Bank Audi to offer new preferred shares for $250 million.

Bank Audi will issue 2.5 million preferred shares for $250 million. The price of the shares has been set at $100, with a nominal value of LL1,656.

Approved by Audi's shareholders, the issue will increase the bank's capital from $2.75 million to $446.1 million. The value of the increase is equivalent to the total nominal value of the shares. The remaining $247.3 million consists of the issue premium.

The issue's net proceeds will be used for general funding purposes, including b...

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Car paints factory in Ghazir to expand.

General Paint, a manufacturer of car paints and accessories, will expand its factory in Ghazir industrial city. A $20 million investment is set to double the size of the facility to 30,000 square meters (m2) and will be completed in late 2018.

According to Johnny Corm, General Manager, the reason behind the expansion is because of the company's marketing move into the Latin American and Far Eastern markets.

Production capacity of the factory will also double to reach 14 million li...

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Entrepreneur hub is set to launch in early 2017.

Antwork, a hub for the independent workforce that provides space for a network of entrepreneurs through agile and fixed workspaces, aims to link the local startup ecosystem with ecosystems abroad.

Funds of $1 million have been invested by 'Angels'. The company is now calling for 'Series A' funding round, according to Zina Dajani, Founding Partner. This type of funding follows on from seed funding and acts as stepping stones for the purpose of raising capital, and how that capital is allo...

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Dalal Steel expands Zahleh facility.

Dalal Steel Industries, a manufacturer of metal building systems and pre-fabricated houses, will open its extended facility in Zahleh in early 2017. The expansion will create around 45 full time jobs.

Investment in the 22,000 square meter (m2) expansion is $9 million and has helped toward increasing the factory's built-up area to 62,000 m2.

Production capacity of steel structure, insolated sandwich panels, and prefabricated houses will increase by 35 percent.

Marwan Dalal...

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ICT sector growing at ten percent rate. Fastest growing segment of the economy

The information and communication technology (ICT) market is expected to grow at a compound annual growth rate (CAGR) of 9.7 percent to $543 million by 2019, according to 'Investment Opportunities in the ICT Sector-2016', a report published by the Investment Development Authority of Lebanon (IDAL). The ICT market grew by a CAGR of seven percent to $436.2 million in 2016, compared with 2014, placing it as the fastest growing segment of the economy.

The Central Bank (BDL) will continue to ...

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UK Lebanon Tech Hub partners with US incubator, 1776.

The UK Lebanon Tech Hub (UKLTH), a joint initiative by the Central Bank (BDL) and the UK Government, has signed a partnership agreement with 1776, a Washington DC-based public benefit corporation and the first international technology incubator to set up a direct presence in the Middle East and North Africa (MENA) region.

The partnership aims to help local tech startups break into new international markets, particularly the Arab Gulf region where 1776 recently opened its Dubai campus. <...

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Household spending to grow six percent. Share of non-essentials expected to tighten

Household spending is expected to grow at a compounded annual growth rate of 6.4 percent between 2016 and 2020, according to the Business Monitor International (BMI) report released this week. Total household spending is expected to increase from $27 billion this year to $35 billion by 2020. Average spending per capita will rise from $4,594 to $5,998 in 2020.

The report stated that the election of a new president has spurred optimistic hopes regarding the country's economic activity for t...

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$1 billion real estate company to be launched. Specialized in built-property resale

A real estate company with a capital of $1 billion is expected to be launched by Massaad Fares and Namir Cortas in the first half of 2017. The company will buy and sell built real estate properties under the directives of Intermediate Circular 427 issued by the Central Bank (BDL) earlier this year.

The new firm's capital will be raised through a collective investment scheme (fund). Med Securities has been appointed as the leading placement agent and subscriptions will be carried out thro...

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$1 billion stimulus from Central Bank. One percent interest rates

The Central Bank (BDL) has approved a new stimulus package of LL1,500 billion ($1 billion) for 2017, according to BDL's intermediate circular 444. The package consists of soft loans to banks at an interest rate of one percent.

