Almost two quarters have passed from the year. Looking back at the organisation’s achievements we notice that despite the negative political environment that is surrounding us, IDAL was able to fulfill its role as the country’s investment promotion agency; by attracting 28 investment enquiries, participating in outreach programmes such as economic delegations and workshops, as well as developing and releasing two publications on average per month on matters that concern investors such as our recent comprehensive guide on all licenses and permits needed to start a business in Lebanon.
Additionally, we have launched this month the electronic version of the 2012 Annual Report that summarizes the country’s business environment as well as its investment performance, including the achievements of the organisation itself.
I hope you will enjoy this issue, for any feedback please do not hesitate to contact us.
POTENTIAL PROJECTS Q1 & Q2 2013
Despite the overall negative political environment that shaped the 1st two quarters of 2013, the number of investors that approached the Investment Development Authority of Lebanon to benefit from its fiscal incentives stood at 28, a 26% drop from last’s year number which stood at 38. However the continuous traffic of investors to the institution is definitely a positive sign highlighting the continuous trust of investors in Lebanon’s medium to long-term potential. More specifically:
- The majority of the reviewed investment projects (95%) are Greenfield or new projects, reflecting not only a continuous rise of entrepreneurship initiatives among Lebanese but also increasing demand for local goods.
- 7 of the reviewed projects or 25% of the total projects are also investments by Syrian businessmen relocating their plants to Lebanon.
- The remaining 64% of the investments proposals were by Lebanese local investors, and 11% by foreign investors (France, Turkey and Netherlands).
In terms of the distribution of projects by sector of activity, 40% of the projects reviewed by IDAL are in the Agro Industrial sector, highlighting the continuous export potential of this sector, which accounts for around 32% of the Industrial output and 30% to Industrial employment. 22% of the remaining projects reviewed were in the Industrial sector, 14% in the Tourism sector, 7% in the Technology sector, and 7% in the Agriculture sector.
A more in depth analysis of the projects brought forward to IDAL in the Agro-industrial sector shows plans to develop 2 new brewery plants, 4 canned and frozen foods factories, 2 candy plants, a processed meat plant, and a potato chips plant. Today the highest share of agro food establishments in Lebanon is involved in baked goods (30%), with only 4% in alcoholic beverages, 9.5% in preserved vegetables and fruits and 7.7% in confectionery. The relatively small market share of the latter goods, compounded with the growing regional and international demand for Lebanese alcoholic beverages and candies highlight the capacity of the market to absorb new firms. In parallel, a major local bakery undergoing expansionary plans approached IDAL to benefit from its incentives. When the expansion is completed, the bakery will employ 600 people.
The Industrial sector, which has seen its share of GDP dwindle over the last few years, has seen 6 new investment proposals covering various sub-sectors mainly a textile manufacturing plant, a tin can production plant, a cables production plant, a glass bottling factory, and a plant dedicated to the production of fibers. Within this sector also, a new project adopting a new technology was reviewed by IDAL and consists of a rubber recycling plant that aims to produce processed shredded rubber and biodiesels.
The Tourism sector which traditionally used to attract the highest share of investors saw 4 new potential projects in the 1st two quarters consisting of 1 hotel, 2 boutique hotels, and a residence for furnished apartments. The demand for boutique hotels has been on the rise and is yet unmatched by a corresponding supply.
Finally, 2 investment projects in the Information Technology sectors were reviewed by IDAL, more specifically in software development.
To conclude, 27 investment proposals were reviewed by IDAL, 18 of which meet the criteria needed to be eligible for IDAL’s incentives, while 2 could qualify depending on the projects’ location which would affect their eligibility criteria. In all cases, the fact that new investment proposals are still being brought forward despite regional and local uncertainties, is a good signaling effect for local and foreign investors but also for policy makers.
If you would like to know more on what IDAL can offer you, please check our website.
|ANNUAL REPORT 2012 IS OUT NOW
Our Annual Report 2012 is now available as a soft copy. You will find information on Lebanon’s business environment and investment performance including proposed measures by the government on improving the business environment. The report also covers IDAL’s investment achievements in 2012; some facts and figures, a list of the projects mediated by IDAL and their economic impact, investment opportunities, and implemented programs and initiatives.
The report ends with Export promotion achievements and a round-up of the major activities and events that we took part in.
