestic banking industry contributed to Shuaa's comfort in putting up a shingle here as the economy flounders amid political and security difficulties. Lebanese lenders registered healthy profits last year despite the summer war with Israel and the ensuing political infighting.

"Lebanese are accustomed to political turmoil," Mitri said. "The Lebanese financial institutions - the banks, primarily - are solid. They've managed to prove their resiliency."

Shuaa's aspiration to lead the regional investment-banking market also probably played a role in the move, said Jean Riachi, chairman of the Beirut-based brokerage house Financial Funds Advisors. Riachi said he viewed Shuaa's arrival as much as an attempt to get ahead of competitors as a thumbs-up for Lebanon's business climate.

"I'm not sure it is a sign that everyone will come to Beirut, but it's a logical move," he said. "They [have] ambitions to be a regional investment bank. They are located everywhere in the region - why not in Lebanon?"

Shuaa's move also supports the view that many of the financial professionals filling the offices of multinationals in the Gulf - and not only the Lebanese ones - would prefer the lifestyle here to the limitations of Dubai.

"Definitely there is an element to the quality of life here," Ghobril said. "There are many people who don't want to leave the country. It's not like they're lining up at the airport."

john2890

May 22nd, 2007, 06:55 PM

'We're optimistic about the long-term prospects of lebanon' and that was yesterday. despite the fighting and the bombing...thank god businesses have faith in lebanon, touch wood.

Hassoun

May 23rd, 2007, 12:38 AM

Banks see Beirut's $400 million Eurobond sell-off as a done deal
Investment houses expect issue to be wrapped up by end of week
By Michael Bluhm
Daily Star staff
Wednesday, May 23, 2007

BEIRUT: The government should easily sell out a roughly $400-million Eurobond issue by the end of the week despite the ongoing armed conflict near Tripoli and bombings in Beirut, said the two investment banks placing the debt. The Cabinet should formally release details of the issue when the bonds have been fully subscribed, but sources told The Daily Star the Eurobond issue will be added to a $250-million issue scheduled for maturation in 2013, with a yield of about 8.75 percent.

"We're finalizing all the details [Tuesday] afternoon," said Khalil Geagea, who is managing the bond issue for Citibank, which is working with BLOM Invest to place the debt. "I think it will be a well-placed issue. By the end of the week we should wrap it up."

The state is most likely issuing the securities to meet budget expenditures, as money pledged at the Paris III donor conference in January has yet to arrive in mass quantities. Finance Minister Jihad Azour did not respond to repeated interview requests.

"They probably need the money now, as opposed to six months, one year down the line," said Omar Daouk, a Lebanese national who heads the fixed-income division at Shuaa Asset Management in Dubai.

Simplifying the sale of the bonds is that $400 million represents a small amount - the government might need more money, but by law the state can issue no more than $400 million without the approval of Parliament, which has not met since the opposition erected its Downtown tent city on December 1.

The issue will have little difficulty finding takers among local banks, a number of which tallied record profits last year despite the summer war with Israel and the ensuing political morass.

"The banks are flush with cash," said Marwan Iskandar, head of the consulting firm MI Associates. "Lebanon has more money than it has projects."

The Eurobonds' lure for foreign investors, however, has been muddied by the latest violence. International institutions might subscribe either for relatively high yields or to express political support for the government of Prime Minister Fouad Siniora, but the events in the Nahr al-Bared refugee camp and the two explosions in Beirut commercial districts might have tempered their interest.

"You might see some hesitation from foreign investors," said Fayez al-Hajj, head of capital markets and private banking at Byblos Bank. "They will not be as enthusiastic about it as if we had a stable situation. It's normal, when you have a volatile situation."

Regardless of the security difficulties, Shuaa's Daouk said he would "probably" invest in the bonds for the two fixed-income funds he manages.

"I'm bullish on Lebanon, but with a careful view," he said. "I strongly believe that there is a lot of international interest."

Daouk's zeal for Lebanese bonds has been rekindled after he reduced his funds' exposure to the debt following the summer war and again after street clashes in January, but his confidence demonstrates the business-as-usual approach taken by many to this week's violence. Investors have expressed their faith in the country's resiliency, as well as a conviction that the international community will not allow the government to default on its obligations.

"Paris III has thrown a very important sign to everyone that Lebanon is not going to default," said Byblos Bank's Hajj.

Lebanese banks' traditional hunger for sovereign debt also stands behind the seemingly effortless placement of the Eurobonds issue, first mentioned publicly Friday with the announcement that Citibank and BLOM would lead the placement. Domestic banks have about half their balance sheets committed to government debt, so they, too, want to ensure the government pays its debts, regardless of the banks' stated wishes to diversify their portfolios.

"In essence, it is a captive market," said Iskandar.

Still, domestic banks' new strategy of regional expansion sounds a note of warning for future, large-scale bond issues, as do the Basel II international standards, which will soon require banks to set aside reserves totaling 100 percent of the amount of bonds rated as poorly as those issued by Lebanon. Domestic banks hold about 80 percent of all government debt, and the rating agency Moody's, for instance, has stamped Lebanese debt with a negative outlook.

"We have a pretty negative view on Lebanon's sub-investment-grade sovereign debt," said Tristan Cooper, a Moody's vice president responsible for Lebanon's ratings.

Hassoun

May 24th, 2007, 12:59 AM

Lebanese imports of industrial machinery jump 31.8 percent in first quarter

Daily Star staff
Thursday, May 24, 2007

BEIRUT: Lebanon's imports of industrial machinery in the first three months of 2007 rose by some 31.8 percent to $39.3 million, according to the Industry Ministry. The ministry believes factories are bracing for more demands for their products in the coming few months and for this reason they have been ordering new machinery from abroad.

Lebanon's industrial exports have been rising this year with special orders from Europe and some Arab countries.

The industrial sector suffered heavy losses during last summer's war as dozens of factories were either totally destroyed or partially damaged.

The total cost of the war on the industrial sector is estimated at more than $220 million.

The Lebanese government has promised to help some of the damaged factories through soft loans from local commercial banks.

The industrialists have been lobbying hard to pressure the government to use part of the money it received from the donor states to help rebuild some of the damaged factories.

Industrial exports have been on the rise since Lebanon signed the Euro-Mediterranean partnership agreement over five years ago.

Lebanon exports agro-food products, plastic, wine, jewelry and other items.

According to the ministry, imports of industrial machinery, an indicator of investment made in the industrial sector, totaled $12.8 million in the month of March alone, up by 11.6 percent from the same period of 2006.

"This significant rise is mostly attributed to an important year-on-year increase in imports of industrial machinery in January 2007, as the registered number was almost double that recorded in January 2006," the Bank Audi Saradar weekly bulletin said.

It added that investment in industrial activity resumed its somewhat ordinary pace in the following two months with a minor decrease in February 2007.

The distribution of industrial machinery by origin for the first quarter of 2007 shows that Germany was the largest exporter to Lebanon with $11 million worth of exports, followed by Italy, China, the United States, Switzerland and France. - The Daily Star

AmeriLEB

May 28th, 2007, 06:49 PM

Lebanon TRA unveils licensing plans
by Michele Howe

The newly formed telecoms regulatory authority (TRA) in Lebanon will issue mobile and international licences before the end of the year, its president said today.

In a presentation at the International Telecoms Summit taking place in Dubai this week, Dr Kamal Shehadi said the TRA plans to start issuing mobile and international licences in the fourth quarter of this year.

Lebanon currently has two mobile service providers, MTC-owned MTC touch and Alfa.

“We are behind many other countries [but] there is great potential for this market,” Shehadi told delegates.

“The Lebanon telecom market has been held back by political problems. We expect that to change in the next few years,” he added.

With a ‘pent up demand’, the market for mobile services is particularly ripe for growth, Shehadi said. Mobile penetration currently stands at 30% in Lebanon and could easily go up to between 70-90% in just a few years, he told ITP.net.

Shehadi said the authority, which launched earlier this year, had three main objectives for the next 12 months: first, the liberalisation of mobile services through issuing two mobile licences whilst privatising the existing operators; second, liberalising broadband including the issuing of new broadband licences; and third, the liberalisation of international services by issuing new gateway licences.

The Ministry of Telecommunications (MoT), which previously oversaw regulatory issues in Lebanon, is in the process of setting up Liban Telecom, the new operator that will inherit the operational functions of the Ministry of Telecommunications and fixed line operator Ogero, Shehadi said.

Liban Telecom, which will have a PSTN [public switched telephone network] network as well as a mobile licence, is slated for privatisation in 2008, he added.

Hassoun

May 28th, 2007, 06:54 PM

^^Gr8 news,Start from NOW.

Hassoun

May 31st, 2007, 02:17 AM

Telecoms regulator predicts cellular sell-off will double penetration rate
'Prices will go down because their will be intense competition'
By Osama Habib
Daily Star staff
Thursday, May 31, 2007

BEIRUT: The head of the Telecommunications Regulatory Authority says he expects higher mobile penetration in Lebanon in the coming few years once the privatization of the country's cellular networks is carried out. "The penetration of mobile in Lebanon is expected to more than double and within three years we expect to reach 60 percent of penetration," Kamal Shehadeh told The Daily Star.

At present, there are close to 1 million mobile subscribers in Lebanon but Shehadeh believes that this number can easily reach 2 million.

The number of mobile users in Lebanon is lower than most countries in the region, where charges are far less than here.

"Only 30 percent of the Lebanese have cellular lines but this will change once the privatization of the telecom sector is completed," Shehadeh said.

The government pledged in the five-year economic reform paper that was presented to the Paris III donor conference in January that the privatization of the mobile networks would be completed before the end of 2007.

Kuwait-based Mobile Telecomms Company (MTC) and the German-Saudi consortium Detecon currently operate Lebanon's two mobile networks on behalf of the government. According to the contract with the two operators, the government must give them six month's notice before the networks are transferred to other firms.

All the revenues of the mobile networks go to the Treasury and in return the mobile operators collect a monthly fee of about $4 million. The government collects more than $750 million annually from the two mobile networks but Shehadeh said that most of this income is actually fees and taxes.

He said that the government will still generate reasonable revenue from the VAT, tax on profits and other fees from the mobile companies Telecommunications Minister Marwan Hamadeh has said that he expects the government to collect between $5 billion and $6 billion from the sale of the two licenses.

But Shehadeh declined to make his own projections.

"This is not my responsibility," he said in the interview. "My main aim is ensure a good service and fair competition among the companies."

The government says that all the proceeds from telecom privatization will be used to reduce the $41 billion public debt, which represent 185 percent of the country's GDP.

Shehadeh also predicted that mobile charges would eventually drop after the networks are transferred from the public to the private sector.

"Prices will go down because their will be intense competition between the two companies and services will also improve," he said.

He also emphasized that the regulatory authority will ensure that there is competition between the companies in terms of services and prices.

But "we will not drop the prices ourselves," he explained, "because it is the duty of the companies which will abide by the terms of the contracts that they will sign."

He also argued that the privatization of the telecom sector does not need the approval of the Parliament.

"After the passage of Law 431, which calls for the creation of a regulatory body, there was no need for the Parliament's approval," he said.

Shehadeh said that the government will not do anything that can be challenged, by opposition parties.

"We have to admit that in Lebanon there is a political risk," he said. "However, this risk does not prevent the government, the Higher Privatization Council and the regulatory authority from doing their job.s"

But some observers fear that the tense political situation may get out of control and eventually all the reform programs may be delayed indefinitely.

Apart from the mobile networks, the government also plans to privatize the fixed telephone network, electricity, water and other public utilities.

The government plans to liberalize the land-line system and create LibanTelecom Co., which will take over all responsibilities from the Telecommunication Ministry and OGERO.

Shehadeh said that the regulatory authority has asked for a budget from the government in order to allow the body to function properly.

"We hope to have about 80 employees once the budget is approved by the government," he told The Daily Star.

LeB-iT

May 31st, 2007, 08:38 PM

^^it's about time those companies got privatized, Lebanon's cellular lines are the most expensive in the world...which is ridiculous!

Hassoun

May 31st, 2007, 10:45 PM

^^ Yes,Can't wait....we need like 4 companies,not only two.

AmeriLEB

June 1st, 2007, 04:31 AM

There will be 3...Liban Telecom will include a 3rd license

AmeriLEB

June 1st, 2007, 03:09 PM

As Lebanon becomes a serious candidate for European offshore software development, ALSI & ELCIM join hands in building the Lebanese Software Cluster

31 May 2007
Local Software companies team up to shape a player of size & increase winning chances in European Markets' Bids.
Beirut - In the frame of its ongoing effort to promote the Lebanese software industry, ALSI (the Association of the Lebanese Software Industry) & ELCIM (the Euro Lebanese Centre for Industrial Modernization) carried out a one day cluster workshop at the Lebanese University Campus, Hadath. The workshop was inaugurated by the Industrial Research Institute's general manager Mr. Bassam el Frenn.

The workshop, entitled "Building the Lebanese Software Cluster - Networked Success on Export Markets" was held on May 29th 2007, conducted by 2 German experts especially selected by ELCIM for their expertise (Mr. Lucas von Zallinger and Claus Traeger) and attended by a number of key players in the local software community.

The workshop's first half discussed case studies & examples of successful countries exporting software (for instance Russia, Bulgaria and Croatia) as an inspiration for the Lebanese agenda of export. Furthermore, the second half focused on the cluster's "mission to Europe" whereby the companies agreed on a road map defining an organizational structure, a marketing strategy, a business plan, in addition to elaborating internal regulating statutes designed jointly with ELCIM until the end of the year.

When asked if Lebanon stands high chances in becoming a European offshore destination Claus noted: "The Lebanese software companies enjoy great assets enabling them to win European bids. They have qualified manpower, a west-oriented flexible mentality that facilitates contact with eclectic markets and most importantly they enjoy geographical proximity vis-à-vis the European markets. Moreover, some of the Lebanese software companies have already gained strong credentials by servicing international companies of size such as German Siemens" .

For his part, Lucas stated the reasons behind the clustering explaining that it is only by joining forces that Lebanon can gain the visibility it needs. Individually, the companies will fragment their chances. And to add "the reason behind Lebanon's delayed entry into foreign markets remains purely political as the Lebanese products and services are deemed excellent. In addition, the lack of proper marketing & branding hasn't helped. Together with ELCIM & through this cluster, we will help Lebanon get all the visibility & branding it needs".

The President of ALSI, Mr. Joe Abi Aad underlined: "We were able to attain the workshop's main goal which is the nomination of a group in charge of defining the mission and vision of the cluster, as well as the first version of the statutes"

"The software markets of Germany, Britain and France are expected to substantially grow (more than 6% in 2006 and 2007) and they lack a serious number of internal resources (20 000 more IT specialists are needed in Germany, for example). The IT off shoring market is expected to grow by 16.5% per year until 2009! We need a solid marketing strategy coupled with a clearly defined "cluster regulating constitution" & we are currently working on it. In fact, an increasing number of Lebanese software companies are already exporting their products & services to France and other European countries."

Abi Aad added that the cluster represented just one activity in their vast ALSI-ELCIM agenda: "ELCIM fosters the kind of networking that is crucial for us. Through ELCIM, we are building structured partnerships capable of addressing further foreign market needs. It is undeniable that ELCIM's support will render the Lebanese companies a strong branding image in European markets thus doubling our chances in winning".

- Ends -

For more information, please contact:
Sarah F Fayad
Account Manager
Tel: +961 5 455454
Ext: 407
Fax: +961 5 955473
Mobile: +9613 765706
Website: www.asdaa.com

© Press Release 2007 from ASDA'A Public Relations

AmeriLEB

June 6th, 2007, 04:16 PM

U.S. President Bush lifted a ban on air traffic to Lebanon imposed since the 1985 hijacking of a TWA jetliner to Beirut.

A press release issued by the White House said Bush was determined that the “prohibition of transportation services to Lebanon … is herby further amended to permit U.S. air carriers under contract to the United States Government to engage in foreign air transportation to and from Lebanon of passengers, including U.S. and non-U.S. citizens.”

:banana: :lol:

Hassoun

June 6th, 2007, 04:24 PM

I never thought he would take such a step,i'm begining to like him :)

LeB-iT

June 6th, 2007, 11:23 PM

^^well if you watched LBC news they interviewed Mhammad Hout, who's the chairman of MEA, apparently this law allows just 'carriers under contract to the US gov't' to go to Beirut, whatever that means, and he wasn't so excited about the law...so basically not any carrier that wants to fly to Beirut can do that!

Hassoun

June 7th, 2007, 02:16 PM

^^well,at least it's a start

Hassoun

June 7th, 2007, 02:28 PM

From ALMUSTAQBAL NEWSPAPER :)

بوش يسمح بتسيير رحلات من لبنان وإليه

المستقبل - الخميس 7 حزيران 2007 - العدد 2636 - الصفحة الأولى - صفحة 1

أعلن الرئيس الأميركي جورج بوش، أمس، السماح فوراً لأساطيل النقل الجوي المرتبطة بحكومة الولايات المتحدة بتسيير رحلاتها من وإلى لبنان ونقل مختلف أنواع البضائع من وإلى مطار رفيق الحريري الدولي في بيروت لمواطني الولايات المتحدة.
وقال بوش في بيان صادر عنه إنه "بموجب السلطة الممنوحة لي" استناداً إلى الدستور الأميركي، و"بهدف تعزيز السلام والأمن في لبنان، أنا أعدل القرار (القرارات الرئاسية السابقة) بما يسمح لأساطيل النقل الجوي الأميركي المرتبطة بعقود مع حكومة الولايات المتحدة بالانخراط في عملية النقل الأجنبي الجوي لنقل الركاب من لبنان وإليه".
وأوضح أن كلمة الركاب ستشمل "المواطنين الأميركيين وغير الأميركيين وأمتعتهم".
وشدد على أن ذلك سيشمل "البضائع المرسلة من أجل أهداف إنسانية أو أي نوع آخر من الحمولات والمواد".
وأمر بوش وزارة النقل "بتطبيق هذا القرار فوراً، ونشر هذا القرار في السجل الفيدرالي".
وأشار بوش في هذا السياق إلى "القرار الرئاسي 85 ـ 14 الصادر في 1 تموز(يوليو) 1985 والمعدل بموجب القرار الرئاسي 92 ـ 41 في 17 آب (أغسطس) 1992 والقرار الرئاسي 98 ـ 32 بتاريخ 19 حزيران (يونيو) 1998"، وهي القرارات التي عنيت بمسألة فرض حظر على سفر الأميركيين والطائرات الأميركية إلى لبنان.
مصادر في "مطار رفيق الحريري الدولي ـ بيروت" قالت لـ"المستقبل" إنها فهمت من قرار الرئيس الأميركي أنه يتضمن رفعا شاملا وكاملا لكافة أنواع القيود وكل حالات الحظر التي فرضتها الإدارة الأميركية على حركة الطيران المدني بين الولايات المتحدة ولبنان منذ عام 1985".
واعتبرت المصادر أن ذلك يعني تاليا إمكان تسيير الشركات اللبنانية رحلات إلى الولايات المتحدة، علما أن الحظر هو أميركي في الأصل ولم يقابل بقرار لبناني مماثل.
وتوقعت المصادر إيّاها أن يتطلب تسيير الرحلات النظامية بعض الوقت، ريثما تتم الترتيبات اللازمة بين الجانبين اللبناني والأميركي، ومنها بتّ مسألة مهمة تتعلق إما بإحياء اتفاقات الطيران التي كانت سائدة بين الطرفين حتى منتصف عام 1985، أو التفاوض بشأن اتفاقات طيران جديدة.
ورأت في رفع الحظر الأميركي إشارة مهمة بالنسبة إلى لبنان، باعتباره يعزز موقع المطار عالميا لناحية توفر شروط السلامة والأمن.

john2890

June 7th, 2007, 11:38 PM

some translate puh-leeze.

