First-time representation at Biennale of Architecture. Historical photographs at a pavilion in Italy

A number of local institutions and individuals, architects, artists and researchers will participate in the 16th Biennale of Architecture exhibition, to be held in Venice, Italy in May. This is the first time local artists participate.

Under the theme: 'The place that remains', the 'Lebanese Pavilion' at the exhibition has been drafted by Hala Younes, Assistant Professor of Architecture at the Lebanese American University (LAU).

This project has been drafted with the support of th...

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Parliament hastily votes for 2018 budget. $4.82 billion projected record deficit

Parliament approved the 2018 budget after quick deliberations in committee and general session. Members of Parliament have been sharply critical of the budget, but ended up by voting in its favor. The passage of the budget was deemed a prerequisite to the upcoming Cèdre donor conference to be organized in Paris on April 6.

The projected deficit is estimated at a record $4.82 billion, up from $3.76 billion in 2017.

Total expenditure is anticipated at $15.8 billion, to which m...

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Régie lost half its sales due to smuggling. $200 million annual losses from illicit cigarettes

Sales by the Régie Libanaise des Tabacs et Tombacs (Régie), the State-owned tobacco monopoly, have dropped by 46 percent in the last five years. This is attributed to smuggling of imported cigarettes, which increased from six percent in 2012 to 30 percent last year, according to Régie.

Nassif Seklawi, Director General of Régie, said that the state's loss from the illicit trade of cigarettes is around $200 million annually. Around 7,000 violation tickets were i...

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Fiscal deficit drops 24 percent. Tax revenues rise 17 percent

The fiscal deficit narrowed 24 percent to $3.76 billion in 2017 as total revenues increased at a greater rate than expenditures, according to the Ministry of Finance (MoF).

Total revenues, mainly driven by tax revenues, jumped 16 percent to $10.8 billion while total spending rose nine percent to $14.1 billion.

Tax revenues surged by $1.2 billion or 17 percent. Non-tax revenues increased by $315 million or 14 percent.

The decrease in the fiscal deficit was the result of an i...

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Government plans $700 million bond issue. Move to unlock $4 billion in funding for infrastructure

The government plans to issue within one month special bonds on the local market in order to raise $700 million, said Nadim Munla, senior adviser to the Prime Minister.

This move will help the State unlock additional funding of $4 billion for 40 infrastructure projects from international financial institutions such as European Investment Bank and the World Bank. The $700 million represents the local contribution necessary to unlock these loans.

There has been an agreement between ...

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Beirut hotel occupancy rates up eight percent. Expatriates represented more than half the hotel occupants

Beirut hotel occupancy in five and four star hotels grew by eight percent last year, compared to 2016, reaching a total rate of 64 percent, according to Ernst & Young's Middle East hotel benchmark survey.

This increase was accompanied by a ten percent growth in the average room rate from $138 in 2016 to $151 last year. Revenues per available room (RevPAR) increased by 17 percent to reach $96. This is considered the highest increase since 2010.

Wadih Kanaan, Secretary General of th...

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Three companies licensed to supply fiber to the home. Contract replaces agreement suspended by the State Council

The Ministry of Telecommunications (MoT) has licensed three data service providers (DSPs) to rent OGERO's fiber optic network in order to connect end users with 'Fiber-to-the-home' (FTTH). The DSPs are: GlobalCom Data Services (GDS), Connect, and TriSat.

Habib Torbey, Chairman of GDS, said that packages through the FTTH project will be moderately priced above the current cost of DSL. FTTH speed will be vastly superior and will reach speeds of up to 100 Mb/s, with higher consumption capaci...

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Bekaa exports up.

A report issued by the Chamber Of Commerce, Industry, and Agriculture in Zahle and Bekaa showed that exports with a Certificate of Origin from the Chamber reached $300 million last year, registering a four percent increase compared to 2016.

