Health expenditure increased by 70 percent in 16 years. Significant shortage of nurses

Health expenditures increased by 70 percent in the last 16 years, according to the 'Lebanon Economic Report' published by the World Bank.

Health spending per capita rose from $361 in 1995 to $621 in 2011, which is higher than the MENA average of $220. As a share of the Gross Domestic Product (GDP), the country's health expenditures remain quite high despite falling from 10.7 percent in 1995 to 6.6 percent in 2011.

According to the Ministry of Public Health (MoPH), the health bill ...

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Wings of Lebanon expands operations. Plans new routes, more flights

Wings of Lebanon, a privately-owned charter flight company is planning to add destinations and operate a new passenger plane.

Youssef El Hajj, CEO, said: "We will launch routes to destinations not being served by Middle East Airlines (MEA). These include Stockholm, Vienna, Copenhagen, Prague, and Tehran."

This summer, the company began making year-round flights mainly to Turkey. "We used to fly only in the summer, because we are hired by travel agencies," he said. Nakhal was the o...

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Solidere shares 30 percent up. Good time to buy

Solidere gained $412.6 million in market capitalization since November 10, two days before the Parliament sessions that approved crucial financial laws.

There are some indicators of positive developments on the local political scene, said Marwan Mikhael Head of the Research Department at Blominvest Bank. Solidere stock is a 'political barometer' because it is very sensitive to political and security developments in the country, notwithstanding the company's performance, he said.

M...

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Central Bank sets rules for incubators and accelerators. Knowledge economy to account for five percent of GDP by 2030

Incubators and accelerators are allowed to invest only up to five percent in the capital of each startup company that benefits from their support, according to a circular by the Central Bank (BDL) issued recently.

"BDL is keen to determine the goal of each investor in startups," said Marwan Mikhael, Head of Research at Blominvest Bank. "Instead of having high shares in a target company and provide it with a priority, BDL considers that incubators and accelerators should be neutral and ser...

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Smart cards to foreign workers.

The Ministry of Labor has launched the smart card program for foreign workers to be activated in January 2016.

According to the Ministry, the issued smart cards will impose direct control on all foreign workers and increase transparency. It will help the ministry know all details about the location of the worker and the type of work they perform.

The smart card will include personal and security information, as well as data required about the foreign worker and the persons in charg...

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Two US companies bid for Zahrani, Beddawi plants. Results to be announced next week

Two US-based companies are vying for the operation and maintenance of the Zahrani and Beddawi power plants. The board of Electricité du Liban is expected to choose between the two within the coming few days.

The two companies are Primesouth and HPI. Primesouth is the preferred bidder according to the terms of reference, a source close to the tender said.

A third bidder, an Indian company, also participated in the tender, but was disqualified because it failed to meet the re...

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Wastewater projects receive a $100 million boost. Akkar, Chouf, Bekaa, and Arkoub are target areas

Parliament approved on November 13 a loan agreement with the Arab Fund for Economic and Social Development to complete miscellaneous wastewater projects.

The loan, valued at 30 million Kuwaiti Dinars (around $100 million), will be paid back over a period of 18 years, with a grace period of five years, with a yearly interest of three percent.

The loan will be used to develop a 108 kilometer-long wastewater network through 20 villages in Akkar. This includes 27 km of additional seco...

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Al Mayyas Hospital opened in Chtaura. AUBMC will provide the expertise

Al Mayyas Hospital, a general medical services center, opened in Chtaura Bekaa last week. The hospital will be managed by the IMESCO Company.

IMESCO acquired the Al Mays hospital from Al Mayyas family, which had stopped operating in 2007. Investments in rehabilitating the hospital reached $5 million.

The hospital comprises two blocks, including 120 beds. It has a total built-up area of 3,500 square meters.

Al Mayyas includes three new operating rooms, a laboratory, scanni...

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Rachid Karame Fair back on track. Tripolitan officials plan restoration, BOT-scheme projects

Tripoli's officials are planning to revive the one million square meter Rachid Karame International Fair. The private sector, represented by the Chamber of Commerce, Industry, and Agriculture in Tripoli and the North and the public sector, represented by the Municipality of Tripoli and the Order of Engineers, expressed commitment to restore and operate some of the fair's facilities.