This brings the amount of money injected in the economy under BDL's stimulus program to $5.4 billion. The program was first launched in 2013 and aims to boost lending at low interest rates to the private sector, mainly for small and medium enterprises (SMEs).
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BLOM buys HSBC Lebanon. Deal value: $129-$144 million

BLOM Bank has signed an agreement to acquire HSBC Bank Middle East Limited – Lebanon for a value that is likely to range between $129 million and $144 million. The deal is expected to be completed in the first half of 2017.

The value constitutes the bank's goodwill and equity. The goodwill includes the value of HSBC's business and the improvements in the value of the bank's real estate properties.

"We placed a ceiling of $69 million on the price for the goodwill," said Saad Azhari...

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Gezairi Express is exclusive agent for TNT. Guarantees access to 200 countries

Gezairi Express is now the exclusive local agent for TNT, Netherlands-based international courier company. Gezairi Express is a subsidiary of Gezairi Group, a local shipping and logistics group.

The local shipping group's selection was based on an assessment of TNT's existing operations and future market requirements.

Jawad Bawarshi, Managing Director of Gezairi Group, said: "Becoming the sole agent of TNT allows doubling our express work load."

The new agency provides...

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Entrepreneur online map launched.

Digital Opportunity Trust (DOT), a non-profit organization in partnership with UNESCO, launched today (November 18) the 'social entrepreneur online map'.

The initiative's aim is to support social businesses and the startup ecosystem, particularly those outside the capital.

Marianne Bitar Karam, Country Director at DOT, said, UNESCO provided funds of $4,400 for the project.

Seiko Sugita, Program Specialist at the UNESCO Beirut office, said: "It is a small amount because w...

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€75 million from Italy for infrastructure. To co-finance first phase of industrial cities

A Framework Agreement was signed November, 16, to lend Lebanon 75 million euro ($80 million) in soft loans. The agreement was between the Council for Development and Reconstruction (CDR) and the Embassy of Italy. The loans will be used for wastewater, agricultural, and industrial projects.

The terms have been set at zero interest for 17 years with a five-year grace period.

Around 50 million euro ($54 million) will be used for wastewater systems in Hasbaya, Hermel, Bakhoun, and B...

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Boutique hotel to open on Batroun's seafront.

A boutique hotel will open on Batroun's coast in late 2017. Antoine Abi Karam, the developer, said that an estimated $4 million will be invested. The four-star boutique hotel will comprise 28 rooms over five floors.

Abi Karam said that negotiations with a hotel management chain are under way .

"We still did not decide whether we will manage the hotel or hand it to a management company," he said.

The location of the hotel was previously classified as an industrial zone,...

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$428 million from EU allocated for 2016-2017. Potential additional funds available

The EU has pledged at least €400 million ($428 million) to be allocated in 2016 and 2017 toward five priority actions agreed to between the Government and the EU. Additional funds may be made available. The priorities aim at supporting and strengthening local resilience and stability. They also seek to address the impact of the protracted conflict in Syria.

A national counter-terrorism strategy forms the first priority. It aims to reform institutional capacities relating to law enforcemen...

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$13 billion is the local cost of the Syrian war. Positive boosts to imports and production rates

Losses in Lebanon due to the Syrian war have been estimated at $13.1 billion. $5.6 billion of this equates to 2015 alone, according to this month's Survey of Economic and Social Developments in the Arab Region 2015-2016, published by ESCWA.

The early years of the war (2012-2014) cut real GDP growth by around three percentage points per year. Demand for local goods from Syria – Lebanon's fifth largest trading partner – has fallen and transit routes are blocked. Local manufacturers have be...

