Sofar Grand Hotel Casino to undergo major restoration. Gradual process until destiny is decided

Roderick Sursock Cochrane, the son of Lady Yvonne Cochrane, is restoring the Grand Hotel Casino Ain Sofar. The hotel sits on a 28,000 square meter plot and is valued at $14 million.

Built in the 1890s by Alfred and Ibrahim Sursock, Roderick owns half of the property and five female cousins who are descendants of Ibrahim own the remaining half.

The Grand Hotel Casino Ain Sofar is one of the oldest hotels in the country. Owning the first casino license in the country, the hotel becam...

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BSL provides zero percent housing loan. Requirements: Prepayment to the bank, standing orders

BSL Bank has launched a housing loan with zero percent cost to the borrower.

Charbel Watfa, Financial Controller at the bank, said: "Customers will be required to make a prepayment of 17.5 percent of the loan if the term is 30 years, and 20 percent if 25 years. They should also open a current account at BSL, and pay bills by standing order."

Watfa said that like all banks, clients are obliged to pay the property owner 25 percent of the property's price as a down payment.

T...

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Beirut Airport implements Trump’s 7-country travel ban. Directorate of Civil Aviation not formally notified yet

Airlines operating out of Beirut Rafic Hariri International Airport, including Middle East Airlines (MEA), have started implementing the travel ban imposed on seven Arab countries by the U.S.

President Donald Trump has signed an executive order banning travel on citizens of Syria, Iran, Iraq, Libya, Somalia, Sudan, and Yemen. The order, which will run for 90 days, also includes green-card holders. The order allows the Department of Homeland Security in the U.S. to ban more countries at an...

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Real exports down 14 percent last year. Iraq’s stricter constraints led to drastic decrease

Industrial and agricultural 'real' exports decreased 14 percent last year, compared to 2015, registering $2.1 billion, according to figures published by Customs.

The 'Real' export figures exclude pearls and precious stones, which registered $828 million compared to $434 million last year. It also exclude mineral products (mostly oil products, mainly re-exported to Syria), which decreased to $19 million from $30 million in the previous year.

Exports also decreased 14 percent in ter...

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Oil & gas second round of prequalification now open. Five blocks up for bids

The Ministry of Energy and Water (MoEW) announced it will open a second prequalification round for interested oil and gas companies. Companies that were prequalified in the first round will not be dismissed and will rather compete with the new companies.

"We are opening five blocks for bidding but eventually only four will be awarded," said MoEW Minister Cesar Abi Khalil said. He said that prequalification had to be open for a second round because it has been a very long time since the f...

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Consumer Price Index increases three percent. Rent, energy, clothing drive growth

The Consumer Price Index (CPI) rose three percent in December 2016 to 98.93 from 95.92 in the previous year, according to the Central Administration of Statistics (CAS).

During this period, the price index of clothing and footwear registered the largest increase at 10.4 percent. According to Beirut Trade Association, the increase in this category was recorded in September, October, and December. Consumption revived during these months due to consumer confidence in the economy after elect...

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$240 million budget at the Municipality of Beirut. Council will take over the garbage issue

The Municipality of Beirut has earmarked $240 million for its budget for 2017. About 50 percent of this will be spent to operational costs and salaries. The remaining will be used to start and complete infrastructure projects.

Mohammad Said Fatha, member of the Municipal Board, said: "One of the most important issues we will handle is the collection, sweeping, and transport of waste."

The municipality will hold a tender for interested companies. The contract will either be a build...

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USJ opens University for All in Jbeil.

Université Saint-Joseph (USJ) will open a branch of the University for All in the Young Women's Christian Association (YWCA) in Jbeil.

Managed by Gerard Bejjani, University for All will offer courses in art, culture, literature, human and social sciences, informative technology, and languages.

Candidates should be French-speakers in order to enroll on any of the 12 courses, which will run for six months. The entire 12 courses are certified and will cost $280.

No fi...

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Construction of U.S. Embassy to begin. 2023 delivery date expected

Alabama-based B.L. Harbert has won a tender for the construction of the new U.S. Embassy in Awkar. Permission has been granted by the Government for the work to commence.

The embassy will be built over an area of 174,000 square meters at a cost of around $1 billion. It is expected to be ready for occupancy in 2023.

The U.S. State Department said: "The multi-building complex will include a Chancery, a Marine Security Guard Residence, representational and staff housing, facilities f...

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$83 million surplus in NSSF’s 2016 budget. Increase in subscribers, decrease in pharmaceutical prices

The National Social Security Fund (NSSF) achieved a surplus of $83 million in 2016, up 85 percent compared to 2015.

