Central Bank to subsidize financing of industrial exports. Ceiling set at $2 million

The Central Bank (BDL) has decided to cut the reserve requirements of banks that provide soft loans to manufacturing companies that export at least 50 percent of their output.

The reserve requirements will be slashed by an amount equivalent to the total value of the loan's principal, according to BDL's intermediate circular 462.

The loan must be denominated in lira and be used to finance the company's working capital. Interest rates, fees, and all other expenses related to the loa...

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No new U.S. sanctions reported on banking sector. Banking and Parliamentary delegations return reassured

A delegation of banking sector representatives who recently visited the U.S. have succeeded in convincing American officials to shield local banks from the fallout of any potential financial sanctions on Hezbollah, according to the Chairman of the Association of Banks Joseph Torbey.

The delegation has met U.S. lawmakers involved in the new draft law that is under preparation and that includes a list of sanctions targeting Hezbollah and its associates. The officials that the delegation ha...

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Solidere to delist its GDRs from London Stock Exchange. Listing costs outweigh low trading volumes

Solidere said it has asked to delist its Global Depositary Receipts (GDRs) from the London Stock Exchange (LSE) effective June 29, 2017, due to low trading volumes.

Given the GDRs limited liquidity, the costs and administrative burdens are disproportionate to the benefits that could be derived from keeping them listed, the real estate company said in a statement.

The GDRs, which represent Solidere's 'A' shares, were listed on the LSE in 1996.

The 'A' shares will remain lis...

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NDU Koura campus ready to start courses. $17 million investment to increase student capacity to 3,000

Construction work at the Barsa campus of Notre Dame University (NDU) in Koura has been finalized. It will open in fall.

Father Samir Ghossoub, Director of the NDU North campus, said: "The number of students exceeds 800, so expanding was a must in order to increase enrollment numbers."

Student capacity on campus now is 3,000.

The total built-up area of the expansion is 20,000 square meters (m2), increasing the space of the campus to 30,000 m2. In addition to the existing ...

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Riad Salameh mandate renewed unanimously. Governor of the Central Bank for the fifth time

The Council of Ministers has unanimously reappointed for the fifth time Riad Salameh as Governor of the Central Bank (BDL). Governor since 1993, he was reappointed for a six-year term in 1999, 2005, and 2011.

Before his reappointment, Salameh was the world's second longest-serving central bank governor, following Uzbekistan.

Together with Parliament speaker Nabih Berri, they form the longest serving high level officials.

Many economists, businesspeople, and politicians ...

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EFG Hermes sells one more stake in Credit Libanais.

Egypt-based EFG Hermes announced it has sold an additional two percent in Credit Libanais as part of its decision to completely divest its 63.7 percent stake in the Lebanese bank.

Hermes, the largest listed investment bank in the Arab world, said that its remaining stake in Credit Libanais is 13.1 percent.

Hermes had granted an exclusive mandate to Credit Libanais Investment Bank (CLIB), a fully-owned unit of Credit Libanais, to sell its entire stake at $33 a share or a total of $4...

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French airline links Beirut to Orly. Low cost flights to start in September

Transavia France, a French low-cost airline partly owned by Air France, will start flights to Beirut Rafic Hariri International Airport (BRHIA) on September 4.

This is the third French airline to access the local market after Air France and Aigle Azur.

Transavia will operate three flights a week, on Mondays, Wednesdays, and Fridays.

Ticket prices start at €418 ($467).

The airline, which is based out of Paris-Orly Airport, is in direct competition with Aigle Azur, w...

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Shopping Park is coming to Tyr. First phases sees 120 shops

Work on the Sahely Souks Shopping Park is underway. The park is located on a 82,000 square meter plot in Abbassiyeh, at Tyr's northern entrance, and will eventually include a total of 600 outlets.

The project is divided into three phases. The first phase has a total built up area of 18,100 m² divided into 17 blocks and 120 outlets.

The opening of the first phase is scheduled by the end of June.

"All outlets in the first phase have been leased," said Hanadi Ghanem of Sahely ...

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Resto St. Nicolas cluster to include six brand names. Opening slated for October

Resto St. Nicolas, a food cluster concept, will open on October 5, in Ashrafieh. It is a joint venture between Venture Group, a hospitality concept development company owned by Marwan Ayoub and Rabih Saba, and the Sabbagha Development Company headed by Emile Sabbagha.

The project occupies a land of 2,000 square meters (m2), situated on Charles Malek Avenue. The total built-up area is around 6,000 m2. Investment in the project is around $6 million.

According to Sabbagha, the project...

