Demand on logistic companies flourishing. High tech systems and expertise behind their success

The Logistics business is growing rapidly. Demand from distribution and wholesale companies for outsourcing logistic companies is increasing, especially among foreign brands dealing with this model abroad.

Ziad Harb, Regional Vice President at Beirut Cargo Center (BCC) Logistics, said: "The international trend is outsourcing third party logistics. The distributor-client can focus on its core business and leave the logistics headache for someone else to handle."

Companies that are ...

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EIB offers $303 million in credit lines to four banks. Funds target SMEs and mid-cap companies

The European Investment Bank (EIB) has granted credit lines to four local banks with a combined value of 265 million euros ($303 million). The funds will be used to finance small and medium enterprises (SMEs) and mid-cap companies.

The beneficiaries are Byblos Bank, which was granted a credit line equivalent to $114 million, Fransabank with a credit line of $86 million, and Société Générale de Banque au Liban (SGBL) and First National Bank (FNB) with $69 millio...

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Torbey reelected Chairman of ABL. Salim Sfeir won one seat

Joseph Torbey has been reelected as Chairman of the Association of Banks (ABL). His team won 11 out of 12 seats of ABL's Board of Directors.

His rival Salim Sfeir won one seat at the expense of Varouj Nerguizian, Chairman of Emirates Lebanon Bank, who was on Torbey's list.

This will be the sixth term for Torbey, who chaired ABL in 2001-2003, 2003-2005, 2009-2011, 2011-2013, and 2015-2017. He is the incumbent Chairman of Credit Libanais.

The winners in Torbey's team are Fredd...

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Lebanon ‘Largely Compliant’ on tax transparency.

The country has been rated as 'Largely Compliant' by the OECD-hosted Global Forum on Transparency and Exchange of Information for Tax Purposes, according to the Ministry of Finance (MoF).

Due to the rating, the country will not be included in the list of non-cooperative jurisdictions that will be prepared for the G20 Leaders Summit in July, the MoF said in a statement. The list includes jurisdictions that are non-compliant with tax transparency rules.

The new rating also allowed t...

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More power supply to be added this month. Plans to build Jiyeh plant with 500 MW capacities

Jiyeh power plant will be officially launched on July 2 by the Ministry of Energy and Water (MoEW). The plant has been in trial operation since a few weeks.

Danish firm 'Burmeister and Wain Scandinavian Contractor' (BWSC) in a joint venture with the German firm MAN is the project's contractor. It conducted testing and commissioning works to link the new plant to the grid.

Construction of the plant had begun in 2013, and has been built and ready for use since July 2015. Problems b...

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Lebanon is ranked sixth regionally in Innovation Index.

The country has been ranked sixth regionally in the Global Innovation Index (GII) in 2016, according to the recent report: 'Innovation policy for inclusive sustainable development in the Arab region' published by The United Nation's Economic and Social Commission for Western Asia (ESCWA).

GII measures the status of innovation systems worldwide. It is based on seven main pillars evaluated through a set of 82 separate indicators. Five of the pillars are dedicated to innovation inputs, name...

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Rahmeh brothers exit Byblos Bank deal.

Brothers Teddy and Raymond Rahmeh have not exercised the share purchase agreement to buy a stake in Byblos Bank that had been concluded following the bank's acquisition of Banque Pharaon and Chiha last year for $91 million.

The Rahmeh brothers had received the Central Bank's preliminary approval to acquire up to 5.6 percent of Byblos Bank's common shares through their company ZR Group.

The brothers were given six months to exercise the acquisition right through subscription to an i...

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$150 million aid to improve healthcare sector. World Bank and IDB funding the project

The World Bank and the Islamic Development Bank (IDB) will provide the Ministry of Public Health with $150 million aid. This is in support of the healthcare system that is being burdened by the influx of Syrian refugees.

The World Bank has contributed $120 million and the IDB $30 million.

Around 30 percent of the amount will take the form of a grant. The remainder will be provided as a low-interest loan paid within 30 years after a seven-year grace period.

