Régie invests $8 million to double production. Lines dedicated to produce international cigarette brands

Régie Libanaise des Tabacs et Tombacs (Régie), the State-owned tobacco monopoly, will expand its Hadath factory's production capacity by 50 percent in 2018. Investment in the expansion is around $8 million.

Production capacity will reach one million boxes (500 packs per box), an increase from the current 500,000 boxes.

Régie, following an agreement with the UK-based Imperial Tobacco, is producing its international brands 'Gitanes', 'Gauloises', and 'West' in...

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Leaving fees increased at Beirut Airport.

The Directorate General of Civil Aviation at Rafik Hariri Beirut International Airport (RHBIA) will increase fees for departing passengers.

Mohamad Chehabeddine, Director of the Civil Aviation Authority, said that the increase in fees will only include trips with final destinations of over 1,250 km from Beirut. The fees for economy tickets will not change regardless of the trip distance and is confirmed at LL50,000 ($33), said Chehabeddine.

The new fees are:LL110,000 ($73) for busi...

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Lending by Economic & Social Fund hits $120 million.

The Economic and Social Fund for Development (ESFD) said it has provided nearly 9,800 loans to small and medium enterprises (SMEs) since it launched its operations in 2003 and until September 2017. The overall value of the loans reached 179.9 billion liras (around $120 million).

These loans have contributed to the creation of more than 8,000 jobs, a statement by ESFD said.

The loans granted to the services sector accounted for 39 percent of the overall number of loans while trade r...

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National datacenters to be tendered by Ministry of Telecom. Bids through private public partnership

The Ministry of Telecommunication (MoT) is planning to build datacenters hosting a local cloud platform, to be owned, managed, and operated by the private sector through the Private Public Partnership law (PPP).

The Ministry will provide the land. The project is divided into four phases, with an ultimate cost for each phase estimated at $50 million. The bidding is expected to be announced this November.

Imad Abou Rached, Procurement Director at OGERO, said that the MoT is finalizin...

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Fiscal deficit narrows by 53 percent in first semester. IIF expects debt-to-GDP to drop in 2017 and 2018

The fiscal deficit narrowed by 53 percent to LL1,368 billion ($908 million) in the first half of 2017 compared with the same period last year.

The improvement in the fiscal deficit was mainly driven by a one-off factor consisting of taxes on the profits realized by banks on the 'unconventional' financial operations that were carried out by the Central Bank (BDL) in 2016, said Garbis Iradian, Chief Economist at the Institute of International Finance (IIF). A rise in value added tax (VAT) ...

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BDL considering launching digital currency. Move to be preceded by enhancement of cybercrime protection

The Central Bank (BDL) is considering issuing a digital currency in the coming years that will be under its own supervision, said Governor Riad Salameh.

The digital currency will play a key role in the future, but BDL must first carry out some necessary measures, especially developing means for protection against cybercrimes, Salameh said. The Special Investigation Commission and the Banking Control Commission have teamed up to create a system to prevent these crimes, he said.

Digi...

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Advertising allowed for pharmaceutical-like products. Ads could be run on TV, radio, and in print media

The Ministry of Public Health (MoPH) said it has decided to allow advertising campaigns to be carried out for products classified by its technical committee as similar to drugs.

Advertising could be made through audio-visual or print media, the MoPH said.

The products should belong to the 'Class I' and 'Class II a' classifications adopted by the US Food and Drug Administration (FDA) and by France's Agence Nationale de Sécurité du Médicament et des Produits de ...

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Property Registry e-services launched.

The Ministry of Finance (MoF) has launched six real estate electronic services on a mobile application and on the website of the General Directorate of Land Registry and Cadaster (GDLRC) (www.lrc.gov.lb).

The e-services allow users to access the Title Register (Al Sahifah Al Ikariah). They can track transactions and their paid invoices, and request ownership statements. The e-services include a simulation feature to estimate the fee to be paid. Users could also be informed through email a...

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Bank of Beirut goes to Ivory Coast.

