Canadian chain Paramount expands locally. $20 million investment for restaurants and butcher shops

The Canadian chain Paramount Fine Foods, owned by local businessman Mohamad Fakih, has expanded to the local market. The soft opening for the first shop is June, 30

The expansion includes high level restaurants and the chain's butcher shops, all of which will be opened gradually. The first butcher shop and restaurant will open in Jnah, including a central kitchen.

Other outlets will open in Verdun, Hadi Nasrallah Highway in the Southern Suburbs, Hazmieh, and Sodeco. As well as se...

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BLF to launch fixed-income fund.

Banque Libano-Française (BLF) plans to launch an open-ended fixed-income investment fund and aims to raise $50 million in one year.

The financial vehicle, LF Lebanon Income Fund, will mainly target Government instruments such as Eurobonds, but it could also invest in corporate bonds when available. "We aim to bring the size of the fund to $50 million a year from now," said Jamil Koudim, Head of Asset Management at BLF.

The fund, which is denominated in US dollars, will be op...

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IFC to invest in Bank Audi Turkey. Capital increase of $342 million will include EBRD and other investors

Odea Bank in Turkey, a subsidiary of the Bank Audi Group, said it will increase its capital by one billion Turkish lira ($342.6 million) through subscriptions from new shareholders and its mother company. The bank had $471 million in equity at the end of 2015.

The International Finance Corp (IFC) and the IFC Financial Institutions Growth Fund will inject a $110 million capital increase while the European Bank for Reconstruction and Development (EBRD) will contribute $90 million. The remai...

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Specialized hospital planned for Zahlé.

A new specialized hospital, named the Fadi and Mark Kameel Maalouf Hospital, in Haouch El Omara, will be inaugurated in late 2017.

Investment in the 56-bed hospital, which will be dedicated to pediatrics, ophthalmology, plastic surgery, and gynecology, is estimated at $8 million.

Situated on the on the main Zahlé Highway, it will be built on a plot of land measuring 5,000 square meters, with a built-up area of 10,000 square meters. Dar Al Amara Consultant Engineers and De...

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Solidere pays out dividends despite losses. Better sales expected this year

Solidere will pay dividends of $35 million to its shareholders and expects greater property sales by the end of 2016.

In an announcement following its General Assembly meeting, held June 27, the real estate developer said that it will distribute one share for every 80 shares, and $0.10 per share, based on shareholders' record as of August 18, 2016.

Nasser Chammaa, Chairman, said: "Despite last year's negative results, 2016 is beginning to witness positive and encouraging signs." L...

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Foreign investment down to $2.34 billion. Outbound funds drop by half

The inflow of foreign direct investment (FDI) decreased in 2015 by 19 percent to $2.34 billion compared to 2014. FDI outflows have plunged by 49 percent to $619 million. This has led to an increase of almost 46 percent in net flow investments. FDI grew by 6.6 percent in 2014.

The figures were reported by the World Investment Report 2016 (WIR), published by the United Nations Conference on Trade and Development (UNCTAD.

Real estate is the largest contributor to the drop in FDI, said...

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Banks now to fund speculative property deals. Ruling helps ease developers’ debt burden

The Central Bank (BDL) has issued a ruling that allow banks to provide loans to real estate companies that wish to purchase built properties to help alleviate the debt burden of some real estate developers.

The ruling allows real estate developers that are unable to sell their stock in order to meet bank installments to sell the entire project to a company that has the financial ability to wait for better market conditions.

The construction project of the property to be purchased...

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120 festivals attract growing number of audiences. $30 million budget set for international festivals

Festival fever is on the increase as the country sees more than 120 festivals organized this summer, a 25 percent increase from last year, according to Nada Sardouk, Director General of the Ministry of Tourism.

Promoters are looking for their slice of what is estimated to be a multi-million dollar industry.

The country has nine international festivals, which attract a high number of visitors and offer upper scale programs with varied international artists. Both Saida Internationa...

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Brexit! The local impact. Falling euro and sterling will affect exports. Trade agreements to be redrafted in the medium term

Local business stakeholders expect little or no change from the UK's decision today to leave the European Union (EU). The value of imports from the UK stands at $525 million (up from $305 million in 2006) with exports last year at around $40 million (compared to $30 million in 2006).

Mohamed Choucair, Chairman of the Federation of Chambers of Commerce, Industry and Agriculture said: "We do not expect any change in our bilateral trade relations." He expects that the UK will maintain its ...

