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Welcome to the April issue,
The first quarter of 2012 ended with great success, through marketing efforts and the delivery of incentives to 3 investment projects.
Efforts were mainly concentrated in promoting IDAL as the go-to institution when looking into investments in Lebanon. Our services & investment incentives were both well exhibited and well received by the audiences at the Arab Net, here in Beirut and the "Accessing Lebanon" event in the UK.
Also, highlighted in this issue is the success story of Invigo, a Lebanese telecommunications company who has been gaining an important presence regionally and globally.
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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COMPLETED PROJECTS 
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During the month of March, IDAL granted incentives to 3 investment projects distributed among the tourism, industry and technology sectors and reached a total investment volume of USD 232 million. These projects, when operational, are expected to generate 452 direct job opportunities and more than 871 indirect jobs due to the various linkages and the ripple effect created by these projects.
The Package Deal Contract (PDC) scheme was delivered to these 3 projects; Inkript Securities, a factory established in Bchamoun, Aley, producer and developer of smart cards and several types of official identification materials with high safety specifications, Algorithm S.A.L, manufacturer of pharmaceutical products is expanding its current production line and establishing a new factory in Zekreet, Keserwan. Finally the Bachoura Company plans to establish a five-star deluxe hotel in Down Town Beirut adding 250 rooms to the area.
IDAL has 2 incentive schemes that investors can choose from; the PDC scheme is mostly catered for large scale projects that have high impact on employment. The requirements are typically higher but the range of incentives bigger.
For more information about the Package Deal Contract incentives, check our Investment Incentives booklet.
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STRENGTHENING TIES BETWEEN THE UK & LEBANON
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On March 29th 2012, the Lebanese Embassy in the UK in collaboration with the Middle-East Association, UKTI and IDAL held a networking event highlighting business opportunities for British investors in Lebanon to increase British investors' interest in the Lebanese market, given that historically Lebanon has served as a springboard for British companies to serve the growing regional markets.
Facts & Figures
- Lebanon is the UK's 2nd largest trading partner in the Levant, the 7th trading partner in the Middle East and the 56th largest market overall.
- British investments into the Lebanese economy had a total estimated worth of £410 million in 2011.
- UK companies have been an important player in the Lebanese economy operating across various sectors. In 2011, 42% of the 100 estimated British companies in Lebanon were operating in the services sector, 17% in the trade sector followed by 13% in the media, 10% in tourism related activities, 10% in telecom, 6% in retail and 2% in the IT sector.
- Trade activity between the 2 countries has been growing at a sustainable rate despite global and regional turmoil. In terms of export activities to the UK, major exported products in 2011 included: pulp and wood (26.8%), machinery (14.1%), base metal (11.6%), prepared foodstuff (11.3%), products of the chemical or allied industries (9.2%).
During the event, several opportunities for investments in Lebanon were presented across 4 sectors that British investors have not yet fully benefited from, namely the healthcare tourism, media, pharmaceuticals and technology sectors.
The following investment opportunities currently exist in the above mentioned sectors:
If you have an investment project in mind, do not hesitate to contact us in order to find out how we can be of help.
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ARAB NET- FOSTERING LEBANON'S DIGITAL MEDIA SECTOR
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 THE ARAB MARKET PRESENTS A WEALTH OF OPPORTUNITIES FOR COMPANIES WITHIN THE DIGITAL MEDIA SECTOR.
In fact, in 2011, Mobile penetration rates in the Arab region were estimated at 97% which is 10% higher than the world's global penetration rate. Less than 1% of content in the Arab region is actually in Arabic, whereas more than 60% of users in the region tend to prefer Arabic content. Moreover, the online platform in the Arab World is expected to be worth nearly $266 million in 2013 and 1 Billion by 2016 (Zenith Optimedia).
With demand for digital content increasing exponentially, Lebanon presents itself as an ideal location for capturing new opportunities in digital media through several competitive advantages, including but not limited to: A WELL-DEVELOPED DIGITAL MEDIA LANDSCAPE, A HIGHLY SKILLED LABOR FORCE AND THE ABILITY TO SERVE THE GROWING MENA MARKET FROM BEIRUT.
It is also one of the most significant digital media landscapes in the Arab world with around 675 companies engaged in software and digital media services and allows for immediate access and a deep understanding of the Middle-eastern market.
The importance of Lebanon in the digital media industry allowed it to attract to Beirut the region's largest digital event of the year; The Arab Net Digital Summit. The summit spread through 5 days (March 27-31) featured panel discussions, specialized workshops, competitions, focused networking sessions and more.
IDAL was present at the highly anticipated event's exhibition days and took on a key participation in the panel discussion "Building a Digital Hub in Lebanon". The discussion was mainly geared towards the role of the government in encouraging the sector's success. The following points were tackled:
- The need to provide the necessary components that would foster the creation of a favorable ecosystem for companies.
- The need to attract key companies that through their presence would encourage other similar companies to set-up shop in Lebanon.
- The need to mobilize government support to kick start the development of Media Cities and Technology Parks.
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| A LEBANESE SUCCESS STORY | |
In every upcoming issue of this newsletter, we would like to take the time to commemorate the regional and international success of a Lebanese company, within the Telecom and IT sectors. The globalization of these companies highlights the opportunity for Lebanon to become an outsourcing destination for the Value Added Services industry due to its qualified labor force and competitive labor costs (among the lowest in the region).
For this month's issue, the spotlight is on Invigo.
 Invigo, founded in 2004, is a Value Added Services provider that delivers Software solutions and Mobile Application to Mobile Operators, all around the world. It also provides Device Management solutions and Roaming services to operators and corporate companies.
Since its inception, more than 50 mobile operators and groups, around the world, have contracted Invigo for its Device Management and Roaming solutions.
Invigo is based in Lebanon (HQ, R&D, and Support Center) and covers the following markets: Middle East, Gulf, Africa, Russia and Eastern Europe, Western Europe, and Central America. Untapped markets are on Invigo's near-future roadmap.
Invigo's cultural openness, a highly skilled labor force and cost effectiveness are three factors that have contributed to its success on an international scale and have allowed it to successfully compete against other multinational companies in the Value Added Services market.
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| ABOUT IDAL | |
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. |
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INCENTIVES ZOOM-IN | |
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 on offered incentives |
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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 on offered incentives
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