Houssam Kobayter, Chairman of the fair, said: "We received an initial approval by the Chamber to restore an...

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High-income consumers willing to pay $7 per mobile. Market opportunities for Arabic apps

High-income earners are willing to pay more than $7 to purchase a mobile app, according to a study prepared by local ArabNet, in collaboration with On Device Research.

The report said that this represents an opportunity for app developers and publishers to create higher-value, high-priced apps to cater to this market segment.

The most common amount paid for in-app purchases is between $1 and $4.99. More than 40 percent of respondents said they make one-off in-app purchases to obta...

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Primary surplus in public budget. Debt to GDP is declining, but more reforms are needed

The banking sector has been a main support to finance the State's needs and reduce the burden of high public debt, according to the Ministry of Finance (MoF).

Banks have foreign currency reserves worth $65 billion, representing 93 percent of the total public debt. "These reserves exceed the State's debt in foreign currency by two times and a half," said Alain Bifani, Director General of the MoF. He said that banks are financing 88 percent of the State's debt.

The fiscal deficit ha...

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Hurdles lifted for products to Egypt.

Hurdles to access the Egyptian market will be removed within one month, according to a delegation of businesspeople that attended the Lebanese Egyptian Economic Forum in Cairo last week. Exports to Egypt were not halted completely but were facing difficulties to access the market. This is due to changes being made to country of origin certificates and unified standard specifications.

"This administrative procedure was an obstacle, but it is almost over," said Hicham al Moukammal, Chairma...

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Cooperation office in Oman by Chamber of Commerce. Interest in manufacture, agriculture, and tourism

The Chamber of Commerce, Industry, and Agriculture in Beirut and Mount Lebanon (CCIA-BML) plans to open an office for economic cooperation in the Sultanate of Oman. A similar office will also open at the CCIA-BML headquarters in Beirut for bilateral cooperation.

Chadi Massaad, Chairman of the Lebanese Omani Business Council, said that Said ben Saleh al-Kayyoumi, Chairman of the Omani Chamber, promised to raise the issue soon to the Council of Ministers for approval.

Mohammad Chouca...

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Lebanon tops Arab world in financial secrecy. It mixes secrecy with big tax exemptions

The Tax Justice Network (TJN) said it has ranked Lebanon first in the Arab world and seventh globally in the 2015 Financial Secrecy Index (FSI).

"Lebanon has sailed against the prevailing winds on global financial transparency and continues to make secrecy a core selling point," according to TJN, which describes itself as "a coalition of researchers and activists focused on the harmful impacts of tax avoidance, tax competition and tax havens."

Lebanon has a very high secrecy score,...

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Alpha banks still growing at a slower pace. Tough operating environment puts pressure on assets, loans and deposits

Alpha banks, the first 14 banks with deposits exceeding $2 billion each, have reported a slowing activity this year, according to the Alpha report issued by Bankdata Financial Services.

Consolidated assets grew by 2.6 percent over the first nine months, against 6.6 percent during the same period last year. Domestic assets grew by three percent, while foreign assets rose by 1.1 percent. Out of total activity, 80 percent was tied locally and 20 percent abroad, as of the end of September, th...

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Mecanique tender postponed.

The Department of Tenders has postponed a tender for the modernization, development, and operation of the vehicle inspection centers, or 'Mécanique', and the design, development, and equipping of new centers, until January 18, 2016.

Two interested bidders have raised an adjournment request, saying they needed more time to abide by the terms of reference. A memo released by the department said: "Out of concern for fairness, equal opportunity, fair competition, and to allow for a lar...

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Kababji opens in the UAE. A series of outlets will launch all over the GCC countries

Kababji's first branch was soft-opened in the UAE at the Dubai Marina, as a debut for several branches to be opened by Eathos, the company that received Kababji's regional franchise for the whole GCC area.

"It's only the beginning," said Eddy Massaad, General Manager. "The second branch will open at Al Ghurair Mall in Dubai at the end of February and the third will open at Maryah Island in Abu Dhabi, in mid-December." Massaad said that Kababji will open in KSA next.

The restaur...

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Bank account hacking on the rise. Lack of awareness is cited as the cause of most cases

The number of cybercrimes through online banking accounts has increased from one case in 2011 to 63 today, according to the Special Investigation Commission (SIC) of the Central Bank (BDL), which said that the stolen amounts range between $1,500 and $2 million.

