Iskan loans interest lowered to 3.28 percent.

The Public Corporation for Housing (PCH) – better known as Iskan – in cooperation with the Central Bank and the Association of Lebanese Banks, has lowered its interest rates around 35 percent, from 5.07 percent to 3.28 percent.

Rony Lahoud, Director General of the PCH, said: "The decision will include both new and old applicants."

For instance, those who borrowed LL270 million ($180,000) repaid LL360 million ($240,000), but according the new rates, they will repay only LL330 mill...

Article details

Inbound travel deals launched by Ministry. Prices: $330 to $450 ticket and four-day accommodation

The Ministry of Tourism will offer in March package deals for visitors traveling from Egypt, Kuwait, Jordan, Saudi Arabia, Qatar, UAE, Iraq, and Armenia. The packages will be valid for three months.

"This is to encourage tourism during low season," said Avedis Guidanian, Minister of Tourism.

The packages will be provided at $330-$450. It will include the cost of the ticket through Middle East Airlines, three-day accommodation in four star hotels, including breakfast, and airport ...

Article details

Lebanon Seed Fund launched by Flat6labs. Investments range $30,000 to $500,000 each

Flat6Labs Beirut announced the launch of Lebanon Seed Fund (LSF), a $20 million early stage fund aimed at supporting 100 local startups over the next five years.

Startups taking part in the seed stage program will receive $30,000-$50,000 in investment. They will go through a 16-week mentorship program. Early stage startups will receive $100,000 to $500,000, as well as access to Flat6Labs Beirut's resources and operational guidance to scale.

The program is in partnership with ArabN...

Article details

Soliver factory is to close down. High energy costs rendered products non competitive

Soliver, manufacturer of glass containers, will shut down its factory in Bchamoun within the next two months.

Omar Kaddoura, General Manager of Soliver, said: "The reason behind the closure is because we are losing our market share."

He said that the investments required for upgrading machines is $30 million. The life cycle of glass industry machines is six years, and it is now time to upgrade them.

"We preferred not to invest such amounts," he said.

The energy-in...

Article details

Britain to fund research for agri-sensors.

The British Embassy in Lebanon allocated £2.5 million ($3.1 million) to build an international research center located at the UK Lebanon Tech Hub.

British Ambassador Hugo Shorter said: "The project will support cooperation between Lebanese universities, the technology sector and British universities."

He said that the center aims to cooperate with international institutions to conduct research and develop new solutions in the technology sector.

The center will implement t...

Article details

ICT export program is launched by IDAL. Business support unit and tax incentive initiatives

The Investment Development Authority of Lebanon (IDAL) announced at Arabnet Beirut 2017 the launching of an ICT export program.

The program includes sponsorship of tech startups to enable them to attend international fairs. It also includes the launch of a marketing campaign to promote Lebanon as an ICT destination.

IDAL has also launched a 'Business Support Unit.' The Unit has three goals: To offer startups legal, auditing, and tax advice.

It also created a draft law where...

Article details

Cement deliveries up four percent.

Cement deliveries totaled 5.3 million tons last year, a four percent increase compared to 2015, according to figures published by the Central Bank (BDL).

Cement deliveries reached 5.5 million tons in 2014, and 5.8 million tons in 2013.

Adib Hashem, Commercial Director of Cimenterie Nationale, said that the Ministry of Interior allowed municipalities to grant licenses permitting to build an additional floor. This led to improved demand and reactivated construction activity. Dry weat...

Article details

Syrian refugees consume the equivalent of one power plant. Additional electricity demand covered by power barges

Displaced Syrian families consume 486 megawatts (MW) of electricity per year, an equivalent of five hours a day or $333 million per year, according to The Impact of the Syrian Crisis on the Power Sector and Priority Recommendations report. The report was prepared by the Ministry of Energy and Water and UN Development Programme (UNDP). It was funded by the Netherlands.

Luca Renda, UNDP Lebanon Representative, said: "The impact was highest near hospitals, which were forced to rely more on d...

Article details

French loan for educational facilities.

A loan agreement with the Agence Française de Développement (AFD) for the construction of the Higher Institute for Applied and Economic Sciences (CNAM) and a training center for teachers (Dar al Moallem) has been approved.

The loan, valued at €21 million ($22 million), aims to support the training mechanism of teachers. It includes technical studies and the construction of the 21,000 square meter (m2) premises. About 6,000 m2 will be dedicated for the construction of CNAM, ...

Article details

Batroun mall in Kfaraabida next year. Includes 190 rented stores, as well as rooftop restaurants

Abi Daher Group is developing a covered mini-mall on the coastal road near Kfaraabida, two kilometers south of Batroun. The mall will occupy an 8,500 square meter (m2) plot.