Bank of Beirut (BoB) said it has decided to establish a bank in the Ivory Coast with an initial capital of 15.25 million euros ($18 million).

BoB will first found a subsidiary company with a capital of EUR15,250 that will be later converted into the new bank, according to a BoB statement.

The bank said that the board of directors has mandated the chairman or any other person appointed by him to implement this decision. Salim Sfeir is currently BoB's Chairman and CEO.

The ba...

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ESA and HEC Paris launched Master's in Entrepreneurship. Classes to start in September 2018

Ecole Supérieure Des Affaires (ESA) in partnership with Ecole des Hautes Etudes Commerciales in Paris (HEC), a university specialized in management, have launched a Masters in Entrepreneurship.

The program, that will start in September 2018, is supported by the Chamber of Commerce, Industry and Agriculture in Beirut and Mount Lebanon. Mohamad Choucair, Chairman of the Chamber of Commerce, said that the chamber will provide scholarships for this program.

The program targets...

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Villa projects are keeping some developers busy. Improving developing costs to meet middle-income families’ demands

Villa developers are attempting to cater to the needs of the middle class. This is increasing the number of villa projects in various locations, especially in the Metn and Jbeil areas, according to an investigative feature published this month in Lebanon Opportunities.

Demand is increasing for more affordable primary-residence villas, and being met through customized supply. Abboudi Farkouh, Chairman and General Manager at ForeFront Development, said that "Current developments meet the lo...

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Additional $500 million in subsidized loans for 2017. Expatriates to benefit from subsidized loans

The Central Bank (BDL) has decided to inject an additional $500 million to the stimulus package for 2017 which aims to finance productive projects and home purchases at subsidized rates, according to BDL's intermediate circular 475.

This brings the stimulus earmarked for the current year to $1.5 billion. The $1 billion originally allocated for 2017 has already been used up.

BDL will continue to charge the banks a one percent interest rate on the additional funds if they are denomin...

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First budget in 12 years passed by Parliament. No audit of previous extra-budgetary outlays

Parliament has approved the state budget for the first time since 2005.
The budget, which is for fiscal year 2017, was ratified without a prior audit of previous extra-budgetary expenditures disbursed during the last 12 years.

The LL1,200 billion earmarked to finance the pay rise of public sector employees was reduced to LL500 billion. This was due to the late ratification of the budget.

The lawmakers have also decided to withdraw a clause regarding the resolution of the constr...

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BIAT launches project to revive Tripoli’s furniture industry.

The Business Incubation Association in Tripoli (BIAT) is preparing a project to help revitalize the furniture industry in the city.

The scheme will consist of two parts, the creation of an online platform for the furniture sector and training for people working in the sector.

The project is funded by the European Union and has been subcontracted by Expertise France to BIAT which will implement it. It is part of a broader program to support development projects in Lebanon. Expertise...

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Dunes Hotel changes brand from Holiday Inn to Radisson. Under renovation

Radisson Blu, an international management chain, has acquired the management of Dunes Hotel in Verdun. As of December, the hotel will operate under the name Radisson Blu Hotel Beirut.

Until now the hotel was managed by Holiday Inn.

A renovation process is being undertaken for the 127 rooms, lobby, restaurants, and the lecture and conference halls. Renovation will be completed in late November.

Mohamad Yassine, Radisson Blu Hotel's General Manager, said: "Hospitality and t...

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Central Bank will extend stimulus package. $1 billion for soft loans already fully deployed

The $1 billion stimulus package of the Central Bank (BDL) for 2017, which allows banks to provide subsidized loans to the private sector, has been completely used up, said Governor Riad Salameh.

BDL will soon issue a new circular that will be applied immediately to ensure the continuity of subsidized loans, Salameh said.

The Central Bank has so far injected $5.4 billion into the economy through this stimulus package. Under the program, BDL grants soft loans to the banks at an inter...

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Economic Social Council members appointed. Revival following 15 year dormant period

The Cabinet has appointed the 71 members of the Economic and Social Council (ESOC) which has been inoperative for more than 15 years.