"Cybercrimes are not individual cases, but rather happen through well connected criminal organizations or criminals aware of where to carry out their hacking," said Abdul Hafiz Mansour, Secretary of the SIC. "Lebanon is a free eco...

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Parliament ratifies loans and grants. $600 million to pour into infrastructure projects

Parliament approved today more than 20 bills related to several economic and financial sectors, according to MP Jean Ogassapian.

Around $600 million worth of loans and grants have been sanctioned. These include two loan agreements with the European Investment Bank (EIB) for funding highway projects and the construction of the Bisri Dam. Other laws include the ratification of loan agreements with the Arab Fund for Economic and Social Development (AFESD) for the completion of wastewater pla...

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Zero interest loans for eco-friendly plants. Three plants to start benefiting

An agreement was signed on November 6 between the Central Bank and the Ministry of Environment (MoE) to give low-interest loans to industrialists who will apply environmentally friendly standards.

The agreement is part of the World Bank-funded Lebanon Environmental Pollution Abatement Project (LEPAP). The project, which is valued at $18 million, gives companies incentives to reduce their carbon footprint. The loans have a near zero interest rate.

The ministry has so far accepted p...

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Country needs $6.2 billion in infrastructure. Public-private partnership highly recommended

Spending on infrastructure through Public Private Partnerships (PPP) would stimulate the Gross Domestic Product (GDP) in the medium and long terms, according to Ziad Hayek, the Secretary General of the Higher Council for Privatization.

He said: "Lebanon needs $6.2 billion in the sectors of power, water, transport, and services, through PPP."

Hayek, who was speaking at a workshop at the Basil Fleihan Institute, said that these investments would boost GDP growth by 4.4 percent. A sp...

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Opening of ‘The Village’ pubs and restaurants complex. Brings nightlife to Dbayeh

A complex of ten pubs and six restaurants will open this Thursday on Dbayeh's coasta, road, which is parallel to the highway.

Investment in the project is $4.5 million and occupies 4,200 square meters, with a built-up area of 1,200 m2.
Venture Group built and invested the complex's premises on a rented plot. The company is co-founded by Rabih Saba and Marwan Ayoub, developed Uruguay Street downtown, and the restaurant complex in Hazmieh.

"We always choose concepts that suit th...

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Araco-Guardia Systems wins airport works contract. Project includes surveillance systems, fences and walls

The joint venture between the two local firms, Araco Concrete and Guardia Systems, has won a public tender for the construction and restoration of fences and walls around the Beirut Rafik Hariri International Airport. The value of the deal is $6.4 million.

Amine Jaber, Director of Equipment Maintenance Department at the airport, said: "A new control system will be put in place to link all cameras and fence sensors." Around 200 additional high definition and infrared cameras will be instal...

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Pharmaline factory to open in Jeddah. Pharmaline Saudia is a joint-venture between Malia and Al Rashid Group

Malia Group has signed a joint-venture agreement with Saudi Arabia's Al Rashid Group to open a Pharmaline factory in Jeddah, Saudi Arabia. The factory will start operating in 2018.

"Pharmaline Saudia is an important milestone for the group, as it signifies our first direct presence in the GCC. We are confident that with Al Rashid Group, we will be able to bring Pharmaline's products to a new and challenging market," said Jacques Sarraf, chairman of Malia Group.

The investment in ...

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Industrialists: To sort trash before it is exported. Recycling factories are at risk of closing

The Association of Lebanese Industrialists (ALI) called for sorting the garbage before exporting, if the Government adopts the exporting option.

Fadi Gemayel, Chairman of ALI, said: "We refuse exporting the garbage without sorting it, as this will impact the economy, mainly the industry, and local labor."

This request from ALI comes after the failure in implementing the municipalities' decentralization plan and proposing the export of garbage.

According to ALI around 30 pe...

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Mobile tender postponed again to next month.

The Department of Tenders has once again postponed the opening of the bids for the mobile network tender, this time to December 8, 2015, according to Jean Ellieh, the department's Director General.

The Egypt-based Orascom Telecom, Media and Technology (OTMT) was not able to submit the required documents within the deadline given to it, Ellieh said. Last month, the opening of the bids was put off to November 11, 2015 in order to allow Orascom to bid in the tender. It was previously exclud...