The mall is already under construction and is expected to be delivered in mid-2018. It will include two blocks with a total of 190 outlets – 110 in the first block, and 80 in the second. The outlets will mainly be retail, except for the rooftop where food and beverage outlets will be located. Outside parking will be a...

Article details

Bank assets four times GDP. Deposits up seven percent, loans three percent

The consolidated balance sheet of commercial banks shows that total assets reached $204 billion at the end of 2016, up ten percent compared to the year before. This is almost four times GDP.

Amine Awad, Advisor to the Chairman of BLOM Bank, said: "Banks were able to attract deposits from abroad that are short to medium term. This has led to an increase in assets."

The value of resident and non-resident deposits grew seven percent to $162 billion. Awad said that the growth of depos...

Article details

Hussein Hadid partners in home-cooking diner concept. Par Contre looks to the Gulf for franchising

Par Contre, owner of the food and beverage (F&B) brands BRGR.CO, PZZA.CO, and DELI.CO, will open a home-cooking concept. The concept will be in partnership with renowned chef Hussein Hadid, who is also a shareholder of Par Contre.

Located in Beirut Souks, the yet-to-be-named venue will have a 90-person capacity.

"After experiencing the market in the souks, we found that there is large demand for home-cooked food from office workers," Karim Chebaklo, CEO of Par Contre, said.

Article details

The $1 billion pharma market keeps on growing. Local products represent 21 percent of those registered

The pharmaceutical market increased four percent last year reaching $1.1 billion compared to 2015, according to the Lebanese Pharmaceuticals Importers Association (LPIA).

The unit of measurement of pharmaceutical market is the Net Selling Price to market.

Pharmacies had an $838 million share, (up from $802 million), hospitals $159 million, and public institutions $110 million.

According to Customs, Germany was the first source of pharmaceutical imports ($190 million), follo...

Article details

Pasta factory by Daher Foods. To use 40,000 tons of local wheat

Daher Foods, manufacturer of Master potato chips, is planning to open a 15,000-square-meter pasta factory in Ferzol. Construction will be launched in mid-summer and is expected to be completed within one year. Investment in the project is $18 million.

The machines and technical knowhow will be imported from Italy.

Michel Daher, group Chairman, said that 40,000 tons of wheat will be used annually to produce 27,000 tons of pasta. This is equivalent to local pasta consumption.

Article details

Public debt: $75 billion!. Just 37 percent of debt is in foreign currencies

Gross public debt reached $74.9 billion at end of 2016, a 6.4 percent increase on the previous year. It had grown 5.7 percent in 2015.

Net public debt reached $65.4 billion recording 6.2 percent increase compared to 2015.

Damianos Kattar, Former Minister of Finance, said: "The absence of a public budget has contributed to excesses in expenditures."

The primary surplus (Revenues minus expenditures excluding debt servicing) was $1.2 billion, well below the $4.4 billion needed ...

Article details

IMF calls to boost revenues from VAT. Four percent of GDP in additional receipts can be achieved

Stronger VAT yields could be generated via higher rates, a broader base, and improved collections. Although Lebanon's VAT rate is among the lowest in the region, the authorities have in the past expressed a strong preference for not increasing it on political and social grounds.

A 'Special Issues' paper on Lebanon published by the International Monetary Fund (IMF) shows that there is significant potential – under the current VAT rate – to boost VAT collections by leveraging the tax base,...

Article details

Economy to grow at four percent rate. Bank Audi forecasts doubling rate of increase in GDP this year

Bank Audi has estimated GDP growth will reach four percent in 2017. "This is more than double the average it reported in the past six years (1.8 percent)," Bank Audi stated in its fourth quarter 'Lebanon Economic Report.'

The GDP increase would drive 15 percent growth in private investment and a seven percent growth in private consumption within the context of an 18 percent growth in financial inflows, benefiting banking activity at large.

"Private investment had seen a 'wait-and-s...

Article details

Ain Wazein Medical Village plans a $20 million expansion.

Ain Wazein Medical Village announced it will launch specialized centers in the Chouf area.

The plan will increase the total built-up area of the hospital from 27,000 square meters (m2) to 42,000.

Investment in the project is estimated at $20 million. Funds will be raised from donations, loans, and internally.

The plan comprises building two geriatric medical centers in addition to the two existing ones, to provide fully integrated services including surgeries for the elder...

Article details

Jacques Saadé appoints son CEO of CMA CGM shipping. Rodolph Saadé groomed to take over group

Jacques Saadé announced, on this 80th birthday, that he is to step down as Chief Executive Officer (CEO) of the CMA CGM Group conglomerate in favor of his eldest son Rodolphe. Jacques Saadé remains Chairman of the Board of Directors.

CMA CGM is the world's third largest containership operator, with a fleet of 454 ships (109 owned and 345 chartered) with a total capacity of 2.1 million TEU fleet, according to Alphaliner statistics. The company was founded in Marseilles by...