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EIP fully acquires General Cable Egypt. Deal valued at $15 million

Emerging Investment Partners (EIP) has fully acquired General Cable Egypt, said Wassim Heneine, EIP's Managing Director.

The agreement was closed for an undisclosed sum. According to sources close to the deal, the investment included $10 million – $12 million in equity, and the rest in debt from shareholders.

The project involves expanding the production of low-voltage cables, and the possibility of introducing the manufacture of medium-voltage cables, he said.

The compa...

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Solution in sight for ‘The Landmark’ expropriation. Project has been waiting since 2013

The State, through the Ministry of Culture, is keen on executing the expropriation of The Landmark, a mixed use project that had been planned for the Riad El-Solh area.

Designed by French architect Jean Nouvel, it was to include 43 stories, a luxury mall, and a hotel.

Ruins were found during the project's excavation, which led to the Ministry's interference. In 2013, the Ministry issued an 'expropriation project' for the 8,000 square meter property.

A source from The Landma...

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Khoury Contracting lowest bidder in Burj Hammoud tender. Landfill to contain 1.4 million tons over four years

Khoury Contracting Co. is the lowest bidder among six companies participating in a tender to operate a landfill in Burj Hammoud as well as to construct a breakwater.

"This tender was a bit different than that of Costa Brava, because the winner is requested to remove the trash mountain already on the site," said Dany Khoury, Chairman of Khoury Contracting. The trash 'mountain' is estimated to contain 3.5 million cubic meters of trash.

Khoury's bid is $109 million, including VAT. Th...

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Right & Rights wins OSN’s exclusive distribution rights. Distributor in talks with 40 French TV channels

Right & Rights (R&R) has signed an agreement with the Dubai-based pay TV network OSN for the exclusive distribution of all OSN channels on the local market.

R&R, which is involved in media aggregation and sublicensing of TV services, will distribute OSN content through its sister company ECOnet and other local distribution platforms. The deal covers distribution through wireless networks, cable, and other systems.

The contract is for six years and could be renewed after this perio...

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Jbeil apartments selling at $7,500 per square meter. Pricing attributed to location and specs

Apartments at Byblos Beach Village are being offered as high as $7,500 per square meter, making it the most expensive location in the country on par with similar projects in Solidere.

The prices of other Jbeil projects do not exceed $1,500 per square meter.

According to Karl Zouein, the project's architect, the prices were set because of the unique location. "It is rare to find such a location on the seashore," he said. The apartments' specifications are also luxurious.

T...

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Solar power to light Tripoli. Chamber of Commerce negotiating with Indevco’s Phoenix Energy

The Chamber of Commerce, Industry and Agriculture in Tripoli and the North will launch a project to light Tripoli's streets and the neighboring areas with solar power.

Toufic Dabbousi, Chairman of the Chamber, said: "We will fund the project with a soft loan through the National Energy Efficiency and Renewable Energy Action (NEEREA) mechanism supported by the Central Bank."

The cost of the project will touch $15 million.

By the end of the project, the solar panels will gene...

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$571 per capita in health expenditure. Spending tops $3.3 billion

Healthcare spending was valued at $3.3 billion, accounting for 6.3 percent of Gross Domestic Product (GDP), according to Business Monitor International (BMI) Research.

Sleiman Haroun, Chairman of the Syndicate of Private Hospitals, said: "These figures are very logical in that they include expenditures inside and outside hospitals, in addition to laboratories, pharmacies, and physician clinics."

According to Haroun, healthcare spending as a percentage of GDP is constantly decreasin...

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KBE HVAC factory plans expansion. Total value to cost $10 million

KBE, a factory that manufactures heating, ventilation, and air conditioning (HVAC) appliances, is expanding its premises in Roumieh.

The factory, owned by Khalil Boutros, will expand from 4,500 square meters to 25,000 square meters. The expansion value is $10 million.

Construction is expected to be complete by the end of the year.

Carmen Chadaideh, Commercial Manager at KBE, said: "This is the right time to expand because we believe that when the reconstruction process begin...

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Ministry of Health hires third party administrators. To manage in-house hospitalization of patients

GlobeMed, Best Assistance, and Total Care – third party administrators (TPAs) of medical services – won a tender requested by the Ministry of Health to manage patients hospitalized at its expense.

Five companies participated in the tender, including NEXtCARE and MediVisa.

The Ministry will notify the three TPAs in a month from now of the contract's final value, and the hospitals in which they will manage the claims.

While the winners' remit will include private hospitals,...