Industrial exports reached $88 million, registering an eight percent increase. The corn flakes industry topped the list of industrial exports ($11 million), followed by the carton industry ($7 million), plastic products, and canned food.

Export...

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Retail sales up last year. Yearly indicator up despite drop in fourth quarter

Retail sales increased by 1.37 percent in 2017 according to an index published by The Lebanese Franchise Association (LFA), in collaboration with the Chamber of Commerce, Industry, and Agriculture in Beirut and Mount Lebanon (CCIA-BML).

The index covers nine categories of goods and services. The indicator remained nine percent below its 2012 base year level.

Of the categories included in the report, five categories have increased and four saw their sales go down.


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European Bank buys 2.5 percent of Bank Audi. $65 million deal is part of support package to the financial market

The European Bank for Reconstruction and Development (EBRD) has acquired 2.51 percent of Bank Audi's overall outstanding common shares, for a total of $65 million.

The shares were bought on the Beirut Stock Exchange (BSE).

Bank Audi's shareholders' equity stood at $4.2 billion as at the end of 2017.

"This [investment] marks the EBRD's first-ever investment in Lebanon, and its first equity investment in a banking institution in the southern and eastern Mediterranean (SEMED) r...

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Tender to procure floating dock in Tripoli Port.

The Ministry of Public Works and Transport launched a tender for the purchase and operation of a floating dock that will be situated at the Port of Tripoli (PoT).

The floating dock will be the first in the local market. It will be used for the repair and maintenance of ships with a maximum length of 170 meters and a width of 30 meters.

Ahmad Tamer, PoT Director, said: "The floating dock will generate more than $600,000 in revenues yearly."

The port will receive an annual fee...

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$295 million for rapid transport. First project to benefit from PPP law

The World Bank has approved a $295 million package to overhaul the transport sector.

The Greater Beirut Public Transport Project (GBPTP) is expected to ease congestions on roads and unlock private finance in the infrastructure sector.

The project will be financed by a $225 million loan. The Global Concessional Financing Facility (GCFF) will contribute another $70 million on a grant basis. The GCFF provides low- or no-interest financing packages to middle-income countries, whose ec...

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Fransabank to lend $150 million for energy. Bank will issue ‘green’ bonds

Fransabank plans to launch a $150 million program to finance local projects in the renewable energy sector and that targets energy efficiency, said Adnan Kassar, the bank's Chairman. "This is part of Fransabank's Green Strategy," he said.

The issuance of the first series of the program's 'Green Bonds' will be announced soon and will amount to $60 million, he said.

The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) will subs...

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Generics represent half of the pharmaceutical market. Imports surged five percent

The market share of generic medicines represented 43 percent of the total value of the pharmaceutical market, which reached $1.2 billion last year, according to the Pharmaceuticals Importers Association (LPIA).

Generics represented 57 percent of the total quantity of pharmaceuticals. Generics are imported mainly from Jordan, Saudi Arabia, UAE, Canada, and Austria. Armand Phares, the Chairman of LPIA, said that the re-pricing rule for the originator medicine is limiting the generics abilit...

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Tender launched for three solar and hydro farms. $1.6 billion in upcoming private investments in renewable energy

The Ministry of Energy and Water (MoEW) launched an Expression of Interest (EoI) for three solar farms that will generate 70 to 100 megawatts (MW) each.

Each solar farm should have battery storage capacity of 70 Megawatt Hour (MWh). It is the first time such a requirement has been made.

The locations of the farms will be determined by the private sector contractors. Electricité du Liban (EDL) will buy the output according to a Power Purchase Agreement (PPA). The PPA that w...

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Budget sent to Parliament with a $4.8 billion deficit. Process expedited to meet April conference deadline

The Cabinet has approved the draft budget for 2018 and the President has signed the related decree to refer it to Parliament for deliberation and ratification. The President has also signed a decree calling on Parliament to hold extraordinary sessions to ratify the draft budget and other draft laws.

