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Despite the instability and regional turmoil, there is always room for growth and opportunities.
Many Lebanese companies are committed to expanding their operations locally in order to serve not only the domestic market but also the regional. This is a sign of trust in the regulations, policies and general investment climate of Lebanon, among which is the highly skilled labor force and the funding policies put forth by the Central Bank of Lebanon; both of which are proving to be the back-bone of the Lebanese economy.
On parallel levels, many companies are constantly on the lookout to expand to new markets thus the active participation of Lebanese manufacturers in international trade shows such as SIAL Paris who embraced this year around 18 Lebanese exhibitors. On a similar note, a new opportunity to export to Russia has presented itself and IDAL will be organising an informative workshop in that regard.
I hope you will find the information in this issue useful, for any feedback please do not hesitate to contact us.
Best Wishes,
Nabil Itani
Chairman-General Manager
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IDAL GRANTS OMRAN INDUSTRIAL FOOD A PACKAGE DEAL CONTRACT
IDAL granted OMRAN INDUSTRIAL FOOD a package deal contract for their investment project in Zahle, Lebanon. The factory which is developed to manufacture chocolates, biscuits, and candies has an investment size of USD 3 million and is expected to generate 62 job opportunities.
OMRAN INDUSTRIAL FOOD, through the package deal contract which was approved by the Council of Ministers, has been granted the following incentives: a full exemption from corporate income tax for up to 10 years, 50% reduction on work and residence permit fees, and exemption from paying land registration fees.
If you have an investment project in mind, please contact us to check how you can benefit from our incentives and business support services.
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THE AGRO FOOD SECTOR: ACCESSING NEW MARKETS
 The agro-industrial sector is a major contributor to the Lebanese economy. In 2010 (latest available figures), it generated an estimated 32.1% of the industrial sector output and around 3% of the country's GDP, based on National Accounts estimates. With an estimated workforce of over 20,600 it is considered the largest employer in the industrial sector. Agro-food products account for 13.73% of total exports, and have grown in volume at an average annual rate of 12.13% from 2008 until 2013.
The largest share of Lebanese agro-food exports is destined to the Arab Countries (excluding GCC Countries), at 51% of total exports. Syria, Iraq and Egypt rank first second and third respectively within this category. GCC Countries rank second amongst country groups and occupy around 21.3% of total exports, with Saudi Arabia and the UAE as main destinations. Africa ranks third with a share of 12.2% with Angola standing out as a top destination. Western Europe occupies the fourth place, while lower volumes are exported to North America, Asia and Australia. The volume of Agro-food exports has in fact increased by 36% from 2012 to 2013. Particularly interesting is the volume of exports to the non-GCC Arab Countries which have increased by 68% on overall. Exports to Syria have increased by 50% and now constitute around 52% of total exports to Arab Countries (non-GCC), volumes exported to Iraq increased by 242%, to Egypt by 134%, and to Jordan by 18%. This indicates that while the Syrian crisis has had its share of negative impact on the Lebanese economy, it has allowed for increased demand on Lebanese products to compensate the decrease in Syrian exports in these markets. Another notable trend is the increase in exports to the African market; exports to Angola for instance are nearly double the volume of exports to Jordan - the main products exported being within the beverages, spirits and vinegar category.
Accessing new markets
The current Russian ban on most food imports from the U.S., European Union, Canada, Australia and Norway has presented Lebanon with a new opportunity to export to the Russian market. The sanctions encompassed all dairy, meat, fish, fruit and vegetable products. Lebanon is not an exporter of meat and fish nor has the capacity to export these products in terms of volume to the Russian market , however, given that the country's main exports are in agro-food and agriculture, there is definitely a new window of opportunity to seize.
IDAL, in collaboration with the Russian Embassy in Lebanon, is spearheading this initiative by organizing a workshop on 14 November to Lebanese agro-food and agriculture exporters on the opportunities and limitations of exporting to Russia. This workshop, given the interest of Lebanese exporters, will be followed by a possible trade mission to Russia encompassed of targeted B to B meetings between Lebanese and Russian companies.
On the same note, and in order to access new markets and increase exports, IDAL was present along with a delegation of over 18 Lebanese companies at the SIAL Paris trade show from 19-23 October. The Lebanese products showcased consisted of canned food, spices, coffee, beans, pickles, and jams.
