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English

Depressed real estate market restricted to small flats

2-6-2017

In an analysis yesterday of the real estate market in Lebanon, An Nahar newspaper noticed that the political breakthrough in the fourth quarter of 2016 has had a limited impact on the real estate market in the country. The situation worsened given the sluggish demand for residential property in the first quarter of the present year after a remarkable surge by 17.5% in the fourth quarter of 2016, according to Byblos Bank Real Estate Demand Index. The slowness in the market, An Nahar wrote, is attributed to the government’s emphasis on increasing taxes on consumption, income and profits in the first three months of 2017, in addition to the ceaseless political bickering over a new electoral law. Expounding on the subject, An Nahar spoke to the chief economist and head of economic research and analysis department at Byblos Bank Group, Nassib Ghobril, who said that consumers’ shy confidence which started in the fourth quarter of last year and affected the real estate sector, especially that demand for housing is primarily associated with consumer confidence levels, political stability and economic activity. The newspaper noted, that despite the 5-year stalemate, prices went down by only 20-25%, as per the vice-president of the Builders Association, Atef Dagher. This is mainly because former prices were inflated and higher than their normal rate, and have now retrieved to their acceptable average rate, given that property sellers abstain from selling if their profit is not adequate, Dagher observed. And while buyers interested in the 250 + square meter apartments are hesitant, the buying and selling movement is currently restricted to small flats. Big residential units, Dagher said, are still awaiting an end to the elections law deadlock. (An Nahar, June 1, 2017)

Previous related news:
Slow real estate market in Lebanon

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Prototype recycling of crispy apple chips

2-6-2017

Le Commerce du Levant drew attention to an exquisite brand by Samir Harfushe from Jezzine in the south, Pometto Apple Chips, processed through recycling marred apples that cannot be sold fresh to supermarkets. Elucidating his venture, Harfushe told Le Commerce that he exclusively uses Lebanese red apples, mainly Gala, and he buys the undisposed-of quantities without stopping at the poor look of the fruits, that, anyway, will be produced to a new product, as he said. Harfushe noted that in one year only, he purchased some 24 tons of unmarketed apples. With the emergence of the apple marketing crisis a year ago, Harfushe stated, Pometto came to mind. Enthralled with the idea, he decided to set up a factory in Jezzine with a personal capital of USD 30 thousand, plus another USD 11 thousand he received from the Italian Oxfam organization, which enabled him to equip the factory with high-tech machinery. Harfushe boasted to Le Commerce du Levant that his plant is the only one in the country that produces apple chips, mentioning that traditional mouneh coops are his sole competitors. Pometto, Harfushe concluded, is a healthy snack with no added sugar or preservatives. It is currently sold at 25 points of sale across Lebanon at just LBP 2500 the bag. (Le Commerce du Levant, May, 2017)

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Lebanon supports exporting factories and attracts foreign investments

2-6-2017

In its concerted efforts to revive national economy, Banque du Liban issued a circular which becomes effective as of Thursday June 8. The circular instructs banks to provide low interest loans for the operational capital of licensed industrial establishments to facilitate the export of their products. Said loans should not exceed LBP 3 million for a 3-year term, provided the interests, expenses and charges incurred do not go above 3%. Commenting on the decision, the president of the Lebanese Industrialists Association, Fadi Gemayel, described it as extremely vital to the industrial sector, and is expected to generate significant incentives for the growth of industrial exports, that have seen a reduced value (by one third) as a result of losses (more than USD one billion) over the past five years. On the other hand, a recent study by Arab Net published by Bank Byblos weekly monitor, has shown that Lebanon came second in terms of the largest investments in technology startups out of 14 MENA countries during 2016 and attracted the second highest value for investments in the region in 2015 and 2016. According to the study, investment funds in the region made some 37 investments in technology companies in Lebanon during the year 2016 at a total value of USD 56 million. Lebanon also attracted close to 17% of the overall investments in emerging technology startups MENA region during 2016. These investments in Lebanon have accounted for nearly 6.1% of the total regional investments during the same year. (Al Diyar, Al Akhbar, Al Mustaqbal, June 2, 2017)

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Ramadaniyat: Fatoosh and stuffed grape leaves

