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Welcome to the September issue of IDAL's newsline.
The Lebanese economy continues to promote business development and growth, as we highlight in this issue the launch of a multi-million-dollar expansion plan for a leading technological and industrial project, whose company has benefited from our investment incentives.
Latest updates on the performance of the national economy are further showcased in this issue, in addition to our participation at the Arab Investment Conference for Banking, Tourism, Industry and Real Estate.
We are also pleased to announce that work has begun to update Investment Law No.360 to better cope with today's business and investment standards. A re-branding effort for our website has started as well, as we look forward to share with you a new digital experience for IDAL soon.
I hope you enjoy this issue. For any feedback do not hesitate to contact us.
Best wishes
Nabil Itani
Chairman and General Manager
Investment Development Authority of Lebanon (IDAL)
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LEBANESE ECONOMY NEWS | |
 >> The Lebanese economy is expected to register a 1.5% growth in 2011 according to recent IMF forecasts. Yet Lebanon continues to have the basic fundamentals to continue attracting foreign investments according to Lebanese Central bank Governor Riad Salameh, who proposed the creation of employment offices across the country to help graduates find jobs. Salameh also encouraged further promoting research in the fields of science and technology while hailing the adoption of a new Capital Market Law allowing investment in companies with added economic value.
>> Based on a survey conducted by Bader and the World Economic Forum, Lebanon has moved 3 spots up to 89th in the Global Competitiveness Rankings, ranking well in assessments of health, education, financial market development and business sophistication. As emerging economies continue to close the competitiveness gap with OECD economies, Qatar heads the Arab world at 14th place followed by Saudi Arabia at 17th.
>> The Lebanese government is currently in the process of reviewing and ratifying important legislation and projects that will have significant impact on the country, including (a) a medium-term electricity plan expected to reduce costs and improve economic competitiveness, (b) the 3G network plan that will positively impact doing business in Lebanon, and (c) changes in Investment Law No.360 to further boost investments in the country. The Lebanese government also announced plans to increase its budget spending by 15 percent in 2012.
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MATELEC: A SUCCESSFUL INDUSTRY VENTURE
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 This month witnessed the official launch of the expansion of Matelec S.A.L, a company specialized in electrical transformers. This expansion benefited from IDAL's Package Deal Contract (PDC) incentive scheme, granting investment projects in the Industrial sector a 100% exemption on corporate income tax and a 100% exemption on project dividends, among other exemptions (provided that the investment meets specific criteria).
Located in Mount Lebanon, this expansion is expected to produce electrical transformers with increased capacity from 120 MVA up to 220 kV transformers, a first in the region. The 32 million USD project is expected to generate around 100 jobs in the Jbeil area. Industrial linkages are also expected to take place, further generating job opportunities in the region.
Founded in 1974, Matelec produces electrical distribution and power transformers, pre-fabricated package substations, medium voltage switch gears and low voltage panels. Other lines of activity include cement, chemical, aircraft servicing, IT and environment. Today, Matelec has grown into a key diversified regional electricity player covering more than 20 countries in Europe, the Middle East and Africa.
The Industrial Sector in Lebanon: Substantial Potential
The Electrical Machinery sub-sector under which this project falls has been steadily growing in Lebanon, with the emergence of new companies specialized in the manufacturing of electrical components. These produce more than 12 percent of total industrial output and employ around 5% of the industrial labor force. This sub-sector has the highest value added per worker in local Lebanese industry.
IDAL can assist investments falling under the Electrical and Machinery sub-sector through providing them with a set of financial and non-financial incentives, in addition to the needed support to expedite the licensing and permit process.
A project is considered eligible to benefit from the Package Deal Contract investment scheme incentives under the Industrial sector if a minimum investment of 10 million USD is secured and a minimum of 100 jobs are created.
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IDAL AT THE ARAB INVESTMENT CONFERENCE: "INVEST IN LEBANON"
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 The investment challenges currently faced in the midst of the regional political developments and the need to address the socio-economic problems of the region were two key topics discussed at the Arab Investment Conference for Banking, Industry, Tourism and Real Estate.
Keynote speaker H.E. Prime Minister Najib Mikati announced official plans to improve investment incentives for projects in Lebanon. Plans to establish a comprehensive Arab Economic Region were also revealed by the President of the General Union of Arab Chambers H.E. Adnan Kassar.
 IDAL, represented by its Chairman, highlighted current investment opportunities available in key Lebanese sectors such as Agro Industry (which contributes to around 30% of industrial GDP and employs close to a quarter of the national industry workforce) and ICT among others. Efforts are also under way to improve Investment Law No.360 for it to offer incentives that are more in tune with today's investment climate and standards.
In turn, Tourism Minister Fadi Abboud indicated the substantial potential of investments in the tourism sector including eco-tourism, health tourism and Meetings, Incentives, Conventions and Exhibitions tourism. Investment opportunities also exist in three- and four-star hotels, which are must needed in all regions across Lebanon.
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IN THE NEWS | |
 LEBANON TO HOST INVESTMENT CONFERENCE FOR LIBYA
The President of the Lebanese Republic General Michel Suleiman has announced plans to host a conference in November to promote investment in Libya. The announcement was made during the annual session of the UN General Assembly where the President declared that "we (the international community) should not spare any effort to help the Libyan people."
 LEBANON HOSTING EURO-MEDITERRANEAN ANIMA SEMINAR
The ANIMA Investment Network has organized a seminar in Beirut entitled "Local Investment Promotion in the Mediterranean" to better understand challenges facing regional investment promotion and highlight successful initiatives and best practices. IDAL has participated in the "Leadership, Organisational Options and Strategic Visions" session of the event, presenting an overview of its services and future plans.
 3G MOBILE SERVICE LAUNCHED
Telecommunications Minister Nicolas Sehnaoui has launched the testing phase of 3G, with the official launch scheduled within the upcoming two months. This major upgrade in the national telecom infrastructure will have a positive impact on the economy, with an estimate 50,000 new jobs to-be created in the digital economy of Lebanon within the next 3 years.
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The Investment Development Authority of Lebanon (IDAL) is the national investment promotion agency established in 1994 with the aim of promoting Lebanon as key investment destination, and attracting, facilitating and retaining investments in the country. IDAL reports to the Presidency of the Council of Ministers which exercises a tutorial authority over it.
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ANNUAL REPORT 2010
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Our Annual Report is out
Report available
in English or Arabic
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INCENTIVES ZOOM-IN
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Two investment incentives schemes are currently made available by IDAL:
Package Deal Contract (PDC) scheme
Based on:
- project's geographical location
- investment size
- sector type
This scheme, dividing Lebanon into three geographical zones (Zone A, B, and C), provides investors with fiscal related incentives and work permits
Investment Projects by Zone (IPZ) scheme
Based on:
- project's investment size
- number of jobs created
- sector type
This scheme provides investors with fiscal and labor related incentives as well as set-up fees reductions. The investor would also be bound by a contract with the Lebanese government represented by IDAL
Download our Investment Incentives Booklet for more information about offered incentives
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LEBANON
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