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FFA Private Bank to launch $1 billion investment vehicle. To mostly target energy- related infrastructure projects

FFA Private Bank (FFA) is preparing to launch a structured investment vehicle (SIV) to channel investments to power generation and other infrastructure projects. The initial objective is to reach $1 billion of investments in the short-to-medium term, over two to three years, said Jean Riachi, the bank's chairman.

Solar, wind, and hydraulic power projects will be mostly targeted, as well as waste-to-energy projects and waste treatment projects. Most of the large projects will, in principl...

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Emirati Mohamad Alabbar acquires large stake in MEVP. Non-controlling share is less than 50 percent

Emirati Mohamad Alabbar, founder of Emaar Properties, has acquired a stake in Middle East Venture Partners (MEVP). Alabbar's acquisition is just under 50 percent.

"Alabbar had been looking for a VC partner who knows the technology ecosystem and approached us," the company said.

The VC firm has $120 million in assets spread over four funds, two locally, and two regionally.

MEVP and AlAbbar plan to invest in a new fund that will be launched here and regionally later this ye...

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Le Mall to open Jbeil property in 2019. In partnership with the Hawat family

The existing Byblos Burgundy Mall, a concept developed by Hawat Investment, will be rebranded to become Le Mall, according to Georges Kamal, CEO of Acres Development, the company behind the Le Mall chain.

Acres Development has entered into a partnership agreement with the Hawat family to redevelop the property. Hawat Investment is made up of brothers Nabil and Ziad, who is also the Jbeil Mayor.

The investment value is around $50 million.

The present design will be revamped ...

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Hotel average rate same as 20 years ago.

The 2016 average room rate in Beirut hotels was the same level as that in 1996, which was $166. Significant changes however had been registered over the years with rates reaching their peak of $281 in 2009. Both figures were stated in the recent report: '2017 Middle East hotel survey – Chaos consolidation and opportunity' by HVS, a global hotel consulting firm.

Pierre Achkar, Chairman of the Syndicate of Hotel Owners, said: "Rates should have at least doubled during this 20-year period,"...

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Five industrial zones, over five million square meters. Located in Mtein, Zrarieh, Qaa, Jezzine, Bsarma

The Ministry of Industry (MoI) has chosen five locations in different regions in which to build industrial zones.

Dany Gedeon, Director General of MoI, said: "The ministry is cooperating with the Unions of Municipalities for the projects. It requested the documents, maps, and paper works to do the initial master plans."

Gedeon said that the ministry will send a team of engineers to where the sites are located in Mtein, Zrarieh, Qaa, Jezzine, and Bsarma to study the possibility of...

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Convention on international assistance in tax matters.

The government recently signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.

"It is the most powerful instrument for international tax cooperation," the Organization of Economic Cooperation and Development (OECD) said in a statement.

The pact involves different kinds of administrative assistance in tax matters. These include exchange of information on request, spontaneous exchange, automatic exchange, tax examinations abroad, simultaneous tax exam...

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Plans for opera house and new conservatory. China and Oman solicited for support

The Ministry of Culture (MoC) is seeking funds and land to develop an opera house.

Saleh Farroukh, advisor to the MoC, said: "The Sultanate of Oman is interested in developing a cultural center in Beirut."

The MoC has proposed to Oman to turn the center into an opera house.

"Negotiations are underway," he said.

According to Farroukh, the opera house will be located in Beirut and would cost at least $50-$70 million.

In order to achieve another major project, T...

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Centrepoint coming to Tripoli, Max to Saida. $15 million invested in next two years

Landmark Group, the owner of lifestyle and fashion brands Centrepoint, Max, and Home Centre, plans to expand its presence in the local market, according to Dinesh Maurya, Territory Head at the group.

The group is opening a Centrepoint outlet in Tripoli. The 25,000-square-meter space will be a standalone unit.

Maurya said: "We have just started working on the land, which will be ready in around eight months."

Centrepoint also opened a 3,000 m2 outlet today at The Spot Choueif...

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Export subsidy program renewed. IDAL asked to add Iraq to export destinations

The Council of Ministers extended for an additional year the maritime transport export subsidy program managed through Investment Development Authority (IDAL).

The $14 million program expired in March. IDAL is the public entity responsible for the disbursement process.

Exporters use the program to send their products through two ports, Aqaba in Jordan, and Duba, in Saudi Arabia. IDAL requested adding Iraq to export destinations.

A year after the export program was approved,...

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Carrefour to open store at City Mall. Operations start in September

Carrefour, a French supermarket chain franchised by Majid Al Futtaim, is set to open in September a branch at City Mall, Dora. Located on the ground floor, the store will have a total space of 7,000 square meters (m2).

This is the second branch in the market.

Carrefour will fill the gap left by French supermarket chain Monop', which currently operates out of City Mall, and The Sultan Center (TSC), which exited the mall some time ago. Monop' is a Monoprix concept that is franchised...