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NEW ECONOMIC INDICATORS FOR LEBANON
LEBANON AMONG THE TOP COUNTRIES IN THE WORLD IN TERMS OF EDUCATION
In the latest issue of the Global Competitiveness Report 2014-2015, Lebanon once again showed a good performance, benchmarked against global standards. This year's report highlighted particularly Lebanon's high quality of education, reflected on all academic levels, namely Primary Education, Math and Science, and graduate studies.
In fact, Lebanon ranked 28th globally in the overall quality of the educational system and 5thglobally in the quality of math and science education, making it one of the best sources of talent not only to serve the region but also the international scene. More specifically, Lebanon ranked 28thglobally and 5th in the MENA region in terms of availability of scientists and engineers, again highlighting the high-value added skills that the country can export.
QUALITY OF THE EDUCATION SYSTEM (2014)
Source: Global Competitiveness Report 2014-2015
QUALITY OF THE MATH AND SCIENCE EDUCATION (2014)
Source: Global Competitiveness Report 2014-2015
AVAILABILITY OF SCIENTISTS AND ENGINEERS (2014)
Source: Global Competitiveness Report 2014-2015
Moreover, Lebanon high equality of education starts with Primary Education all the way to graduate studies. Lebanon ranks 16th globally and 3rd in the region in terms of Quality of Primary Education and 17th Globally and 2nd in the region in the Quality of Management Schools available in the country.
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LEBANON'S INDUSTRIAL SECTOR ON THE RISE
258 NEW INDUSTRIAL LICENSES IN THE FIRST HALF OF 2014
According to figures by the Ministry of Industry, 258 new industrial licenses were issued in the first half of 2014, up by 22.9% from 210 licenses in the corresponding period of 2013. Almost 50% of the licenses are in construction, while more than 70% of licenses are related to construction and investments.
MAJOR TYPES OF LICENCES (1H 2014)
Source: Ministry of Industry
In terms of distribution by region, Mount Lebanon grasped the majority of the share of new licenses in the first half of 2014, with 164 licenses, followed by the Bekaa with 49 licenses, South Lebanon with 18 licenses, Nabatieh with 14, North Lebanon with 12 licenses, and Beirut with 1 license.
DISTRIBUTION OF NEW LICENSES BY REGION (1H 2014)
 Source: Ministry of Industry
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ACTIVITIES
WORKING TOWARDS TRANSNATIONAL PARTNERSHIPS
 IDAL, represented by its Chairman,Mr. Nabil Itani, participated in the "Meeting of the International Organization for Migration" organized by the Italian Ministry of Foreign Affairs and held in Rome on October 2 & 3, 2014 in presence of officials, experts and representatives of several expatriate business associations and organizations.On the first day of the meeting, Mr. Itani delivered a speech during a workshop that revolved around "productive investments through multinational partnerships and projects", highlighting the expatriates' efforts aimed to contribute to the development process in their homeland.
LEBANESE PAVILION AT THE SIAL PARIS TRADE SHOW
 IDAL was present this year at the SIAL Agro Food Trade Show which took place in Paris between 19-23 October. SIAL brought together over 7,500 exhibitors from 104 countries, among which is Lebanon with 18 exhibitors, 11 of which were part of the Lebanese Pavilion at the trade show. Lebanon's participation at this event is proof of the competency of the Agro food sector and the importance to open up to new markets, especially the European.
WORKING ON A NETWORK OF ARAB INVESTMENT PROMOTION AGENCIES
 IDAL, represented by its Chairman, Mr. Nabil Itani along with its Legal Advisor Me. Walid Hanna, participated in a marginal meeting among Investment Promotion Agencies (IPAs) from the Arab World in Dubai. The meeting was held to discuss the "Initial Policy Draft Document" to establish an Arab Union that brings together all Arab IPAs in order to ensure knowledge transfer and discussions over investment to the region and ways of promoting the region as a viable investment destination for FDI and inter-Arab investments. |
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ABOUT US
The Investment Development Authority of Lebanon (IDAL) is the national investment promotion agency of Lebanon. Established in 1994, IDAL aims to promote 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.
www.investinlebanon.gov.lb
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