Minister of Pu...

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Two lists face-off in ABL elections. Sfeir leads a ‘List for Change’ VS. Torbey’s ‘Banking Decision List’

Salim Sfeir, Chairman of Bank of Beirut, is spearheading a list of eight bankers against the list of four-time Chairman of Association of Banks in Lebanon, Joseph Torbey.

With his "List for Change", Sfeir promised to "carry out a series of reform measures to improve the efficiency and performance of ABL."

Sfeir is planning to follow up the issue of U.S. sanctions with American officials. His criticism was that middle-sized and smaller banks have no say in the ABL's agenda.

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Bank employees to launch pension fund.

The Union of Bank Employees in Lebanon plans to launch a pension fund for its employees, said Assad Khoury, the union's Chairman.

The union will finance the fund from employee subscriptions and possible contributions from banks. Khoury said they will negotiate with the banks about their potential contribution to the fund.

"Even if the banks say 'No' we will continue with this venture," he said.

The fund will invest subscription proceeds in various low-risk financial instru...

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Torbey presents his list for ABL election.

Joseph Torbey, the incumbent Chairman of the Association of Banks (ABL), said he will run for a new two-year term. Besides Torbey, his team includes 11 other members who mainly represent the country's largest banks.

The election of the 12 members of ABL's Board of Directors will take place on June 30. It will be the first election in 23 years, since the ABL previously renewed the term of its board members by consensus.

The list includes Freddie Baz, Vice-chairman of the Bank Audi ...

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Huawei Lebanon wins telecom contract. Work to start late August

The Ministry of Telecom announced Huawei Lebanon has won the bid to replace time-division-multiplexing (TDM) switches installed in 1994 with the new advanced telephony IP Multimedia Core Network Subsystem (IMS). The value of the winning bid is $12 million.

IMS is an architectural framework for delivering IP multimedia services.

The project is meant to add 200,000 phone landlines that the market needs. The present bid is the first of a three-phase process that is necessary to achie...

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Insurance market poses slow growth.

Insurance figures released by the Association of Insurance Companies (ACAL) show sluggish market growth, as the total value of gross written premiums grew by only three percent to $1.56 billion in 2016 compared to the year before.

Around 70 percent of premiums were in the non-life segment.

Total indemnities paid showed higher increase of seven percent to $881 million. Net investment income has also gone up 15 percent.

Premiums had grown between three and four percent in the...

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Airbnb properties mushrooming in Beirut. Accommodation tripled since 2015

Cumulative listed properties on Airbnb in Beirut has almost tripled in the last two years, from more than 300 to almost 900 listings, according to the June 2017 report by AirDNA, a website offering data on Airbnbs worldwide.

Airbnb is an online community marketplace that connects locals, travelers, and tourists to those wishing to rent short and long term lodging including vacation rentals, apartment rentals, homestays, and hostels.

The districts of Hamra, Ashrafieh, and Mar Mikhae...

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Flynas back in Beirut.

Flynas, a Saudi based low-cost airline, will re-introduce its Beirut-Riyadh route. According to Jean Abboud, Chair of Syndicate of Travel and Tourism Agents, Flynas will start flights on October 25, 2017.

A source at the Civil Aviation Authority at Beirut Rafic Hariri International Airport said Flynas will operate a daily flight from King Khaled Airport in Riyadh seven days a week.

Formerly known as Nas Air, the company ended operations in the country in 2013 due to financial matte...

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EuroMena buys stake in Moroccan retailer. Two funds will be launched within six months

Beirut-based EuroMena Funds has acquired a seven percent stake in Retail Holding, a Morocco-based diversified retail group for a total of 220 million Moroccan dirhams ($22.5 million), according to the Casablanca Stock Exchange.

Retail Holding acts as franchisee for French retail giant Carrefour, apparel retailer Kiabi, Virgin Megastore, and Burger King.

The investment, which was carried out through the fund EuroMena III, will be mainly used to finance the expansion of Retail Holdin...

