High oil prices to boost GDP but widen deficits. Will lead to inflation

Rising oil prices will indirectly boost economic growth said the Institute of International Finance (IIF) in a report released recently. It will also lead to a widening of the fiscal and current account deficits, and will increase inflationary pressures.

The 'MENA Oil Importers-Impact of Higher Oil Prices' report said that the rise in oil prices would lead to an increase in remittances and foreign direct investment from GCC countries. Lebanon would also benefit from an improvement in bila...

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FNB subsidizes housing loans. LL20 billion for 100 homes

First National Bank (FNB) has approved more than 100 housing loans worth over LL20 billion ($13.3 million) at an interest rate of 4.5 percent, said Najib Semaan, General Manager of FNB.

"We intend to launch soon a similar package of approximately the same size," Semaan said.

The interest subsidy cost will be assumed by FNB and the loans will be provided through the Public Corporation for Housing (PCH). The Central Bank (BDL) has approved the program. FNB and PCH have signed a proto...

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Mobile data usage grows more than 50 percent. Consumption compensates for decrease in voice revenues

Data consumption through mobile phones continues to increase annually for both mobile operator users, Touch and Alfa (MIC operators). Alfa users consumed 25,000 TB in 2017, a 78 percent increase compared to 2016. Data consumption through the Touch network increased by 66 percent and reached 28,000 TB in 2017.

Daily data traffic at Touch has risen to 100TB, almost double the rate in 2017. Nadim Khater, Chief Commercial Officer at Touch, said that annual data consumption is expected to app...

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Fransabank biometric card makes pin codes obsolete. High-tech Mastercard enters local market

Fransabank said it has launched, in partnership with Mastercard, a biometric payment card with an embedded fingerprint sensor.

The biometric authentication technology of the card, which has been introduced for the first time on the local market, allows cardholders to complete a purchase without having to use a pin code or signature.

"The deployment of biometric cards will be launched in phases to cover gradually our entire customer base," said Nadim Kassar, General Manager of Fran...

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Turnaround at Casino first profits in ten years. Target for 2020: $200 million in revenues

Casino du Liban's revenues increased 12 percent in the first half of the year, compared to the same period last year, according to Roland Khoury, General Manager.

This increase came after a ten percent year-to-year drop in revenues since 2010. "Within one year the casino was able to make profits after several years of losses," he said. Revenues reached $165 million last year, of which $2.5 million are net profits.

This growth is due to several measures and procedures that were re...

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Outlet mall for Dbayeh.

Developers & Co, a real estate company, has begun excavation to build 'Sights', an outlet mall in Dbayeh. The project will be completed in summer 2019.

The outlet mall will be built on a 60,000 square meters (m2) land plot, with a 20,000 m2 total built-up area.

The two-floor project will include restaurants, pubs, and retail shops, as well as kids' area, gym, and spa. It will also have green areas, mainly a 2,500 m2 banquet hall, and a 25,000 m2 outdoor park, which will have acti...

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Vatican placed Lebanon on its pilgrimage destinations list. To promote religious tourism at places of interest

The Vatican has placed Lebanon on its list of Christian pilgrimage destinations for the year 2019, which is issued annually by the Holy See, the universal government of the Catholic Church.

This is first time in 12 years that Lebanon is on the Vatican's list.

"It will attract tourists that might not have considered the country as a destination for religious tourism," said Pierre Achkar, Chairman of the Association of Tourism Syndicates.

The Ministry of Tourism and the pri...

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M1 Group denies housing loan violations. Loans taken according to Decision no. 7835

M1 Group did not acquire loans from the Housing Bank or those guaranteed by the Public Corporation for Housing (PCH), it said in a statement released today, in response to claims made by the Media Focal Center (MFC).

MFC earlier alleged that M1 Group is one of several politically-backed businesses that are responsible for housing loans running out early this year.

"Individuals from our group applied for housing loans in 2011 and 2013 according to Central Bank Decision No. 7835, iss...

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Solidere elects a different board. New board members include Nader Hariri, Mohammed Choucair, and Ghazi Youssef

Solidere shareholders have changed the composition of its board. Nasser Chammaa was reelected Chairman of the Board of Directors by the general Assembly, which has a three year tenure.

The ten-member board of directors is now made up of Nader Hariri, former Chief of Staff of Prime Minister Saad Hariri, Mohammed Choucair, Chairman of the Economic Organizations, and former MP Ghazi Youssef.