Revenues from the family compensation fund reached $303 million last year, increasing 3.6 compared to 2015. Expenditures on this department reached $240 million registering four percent increase compared to 2015.

Surplus in this fund reached $60 million, increasing 6.5 percent compared to the year 2015.

Revenues from the sick and maternity fund were $760 mill...

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Construction permits increase in numbers. Mount Lebanon acquires largest share

The number of construction permits rose 13 percent in 2016 to 17,295, covering 12.3 million square meters (m2) – unchanged from 2015. The average area per permit is 707 m2, down 13 percent.

Beirut saw the sharpest decline in area and number of permits. Negative growth was also recorded in Mount-Lebanon, which has the lion share of permits.

The highest growth in terms of area was recorded by Bekaa, followed by the South. The area of permits also went up in the North and Nabatieh.
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Property sales rise in number and value. Beirut has highest growth rate in number of transactions

Recorded real estate sales transactions increased in 2016. According to the Real Estate Registry at the Ministry of Finance, the number of transactions increased one percent to around 64,600 compared to the previous year. The total value of sales transactions rose six percent to $8.5 billion. This brings the average value per transaction to $132,000, up two percent.

Five out of the eight cadastral areas witnessed a growth in the number and value of transactions.

Metn and Kesrouan c...

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Health coverage law for retired NSSF subscribers. Retired employees to continue paying nine percent of the minimum wage

The Parliament has enacted the health coverage law for the National Social Security Fund (NSSF) for retirees over the age of 64.

Walid Khoury, Member of the Parliamentary Committee for Health, said that the law will be referred to the Council of Ministers to issue the related executive decrees.

The law stipulates that NSSF retirees will continue to benefit from 20 years of health coverage after the age of 64. The family of those covered will also benefit even if the insured perso...

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Rental law modified by Parliament. Changes to fund’s legal structure, includes more beneficiaries

Parliament has ratified modifications to the rental law. The original rental law went into force in 2014.

The ratification has produced two main modifications: The fair lease value of apartments has been reduced from five to four percent of an apartment's value. The second one relates to the legal structure of the assistance fund that subsidizes old rent tenants by paying the difference between the old and new rental cost.

Adib Zakhour, Head of the Committee appealing the rent law...

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Right of access to public information granted. Administrative documents free of charge

The Parliament ratified a 26-article law on the public right to the access of information.

The law stipulates that every individual, natural or legal, has the right to access information and documents available at administrations, as long as the right is not abused.

Administrations are defined by the law as State and public administrations, public institutions, independent administrative authorities, courts and legal councils (except for religious courts), municipalities and munic...

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Beirut Port revenues drop six percent. Regional transshipment suffered from security issues

Port of Beirut (PoB) and Port of Tripoli (PoT), have made $254 million in revenues in 2016, constituting a six percent decrease from the previous year for POB.

According to the latest PoB statistics, transshipment has fallen 12 percent to 292,000 TEUs (twenty-foot equivalent containers).

Elie Zakhour, Chairman of the International Chamber of Navigation, said: "The countries for which we are a transshipment hub, like Syria, Turkey, and Greece, continue to witness either economic o...

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Lebanese-Dutch agriculture joint venture. Includes grafted vegetables and hydroponics

Agrigrow, a subsidiary of Batroun-based Robinson Agri, will launch in April, also in Batroun. It will develop a 17 hectares vegetable grafting site in a joint venture with Dutch agriculture company, Grow Group.

Nadine El Khoury Kadi, Chief Operations Officer, said that $800,000 has been invested so far, $600,000 of which is self-funded. A $200,000 Kafalat guaranteed loan was secured to make up the shortfall.

El Khoury Kadi said: "The vegetable seeds will be imported from the Neth...

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Hotel occupancy rates drop to 40 percent in Beirut. Slight increase in revenues and cuts in payroll, overheads

Average occupancy rates in Beirut hotels dropped to 40 percent last year, according to the Syndicate of Hotel Owners.

Prices per room since that date have dropped around 40 percent from 2009 – when occupancy peaked at 70 percent.

Pierre Achkar, Chairman of the Syndicate, said: "Hotels, especially four star and below, are registering losses."

According to UK-based hospitality intelligence agency Hotstats, hotels in Beirut slashed costs, and achieved a 0.3 percent increase i...

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$5.3 million fund toward Bekaa and Litani water projects.

The Dutch government has invested €5 million (around $5.3 million) to support the Bekaa Water Establishment (BWE) and the litani River Association (LRA). The funds will also be used for mapping the country's entire natural reservoirs, according to Marc Zeeny, Economic & Commercial Attaché at the Dutch Embassy.

