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Lebanon and Saudi Arabia Investment Climate in Light of Current ConditionsSaudi – Lebanese ForumMarch 1st and 2nd, 2012
Beirut, Lebanon
2. SAUDI ARABIA: ONE OF THE MAJOR INVESTORS IN LEBANON
Headlines
4. ECONOMIC SECTORS OF INTEREST
5. ABOUT IDAL
3. WHY IS LEBANON INTERESTING TO SAUDI ARABIA
1. IMPACT OF ARAB SPRING ON LEBANON AND SAUDI ARABIA
6. CONTACT US
2. SAUDI ARABIA: ONE OF THE MAJOR INVESTORS IN LEBANON
Headlines
4. ECONOMIC SECTORS OF INTEREST
5. ABOUT IDAL
3. WHY IS LEBANON INTERESTING TO SAUDI ARABIA
1. IMPACT OF ARAB SPRING ON LEBANON AND SAUDI ARABIA
6. CONTACT US
Real GDP Growth decreased sharply for almost all MENA region countries. Saudi Arabia was one of the very few countries to escape that trend…
Source: International Monetary Fund
Real GDP Growth Rates in Selected MENA Countries(2010-2011)
Turmoil Economic Impact Indices on Real Economy (by Country)
In relative terms, Lebanon and Saudi Arabia were however one of
the less impacted countries by the turmoil…
Severe Impact
No Impact
5
5
4
4
3
3
2
2
0
0
0
Syria
Libya
Tunisia
Egypt
Iraq
Bahrain
Lebanon
Jordan
Qatar
KSA
UAE
Source: Bank Audi’s Group Research Department
2. SAUDI ARABIA: ONE OF THE MAJOR INVESTORS IN LEBANON
Headlines
4. ECONOMIC SECTORS OF INTEREST
5. ABOUT IDAL
3. WHY IS LEBANON INTERESTING TO SAUDI ARABIA
1. IMPACT OF ARAB SPRING ON LEBANON AND SAUDI ARABIA
6. CONTACT US
Source: Lebanese Customs
Top 3 Arab Countries of Imports to Lebanon
(2011)
Top 3 Arab Countries of Exports From Lebanon
(2011)
Total Exports to KSA US$ 307.9 million
Total Imports from KSA US$ 531.6 million
Significant trade activity between Lebanon and Saudi Arabia (cont’d)
Coupled with significant Investment activity between Lebanon and Saudi Arabia (cont’d)
Source: Ministry of Economy and Trade
Distribution of Saudi Projects in Lebanon by Sector (2004-2012)Major Investments from Saudi Arabia between
2004-2012Company Name Industry/Sector Year of
EstablishementCheikh Saleh Kamel Trade/Investment 2004
Nesco / Nesco Group for Hotel Investments Tourism 2004Ste Méditerranéenne Des Grands Hôtels Tourism 2004
Zamil Industry/Sector 2004Dallah al Baraka / Albaraka banking group Banking 2005
Gulf Finance Investment Company Tourism 2005Al Tuwairqi Group Industry 2007
Saudi Cables for Marketing Industry 2009
National Technology Group / DirectFN Information Technology (IT) 2010
National Technology Group / DirectFN Services/Trade 2010Frinsinyeh Saudi Arabia Industry 2010
Saudi Globe Med for Medical Forms ICT 2011Oger Liban SAL Construction -
Saudi National Commercial Bank Banking -Movenpick Hotel Tourism -
Summerland Kempinski Hotel Tourism -Rotana Media -
Four Seasons Hotel Tourism -
NON-EXHAUSTIVE
Saudi Arabia’s Investments in the region
2. SAUDI ARABIA: ONE OF THE MAJOR INVESTORS IN LEBANON
Headlines
4. ECONOMIC SECTORS OF INTEREST
5. ABOUT IDAL
3. WHY IS LEBANON INTERESTING TO SAUDI ARABIA
1. IMPACT OF ARAB SPRING ON LEBANON AND SAUDI ARABIA
6. CONTACT US
Favorable Investment Environment: Corporate Tax Rate (%)
(2009)
The Lebanese economy encompasses key business drivers of FDI…
Source: Countries website Source: World Competitiveness Report
Resilient Banking Sector:Soundness of Banks Rankings
(2010)
Sources: Source: Saudi Arabia Central Department of Statistics; Statistics Singapore; Ireland CSO; Statistics Norway; Statistics Canada; Taiwan DGBAS; Abu Dhabi Statistical Yearbook; IMF World Economic Outlook 2006; Booz Allen Analysis
GDP Diversification of Selected Countries
