Top 18 stories for 2018. Dynamic year in review

It was a busy year, packed with deals and acquisitions in the financial and non-financial sectors, the passing of long-awaited regulations, and billions of dollars in new loans and concessional financing. Despite long odds, the market saw vibrancy in tourism. Borders reopened in Syria to allow exports to Arab countries. New laws and regulations were passed, such as an e-transactions law, a solid waste management law, and a transparency law for oil and gas. The public budget was also ratified. Bu...

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$20 million EBRD loans to BUTEC for smart metering. First corporate loan by European Bank

The European Bank for Reconstruction and Development (EBRD) will grant BUTEC Utility Services (BUS) a $20 million loan for the implementation for the installation of smart electricity meters.

BUS is one of three distribution service providers in charge of providing operations, maintenance, and bill collection services to public electricity subscribers. BUS handles these operations in the North.

"This is the first corporate loan granted by the EBRD in the local market," said Fadi Ab...

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SGBL Insurance newest owner in Solidere. Sale by SGBL

Société Générale de Banque au Liban (SGBL) has sold 3.5 million shares of Solidere to SGBL Insurance, its fully owned subsidiary, at a total value of $23.7 million.

SGBL now holds 13 million shares, or 7.88 percent of Solidere, while SGBL Insurance owns 2.12 percent.

The sale was done for three types of shares. The first included the sale of 1 million shares of Solidere 'B' at $6.68 per share. The second included the sale of another 1 million shares of ...

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3,000 medicines to be re-priced. Average reduction is estimated to be 40 percent

The Ministry of Public Health (MoPH) will step up its efforts to re-price medication to reduce healthcare costs across the board.

Every five years the ministry compares the cost of thousands of medicines against those costs in seven reference countries, and adopts the lowest price. The MoPH will speed up that cycle in January, and re-price medication every three years and pass those savings to consumers. Medication, generally, drops in price the longer it is on the market, especially afte...

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EU grants $22 million for health sector.

The European Union (EU) has offered €19 million ($21.56 million) in grant funding to support Lebanon's health care system.

The EU Regional Trust Fund grant will secure access to chronic medications, vaccines and essential medical commodities to the most vulnerable population.

The donation raises EU's support to the health sector to €173 million ($197 million), in response to the Syrian crisis, to strengthen the system and to help meet the basic health needs of both locals and Syri...

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T-bills highly oversubscribed. 15-year bills offered at 10.92 percent. Central bank subsidized 0.42 percent

The Ministry of Finance (MoF) said that demand from banks for subscription of its Treasury bill issue of the second week of December exceeded the offer size by 84 percent.

The issue, which will mature in 2033, is valued at LL1,200 billion ($796 million). Demand from banks reached LL7,427 billion ($4.93 billion).

The T-bills were offered at interest rates that are in line with global and local rates, taking into consideration additional risk because of the country's failure to form ...

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Beirut art museum architect replaced. Project to open in 2023

Architect Amale Andraos of New York-based WORKac has been selected to design the Beirut Museum of Art (BeMA), replacing Hala Wardé, who was commissioned for the project.

Andraos is Dean of the Graduate School of Architecture, Planning and Preservation at Columbia. WORKac was funded by Andraos and her husband Dan Wood in 2003.

BeMA, which is scheduled to open in 2023, will be built on a site owned by Université Saint-Joseph across the street from the National Museum. ...

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2017 GDP growth slows to 0.6 percent. Improvement recorded in hospitality services and agriculture

The real GDP growth rate slowed to 0.6 percent in 2017 from 1.6 percent in the previous year, according to the 'National Accounts' report recently released by the Central Administration of Statistics (CAS). The GDP at current market prices for 2017 is estimated at $53.4 billion.

The growth rate comes lower than estimates by the World Bank and the International Monetary Fund (IMF).


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UPDATE: Lebanon’s outlook downgraded by Moody's. Cites rising risks to liquidity position and financial stability

Moody's Investors Service said it has changed the outlook on the Lebanese government to negative from stable and that it affirmed the ratings at B3.

"The negative outlook reflects an increase in risks to the government's liquidity position and the country's financial stability, in large part as a consequence of domestic and geopolitical risks that have become more intractable," the credit rating agency said in a statement.