AmeriLEB

June 11th, 2007, 06:31 AM

Construction to start on highway project.
Source: MEED Middle East Economic Digest

Publication Date: 04/27/2007

Work is set to start on the estimated Eur 120 million ($163 million), 65.5-kilometre-long highway from Beirut to Masnaa, on the eastern border with Syria.

Turkey's STFA has the construction contract for the 10.5-kilometre Taanayel to Masnaa section. The local Khatib & Alami is the construction supervision consultant. The European Investment Bank is providing funding, and construction is expected to take two years.

The client for the highway, the Council for Development & Reconstruction (CDR), is evaluating bids from seven contractors for the package covering the 15-kilometre section from Mdeirej to Taanayel. The bidders include the local Karagulla with Saudi Arabia's Al-Jazeera Construction. The local Team International is the construction supervision consultant. The Saudi Fund for Development is funding the package and construction is expected to take two-and-a-half years (MEED 9:12:05).

The July-August 2006 war between Hizbollah and Tel Aviv, and the subsequent reconstruction process, has given a boost to highway development projects. "From a construction point of view, by the end of last year we were getting a lot of interest in other projects from aid agencies, with other sections of the pan-Arab highway under preparation," says a CDR source.

AmeriLEB

June 16th, 2007, 04:09 AM

Beirut unveils plan to sell off Beddawi generating plant
By Jim Campbell
Special to The Daily Star
Saturday, June 16, 2007

BEIRUT: The government announced on Friday it would privatize the Beddawi power plant in North Lebanon and hold a tender process to build another facility of the same capacity.

The 450-megawatt Beddawi plant is fired by fuel oil but could be converted to natural gas, a possibility with the signing of an agreement between Lebanon and Egypt in April 24 of this year.

The tender for building the new plant is meant to dovetail with the privatization of Beddawi - if one bidder wins the privatization process and the construction tender, that entity could choose to build the new plant as an addition to the Beddawi site, said Julia Brickell, country director for the International Finance Corporation (IFC), which will advise the government on both transactions.

Ideally, within 12 months the government will open bids on the same day for the privatization and the new plant, Brickell told The Daily Star on Friday.

The government unveiled the plans at the Grand Serail at a signing ceremony with the IFC, the private-sector arm of the World Bank.

Speaking after the signing ceremony, Prime Minister Fouad Siniora praised the agreements, saying they would "push our efforts in adding new [electricity] production capacity."

"These agreements will make new energy possible," he said. "It is important to do this very urgently."

The energy sector has long been an albatross for Lebanon. The state often fails to provide a constant stream of electricity, and many businesses are forced to generate their own power, while the prices charged by the state for electricity are some of the highest in the region.

Despite that, Brickell said the relatively new Beddawi plant would be attractive to potential buyers.

"It's a good target for privatization," she said. "It's still in good shape."

However, she did acknowledge that the energy-sector transactions are certain to attract the attention of politicians, and not just power companies.

"We focus on projects that have a political dimension," said Brickell, adding that electricity in Lebanon "is a highly politicized sector."

Brickell also said that the IFC can provide comfort to investors because of its reputation and its strong relationships with regional governments.

The IFC also announced a $20 million agreement in ADMIC (Advanced Development Management and Investment Corporation), a huge property firm whose tie-ups include the BHV/Monoprix complex in Jnah, City Mall in Dora, and the Movenpick resort in Beirut. The investment includes a $13.5 million loan and a $6.5 million equity investment.
http://www.dailystar.com.lb

Additionally, the IFC inked deals with the Bank of Beirut and the Arab Countries (BBAC) and Credit Libanais worth $40 million. The IFC will provide $25 million in risk-sharing funds to BBAC, so the bank could deliver more loans, primarily for small- and medium-sized enterprises (SMEs). Credit Libanais, meanwhile, will receive a $15 million credit line.

At January's Paris III donor conference, the IFC pledged to provide up to $275 million to Lebanese private enterprises by the end of June, although Brickell said she expects the actual amount to be higher.

Other government ministers present at the Grand Serail praised the multiple deals.

Finance Minister Jihad Azour said the agreements "confirm that Lebanon continues," despite the current political instability, and he added that the agreements constituted "important symbols that [the international community] believes in Lebanon."

Economy Minister Sami Haddad, who spent more than a decade working for the IFC, underscored the weakness of the country's energy sector.

"The Lebanese economy desperately needs power," Haddad said. "The IFC will make sure the process is fair, transparent and well done."

The positive atmosphere surrounding the ceremony was somewhat tempered, however, by the ongoing deterioration of the security situation.

Azour acknowledged that the problems are "affecting the private sector."

"The instability is limiting the capacity to increase the level of growth," he said. "If we are given breathing space on security, this economy could jumpstart."

The minister also expressed regret about "political events overshadowing what we are doing today."

One official close to Friday's proceedings said on condition of anonymity that if the political situation worsens, international organizations could well close their offices in Lebanon. But Michael Essex, IFC director for the Middle East and North Africa, dismissed ideas that the IFC would abandon Lebanon, saying that Friday's deals signaled that "we're moving full-speed ahead here."

Hassoun

June 16th, 2007, 02:33 PM

^^ Yes,i heard about it,It's a start
Good step

AmeriLEB

June 19th, 2007, 03:22 AM

Lebanon's economic woes don't deter private equity companies
By Michael Bluhm
Daily Star staff
Tuesday, June 19, 2007

BEIRUT: With its long-term perspective, private equity represents one of the few remaining attractive ways for large investors to put money into Lebanon. Private-equity fund managers acknowledged Monday that while the sector's performance has been affected by the economic downturn and dip in investor confidence, investors are still bullish on Lebanon.

Banks and institutional investors have committed 95 percent of the $20-million goal set by the Bader NGO's Building Block Equity Fund and Initiative, said fund manager Nagy Rizk. The fund will close to investors on June 30. Bader's $20-million size does not signify a major amount for investors to bet on Lebanon, particularly with local banks robust and regional players flush with cash from the oil industry, but the fund is trying to prove the viability of private equity here. The willingness of investors to commit to the fund has given Rizk optimism for the sector and for the country's long-term investment potential.

"I'm more upbeat," Rizk said. "I believe there is value to extract, value to create.

"They are not putting big amounts of money. At the end of the day, it's just an experiment to see if it works. Our objective is really to build the industry. We don't want to have short-term gains and jeopardize long-term perspectives."

Similarly to the Bader fund, the latest crises in Lebanon have not scared off investors in Byblos Bank's private-equity fund Byblos Ventures, which received half its $20 million in funding from the European Investment Bank, said Paul Chucrallah, assistant general manager of Byblos Investment Bank. Byblos Ventures is in talks to add a fourth investor, he added.

"We haven't sensed any change - on the contrary," Chucrallah said. "I sense the commitment of the international community. There are definitely good projects."

Many private-equity investors in Lebanon, if not local banks, have experience investing here and appear to be wagering the situation will settle in the coming months and now is a good time to take equity stakes.

"Usually our investors are very familiar with ... or committed to the Lebanese market," Rizk said. "It's not people who will back out."
http://www.dailystar.com.lb

Part of private equity's appeal also stems from the country's sea of undercapitalized small- and medium-sized enterprises (SMEs) with untapped potential. Almost 10,000 SMEs operate in Lebanon, and Bader's fund plans to pluck 12 to 15 of the best as investment targets, with a special focus on IT firms.

"Lebanese SMEs have a very high potential for growth," Rizk said. "You have a very big room for expansion in the entire region."

Ideally, private-equity funds should also provide know-how so the businesses they buy into can expand their markets.

"Companies need to expand outside Lebanon and you need a strong partner for that," said Nassib Ghobril, head of research at Byblos Bank. "Not only SMEs, [but] large companies also are starting to appreciate more the value of having an institutional investor."

Aside from investor confidence, private equity in Lebanon faces the obstacle of family-owned firms which are loathe to cede some control to an outside entity, even in exchange for a capital infusion.

But over the past 10 years family businesses' resistance to private equity has waned, said Ghobril, who was part of Lebanon's first private-equity fund, the $50-million Lebanon Holding, launched when he was at Lebanon Invest. "There's more and more awareness, especially with the change of generations in a family business, that there is value added by having institutional investors on board," he added.

For private equity to prosper here, the country needs to shore up its rickety legal system and develop a capital market which will welcome initial public offerings from growing companies. Of course, some political and security stability would help matters, too.

"In all sectors, people are looking forward, not at the current situation," said chairman of the Financial Funds Advisers brokerage house Jean Riachi. "I do not think anything makes sense if the situation doesn't improve."

AmeriLEB

June 21st, 2007, 02:30 AM

New report sings praises of Lebanese banks
Sector has shrugged off war, political crisis
By Osama Habib
Daily Star staff
Thursday, June 21, 2007

BEIRUT: Lebanon's banking sector got another pat on the back from an international player this week for its resilience and ability to absorb the political and security shocks that have plagued the country since the 2005 assassination of former Prime Minister Rafik Hariri.

In its study titled "International Expansions Not Priced In," Cairo-based EFG-Hermes stressed the buoyancy of Lebanese banks. The report, which was published in Banque Audi Saradar's weekly bulletin on Monday, noted that customer deposits witnessed year-on-year growth of 4 percent in 2005 and 6 percent in 2006, while deposit outflows were short-lived and limited.

Unlike the Lebanese economy as a whole, which has been badly battered by last summer's devastating war with Israel war and continuing political deadlock, banks in general have continued to record steady profits and growth.

"Depositors' confidence is attributed to the Central Bank's high level of gross foreign exchange reserves, the government's large stock of gold reserves, and the Lebanese banks' firm liquidity position," the report said.
It described certain features of the banking sector which it characterized as atypical, the first being the fact that Lebanese banks hold approximately 50 percent of the government's outstanding debt.

Also, holdings of public debt and deposits at the Central Bank comprise 90 percent of Lebanese banks' local currency-denominated earning assets and 40 percent of foreign currency earning assets, thus keeping the loan-to-deposit ratio at 29 percent, which is considered extremely low.

But some international rating agencies have downgraded the three leading banks due to the increasing debt risk exposure.

There is some concern that the government of Prime Minister Fouad Siniora may find it difficult if not impossible to lower the public debt if reforms are delayed as a result of the political bickering.

The International Monetary Fund also praised the overall performance of the banking sector but warned that the state's finances still represent the biggest challenge.
http://www.dailystar.com.lb

Local banks seem reluctant to lend the government more money, although there has been no indication thus far that they will stop extending the outstanding Treasury bills and Eurobonds they hold.

The report said that the system as a whole holds a high level of foreign currency deposits, which means it possesses a relatively high proportion of interbank assets.

It added that the ratio of bank assets to GDP was found to be higher than that of a large number of developed economies and stood at 341 percent.

As for customer deposits, they are at a relatively high 270 percent of GDP, as a result of funds being injected into the system by the large base of expatriate Lebanese.

"Finally, branch density in Lebanon is at 18 branches for every 100,000 inhabitants, which is higher than most emerging countries with close GDP per capita levels, and similar to the level of developed countries," the report said.

The study dedicated a section for examining the expansion strategy followed by the three largest banks in the country, namely Bank Audi, BLOM Bank, and Byblos Bank.

It added that the expansion has been mainly taking place outside Lebanon, due to the fact the Lebanese market had become relatively mature, and those banks are targeting faster growing markets in the region.

One other reason could be that the banks are trying to avoid the risks associated with domestic political conditions. The areas that have been of particular interest for expansion are the Levant region, primarily Syria and Jordan; the North African region, principally Egypt and Sudan; and Gulf Cooperation Council countries such as Saudi Arabia, the United Arab Emirates and Qatar.

"In countries like Syria and Sudan, the strategy has been to capitalize on the long-term growth prospects of the undersized banking system, whereas in GCC countries, the aim was to make use of the growth prospective in corporate banking, project finance, and capital market activities," the EFG-Hermes report said.

AmeriLEB

June 27th, 2007, 11:45 PM

Qatari firm to sell 97.5 percent stake stake in BLC

Thursday, June 28, 2007

BEIRUT: BLC Bank S.A.L. announced on Wednesday that its major shareholder, the Qatar Investment Authority (QIA), has decided to sell its 97.5-percent stake in BLC. The QIA has opted for a private bidding by invitation to select Arab and Lebanese institutions. Data rooms have been equipped to allow due diligence to proceed.

Phoenician Empire

July 4th, 2007, 04:30 PM

Lebanon public debt tops $41bn
July 4, 2007

BEIRUT -- Public debt in Lebanon, which is plagued by political crisis, soared to $41.3 billion in May, $100 million up from the previous month, the banking association said Wednesday.

"Most economic indicators fell to alarming levels in May 2007 due to the current political crisis and the unfolding security developments," the Association of Banks in Lebanon (ABL) said in a statement.

ABL said that public debt reached $41.3 billion last month, compared to $41.2 billion in April.

But it was not all bad news: Lebanon's balance of payments registered a $261 million surplus in May and bank deposits and loans to customers also both increased.

Source: http://www.metimes.com/storyview.php?StoryID=20070704-094446-3618r

Phoenician Empire

July 4th, 2007, 04:54 PM

Lebanese Authorities to Destroy 85,000 Pirated CDs and DVDs Thursday

By Bashar Al Ashhab

AMMAN - Official sources at the Lebanese Computer Crime & Intellectual Property Protection Bureau (CCIPP) exclusively told ag-IP-news Agency that on July 5, 2007 the Bureau will destroy around 85,000 pirated CDs/DVDs in the Aley Municipality, which is a mountain resort 20 minutes away from Beirut.

“We will be destroying around 85,000 pirated CDs/DVDs having street value of around $180,000," said the well-informed source who requested anonymity.

The perpetrators include individuals, illegal printing circles and small corner street shops.

“These CDs/DVDs were confiscated by our CCIPP - a unit of the Internal Security Forces (Police). This is the third time (the first time was in June 2006 in Ghobeiry, the second time was in January 2007 in Roumieh and this time it was in Aley),” he added.

“The CDs/DVDs were a mixture of movies, music and software. There was also equipment confiscated which will not be destroyed but quarantined till further notice,” he elaborated.

Business Software Alliance (BSA)/Microsoft Aly Harakeh said that the piracy rate remain the same in Lebanon, it stood at 73%.

"Losses due to piracy have gone up to $39 million, a $4 million increase in Lebanon. This is attributed to the unstable situation and the events that disrupted the country’s efforts in putting a dent into piracy with the formation of the Computer Crime & IPR Bureau. Pirates have benefited from the chaos to increase their operations,” the said.

However, the Lebanese government along with the BSA and other intellectual property (IP) organizations has been active in fighting piracy and counterfeiting. Last January, the Bureau destroyed hundreds of thousands of pirated CDs and DVDs in a huge display at the Roumieh Prison. Destruction of tens of thousands of pirated CDs/DVDs was planned for early June, but had to be postponed. Now it is taking place in July.

The CCIPP Bureau does periodical raids and sweeps around Lebanon and confiscates the pirated products (music, movies, software, games…etc). BSA assists the Police and the concerned authorities in providing field intelligence, leads, product identification training and promoting the enforcement activities.

In early May, the copyright industry representatives met with the CC&IPR Bureau Chief, in which they identified the top ten high profile targets and set out a plan to pursue them. The plan also included periodical sweeps and heavy media blitz.

Hassoun

July 4th, 2007, 05:04 PM

^^BRAVO,,,Double or even triple this effort

AmeriLEB

July 17th, 2007, 07:44 PM

Gulf Resources signs strategic alliance agreement with Hayek Group of Lebanon
Gulf Resources, a well positioned business, financial and administrative advisory firm, helping growing businesses in the Gulf, announced that it has signed a strategic with Hayek Group S.A.R.L., a Beirut based real estate development company, to develop major real estate projects in Lebanon and promote the same to Gulf & international investors.
United Arab Emirates: Monday, July 16 - 2007 at 11:50 PRESS RELEASE

'Our decision was based on the success of Gulf Resources and its partners in Dubai for more than fifteen years', Abdallah Hayek CEO of Hayek Group said 'this alliance will be an additional factor by which the Lebanese Real Estate Development Sector will benefit from it and likewise will bring in major UAE & Gulf investors to the local market.'

'The Lebanese market constitute a dynamic potential opportunities for investors - we believe that our direct involvement in the Lebanese market through Hayek Group will strengthen our strategy and help in the decision making process,'said Najib Khalil Sayegh, Managing Director of Gulf Resources - Dubai.

'Gulf Resources believes in building foundations for a long-term relationship with our clients that is mutually profitable, while adhering to our commitment to quality, integrity and moral responsibility,' said Najib Khalil Sayegh, Managing Director of Gulf Resources. Our strengths include business and financial advisory, financing business ventures and managing mergers and acquisitions.

Hayek Group has excelled in the field of knowledge of the Lebanese Real Estate and Property Development. With our experience in providing solutions to leading Gulf Based organisations, we are positive we can make a significant contribution to boosting our mutual values.'

AmeriLEB

July 17th, 2007, 07:47 PM

Casper & Gambini's opens new branch in Verdun, Beirut
After ABC Ashrafieh and CityMall, Casper & Gambini's has spread its wings and landed in the perfect meeting place for a new crop of gourmet food lovers and coffee enthusiasts.Lebanon: Saturday, July 14 - 2007 at 14:59 PRESS RELEASE

Conveniently nestled in the heart of the prestigious shopping and business area, Verdun features the Dunes shopping mall with its boutique, shopping arcade and movie theaters, making Casper & Gambini's an ideal venue for hotel guests, shoppers, Verdun residents, and businessmen alike.

'Verdun is one of Beirut's most prestigious residential neighborhoods, vibrant shopping venues, and business centers. We felt that with the chic popularity of this area it was time to bring the Casper & Gambini's experience to the residents of this area of west Beirut, business people and hotel guests,' said Anthony Maalouf, Casper & Gambini's CEO.

The newly opened branch boasts a capacity of 150 seats. In addition to a large dining area with leather couches, the new restaurant-café has a lounge area with comfy couches, a bench that can host up to 4 tables for group gatherings, two terraces: one external and another inside the mall, and a Casper & Gambini's Station area.

Wine lovers will not only be taken care of, they will be spoilt, as Casper & Gambini's wine cellars can appeal to the most demanding taste-buds.

Casper & Gambini's also caters to cigar aficionados with some of the finest cigars that Havana has to offer.

The station- an original ready-t0-serve concept- features a display fridge with tempting treats to satisfy any appetite on the go, while shelves with C&G's Deli products reflect Casper & Gambini's passion for food that delivers quality, nutrition and value

Jayme

July 18th, 2007, 02:55 AM

Plans are under way to revamp the city's tarnished image with hope of bringing back tourists

TRIPOLI: Until recently, Lebanon's second largest city, Tripoli, had managed to retain a low profile on media radars. But as the battle raging at the Nahr al-Bared Palestinian refugee camp between the Lebanese Army and the Fatah al-Islam militants enters its seventh week, Tripoli has come under the spotlight.