Other new members include Hassan Kabbani, Ricardo Rahme, Tarek Chehab, and Ziad Abou Jamra.
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Legalizing hashish to be discussed in Parliament. Third largest exporter of cannabis

Parliament is considering the legalization of planting cannabis for medical use. This follows a report by McKinsey to the government that highlights the positive economic benefits of shifting the country's illicit cannabis agriculture and trade to a regulated market for medicinal use.

"Diversifying the agricultures locally is necessary. Cannabis, along with other medical plants and flowers should be adopted, because they are of a huge benefit to the economy," said Raphael Debbane, Chairma...

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Digital platform connects skilled youth with employers.

UNICEF has partnered with Digital Opportunity Trust Lebanon (DOT) to launch the 'Bridge, Outsource, Transform' (BOT) sourcing platform. The project will link skilled employees with local and international companies.

Charbel Trad, BOT Project Manager at DOT said that the project falls under UNICEF's Generation of Innovation Leaders (GIL) program, and BOT is funded by the Embassy of Netherlands and the German Development Bank (KFW).

Trad said that DOT provides various levels of tra...

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Tourist tax free spending up near ten percent this year. Largest spending increase from Qataris and Syrians

Tax free spending increased by 9.5 percent in the first half of the year compared to the same period in 2017, according to Global Blue's report: 'Globe Shopper Spending Insights YTD – January to June 2018'. The report accounts for VAT refunds that occur at Beirut Rafic Hariri International Airport and other borders.

Qatari tourist spending increased 118 percent, Syrian by 81 percent, Egyptian by 23 percent, Kuwaiti by 17.5 percent, Emirati by 11 percent, and French spending increased by ...

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Ministry to enforce employment of people with special needs. Law was enacted 18 years ago

The Ministry of Labor has said that it will start implementing a law which requires companies to hire people with special needs. The law was enacted 18 years ago.

The law states that private sector companies with 30 to 60 employees must employ at least one person with special needs. Companies with more than 60 employees must have at least three percent of their workforce with special needs.

Companies that don't comply with this law will be fined an amount equivalent to double the ...

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Biodiesel pilot plant to be developed by USEK and IPTEC. To recycle waste cooking oil and reduce emissions

The Holy Spirit University of Kaslik (USEK) and IPT Energy Center (IPTEC), with the support of the United Nations Development Programme (UNDP) in Lebanon, have signed a Memorandum of Understanding (MOU) to install a pilot plant at USEK for the production of biodiesel from waste cooking oil late this year.

The project's objective is to encourage and promote sustainable biodiesel production by collecting household oil in storage tanks at selected IPT gas stations and at the USEK university...

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Wind power generation to be launched in June 2020.

The Ministry of Energy and Water has agreed with the three companies in charge of building wind farms on a timeline for the project's construction and development.

The three companies are Hawa Akkar, Sustainable Akkar, and Lebanon Wind Power. The project entails the construction of three wind farms for the production of 200 megawatts (MW) of power in Akkar. The farms will be linked to the national power grid.

The companies have 36 months for project completion, ending in February 2...

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Bank Audi is not merging with Bankmed. Baz: “We are redeploying employees not laying them off”

Bank Audi is not considering a merger with any big bank, and claims that it is in talks to acquire Bankmed are baseless, according to Freddie Baz, Vice Chairman and Strategy Director of the Bank Audi group.

Mega mergers cannot happen in Lebanon because the Governor of the Central Bank has repeatedly stated that such kinds of mergers are not encouraged under current circumstances. Since the global financial crisis in 2008, international and local regulators have become more wary of oversiz...

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Power generation ship arrives at Jiyeh coastline. Will provide two hours of electricity for three months

Electricity generation barge, Esra Sultan, has arrived at Jiyeh. It will provide 200 Megawatts (MW).

The government said that the ship will operate free of charge for three months. The power it generates will be equivalent to two hours of electricity.

The barge was brought in by Turkish firm Karpowership. It has not been linked to the Jiyeh power plant.

Two Karpowership barges – Fatmagul Sultan and Orhan Bey – are already linked to power plants in Zouk and Jiyeh. Each barge...