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$400 million from World Bank for highways and education. 500 kilometers will be restored in all regions

Two agreements have been signed for World Bank financing of the Roads and Employment Project, and for Reaching All Children with Education 2 (RACE 2) program. The agreements were signed by the Ministry of Finance, the World Bank, and Council for Development and Reconstruction (CDR).

The first agreement has a value of $200 million. Around $150 million of the roads project will be provided through a loan, and the other through the Concessional Finance Facility (CFF).

The proposed W...

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Solidere decides not to distribute dividends for 2016.

Solidere's shareholders have decided not to distribute dividends for the fiscal year 2016 despite the $75.3 million net profit realized last year.

The aim is to sustain the company's liquidity and its strong financial position, the property developer said in a statement.

Solidere distributed a total dividend of $35.4 million for fiscal year 2015 even though it incurred a loss of $87.2 million in the same year.

FFA Private Bank said in a recent equity research report on Sol...

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Dairy factory opened in Zahleh. To produce two thousand liters of milk per day

Yogurt Tannayel, a recently established company, opened a diary product factory and a farm in the industrial city of Zahleh earlier this month. The product's brand name is Dairy Tannayel. Investment is estimated at $2.5 million. Wasim Akl, major shareholder, said he personally financed the project without borrowing from banks.

The factory includes four floors with a built-up area of 1,800 square meters. Part of the machines required for the factory was provided by local companies such as...

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Accelerator to launch in Saida. Diaspora to invest $25 million

The Forge, an accelerator program, will launch in Saida late 2017. The Diaspora living in the Americas will initially invest around $15-$25 million according to Caroline Isaac-Hamdan, CEO of The Forge.

Isaac-Hamdan, who is also a mentor at the UK-Lebanon Tech Hub, said The Forge will serve the under privilege communities of the South and Bekaa regions.

"It will help those who thought they were unable to succeed to get on the first step of the ladder," she said.

The program...

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MEA and Air Canada in codeshare negotiations. Direct route projected to be launched late 2017

Middle East Airlines (MEA) is negotiating a codeshare agreement with Air Canada for direct flights on the Beirut-Toronto route. If approved, flights could be launched late 2017 or early 2018, according to Nizar Khoury, Director of Commerce Department at MEA.

Air Canada postponed direct flights to Beirut due to security issues 14 years ago. Calin Rovinescu, CEO of Air Canada, said earlier this month to the Air Transport World website, that the regulatory process to serve Beirut Airport sta...

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Innovation center to launch in Amchit. Berytech and Michel Issa Foundation join forces

Berytech and Michel Issa Foundation for Local Development (MIF) have signed a memorandum of understanding to create a Business Innovation Center in Amchit, Jbeil area. The center will launch in fall in 2018.

The center, which has yet to be built, will be an interactive community with a space exceeding 3,000 square meters located on the Amchit highway. It will open on a 24/7 and 365 day-a-year basis.

It will contain co-working spaces, open networking space, meeting and conference f...

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Salim Sfeir names list for ABL elections.

Salim Sfeir, Chairman of Bank of Beirut (BoB), has announced the list of names that will participate at the election of the Association of Banks (ABL) on June 30 for a two-year term.

The list, named the 'List of Change,' mainly consists of medium-sized and small banks. It includes Fadi Assali, Chairman of Cedrus Bank, Fadi Daouk, Executive General Manager of BML Bank, Jean Riachi, Chairman of FFA Private Bank, Mario Saradar, Chairman of Saradar Bank, Samer Itani, General Manager of LGB Ba...

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Nicolas Ghorra buys four percent of IBL Bank.

Nicolas Ghorra, advisor to the Chairman of IBL Bank, has acquired a four percent stake in IBL Bank for around $32 million. He plans to purchase an additional three percent.

Ghorra, who also provides financial engineering services to companies in various sectors, said he will soon apply to the Central Bank (BDL) to buy the additional stake.