Article details

Visitor arrivals grows 11 percent. Europeans surpass the number of Arab nationals

The total number of visitors reached 1.7 million last year, increasing 11 percent compared to 2015, according to the Ministry of Tourism (MoT).

"The country has regained trust after the positive political and security developments," said Nada Sardouk, Director General at the MoT.

Europe was the main source of visitors last year (564,499) recording 12 percent increase compared to 2015. French visitors topped the list of Europeans (134,181) increasing nine percent, followed by Ger...

Article details

Third mall, more Carrefour planned by Majid al Futtaim. To hire at least 1,000 more employees

Out of the $2 billion earmarked for projects in Lebanon since 2009, Majid al Futtaim has still to invest $1.1 billion. The new investments will include developing a new mall.

Alain Bejjani, CEO of the group, said: "The third mall will be in the immediate suburbs of Beirut."

Majid Al Futtaim already operates Beirut City Centre, a mall in Hazmieh, with another planned for Waterfront City in Dbayeh.

Majid Al Futtaim is also the developer of Waterfront City, Carrefour, VOX ci...

Article details

$200 million for roads from the World Bank. Funds to repair 500 km in first phase

The World Bank Group has allocated $200 million for upgrading the road network.

The funds will be used to repair around 500 kilometers of roads in a first phase of a $510 million government plan to revamp the country's road sector.

The funds include a $45 million grant from the Bank-administered Concessional Financing Facility (CFF), which is a facility created in 2016 to support middle-income countries that were recipients of regular Bank financing, but are currently experiencing...

Article details

Imports up, Exports stable. Trade deficit increases four percent

The trade deficit, the resultant of exports of goods minus imports, widened four percent last year, reaching $15.7 billion, according to the Customs.

The deficit increase was triggered by a growth in imports (3.5 percent) higher than that of exports (0.8 percent). 'Real exports,' which excludes mineral products (oil transferred to Syria) and precious stones, dropped 14 percent.

Alia Abbas, Director General at the Ministry of Economy and Trade, said: "Production didn't rise in para...

Article details

Tax collection half its economic potential. IMF suggests myriad of additional and increased taxes

Tax collection is weak. It has been driving a drop in public revenues since 2010, and remains below the regional average, according to the International Monetary Fund's recent report, 'Article IV consultation for Lebanon.' It said that tax collection is only 50 percent of estimated capacity.

A weakness in electronic tax declaration system and staff numbers, among others, was cited as reasons behind the deficiency in total tax revenues.

"Tax administration increased by 120 staff me...

Article details

Lebanese firms, nationals in recent U.S. Iran sanctions. Allegedly associated with missile program

Two Lebanese individuals and four companies (some of which are associated with the said individuals) are included in new sanctions against Iran announced by the United States on Friday. The targeted entities were allegedly associated with Iran's missile program and a network accused of providing cash transfers to Hezbollah.

Those sanctioned include:
Yehya Hajj
Mohamed Abdul Amir Farhat
Maher Trading and Construction (Hassan Ibrahimi, Yehia Issa Mohamed Hajj, Ahmad Hassan Man...

Article details

O Monot Suites to launch by Achkar Real Estate. $22 million investment for 45 apartments

Achkar Real Estates, owner of O Monot Boutique Hotel, is planning to open O Monot Suites, a furnished apartment project adjacent to the hotel in Monot Street, Saifi.

Investment in the project is estimated at $22 million including the cost of the land. Construction works are expected to start in early 2019.

Ghazi Achkar, Chairman of Achkar Real Estates, said that he purchased the land five years ago with a cost of $8 million.

The project will comprise 22 floors, with a tot...

Article details

Five star hotels gain higher occupancy. Decrease in room rates

The average occupancy rate at Beirut hotels rose one point to 59 percent last year compared to 2015, according to Ernst and Young's 'Benchmark Survey of the Hotel Sector in the Middle East' on the performance of four and five star hotels.

E&Y reported that the average room rate decreased by 15 percent in 2016 reaching $138. The room yield dropped 13 percent to $82.

Beirut Occupancy rates increased although the number of tourists recorded 11 percent increase last year compared to ...

Article details

Fayez Rasamny acquires more shares in RYMCO. Value of acquisition is $9.6 million

Local firm Shift sal Holding has acquired the shares of Kuwaiti firm Mohamad Abdul Mohsen al Kharafi and Sons at Rasamny Younis Motor Company (RYMCO), the exclusive dealer of Nissan, Infiniti, and other car brands.

Shift, whose main shareholder is Fayez Rasamny, bought 3.1 million Class B shares at a value of $9.6 million. Rasamny is also chairman of RYMCO. He currently owns around six percent of the shares.

The purchased shares represent 38.07 percent of total shares of RYMCO. The...

Article details