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Tripoli Port becomes transshipment hub for East Asia. CMA CGM will start sending mother ships in August

CMA CGM has launched a direct route between China and Southeast Asia to North Europe, passing through Port of Tripoli (PoT), as a transshipment port.

The route will become operational as of August 16. "This move will transform the port from a secondary hub into a primary one," said PoT Director Ahmad Tamer.

CMA CGM ships up to 200 TEUs (twenty foot equivalent units) per week. Starting next month, at least 800 TEUs will pass through PoT per week. Feeder vessels will then move the me...

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Beirut Municipality spends $182 million in 60 key projects. Solid waste and electricity key among priorities

The Municipality of Beirut worked on 60 projects that have a value of $182 million in 2017, according to its annual progress report.

These projects are expected to create 3,000 jobs.

"The municipality's priority in 2018 is to launch partnership projects valued over $330 million," said Jamal Itani, Chairman of the Municipal Board.

Projects were carried out in eight sectors: Solid waste, electricity, transport, infrastructure, urban and environmental planning, green spaces, w...

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Dollarization rate of loans drops below that of deposits. First time change driven by conversions to dollar deposits, rise in lira loans

The dollarization rate of loans dropped below that of deposits in the first quarter of 2018, according to data provided by the Association of Banks.

This is happening for the first time, said Marwan Barakat, Chief Economist and Head of Research at the Bank Audi group.

The dollarization rate of deposits remained at 68.3 percent in April while that of loans dropped further – although slightly – to 67.8 percent.


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Needs of refugee crisis get 45 percent funding. Over one million people received food assistance

Lebanon has received $1.24 billion, or 45 percent of its 2017 appeal for a response plan drawn up to mitigate the impact of Syrian refugees, according to the Inter-Agency Coordination Office annual report.

The response to the Syrian crisis is guided by the Lebanon Crisis Response Plan (LCRP), jointly developed by the government, United Nations, national and international NGOs, and donors. The latest plan covers a four-year period from 2017 to 2020.

The top six LCRP donors were the...

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Sustainable development goals: seven achieved!. Need to eradicate poverty, upgrade infrastructure

Lebanon achieved at least seven of 17 Sustainable Development Goals (SDG) targets, according to the recently released report 'Voluntary National Review on Sustainable Development Goals', distributed by the UN.

SDG achievements were made in health, primary education, and gender equality in education.

The remaining targets showed mixed results, were not applicable, or were not expected to be achieved on time, the most pressing being poverty reduction and environmental sustainability...

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McKinsey economic plan to be submitted. New government to be presented with finding

The national economic plan being prepared by McKinsey & Company in cooperation with local experts has been completed, and the President of the Republic has been briefed of its main components.

The plan will be presented to the caretaker Prime Minister before it is submitted to the new Cabinet for approval when it is formed, said Minister of Economy and Trade Raed Khoury.

Khoury said that the study focuses on sectors with high potential for job creation such as agriculture, manufac...

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Lebanon benefits from $7 million EBSO Med project.

Lebanon has been included among countries covered by the EBSO Med project, a four-year initiative co-financed by the European Commission.

The project aims to boost the Mediterranean business ecosystem and promote inclusive economic growth and job creation by enhancing the private sector environment, namely the Business Support Organisations in the Southern Neighbourhood countries.

The value of the project, which was launched officially in June, is €6.25 million ($7.28 million). It ...

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Tripoli train station back ‘on track’. Turkey plans to renovate century-old transport system

The Turkish General Directorate of Monuments and Museums has signed a collaboration protocol with the General Directorate of Railways and Public Transport with the goal to renovate the train station at Tripoli.

Turkey will provide technical assistance to renovate the station, which it considers a historical Ottoman monument.

"The Ministry of Public Works and Transport will not receive any amount from Turkey," said Ziad Nasr, Director of the General Directorate. "The cost of the pro...

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Restaurant cluster by Venture Group in Beit Mery. Project will comprise 14 restaurants and outlets and Le Charcutier

Construction of a food and beverages (F&B) cluster has begun in Beit Mery. The project is a joint venture between Venture Group, a hospitality concept development company owned by Marwan Ayoub and Rabih Saba, Joseph Aoun owner of 'Le Charcutier', and Charbel Metri.

Cooperation between the parties is based on a two years development and ten years management agreement by Venture Group.

Aoun and Metri will invest $12 million in the project. Saba said that the tenants will deploy anot...

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