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Régie to manufacture Imperial Tobacco brands. Philip Morris and JTI show an interest

Régie Libanaise des Tabacs et Tombacs (Régie), the State-owned tobacco monopoly, has signed an agreement with the UK-based Imperial Tobacco Company to produce international brands 'Gitanes', 'Gauloises', and 'West' in Régie's facilities. An estimated $7 million has been invested in the new production line, which is expected to be operational by February.

Around 10,000 boxes (each box contains 500 20-cigarette packs) will be produced for the local market at first, ac...

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Phoenician route launched in London.

The Ministry of Tourism (MOT) launched in London last week the Phoenicians' Route Cultural Tourism program at the World Travel Market (WTM), a global event for the travel industry. The program is in collaboration with the Council of Europe and the World Tourism Organization (UNWTO) and will integrate the public and private sector.

The Phoenicians' Route links 18 countries with a common heritage.

Participants discussed during the event the development and marketing of three pilot cu...

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$300 million in hospitalization allocated by the Government. Public and private hospitals to benefit

A Cabinet decree issued last week allocated around $300 million per year to cover hospitalization fees of patients to be treated at the expense of the Ministry of Public Health (MoPH).

The amount is an increase of around eight percent compared to 2014.

Around $86 million will be allocated to 34 public hospitals, and $182 million to 127 private hospitals, private long-stay medical elderly homes, and specialized treatment centers.

The services that will be provided are base...

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$26 million added to humanitarian assistance.

The Lebanon Humanitarian Fund (LHF), a multi-donor fund managed by the UN, is working to implement 50 projects worth $26 million, according to the Office of the Coordination of Humanitarian Affairs (OCHA).

Belgium, the Netherlands, Germany, and Sweden have contributed a sum of $11.5 million, in addition to a residual amount of $18.5 million carried over from the previous year.

The implemented projects are spread over an extensive range of sectors, mainly Water, Sanitation, and Hyg...

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Talaya expands Tarshish water plant. To start bottling glass gallons

Talaya will install additional production lines in its Tarshish water plant for the bottling of 15 liter glass gallons. The company invested around $5 million to increase the plant to 3,000 square meters (m2).

Each glass gallon retails for $20, and $5 per refill.

Marcel Hajj, General Manager, said that the company has plans to double business over the next two years.

The company was established in 2012 and is a subsidiary of XOL Automation, which owns the e-commerce platf...

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Green homes in the pipeline. Affordable units with available financing

Ten pilot low-carbon emitting homes have been developed under the National Action for Green Energy Efficiency Buildings (NAGEEB) program, a public private partnership supported by UNDP. Around 300 homes are in the pipeline, with a goal to execute 1,500 homes by 2030, according to Bernard Ammoun, CEO of Green Future Lebanon Holding, the project's developer.

"NAGEEB aims to fight against the desertification of villages, to reduce the construction process's environmental impact, and to prov...

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First taxi service for the disabled.

Disabled man, Charbel Daghfal, recently launched the country's first 'special needs' taxi service. Daghfal has already invested $20,000 of his own money into WheelChair Taxi, the name of the firm. "I am seeking further investment of $30,000," he said.

The taxi firm is based in Jounieh. Its small fleet of Renault Kangos is adapted for disabled use.

Daghfal said he is looking for further investment to buy and adapt new cars, in order to expand the service to other parts of the coun...

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'Beit' guesthouse goes to Nabatieh. 'Tawlet Saida’ signs agreement with Hariri Foundation

Beit, a chain of guesthouses, will open in late 2017 its fourth property in Zefta, near Nabatieh. This follows three existing properties in Douma in the North, Ammiq in West Bekaa, and El Qamar in the Shouf region. The 12-room Zefta guesthouse will be located in a renovated traditional house.

Beit was founded by Kamal Mouzawak, who is behind the 'Tawlet' restaurant chain, and 'Souk El Tayeb' weekly farmers' market.

An agreement has also been signed with the Rafic Hariri Foundatio...