And a highly diversified Economy…
Least Diversified-
2. SAUDI ARABIA: ONE OF THE MAJOR INVESTORS IN LEBANON
Headlines
4. ECONOMIC SECTORS OF INTEREST
5. ABOUT IDAL
3. WHY IS LEBANON INTERESTING TO SAUDI ARABIA
1. IMPACT OF ARAB SPRING ON LEBANON AND SAUDI ARABIA
6. CONTACT US
ITIT
AGRO INDUSTRYAGRO INDUSTRYINDUSTRYINDUSTRY
MEDIA MEDIA TELECOMTELECOM
TECHNOLOGYTECHNOLOGY
TOURISM TOURISM
AGRICULTUREAGRICULTURE
Sectors included in Investment
Law No.360 (*)
(*) Sectors selected for their growth potential and their readiness for development
Economic Sectors with Growth Potential
POTENTIAL INVESTMENTS IN:
Farms: Fisheries &AnimalPackaging & Storage Centers
Sources: Syndicate of Agro Food Sector // Central Administration of Statistics
The country is endowed with the highest proportion of agricultural land in the Middle East.
Abundant water resources allow for intense agricultural activity
Agricultural areas cover around 26% of the Lebanese territory (nearly equivalent to 2770 km2)
Agricultural production contributes to around 4.8 % of GDP
It employs roughly 10% of the Lebanese labor force, and is the fourth largest employer in the country
Key Agricultural products include: Fruits mainly citrus, apples, bananas and grapes, but also significantly olives
Agriculture: Important Export Potential
POTENTIAL INVESTMENTS IN:
Manufacturing plantsBottling facilities
Sources: Syndicate of Agro Food Sector // Central Administration of Statistics
A major contributor to the Lebanese economy
Generated around 32.5% of the industrial sector output in 2009
Has significant employment potential with 23.3% of the industrial sector workforce (30,760 workers)
Accounts for 20% of industrial establishments in Lebanon
Exports of agro-food products equal to 10.9% of total industrial exports
Exports growth at 13% annually since 2001 (despite decline in industrial sector exports)
Agro Industry: Important Export Potential
POTENTIAL INVESTMENTS IN:
Hotels and Leisure FacilitiesHealthcare Tourism
Cultural and Religious TourismBusiness Conferences
Directly accounts for 8% of Lebanese GDP but indirectly to around 34% of the national GDP (because of the indirect effect on the economy)
Capital investments in this sector have amounted to 1.2 billion USD in 2010 (10.2% of total investments) and are expected to rise by 6.2% per annum according to the WTTC (*)
7 billion USD of revenues generated by tourism (20% of country’s GDP)
40% growth in tourists arrival
(*) WTTC: World Travel & Tourism Council
Tourism: Highest Generator of Revenues
POTENTIAL INVESTMENTS IN:
SoftwareHardware
Internet Software ProvidersTelecommunication
Source: Business Monitor International
Estimated size: 287 million USD (2010)
Forecasted to grow by around 11.8% (based on estimates)
Employs around 7,000 people
Over 20% of Lebanese companies are involved in the IT sector (either in hardware, software or as internet service providers)
Mobile penetration rates are in fact among the highest in the region and have totaled 68% by end of 2010
Big potential in business-related applications and web development as well as software development
ICT: Sizeable Potential In Business Applications
POTENTIAL INVESTMENTS IN:
AdvertisingTV ProductionDigital Media
Production Houses
Home to one of the most significant media industries in the Middle East
Advertising expenditure is expected to record growth rates of 8.4% over the next 3 years
Total advertising expenditure constitutes 2.8% of the national GDP