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World Bank grant to support schools and Syrian students.

The Ministry of Education and Higher Education will receive a $32 million grant from the World Bank to support the operational needs of schools and educational improvements to meet the huge influx of Syrian refugee students to local schools.

The grant will contribute in financing all student expenditures in the schools, as well as rehabilitating the buildings of some public schools, and enhancing the quality of education.

It will also provide students with part of the required book...

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ESA for incubation, startups.

École Supérieure des Affaires (ESA) will renovate the old consulate building and dedicate it for the activities of the 'Smart ESA' program. The building will be used for incubating and accelerating startups from different sectors including digital innovation, environment, and women empowerment.

Smart ESA is a strategic initiative of the Central Bank (BDL), the French Embassy, the French Ministry of Foreign Affairs, and the Regional Chamber of Commerce and Industry of Paris and Ile...

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Printania in Broummana home to 15 restaurants. Additional eight restaurants on Broummana high street including Roadster, Zaatar w Zeit, Nasma

Two Printania venues in Broummana will see the launch of 15 restaurants in late June, with a further eight restaurants opening around Broumanna high street. Eight of the 15 outdoor restaurants will be at the Printania Villa, with the remaining seven at the Printania Garden.

Printania Villa was recently remolded into a food and beverage (F&B) cluster, next to the Printania Hotel.

Pierre Ashkar, owner of the hotel and Head of Broummana Municipality, said: "With the dwindling number...

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BDL extends use of real estate guarantees.

The Central Bank (BDL) has authorized banks to continue using real estate guarantees to mitigate credit risks of non-performing loans.

The authorization has been extended for an interim period ending on December 31, 2018, according to BDL's intermediate circular 12,277. Deadline had been set in a former circular at year end 2015.

The real estate guarantees are part of the credit risk mitigation techniques that banks were allowed to use according to a BDL decision made in 2006 in c...

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Aluminum profile factory for Arka in 2017. Production capacity to reach ten tons per day

Elbadawi Company for Industry, Trade and Contracting will open an aluminum profiles factory in Arka, Akkar in mid-2017.

Investment in the project is estimated at $10 million. Khaled Soueidan, a major shareholder, said that he will finance the project from his own resources.

The total land space is 30,000 square meters, with a built-up area of 6,200 square meters. Machines required for the factory will be imported from South Korea.

The factory is expected to create aro...

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Cosmetics factory opened in Mtein.

HIXP, a newly established company, opened a cosmetics factory in the industrial city in Mtein.

The company produces a wide range of cosmetics including hair dye, shampoo, shower gel, hand wash, acetone, perfumes, and hair conditioner. The company manufactures for private labels, as an original equipment manufacturer (OEM).

"We aim to launch our own brand after three months," said Pierre Abou Abdallah, partner at HIXP.

Investment in the project exceeds $1 million excluding t...

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Banks defy terror and commit to business as usual. Makram Sader: BLOM Bank not being overzealous

BLOM Bank said the explosion targeting its headquarters on Sunday evening did not result in any damage to the bank's documents. It stated that services continue to be provided across all its branches. Headquarters operations are being carried out in the adjoining premises until repair works are completed.

Some media reports linked the explosion to the closing of bank accounts in compliance with the US Hezbollah International Financing Prevention Act.

Makram Sader, Secretary General...

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The Datsun is back!. Available at Rymco starting next month

Rasamny Younis Motor Co. (RYMCO) will distribute Nissan's Datsun brand, with the first shipment of about 300 cars expected to arrive in July, said Jade Ayoub, RYMCO's Marketing Manager.

Nissan halted production of the Datsun brand in 1986, re-launching it in 2013. Lebanon will be the fifth country in the world to import the Datsun brand after its re-launch, Ayoub said.

The cars, manufactured by AvtoVAZ in Russia, will be distributed through the Nissan showrooms of RYMCO, Ayoub said...

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Syrian food imports halted for eight months. Measure needs effective implementation to have an impact

The Ministry of Agriculture has decided to halt the import of fruit and vegetable trucks from Syria until February 2017. Imports need the prior approval of the ministry.

The decision took effect at the beginning of this month.

Ibrahim Tarshishi, Chairman of the Association of Bekaa Farmers, said: "We support this decision because the market needs to be protected. Our production stocks are not moving because the market is flooded with Syrian products."

Local products exported...

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Aley mountain trails part of tourism strategy.

A new mountain trail, Tree Trail, will be launched Saturday, June 11, by the Association for Forests, Development and Conservation (AFDC), Aley Development Forum, and Delta.