It was, after all, a gun battle in one of Tripoli's main streets and the subsequent attacks on army posts that triggered the present conflict at Nahr al-Bared. The recent violence that erupted in the center of Tripoli and at the nearby camp has caught this otherwise quiet city by surprise, and has resulted in severe repercussions on its economy, security and stability.

While the current political and security situation in the country is causing a burden on the national economy, the burden has been exceptionally heavy on the local economy of Tripoli, primarily as a result of its proximity to the conflict zone.

"Currently, Tripoli's economy is almost in total paralysis," said Rashid Jamali, Tripoli's mayor during a recent interview with The Daily Star.

While there is no official data of economic losses, the head of the Tripoli's Traders Association Fawaz Helwe identified the conflict's effects on trade and the business of merchants, and estimated that the volume of trade has diminished by about two-thirds. The trade and services sectors form the backbone of the city's economy and are its main sources of revenue.

"Trade has significantly slowed, and some businesses that were on the fence are now bankrupt," he said. "Many businesses are almost permanently on sale, and are lowering prices to the point of breaking even."

The northern border crossing with Syria, just few kilometers from the camp - and which Damascus has kept closed since the beginning of the fighting - also has led to the suspension of the normal flow of labor and trade between Lebanese northern cities and Syria.

Additionally, the Tripoli-Akkar road, on which the camp is located, is not always safe. The fighting has also discouraged Lebanese expatriates from returning to Tripoli and nearby villages for the summer vacation, resulting in them spending their money elsewhere.

Jamali said that the situation in the nearby camp has left a "black stain" on the local economy and has "instilled fear into the people of Tripoli," which has hindered their movement, transactions, and their ability to carry out basic economic activities like trade. The fighting has also lowered people's future expectations, which negatively affects their decisions and investments

However, there are plans to revitalize Tripoli's economy, with some under way and others on hold until the situation becomes calmer. The plans include projects to renovate infrastructure, ease transport congestion, refurbish the port, create an offshore free-zone and foster the appropriate conditions to facilitate economic transactions.

The bulk of these projects, according to Jamali, aim at rejuvenating the tourism industry. A project under way in conjunction with the Council for Development and Reconstruction plans to restore the city's cultural heritage by renovating and restoring key landmarks in the historic part of the city. The mayor hopes the project will entice tourists to Tripoli and highlight its cultural and historic sites.
http://www.dailystar.com.lb

"The main problem we're facing now is that Tripoli's image is not attractive enough to fellow Lebanese or foreign tourists, even though Tripoli is the safest city in Lebanon," said Jamali, who added that the only crime that took place between May 2004 and May 2007 was a family-related crime that was not politically motivated.

Meanwhile, security fears were heightened again when militants fought the army in Abu Samra, a five-minute drive from the heart of Tripoli, and Qalamoun, on the city's outskirts. Both groups were linked to Fatah al-Islam and their activities were quelled in less than 12 hours.

"Based on information from the security authorities, these cells were the last remaining ones in Tripoli to have any links with Fatah al-Islam," said Jamali. "Tripoli is now completely devoid of any traces of the terrorist group now known as the Shaker Abssi gang. There are absolutely no predictions of any further disturbances occurring in Tripoli, at least not in the short run."

Jamali also emphasized the "terrorist cells did not receive any support or sympathy from the civil society of Tripoli. No political, religious or civil movements had any coordination or affinity with them. In practical terms, these cells were entirely isolated from Tripoli's society."

During the initial battle that raged on Mietein Street, "the participation of the municipality was to assist the army and the Internal Security Forces to facilitate their mission," said Jamali. "It was mostly logistical support." Jamali pointed out that the municipal police was involved in the fighting when the battle spread a few meters away from the municipal palace.

After it became apparent that members of Fatah al-Islam had rented apartments in Tripoli and hid weapons, the Ministry of Interior issued an order requiring a thorough review of all lease contracts across Lebanon.

The order's implementation falls directly under the jurisdiction of the municipality, explained Jamali. "The municipality has records of 90 percent of lease contracts for residential or business purposes, along with names of tenants."

Records for the remaining 10 percent are not within the municipality's possession because of a loophole in the law - in which public notaries validating lease contracts are not required to register them with the municipality. Jamali mentioned that an official request to amend this law has been filed with the Justice Ministry.

When asked about how Fatah al-Islam militants still managed to rent apartments under such a law, the mayor described how lease contracts used to not even exist between the apartment owners and the militants. "In that situation, the owners of the apartments received direct cash payments prior to the lease in an informal, unofficial, and sometimes verbal agreement," he said.

Jamali affirmed his belief that "the planting of terror cells in Tripoli is part of a bigger scheme to wreak havoc and terror across the city and the country." He also said the predicament the city faces "is not made in Tripoli, and perhaps not even in Lebanon as a whole."

Dailystar

Hassoun

July 18th, 2007, 02:46 PM

^^WOW,that's a huge Casper and Gambini's :) Good for Verdun :)

AmeriLEB

August 3rd, 2007, 06:00 PM

I found this as part of an article on investment in the arab world..good news

Lebanon
Nowhere in the world is a country more committed to rebuilding and regenerating its economic fortunes than Lebanon. Once home to an incredibly attractive and successful real estate sector Lebanon is once again attracting international interest to its re-emerging property market. Now the amount of investment flooding Lebanon to rebuild the country is incredible, and the real estate investment opportunities emerging from this Middle Eastern, Mediterranean facing country are breathtaking.

Lebanon may not be high on a property investors list of emerging countries to consider but careful consideration should actually be given to Lebanon because of the focused and targeted investment that is being ploughed particularly into the regeneration of Beirut and because the Lebanese government is committed to the economic empowerment of its country through the attraction and retention of foreign investment.

The reconstruction of Beirut Central District or 'Downtown' as it is known has become the focus of the Beirut government empowered private development corporation Solidere who has secured massive investment from companies in countries throughout the Middle Eastern region.

Investment into the regeneration of Lebanon is not restricted to Beirut, but because Beirut is the capital of Lebanon this is where the majority of business takes place, where most international businesses seeking a regional hub are relocating and where the first substantial amounts of foreign investment are being made. Therefore Beirut is quite possibly the first place a property investor targeting Lebanon will find potential for profits from rental income and asset capital appreciation.

Real estate sector investments in Lebanon remain robust despite recent events. Arab investors have remained committed to maintaining businesses in Lebanon despite hard conditions prevailing in the country, with the real-estate sector in particular staying noticeably active. Prices of buildings and apartment houses have risen, due to hike of prices of construction materials. Activity in investments has remained robust since 2005, and has not been affected with a series of dramatic military and political events that have taken place on the local scene since then, namely the summer 2006 Israel war and the ongoing internal political stalemate. Proportion of real-estate ownership by Gulf and foreign investors has noticeably risen. Activity in the real estate, between 2005 and 2006, was robust and the authorities collected fees exceeding $404 million.

The real-estate sector in Lebanon remains promising and the prices of plots are expected to rise, despite the current lackluster conditions. According to statistics prepared by the directorate general for real-estate affairs, up to 15,644 plots were sold in January of this year, 19,399 last February, with a rise of 3,755 units.

Purchase deals in various Lebanese regions, last year, amounted to 227,559 with collected fees reaching $200 million.

AmeriLEB

August 9th, 2007, 04:33 PM

I don't think its Saifi...Its spelled Sify and named after a company. I don't know :)

LBCSAT and Rotana Television Channels Merge to form media powerhouse

Prince Alwaleed
Riyadh, August 8, 2007: In a move that signals the onset of large scale media consolidation in the region the Arab television networks LBCSAT and RotanaRotana have joined forces by merging to form a new Middle East media powerhouse.

While the two entities will remain organizationally and financially independent they will work closely to create an integrated platform of channels that promises to provide viewers in the words of LBCLBC founder, Chairman and CEO Sheikh Pierre El Daher, "with more choice more variety and more quality". Under the agreement, El Daher will oversee the RotanaRotana channels which include Rotana Clip, Rotan Music, Rotana Khaleejah, Rotana Tarab, Rotana cinema and Rotana Zaman as well as the LBCSAT channel.

"Stand alone channels are becoming a thing of the past," said El Daher. "The free to air arena is becoming more crowded and more competitive. Consolidation is the best way to confront these challenges and to take media in the Arab world to exciting new level. I would like to recognize His Royal Highness Prince Alwaleed Bin TalalPrince Alwaleed Bin Talal for his vision in promoting Arabic music and film and to thank him for his role in bringing this partnership about."

Alwaleed who owns RotanaRotana and is a major shareholder in LBCSAT, said, "I have absolute confidence in the abilities of Pierre El Daher to help usher in a new age of Arab media. Pierre is rightfully among the most respected figure in regional TV. Over the last two decades with limited resources he has built LBCLBC into a leader in Middle East media. He has done this through a combination of courage, creativity, and sheer determination. I look forward to witnessing his further accomplishments as head of this dynamic new media platforms."

LBCLBC Lebanon's first private TV station started out in 1985 as a single channel operating with a handful of staffers in Beirut. Today it is multi channel network with hundreds of employees across the region. RotanaRotana launched as a record company in 1987 has become the world's leading producer and distributor of Arabic music and film with seven channels dedicated to Arabic entertainment.

As well as pooling these resources and combining the two network's brand value said El Daher, the new media house will be open to the inclusion of other partners in the future. "The possibilities are limitless." he said. "We feel that this partnership will evolve into a brand that viewers trust to bring them the best in programming and that advertisers will turn to for its each and credibility. Prince AlwaleedPrince Alwaleed few months ago acquired over 25% of the Saudi Research and Marketing GroupSaudi Research and Marketing GroupSaudi Research and Marketing Group through Kingdom HoldingKingdom Holding.

Alwadeed meanwhile said that the partnership between LBCSAT and RotanaRotana marks an important moment in the cultural and social development of the Middle East. "Pierre and I share the same vision and the drive to elevate the Arab world in the global community," he said. "A vibrant media scene is an important part of this goal and so our deal with LBCSAT is a step in the right direction. We are confident that the new group will bring significant value to the public while allowing the two entities to operate more efficiently."

Added El Daher: "In today's media landscape only groups able to offer a comprehensive package of targeted channels to advertising markets is expected to grow two to three fold over the next five years and we intend to be a part of this growth."

He concluded: "There is an immense pool of talent and creative energy out there waiting for the right opportunity. The new platforms of channels will be actively looking to form partnerships with entreprenuers in the world of TV production in order to bring the best content to viewers form the Gulf to the Maghreb."

-Ends-

About Rotana
RotanaRotana Audio Visual is the world's largest producer and distributor of Arabic music, movies and broadcasters of premium TV channels with direct operations and distributor partnership worldwide. RotanaRotana broadcast six TV channels and provides contents to TV channesl, Telecom Operators, Service Providers and Content Aggregators. RotanaRotana is headquartered in Riyadh Saudi Arabia, with offices in Jeddah, Cairo, Beirut, Dubai and Kuwait. For more information please visit http;//www.rotana.net.

About LBC
Launched in 1985 the Lebanese Broadcasting Corporation (LBCLBC) first private TV station and is today a leader in the Lebanese market and the region. The general entertainment channel primarily targets the 'Arab family' and has extended its brand role to provide a total experience by informing, entertaining, educating & engaging all members. The youth segment stand as the channels key secondary audience. LBCLBC aims to continuously to set new standards and maintain its leadership through innovative product offerings and its well defined brand positioning. For more information please visit: www.lbcgroup.tv

© Press Release 2007

Hassoun

August 10th, 2007, 11:27 AM

^^That's Gr8 ,YALLA we want more programs like STARAC :D:D

Hassoun

September 11th, 2007, 08:31 PM

Motorola announces partnership with Lebanon's CLASS
Tuesday, 11 September, 2007 @ 6:59 PM

http://yalibnan.com/site/archives/2007/09/11/motorola%20logo.jpg

Beirut - Motorola has reportedly entered into a strategic retail partnership with CLASS, a leading mobile phone and accessory retail chain in Lebanon. The agreement will see CLASS given full responsibility

motorola%20logo.jpg
for showcasing the US-based vendor's line-up and making its full product portfolio available to Lebanese consumers.

Both companies have a long standing relationship. Motorola’s partnership with CLASS has helped it to penetrate the Middle East market and increase customer satisfaction. CLASS will offer Motorola products like MOTOSLVR L9, MOTORAZR2 V8 and MOTO Q8. The company will also offer ROKR S9Bluetooth Stereo Headphones for hands free music experience.

Says Mustafa Al Shab, managing director, CLASS: “CLASS has a heritage of expertise in meeting the mobility demands of Lebanese consumers and has always believed in the strength of Motorola's brand and its products.”

CLASS distributes and retails MTC TOUCH mobility products in Lebanon. The company will be one of the first retailers in the region to offer the next-generation MOTORAZR2 V8 handset.

Sources: tmcnet.com

AmeriLEB

September 21st, 2007, 09:07 PM

Beirut to list one third of Cellular shares

As part of the privatization program, the Higher Privatization Council announced that the Lebanese government is planning on listing one third of the cellular shares on the Beirut Stock Exchange (BSE), where the remaining two thirds will be sold to private companies. This move will boost the activity on the BSE, and will generate around $6bn for the government that is expected to ease the burden of debt.

Lebanese government signs new deal with Microsoft

The Lebanese government has recently signed a 3-year deal with Microsoft and its partner MDS in order to provide the latest and most advanced operational systems for network and document management in all Ministries. This deal is part of the government’s plan to improve and train employees’ technological skills, enhancing productivity and efficiency through developed software programs and protecting intellectual property. It will also help in creating a unified software program among all ministries facilitating the communication and exchange of information.

Benta Pharmaceuticals opens in Dbayieh

After three years of construction, Benta Pharmaceuticals has opened a factory in Dbayieh. The factory is equipped with the latest technology and machinery complying to a strict criteria defined by the General Council for Nutrition and Health of the American government. In addition to various kinds of drugs, the factory will be producing medical appliances and will be supplying the Middle East area.

MREC and LMC complete housing development in Adma

Kuwaiti Al-Masaleh Real Estate Co. (MREC) has completed along with the Lebanese Massaleh Company (LMC) a housing development in Adma. The project is built on a 20,500msq area and includes 22 buildings where each
building includes 10 apartments. MREC is specialized in developing various real estate projects in addition to different investment activities. It was first established in 1989 with a capital of $70.6m

Hassoun

September 22nd, 2007, 05:33 AM

^^MUCH NEEDED NEWS
Thanx

AmeriLEB

September 24th, 2007, 07:38 PM

Economic Statistics

Airport Passengers Up 20.19% for the eight Months of 2007

Activity at the Beirut International Airport (BIA) posted a 20.19% yearly
increase up to August 2007, as the total number of passengers (including
transit passengers) went up to 2,255,919 from 1,876,932 for the same
period in 2006. Similarly, the number of flights (departures and arrivals)
was 25,777 for the first eight months of 2007, up from 21,360 for the same
period last year. For the month of August alone, the total number of
passengers was 424,105 down from 467,400 in July 2007 and from 357,173
in June 2006.

Total Number of Registered Cars Increased 22.5% up to
August

Figures released by the Association of Car Importers in Lebanon
revealed that the total number of new vehicles registered in Lebanon
reached 11,984up to August 2007, representing a 3.09% increase yearon-
year, of which 11,091 were passenger cars compared to 893sold for
commercial use. Rasamny Younis Motor Co. (RYMCO), distributor of
Nissan, GMC and Infiniti, topped the list with a market share of
21.18%. BUMC, distributor of Toyota and Lexus brands, came in
second with a market share of 14.60%; while Natco s.a.l. distributor of
Kia ranked third with a market share 10.33%. For the month of
August alone, the number of new cars registered increased by 631% to
2,209from 302 cars in August 2006.

Banks' Assets Up 5.3%

Commercial banks' consolidated balance sheet showed a $1.14 bn
monthly rise to reach around $79bn at the end of June 2007, and
increasing by 5.3% from the same period last year. The year-on-year
growth in assets is due to a rise of $2.5bn in total deposits (residents
and non-residents). The high dollarisation rate of deposits increased in
June to reach 76% - compared to 73% a year before – amid a 7.7%
yearly drop in LP deposits coupled with a 8.69% rise in FC deposits.
Loans in LP went up by 9.3% from the previous year compared to an
11.77% rise in FC loans. The ratio of loans-to-deposits as at end-June
2007 improved by 72b.p. to 37.5%.

Ministry of Finance report: Total financing deals reached $3.4bn

According to the Ministry of Finance, the total value of contracts signed by the Lebanese government exceeded $3.4bn, with an additional $900m to be signed by the end of the year . This will raise the total amount to $4.3bn which is equivalent to more than half of the amounts pledged during the Paris III conference. The report also mentioned that the public sector received to date a $100m loan from Saudi Arabia, another $77m from the IMF and finally, $500m from Malaysia. As for the private sector, it has collected $729m out of the $1.4bn pledged during the Paris III conference.

The EU pledges $113m to Lebanon before the end of the year

Following the Euro-med meeting for European Union and Mediterranean Finance Ministers in Porto, Portugal ,the European Union (EU) has promised to grant the Lebanese government the sum of €80m($112.7m) before the end of the year. In addition to committing to the pledges previously declared in the Paris III conference, the EU grant will aim at supporting Lebanon’s economic and fiscal reform plan. On the other hand, finance ministers agreed to launch a network of public finance experts in an effort to share experiences in fiscal policy issues.

ELCIM launches the first Lebanese software cluster

The Euro-Lebanese Center for industrial Modernisation (ELCIM) has announced the launching of the first cluster of IT specialised companies in Lebanon. This cluster , known as ‘Lebanon Softshore’ is formed of 17 Lebanese firms comprising some 400 programmers and is based on the concept of common marketing. This initiative arose after a series of workshops launched by ELCIM at the Institute of Industrial Research (IRI) in collaboration with the Association of the Lebanese Software Industry (ALSI). The forum emphasized the importance of such a consortium in improving the competitiveness of the sector in addition to reinforcing the capabilities of the small and medium enterprises (SMEs) in exporting to European, Asian and Gulf markets.

LeB.Fr

September 25th, 2007, 01:08 PM

Solidere A: +4.40%. Closed at 17.07$
Solidere B: +4.81%. Closed at 17.00$
Audi Bank: +9.36%. Closed at 66.00$
Bank of Beirut: +2.4%. Closed at 12.80$
Audi Bank (chahadat ida3): +9.95%. Closed at 70.20$
Bank Byblos (ashom moudraja): +3.43%. Closed at 1.81$
Bank Byblos (ashom zat 2wlawiyya): +4.32%. Closed at 1.93$
Blom Bank (chahadat ida3):+9.94%. Closed at 82.95$
Blom Bank (ashom moudraja): +1.56%. Closed at 65.00$

Hassoun

September 28th, 2007, 11:41 PM

Philip Morris to help curb cigarette smuggling in Lebanon

Daily Star staff
Thursday, September 27, 2007

BEIRUT: Lebanon signed a memorandum of understanding on Wednesday with the giant tobacco company Philip Morris to help end tobacco and cigarette smuggling into the country.