New opportunities in digital media including:
• Online Advertising (e.g. Yahoo buying Maktoob)
• Online Gaming• Online Advertising• Specialized 3D Animation
Media: A New Growing Market
POTENTIAL INVESTMENTS IN:
Hotels, Furnished Apartments & Villas with medical services
SPAs and Beauty CentersGyms and Medical Sport Centers
Nutrition CentersHealth Care
Tourism Park
Skilled and specialized medical staff with 130 yrs of top quality medical experience
Healthy climate with environmental diversity
Sector size estimated by 1.2 billion USD with a 30% growth
More than 15,000 doctors and 270 Hospitals
New opportunities in healthcare tourism including:
• Centers for Alternative Medicine• SPAs and Beauty Centres• Specialized physical rehabilitation
centers• Specialized treatment centers
Healthcare Tourism: A Niche Market
2. SAUDI ARABIA: ONE OF THE MAJOR INVESTORS IN LEBANON
Headlines
4. ECONOMICSECTORS OF INTEREST
5. ABOUT IDAL
3. WHY IS LEBANON INTERESTING TO SAUDI ARABIA
1. IMPACT OF ARAB SPRING ON LEBANON AND SAUDI ARABIA
6. CONTACT US
• The National Investment Promotion Agency of Lebanon
• History – Established in 1994 with the aim of promoting Lebanon as a key investment destination and attracting, facilitating & retaining investments in the country
• Governance – IDAL reports to the Presidency of the Council of Ministers (who exercises a tutorial authority over it) and has financial and administrative autonomy
• Legislature – Investment Law No. 360 was enacted in 2001 to regulate investment activities in Lebanon
About IDAL
THE INVESTMENT DEVELOPMENT AUTHORITY OF LEBANON (IDAL)
IDAL has 3 tools to support investors
Tools Available to IDAL Though Law No.360
IDAL as One Stop Shop for Investors
IDAL to supersede all public administrations, authorities and municipalities in issuing administrative permits and licenses except those granted by the Council of Ministers
IDAL as One Stop Shop for Investors
IDAL to supersede all public administrations, authorities and municipalities in issuing administrative permits and licenses except those granted by the Council of Ministers
ONE STOP SHOP
Fiscal incentives: Exemptions from corporate income tax generated by the investment project
Financial incentives: Fees Reductions on Operational cost:
Non-Financial Incentives: Employees for the project are granted work permits with the support of IDAL
Fiscal incentives: Exemptions from corporate income tax generated by the investment project
Financial incentives: Fees Reductions on Operational cost:
Non-Financial Incentives: Employees for the project are granted work permits with the support of IDAL
PACKAGE OF INCENTIVES
Financing stage Licensing stage
Market Intelligence:
Information on investment opportunities across economic sectors
Data on economic sectors with growth potential
Data on investment climate
Market Intelligence:
Information on investment opportunities across economic sectors
Data on economic sectors with growth potential
Data on investment climate
MARKET INTELLIGENCE
Pre-Investment stage
2. SAUDI ARABIA: ONE OF THE MAJOR INVESTORS IN LEBANON
Headlines
4. ECONOMIC SECTORS OF INTEREST
5. ABOUT IDAL
3. WHY IS LEBANON INTERESTING TO SAUDI ARABIA
1. IMPACT OF ARAB SPRING ON LEBANON AND SAUDI ARABIA
6. CONTACT US
Lazarieh Tower // 4th Floor // Emir Bechir StreetRiad El Solh // P.O.Box 113-7251 Beirut // LEBANON
T + 961 (1) 983306/7/8 F + 961 (1) 983302/3E [email protected] http://www.idal.com.lb
@Invest_Lebanon
Contact Us
THE INVESTMENT DEVELOPMENT AUTHORITY OF LEBANON (IDAL)