The announcement of the trail comes on the eve of the Aley rural tourism strategy launched by the Ministry of Tourism.

The trail aims to introduce students and adventurers to wildlife. "The 1.5 kilometer trail passes through 50 different kinds of trees, some of which are rare," said Jawad Bou Ghanem, AFDC proj...

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Mall coming to Kaslik. $20 million concept owned by Abi Nasr family

The design of a new mall in the Kaslik area is in its advanced stages. The mall will be managed by Shopping Mall Advisory Group (SMAG).

The mall is owned by Abi Nasr family, who will be investing more than $20 million. "The project is in an extremely prime location and will have high-end finishing and positioning. It will create a discipline in the retail industry in the area, in terms of parking space availability, climate control, and lifestyle environment," said Rony Aoun, CEO of SMAG....

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Central Bank closes 100 Hezbollah-related accounts. Banks required to go through BDL list

Central Bank Governor Riad Salameh said 100 bank accounts with ties to Hezbollah have been closed.

Among the accounts that have been reported closed are those of Al Rasul Al A'azam Hospital, Islamic Charitable Emdad Committee, and Al Shahid Foundation. Hezbollah uses these institutions mainly to treat partisans who participated in the Syrian civil war and to look after orphans of slain parents.

Salameh told CNBC: "There are 100 bank accounts connected to Hezbollah that have already...

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EuroMena acquires stake in Credit Libanais. Part of last month’s sale of EFG Hermes shares

The EuroMena III, a Capital Trust fund, has obtained approval to acquire around three percent of Credit Libanais, at $20 million. "It was the best deal in town for a very long time," said Romen Mathieu, Managing Director of the EuroMena funds. The nominal purchase price to book value (P/B) comes out to 1.07. But the bank owns a lot of real estate which, when revaluated, drops to below one. Bank Audi, Blom, and Byblos are all trading around that price. "Growth opportunities at Credit Libanais are...

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Lebanon name lifted from travel red list.

The Ministry of Public Works and Transport said that the International Civil Aviation Organization (ICAO) has lifted Lebanon's name from the travel safety red list. This step is deemed to have a positive impact on international airline companies who have avoided visiting the Beirut Rafik Hariri International Airport (BRHIA).

The airport's weak points included the inspection of luggage and the failure to implement a plan to equip the facility with more lighting and security cameras. Last w...

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Medical and pharma code of ethics signed.

The Ministry of Health (MoH) has endorsed a code of ethics that regulates the promotion of pharmaceutical products. The code was signed by unions and orders in the medical and pharmaceutical sectors.

The code stipulates that promoted information should not be incorrect, incomplete, or deceptive. The concerned parties should do their best to avoid ambiguity. The information should be clear, accurate, transparent, balanced, and supported by scientific and clinical evidence.

The objec...

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Gargour eyes Fiat and Alfa Romeo. Talks in agreement with Saad and Trad

T. Gargour & Fils Co. (TGF) is in talks to get the local dealership for Italian car maker Fiat, a source close to the talks said.

The source also said that the talks were done in agreement with Saad and Trad, the current Fiat distributor in Lebanon.

Fiat and Chrysler merged in 2014 to form the world's seventh-biggest car maker Fiat Chrysler Automobiles. TGF already has the Chrysler dealership. If the new dealership goes ahead, it will allow TGF to sell the two brands of the one ca...

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Ministry of Industry plans to reduce trade deficit. Vision 2025 looking at $5 billion increase in exports

The Ministry of Industry (MoI) has launched a vision for the year 2025 to encourage the creation of new subsectors and raise productivity.

Minister Hussein Hajj Hassan said that the strategy hopes to lift exports up to $5 billion and decrease imports from $18 billion to $16 billion, thus reducing the fiscal deficit from $15 billion to $11 billion.

The strategic goals behind the vision include: Providing a unified central building for the ministry and new centers for its department...

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Fransabank buys stake in Pinpay for $2.5 million. Bank to use the service

Fransabank will invest $2.5 million in Pinpay, a local provider of mobile payment services, said a source close to the deal.

Under the deal, Fransabank will also be using Pinpay's services for its customers. The bank will stop operating the Simba mobile payment application provided by Viamobile.

Fransabank's $2.5 million stake will increase PinPay's capital to LL13 billion ($8.6 million). Pinpay's other shareholders are Bank Audi, Bankmed, and Middle East Venture Partners (MEVP)...

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