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Yves Rocher returns to the market. 15 locations planned for the next two years

Pimak, a recently established company, is bringing back French beauty and cosmetics brand, Yves Rocher. Pimak announced it will open 15 Yves Rocher stores in the next two years. Investments will reach more than $2 million and 50 jobs will be created.

The first Yves Rocher store will open in City Mall this December, according to shareholder, Pierre G. Achkar.

The store will be 39 square meters (M2).

The next two outlets will be in Zalka and Zgharta. The 130 m2 Zalka store ...

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78-room Citea Hotel to open in Ashrafieh.

The Citea apart-hotel will open early December in Alfred Naccache Street, Ashrafieh. Investment in the ten-floor project is around $10 million. The hotel is owned by Dolphin Real Estate which is owned by Ehsan El Kara.

The hotel comprises 78 rooms ranging between 30 and 90 square meters (m2.

It also includes a restaurant, rooftop lounge, five meetings rooms, and a gymnasium.

The rack rate starts at $210 per night. \this rate falls to $93 when booking through an online rese...

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Deposits in banks show record growth since 2011. Most deposits are from abroad

Bank deposits increased $6.6 billion in the first nine months of 2016. This is the highest growth in absolute value for corresponding periods since 2010. The value of additional deposits is 40 percent higher than during the same period last year, according to the Central Bank (BDL).

In percentage terms, total deposits rose 4.3 percent over the nine-month period compared with an increase of three percent in the same period of 2015.

The swap operations that BDL carried out earlier t...

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Seeking $85 million to build three industrial zones. Italian Government provides $8 million loan

Around $85 million is required to complete three industrial cities planned by the Ministry of Industry for Baalbek, Tourbul-Qosaya, and Deir el Moukhaless-Jleiliyeh, according to a United Nations Industrial Development Organization (UNIDO) study. The Italian Government provided an $8 million loan for the project.

UNIDO has completed the data collection phase needed to execute the techno-economic feasibility studies and design master plans for the three prospective industrial cities.
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Two more programs by UK Lebanon Tech Hub. Pilot phase to precede March 2017 launch

Two programs by UK Lebanon Tech Hub are expected to be launched in March 2017. The programs target supporting research and development (R&D), and opening up new markets.

Last month, UK Tech Hub was recognized by Lebanon Opportunities by winning the 'Cutting Edge Entrepreneurship Program of the Year' award.

The programs will run with the support of Central Bank (BDL).

Nadim Zaazaa, MENA and US Director of UK Lebanon Tech Hub, said that the first is an international R&D prog...

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Moody’s: President good for credit if reforms follow. IIF revises GDP growth forecast to 3.3 percent

The rating agency Moody's said the election of a new President would be positive for Sovereign debt if it was followed by cross-party agreements on economic and fiscal reforms.

"[The presidential election] is also likely to strengthen the confidence of non-resident depositors in Lebanon's long-term economic prospects," the credit rating agency said in a report published today.

Political stability is expected to limit the recent deceleration in the growth rate of non-resident deposi...

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Accelerator for social entrepreneurship by AltCity and UNICEF.

Elevate, a new accelerator by AltCity in partnership with UNICEF, is in the launching phase.

AltCity is a local accelerator which offers startup funding, mentorship, and exposure.

Rachelle Boumelhem of AltCity, said: "We are seeking startups that have ideas that tackle social problems."

Elevate aims at supporting and launching social companies working on enterprise solutions related to core UNICEF programs, which are: Water, Sanitation and Hygiene (WASH), health and nutritio...

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Second hotel by Philippe Tabet in Tyre.

Philippe Tabet, owner of Dar Alma boutique hotel on Tyre seaside, plans to open another boutique hotel in the southern city's old souks in April 2017.

It will be developed at a cost of $1.5 million.

"The success witnessed at Dar Alma pushed me to expand, especially that there is large demand for high end guesthouses and boutique hotels," said Tabet. He said that Dar Alma activated tourism in the city as the concept is becoming very trendy.

For the new project, Tabet is re...