Philip Morris plans to train the Lebanese Regie company, a government controlled entity which hold a monopoly in the production of tobacco and import of cigarettes, to detect counterfeited cigarettes.

Finance Minister Jihad Azour said the agreement with Philip Morris will boost the confidence of companies in Lebanon and turn the country into a regional business hub.

Officials say the smuggling is depriving the treasury with millions of dollars in revenues.

Regie and Philip Morris will also exchange information on cigarette smuggling and disclose the names of the smugglers.

Regie imports raw tobacco and cigarettes into Lebanon from international manufactures.

At present, Regie is liable to pay all custom duties on the importation of tobacco products into Lebanon. There are no master commercial agreements between Regie and international tobacco manufacturers.

The Regie determines the quantity of goods to be imported each year according to market demand. The import process is agreed upon between Regie and the international companies at the beginning of each year.

However, the company can from time to time place orders with the international tobacco manufacturers for specific quantities of specific brands, and agrees with the manufacturers on the prices and delivery dates for such orders based on anticipated sales, existing inventory and goods in transit. - The Daily Star

AmeriLEB

October 4th, 2007, 03:33 PM

The gateway to the Middle East prepares to open its doors again
In the capital of Lebanon, the heirs of the ancient Phoenicians are planning to put their troubled recent past behind them
Robin Pagnamenta

Serge Hochar raises his glass and peers through it as if looking for something he lost long ago. “We have been making wine for 7,000 years,” he smiles. “Four thousand years ago we were exporting this wine to Egypt.”

Today, Beirut may be better known for its tragic recent history of war and sectarian violence than its wine, but Mr Hochar – Lebanon’s greatest winemaker – is a living example of a spirit of defiant entrepreneurship that lies at the heart of the nation.

From 1975 to 1990, as a brutal civil conflict ripped the country apart and claimed the lives of 100,000 people, he kept on making and exporting wine – even as his family emigrated to France and shells dropped on Château Musar, his beloved winery in the northern suburbs of Beirut.

“Sometimes we could do nothing for six months,” he said, deep in his cobwebbed cellar, surrounded by more than one million bottles of Château Musar. “The roads were controlled by rival militias and we could not move our grapes.”

With much of the once-ruined city now meticulously restored and amid a dazzling array of new shops, restaurants and nightclubs, Beirut is barely recognisable from those dark days – but the war with Israel last summer, the assassination last month of a prominent antiSyrian MP and a rumbling constitutional crisis demonstrate that life here is still far from normal.

Political instability remains the most potent threat to Beirut’s economic development, admits Sami Haddad, the Trade Minister, whose office overlooks a tangle of razor wire, tanks and machinegun-wielding troops. “It’s obvious that confidence is very low right now and the economy is way behind its potential,” he said, adding that until a new president is elected – hopefully by mid-November – it is difficult to predict much improvement.

For Beirut’s business community, the political paralysis is particularly frustrating because, until the first Israeli bombs fell on July 12 last year, Lebanon’s economy had been powering ahead, with GDP growing at a brisk 7 per cent.

“It was the biggest boom we have experienced and it offered a glimpse of what was possible,” Namir Cortas, a Beirut property developer, said.

Since then, GDP growth has slumped to around 2 per cent, while overseas investment for some of the grander construction schemes that had been planned in the city, largely financed with oil money from the Gulf, has dried up.

Nevertheless, in their eagerness to restore Beirut to its historic position as the business and financial capital of the Middle East, you sense in the modern Lebanese some of the single-minded determination that must have driven their ancestors, the ancient Phoenicians, to become one of the world’s most successful trading powers.

Despite the challenges, as a business city Beirut has a lot to recommend it, according to Anthony Ussher, the British chief executive of Standard Chartered Bank in Lebanon. “It’s one third of the cost of operating in Dubai and it’s a far more pleasant place to live,” he said. “If they could sort out the political situation, the big banks would be back here in a flash.”

With some of the best universities in the Middle East, Beirutis are highly educated, often fluent in Arabic, French and English and imbued with a strong work ethic. Wages and taxes remain relatively low, a key attraction for overseas companies seeking to invest.

While Lebanon has suffered as talented residents seek opportunities in wealthier and more stable countries, a global diaspora of Lebanese has emerged, keen to do business with or invest in their homeland. The remittances of successful Lebanese continue to support their country’s debt-laden economy.

Many have amassed vast wealth, including Carlos Slim, the Mexican-Lebanese telecoms tycoon, whose $49 billion (£22.6 billion) of assets make him richer than Warren Buffett or Bill Gates, according to Fortune magazine.

The international outlook of the Lebanese also plays to their historic strengths in finance and banking. Last month, for example, a Lebanese partnership announced plans to build Iraq’s first five-star hotel in the Kurdish city of Arbil, at a cost of $55 million.

“Once the security situation in the rest of Iraq improves, the Lebanese will be the first to go back in,” Ghazi Kraytem, president of the Beirut Chamber of Commerce, said.

This potential of Beirut as a regional gateway is a key attraction for foreign companies. Cadbury and British American Tobacco operate their Middle East headquarters out of Beirut, handling exports to neighbouring countries such as Syria, Jordan and Iraq.

However, it’s easy to put an optimistic gloss on Beirut’s prospects. Take a drive into the city’s southern suburbs, where hundreds of thousands of Palestinian refugees live in ramshackle squatter camps, and the problems are plain to see. Here, where Hezbollah security men struggle to direct traffic, unemployment is well over the 20 per cent national average and evidence of bomb damage from last year’s war is abundant.

The slums symbolise an even more intractable problem – the wider crisis in the Middle East and the looming threat of further civil unrest, or worse: a regional conflict involving Iran, Israel, the United States and perhaps Syria. Until there is a long-term solution to all of this, Beirut’s prospects remain clouded in uncertainty.

Back at Château Musar, Mr Hochar prefers to take a more philosophical view. He reminisced about a day in 1990 when Syrian troops began shelling the city. “Normally I would have gone down to the shelter, but on that day I was just fed up – so I opened a bottle of the 1972 [vintage], poured it into a ballon [glass] and went upstairs to my room.” For 12 hours, as shells exploded around him, Mr Hochar lay on his bed. Each time the building shook, he took another sip to calm his nerves. “Sometimes it’s difficult to explain why you do certain things,” he said, “but those were the times we were living in.”

Ancient city

Name Dates to 14th century BC and means “The Wells”. The original settlement was founded 5,000 years ago and over the years Beirut was an important trading centre for the Phoenicians, Greeks, Romans, Arabs, Ottomans and French colonists
Population 1.5 million - 2 million (last comprehensive census was conducted in 1932. Beirut is thought to account for about half of Lebanon’s total population of 3.9 million)
Area 19km2 (excludes suburbs)
GDP $20.1bn (Lebanon, 2006)
Exchange rate £1 costs 3,110 Lebanese pounds
Visa regulations Visas available at airport on arrival
Time zone 2hr ahead of GMT
Websites www.beirut.gov.lbwww.ccib.org.lb
Airlines offering direct flights from London to Beirut include British Airways and Middle East Airlines

LeB.Fr

October 4th, 2007, 04:13 PM

British airline bets on Lebanese rebirth as part of plans to revamp service
By Michael Bluhm
Daily Star staff
Thursday, October 04, 2007

BEIRUT: The British airline BMI views Beirut and the Middle East region as markets poised to blossom, and the company projects a 20-25 percent rise in passengers on its Beirut-London flights next year, BMI CEO Nigel Turner told The Daily Star in an exclusive interview. Like many entrepreneurs, Turner said Lebanon had the tools for a robust economy if its chronic instability were to cease, but he voiced the opinion that the country's security and political difficulties would taper off.

"Lebanon is in a period of a little instability at the moment," Turner said. "There are economic difficulties at the moment. In time, that instability will subside, and when it does, there's fantastic opportunity for growth. When stability comes, I think the area is ready to boom."

Beirut in particular "has got fabulous potential," Turner added. "This place has got everything. We haven't even scratched the surface of tourism in Lebanon."

Aircraft bearing the logo of BMI will replace those of British Mediterranean Airways (BMED) on October 28, as part of BMI's acquisition earlier this year of BMED, Turner said.

With the takeover of BMED, BMI has snagged daily slots flying to Damascus and Amman from its Heathrow hub, Turner said. The carrier, formerly known as British Midlands, will also ferry passengers thrice weekly to Aleppo, he added.

With much of the Middle East is awash in cash from soaring oil prices, BMI is looking to take advantage of the expected spike in air travel.

"It's not just Beirut, it's not just Saudi Arabia - it's the whole region," Turner said. "We take our responsibility to the region very seriously."
http://www.dailystar.com.lb

The airline launched service to Riyadh and Jeddah in 2005, as part of augmenting the category of flights known in the industry as mid-haul. Short-haul flights for BMI include Western Europe, while long-haul journeys mean crossing an ocean. Among mid-haul destinations, the booming Gulf region was an exemplary fit, Turner said.

"BMED was an ideal acquisition for BMI, which wanted to expand its mid-haul network," Turner said.

To snare BMED, however, BMI had to outbid Lebanon's wealthy Mikati family, which includes former Prime Minister Najib Mikati. The Mikati-controlled firm M1 Travel ponied up about $58 million in bridge financing to BMED, in exchange for a period when BMED could negotiate the airline's sale only with M1 Travel.

However, "negotiations broke down between the Mikatis and the [BMED] shareholders," said Turner. "Once the negotiations broke down, the shareholders approached BMI and asked us if we were still interested."

In late January 2007, BMI acquired 99.9 percent of BMED, Turner said.

"The Mikatis were repaid," he added. "This all happened within three or four weeks."

The Mikatis have boosted their activities in the travel industry after they sold a controlling interest in their telecommunications firm, Investcom, for $5.5 billion in cash and shares to South-African mobile operator MTN in May 2006.

Michael Bishop, also known as Lord Hesketh, owns 50.1 percent of BMI, while Germany's Lufthansa controls 29.9 percent and the Scandinavian carrier SAS the remaining 20 percent, Turner said.

Hassoun

October 5th, 2007, 07:16 PM

'Almost $1 billion in Paris III funds by year's end'
Azour claims substantial progress on reforms
By Osama Habib
Daily Star staff
Friday, October 05, 2007

BEIRUT: Finance Minister Jihad Azour said Thursday that he expected the Lebanese government to sign $992 million worth of soft loans and grants before the end of the year as part of the $7.6 billion in pledges made at January's Paris III donor conference. Speaking to reporters at the Grand Serail to unveil the third Paris III progress report, Azour told reporters that $817 million of this money will be earmarked for reforms and public debt reduction, while the remaining $175 million will be allocated to the private sector.

To date, the government has signed $3.434 billion worth of soft loans and grants with the donor countries that took part in the January 25 meeting.

The new cash injection, according to economists, will allow the government to finance public-sector needs in the event that politicians fail to reach a consensus on a new president.

But what worries bankers and investors is that the government will run out of cash in 2008, forcing it to borrow more money, presumably at hefty interest rates.

The government of Premier Fouad Siniora has pledged to implement reforms, restructure some public departments and, above all, privatize the telecom and electricity sectors.

Azour told the donor states that despite the delicate situation in the country, the government will have implemented 123 reforms out of 300 planned before the end of this year.

Economy and Trade Minister Sami Haddad said the government is doing its utmost to improve the climate for investors.

He added that the government recently reached an agreement with the World Bank to facilitate the work of new companies seeking operations in Lebanon by cutting the red tape.

Haddad also underlined the importance of reforming the electricity sector, which is a heavy burden on the Treasury.

According to the progress report, the Ministry of Finance has embarked on enhancing revenue collection, which constitutes another key measure in the authorities' fiscal adjustment strategy.

It added that all taxes outperformed Emergency Post Conflict Assistance targets - achieving 8 percent overall higher revenue collection than projected - and the International Monetary Fund mission concluded that this should allow the authorities to contain the primary deficit below the program ceiling.

Total government revenues increased by around 10 percent for the first six months of 2007 when compared against the same period in 2006.

More specifically, revenues from Casino Du Liban increased by 33 percent during this period, reflecting the increased share of the Treasury in the Casino's total net revenues from gambling to 40 percent (in effect from first quarter of 2007) from the 30 percent collected during its first 10 years.

In addition, comparative figures indicate that built-up property tax revenues increased by 11 percent during the first half of 2007 compared to the same period of the previous year.

The report also said that several steps have been taken toward the creation of Liban Telecom (LT) as a private company.

"The Ministry of Telecommunications has been working with an international human resources consultant on the procedures and processes necessary for the establishment of Liban Telecom," it said.

The report added that the first phase of this consulting project has been completed.

"As part of this phase, the LT organizational structure, corporate governance model and target profile for the board of directors and executive management board members have been defined," the report said.

It added that the privatization of the mobile phone operators has also progressed.

The report did not set a final date for the privatization of the telecom sector, but Azour has indicated that it will take place in 2008.

The report also gave a brief breakdown of what is said were achievements in the education, health and social departments.

Hassoun

October 8th, 2007, 03:24 AM

Lebanese real estate market remains unshaken by political, economic crises
Relative low cost of land, diaspora are driving forces
By Agence France Presse (AFP)

Monday, October 08, 2007

BEIRUT: Despite Lebanon's long-running political and economic crises on top of the Israeli war of 2006, new buildings are shooting up on the capital's skyline even if sale volumes have fallen. "With all that Lebanon has lived through since the assassination of [former Prime Minister] Rafiq Hariri in 2005, we had expected the market to shrink," said Guillaume Boudisseau, a consultant with the Ramco real estate company.

"Not only has the market remained stable, but construction sites are progressing quickly and [property] prices have increased by more than 50 percent in two years," he said.

Boudisseau said more than 200 new projects were currently under development in the capital, including luxurious residential skyscrapers with lofty-sounding names like "Sky Homes," "Dream Bay" and "Platinum Tower."

Lebanon has been in turmoil since Hariri's murder that has triggered a political paralysis between the Western-backed government and the pro-Syrian opposition. The two sides are now deadlocked over choosing a new president.

The country's infrastructure was extensively devastated by Israeli bombardments during last summer's war.

Construction permits in Beirut and the northern region of Tripoli totaled 3.17 million square meters in the first five months of the year, down by a significant 39.9 percent compared to figures from the same period of 2006, according to the latest quarterly report of Audi Bank.

"Real estate and construction activity were influenced during the first half of 2007, by the overall intricate political conditions and by the inflation of building materials, with mega-realty developments slowing down," it said.

But despite the downward trend in construction, Boudisseau said "there is a surprising wind of optimism among contractors, even if they know that the appetite of Gulf clients has shrunk since the last war and that the volume of sales is less than before" the war erupted in July 2006.

Central bank Governor Riad Salameh said the continued interest in real estate was partly due to the fact that property values in Lebanon were lower than in neighboring countries.

"Recently, prices in Beirut have become lower than in Damascus or Amman. It's a good argument to use with clients: 'Come invest here, it is now that you should buy,'" said Boudisseau.

"The cost per square meter in Beirut is between $1,000 and $4,000, which is significantly less than in Damascus and Amman," he said.

Real estate agent Christian Baz said in Lebanon you can buy a 300-square-meter apartment for $600,000.

Despite the decrease in sales, real estate agents have refused to lower property prices in the hope that a solution to the political crisis will spur further activities in the sector.

"Developers have maintained their prices, and some have even increased them. They think that if a new president is elected, they will benefit from a rise in prices, or that in the worse case scenario, the market will be stable," Boudisseau said.

The hike in property prices was mainly a result of the shortage of available land in the country's overcrowded capital and of marked increases in the cost of labor and prices of building materials.

Boudisseau said that the Lebanese diaspora - which far exceeds the local population of about 3.7 million - represents "more than 50 percent of the clients" in the real estate sector.

The central bank governor said that Lebanon's ailing economy - which suffers from a gigantic debt of $40.5 billion - largely depends on annual remittances by Lebanese expatriates of about $5 billion.

"They are the ones who are driving the [real estate] market because whether there is a crisis or not, they want a pied-a-terre in Lebanon," Baz, the real estate agent said.

He said that the market has learned to absorb shocks.

"Two or three months after an attack, or even a war, business is back to normal. It is like a miracle," he said. -AFP

Hassoun

October 8th, 2007, 07:02 PM

Siniora & Qatar discuss a new refinery for Lebanon
Monday, 8 October, 2007 @ 8:18 AM

http://yalibnan.com/site/archives/2007/10/08/siniora%20-%20emir%20of%20Qatar.jpg

Beirut / Doha - The Emir, Sheikh Hamad bin Khalifa Al Thani and the visiting Lebanese Premier Fouad Siniora discussed about the launch of a joint venture oil refinery in Lebanon.

Now that the feasibility study was over, the two countries should sit together and finalize its modalities, Sinora said.

A global consultancy was hired to conduct the feasibility study and it has submitted its report, the premier said.

The project is being launched at Qatar's initiative on a 'build operate and transfer' (BOT) basis, The Peninsula has learnt.

The Lebanese Prime Minister ruled out the possibility of giving nationality to the Palestinian refugees living in his country.

There are four million Lebanese who have rejected "100 per cent" the suggestion that the Palestinian refugees should be given Lebanese nationality. "We are also rejecting the idea… for nationalistic reasons," Siniora said here yesterday.

"They (the Palestinian refugees in Lebanon) are our guests and being 'accommodated' until they return home," Siniora told reporters before leaving Doha after a brief visit later yesterday.

He said his government was making efforts to bring the Palestinian refugees to Naher Al Bared camp in close coordination with the international community. The camp needs to be rebuilt with help from the world community, especially with assistance from the Arab states.

The camp should operate under strict Lebanese control and no weapons should be allowed there except those of the Lebanese army.

Siniora said a militia group called Fatah Al Islam with its base in Naher Al Bared had attacked the Lebanese security forces and committed massive massacre. "We made efforts to convince them to give up arms and surrender, so they could be put on fair trial, but they refused."

Now, the Lebanese security forces have to work to end this imbroglio. The problem is not between the Palestinian refugees and the Lebanese people. The problem is rather between the Palestinians and Lebanese on one side, and the Fatah Al Islam militiamen, on the other, Siniora said.

In response to a question about the crisis involving the presidential election in his country, the prime minister said: "We are not rushing things. We have to make all efforts to ensure that all the members of parliament take part in the vote".

About the Refinery project

Lebanon was among the first in the Middle East to build oil refineries in the 1950's, but now its facilities in Zahrani and Tripoli are inoperative making it one of the only countries in the region with no refining capacity, and consequently entirely dependent on imported fuel sources. With prices of oil soaring the cost of meeting annual energy consumption requirements is not sustainable in the long-term.

Sarkis Helaiss, the director general of oil facilities in Lebanon, and Hussein Ishaq, the director of refining affairs at Qatar Petroleum signed a letter of intent last July for a Memorandum of Understanding about developing Lebanon's refining potential.

The macro-economic consequences of the global energy market -- where an unstable oil supply is coupled with rising demand -- has been a double edged sword for Lebanon. At $ 80 per barrel the cost of crude oil is crippling the government, which must spend over $ 1.2 billion a year to meet its fuel consumption requirements, but paradoxically has been the necessary catalyst for the private sector to invest in Lebanon's refining facilities.

Qatar is financing the project . The goal is to determine whether the dormant and out-of-date Tripoli refinery should be revamped or destroyed all together, where supplies of crude oil will come from, and the type of fuel that Lebanon should refine.