Moody's said it would change the outlook to...

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CDR overseeing $4.5 billion in projects. Transport, water projects are funded the most

The Council for Development and Reconstruction (CDR) is supervising the implementation of $4.5 billion worth of ongoing projects, according to its annual progress report for 2018.

The transport sector has the lion's share of contracts under execution, with $1.3 billion, followed by potable water ($718 million).

Transport falls under the category of basic infrastructure, which includes electricity and telecom. This category includes solid waste, wastewater, and potable water.
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MEA signs $300 million deal with Rolls-Royce. British company will provide support for Airbus aircraft engines

Middle East Airlines (MEA), the national flag carrier, has signed a $300 million contract with British motor-maker Rolls-Royce, for the installation of Trent 7000 engines in four new Airbus aircraft, expected to be delivered in two years.

In addition to the cost of the engines, the contract covers maintenance throughout its service life with MEA, the purchase of spare engines, and the supply of parts, according to a MEA statement.

MEA Chairman Mohamad El-Hout and Rolls-Royce Chair...

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Faqra Club to be sold to Rahmeh Brothers company. $18 million deal includes land and management company

Teddy and Raymond Rahmeh, owners of ZR Group Holding, will acquire Faqra Club Holding (FCH), which owns Faqra Club as a property as well as Societe Libanaise Des Projets Touristiques (Solipro), the management company of Faqra Club. FCH is chaired by Elie Nahas.

The deal is estimated at $17 million to $18 million including the management company and some land plots.

The two parties have reached an initial agreement. "The acquisition deal requires ten more days to close," said Nahas...

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Bank Audi gets $75 million trade finance line from EBRD.

The European Bank for Reconstruction and Development (EBRD) said it has signed an agreement to provide a $75 million trade finance line to Bank Audi.

The deal, which is part of the EBRD's Trade Facilitation Programme, aims to support import and export activities, especially of small and medium-sized enterprises (SMEs) as well as intra-regional trade.

"The accord will allow Bank Audi to benefit from EBRD trade finance guarantees which cover the political and commercial payment risk ...

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Food deliveries doubled in one year. Driven by mobile applications

Demand for food deliveries increased dramatically this year, according to the Syndicate of Owners of Restaurants, Cafes, Nightclubs and Pastries.

"The spike in food deliveries is partly driven by an increase in the number of food delivery mobile applications," said Tony Ramy, Chairman of the syndicate.

Additional factors are driving the increase in deliveries. Ordering food to home is, for many people, less expensive. "Alcohol is a major component of a restaurant's bill," said Ra...

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Ethiopia reverses ban on workers with MOU. Salaries may rise

Ethiopia will reverse a ban it imposed on its citizens forbidding them from working in Lebanon, as it is expected to sign a new Memorandum of Understanding (MoU) with the Ministry of Labor (MoL) in two months.

The new agreement will include terms regarding the recruitment process, the labor contract, means of resolving conflicts between workers and employers, and a possible salary increase.

Ethiopia forbade its citizens from working in the country starting in November due to diffe...

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Areeba launches first digital and cashless society. Beirut Digital District promotes cashless culture

Areeba, working with Beirut Digital District (BDD), has launched the country's first cashless ecosystem by allowing BDD community members, through a mobile application, to make payments to individuals and entities operating within the community without the use of cash.

Mouhamad Rabah, General Manager at BDD, said that the application allows 1,500 members in BDD to digitize their payments. Nearly 25 percent of the members switched from cash to seamless mobile payments during a trial period...

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Housing Bank loans to reach $100 million in 2018. The bank exceeded its quota, provided its own subsidies

The value of loans granted by Banque de l'Habitat (the Housing Bank) in 2018 is likely to reach LL155 billion ($103 million), said Joseph Sassine Chairman of the bank.

"The Central Bank (BDL) has subsidized the interest rates of LL50 billion ($33 million) of these loans, which is our annual quota, and will subsidize next year another LL63 billion ($42 million) of the loans granted in 2018," Sassine said. The remainder of the loans provided in 2018, amounting to LL42 billion ($28 million) ...

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Carrosserie plant to open in Koura.

Top Cat Industries, a recently established company, has opened a vehicle body (carrosserie) factory in Bishmizzine (Koura) to be completed in 2020.