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EU provides $27.5 million in aid to Lebanon.

The European Union (EU) has adopted the 2015 second assistance package for Lebanon totaling €25 million ($27.5 million).

The aid consists of three programs. The first is valued at €15 million ($16.5 million) and aims at supporting private sector development by assisting micro, small and medium-sized enterprises to be more competitive.

The second is valued at €5 million ($5.5 million) and consists of providing technical assistance to the Government. The assistance will help improve ...

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Bank Audi plans to expand foreign footprint. Eyes UK and sub-Saharan countries

Bank Audi is planning to have its foreign entities constitute 60 percent of its consolidated activity. Around half of the bank's activity has been derived from its entities outside the local market.

Freddie Baz, Group Strategy Director and Vice Chairman, said: "Our aim is to make Audi's share in the local market between one third and 40 percent of the total group profile." The goal behind this is to expand the bank's portfolio outside and reduce the impact of the local bank's results on ...

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Pressing economic issues waiting for Parliament quorum. Grants and soft loans worth $600 million need ratification

A Parliamentary session has been called for by Speaker Nabih Berri on November 12-13 to ratify several loans and grants that are about to expire, as well as laws in the fields of finance, infrastructure, and public works.

A 38-item agenda has been set, including $600 million worth of loans and grants, including two loan agreements with the European Investment Bank (EIB) for funding highway projects and the construction of the Bisri Dam. Other items are dedicated to the ratification of lo...

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Tripoli power company open for subscription. Tripoli Chamber of Commerce is first to subscribe

Nour al Fayhaa, a newly established company founded by former Prime Minister Najib Mikati to generate power for the greater Tripoli area, has begun receiving subscriptions in the company's capital.

The value of subscriptions opened so far to the public is LL1 billion ($666,000). The Chamber of Commerce, Industry, and Agriculture of Tripoli and the North is the first to subscribe with LL100 million ($66,000). Toufic Dabbousi, Chairman of the Chamber, said: "We encourage businesspeople, inv...

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Health Ministry launches emergency service.

The Ministry of Public Health (MoPH) has announced a new mechanism for emergency cases that are having difficulties being admitted to hospitals.

The service was put together in collaboration with the Syndicate of Hospital Owners with the goal of following up on patients' complaints and comments.

A hotline was created for patients who want to raise a complaint about private hospitals, which is 1214. The ministry appointed local firm Teleperformance that will receive and process thes...

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Pedestrian zone in Saida souk.

The Municipality of Saida has decided to close the shopping souks before all vehicles and transform it into a pedestrian area.

The Saida Traders Association launched a petition for preventing vehicles from entering the souks, upon the request of the area's traders. It was presented to Mayor Mohammad Saudi who provided his consent.

Saudi said that cars will also be prevented from parking on either side of the street and hawkers will be removed.
...

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No economic crisis according to Central Bank. Riad Salameh praises resilience and will enhance BDL lending policy

The Central Bank (BDL) said the country was not in an economic crisis because negative growth had been avoided and the monetary position remains strong. The country is expected to record zero percent growth this year as per BDL projections, down from an average of two percent through previous estimates. BDL reviewed its growth prospects due to political conflicts and security uncertainty that are weighing heavily on the economy.

"Given the situation in the Middle East, Lebanon is showing...

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Software sector to grow nine percent a year. Mobile app industry is the next boom

The software sector is expected to achieve an annual growth rate of nine percent over the 2015-2018 period, according to recent data.

The local software industry generates an average value added of 79 percent of its total output, according to the Study on the Economic Contribution of the Software Industry in Lebanon, published by experts under the guidance of the World Intellectual Property Organization (WIPO). This compares with an average value added of just 31 percent for all Lebanese ...

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New guidelines for stone pine forests management by FAO.

The Ministry of Agriculture in cooperation with the Food and Agriculture Organization of the United Nations (FAO) launched guidelines for the management of stone pine forests in Lebanon.

The forest management guidelines integrate measures to enhance resilience of the pine forest against severe weather events and pests, as well as actions required for addressing the current problem of pine losses. Marie Louis Hayek, Program Assistant at FAO, said that these guidelines comprise pruning met...

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Kunhadi launches training academy.