According to the plan Qatar will consider investing in a large refining facility that will aim to process 150,000-200,000 barrels of petrol derivatives per day. The Qatari Energy Minister, Sheikh Abdullah bin Hamad al-Attiyah told that the construction of a refinery could cost up to $ 2 billion, but would potentially reduce Lebanon's energy spending by 30 to 40 % by reducing dependence on imported fuel.

The Qatari backed project is not the first feasibility study into Lebanon's energy sector. The EU, the European Investment Bank, and the World Bank have all commissioned studies on Lebanon's energy efficiency.

According to the 2004 World Bank hydrocarbon strategy study, the lack of any viable energy sources and a reliance on fuel imports, coupled with the rising demand for energy is a significant cause of the country's fiscal crisis. The World Bank estimated the Lebanese market currently consumes 98,000-99,000 barrels of oil per day, meaning it imports 5,000,000 tons of petroleum products annually.

The government covers the losses of Electricite du Liban -- the national power company which takes the lion's share of the energy imports -- with an $ 800 mm subsidy.

The 2003 Refinery and Natural Gas Law 549 set the parameters for energy sector reform, and according to Baroudi will lead to increased efficiency and transparency in oil market. The law establishes a framework for refurbishing and expanding the Tripoli refinery and a new structure in its pricing regime.

It also outlines a plan to decrease the state's role in the energy sector, by changing the government's focus from economic regulation, to enforcing environmental and safety standards and protecting people from market fluctuations in oil prices.

Though the country lacks natural oil and gas resources, with its central location, relatively transparent economy, and two non-operational refining facilities, Lebanon has always been well positioned to increase its energy efficiency.

Only now that the security of the global energy supply is in doubt -- due to political tensions in oil-rich regions and a shortage of refining capacity world-wide -- has the development of Lebanon's refining potential been recognized as a strategy at the regional level.

World-wide existing refineries process enough crude oil to meet present levels of global consumption, but world-wide demand will soon outpace refining capacity, due to the rapid industrialization occurring in China and India and the lack of refining facilities in America -- none have been built in 28 years.

"The choke point on refineries, especially in the US, is threatening the security of global supply so the petrol dollars streaming into Gulf States are being reinvested in refining facilities. America doesn't want to build new refineries because it takes so long and they don't make very much money, so producers are building in places where you won't get protests and infrastructure won't be damaged," Soloman Smith Barney oil consultant Peter Gignoux said.

Though re-launching the Tripoli refinery (there are no plans to rebuild Zahrani) is immediately geared toward filling local energy consumption needs, the remaining capacity will be marketed to meet regional requirements. In 2004 total regional refining capacity stood at 3.8 mm bpd. Currently there are seven refineries in Egypt, five in both Libya and Turkey, two in Syria and eight in Saudi Arabia. In financing the deal Qatar gets a new customer to process its crude oil.

"The business of oil is very straightforward. If you are an oil producer, you wake up in morning and you go sell your product. It's very attractive to have a consistent market to buy your crude every day," Gignoux said.

Picture: Lebanese Premier Fouad Siniora ( L) and The Emir of Qatar , Sheikh Hamad bin Khalifa Al Thani (second from left).

Sources: The Peninsula , AGOC, Ya Libnan

AmeriLEB

October 9th, 2007, 04:44 AM

He's [ushing them ..good for him...Before the war the pipelines and the refinerys were a huge economic engine...If this gets built not only is it one of the biggest investments in recent history bbut we can refine our own oil should drilling be succesful....Now we need Tapline Back!

Hassoun

October 9th, 2007, 11:18 PM

Lebanon to auction mobile networks in early 2008
Tuesday, 9 October, 2007 @ 11:21 PM

By Osama Habib
Beirut - The Lebanese government is planning to take bids on a two-thirds stake in each mobile operator, and offer the remaining shares to the public.
The final auction for Lebanon's two mobile networks has been scheduled for February 2008 after the regulatory authorities and concerned parties agree to technical requirements for the process, senior officials said on Tuesday. The presidents of the Telecommunications Regulatory Authority (TRA) and the Higher Privatization Council (HPC) told The Daily Star they have prepared the invitation for applications by companies seeking to bid for the licensing.
Interested companies will be allowed to buy two-thirds stakes in each of the cellular networks, while the government will retain a third of the shares.

The government will then issue an initial public offering (IPO) from its one-third stake in each company so the public can buy shares on the Beirut Stock Exchange.

The companies will have the rest of October and November to study the information provided by the TRA and HPC and they will be expected to present technical bids in January final ones in February.

"The information will be made public in a couple of weeks so that interested companies can get a good idea about the state of the telecom sector and the conditions for applications," HPC President Ziad Hayek said.

According to the original five-year plan submitted to the Paris III donor conference in January, the government was supposed to privatize the mobile sector in the third quarter of this year.

But the spate of assassinations and heightened tensions between the government and the opposition have apparently delayed this process.

"This government is setting the process in motion so that the next Cabinet that will be formed after the election of the president can continue the work of the previous government," Hayek said.

He stressed that the current government is not qualifying any participant and not taking any decision on the auction.

"Everything will be done through the new government and the new president of the republic," Hayek said.

Telecommunications Minister Marwan Hamadeh has said that the government hopes to fetch between $5 billion and $6 billion from the licensing of the two cellular networks.

Lebanon has a little more than 1 million mobile users who generate more than $750 million in net revenues for the government each year.
At present, MTC Touch and Alfa are operating the two mobile networks on behalf of the government in return for a monthly fee of $4 million each.

Hayek said that the government has the right to change any of the conditions that are in the call for bids.

He suggested, however, that it will be difficult for the next government to shelf or kill the auction process because the contracts with MTC Touch and Alfa are scheduled to expire in May and June of 2008.
"We have to give the two companies six-month notices before the expiry of the contracts," Hayek said.

TRA President Kamah Shehadi, told The Daily Star that the auction would be the most transparent and competitive process in Lebanon's history.

"The entire auction process will be broadcast live and in the presence of the press in order to show that we have nothing to hide," Shehadi said.

He added that between seven and eight companies have expressed keen interest in bidding for the 20-year licenses.

Shehadi said that there is no target for the privatization of the mobile sector in Lebanon.

"We have made it possible for bidders to participate in the process," he added.

Shehadi stressed that any consortium seeking to bid for the license must include an experienced mobile operator.

"This operator must acquire a minimum of 15 percent of the entire stake of each mobile network," he added.

The consortium may consist of mobile operators and financial companies.

To ensure that the public is better served, the TRA insisted that experienced mobile operators must at least manage the new companies even if they do not have majority stakes in the new licensees.

The government stressed that the proceeds of privatization will be used solely to retire part of the public debt that now exceeds $41 billion.

Officials and telecoms experts say that privatization has plenty of potential medium- and short-term benefits such as reducing cellular charges and encouraging more foreign companies to make investments in the country.

Source: Daily Star

AmeriLEB

October 9th, 2007, 11:48 PM

Lebanon: Making Easy Work of Business
08 October 2007

Liban post and government officials signed an agreement at the end of September that is expected simplify the business registration process in Lebanon.

The International Finance Corporation (IFC)International Finance Corporation (IFC)International Finance Corporation, a member of the World Bank Group, worked with the government to design the new process. The initiative was the result of one of eight advisory programmes undertaken by the IFCIFC in an effort to restart the economy following the summer war of 2006.

The new business registration process, aimed at making the set up of a business simpler, cheaper and faster, is anticipated to be launched by the end of this month. Currently, registering a business involves numerous trips to government offices, various fees and a large amount of paperwork.

The initiative is being touted by the government as likely to reduce the overall time, cost and complexity of the process by almost half and to cut the number of steps and trips to government offices from the current 12 to 17 down to a maximum of six.

"The reform sends a very positive message to the private sector and entire investment community," said Thomas Mouillier, IFCIFC regional program manager for business regulatory reforms.

Efforts were made to standardise the process by making it possible to register a new business with a single form that can be submitted to any branch of LibanpostLibanpost, Lebanon's official mail service network, along with the necessary fees.

Within an average timeframe of a week, LibanpostLibanpost will deliver a certificate of registration approved and stamped by the commercial registry, the tax identification number issued by the ministry of financeministry of finance and all other relevant documentation to the business owner. The IFCIFC has worked with LibanpostLibanpost to ensure that documents will be circulated between the various government agencies in a timely manner.

The announcement comes as Lebanon was placed 85th in Doing Business 2008, an annual survey by the IFCIFC that ranks 178 economies on the ease of conducting business in the respective countries. The survey is based on the appraisal of 10 indicators of business regulation that track the time and cost to meet government requirements in business start-up, operation, trade, taxation and closure.

In a year-on-year comparison with the previous report's results, although Lebanon moved up one place overall, it lost ground in seven of the categories, with its largest fall taking place in the starting a business category where it dropped 10 places. The survey reports it currently takes an average of 46 days to open a business in Lebanon, compared to the regional average of 38.5. The average cost to open a business in Lebanon is 94% of gross national income (GNI) per capita, compared to the regionall average of 66%.

The Lebanese government has often stated its aim to reduce the bureaucracy businesses have to endure in a bid to entice more investment. In the last decade, serious efforts were made to modernise the regulatory framework to facilitate foreign and local investment in the country. These have included a 2001 change in the law that simplifies foreigners' access to acquiring property and the investment development law of 2001, which offered investment incentives to businesses.

However, in the year surveyed by the IFCIFC's report, Lebanon failed to undertake any reforms related to the ease of doing business, while other countries in the region were highlighted for their progress. Egypt scooped the position of top reformer in the world, while Saudi Arabia was placed as the seventh-fastest reformer globally and was credited for undertaking one of the boldest reforms by eliminating layers of bureaucracy previously associated with setting up a business. The survey focuses on reform as it views it as a catalyst for investment, citing the fact that equity returns are highest in countries that are reforming the most. "Investors are looking for upside potential, and they find it in economies that are reforming-regardless of their starting point," said Michael Klein, World Bank/IFCIFC vice president for financial and private sector development.

The initiative has yet to be tested but officials hope it is the beginning of a new phase. "This agreement is a successful and concrete step toward creating a friendlier environment for investors in Lebanon," said Sami Haddad, minister of economy and trade. "It sets the stage for other reforms that are needed to attract more investment into the country."

© Oxford Business Group 2007
-------------------------------------------------------------------------

This major step was done without the Parliament...Once it meets again the fees will drop even more and the time would be cut to a few days..

AmeriLEB

October 9th, 2007, 11:50 PM

09 October 2007

During the past three decades, more than 500,000 young Lebanese have contributed in the economical development of Gulf countries and MENA region by running businesses in the public & private sectors.

At least 75% have already the capability to purchase a home worth US$100,000 to US$250,000. It is expected that the majority will consider returning home and enjoy the beauty of their homeland, its culture and the way of living after the current turmoil of political stagnation is resolved as expected in the near future.

The new market now is for those categories, keeping in mind that luxurious apts. are put on hold due to the reluctance of Gulf investors under the current political pressure.

Middle class income Lebanese families are potential buyers, since they know and follow up the country news and prices. More than 300,000 homes are in demand for the next 10 years only for Lebanese expatriates, if we add the local need at the basis of an average birth rate of 60,000 per year, the requirement would be at least 5000 homes per year, therefore the market need would be at least 350,000 homes in the next coming 10 years.

UK has issued a 20 year National Housing Target for nine regions. They assigned Kate Barker a chief economic advisor at the CBI to prepare a review of housing supply which was published in March 2004 recommending building 190,000 private sector homes per annum. Government's response to Barker's review of housing supply was issued in December 2005 accepting the case set out for a step-change in housing supply, the measures set out in this response to reform planning and enable timely infrastructure provision will provide for more homes to help next demand of 200,000 net additions per year for the next 20 years.

Lebanese authorities are urged to set up a plan for such demand taking into consideration the architectural, environmental and infrastructural aspects of new land to be developed according to a clear concept.

Therefore; Land prices in Lebanon are expected to step higher and more land should be developed in the suburban areas. This will require an infrastructure and utility plans.

Rural areas should be a convenient candidate to host a portion of these homes due to the social ties and charm of these areas.

The private sector is expected to invest more than 25 billion U.S.D just in middle income residential units in the next 20 years.

Can we expect our government to react for such a new housing plan for 20 years?

The Lebanese expatriates constitute the new blood and hot beats of Lebanon's heart, is our government trying to provide the best political stability to bring those expats back?

Will our next president dedicate time and efforts to set up a national plan to provide a decent home for every family to live in security and peace in a real democratic society?

We do hope so...

AmeriLEB

October 11th, 2007, 04:24 PM

Bekaa Hatches Militants, Produces Drugs and Wine
Better known as a fertile ground for drugs and militancy, Lebanon's Bekaa Valley is also gaining a new reputation as a wine making region increasingly attractive to vintners.

More than a dozen labels have appeared on the market since the end of the country's 1975-1990 civil war with each vying for recognition among the growing crop of New World wines.

And judging by the awards some of the wines are receiving at international fairs, they are holding their ground amid stiff competition and peaking the interest of connoisseurs.

"The Lebanese wine industry today produces about seven million bottles annually out of which some three million are exported," said Serge Hochar, head of the Union Vinicole du Liban, a loose association of wine producers.

"It is a 25-million dollar industry out of which about 10 million dollars represent exports," Hochar added.

That is more than triple the receipts of the mid 1990s when the wine sector began taking off after the devastating years of war.

At the time, the lush Bekaa Valley, known in Roman times as the breadbasket of the world and home to a Roman temple dedicated to Bacchus, the god of wine, was synonymous with guerrilla activity and hashish rather than wine making.

"In 1975, when the war started, we were selling 97 percent of our production in Lebanon," said Hochar, whose family owns Chateau Musar, which gained world attention at the Bristol Wine Fair in 1979.

"In 1990, 97 percent of our production was being exported", mainly to Europe and the United States," he added.

And whereas the country had some 700 hectares (1,729 acres) of vineyards in the early 1990s, it now boasts about 2,000 hectares with more being added annually.

"If you could construct the perfect wine-growing area, it would be the Bekaa," said Michael Karam, who published an award-winning book on Lebanese wines in 2005.

"Wine-making conditions there are perfect, because there is very little disease, you've got 320 days of sunshine, the right altitude and the right soil," Karam explained.

With that in mind, Lebanese wine has nowhere to go but up, added Karam.

"It still has to make its mark internationally but it already has a very good reputation abroad founded primarily on the performance of Chateau Musar in Britain," he argued.

Hochar managed to establish his wine on the international market in the late 1970s thanks to its quality and tales of him braving bullets and bombs to transport his grapes from the Bekaa to his winery near Beirut.

"So when you opened one of his bottles, you were getting a wine made in the heat of conflict," Karam said. "It added an exotic note."

At Chateau Ksara, the country's oldest winery which is celebrating its 150th anniversary this year, the 2007 season is already being toasted as grape pickers this week finished harvesting the last vines.

"I think we're going to have an exceptional year as far as the maturity of the grapes is concerned," said Paulette Bou Mouncef, in charge of the vineyards.

"We had two heat waves toward the end of summer and that's a plus for the grapes," she added, casting a proud eye over neat rows of vines in Qanafar, where Chateau Ksara has a domain.

She said the winery, started by Jesuit priests in 1857, was experiencing three percent growth annually with 2.2 million bottles produced, more than half of them for export.

One winery that has been gaining attention in recent years is Massaya, which was founded in the mid 1990s by two brothers and their French partners.

Their wines have quickly moved up the ranks and are now served in such posh establishments as Paris' Ritz or George V hotels.

As for Hochar, who considers himself a "wine priest", his aim is to put his country's wines firmly on the world map and to have people think of wine rather than war when referring to Lebanon.

"Some people are not aware that we were the country of milk and honey, that we are a very old civilization and the epitome of civilization is wine," he said.

"I advise people to drink a glass of wine a day, preferably good wine which should be Lebanese."(AFP)

Beirut, 11 Oct 07, 15:12

Hassoun

October 13th, 2007, 04:05 AM

New investments in REAL ESTATE SECTOR (sorry it's in arabic)

From Almustaqbal Newspaper

صفقات عقارية جديدة
واستناداً الى هذه الرؤيا المستقبلية، وعلى الرغم من ارتفاع اسعار الأراضي في مختلف المناطق اللبنانية، اقدم اخيراً عدد من المستثمرين الخليجيين على شراء مساحات كبيرة من الأراضي وتنفيذ مشاريع عقارية عدة منها:
* صفقتان عقاريتان، أقدمت بموجبهما شركة كويتية على شراء مساحة نحو 40 الف متراً مربعاً من الاراضي في منطقة ضهر الصوان الجبلية، وتشمل كل صفقة مساحة 20 الف متر مربع.
وقد لفتت هاتان الصفقتان المراقبين العقاريين الذين اعتادوا ان يركز المستثمرون الكويتيون استثماراتهم العقارية بنوع خاص في مناطق عاليه وبحمدون وحمانا اي في المتن الجنوبي من جبل لبنان.
* صفقة أرض مساحتها نحو 120 الف متر مربع في منطقة النعس بحر صاف الجبلية، اقدم على شرائها الشيخ خليفة بن زايد رئيس دولة الامارات العربية المتحدة حاكم ابو ظبي، وذلك لبناء قصر عليها، ويقول احد المقاولين ان "تصوينة القصر" وحدها ستكلف نحو خمسة ملايين دولار.
* أقدمت مجموعة استثمارية اماراتية على شراء قطعة أرض كبيرة في منطقة باكيش ـ بسكنتا الجبلية لتنفيذ مشروع سياحي للتزلج فيها.
هذا بالاضافة الى استثمار اماراتيين في مشروع مارينا شمال العاصمة بيروت ومساحته 195 الف مر مربع.
* اشترى بنك دبي الاسلامي قطعة ارض مساحتها 40 الف متر مربع في منطقة المنصورية شرق العاصمة بيروت.
واذا كانت الاستثمارات تتركز حاليا على القطاع العقاري، فان بعض المستثمرين الخليجيين متمسكون بمشاريعهم المصرفية والمالية، ويترقبون نتائج الاستحقاق الرئاسي، لاتخاذ قرارات حول التوسع بها.

LeB.Fr

October 13th, 2007, 11:09 AM

^^Not bad at all!I like the touristic projects. I'm a bit against the palace project but though it would be nice to have a big palace in the mountains. I would prefer if the owner was Lebanese.

john2890

October 13th, 2007, 03:42 PM

O >>> M >>>> G ....thats exactly what i foretold would happen. i always thought about how amazing it would be if castles and palaces would be built on the Lebanese mountains. and i was like yea, someday a Saudi guy would build the first one...and IF my "vision" comes true, more rich people will follow and do the same all around the mountain tops.
thats either the weirdest thing OR the most predictable thing. i cant tell!
but i think it's great (unless of course its a political tactic in order to take over Lebanon...bit by bit ! because if you come and think of it 120.000m*, thats a pretty big piece of land, who knows what/who that guy could be hiding/storing/building etc... its quite worrying to be honest.)

can someone translate the rest of the passage/ i was only able to read the big bold section!