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Ferrari sales increase by 20 percent. Ferrari sales increase by 20 percent

Sales of Ferrari automobiles will be increasing 20 percent this year compared to 2015, according to Gilberto Medici, General Manager of Scuderia Lebanon, sole agent of Ferrari.

Hassan Haidar, owner of Scuderia, said: "We predict sales to increase to 25 percent in 2017."

The auto importer introduced to the local market last month the Ferrari GTC4Lusso. The GTC4Lusso has a V12 engine, four seats, and is a four-wheel drive. Its cost is $350,000 including taxes. "We sold four already,"...

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Agri-food exports to Europe surged 17 percent. Gain on Syria’s share

Exports of agro-food goods to the European Union (EU) increased 17 percent in the first half of the year reaching €58 million ($65 million), compared to the same period last year, according to the 'Strengthening EU-Lebanon Trade and Investment Relations' report issued by the EU.

Agro-food exports to EU reached €86 million ($100 million) last year, almost 60 percent up from 2010.

Mounir Bissat, Secretary General of the Syndicate of Lebanese Food Industries, said: "Industrialists t...

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More funds available to innovative startups.

The Central Bank (BDL) announced that banks are now allowed to dedicate to the creative and knowledge sector, according to Circular 331, four percent of their capital. This is compared to three percent previously.

Riad Salameh, Governor of the Central Bank, said that the purpose of the BDL initiative is to build a sector that will create employment opportunities. "It will foster efficiency and competitiveness within the economy," he said.

Reported by Derek Issaacs...

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Balance of payments surplus for the first time since 2011. Financial inflows surge 37 percent

The net surplus in the balance of payments for the first eight months of 2016 was $366 million. This was the result of a 37 percent jump in financial inflows that have offset a ten percent widening in trade deficit. Financial inflows surged to $11.2 billion in the first eight months of 2016 from $8.2 billion in the same period last year.

The balance of payments recorded a substantial surplus of $1.8 billion in August resulting from the financial engineering operation of the Central Bank ...

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Electric scooters for rent in 2017. Scooter rollout date expected summer 2017

Berytech Fund II has invested $1.3 million in Loop, a local operator of electric scooters. A trial operation of 55 scooters has begun in Beirut. It is the first of its kind worldwide for this brand.

The investment funds will be used toward the trials before the scooters rollout date, which is expected before summer 2017.

Loop scooters will provide a self-service riding scheme for city-wide journeys. The vehicles will be available for rent by commuters and leisure seekers.

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$7 million investment for hotel in Ain Raha.

An estimated $7 million will be invested into a 54-room hotel in Ail el Raha, Tannourine. The hotel is owned by Cascada Village proprietor Maurice Torbey and will open in July, 2017.

The hotel will be located on a 30 square meter (m2) plot of land and comply to environmental standards. It will house a spa and sports' club, and will include a restaurant serving Lebanese cuisine.

Torbay also owns Cascada Village in Venezuela and other countries....

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Mecanica agent for PGO, Humvee, SAIPA. To open showroom in December

Newly-established car distributor Mecanica Group has become the local agent for Humvee, PGO, and SAIPA vehicles.

Mecanica Group, founded by Boutros Frem five months ago, plans to open its showroom on Jbeil highway in December.

"The nine-floor showroom will have a total area of 9,000 square meters (m2)," said Majed Khoury, the company's General Manager.

Mecanica's focus will be on SAIPA, due to its low purchase price in comparison to the two other brands. The price range fo...

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ICT sector grows to $436 million. Software market up 18 percent

The information and communication technology (ICT) market is expected to grow to $436.2 million in 2016, up 14 percent compared with 2014, according to a recent report published by the Investment Development Authority of Lebanon.

The report, 'Investment Opportunities in the ICT Sector-2016', shows that hardware sales are estimated to have grown 12 percent to $262 million during the period 2014-2016. Hardware sales account for 60 percent of the ICT market, down from 62 percent in 2014.
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