The members include 12 women.

The ESOC, whose duty is to advise the Government on economic and social projects, represents most of the economic and social associations and unions. Emigrants are also represented by six members.

Charles Arbid, Chairman of the Lebanese Franchise Association, said that he is candidate for the ESOC's chairmanship. ...

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Renewed contract for electricity service providers.

The Cabinet renewed the contract with the two Distribution Service Providers (DSP), BUS, part of the Butec Group, and KVA, of Arabian Construction Company (ACC), until 2021. The Cabinet will undergo negotiations with NEUC, part of Debbas Group, until they find solutions for the problems they are facing.

Kamal Mhayar, Advisor at the Ministry of Energy and Power, said the contract was renewed for three months only with NEUC, which is facing financial problems. "If NEUC didn't find the solut...

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One bid received for gas exploration. Years required for commercial return

The Ministry of Energy and Water (MoEW) announced that only one consortium submitted two bids for offshore gas exploration.

The bidding procedure set by the Lebanese Petroleum Administration (LPA) requires a minimum of three companies to establish a joint venture, with at least one operator.

LPA announced that only one consortium participated in the
process. It will be led by the French operator Total, while the other non-operating partners are the Italian firm Eni Internationa...

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ICT market grows to $436 million. Future expectations are promising

The size of the Information and Communication Technology (ICT) market reached $436 million last year after growing at a Compounded Annual Growth Rate (CAGR) of seven percent over the period 2014-2016, according to the Information Technology Factsheet released by the Investment Development Authority of Lebanon (IDAL).

The ICT market is expected to grow at a CAGR of 9.7 percent over the period 2017-2019.

The factors contributing to the growth of the ICT sector are rising income, decl...

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Lebanon Opportunities Awards 11 companies for excellence. Full house at the Business Opportunities conference

In front of a full house, standing-room only audience, 10 companies were recognized in their own sector as company of the year, in addition to Daher Food as the 'Company of Year 2017' for its continuous expansion.

More than 1,000 people attended The Business Opportunities in Lebanon conference, which continues on Thursday where a similar number of attendees are expected.

A variety of topics were discussed in panels including real estate, marketing, technologies, and finance.

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Parliament ratifies the tax law for the second time. VAT increased again to 11 percent

Parliament has approved the tax law that aims to finance a pay rise for public servants for the second time. The law was previously revoked by the Constitutional Council and was returned to Parliament.

The lawmakers again raised Value Added Tax (VAT) to 11 percent from ten percent, as they did in the previous ratification.

The approved taxes include new fees on imported alcoholic drinks, phone bills, tobacco, real estate contracts, and the lottery. The MPs also approved the impos...

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Business Opportunities conference on Wednesday. Largest business gathering of the year

More than 1,500 attendees are expected to participate in the annual Business Opportunities in Lebanon conference. The two-day event, under the theme of Business Warriors, will debut on Wednesday October 11 at 4 pm at the Movenpick Hotel, Beirut.

More than 50 speakers will discuss myriad topics in real estate, marketing, technologies, and finance.

The Lebanon Opportunities Awards will also be announced during the conference.

Lebanon Opportunities is celebrating its 20-year a...

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Remittances to rise according to World Bank. Slight drop in cost of transfers from outside MENA region

Remittance inflows are expected to reach $7.87 billion this year, up 3.3 percent compared with 2016, according to the World Bank's Migration and Development Brief.

The remittance inflows for 2017 will account for 14.6 percent of the country's GDP.

Roger Melki, economist and consultant at Bank BEMO, said that the increase in interest rates on local deposits and the financial engineering operations of the Central Bank (BDL) are attracting more funds to the country.

He said tha...

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Chamber of Commerce represented in Cyprus. A platform to help investors

The Chamber of Commerce, Industry, and Agriculture in Beirut and Mount Lebanon (CCIAB) has opened a representative office in the Lebanese Business Center in Cyprus named 'Cedars Pavilion'.

Comed Cyprus, owned by George Moufarrej, is the company behind the center. The center will be a platform which introduces investors from both countries to one other and to feasible projects.