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Plastic box factory to open in Zahleh.

Cecin Plast, a recently established company, will open in summer a plastic box factory in Ablah, Zahleh.

Investment in the project is estimated at $2 million.

The total built-up area of the factory is 400 square meters (m2). The required machinery has been imported from China and Italy.

Production capacity rates will be 80,000 various-sized plastic boxes per.

Georges Abou Farah, major shareholder, said that the boxes are for agricultural use and will be distribute...

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Cultural and tourism program is launched by the government. 2,000 religious sites to be mapped

A program to promote cultural and religious tourism was launched today by the recently established Cultural Religious Tourism (CRT) unit, which is affiliated to the Office of the Prime Minister. The program is being implemented in cooperation with the Ministry of Tourism.

The Italian Cooperation Office funded €297,000 ($328,000) to implement the project.

The CRT unit has produced a map detailing 250 Islamic and Christian religious sites. An additional 1,750 religious sites will als...

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100,000 landline tender by Ministry of Telecom. Project includes simultaneous fiber optic installation

A tender will be launched by the end of May for Phase 7 of the Outside Plant (OSP) network, which is physical cabling and supporting infrastructure (such as conduit, cabinets, tower or poles). Phase 7 will include for the first time the simultaneous installation of copper wires and fiber optics, according to Naji Andraos, General Director Equipment & Construction, at the Ministry of Telecommunications.

The value of the tender is estimated at $35-45 million.

"Around 100,000 landline...

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470 financial crimes reported Special Investigation Comm.. Cases of terrorism financing up 70 percent

The Central Bank's Special Investigation Commission (SIC) said it received 470 cases related to financial crimes last year, up nine percent compared with 2015.

The number of crimes reported by local sources totaled 363. The remaining 107 cases were submitted by foreign sources, according to SIC's 2016 annual report.

With 140 cases, embezzlement of private funds continues to be the most reported crime. This kind of crime increased 40 percent compared with 2015.

Forgery rank...

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SGBL and Sehnaoui expand in UAE and U.S.. Two banks to be added to the group

Société Générale de Banque au Liban (SGBL) and its major shareholder Antoun Sehnaoui are in the process of expanding their businesses to Abu Dhabi and the United States.

SGBL plans to open a fully-owned subsidiary within the Abou Dhabi Global Market (ADGM) with an initial capital of $50 million, said Georges Saghbini, SGBL's Deputy General Manager.

The new entity will launch its operations in June and will provide corporate, institutional, and private b...

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Power plant for Port of Tripoli terminal.

Saccal has won a tender to establish a four megawatt power plant at the terminal of Port of Tripoli (PoT).

"The plant's production will be expanded to 12 megawatts gradually," said Antoine Amatouri, Chairman of Gulftainer, the terminal's operator.

The contract was valued at $1.5 million. Generators have been installed and are being commissioned. They will be used to power the terminal's cranes, according to Amatouri.
...

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Ten percent increase in hotel summer rates. Demand from Gulf tourists increasing

Hotel room rates are expected to increase ten percent this summer compared to the same period last year, according to the Syndicate of Hotel Owners.

Rack rates for five- and four-star hotels are currently around $90 per night. Prior to 2011, they averaged $130.

Pierre Achkar, Chairman of the Syndicate, said: "We've started to witness demand from Gulf tourists, mostly Saudis and Kuwaitis. But we need one hundred percent occupancy rates to return to the original room rates."

...

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Al Bonian wins $56 million Akkar highway.

The Council for Development and Reconstruction (CDR) has awarded the construction of a new highway linking Mouhammara to Koueikhat in Akkar.

Al Bonian Group will be in charge of constructing the 15-kilometer road, at a cost of $56 million, according to Elie Helou, project manager at the CDR.

The government will fund the highway, which is part of the North Coastal Highway.

The highway will include two lanes northbound, two lanes southbound, and two service roads. A number o...

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Social impact accelerator to launch pilot.

Elevate, the country's first social impact accelerator, will launch a pilot program during the first week of July. The accelerator is a collaboration of AltCity, a startup hub, and UNICEF, according to Mounir Nabti, CEO at AltCity.

"The pilot program will initially host five startups that have a social impact aim, with future rounds reaching up to 15 startups," he said.

Each startup enrolled on the program will receive $50,000 investment, of which $20,000 will be in cash and $30,...

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Abou Merhi cleared by U.S. Treasury.

The U.S. Treasury Office of Foreign Asset Control (OFAC) has removed Abou Merhi Group, related individuals, and subsidiaries from its sanctions list.