Hassoun

October 13th, 2007, 04:05 PM

^^It's all big bold now :)

john2890

October 13th, 2007, 06:42 PM

oh thanks!...but i had already used google translator! it "kinda" did the worked :D

Hassoun

October 13th, 2007, 07:47 PM

TODAY THEY PUT A REPORTAGE ON LBC NEWS,talking about Projects 'ON HOLD' koz of the Sit-in and the political situation,they mentioned 'Beirut Gate' and 'Phoenician village' as ON HOLD PROJECTS,while they said other projects were cancelled,i wonder what are those projects.

Hassoun

October 21st, 2007, 05:03 AM

OGERO announces plans to cut rates on international phone calls
Daily Star staff
Saturday, October 20, 2007

BEIRUT: The director general of OGERO announced on Friday that the company plans

to reduce its international phone rates at the beginning of next month. "We plan to cut the international phone rates on November 1 and this will be the second cut on international calls in two years," Abdul Munim Youssif told reporters at a news conference in Beirut.

OGERO said that international calls will be cut by 20 percent to the Arab and European countries, 45 percent to Africa and Latin America and 55 percent to Asia.

With the new cuts, the one-minute charge to most countries will be LL600 during the day, LL400 during the night or $0.40 and $0.27 respectively.

Youssif said that reducing the international phone charges will stimulate the economy and encourage more subscribers to make international calls.

The official stressed that OGERO has paid all its dues to the municipalities for the first and second semester of 2007.

Youssif also defended the monthly payments of fixed telephone bills. OGERO decided three months ago to collect the fixed telephone bills on a monthly basis instead of every three months.

But many citizens complained that they are forced to leave their work and stand in a long line at OGERO offices just to pay the bill.

However, OGERO officials said the step has allowed the company to better organize its accounts and send all the revenues to the treasury on time.

Youssif said that OGERO plans to collect the phone bills directly from residences or through LibanPost.

"The monthly phone bill will also allow the subscribers to control their spending," Youssif said.

OGERO is still under the control of the Telecommunication Ministry.

The government hopes to privatize the land-line service by late 2008 once it auctions off the country's two cellular networks.

The government generates more than $1.3 billion from both the fixed telephone and cellular networks each year. - The Daily Star

AmeriLEB

October 23rd, 2007, 06:28 AM

Lebanon’s looming economic crisis
The country is ready for reform, but are its leaders?
Benjamin Ryan, NOW Staff , October 22, 2007

In September, the World Bank granted Lebanon more than $100 million for economic reforms which the country pledged to introduce at Paris III. (AFP PHOTO/ANWAR AMRO)
As anyone tasked with putting together an iftar this past Ramadan could tell you, food prices in Lebanon have jumped dramatically over the past several weeks. In fact, prices for all sorts of goods have been rising in the last year. As if this weren’t enough, Credit Suisse also forecast that Lebanon will see almost no GDP growth for 2007. Paralyzed by political crisis, Lebanon’s economy is in danger of going into a tailspin. How long does the country have before the crisis becomes critical?

Once the banking capital of the Middle East, Lebanon entered an economic dark age following its 1975 descent into civil war. It emerged 15 years later with a broken and corrupted private sector, devastated public infrastructure and a government in shambles. After 10 years of state-building, market reforms, international financial assistance and major development projects led by five-time Prime Minister Rafik Hariri, Lebanon was beginning to get back on its feet – and back on the map. However, this decade of rebuilding was costly, and Lebanon saw its public debt rise from $2 billion to $25 billion between 1990 and 2000. Interest payments on the debt pushed the fiscal deficit to 25% of Lebanon’s GDP in 2000, as the economy was slowing down.

Obstacles to reform

The Hariri government instituted a series of reforms known as Paris II that significantly improved the fiscal situation, but political squabbles over privatizing Electricité du Liban and the telecom companies kept the reforms from being fully implemented. By the end of 2005, the public debt was 175% of Lebanon’s GDP. Hariri’s reforms accelerated the economy between 2000 and 2004, but his assassination in February 2005 and the political tensions that resulted practically ground the country to a halt.

Since then, Lebanon has been thrown for one loop after another. 2006 was set to be a record year economically, but the Israeli invasion and blockade destroyed the tourist season along with much of the country’s infrastructure. As Lebanon was beginning to recover from that disaster, March 8 protesters took to the streets and set up camp downtown, where they remain to this day. The opposition sit-in and the continued string of high-level political assassinations ensured that 2007 saw another abysmal tourist season. Credit Suisse announced Lebanon’s 2007 GDP growth at only 0.5%. With the current political deadlock, Lebanon’s economy has virtually ground to a halt, yet inflation and the cost of living have taken off.

Mazen Hanna, an economic advisor to Prime Minister Fouad Siniora, explained to NOW Lebanon that, “This is ‘imported’ inflation, meaning that it is inflation that is being caused by outside factors.”

Sources of the current problem

Monetarily, Lebanon is a highly “dollarized” economy, meaning that bank reserves are frequently held in dollars; dollars are also accepted in stores and restaurants almost as readily as Lebanese pounds. Yet fully 60% of goods imported to Lebanon come from the Eurozone. As the dollar has fallen against the Euro, those imports have become correspondingly more pricey.

This latest increase is just the most recent bump in the trend that took off after the 2006 summer war between Hezbollah and Israel. Speaking to NOW Lebanon, Lebanese economist Charbel Nahas noted that, “The Lebanese economy is currently under the influence of two shocks. One is the institutional deadlock, which translates itself to both the public and private sectors. The second shock is due to the dramatic rise in oil prices.”

High oil prices have contributed to the government’s fiscal problems as well. Lebanon imports the majority of its energy in the form of fuel oil, having none of its own.

Another reason for the virtual economic breakdown is the present political deadlock. Nahas explained that, though local capacity is ebbing, there remains a large influx of investment capital from the Gulf that has kept things afloat.

“On the financial side, the negative and positive effects are compensating each other, because of the availability of large amounts of capital. Thus, real estate and stock prices remain high,” he said.

“On the other side, some factors are not compensating but rather aggravating each other, such as high prices and the investment capacity of Lebanese firms.”

The high prices require the inflow of more capital to compensate for the inability of Lebanese firms to cover investment costs here, which then raises prices again. Thus, the money flowing in from the Gulf keeps the economy from completely breaking down, yet fuels the inflation that is making the average Lebanese’s cost of living so high.

Nahas added, “As long as the inflow of capital continues, the situation will continue itself for several months.”

Yet the Gulf investors keeping the economy afloat could grow tired of Lebanon’s instability and look elsewhere for opportunities. Beirut Gate, the largest real estate investment project in Lebanese history, was called off just this past week. If more firms follow Abu Dhabi Investment House’s lead and give up waiting for the Lebanese to reach an accord, Lebanon could find itself out of time for reforms.
Looking for solutions

Privatization has long been recognized as one of the most urgently needed reforms in Lebanon, as a move that could not only dramatically increase the quality of services offered to Lebanese consumers, in particular in the electricity and telecoms sectors, but also produce significant revenue that could be used towards paying off the national debt, which would in turn trigger further economic benefits. However, it has to be done right – it is largely concerns over how privatization would be implemented, and not the concept itself, that have held up progress on this front in Lebanon. Although the government is currently discussing pushing forward with privatization reforms that have been on the table since 2002, Nahas does not anticipate a breakthrough any time soon.

“Privatization has been on the table for the past five to seven years, so this is not new. In the past two weeks, the government launched the process to start the auction for the cell phone companies. But I don’t think, and the government does not believe either, that anything can practically be achieved in the current climate.”

However, President of the Higher Council for Privatization Ziad Hayek stressed to NOW Lebanon that the process of privatizing the mobile network must be carried out now, regardless of the political crisis. The current contracts with MTC Touch and Alfa, who currently operate the mobile networks on behalf of the government, are due to run out in May and June of 2008, respectively. The government has a contractual obligation to both companies to give them six months notice as to whether the government wishes to renew their contracts. Hayek says that the government has reached the deadline to start the process for privatizing the mobile network and warned that “if the government does not launch the process of privatization now, the future government will have no option but to renew the contracts of MTC Touch and Alfa.”

Opposition MPs have objected strongly to the privatization move at this time, claiming that the utilities would just be sold off to investors close to the government in sweetheart deals. Hayek, however, listed four checks in the privatization process to ensure that it is transparent, bipartisan and competitive.

“Firstly, the current government that is setting the terms and conditions will not actually be carrying out the final stage of the privatization, the next government will be. Secondly, we want the auction to be as open to the public [as possible] and hopefully it will be televised. Thirdly, the whole process of privatization is actually being run, not in the hands of any politicians, but by Lebanon’s Higher Privatization Council and the Telecommunications Regulatory Authority.”

Hayek further stated that, contrary to some of the current political rhetoric, all sides agree that privatization is needed. More importantly, according to Hayek, the revenue that the sale of the network would generate is desperately needed by the state to service the huge public debt.

“The disagreement is between those politicians that trust the process and those that do not,” he added.

Time to act

The report released after Paris III conference last January made clear that, without reforms, budget deficits would return to 20% of GDP by 2010, with the vast majority of that money going to pay Lebanon’s massive debt. As the government struggles to finance itself, interest rates would rise, threatening the already troubled banking system and fragile exchange rates.

Hanna explained, “Unlike in Paris II, the funds now are tied to reforms. By mid-2008, if we don’t deliver on reforms on our end, we would be behind on our commitment and the donors would reconsider their investments.”

“Bank deposits, balance of payments, and fiscal numbers are all fine. We’re still on target according to the IMF. … All the preparations for reforms have been completed. Now the government just needs to take the decision to go ahead,” said Hanna.

With tensions escalating nearly a year into Lebanon’s political deadlock, it might seem like an inopportune time for the government to push forward with reforms. However, it looks like we may have run out of time: If the government fails to act now, Lebanon could soon find its political crisis matched by an even greater economic one.

-Deen Shariff-Sharp contributed reporting to this article

AmeriLEB

October 26th, 2007, 06:19 PM

Only in for the long haul
Gulf investors give up on their short-term projects, citing instability
Benjamin Ryan, NOW Staff , October 25, 2007

Protesters assail downtown’s economy with the powerful use of metaphor.
One year ago this week, the first plot of land was sold in the massive real-estate project known as Beirut Gate. Today, the project stands idle. Not a single spade of earth has been turned, and the opposition sit-in going on around it shows no signs of withdrawing. As the first round of investors are pulling out, the project coordinators and other foreign investors have to ask themselves if Lebanon is really worth the trouble.

At $600 million, Beirut Gate was the largest real-estate investment deal in Lebanese history. Abu Dhabi Investment House (ADIH) announced the project in early 2006 with the intent to create an integrated commercial and residential high-rise area between downtown and the Foch-Allenby highway. ADIH sold an initial $160 million in stock to get things rolling, promising investors a 37.5% rate of return over 18 months.

Then the troubles began. In July of last year, Israel and Hezbollah went to war, devastating the country and virtually halting all economic activity for a full two months. But by October, with the war and blockade gone, the country was slowly putting itself back together. Beirut Gate was just one of several projects officially launched in the fall. Beirut Gate’s first plot of land was sold within two weeks. Business in Lebanon was finally looking up.

That is, until December 1, when a massive Hezbollah-led protest shut down the city once more. The protesters who descended on downtown Beirut set up their tents coincidentally right where the Beirut Gate project should have been breaking ground. Needless to say, the tents, if not the protesters, remain today, and investors are getting anxious.

Noora Al-Nusuf, Director of Corporate Communication for ADIH, however, said that the project was still on. “The Beirut Gate project has not been called off at all,” she assured NOW Lebanon. “We were fortunate in that the war in 2006 and the subsequent civil disruption in Lebanon have not damaged our project, since we have land rather than buildings at this stage.”

Imad Nesnas, Chairman and CEO of Bonyan International, the company which brokered the sale of the first Beirut Gate plot, likewise said that his company still had a stake in the project, but was waiting on political rapprochement. “This situation is the result of a force majeure by the protesters,” said Nesnas. “ADIH has every intention to follow through with the project; we just need to see that things clear up.”

Both Nusuf and Nesnas seemed convinced that Lebanon’s economy would eventually take a turn for the better. “Lebanon’s political instability is relatively short-term,” believed Thomas Schellen, an economic analyst with Zawya, a leading Middle East business information provider.

“The recovery of high-quality property is extremely costly [in the region],” he continued. “You have to make an island in Dubai in order to have something; you have to irrigate half a desert in Saudi Arabia in order to build a city. The basic cost of developing land in Lebanon compared to other parts of the Middle East is still extremely low.”

Lebanon is still very attractive to investors looking for long-term investments. Despite the country’s constant state of turmoil, there are still many wealthy Saudis and Kuwaitis willing to brave the storm and establish a strategic presence in the country.

Nesnas, for example, who also works with the developers behind Beirut Garden, said that his company was going ahead with the project: “We have a contractor lined up, and it should be completed within 22 months. There’s no problem there; nobody is sitting on our site, and we can continue to work.”

There are, actually, numerous projects still underway downtown, though many have been forced to proceed at only a snail’s pace. A few developers claim that the crisis has not affected their plans at all, and still others, like Nusuf, maintain that their firms have not suffered any serious monetary setbacks.

Schellen, however, was not so sanguine: “To say no money has been lost is a euphemism. You spend some $600 million on just purchasing the land, and then planning and investing the money into the master plan and architecture design, so you spend another $100 million, then I would see the opportunity cost going even higher than $50 million.”

The “opportunity cost” represents the money that could have been made if one had invested differently.

“If I have $600 million, and I invest it in Lebanese T-bills or something similar, I can get at least 9%,” Schellen explained, continuing, “If I have an aggressive portfolio of investment, I may go higher. To stay conservative, they could get at least 8% anywhere.”

These types of calculations have already forced other investors to go home. Phoenicia Village, another comparable major real-estate deal just north of Martyr’s Square, recently folded up their operation and returned their investors’ funds. As the political crisis lengthens, more and more money will be driven out of the Lebanese economy as short-term investors put their capital elsewhere.

Even larger, more long-term investors are staying their hand these days. When asked about ADIH’s other investments in Lebanon, Nusuf was cautious. “With regard to other investments in Lebanon, we will begin looking at these once the completion of Beirut Gate is within our sights.”

Unfortunately, that rather understandable caution is crippling the Lebanese economy today. Last year, most economic forecasts predicted at least 6% real GDP growth for Lebanon for 2007. The most recent estimate from Credit Suisse predicts only 0.5%.

Schellen calculated, “If you take the GDP figure of $22 billion – on the medium to generous side – then 6% of $22 billion is about $1 billion, more or less. So the money lost to the economy this year because of this political bickering can easily be said to be in excess of $1 billion, or 15% of all the money that was promised in Paris III.”

Lebanon may be a good long-term investment for folks in the Gulf like Nusuf and Nesnas, but as John Maynard Keynes once famously said, “In the long run, we’re all dead.” The damage being done is real, immediate and only getting worse. Gulf investors may be able to wait out the present crisis in relative comfort, but the Lebanese are by and large stuck with Lebanon.

LeB.Fr

October 26th, 2007, 07:29 PM

"Phoenicia Village, another comparable major real-estate deal just north of Martyr’s Square, recently folded up their operation and returned their investors’ funds." what does this mean? :S

Nadini

October 26th, 2007, 07:37 PM

^^ the project right now is a vision. Basically its been called off.

AmeriLEB

October 27th, 2007, 11:28 AM

I think it will be back if we pass thru this year politically..they still own the land and the drawings were done etc..I liked that project even tho it was really big for that plot..plus who wants to look at the port? They will evetually turn the first basin into a cruise terminal tho

LeB.Fr

October 28th, 2007, 04:55 PM

08 April 2006
Beirut (APD) - Multibillionaire Bahaa Hariri, the son of slain Lebanese Prime Minister Rafiq Hariri announced on Friday his intention to invest between $7 and $10 billion for the construction of a large scale city in the Aqaba Special Economic Zone (ASEZ) in southern Jordan on the Red Sea coast, the Dubai-based al-Bayan daily reported Saturday.

The project is considered the largest urban regeneration undertaking in Jordan, the daily said.

The city will be built on an area of more than 10 million square meters. It will include residential complexes, hotels, entertainment spots, industrial areas, shopping centers and artificial lakes.

Bahaa Hariri is due to sign a memorandum of understanding (MoU) on Saturday with Nader Dahabi, chief commissioner of ASEZA concerning the project.

Hariri chairs the board of directors of the Amman-based real estate firm Abdali Investment and DevelopmentAbdali Investment and DevelopmentAbdali Investment and Development
News | Profile | Officers
which is developing the Abdali project in Amman at a total cost of $1.2 billion.

Saaddeen the brother of Bahaa Hariri is chairman of Saraya JordanSaraya JordanSaraya Jordan
News | Profile | Officers
another real estate firm owned by the Hariris in Jordan.

Three months earlier, Saraya JordanSaraya JordanSaraya Jordan
News | Profile | Officers
launched a $600 million tourism project in Aqaba that includes a beachfront city around a man-made lagoon, spanning about 610,000 square meters.

Aqaba has so far lured real estate investments worth $3.5 billion since its inception in 2003.

According to Forbes Magazine's 20th annual list of the world's billionaires, both Bahaa and Saad Hariri, ranked 158th out of 793 billionaires, with a fortune estimated at 4.1 billion each.

Abdali Investment and DevelopmentAbdali Investment and DevelopmentAbdali Investment and Development
News | Profile | Officers
was established in 2004, it is 50% owned by Jordan Oger and 50% by Jordan's National Resources Investment and Development CorporationNational Resources Investment and Development CorporationNational Resources Investment and Development Corporation
News | Profile | Officers
. [FC]

By Shikrallah Nakhoul, APD Staff Writer in Beirut

© APD (Arab Press Digest) 2006

:ohno: :ohno: :ohno: :ohno:
Why can't he put all this money in Lebanon projects?
Anyway, good for Joradn.

Hassoun

October 29th, 2007, 07:22 PM

Lebanon projects a deficit of 6.3 pct of GDP in 08 budget
Monday, 29 October, 2007 @ 5:54 PM

http://yalibnan.com/site/archives/2007/10/29/jihad%20azour%20%20press.jpg

Monday, 29 October, 2007 @ 5:54 PM
Beirut - Lebanon's draft budget for 2008 forecasts a deficit equivalent to 6.3 percent of gross domestic product , the finance ministry said on Monday.

A presentation of the draft budget, approved by cabinet on Saturday, forecast spending of 11,195 billion Lebanese pounds , revenue of 8,810 billion pounds and GDP of 37,826 billion pounds.

Projected real GDP growth for 2008 was 4.0 percent, the ministry said. Suffering from a protracted political crisis, the economy is forecast to grow just 2 percent this year.

The economy is also saddled with a massive public debt equivalent to some 180 percent of GDP.

Debt servicing costs are forecast to fall 5 percent in 2008 from their forecast level for 2007, the finance ministry said, attributing the drop to financial assistance pledged by international donors at a Paris meeting in January.

The primary surplus -- excess government revenue over expenditures before interest payments -- is forecast to more than double to 1,543 billion pounds from a forecast 735 billion pounds this year.

Foreign investors generally view the primary surplus as a key gauge of a country's ability to service its debt.

Sources: Reuters

LeB-iT

October 30th, 2007, 04:33 PM

Sorry I don't have the article, but a couple of days ago i read in al-baladonline that Jounieh is getting a new touristic seaport!

