We have started off the new season with a series of outreach activities aimed at reaching out to our investors and stakeholders in order to check on their needs, look together for investment opportunities, and solve any issues they might be encountering in that regard. Subsequently we have met at IDAL with stakeholders from the Business Process Outsourcing industry prior to our participation at the International Outsourcing Forum in France in order to brainstorm together on the best way to promote Lebanon and to diagnose their needs and look into an action plan to improve the industry's environment.

In this issue you will also find an overview of the booming printing industry and the potential of Lebanon to cater to investments in high-end, security, and packaging printing. Featured in this issue is also a release of Lebanon's Call Center Directory which holds basic information on the main players in the market.

I hope you will find the information useful, for any feedback please do not hesitate to contact us. 

Best Wishes,

Nabil Itani

Chairman-General Manager

SECTOR OVERVIEW

Printing activities in Lebanon are mostly geared towards commercial (e.g., newspapers, books, leaflets, etc..) and industrial purposes (such as packaging). There are 10 large players that dominate the market and cater to the local and international markets; two of which specialize in packaging.

TRADE ACTIVITY

Lebanon is a net exporter of printed matters. Export partners are Syria and Iraq, but also GCC and North African countries. Together, they account for more than 60% of total exports. New markets are being formed nonetheless in West Africa and Europe with key players already exporting to these destinations. On the other hand, Lebanon imports printed products mainly from France, the United Kingdom, and the United States.

COMPETITIVE ADVANTAGES

• Relative Cost Competitiveness: the labor cost for a qualified operator in Lebanon carries about a 40% advantage over an Eastern European location.
• Legal Framework: Lebanon enjoys greater legal assurances for the freedom of expression compared to its regional peers making printing in Lebanon a good proposition for publishers in surrounding countries. 
• Strategic Location: Lebanon's location allows for strong export potential - particularly in the GCC, European and African markets
• Well Established Industry: Owing to the industry's historical position as the printing hub in the region, local printing presses have organically grown expertise and regional presence over time and remain well positioned in the region with branch offices in the GCC, West and North Africa.

MARKET TRENDS & OPPORTUNITIES

Three major trends define and shape the prospects of the local printing industry:

1. The relocation of outsourcing destinations: With the advance in technology, shorter transportation distances and better cultural proximity, the Middle East is slowly gaining ground against East Asia in terms of attracting print jobs from Europe.  Christoph Fischer, the MAN Roland delegate for the MENA backs this assumption based on company sales figures, indicating that "the Middle East is gradually turning into the outsourcing destination for Europe".   
2. Growing regional market: Total printing revenues in the region are expected to grow to US$ 7 billion by 2015. This growing market and particularly in the Gulf, is generating new opportunities for Lebanese printing firms, notably in specialized and high-added value products.
3. Digitization of the industry: The worldwide printing industry is faced with structural changes stemming from the increasing use of digital printing and a resulting drop in the amount of printing. Companies are therefore starting to embrace new technologies that would optimize cost and increase the revenue base.

INVESTMENT OPPORTUNITIES

As such the following opportunities can be singled out:

• High-End Printing : With future regional printing demands, the focus will remain on quality, service and innovation. Based on its competitive advantages listed above, Lebanon is able to compete through the production of high end printing products. "the future of the printing industry in Lebanon will be dependent upon its ability to deliver high end products". Mr. Hicham Itani, CEO of Inkript.
• Packaging Print: Today only two players amongst the top 10 players in the industry are involved in packaging print. This sector includes a promising potential especially given a prominent agro food industry which serves as a prime client for packaging industries.
• Security Printing: it deals with the printing of items such as ballot papers, banknotes, passports, lottery tickets, identity cards etc. Currently there are few security printing producers in the region. However, the main competition comes from Europe, Australia, UK, Turkey and the US. The low competition in this sector represents a good opportunity for Lebanese firms to grow, and get introduced in the regional market.

VISIT OF AMBASSADOR OF MEXICO TO LEBANON

IDAL received a courtesy visit from the Ambassador of Mexico to Lebanon, Mr. Jaime Garcia Amaral.

The visit aimed at enhancing business relationships between both countries, especially that Mexico holds a large Lebanese diaspora that could act as a liaison in establishing businesses and forging partnerships. The main issue discussed involved the various obstacles to export to Mexico from Lebanon and ways to facilitate such transactions, in addition to organizing mutual investment and trade missions.

IDAL TOURED PACKAGING HOUSES IN THE BEKAA

Chairman of IDAL has toured the packaging houses in the Bekaa that fall under the Agri Plus Program, the program that is managed by IDAL for agriculture export development. The tours come as part of a routine quarterly visit to oversee the developments and improvements of the packing houses and to ensure their compliance with the criteria and standards set forth by the program. All packing houses visited have voiced their readiness to develop their business and work towards quality certifications for production and packaging.