Merhi Abou Merhi and his group of companies were placed on the Specially Designated Nationals and Blocked Persons List in October 2015. The Treasury said then that Abou Merhi had ties to a maritime network tied to "Joumaa Criminal Organization," which is linked to Hezbollah.

Abou Merhi is a renowned businessman who owns the Orient Que...

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Industrialists decry unfair competition. Non-registered refugee-based factories are dumping products

The Association of Industrialists (ALI), chaired by Fadi Gemayel, has warned that a number of local factories will go bankrupt unless officials take swift measures to stop what he described as unfair competition by factories established by Syrian refugees.

ALI called for protective measures, the end of dumping, and for the enactment of an export strategy to regain what has been lost in the past few years.

Gemayel announced ALI's demands, including the need for an incentivizing poli...

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BB Energy acquires Australian oil terminal. Plans expansion of Hypco gas stations

BB Energy Group, founded by Baha Baastne, has purchased Pioneer Energy, a diesel terminal previously owned by Morgan Stanley in Australia, via its wholly owned subsidiary Wala B Terminal Holding.

The value of the deal is more than $75 million.

This move is part of the company's global expansion strategy. Its latest acquisition is the company's first in Australia.

"We are also planning to expand into West Africa and have started to expand in Turkey," Bassatne said.

P...

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Illicit financial flows top $32 billion in ten years. Leakage is facilitated by lack of transparency

Illicit financial flows between Lebanon and the outside world reached $32.6 billion over the ten-year period 2005-2014, accounting for 17 percent of the country's total trade over the period, according to average estimates by U.S.-based research and advocacy organization Global Financial Integrity (GFI).

GFI's report, 'Illicit Financial Flows to and from Developing Countries: 2005-2014', defines total trade as the sum of exports and imports. The country's total trade amounted to $197.5 b...

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Diaspora targeting apps, linking emigrants with home. For investment, products, services search

One bank and two entrepreneurs launched last week three digital initiatives to link local entrepreneurs and businesses to the Lebanese diaspora worldwide.

Bank of Beirut (BoB) launched the 'Lebanon Investors' online platform to connect the diaspora to local entrepreneurs, Abacus Lebanon launched 'Ya Mijana' mobile application to globally promote local producers, and TEDMOB launched an app similar to LinkedIn, but locally and aimed at the diaspora.

According to Danielle Issa, Head...

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Life insurance to be taxed at ten percent. Decision needs more clarification according to insurance association

The Ministry of Finance has issued a decision to tax profits and revenues from life policies. The tax is set at ten percent.

The tax should be paid one month following profit registration or distribution. The decision does not include heirs of the policyholder. Heirs are subject to an accession tax.

Carla Abdo, Chairperson of the Life Committee at the Association of Insurance Companies (ACAL), said: "This decision is unclear and might create problems between the tax administration ...

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MEA codeshares with Turkish Airlines.

Middle East Airlines (MEA) has signed a codeshare agreement with Turkish Airlines.

The agreement will enter into force on May 15. Under the terms of the agreement, MEA and Turkish Airlines will place their codes on their respective flights between Beirut and Istanbul.

Turkish Airlines will operate three daily flights on the sector Istanbul-Beirut-Istanbul, while MEA will be operating two daily flights.

Turkish Airlines, a member of Star Alliance, has a fleet of 337 aircraf...

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Fujilift plans elevators factory. To export 650 units per year

Fujilift, a manufacturer of elevators, will open a factory in Mkalles in early 2018.

Investment in the project is $6 million. Rafic Maroun, General Manager, said that the company borrowed a subsidized loan to finance the project.

The built up area of the plant is 4,500 square meters. The factory's machines are imported from Switzerland, Holland, and Japan.

The production capacity of the factory is 1,000 elevators per year. Maroun said that around 65 percent of the producti...

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Solidere reverses losses into profits. Share price closes at above $9

Solidere achieved total audited profits of $75 million in 2016. Excluding Solidere International, profits from local operations reached $63 million.

Solidere managed to turn its losses in 2015 into profits after being able to sign 11 new sales contracts in 2016 for 73,370 square meters (m2) of built up area, at a value of $218 million, averaging $3,000 per built-up square meter. In 2015, Solidere's losses reached $119 million.

As a result of the difficulties faced by investors who ...

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Bchamoun cosmetics factory to produce German brand. Skin care, lotions, shampoos, and disinfectant products

Original Dental, a medical equipment supplier, will open a factory for cosmetics and disinfectant solutions in Bchamoun late this month.

The company will produce 13 products including skin care, lotions, shampoos, and disinfectant under Aqua Distel and Ozonide brand names. Nabil Bilalli, General Manager, said: "These are German brands, which we used to import, pack, and distribute previously. We signed a franchise agreement to produce them locally to reduce our costs."

Investment ...

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