He said he has more than 16 years' experience in the banking sector, which qualifies him to buy a stake of more than five percent in a bank.
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Social entrepreneur Nadim Shwayri passes away. Founder of Al Kafaàt Foundation and University

Social entrepreneur Nadim Shwaryi (82 years), founder of Al Kafaàt Foundation and University, passed away on Wednesday, June 14.

Shwayri started 'Al-Kafaàt Foundation' in 1957, with a dual goal to educate children and teenage prostitutes from socially disadvantaged backgrounds. They were taught skills in making handmade leather and other items that were mainly exported to Europe and the United States.

In the mid-1970s, Shwayri opened Al-Kafaàt, a technical an...

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Wedding venues anticipating high season. 30 percent annual increase in bookings

Demand on wedding venue services is increasing between 15 and 30 percent each year.

According to Tina Riskala, General Manager at Jardin D'amour, a wedding venue in Aley, demand has increased 30 percent annually. She said that around 50 wedding ceremonies took place last year, and there are around 70 bookings for this year.

"We are performing well. For this reason we will open another wedding venue in a different location," she said.

A figure of $1 million will be invest...

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Start-up cluster to launch in Hamra. Financial support provided by Indevco’s Neemat Frem

The Olive Grove, a collaborative open space containing incubators, a boot camp, and dedicated hot desks, will launch at the end of June located in Hamra. Neemat Frem, CEO of Indevco Group has invested $70,000 on a part loan ($50,000), part gift basis ($20,000).

The owner and manager of Olive Grove is Anna Medearis, an individual entrepreneur.

According to Georges Bassous, Chief Strategy Officer at the Olive Grove, the space will be dedicated to small and medium size businesses...

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$3.2 million for UK-Lebanon Tech Hub. Fund provided by BDL

Nicolas Sehnaoui, Chairman of the UKLTH, announced a fund of $3.5 million as an investment for the UK-Lebanon Tech Hub (UKLTH). The fund is being provided by the Central Bank (BDL). The amount matches the $2.5 million investment provided by the British Embassy in February this year.

According to Dimitri Papadimitriou, Acting Director of UKLTH, the money will go toward the efforts of the UKLTH to foster the entrepreneurial ecosystem and improve the knowledge economy.

"Ultimately,...

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GroupMed mulls selling shares in IPO. Khawaja completes acquisition of 42.2 percent stake

GroupMed Holding, the owner of Bankmed, is considering launching an Initial Public Offering (IPO) of its shares in the near future, said Alaa Al Khawaja, a new shareholder in the company.

Khawaja said that his acquisition of 42.24 percent stake in GroupMed "will pave the way for increasing and diversifying the ownership structure of GroupMed which could result in an IPO in the near future."

After obtaining the Central Bank's approval, Khawaja completed the acquisition of the stake,...

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Treasury notes issued to private hospitals. Arrears valued at $1.1 billion

The Ministry of Finance (MoF) has issued $80 million treasury notes to cover some of the arrears owed to private hospitals for the period 2000-2011. The arrears represent money owed by the Ministry of Public Health (MoPH), which has accumulated over the 12 years whenever the ministry exceeded the yearly financial ceiling it had set with hospitals.

Sleiman Haroun, Chairman of the Syndicate of Private Hospitals, said: "This amount does not cover all the arrears of the MoPH, which is $120 m...

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GroupMed mulls selling shares in IPO.

GroupMed Holding, the owner of Bankmed, is considering launching an Initial Public Offering (IPO) of its shares in the near future, said Alaa Al Khawaja, a new shareholder in the company.

Khawaja said that his acquisition of 42.24 percent stake in GroupMed "will pave the way for increasing and diversifying the ownership structure of GroupMed which could result in an IPO in the near future."

After obtaining the Central Bank's approval, Khawaja completed the acquisition of the stake,...