LeB.Fr

October 30th, 2007, 05:44 PM

^^They are ruining Jounieh with all these marinas. I hope it's something good, like ATCL. Aslan where is there place to do it?

Was there any render?

john2890

October 31st, 2007, 04:03 PM

^^ there's no hope with reviving the beach in jounieh. the marina's have been there since the 60s (?) . so they may aswell keep on building marina's, and make the place look like monte carlo :) there's only one "beach" in jounieh, the one below the casino and honestly i'd rather they build a marina there rather than call that a beach. :(

Hassoun

November 2nd, 2007, 03:46 AM

Cellular network privitization coming soon for Lebanon
Thursday, 1 November, 2007 @ 8:50 PM

http://yalibnan.com/site/archives/2007/10/09/lebanon%20mtc%20touch.jpg

http://yalibnan.com/site/archives/2007/10/09/lebanon%20alfa.jpg

Beirut - Debt-laden Lebanon, which has among the highest phone bills in the world, is preparing for the privatization of its mobile network expected to take place early next year.

The Telecommunications Regulatory Authority is holding a press conference on Friday to set the date for applications to take over ownership of the country's GSM network, with a January 2008 deadline for applications.

The GSM network, with about 1.1 million mobile phone lines in operation, is owned by the state and currently operated by Kuwait's MTC Touch and Lebanon's Alfa whose contracts expire in mid-2008.

Under the privatization plan, three operators will own and run the network by the first half of next year, TRA president Kamal Shehadi said.

The mobile network has been one of the government's main sources of revenue in the last few years, generating about 900 million dollars a year.

"Our local and international tariffs are among the highest in the world, if not the highest," Shehadi said.

"Lebanese people pay an average of 65 dollars per month, against 40 dollars for a Saudi... and a European citizen pays even less than 40 dollars," he said.

"As for pre-paid cards, which make up 75 percent of subscribers, the minute is about 44 cents, which is enormous."

Regular subscribers in Lebanon, which has a population of four million, also face high bills.

"Before even speaking, they pay about 41 dollars for the subscription, VAT and options," Zuheir Berro, president of the Lebanon Consumers' Association, said.

"In addition, they have to pay the communication (14 cents per minute) and a state tax (six cents per minute)," he said.

The decision to sell the mobile network is part of plans to introduce reforms agreed by the government in order to obtain much-needed financial assistance pledged by donors at a Paris conference in January.

Lebanon secured pledges of 7.6 billion dollars in grants and loans to help alleviate the country's economic woes, particularly after last year's devastating war between Israel and Hezbollah.

The government expects to benefit from the privatization process at least in the medium term.

"With privatization, we expect in the medium term a rise of at least one to 1.5 percent in economic growth every year, a decrease in the service of the debt and a rise in the volume of the value-added-tax," Shehadi said.

Lebanon's public debt has spiraled to 40.5 billion dollars since the end of the country's 1975-1990 civil war.

Shehadi said the government was eager to benefit from the potential growth of the privatized mobile phone industry, saying the move would help raise the penetration rate of mobile phone lines in Lebanon from 30 percent currently to at least 80 percent.

And Lebanon also plans to sell part of its landline network which now has just 550,000 subscribers.

"At the end of 2008, the state will sell 40 percent of its shares to a (private) operator as a first step for Liban Telecom," a private firm which will be eventually created to run the sector, Shehadi said.

AmeriLEB

November 2nd, 2007, 05:40 AM

This is great i hope the new goverment honors this and presses ahead..witht he new budget..The Valuation is under debate..3-5 years ago they were shooting for 5 billion..with less then half of the revenues and 800k subcribers (now over 1 mil)...at the time the minister said they should be able to get 8.5 bill with securitization of the future revenues..

It is important to note that they're very big banks and organizations who advised the goverments on the sale and valuations. I think the promise is in future potential...with only a 19 or 20 percent penetration...The networks can easily reach 40% in a few years. Given that 1/3 of the shares will be floated and sold on the stock exchage (a great move to activate and deepen the bourse) I think the IPO will be sucessfull. And if we go with the 7 billion figure, 2.3 bil will be on the bourse (equal to solidere) and the license's to be sold for about 4.7 total.

On the medium to longterm the goverment will benifit alot more..it is possible that the goverments revenue will equal todays ..given a higher penetration and taxation. In addition these are 20 year licenses..and by that time(when we are all old) the licenses will be sold again for a much higher amount with all the investments etc.

AmeriLEB

November 3rd, 2007, 12:27 AM

Beirut prepares for long-awaited sale of cellular networks
Privatization chief vows fair process
By Michael Bluhm
Daily Star staff
Saturday, November 03, 2007

BEIRUT: Lebanon should privatize its two mobile-phone networks next February 21 through a public auction of the licenses, according to a plan announced Friday by the Higher Council for Privatization and the Telecommunications Regulatory Authority. The long-planned privatization would fundamentally change the nation's fiscal calculus, as about a third of the state's income depends on telecommunications revenues derived from some of the world's highest mobile-phone rates. On the spending side of the deficit-laden ledger, servicing the crippling public debt has devoured 41 percent of expenses this year, while the state-owned Electricte du Liban drains about $3 million per day from the public till.

The architects of the network sell-off tout the expected windfall as a way to pay down the nearly $41 billion public debt and thus shrink the debt-service bill in future years, but the privatization scheme has provoked loud objections from the March 8 opposition. The Hizbullah-led opposition has charged that the terms of the tender have been tailored to favor potential bidders close to the government of Prime Minister Fouad Siniora.

Ziad Hayek, head of the Higher Privatization Council, dismissed the opposition's arguments at the launch of the tender process, saying the auction structure would make the privatization thoroughly transparent.

The privatization project allows interested parties to submit two bids by February 1, 2008, one bid for an arrangement where the license-holder shares 10 percent of revenues with the state, while a second bid category will not require any sharing of income. Allowing two types of bids will increase the transparency of the tender, by making clear how potential operators value the licenses under various conditions, Hayek said.

"It's part of transparency, so that the Lebanese public can see what the potential revenues are for the country," Hayek told The Daily Star, adding that some other countries in the region use a revenue-sharing system for their privatized networks. In the end, the government should choose the alternative that allows maximum reduction of public debt over time, he said.

On February 21, the Cabinet will see the amounts of the bids for the two revenue-sharing options - without seeing the names of the bidders - and will select one revenue-sharing format.
http://www.dailystar.com.lb

An auction - open to the public - will follow, using the highest bid as an opening price. Any parties who submitted qualifying bids can participate in the ensuing auction, with the sale price rising by minimum increments of $25 million in each round of bidding.

Each winner will receive 67 percent of the shares in the entity that holds the license, while the state will sell off the remaining 33 percent of the equity in an initial public offering (IPO) within a year of the auction. The IPO aims to inject some life into the dormant Beirut Stock Exchange and develop a capital market that could offer real financing possibilities for Lebanon's somnambulant economy, Hayek said.

Lebanon's monopoly fixed-line operator OGERO will also receive a third license to operate a mobile network, and if OGERO does not promptly set up another competing service, the Telecommunications Regulatory Authority (TRA) will not hesitate to auction off the third license as well, said TRA head Kamal Shehadi.

Firms interested in bidding for the first two licenses will get access next Tuesday to all documentation regarding the network through an online data room. The networks count some 1.1 million subscribers, giving Lebanon one of the lowest penetration rates in the Mideast with less than 30 percent of the population owning a mobile phone.

Shehadi said the dismal rate showed the enormous potential for growth in the industry, adding that he knew of interest in the licenses among operators from the US, Europe and East Asia.

"This is a vibrant telecommunications market. This auction is going to be a transparent, very competitive auction," Shehadi said.

To prove the value of expanding the cellular networks, Hayek cited data which showed that for each additional increase of 10 percent in the mobile-penetration rate, a country's GDP would grow by 1 percent. Having an experienced private operator lower Lebanon's exorbitant calling rates would permit the penetration rate to bloom, he said.

"It's all about the cost of communications," Hayek said. "First and foremost, this is an opportunity for us to improve the quality of service and lower costs."

AmeriLEB

November 3rd, 2007, 12:28 AM

US molds changes to Lebanon's copyright laws
By Osama Habib
Daily Star staff
Saturday, November 03, 2007

BEIRUT: The United States helped the Lebanese government amend some clauses in its existing copyright laws to allow the country join the World Trade Organization, a US government legal adviser said on Friday. "The US government is helping Lebanon with the modified copyrights law and we hope that the law comes out correctly and is properly enforced by the authorities," Robert Stoll, dean of education and training at the US Patent and Trademark Office, told The Daily Star.

He declined to give more details but said that the government is working on the trademark laws and pharmaceuticals.

A source, who spoke on condition of anonymity, said the amendments have been completed and the improved draft law was sent to the cabinet for approval. "This amendment aims to help Lebanon access the WTO in the future. It is only natural for the US to protect the interest of American companies," the source said.

Lebanon has made some progress in combating software piracy and counterfeiting of original trademarks but the country is still seen as a haven for copyright violators.

Desperate to join the WTO, the Ministry of Economy and Trade had sought the advice of Washington and consultant group Booze Allan Hamilton. Lebanon was supposed to join the WTO in 2006 or 2007 but the tense political climate and occasional security incidents have dealt a blow to these efforts.

Stoll, who took part in a one-day seminar on intellectual property rights at the convention center in Dbayyeh, saw a good chance for Lebanon to join the WTO if the copyright laws were enforced
http://www.dailystar.com.lb

"I think if [Lebanon] are better with their enforcement decisions then it can join the WTO," he said.

He called for more public awareness in Lebanon to make people understand the negative effects of piracy.

"The US government is putting programs not only for other countries but also for the United States," Stoll said.

He stressed that although the US is better than other countries, "we still have some problems in intellectual property violations."

Stoll said that awareness should start with children. Citing some examples, he said that Singapore has a very comprehensive training program that even includes elementary schools.

He added that Hong Kong, which was once renowned as one of the largest copyright violators, has made good progress in combating intellectual property infringement thanks to its own awareness campaign.

The speakers at the one-day seminar said that laws on pharmaceuticals, for example, are very crucial because they help protect the health of consumers who may otherwise buy counterfeited medications.

The seminar was attended by representatives of companies and exclusive dealers whose interests are affected by the copyright violations.

AmeriLEB

November 5th, 2007, 06:28 AM

Political paralysis helps keep Lebanon's power sector without mandated regulator
By Hani M. Bathish
Daily Star staff
Monday, November 05, 2007

BEIRUT: The failure to set up the National Electricity Regulatory Authority (NERA) prevents investors from pumping money into power production in Lebanon to meet growing consumer demand and reduce rationing which has forced many consumers to rely on private generators, a senior official at Electricite du Liban (EDL) says.

With world oil prices at or near all-time highs and Lebanon remaining reliant on aging fossil fuel-based power-generation facilities, many parts of the country have no power for many hours every day, and those who subscribe to private generators often pay a heavy price.

The obstacles to establishing NERA are "purely political," the EDL official told The Daily Star on condition of anonymity.

"Law 462, issued in September 2002, calls for the restructuring of EDL and stipulates the establishment of NERA as the body to oversee the sector, and issue permits and licenses to independent power producers," said the official.

He added that a properly functioning NERA would safeguard the interests of all stakeholder, the government and the consumer included, but would open the market up for private power producers.

The official said that before the 2006 war with Israel the government started interviewing candidates to serve on NERA's five-member board, but everything ground to a halt with the outbreak of hostilities, and since then the establishment of the regulatory authority has not been a top priority, especially since the appointments also require political consensus that looks unachievable right now.

MP Mohammad Qabbani, who heads Parliament's Public Works, Transport, Energy and Water Committee, addressed a news conference last week and stressed that Law 462 is a national policy for the electricity sector, adding that it offers a "road map to accomplish the required reform and rescue of the sector."

Qabbani said that the establishment of NERA is the most important step for any future rescue plans for the national electricity sector.
http://www.dailystar.com.lb

"It's regrettable that this regulatory authority has not seen the light of day after five years," he said. "Any rehabilitation of the sector outside the electricity sector law or without establishing a regulatory authority is wrong. We stress the formation of this authority without delay."

A paper written by Shafik Abi Said, former director of research at EDL, also outlines the urgent need for a state regulatory authority to be established.

"Some focus on reform, reducing waste and thefts, others call for privatization ... Still others focus on the provision of natural and liquefied gas for energy production ... while some call for amending tariffs, and developing renewable energy resources," Abi Said wrote. "While all these points are valid, the main problem lies in the absence of a reference point and coordinating body."

Abi Said points to Article 7 of Law 462, which empowers NERA to organize and oversee the sector with financial and operational independence. Article 8 of the same law stipulates that the authority be composed of five board members appointed by Cabinet for a period of five years.

"To date the Cabinet has not taken any steps to establish the regulatory authority," Abi Said wrote in his paper.

Instead, he added, Parliament amended Article 7 in November 2006, allowing the issuance of permits for private power production "temporarily and for one year only." The amendment is to be suspended once the regulatory authority is established.

"No matter what the difficulties being faced in choosing the sects and loyalties of the five [board] members of the regulatory authority, it is nonetheless the basic and essential first step," he argued, pointing out that the establishment of the Telecommunications Regulatory Authority had been implemented.

Abi Said said that setting up an authority for the electricity sector is even more pressing as the industry is more costly and complicated, making the need for a solution more urgent.

AmeriLEB

November 6th, 2007, 07:54 PM

Credit Libanais launches its operations in Bahrain
Posted: 29-10-2007 , 15:01 GMT

Credit Libanais sal, one of the leading banks in Lebanon established since 1961, has officially launched its operations in the Kingdom of Bahrain on October 28, 2007. Credit Libanais in Bahrain, which will serve all GCC customers, joins the Bank's network of 58 branches in Lebanon, a full-fledged branch in Limassol, Cyprus and a representative office in Montreal, Canada.

The Bank, which is a global provider of specialized financial services, offers its customers, through its activities and those of its numerous subsidiaries, a wide array of services, including retail, corporate, investment and Islamic banking, leasing, micro-finance, as well as Small and Medium Enterprises (SMEs) funding. The Bank is a pioneer in e-banking services, operating a wide network of ATMs and POS, an advanced Call Centre and internet banking services that allow customers easily and securely access the Bank, wherever they may be in the global village.

Credit Libanais also furnishes quality standards in capital markets and private banking products and instruments, traded on both domestic and international markets. The Bank is an active participant in the co-management of all sovereign Eurobonds issues and is considered a major market maker on the Lebanese fixed income securities market.

The Bank develops and maintains strategic cooperative partnerships with numerous international bodies, such as the Arab Trade Financing Program (ATFP), the Inter Arab Investment Guarantee Corporation (IAIGC), the Islamic Corporation for the Insurance of Investments and Export Credit (ICIIEC), the European Investment Bank (EIB), the Export Development Corporation (EDC), the Saudi Development Program (SDP), and the International Finance Corporation (IFC).

The Opening Ceremony: The launching took place at the Ritz Carlton Hotel, and was hosted by the Bank’s Chairman and General Manager, Dr. Joseph Torbey, who warmly welcomed all the distinguished attendees, and thanked the Kingdom of Bahrain’s government for their support in facilitating the establishment of the Bank. The Chairman noted that "we are very proud to be the first Lebanese bank to open in Bahrain". He elaborated on the soundness and strength of the Lebanese banking sector, the resolute perseverance and diligence of Credit Libanais' teams of management and staff, which are key factors the Bank capitalizes on, in its expansion strategy.

Why Bahrain? Bahrain was chosen for being a financial hub in the Gulf region, and for its economic liberalization and diversification, tax facilities put at the disposal of investors, added to an encouraging legislative environment. Moreover, Dr. Torbey highlighted that the support of Credit Libanais' shareholders, coupled with the dynamism of the Bank's team, immensely facilitated this accomplishment.

The Opening ceremony was attended by several of the Kingdom’s Ministers; Ambassadors; representatives from the Central Bank of Bahrain (CBB); and a number of prominent Bahraini, Lebanese, and regional VIPs and business professionals. The Bank’s Board of Directors and other officials were also present at the ceremony.

Mr. Gabriel Basbous, Country Manager - Credit Libanais, expressed his eagerness to put his expertise and know-how, as well as that of CL staff and management, at the disposal of Lebanese, Bahraini, Arab and non-Arab customers living and working in Bahrain.

Mr. Basbous also highlighted that “the financial performance of Credit Libanais Group clearly reflects the success of the Bank's strategy to maintain sustainable growth rates. Such performance strengthens the Bank's status, and confirms the soundness of the Bank's expansion strategies, both regionally and internationally.”

© 2007 Mena Report (www.menareport.com)

Hassoun

November 10th, 2007, 05:12 AM

Beirut Stock Exchange shows signs of revival
Solidere, Blom see rise in shares

Osama Habib
Daily Star staff
Saturday, November 10, 2007

BEIRUT: Is the Beirut Stock Exchange (BSE) waking up from its long dormant sleep? The answer is apparently yes as the prices of BLOM and Solidere shares continued to rise phenomenally this week despite the political standoff in the country. BLOM's stock index on the Beiruti exchange rose to 1,405,95 points on Friday.

On Friday, Solidere A and B shares closed at $19.50 and $19.38 respectively, or an increase of 1.35 and 1.25 percent.

Over $4.5 million of Solidere A and B shares exchanged hands on Friday.

This is the first time in years the prices of the giant real estate firm have reached this level, indicating that investors seem confident that the presidential election will be held on time despite the rabble-rousing remarks by some politicians.

Solidere recorded a net income of $132.2 million in 2006, an increase of 22 percent compared to 2005. The company reported considerable sales and rents in 2007 despite the Nahr al-Bared conflict.

But the 10-month old sit in by the opposition in Downtown Beirut have caused the business activity of this once thriving area to come to a halt. This naturally prompted some investors to freeze the projects planned for the district.

But nevertheless, Lebanese and Gulf investors are buying large quantities of Solidere shares, hoping that the downtown will draw large funds from oil-rich countries.

BLOM's global depositary receipts (GDR) have continued to show interest as the prices on Friday closed at $93.30, an increase of 3.72 percent.

More than $2.4 million of BLOM GDRs exchanged hands on Friday.

"Prices are moving on pure speculation," one banker said, adding that some investors believe that the situation in Lebanon will be back to normal.

He added that the profits of the banks in the 3rd quarter of this year were another reason for the surge in the prices.

BLOM Bank announced consolidated net profits of $147.6 million in the first nine months of 2007, up by 11.4 percent from $132.4 million in the first nine months of 2006.

Net interest income increased by 18.4 percent to $232 million, while net commission earnings rose by 36.6 percent to $46.5 million. Net profits on financial operations decreased by 68.1 percent to $ 6.2 million.

Total assets reached $15.9 billion at end-September 2007, up by 21.1 percent from $13.2 billion at end-September 2006.

Customer deposits increased by 20.3 percent to reach $13.3 billion at the end of September 2007, and the ratio of total loans to deposits was 19.1 percent at September's end. Also, the bank's shareholders' equity reached $1.3 billion at end-September 2007, up by eight percent from $1.2 billion a year earlier.

BLOM was subject to takeover-offer rumors in the past two weeks which helped its shares jump by nearly 10 percent in one day trading.

BLOM admitted that it received some offers to buy the majority of shares but stressed that the bank is not for sale.