Mohammad Choucair, Chairman of CCIAB, said: "Economic relations between both countries are growing rapidl...

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Digital platforms are first source of recruitment. All categories of job seekers

Digital recruitment platforms have become the most popular way to find employees, according to a special report in the October issue of Lebanon Opportunities magazine.

Dedicated online platforms such as InfoPro's jobs.com.lb, as well as Bayt.com, hirelebanese.com, huntinglebanese.com, monstergulf.com, and lebanonvoyager.com are some of the main resources that companies use to search for employees.

Thousands of companies register on online platforms annually. For instance, more tha...

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$100 million to Ogero for fiber optic project. Part of $300 million total budget

The Council of Ministers has approved an advance of LL150 billion ($100 million) from the Treasury to Ogero.

The funding will be used to finance part of the fiber optic project, whose overall cost totals $300 million.

Minister of Telecommunications Jamal Jarrah said last month that the ministry plans to start the fiber optic project in the next few weeks. The project aims to boost Internet speed to at least 50 megabits across the country, he said.

Early in September, the M...

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Banks required to set board member succession plan.

The Central Bank (BDL) has asked the boards of directors of banks to set up a 'Board Members Succession Plan'.

The succession plan will be used as the basis for proposing new chair people and board members to the general assembly of shareholders.

The plan must be in line with the bank's strategy and objectives and the board of directors should revise it on an annual basis.

The board, while preparing the plan, must take into consideration both the existing and required qualif...

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Flynas back to Beirut.

Flynas, a Saudi based low-cost airline, has re-introduced its Beirut-Riyadh route. Flynas will start flights in early November.

Kurban Travel will be the sole local agent for Flynas.

Bander Al Hassan, Director of Marketing and Communication at Flynas, said: "The company will operate four flights per week from King Khaled Airport in Riyadh."

Travelers on Flynas have to pay for onboard food. They have the ability to carry 20 kilograms of baggage for free, and any additional w...

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Car loans are smaller in size and number. Upturn in used car imports

The average size of car loans has decreased due to a shift towards smaller and cheaper cars and because of higher down payment requirements, reveals an article published in the October issue of Lebanon Opportunities magazine.

Car loans started to decline after reaching a peak in 2011, and they stood at $1.2 billion in April. Car loans account for 6.7 percent of retail banking loans.

Besides the economic slowdown, the main direct factors affecting car loans are the shift to purchas...

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Drinking water panels generated by solar power. Each unit to produce water from thin air enough for one family

Source, a solar panel technology designed to extract drinking water from the air, has been introduced to the local market recently by the US-based company Zero Mass Water. It is represented locally by Hasan Daouk.

Source produces water through adsorption and condensation of water vapor from the atmosphere. The technology only needs sunlight and air to create drinking water. Cody Friesen, CEO of Zero Mass Water, said, "This technology provides a safe and economic solution for drinking wate...

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Hilton Beirut Downtown will open early next year. $160 million for 158 rooms

Hilton Beirut Downtown, a five star A hotel, will open in Beirut Central District early next year.

The hotel is owned by Al-Iqarat Wal Abnia Co, which is chaired by Nadhmi Aouchi, the owner of Le Royal Hotel and Resort in Dbayeh. It will be managed by the international management chain Hilton. The property has been under construction since 2000. "Hilton was planning to manage this property before handling Hilton Habtoor Grand in Sin el Fil," said Joyce Mouawad, Marketing Director of Le R...

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Louis 5 Hotel to open in Dbayeh. $16 million investment for 63 rooms

Louis 5, a four A star hotel, will open on the Dbayeh Highway next to ABC mall in early 2018.

Investment in the hotel totals $16 million. The project is owned by the Mardikian Group, a real estate development company, and the owner of the Garden City Hotel in Dekwaneh, and White Tower.

The total built-up area of the hotel is 6,000 square meters (m2), including 15 floors and three underground floors dedicated to parking.

Louis 5 will also include a spa, gym and two conferen...

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