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Foreign investment rebound up nine percent in 2016. Outflows rise 17 percent to $773 million

Foreign direct investment (FDI) inflows are estimated at $2.56 billion in 2016, up nine percent compared with the previous year, according to the 'World Investment Report 2017' released by the United Nations Conference on Trade and Development (UNCTAD).

FDI outflows are also estimated to have grown compared with 2015, jumping 17 percent to an approximate value of $773 million.

The upturn for both inflows and outflows came after a decrease in 2015 when FDI inflows dropped 19 percent...

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Angel network initiative launched. Targets young CEOs from traditional sectors

The Angels Lebanon initiative has been launched by Nicolas Sehnaoui, Chairman of the UK Lebanon Teck Hub (UKLTH), with support from Marwan Kheireddine, Chairman of Al Mawarid Bank. The initiative aims to target young CEOs from traditional sectors like the auto sector, manufacturers, industrialists to invest in the tech sector, especially startups, according to Sehnaoui.

"We could make the CEOs aware of what is happening in the tech sector, raise their appetite in investing in it, and rec...

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Qaissamani Dam ready.

The construction of Qaissamani Dam, located in Falougha-Higher Metn, has been completed. The inauguration of the dam will take place Sunday.

Construction had begun 2013 but was delayed several times due to local protests from neighboring villages.

The Qaissamani Dam has the capacity to store one million cubic meters of water. Construction costs estimated at $23 million were mostly financed by the Kuwaiti Fund for Arab Economic Development (KFAED). The Council for Development and R...

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Al Fayhaa Union of Municipalities expands its waste sorting facility.

The Union of Municipalities of Al Fayhaa opened yesterday (Thursday) a composting facility, as well as expanding the waste sorting facility, in Tripoli this week. It covers Tripoli, Al Baddawi, El-Mina, and Al-Qalamoun municipalities.

According to Ahmad Qamareddine, Chairman of the Union, the expansion will increase the capacity of the facility from 150 to 200 tons per shift. The factory used to operate two shifts per day. "But after the influx of Syrian refugees the need for sorting wast...

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AUB ranks high in global quality survey. First in the Arab World

The American University of Beirut (AUB) was ranked 235 among 950 universities by QS World University Rankings for the school year 2016-2017. This places AUB at the top of all global universities which counts approximately 26,000. The ranking climbed 33 spots in one year, from 268 to 235.

AUB was one of the top universities in the Arab region.

Imad Baalbaki, Vice President for Advancement at AUB, said: "QS ranking is considered the most comprehensive ranking in the world. Students...

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BLOM redeems $200 million shares. Bank converts $27 million earnings into equity

BLOM Bank said it has redeemed and canceled 20 million preferred shares by buying them back at their issue price of $10 per share.

This operation has resulted in a decrease of $200 million in the bank's total shareholder's equity, which stood at $2.95 billion at the end of 2016.

BLOM Bank is overcapitalized and has ample liquidity and does not need to keep these shares, said Tala Baba, the bank's Assistant General Manager and Chief Financial Officer.

BLOM's current capital...

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Investment in digital startups soars eight times in four years. Growth driven by Circular 331

The value of investments in digital startups surged eightfold from just $7 million in 2013 to $56 million in 2016, and the number of deals more than tripled to 37 from 11 deals in 2013, according to 'State of Digital Investments in MENA', a report recently published by ArabNet in collaboration with Dubai SME.

Tech startups benefited from 100 investments with an aggregate value of $119 million in the past four years, according to the report.

The average investment size has also bee...

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DSL prices slashed 60 percent. New fiber optic packages announced

The government announced today a 20-60 percent reduction to the price of Internet charges.

New fiber optic connection prices for office and home were also announced. These range between LL75,000 ($50) for 300 GB and LL240,000 ($160) for 1000 GB, all at 50 Mbps.

The monthly fee of the E1 line will be reduced from $240 to $110. E1 Line is a high-speed digital link that connects the private automatic branch exchange (PABX) (the telephone switch of the client) to the Ministry of Te...