"All in all, it has been a good week for the stock market driven by fundamentals and political speculations. This week's BSE activity concentrated on Solidere shares which witnessed a considerable amount of trading to the speculative mood of investors predicting a favorable outcome for the presidential election," BLOM said in its weekly market report.

Apart from Solidere and BLOM, the shares of Audi bank and Byblos showed some gains during Friday's trading.

þopsï

November 10th, 2007, 07:48 PM

and the best is yet to come .

AmeriLEB

November 13th, 2007, 05:51 PM

Connecting Lebanon
Zahra Hankir, NOW Staff , November 13, 2007

In a fiery speech last weekend, Hezbollah leader Sayyed Hassan Nasrallah stated that "the biggest looting operation in the history of Lebanon is [currently] taking place." He cited the privatization of Lebanon’s mobile telecommunications sector as an example.

Earlier this month, the Higher Council for Privatization (HCP) and the Telecommunications Regulatory Authority (TRA) announced the beginning of the move toward the privatization of Lebanon’s mobile networks. It was announced that the long-awaited bidding process itself will take place in a public session on February 21, 2008, and will consist of a series of rounds in which bidders must make offers in multiples of $5 million. The two winning companies will receive a license that grants them 20 years to own, operate and expand the existing mobile networks in Lebanon.

This move put into motion a process that will, according to TRA chairman Dr. Kamal Shehade and HCP Secretary-General Ziad Hayek, have positive effects on Lebanon’s struggling economy, given that a large portion of the accrued funds will be transferred to the Lebanese government and subsequently used to pay off the country’s mounting $41 billion debt. The move will also spur much-needed reforms within the telecommunications sector.

“This is the beginning of a transformation,” Shehadi told NOW Lebanon in an exclusive interview.

The privatization process

According to Hayek, the transaction is designed to optimize proceeds to the Lebanese government, and as such, “reduce the public debt… Even a partial reduction can have a positive impact on Lebanon’s cost of debt in the first instance.” But beyond that, Hayek noted that privatization would also create new jobs, with auxiliary businesses likely to spring up around the privatized mobile-communication companies.

Moreover, the change will have a positive impact on financial markets in Lebanon, mostly because 100% of each company will float on the Beirut Stock Exchange, while one-third of the shares will be owned by the government, which will be sold off to the Lebanese public within 12 months. Hayek noted that today the stock exchange has only one prominent stock – real-estate company Solidere – and that because telecom companies have much more active trading patterns than real-estate companies, “by increasing the volume of trading on Beirut’s stock exchange, we can encourage Lebanese companies, which today are family-owned and in need of capital, to enlist on the Beirut stock exchange so they can raise the additional capital.”

The move will also lower mobile call rates and significantly improve the current poor service quality. Lebanon has astronomical mobile phone rates, and the cellular phone network is currently fully owned by the MoT and operated by MTC and Alfa. As such, the MoT has a monopoly over the market. Following the privatization process, Ogero staff, along with the Ministry of Telecom’s assets, will be transferred to Liban Telecom, a corporatized state-owned entity which will also operate as a mobile-phone operator. If this is not done in six months, the TRA would have to right to issue a third license to another company.

The privatization of the mobile network will be implemented and overseen through a joint effort by the HCP and the TRA, and the outlined procedures are accessible online. According to a memorandum of understanding between the TRA and the HCP, the transfer of mobile assets is specifically designed to avoid arbitrary decision making.

Nonetheless, the move has been criticized by the opposition, which claims that the process was designed to ensure that bidding companies will be close to the Siniora government. The criticism could stem from the fact that Saudi Oger, privately owned and directed by the Hariri family, is expected to step in and make a bid, with plans to increase its market shares in the telecommunication sector through Oger telecom. But Hayek noted that both the HCP and the TRA have been fully transparent about the process and are confident that it will be fair. In addition, the minimum requirements for any company to enter the bidding are very low.

When asked whether the process is designed in a way that will give the government of Lebanon unfair market power since one-third of each company will still be owned by the government, and an additional company will be fully owned by the government, Hayek replied that “it is not an ideal situation, but this is meant to be temporary until the government is able to IPO [initial public offerings] its shares in the two companies. We intend to do this as quickly as possible and start working on the IPO from the time that the new companies are formed.” The TRA also has the power to penalize the companies for unfair competition.

The TRA and HCP’s jobs have been rendered far more difficult by parliament’s failure to convene in the past year. Hayek concluded that although he is hopeful, “if it weren’t for the current political situation, we would be launching this in a much better environment than we are today.”

Indeed, it is imperative that the mobile auction be launched as soon as possible and without further obstruction, as the management contracts for MTC and Alfa are set to expire soon, after which much of the progress on privatization since Paris III would then be lost.

Limited connectivity

Even though the Lebanese population makes up of one-third of the region’s internet users, the internet’s infrastructure is riddled with problems. According to the MoT website, the internet sector “is liberalized in Lebanon,” mainly because licensing is open, meaning that anyone can become an ISP (Internet Service Provider). Nonetheless, the MoT has a monopoly over the international and national fixed gateway as well, through Ogero. In practice, Ogero and the MoT have shown bias against the private-sector ISPs and DSPs (Date Service Providers), according to Shehadi.

Shehadi explained that this is why the internet is not fully liberalized, and despite some limited competition in the market, it is still not fully competitive. Additionally, though there are several wireless-only DSPs, they are restricted in terms of the services they can offer.

DSL (Digital Subscriber Line) services were first launched in January of last year, while high-speed ADSL (Asymmetric Digital Subscriber Line) internet arrived in Lebanon in May 2007, making it the last country in the Arab world to adopt the technology. The introduction of ADSL internet in Lebanon, however, has been fraught with problems. Despite its implementation, ADSL penetration has been minimal. Ogero has a monopoly on DSP service and an unfair market advantage on ISP service. There are no separate data operators representing the ministry.

Shehadi noted that “the ADSL market is a living example of an incumbent using and misusing its control over essential facilities and using its control over pricing and access to certain services to acquire a dominant position in the service without making a commercial effort.”

The MoT has a monopoly on the country's fixed voice/data infrastructure and on international backbone access. Satellite backbone access is restricted only to downloading, while uploading has to go through the MoT due to concerns over VoIP (Voice over IP services, such as Skype). VoIP is currently banned in Lebanon, out of fear of the potential loss of revenue from telephone usage.

In addition, the MoT lacks transparency when it comes to launching services and does not engage with the private sector “on a fair competitive basis,” Shehadi said. Its efforts are considered to be the abuse of market power rather than an initiative aimed at increasing commercial strategy. Currently, one of the TRA’s most significant goals is to license providers to offer international connectivity, consequently solving the problem of bandwidth.

Joining the knowledge economy

The privatization of the mobile telecom industry, though essential, should be considered the beginning of a process that will reform the entire telecommunications sector. Given that economies are generally boosted by the installation of high-speed internet, there is a pressing need for Lebanon to enter the “knowledge economy” by further improving the telecommunications sector and opening it up to competition.

With this goal in mind, it is high time that the MoT recognize the need to develop the sector and to put an end to Ogero’s monopoly. Access to fast and reliable internet is crucial to attracting foreign investment to Lebanon and for the fluid operation of businesses already located here. Shehadi acknowledged that Lebanon’s lack of adequate broadband connectivity has rendered the country “unattractive” to potential investors.

Lebanon’s hope here lies with the TRA. It is clear that the TRA’s operation has had positive effects on the telecommunications sector in general, given its ability to place pressure on the MoT and to push for reform. However, the onus remains on the MoT to collaborate efficiently with the TRA to ensure further progress.

It may be time for the ministry to reassess priorities, if Lebanon is to have any hope of entering the 21st century some time before the 22nd rolls around.

Rubisco

November 14th, 2007, 05:13 AM

why is this buffoon insisting the lebanese be kept in their internet dark ages (with their 56k dial-up and archaic prohibitely expensive cell phone services)?

is anybody doubting now that he's working in the complete opposite of the interest of the lebanese people and state...?

AmeriLEB

November 14th, 2007, 07:11 PM

Hes not hes saying the opposite..he is describing the situation now..and the hopes of what privitization will do to it to improve

LeB-iT

November 15th, 2007, 04:34 PM

^^i think he meant nasralla

john2890

November 15th, 2007, 08:09 PM

...all nasrallah said was that the phone companies are ripping the lebanese people off. no?

nonetheless, its frustrating seeing him pretend to be good and for-the-people's interest and what not. all this propaganda. :(

AmeriLEB

November 15th, 2007, 08:42 PM

He wants an islamic non democratic state...its in the doctrine of HZ...Anything that can show the goverment is trying to improve the situation, pay off the debt, or create jobs they fight because they will loose the ability to trap people into supporting them. So many people are beneficiaries to the hospitals and social services they provide and must show allegiance for it to continue...

AmeriLEB

December 8th, 2007, 09:06 PM

Ace Hardware to open 6 stores in Lebanon

Ace Hardware is planning to open 6 stores in Lebanon in the next decade. The US-based hardware cooperative said that its first store is under construction and will be inaugurated soon. Ace offers established brand awareness with top most
recognizable brands in the world.

Hassoun

December 13th, 2007, 11:07 PM

Lebanon 6th in region for ease of paying taxes

By The Daily Star

Thursday, December 13, 2007

BEIRUT: The World Bank and PricewaterhouseCoopers ranked Lebanon 33rd globally and sixth regionally in terms of ease in paying taxes.

In a report entitled "Paying Taxes 2008," Lebanon came ahead of Iraq, which ranked 37th worldwide, Sudan (60th) and Israel (69th), and directly after the West Bank and Gaza (22nd), Jordan (19th) and Kuwait (eighth). The UAE ranked first regionally, with a global rank of fourth, while Oman came second regionally and fifth worldwide.

The report provides data which helps governments and businesses to focus on the need to ensure that tax systems implement effective tools for collection and that those tools are efficient for conducting business.

In individual categories, Lebanon ranked 46th globally and sixth regionally in the indicator of total tax payments. When it came to the total tax rate, Lebanon came in 49th and ninth regionally. As for the indicator to time to comply with the tax affairs, Lebanon ranked 60th worldwide and eighth in the region. - The Daily Star

Halawala

December 14th, 2007, 01:09 AM

We dont have taxes, so I guess were not on the list?

Hassoun

December 25th, 2007, 03:34 AM

UAE's Etisalat may bid for a Lebanon cell phone company
Monday, 24 December, 2007 @ 10:58 PM

http://yalibnan.com/site/archives/2007/12/24/etisalat%20logo.gif

Beirut / Dubai - Emirates Telecommunications Corp (Etisalat) said on Monday it was considering a bid to take over one of two Lebanese mobile phone firms that the government has said it wants to sell for as much as $7 billion.

Etisalat, the second-largest publicly traded Arab telecom firm, would decide on whether to compete for Alfa or MTC Touch by the end of next month, Jamal al-Jarwan, chief executive of Etisalat International Investments, said.

"We will decide by the end of January whether to bid, after completing our study of the market and valuations of the companies," Jarwan told Reuters.

"Right now, we are studying the market, looking at what the business drivers are and what the growth prospects are," he said.

Lebanon expects to sell majority stakes in two state mobile phone firms in February and offer the rest to the public to raise as much as $7 billion, the country's telecommunications minister said in October.

http://yalibnan.com/site/archives/2007/10/29/marwan%20hemadeh.jpg

The country planned to use the funds to service huge public debts of about $41 billion, or 180 percent of gross domestic product, Marwan Hamadeh ( pictured) said at the time.

Lebanon's population of about 4 million pay among the most expensive mobile phone charges in the Middle East, with average revenue per user of above $50 a month, Jarwan said.

Mobile phone penetration in the country was about 28 percent, Hamadeh said in October.

"It is always appealing to buy existing assets which have a subscriber base," Jarwan said.

Etisalat, which has operations in 16 countries including Egypt, Saudi Arabia and Pakistan, has been expanding outside of its home market, where mobile phone penetration exceeds 150 percent.

It lost a telecom monopoly in the UAE this year after DUDU started a mobile phone network in February.

The state-controlled firm said this month it would buy 16 percent of PT Excelcomindo Pratama Tbk EXCL.JK for $438 million to enter Indonesia, the world's fourth most populous country.

In the last month, it has lost bids to enter mobile phone markets in Kuwait and Qatar after its bids came in too low. Etisalat led a group in 2006 that paid 16.7 billion pounds ($3.1 billion) for Egypt's third mobile phone license.

"We will not be value destructive. We will only bid what we believe the asset is worth," Jarwan said.

Any telecom bids would have to get final approval from the country's new president, the telecommunications minister has said.

The Western-backed government and pro-Syrian opposition have agreed on army chief General Michel Suleiman as president, but the opposition wants guarantees it will have veto power in a future coalition.

Lebanon's Western-backed ruling coalition and the pro-Syria Hezbollah-led opposition have been locked in a dispute over sharing power, virtually paralyzing the country.

Sources: Reuters

Hassoun

December 27th, 2007, 03:36 PM

Qatar too will bid for Lebanon cell phone company
Wednesday, 26 December, 2007 @ 4:42 PM

Beirut / Doha - Qatar Telecommunications Co (Qtel) said on Wednesday it would bid for a stake in one of two Lebanese mobile phone firms as part of the former monopoly operator's plans to expand in the Middle East and Asia.

Lebanon expects to sell majority stakes in Alfa and MTC Touch in February and offer the rest to the public to raise as much as $7 billion, the country's telecommunications minister said in October.

"We will bid," said Adel al-Mutawa, Qtel's executive director for group communications. When asked which company Qtel would bid for, Mutawa said, "We are still evaluating."

"We're looking at any opportunities for expansion in MENA and Asia and Lebanon is going to be the first potential market in the region," he said, declining to give more details.

Emirates Telecommunications Corp ETEL.AD (Etisalat) had said on Monday it was also considering a bid to take over one of the firms.
Lebanon wants to use the funds to pay off huge public debts of about $41 billion, or 180 percent of gross domestic product, telecommunications minister Marwan Hamadeh said in October.

Any winning bid would have to get final approval from the country's president, he has said.

Lebanon's Western-backed ruling coalition and the pro-Syrian Hezbollah-led opposition have been locked in a power-sharing dispute, virtually paralyzing the country.

"Political stability has a very important role in the (bidding) process," Mutawa said.

ACQUISITION PLANS

Qtel Chief Executive Nasser Marafih told Reuters this month the firm planned more acquisitions after its $3.72 billion purchase of Kuwaiti operator National Mobile Telecommunications Co (Wataniya) in March.

It was mulling sales of shares in Qatar, depositary receipts in London or bonds as funding options, he said.

The firm, which operates in 16 markets, lost its telecom monopoly this month after the oil and gas producer awarded a group led by Britain's Vodafone Group a second mobile phone license.

Shares of Qtel, which makes 76 percent of its profit in Qatar, fell 1.05 percent on Wednesday.

Sources: Reuters,

AmeriLEB

December 27th, 2007, 07:11 PM

December 2007

Liberalization efforts under way for mobile network licenses

At last, the liberalization of the Lebanese Telecommunications sector is under way. The two existing mobile licenses will be privatized and a third state-owned, fixed-line operator, Liban Telecom, is to be established in mid-2008 with a view to privatizing it in the future. Requests for applications to run the licenses were released on November 2 with the final auctions planned to take place on February 21, 2008.

The process has only been possible after the long awaited introduction of a Telecommunications Regulatory Authority (TRA). To date the restructuring process had been slow, with legislation authorizing the above measures issued in 2002, while the TRA was only set up five years later in February 2007.

Political risk and difficulties

Even with a timetable in place and investors showing interest, all plans are nonetheless dependent on Lebanon's precarious political situation. The outcome of presidential elections in December hold the key to Lebanon's short-term stability and will be pivotal to any prospective investors' decisions. The TRA concedes this is part of the reason the period during which applications for the mobile licenses will be accepted extends to February 2008, so as to give both the new government and prospective bidders time to assess the situation.

As Kamal Shehadi, chairman and CEO of the TRA explained "if we don't have presidential elections on time and a new national unity government, then there won't be any bidders. However, I believe they will be on time and everything will go according to plan." He is perhaps more optimistic than most.

However, the difficulties don't stop there, since opposition groups have voiced concerns about privatization of national assets. They argue that the sales cannot go ahead without the approval of parliament, which parliamentary speaker, Nabih Berri, refuses to convene given the political standoff between government and opposition parties that has left parliament all but defunct since December 2006.

For its part, the government sought legal council and on this advice believes it is entitled to proceed with the sales under the authority given to it by Telecommunications Law 431 and insists they will go ahead. All the same, Sayyed Hassan Nasrallah, leader of Hizbullah, which heads the opposition bloc, warned in a speech in November that if necessary they will take legal steps to halt proceedings if the measures have not been passed through parliament.

Counterbalancing internal opposition and political risk is an element of international obligation since continued telecommunications privatization was agreed as part of a broader set of conditions to the Paris III donor's conference, which was convened after the 2006 war and raised nearly $8 billion.

To complicate matters further, the original operators, who won 10-year BOT contractors in 1994, Cellis and Libancell, both ended in serious financial disputes with the state, resulting in the non-continuation of their contracts and an arbitration process that only came to an end in 2006. However, the changed structure and introduction of an independent TRA will mitigate the risk of such occurrences in the future.

Complete overhaul

Provided it goes ahead the restructuring will lead to a complete overhaul of the Telecoms sector. Until now the state has owned the two existing mobile networks outright, only contracting out the management of the networks. As such, it has been the government that set tariffs, essentially operating a lucrative duopoly as a cash cow for the Lebanese treasury. As Shehadi put it, "our local and international tariffs are among the highest in the world, if not the highest."

Together, the fixed-line and mobile networks have contributed as much as 38% of government income. Under the new regime, licenses will be granted on a 20-year basis for the right to own and operate the networks, giving the operators complete freedom to set tariffs in a competitive environment which should see prices decrease substantially, with some experts predicting at least 30% decreases in the long run.

The networks are currently run on four-year management contracts with revenue taken by the government and fees of some $4 million per month earned by each of the two managers, MTC Touch, owned by Kuwait's Zain Corporation (formerly Mobile Telecommunications Company) and Alfa, a joint venture between Deutsche Telekom and Saudi Arabia's Fal Holdings.

Money in the coffers

As well as the intention to improve telecommunication services, part of the motivation behind privatization is to lower the national debt. The government hopes to raise as much as $5-6 billion through the sale of the mobile licenses, the proceedings from which will go towards reducing the nation's enormous $41 billion deficit.

Some critics have suggested the expected license prices are too high considering the investments needed to update mid-1990s infrastructure and the continuing risk of political instability. However, in November, respected investment bank Credit Suisse released a report in line with these figures, placing a value of between $2.4 billion and $3.4 billion on each of the licenses.

Likewise, the creation of Liban Telecom will put money in the government's coffers, as there will be an option to sell 40% of shares to a strategic partner within two years, with the possibility to sell more shares at a later date. Liban Telecom will essentially take over from Ogero, the current fixed network manager, and will retain the fixed line monopoly as well as be issued a third national mobile network license. In the long run, the TRA has confirmed its intention to introduce additional mobile licenses to further liberalize the market.

Growth potential and dynamics

In spite of the current general perception of investment risks in Lebanon, the telecommunications sector still has a strong potential for growth that will maintain investor interest. Already the Zain Group of Kuwait and Egyptian Orascom group have announced interest in th