Zeeny said an independent Dutch Water Expert Office will open within a Government facility in Beirut in two weeks' time.

Experts from the office will support the BWE ...

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Kuwait Medical Center to open in Akkar.

Kuwait Medical Center is expected to open in Ramah, Akkar in late 2017. The hospital will provide all medical services, including surgeries.

Around $4 million will be invested to build and equip the hospital. A Kuwaiti association granted $1 million. Around $2.5 million will be provided by the government through the Higher Commission for Relief to complete and equip the hospital.

The four-floor hospital will have a total built-up area of 2,500 square meters (m2). There will be 90...

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New car sales drop eight percent. First decrease in seven years

Car sales dropped eight percent in 2016 to 36,325 vehicles, according to the Automobile Importers Association (AIA), almost the same number as in 2013. It is the first yearly drop since 2009. In 2015, sales reached record levels, after recording a four percent increase.

The largest drop was in Japanese cars which decreased to 12,445 (minus 11 percent), followed by a seven percent drop in European cars to 7,557. The market for new American cars increased 15 percent to 2,603, compared to 2...

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Casino du Liban to tap online gambling and gaming. Minimum of $15 million needed in investment

Casino du Liban, a gaming and entertainment establishment, aims to launch an online gaming platform. The venture will be in partnership with an international company. A tender has been launched with a deadline of January 19 to submit the proposals.

The winning bid will be required to introduce and manage the online presence in all forms of gaming and sports betting. The bidder should also have experience in the online gaming field.

The terms of reference states that bidders "shou...

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$7-million factory extension by Zeenni Steel.

Zeenni Steel, a manufacturer of structure steel and tubes, will introduce a new line of nails, coat hangers, and mesh fencing. The line will be produced in the factory's extension which is due to open in Bchamoun this coming summer. Investment in the project is estimated at $7 million.

The facility will have a total built-up area of 3,000 square meters (m2).

Production rates will reach 3,000 tons per year for nails, two million coat hangers yearly, and 3,000 tons per year of mesh ...

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BSEC issues first securitization fund in lira.

Bemo Securitisation (BSEC) has closed a securitization fund, valued at 16 billion Lebanese liras ($10.6 million), which was issued for Rasamny Younis Motor Co. (RYMCO). The fund, called RYMCO Drive IV SIF, is the first lira-denominated securitization fund launched on the local market.

BSEC said in a statement. "The decision to have the issuance denominated in liras is a response to the excess LL liquidity we recently noticed on the market."

"The issuance has been well percei...

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BSE trading volume up 60 percent in 2016. Good prospects for the year ahead

The performance of the Beirut Stock Exchange (BSE) significantly improved in 2016. This was due to increased trading activity in the fourth quarter in parallel to the positive political developments at that time.

Volume surged 120 million traded shares, 61 percent, in the whole of 2016 compared with 2015, according to the Weekly Market Watch report by Credit Libanais. The value of traded stocks jumped 54 percent to reach $972 million.

Trading activity – mainly of banking stocks – r...

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$2.8 billion needed for Syrian refugees. Taskforce includes public sector, donors, NGOs

Ministry of Social Affairs (MSA) is preparing to launch the Lebanon Crisis Response Plan 2017-2020. A joint task force was formed including MSA, international organizations, donor country representatives, and a select number of NGOs. The plan has assessed that requirements for the plan will cost $2.8 billion in 2017 alone.

LCRP 2017-2020 has yet to be announced. It will be launched along with a financial tracking system separate from that of the UN.

The plan is divided into ten sec...

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Berytech launches Agri-food incubator. Aimed at engineering, agricultural, and ICT graduates

Agrytech, a smart agri-food tech hub, is being launched by Berytech. It is the first of its kind in the local market. The program is jointly funded with the Embassy of the Netherlands.

The program aims to target agro-engineering, agricultural, and ICT university graduates to come up with tech innovations that challenge, among other applications, food security and water shortages in the agriculture sector, as well as helping to evolve practices across the agricultural value chain. The Ne...

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Tourists spending down nine percent. Decrease attributed to visitors’ lower purchasing power

Tourist expenditure dropped nine percent during the last year compared to 2015, according to Global Blue's report: Insights into Tourist Spending Q4 2016. The report accounts for VAT refunds that occur at Beirut Rafic Hariri International Airport and other borders. Saudi tourists spending dropped 17 percent, Emiratis ten percent, and Kuwaitis eight percent.