2-6-2017

Al Mustaqbal newspaper highlighted today a special article on the culinary traditions of the holy month of Ramadan with a special focus on the dish of ‘fatoosh salad’ and Um Abed Raqika Shawwak. The latter, the newspaper wrote, makes a living by picking and selling grape leaves growing in her neck of the woods along the side-road between the towns of Kawkaba and Mhaidthe in Rashaya. Syrian Um Abed said she relies on this trade to overcome displacement, poverty, deprivation and joblessness. “Ramadan has carved a new source of livelihood for us. We pick nearly 10 kgs of grape leaves per day,” Um Abed boasted, pointing that “one kilogram is being sold at LBP 5,000, enough to get our daily needs for Ramadan and save a sum for the winter where there is no work nor anyone to help us.” A note on the ‘fatoosh salad’ a typical Ramadan Iftar recipe, Al Mustaqbal mentioned that Lebanese family spend around LBP 300 thousand for a plate of vegetables alone in the holy month, particularly with the fluctuating prices between monopoly and non-compliance with prices set by the ministry of economy and trade. The latter, the newspaper wrote, has warned shops and hypermarkets against unjustified rises in the prices of consumer and food products in Ramadan to the end of making profits at the expense of the ordinary citizen. Al Mustaqbal reported that as of the first week of Ramadan, people complained about the soaring prices of vegetables and fruits. Nada, 35 years, for example, complained: “Before Ramadan, one kg of cucumber was sold at LBP 500, now it is LBP 1500, and the lettuce which was sold at LBP 750 is now worth LBP 2000.” (Al Mustaqbal, June 8, 2017)

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Lebanese businesswomen focus on attracting investments

1-6-2017

The Gathering of Lebanese Businessmen and Businesswomen (RDCL World) discussed at the regular meeting of its board of directors chaired by Fouad Zamakhal key issues related to attracting foreign and emigrant investments. The meeting drew attention to the current stalemate in the issuance of a new electoral law which, if ratified, would spare the country a vacuum in the legislative arena. They pointed to the lack of basic incentives necessary for attracting investments in general, starting with the need to cut taxes, amidst an absence of investments in the national economy and a solid law of partnership between the private and public sectors. Zamakhal reiterated the demands of RDCL World which focus on a need to create opportunities for economic growth, contrary to what is officially proposed in terms of tax hikes that have burdened individuals, companies, as well as investors and expatriates. “We cannot ask Lebanese emigrants to invest in Lebanon if we have done nothing to improve the business environment,” Zamakhal concluded. And referring to the global country ranking by quality of infrastructure 2016 where Lebanon was placed 140th (out of 144 states), Zamakhal said “this does not inspire investment unless the infrastructure is improved, especially in the area of electricity which is still interrupted by rationing in the capital and in the regions. (Al Mustaqbal, June 1, 2017)

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Cabinet extends maritime export bridge one more year

1-6-2017

After the Cabinet’s decision of May 17th to continue its support for the sea bridge export programme implemented by the Investment Development Authority of Lebanon, IDAL’s president Nabil Itani, announced a one-year extension (at a cost of LBP 21 billion) of the said plan. The period will start as soon as the allocations are secured, Itani said, noting that the programme, launched back in 2015 and renewed until March this year, was assigned an equal sum of LBP 21 billion (USD 14 million). IDAL head underlined the stepping up of efforts to restore work with the maritime bridge, disclosing that the government has decided to earmark LBP 14.5 in 2017, while the remaining amount will be deducted from the 2018 budget. Itani boasted that the sea bridge which, since 2015 has exported close to 81 thousand tons of made-in-Lebanon industrial and agricultural products, is expected to export between 50 to 60 thousand tons from the date of securing the allocations until the end of this year. Itani stressed the importance of this step which, he said, shall contribute to the continued export of Lebanese produce, ad prevent possible recession or destruction of the seasons with the resulting considerable losses on farmers. (Al Mustaqbal, June 1, 2017

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Pan Arab startup competition

1-6-2017

In collaboration with the MIT Enterprise Forum- Pan Arab Region, and in partnership with Bank Audi, the Beirut Traders Association (BTA) launched yesterday the sixth edition of the ‘Grow My Business’ competition. Relying on the success of the five past editions, the initiative seeks to help startups grow and expand in the right direction. For this to be achieved, Lebanese entrepreneurs and owners of small and medium enterprises (SMEs) are called upon to create development plans which will inspire their businesses and move them forward. As usual every year, applicants wishing to participate, are called to download the forms from the website ttp://www.growmybusiness.me, following which, a competent jury panel will shortlist the top 15 candidates in August 2017. In the second stage of selection, the nominees will attend a 2-day workshop organized by a number of experts and professors on how to develop a successful business plan. Five best contestants will then be shortlisted by a carefully selected jury to undergo the final assessment through oral presentations. In light of these guidance sessions, the jury will announce the three winners in November 2017 who will reap from Bank Audi prizes worth of LBP 15 million, LBP 30 million and LBP 50 million respectively. During the launching event, the BTA chairperson, Nicolas Shammas, underlined the purpose of the competition which is “to give SMEs a substantial added value, enhance the professional standards of the commercial sector and contribute to the sustainable development of the national economy.” (Al Mustaqbal, June 1, 2017)

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Annabelle Kareem Kassar a distinctive architect and interior designer