The metal shaping and fabrication shop is producing bodies for trucks, cars, tankers, buses, and other vehicles. Initial production capacity will reach 1,000 units per year.

The 6,000 square meters (m2) facility is built on a 12,000 m2 land plot. Investment in the project is $6 million.

The factory will create 200 full time jobs...

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Two restaurant clusters planned in Zahle and Saida.

Construction will start early next year on two restaurant clusters in Saida and Zahle.

The two projects are a joint venture between Venture Group, a hospitality concept development company owned by Marwan Ayoub and Rabih Saba, and a group of seven investors. Venture Group will develop the clusters over a period of two years, and will manage the projects once they open.

The project in Saida will be built on an 8,000 square meters (m2) land plot. The project faces Saida stadium and ...

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Lebanon Opportunities Awards for nine companies. Kassatly Chtaura is Company of the Year

Nine companies were awarded on Wednesday December 5th, for their astonishing achievements this past year, during the annual Business Opportunities in Lebanon conference, which attracted more than 1,000 participants.

The nine companies are:
Product of the Year: e-medco
Brand of the Year: Anghami
Entrepreneurship Program of the Year: Smart ESA
Real Estate Project of the Year: Mar Mikhael Village
Hospitality Project of the Year: Bkerzai
Green Project of the Year: Live Lo...

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Newly issued public debt yields to market conditions. New cabinet would be major first step to easing pressures

The banking system will be able to finance the external funding gap over the next two to three years with existing foreign exchange liquidity, according to a report by Goldman Sachs released this month.

This will be achieved through the financial engineering operations of the Central Bank (BDL), the U.S.-based global investment bank said in the report, titled 'How long can Lebanon finance its deficitsæ'

"Beyond [the three-year] time horizon, the risk of a forced external adj...

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Public debt to carry market interest rates. Interest rate on ten-year bills to rise three percentage points

The Central Bank (BDL) and the Ministry of Finance (MoF) have agreed to finance the State in 2019 through the banking sector at interest rates currently prevalent on the market, said Riad Salameh, Governor of BDL.

Interest rate on ten-year treasury bills will be raised to 10.5 percent. The yield on such bills was 7.46 percent at the end of September.

The Central Bank used to channel low-cost lending from banks to the State through swap operations. BDL was allowing banks to earn gen...

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National Library inaugurated today. To contain 300,000 books and 3,000 manuscripts

The National Library, located in Sanayeh, has been inaugurated.

"The Library will be open to the public next month once all the technical work is completed," said Hassan Akra, Director General of the library.

"Restoration works have been completed, old manuscripts have been moved from the port, and books have been placed on the shelves, ready for the opening," Akra said.

The National Library includes reading rooms, conference halls, and an events venue to host cultural activ...

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$563 million from UN to Lebanon in 2019. 22 percent increase

Lebanon will receive $563 million in aid from the UN next year, according to the updated UN Global Appeal 2019 report, which was released this month.

The UN's 2019 aid for Lebanon is 22 percent larger than the preceding year's support, which totaled $463 million, and was dedicated to the agency's cash assistance initiatives for refugees and vulnerable locals, such as the food e-vouchers program.

The funds will cover "the implementation of a lump-sum approach to multipurpose cash pr...

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Oven and heater factory in Jiyeh. Production capacity over 500 units per day

General MBA for Industry and Trade, a recently established company, will open a factory to produce ovens and heaters in Jiyeh in early 2019.

The 4,000 square meters facility will have a daily production capacity of 250 electronic heaters, 50 gas ovens, and 250 electronic ovens, which will be marketed under the brand names 'Centro' and 'Super General'.

"We will be producing private labels also," said Chadi Machmouchi, Chairman.

The company will target export markets such as...

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Tender launched for electronic stock exchange. Follows delay in privatization of Beirut Stock Exchange

The Capital Markets Authority (CMA) has launched a request for proposal for a tender to select an operator for its planned electronic trading platform (ETP).

The operator could be one company or a consortium of companies and the ETP will operate as a stock exchange in the secondary market, said Firas Safieddine, Vice Chairman of the CMA.

Interested parties will be given four months to submit their bids for the tender. Once an operator is selected it will be given six to nine months...

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