Below is a summary of the key findings:
IDAL’s achievements in 2012
65 processed investment projects
4 R&D and innovation projects
13 projects eligible for IDAL’s incentives
4 expansion projects
9 greenfield projects
43% of investments located outside of Beirut
8% of investments made by foreign investors
Economic Impact of Projects Supported by IDAL
2,797 expected jobs to be created
113 million USD is the contribution to the Lebanese economy
200 million USD is the total expected sales from operation
150,000 USD in R&D expenditures
| CASE STUDY
Call Center International (CCINTL), established in 2008, is a Lebanese professional outsourcing services company providing telephone and Internet-based contact and professional services for a wide variety of industry sectors on a global scale.
CCINTL has been awarded one of the first five licenses issued by the Lebanese government to operate contact centers in Lebanon. The CCINTL Master Plan is to create, staff, and operate five contact centers throughout the country. Accordingly, CCINTL objective is to create 5,000 employment opportunities while introducing a new challenging profession to the Lebanese people with vast opportunities of advancement towards diverse career paths.
Phase 1 -CCINTL’s first contact center has been operating in Batroun Lebanon since 2009. This state-of-the-art facility initially accommodates 75 positions, and recently was expanded to over 150 positions, equating to 300 employment opportunities.
Phase 2 -CCINTL’s second contact center was recently opened in April of 2013 in New Jdeideh / Nahr El-Mot Lebanon. This facility initially accommodates 50 positions, with an expansion plan of over 200 positions growth capacity.
Phase 3 – Contact center To open in Kaslik, Jounieh, and hold 400 employment opportunities.
Phase 4 – Contact center to open in Achrafieh, Beirut, and hold 400 employment opportunities.
Phase 5 – Contact Center to open in Hadath, Baabda, and hold 300 employment opportunities.
CCINTL, while being “An Equal Opportunity Employer”, is also committed to create numerous jobs in Lebanon and offer the Lebanese people the chance and assistance to build up their potential and reveal their talent. Talent is one of the main reasons that CCINTL chose Lebanon for its business operations as it can tap into a highly-qualified and multi-lingual taskforce needed for the success of its operations.
CCINTL’s expertise has helped the company in building solid partnerships with international companies which became eager to expand their outsourcing services and develop new business opportunities with CCINTL Lebanon, in both inbound and outbound services
HOW YOU CAN BENEFIT FROM IDAL
If you are in the telecommunications sector and wish to invest in Lebanon, you can benefit
from a bundle of incentives and business support services, that could reach 100% exemption from corporate income tax. Contact us for more information on how we could be of support to your business.
WORKSHOP IN CAIRO
We have attended a workshop in Cairo, Egypt on ‘Ways of Increasing Investment between Arab countries & Turkey’ with Chairman Nabil Itani and our legal advisor Me Walid Hanna.
Mr.Itani presented Lebanon’s investment opportunities and economic indicators and highlighted the main sectors of focus that could be of interest to Turkish companies.
OFFICIAL LAUNCH OF KIDZMONDO
KidzMondo, is a 1st of its kind entertainment complex for children, located in Beirut’s new waterfront. The project which benefited from IDAL’s incentives is estimated to have an investment size of over $15 million and will create over 224 job opportunities.
AT THE IMAP IN MARSEILLES
IDAL participated at the “Mediterranean Transit Migration Interactive Map Expert Meeting” under the subject of ” Migrant Entrepreneurship -Migration and Development” which took place in Marseille on June 12-13. The project is financed by the European Union and organized by the French Ministry of Foreign Affairs and the International Centre for Migration Policy Development (ICMPD). IDAL was represented by Chairman Itani who gave a presentation on “Lebanese Immigrants: Fostering Migrant Entrepreneurship”.
LEBANESE SOON TO OBTAIN VISAS TO ROMANIA WITHIN 3 DAYS
Lebanese seeking business opportunities in Romania will soon be able to obtain visas within 3 working days. This stepcomes in line with an action plan expected as of this July to enhance bilateral business ties.
On the same note, IDAL delivered a presentation on the occasion of the official visit of the Romanian Minister of Economy to Lebanon, highlighting the country’s investment opportunities and lucrative sectors for investment.
The Investment Development Authority of Lebanon (IDAL) is the national investment promotion agency of Lebanon. Established in 1994, IDAL aims to promote Lebanon as key investment destination and attracting, facilitating and retaining investments in Lebanon.
IDAL reports to the President of the Council of Ministers which exercises a tutorial authority over it.