The budget, valued at LL23,854 billion ($15.8 billion), does not include any new taxes or any additional fees that could be a burden for any social class, said Minister of Finance Ali Hassa...

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BML Istisharat sold to UAE-based fund. Management to remain mostly unchanged

Mawarid Finance, an Islamic finance company based in Dubai, has paid $15 million to acquire the entirety of BML Istisharat, one of the oldest Beirut-based software development companies. BML Istisharat's forte is banking software, with 250 clients installed in 35 countries. The company also provides insurance and ERP software solutions.

Joe Faddoul has stepped down as chairman of the company, but will remain on the board of directors. A new chairman will be elected during the next general...

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Banks required to apply the Liquidity Coverage Ratio. Decision is part of Basel III requirements

The Central Bank (BDL) has instructed banks to apply the Liquidity Coverage Ratio (LCR) on their local and overseas operations, according to a new basic circular.

The LCR, which is one of the Basel III requirements, must be calculated separately for each significant currency. A currency is considered significant if it represents five percent or more of a bank's total liabilities.

According to the circular, BDL's Banking Control Commission (BCCL) will issue the relevant instructions...

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Fruit juice industry stands at $150 million. Three main players dominate the market

The size of the fruit juice industry ranges between $130 and $150 million, according to a recent study by BLOMInvest, "Can fruit juices keep the doctor awayæ"

One liter of juice costs on average $1.20 which translates into a volume for the juice market in the range of 108 to 125 million liters.

There are three main players, in addition to other producers and a niche market player. They are Liban Jus, SMLC (the agent of Pepsico), and Interbrand. Other players include Junet Jui...

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Women account for half the farming labor force. FAO finds a 43 percent payment gap

Women represent around 43 percent of the agricultural labor force, according to the Food and Agriculture Organization (FAO). The numbers were released on the occasion of International Women's Day.

FAO's figures also indicated that only nine percent of farms are headed and operated by women, and only five percent of agricultural land is cultivated by women.

Raphael Debbane, Head of Agricultural Committee at the Federation of the Chamber of Commerce, Industry, and Agriculture in Le...

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European Bank, IFC will invest $100 million. Targeting capital markets, bonds, SMEs

This year, the International Finance Corporation (IFC) and European Bank for Reconstruction and Development (EBRD) are preparing to launch investments in the financial sector.

Saad Sabra, IFC Country Head in Lebanon, Syria, and Yemen, said: "This year, we have in the pipeline local projects that will exceed $100 million with the goal to enhance the capacity of capital markets to allow more access to finance to investors."

The IFC is targeting investments in capital markets, such as...

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Airport being readied for 20 million passengers. Urgent temporary expansion to precede major plan

A $500 million tender for an overall expansion of the airport will be launched by the end of next year. The expansion will be conducted according to an updated master plan that will gradually raise the airport's capacity to 20 million passengers by 2030.

The Cabinet approved two allocations, with a combined value of $88 million, to execute 'urgent' expansion measures at the Beirut Rafik Hariri International Airport.

"It has become necessary to expand the airport," said the Minister...

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Beirut Chamber expands to Jounieh. To host economic activities and facilitates operations

The Chamber of Commerce, Industry, and Agriculture in Beirut and Mount Lebanon (CCIABML) inaugurated today (March 8) a branch in Jounieh.

The total built-up area of the office reaches 850 square meters, including a conference hall named 'Cheik Nassib Gemayel', and a meeting room named 'Hanna Fahed'. It also comprises offices representing the CCIABML and Union of Mount Lebanon Traders, Jounieh and Kesrouan Traders Association, Kesrouan Industrialists Association, Syndicate of Owners of Mar...

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Alaa Al Khawaja chairs GroupMed. Mohammed Hariri is still Chairman of Bankmed

Egypt-based Jordanian businessman Alaa Al Khawaja, who last year acquired a 42.24 percent stake in GroupMed Holding, has become the group's Chairman.

