November 9, 2012
IDAL Investor Newsline – October 2012
We are approaching the end of 2012, and with it comes preliminary figures on the performance of the Lebanese economy for this year. According to the IMF, Lebanon has so far seen a 2% growth in GDP, a 10% increase in income per capita, and a 9% increase in imports from the port of Beirut among other positive economic indicators. This encourages us, along with other sub-national and national players, to continue in our efforts to promote Lebanon as a viable investment destination.
In this issue you will also find a snapshot of the lucrative Pharmaceutical market, which is expected to reach USD 1.73 billion over the next 4 years in terms of market size. Special attention was given to the Global Entrepreneurship Week in Lebanon, which is spanning between 8-30 November and through which entrepreneurs are encouraged to participate at in order to create linkages, network, and get the right information for the advancement of their ideas.
I hope you enjoy this issue. For any feedback do not hesitate to contact us.
Chairman and General Manager
Investment Development Authority of Lebanon (IDAL)
|Gas discoveries to boost Lebanese economy
Recent off-shore gas discoveries in Lebanon is an important development that would boost the Lebanese economy. Seismic surveys of suggest the presence of 12 trillion cubic feet of gas, an amount that, if extracted, could meet Lebanon’s electricity production needs for 99 years.
Lebanon already entered the gas exploration stage, and is technically ready to start issuing licenses to get the process of natural gas extraction started.
After spending over USD 21 billion on fuel imports in the past five years, energy independence would be able to transform Lebanon’s fiscal and economic picture significantly and end the heavy reliance on costly diesel generators, estimated at 38% of private electricity consumption.
Pharmaceuticals market at USD 1.3 billion in 2012, growth projected at 7.6% over the 2011-2016 period
The Lebanese pharmaceutical market reached USD 1.28 billion in 2012 up from USD 1.2 billion in 2011. The market size is expected to reach USD 1.73 billion over the period 2011-2016 growing at a CAGR of 7.6% during the same period. This increase is mainly due to the booming of Pharmaceutical sales and the rising demand of Lebanese importers who are continuously looking for new suppliers.
There is consequently a very large and competitive market in Lebanon for a whole range of Pharmaceutical and over-the-counter products regarding the high spending of Lebanese households on drugs. 70% of the Lebanese market consists of imported pharmaceuticals and that prescription medicines represented around 73% of total market value last year as per BMI. It is worth noting that Lebanon was ranked in seventh place globally regarding its spending on pharmaceuticals and that is equivalent to 2.94% of GDP according to the same source.
The majority of registered medicines in Lebanon are imported, mostly from France, UK, Germany and Switzerland.
As for the exported products, they are destined to Arab countries such as Syria, Jordan, Kuwait, Bahrain, Oman and UAE.
If you have a pharmaceutical investment project in mind in Lebanon, do not hesitate to contact us, as you might benefit from incentives and business support services.
So far, 5 companies benefited from IDAL’s incentives, amounting to USD 50 million in investment size, and creating 400 direct jobs and 1160 indirect jobs.
One of IDAL’s mandates is to promote the export of Lebanese products, among which are IT products, as this sector falls within the organisation’s sectors of interest.
As such, we are activating our role in fostering business linkages between local and international firms. The objective is to help Lebanese companies have access to regional and international markets by exporting their products and services or by serving as an outsourcing base to multinationals firms.
IDAL is identifying companies who wish to subcontract their activities to Lebanon to benefit from cost savings and the unique talent present among the Lebanese workforce.
We are offering our matchmaking services to international companies to benefit from Lebanon’s potential in ICT as well as to local companies interested in accessing new markets and new international partners.
If you wish to benefit from IDAL’s services and expand your business by exporting to new markets, please do not hesitate tocontact us.
Are you planning on starting a business and need legal and financing advice?
IDAL and Bader Young Entrepreneurs Program are putting at your disposal experts in business law and finance to answer your questions and concerns on setting up a business.
You will also get the chance to meet successful entrepreneurs in Lebanon and abroad who rose to the challenge and took their businesses to the next level.
Join us on Monday 12 November from 5:00 to 9:00 p.m. at the new Beirut Digital District for an afternoon of knowledge sharing, hands-on training, and networking.
Steps for setting up your business
Financing your business
The gaming industry-announcing the winner of a gaming competition
How you can benefit from tax breaks
Learning from the mistakes of others
Speakers and Contributors
Mr. Evert Hoogendoorn- Strategist and Game Designer at ijsFontein
Mr. Robert Fadel- President, Bader Young Entrepreneurs Program
Mr. Hero E.G. de Boer – Ambassador, the Embassy of the Kingdom of the Netherlands in Lebanon
Mr. Roger Melki- Advisor to the Minister of Economy
Mr.Marwan Malek, Owner of Pharma M – Pharmaceutials
Mr. Georges El Aily , Co-Founder of Greenisis
Mr. Karim El Khoury, Founder of ViaMobile
Ms. Reine Abbas , Co-Founder of Wixel Studios
Mr. Youssef Fares, Founder of Olive Trade
Me. Walid Hanna, Legal Consultant at IDAL
This event is free of charge. Register now.
|A LEBANESE SUCCESS STORY|
In every upcoming issue, we would like to highlight the regional and international success of an innovative Lebanese company in one of Lebanon’s sectors with growth potential. The globalization of these companies highlights the opportunity for Lebanon to become an outsourcing destination for high value-added services due to Lebanon’s qualified labor force and competitive labor costs which is categorized to be among the lowest in the region.
This month’s success story within the Digital Media sector will be dedicated to Sword Lebanon.
Sword Lebanon is a software development company committed to delivering IT Offshore services to customers across the world. It was established in Lebanon in 2000 and is part of Sword Group, headquartered in France.
During 12 years of working with the European Market, Sword Lebanon delivered large scale projects to clients such as Orange Telecom, Swiss Government, Omega Watches, Swatch Group, UBP Bank, Nestle, etc… These projects were mainly in the area of CRM, Business Intelligence, and Transit and Enterprise Application Integration.
Sword Lebanon offers services to develop applications from scratch, re-engineer existing applications, and application management support services for existing applications that can be taken from customers then rebuilt.
Sword Lebanon is currently expanding their operations in the Middle East.
The Investment Development Authority of Lebanon (IDAL) is the national investment promotion agency of Lebanon.
Established in 1994, IDAL aims at promoting 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.