Kunhadi, a nongovernmental organization for traffic safety, is launching an academy to train taxi drivers.

Fadi Gebran, founder, said: "Our team has and will receive extensive training from British and Australian experts, as well as experts from the International Road Transport Union." The team will then train one hundred taxi drivers during the first year, starting in 2016.

In the third year of the project, the academy plans to train 800 taxi drivers, including those who work in ...

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Industrialists bidding to manage Iraqi factories. Iraq’s Government showing clear interest in involving Lebanese

Lebanese industrialists have the opportunity now to invest in rehabilitating and managing Iraqi factories owned by the public sector, which had been closed or had their production halted for the past several years. More than 33 factories are open for private management.

Fadi Gemayel, Chairman of the Association of Lebanese Industrialists (ALI), said: "The Iraqi Government has shown interest in involving Lebanese industrialists in the management of these factories."

The Iraqi Govern...

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FATCA or GATCA which tax law to rule?. A new global tax information law is expected by 2016

The US Foreign Account Tax Compliance Act (FATCA) could be eventually expanded into a more global tax information sharing agreement between countries. This international act is called 'Global Account Tax Compliance Act' (GATCA).

FATCA aims at preventing tax abuse by US persons living abroad and requires foreign financial institutions to identify and provide information on US clients with accounts outside the US.

Local banks have not yet received any official notification about GAT...

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All courier companies now permitted to process work permits.

The Ministry of Labor has terminated the exclusive rights of LibanPost to handle paperwork pertaining to work permits. This decision has allowed all postal companies to handle work permit processing. Business employers and individuals now have the choice to send applications related to housekeepers and employees through other courier services besides LibanPost.

The Labor Ministry had signed a contract in 2008 with LibanPost authorizing the company to exclusively handle work permits, pape...

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Saida’s new port completes first phase. Old port to open only to fishermen

The first phase of a new port in the Dekerman area, at the southern entrance of Saida has been completed.

It includes a 150 meter-long dock and a one-kilometer long jetty. The quay has an area of 200,000 square meters and a depth of 15 meters, which is suitable for medium sized vessels. This phase cost $17 million and took two and a half years to complete.

The second phase is awaiting the 'Order to Proceed' by the Ministry of Public Works and Transport (MoPWT). Upon the port's com...

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EU adds $43 million in humanitarian aid.

The European Commission (EU) will give an additional $43 million in humanitarian aid to support Syrian refugees and their host communities in Lebanon.

The funding will help prepare the most vulnerable refugees for the approaching winter. It will provide assistance for shelter rehabilitation, heating and healthcare support for some of the most needy families, which will allow them access to secondary healthcare in hospitals.

European Commissioner for Humanitarian Aid and Crisis Man...

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Growth and success stories highlighted. at Business Opportunities Conference

More than 600 business managers, investors, and officials attended the 12th edition of the Business Opportunities in Lebanon Conference being held at the Phoenicia Hotel November 2-3.

The conference, the largest business event in the country, is organized by InfoPro, parent company of Lebanon Opportunities, under the theme 'Growth and success… no matter what'.

Ramzi El Hafez, Publisher of Lebanon Opportunities, said: "Our country is going through ugly, smelly and challenging times...

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Lebanon’s debt oversubscribed for 2015. Showing sign of continuous confidence by investors

The Ministry of Finance (MoF) announced today that it has succeeded in covering the full debt duties in foreign currencies for 2015 and part of another debt to be settled for 2016, through a Eurobond issue valued at $1.6 billion.

"The $1.3 billion sovereign Eurobond issue aims at financing debt duties in foreign currencies for the second half of 2015. A swap for bonds maturing on 19/01/2016 has also been executed at a value of $318 million," a statement by the MoF said.

"The curr...

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Sleep Comfort to tap Egypt in 2017. Turnover expected to reach $20 million as a start

Sleep Comfort, a manufacturer of mattresses and furniture, will open a factory in Egypt in late 2017.

Noel Ayoub, Chairman, said: "We find it feasible to tap this large market."

Investment in the project is estimated at $20 million. "The operational costs are very low compared to Lebanon," he said.

The facility will cover an area of 10,000 square meters. It will create 500 full time jobs.

The turnover of the Egyptian facility is expected to be $20 million in the beg...

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