Khawaja has replaced Mohammed Hariri who is still in his position as Chairman and General Manager of Bankmed which is fully owned by GroupMed. Mohamed Ali Beyhum has remained the bank's Executive General Manager.

Khawaja acquired the stake through his company OLT Holding from Ayman Rafic Hariri for around $535 million as GroupMed was...

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Private sector to tap $6 billion in public projects. Including transport, water, wastewater, solid waste, culture, and industry

The High Council for Privatization (HCP) has proposed a list of projects subject to Public Private Partnership (PPP) deals, which will be part of a $22 billion Infrastructure Investment Program (IIP).

The 18 projects that have been announced have a combined value of over $6 billion.

They include five projects in transport, five projects in wastewater, three projects in water, two projects in solid waste, one project in energy, one project in telecoms, and the Tripoli Special Econo...

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Higher Council of Health launched.

The Ministry of Public Health (MoPH) has launched the Higher Council of Health, which was decreed by the Council of Ministers.

The Council aims at involving the private sector, syndicates and universities in setting healthcare policy and strategy.

The Council includes the Chairmen of the Syndicate of Private Hospitals, Order of Physicians, Order of Pharmacists, Order of Dentists, and representatives from the civil society and ministers including the Ministries of Environment and ...

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Subsidized housing loans funded from 2019 budget. Approvals were halted after all funds were deployed

The Central Bank will increase the number of housing loans that will benefit from the interest rate subsidy.

The total amount earmarked for housing loan subsidies for 2018 has been completely used up in just one month due to a large number of loan applications that have been rolled over from last year's excess demand.

Riad Salameh, the Governor of the Central Bank (BDL), said that some banks made commitments beyond their assigned quotas. BDL asked them to fulfill these obligations...

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Opel dealership goes to A.N. Boukather. A four-year plan to enhance the brand

A.N. Boukather (ANB) acquired the Opel dealership previously owned by Techno Cars. The deal was finalized during February. ANB already sells Mazda cars, Otokar buses, and different brands of motorcycles.

The international ownership of Opel moved in mid-2017 from General Motors to the French PSA Group, which owns Peugeot, Citroën, and DS. Anthony Boukather, Chief Executive Officer at ANB, said that the strategy of the new mother company is to spread Opel as a global brand and not just...

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Rent subsidy fund finally gets decree. Formulation of committees is last step towards full application of rent law

The Ministry of Finance (MoF) issued a decree that establishes a fund to subsidize tenants under the old rent law who are unable to pay the fair value of their leases. The decree also explains the fund's mode of operations.

The fund subsidizes tenants on old rent by paying the difference between the old and new (fair) rent.

The decree still needs the signature of the President and Prime Minister.

According to the 2017 budget, $20 million will be allocated to the fund. "We e...

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Net public debt rises six percent to $70 billion. Share of foreign debt is falling

Net total debt, after deducting public sector deposits with the Central Bank (BDL) and commercial banks, increased by six percent to $69.3 billion. Gross public debt grew 6.2 percent in 2017 to reach $79.5 billion by the end of the year, according to data published by the Ministry of Finance (MoF).

The foreign portion of the debt increased by $2.3 billion to $30.4 billion. Domestic debt rose by $2.4 billion to $49.1 billion. The proportion of foreign debt as a percentage of total debt con...

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Net public debt rises six percent to $70 billion. Share of foreign debt is falling

Net total debt, after deducting public sector deposits with the Central Bank (BDL) and commercial banks, increased by six percent to $69.3 billion. Gross public debt grew 6.2 percent in 2017 to reach $79.5 billion by the end of the year, according to data published by the Ministry of Finance (MoF).

The foreign portion of the debt increased by $2.3 billion to $30.4 billion. Domestic debt rose by $2.4 billion to $49.1 billion. The proportion of foreign debt as a percentage of total debt con...

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