Hassoun
May 14th, 2006, 02:35 AM
IDAL predicts foreign direct investment in Lebanon will exceed $2 billion
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BEIRUT: The head of the Investment Development Authority of Lebanon (IDAL) predicted that foreign direct investment will reach more than $2 billion by the end of the year. "The excessive liquidity in some of the Arab countries as a result of the oil boom has definitely allowed Lebanon to attract more investment this year," Nabil Itani told The Daily Star on the sidelines of the Arab Economic Forum taking place at the Phoenicia Inter-Continental Hotel in Beirut.
Itani said that IDAL finalized $510 million of direct investments in 2005, four times more than 2004.
"I am only talking about IDAL. I know for sure there were more investments through other channels," he added.
The giant real-estate company Solidere concluded more than $2 billion of real estate development projects in the first four months of the year.
Most of the projects in Lebanon involve real-estate and tourism.
The assassination of former Prime Minister Rafik Hariri, who was seen as the driving force behind the Lebanese economy, did not have a major impact on investments in the country.
"Arab investors have great confidence in Lebanon and in its investment climate," Itani said.
He added that the presence of a strong banking sector and friendly investment laws have all helped Lebanon to draw more investment.
Founded in 1994, IDAL's main objective is to cut the red tape facing potential investors and process their applications in record time. IDAL also offers tax incentives for investments that create jobs.
Itani said in the first three months of the year, Arab investors poured money into real-estate and tourism projects in Beirut and mountain areas.
He added that other projects involving agro-food industries have been signed this year.
"We are encouraging investors to give attention to industry and agriculture in areas outside Beirut and the big cities," Itani said.
He added that the cost of workforce and land in Lebanon is cheaper than other regional countries and this induces companies to invest in industries.
The $272 million Landmark project, compromising a shopping mall in Beirut Central District, will be the largest single project finalized by IDAL.
Five-star hotels and luxurious residential buildings mushroomed in Beirut in the past five years as many Gulf investors have moved assets to Lebanon and other Arab countries.
High demand for real estate has increased the value of many Beirut properties by 40 to 50 percent in a year, according to some real-estate brokers.
"If the political climate in Lebanon improves, investment will flow at amazing speed. I hope politicians will put their differences aside for the sake of the country," one real-estate broker attending the forum said.
------------------------------------------------------------------------
BEIRUT: The head of the Investment Development Authority of Lebanon (IDAL) predicted that foreign direct investment will reach more than $2 billion by the end of the year. "The excessive liquidity in some of the Arab countries as a result of the oil boom has definitely allowed Lebanon to attract more investment this year," Nabil Itani told The Daily Star on the sidelines of the Arab Economic Forum taking place at the Phoenicia Inter-Continental Hotel in Beirut.
Itani said that IDAL finalized $510 million of direct investments in 2005, four times more than 2004.
"I am only talking about IDAL. I know for sure there were more investments through other channels," he added.
The giant real-estate company Solidere concluded more than $2 billion of real estate development projects in the first four months of the year.
Most of the projects in Lebanon involve real-estate and tourism.
The assassination of former Prime Minister Rafik Hariri, who was seen as the driving force behind the Lebanese economy, did not have a major impact on investments in the country.
"Arab investors have great confidence in Lebanon and in its investment climate," Itani said.
He added that the presence of a strong banking sector and friendly investment laws have all helped Lebanon to draw more investment.
Founded in 1994, IDAL's main objective is to cut the red tape facing potential investors and process their applications in record time. IDAL also offers tax incentives for investments that create jobs.
Itani said in the first three months of the year, Arab investors poured money into real-estate and tourism projects in Beirut and mountain areas.
He added that other projects involving agro-food industries have been signed this year.
"We are encouraging investors to give attention to industry and agriculture in areas outside Beirut and the big cities," Itani said.
He added that the cost of workforce and land in Lebanon is cheaper than other regional countries and this induces companies to invest in industries.
The $272 million Landmark project, compromising a shopping mall in Beirut Central District, will be the largest single project finalized by IDAL.
Five-star hotels and luxurious residential buildings mushroomed in Beirut in the past five years as many Gulf investors have moved assets to Lebanon and other Arab countries.
High demand for real estate has increased the value of many Beirut properties by 40 to 50 percent in a year, according to some real-estate brokers.
"If the political climate in Lebanon improves, investment will flow at amazing speed. I hope politicians will put their differences aside for the sake of the country," one real-estate broker attending the forum said.