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InfoPro real estate indices show more supply, lower prices. Small units most in demand

Prices of available apartments for sale have dropped 18 percent in the past five years, according to the recently updated InfoPro Price Index. Its Inventory Index also revealed around half of apartments in new buildings is still for sale.

The Residential Real Estate Price Index and Residential Real Estate Inventory Index are primary indicators of the housing market's health. The indices – launched for the first time six months ago and recently updated again – track price evolution and the...

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16 dumping complaints from different sub-sectors. Protective measures being requested

The Association of Lebanese Industrialists (ALI) has filed 16 dumping complaints to the Ministries of Industry, Economy and Trade, Council of Higher Customs, Finance, and Foreign Affairs.

The complaints relate to metal pipes, flour, berghol, confectionaries, pasta, dairy products, biscuits, marble tiles, cornflakes, foie gras, profiled aluminum, detergents, paper, sanitary products, poultry, and hunting pellets. Other companies are also preparing complaint files, mainly relating to the f...

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Mouawad Edde ‘picks up’ after Sukleen. Ramco takes over in Metn and Kesrouan

Cityblu, a joint venture between local Société Mouawad Edde and Bulgarian firm Soriko, has begun garbage collection and transport in the cazas of Aley and Baabda.

According to its contract with the Council for Development and Reconstruction (CDR), the company is also in charge of the Shouf area.

Milad Mouawad, General Manager of Cityblu, said: "For now, the Shouf municipalities have not requested our help. We are responsible for the caza whenever they ask us to star...

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Zahleh power concession to be terminated next year. Mansourieh electricity loop to see the light “very soon”

César Abi Khalil, Minister of Energy and Water, in an exclusive interview, said the concession granted to Electricité de Zahleh (EDZ) almost a hundred years ago will not be renewed. The concession expires in late 2018.

"EDL will regain control over power distribution in the city, just like we did in Aley two years ago, and will do in Jbeil when the concession there expires," he said.

EDZ is in charge of distribution and production of electricity in Zahleh and vicinit...

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Plastic and paper bag factory to open in Nabatieh.

Plastic and paper bag factory to open iChouayb for Industry and Trade, a recently established company, will open in October a factory for plastic and paper bags in Nabatieh.

Production capacity will reach 200 tons of raw plastic per month, which will be distributed to supermarkets, bakeries, and retail shops regionally.

Ali Chouayb, General Manager, said that they will be printing bags for different brands.

Around $2 million will be invested in the 2,000 square meter facto...

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USEK to launch startup accelerator.

The Asher Center for Innovation & Entrepreneurship (ACIE) at The Holy Spirit University of Kaslik (USEK) plans to launch a start-up accelerator later this year, according to Elias Abou-Fadel, the Head of ACIE.

Investment will be around $2.5 million over a seven-year period. The money will come through the Circular 331 process to fund accelerators, according to Abou-Fadel.

The accelerator is aimed at the USEK community which includes alumni, staff, and the students. It targets all ...

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Spinneys expanding as the largest supermarket chain. 17 outlets including four this year alone

Spinneys is planning to open three new branches by the end of 2017. The branches will be located in Ain el Tineh, Jdeideh, and Mtayleb.

The investment value for all three branches is $6 million.

The supermarket already opened a 7,300 square meter (m2)-branch this year at The Spot Choueifat.

This brings the total number of branches to 17, including three 'Happy' discount stores. This makes Spinneys the largest operating local supermarket chain in terms of number of outlets...

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Shaker Holdings exits BLOM Bank for $69.8 million. Main stake bought by other shareholders

Shaker Holdings has sold the remainder of its stake in BLOM Bank consisting of 6.5 million common shares to Banorabe S.A. and BLOM Bank itself for a total of $69.8 million. Each share was sold for $10.7, BLOM Bank said in a statement.

Luxembourg-based holding company Banorabe, part of the Blom Group family, has acquired five million shares for a total of $53.5 million, thus raising its stake in the bank to 17.5 percent from 15.2 percent.

With a stake of 34.4 percent, Bank of New Y...

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