1-6-2017

In its issue of May 23, L’Orient Le Jour shed light on the distinctive career life of the French-born Lebanese architect and interior designer Annabelle Kareem Kassar owner of AKK Architects Ltd with offices in Beirut, London and Dubai. Kassar, to recall, was declared winner in a competition by the renowned French architecture firm, Valode et Pistre, to reconstruct Beirut old souks. She studied engineering at the Ecole Nationale Superiere des Beaux Arts de Paris and opened in 1982 her first architecture and interior design atelier in the French capital. Later, she decided to return to her homeland, Lebanon, where she created some of Beirut’s hottest venues characterized by their contemporary arabesque designs. Kassar disclosed to L’Orient Le Jour reporter her participation a year ago in the London Design Biennale 2016 held at the historic Somerset House, where she received the first design award for transferring a Beirut street design to London. She also mentioned her participation in the Beirut Design Week (between May 23 to 26, 2017) and expounded about the project she is currently working on which involves the restoration of a landmark 750 square meter house in Goro Street, Gemayzeh neighborhood of Beirut. (L’Orient Le Jour, May 23, 2017)

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Shura annuls the minimum wage reduction

31-5-2017

The State Shura Council issued a decision on April 26 repealing an earlier decree to reduce the minimum wage to LBP 26000 instead of LBP 30000. In June 2016, the cabinet had ratified the amendment of a decree in 2012 (which set the official daily wage of workers and employees at LBP 30,000, as advised by then labor minister, Dr. Charbel Nahas), to become LBP 26,000, under then labor minister Sajaan Azzi. The latter’s decision, it should be noted, reportedly came to correct an alleged mathematical error made in 2012 in calculating the month and days ( http://www.lkdg.org/ar/node/15416). In a summary of the Shura Council decision, it said that it came to refute labor ministry ‘computational error’ justifications issued at the time, and to stress that the cabinet’s decision not in favour of the marginalized working classes and which reduced their minimum daily wage without any legal or realistic explanation of the reduction, particularly amidst an enlarged cost of living index, constitutes as viewed by the Shura Council, a contradiction of the principles derived from the Constitution and the relevant international conventions. The new decision comes in response to two revisions filed to the Shura Council requesting repeal of the said decree. The first was submitted by the National Federation of Worker and Employee Unions in Lebanon (FENASOL), and the second from president of Lebanon’s Public Drivers of Land Transport Union, Abel Amir Najdeh. Najdeh clarified that determining the official minimum wage is not a “discretionary action by the government, but is mandated in relation to the cost of living index, and is based on studies and tables of the cost of living fluctuations.” The decision to reduce the workers' daily wage, Najdi noted, was a manipulation by specific governmental departments and independent institutions that accommodate large numbers of daily wage-earners who are subject to the labor law. On the subject, the Federation’s president, Castro Abdallah, said yesterday that the Shura Council’s decision did justice to the workers and to the daily workers in Lebanon against the arbitrary measures stipulated by the former government and which, in fact, have become a trademark of the successive governments irresponsible towards and oblivious of the interests of the working classes. Abdallah was speaking during a press conference held with the participation of Citizens within a State movement and the Legal Agenda. (Al Akhbar, L’Orient Le Jour, May 31, 2017)

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National economy still in the red despite some recent improvements

31-5-2017

The Association of Banks in Lebanon (ABL) figures have shown an increase in the overall public debt in Lebanon by USD 1.02 billion during March, 2017, reaching USD 77.17 billion, from USD 76.13 in February. On an annual level, the public debt increased by USD 6.12 billion as compared to its level in 2016 (USD 71.05 billion). The share of the banking sector from the overall debt has grown to 48.91% in March against 47.82% in February, according to ABL statistics. Moreover, the World Bank has lowered its estimation of the inflow of remittances of Lebanese expatriates to USD 7.3 billion in 2016, down from its October USD 7.6 billion estimates. In terms of foreign trade, a report prepared by the Industrial Information Department at the ministry of industry has indicated a drop by nearly 11.7% in exports during the first two months of 2017, standing at USD 372.6 million, against USD 422 million during the same period of 2016. On the other side, Fransabank economic bulletin (for the first quarter of the present year) noted a slight improvement in the performance of the Lebanese economy during the first quarter of 2017 compared to the first quarter of the year before. Most of productive and service sectors, the bulletin said, recorded some expansion in activity. As such, growth was noted in the value of agricultural and industrial exports (10.1%); real estate sales value (14.3%); the number of incoming travelers to Lebanon through Beirut Airport (0.1%); the volume of goods through Beirut Port (0.3%), the total number of tourists (12.6%) and their expenditures  (8%), during the said period. )Al Diyar, Al Mustaqbal, May 15, 18, 23, 24, 2017(
 
Previous related links:
$7.3 billion in remittances from Lebanese expatriates
 News of decline of remittances and transfers provoke bankers
USD188 billion in bank assets while Lebanon still survives on transfers of expatriates

 

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