Saudi tourists represented 33 percent of the total number of spenders, followed by Kuwaitis at 14 percent, and Emirati's at 13 perce...

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Total reserves represent 90 percent of lira money supply. Value of Gross FX reserves up ten percent and gold nine percent

The Central Bank (BDL) reserves in foreign currencies reached $40.71 billion at the end of last year, an increase of around ten percent from 2015.

Bank expert Joe Sarrouh said: "The main reason is the financial engineering adopted by BDL, and its effect on foreign deposits."

Sarrouh said: "Higher reserves ensure more confidence in the banking sector and more stability for the lira."

Gold reserves also increased nine percent at the end of 2016.

Total reserves (gold ...

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BSEC launches securitization for Dima Healthcare.

BEMO Securitization (BSEC) has launched a $16.2 million securitization investment fund for medical supplies and pharmaceuticals distributor Dima Healthcare. This is BSEC's second securitization investment fund for Dima Healthcare. The first one was valued at $13.9 million and was launched in February 2014.

The second fund, named DHC Healthcare 2 SIF, has issued $16.2 million against its trade receivables due from 60 hospitals and 12 healthcare providers (laboratories, clinics and institu...

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Riad Salameh: Lira is safe with me. “The confidence of the markets is what really matter,” he said

"The monetary situation will remain stable during the period I will be at the helm of the Central Bank," said Riad Salameh, Governor of the Central Bank. In a lengthy television interview with LBC's Marcel Ghanem on Thursday, the Governor predicted stability, and a positive financial year in 2017.

Qualifying the various challenges in 2016, he said: "It was a difficult journey."

He said: "Our intentions were put into doubt," [when the time came to implement measures meant to compl...

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Vehicle inspection waived before paying ‘Mechanic’ fees.

The Ministry of Interior issued a decision on January 5 that allows the collection of annual vehicle mechanic fees without submitting vehicles to the Motor Inspection Center (MIC). The overruling will end February 27.

The decision includes only the vehicle owners who are paying their mechanic fees for 2016, and who already submitted their vehicle to MIC in 2015.

Last year, Parliament issued a decree exempting those car owners who delayed paying mechanic fees from being fined, on...

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Housing Bank lowers its rates. Mortgage interest cut from five to three percent

Banque de l'Habitat, a housing loans specialist, has announced it has lowered its interest rates from five to three percent. Beneficiaries include loan applications that were accepted starting January 1, 2017.

Joseph Sassine, Chairman of the bank, said: "The objective is to provide low-to-middle income expats with better access to housing financing."

Sassine said that because of the low-interest facilities provided by the Central Bank (BDL), the bank's profit margins have risen, e...

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Lucid Investments gains banking license. To execute growth strategy in activities and scope

The final step to transform local financial company Lucid Investments into a licensed bank has been approved by the Central Bank (BDL). The corporation will now operate under the name of Lucid Investment Bank. The specialized bank has increased its capital to LL30 billion ($20 million). The approval follows BDL's keenness for a widening of funding solutions beyond the usual classic credit facilities provided by commercial banks.

Established in 2003, Lucid will continue its core business ...

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Kreidieh and Ayoubi appointed to telecom posts. Replacing Abdul Menhem Youssef

The Council of Ministers has appointed Bassel Al Ayoubi as Director General of investment and maintenance at the ministry of telecommunications, and Imad Kreidieh as Director General of OGERO.

The two appointments have ended the tenure of Abdul Menhem Youssef who held for many years the two posts concurrently.

Al Ayoubi was the 'Sales Engagement Manager' in the Middle East for Nokia Siemens Network for the past five years. His career in telecom began in 2000 in Yemen. Al Ayoubi hol...

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Oil and gas decrees approved. First licensing round can now take place

Two decrees related to the demarcation of maritime blocks and the contracts for the exploration and production (E&P) of oil and gas have been ratified by the Council of Ministers. Prequalified companies have been awaiting the decrees for more than three years. The number of prequalified international companies in the bidding process is 46, including 12 operators.

The ratification opens the way to the first licensing round for the prequalified companies. The first licensing round was adjou...

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Highest resort in the Middle East. $500 million residential and hotel in Kornet Sawda

A mixed-use touristic project called Al Kumma is being planned in Kornet Sawda in the North, at a 2,400 meter altitude. The developer is Realis Development, a project management company owned by the Ghanem family. They also own G One Group, a real estate developer. Investment in the six-phased project is $500 million.

Patrick Ghanem, Executive Manager of Realis Development, said around 30 percent of the project will be financed through bank loans. Another 30 percent will be raised through...

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