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0 Beirut May 9, 2015 Economic Performance & Investment Environment in Lebanon.

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Presentation on theme: "0 Beirut May 9, 2015 Economic Performance & Investment Environment in Lebanon."— Presentation transcript:

1 0 Beirut May 9, 2015 Economic Performance & Investment Environment in Lebanon

2 1 Outline  Lebanon: The Gateway to the Middle East  A Stellar Economic Performance  Strong Economic and Legal Fundamentals  Investment Opportunities

3 2 LEBANON: THE GATEWAY TO THE MIDDLE EAST

4 3 LEBANON – CROSS ROAD TO EUROPE, ASIA, AFRICA AND THE MIDDLE EAST… Direct Air Services to African Sub- continent home to Direct Access to all European Markets GCC access …. Facilitated by very liberal trade policies

5 4 LEBANON IN FIGURES Overall Country Characteristics Capital Beirut Form of Government Parliament Democracy Official Language Arabic – French Population 4,224,000 Literacy Rate 90% Lebanon Main Economic Indicators 2009 GDP at current prices (USD billion) 34.5 Real GDP growth (%) 8% GDP/Capita ( Current USD) 8,175 Average Inflation Rate (%) 1.20% Exchange rate (LL per USD ) Bank Assets to GDP (% of GDP) 334.1%

6 5 SOLID REASONS TO INVEST IN LEBANON: A STELLAR ECONOMIC PERFORMANCE

7 6 The Lebanese economy has registered a stellar performance over the last few years… REAL GDP GROWTH RATES ( ) Source: International Monetary Fund, World Economic Outlook Database, April 2010 Lebanon Emerging Economies Advanced Economies MENA Countries Worldwide financial crisis

8 7 … and was one of the best performers regionally and internationally despite the global slowdown ANNUAL GROWTH RATES ( ) Source: International Monetary Fund, World Economic Outlook Database, April 2010

9 8 Confidence in the Lebanese economy has sustained with FDI inflows growing at a steady rate of 15% Source: UNCTAD: IDAL Estimates and Calculations 15% CAG R FDI INFLOWS TO LEBANON ( )

10 9 Enabled mainly by strong interests from foreign investors and Arab expatriates particularly in the Lebanese real estate and residential sectors FDI DISTRIBUTION BY SECTOR (2009)

11 10 Lebanon is actually one of the largest recipient of FDI in the region, If we exclude oil rich economies FDI INFLOWS TO MENA COUNTRIES (in 2009) (Bn $) Source: UNCTAD/World Investment Report (WIR)2010 Oil Rich Economies

12 11 Actually Lebanon has the highest degree of internalization with FDI stock as large as the economy FDI STOCK % GDP (2009) Source: UNCTAD STAT

13 12 SOLID REASONS TO INVEST IN LEBANON: STRONG FUNDAMENTALS

14 13 Lebanon is one of the freest economy regionally and internationally due to the lack of restrictions on capital flows Source: World Competitiveness Report RESTRICTIONS ON CAPITAL FLOW (2010) How restrictive are regulations in your country related to international capital flows weighted average Score over 10 How restrictive are regulations in your country related to international capital flows weighted average Score over 10 Ranking FREE MARKET ECONOMY Lowest restrictions

15 14 Lebanon boast one of the soundest banking system in the world, ranking 4 th only after some of the largest economies SOUND BANKING SYSTEM Source: Global Competitiveness Report, SOUNDNESS OF BANKS (2010)

16 15 Lebanon has one of the most favorable taxation environment regionally and internationally CORPORATE TAX RATE (%) (2009) Source: Countries website COMPETITIVE TAXATION ENVIRONMENT

17 16 Lebanon has one of the best educated workforce that is endowed with a top-notch higher education system Education Capability Index Selected Regional countries (2010) The Education Capability Index10 represents CEO satisfaction levels regarding the education system, based on current quality, the adequate skills acquired by students upon graduating, and the ability of the education system to meet future market requirements. Source: ttp://www.educationdev.netwww.pwc.com Number of Higher Education Students per 100,00 Inhabitants (2010) TOP NOTH HUMAN CAPITAL

18 17 The healthcare system is amongst the best performer internationally as measured by the ratio of physicians to population and beds to population Source: WHO Report 2010 Physicians per 10,000 Population – Selected Regional and OECD countries ( ) Beds per 10,000 Population – Selected Regional and OECD countries ( ) QUALITY HEALTH CARE

19 18 The Quality of Life has been an important factor in channeling investments to Lebanon Quality of Life Indicators in MENA (Scale of 100) (2010) Source: International Living The Quality of Life Index is based on variables relating to the cost of living, environment, culture and leisure, political freedom, health, infrastructure, safety & risk. + + LIFESTYLE

20 19 SOLID REASONS TO INVEST IN LEBANON: VAST INVESTMENT OPPORTUNITIES

21 20 Lebanon boast at least 9 sectors with growth potential and readiness for development SECTORS WITH HIGH GROWTH POTENTIAL INFORMATION TECHNOLOGY FOOD & BEVERAGE TOURISM INDUSTRY MEDIA AGRICULTURE TECHNOLOGY FINANCIAL SERVICES EDUCATION Source: UNDP Report Investor Perception Survey

22 21 SECTORS WITH PROMISING POTENTIAL – Overview ICT: Great potential as Lebanon ranks 16 th worldwide for the quality of its education and 7 th for sciences. ERICSSON, US INTEL CAPITAL, NOKIA with operations in Lebanon FOOD AND BEVERAGE: Great export potential for local industry mainly olive oil, wine and processed food– Made in Lebanon Products very successful internationally FASHION INDUSTRY: A booming sector with enormous potential: Designers such as Elie Saab, Rabih Keyrouz, already serving the international market HEALTH CARE TOURISM: Lebanon already attracts health tourists from GCC countries and boasts one of the top notch medical centers in the world and highest ratio of physicians to population in the world PROFESSIONAL SERVICES / CALL CENTERS: Lebanon offers a strategic location for serving the “Levant”/MENA markets, with an educated, multilingual and commercially minded workforce. MEDIA: Significant Hub for the media and entertainment industry; Opportunities in High End Publishing, advertising, TV and audio Production; Promising market due to very young market

23 22 The Investment Development Authority of Lebanon (IDAL) has played an important role in attracting investments to growth promising sectors  Main Authority responsible for promoting Lebanon and attracting investments. Attached to the Presidency of the Council of Ministers  Created in 1994 and Investment Law 360 ratified in 2001  Provides a wide range of services: –Provide economic, financial and legal information important for investors –Grants fiscal incentives and other types of fee reduction to investors –Facilitates the issuance of permits and licenses –Identifies investment opportunities across various sectors –Provide Business Matchmaking Services to investors and entrepreneurs  Follow a sector oriented approach with specialists in growth promising sectors

24 23 INVESTMENT INCENTIVES IN LEBANON offered by INVESTMENT LAW 360 REGION AND SECTOR BASED INCENTIVE JOB CREATION BASED INCENITVE Also called Package Deal Contract Provided to projects based on their investment size and number of jobs created Incentives Provided:  100% exemption of Income Tax and Taxes on Project Dividends for up to ten years  Up to a 50% reduction on Work and Residence Permit Fees  Up to a 50% reduction on Construction Permit Fees  Full exemption from Land Registration Fees Also called Package Deal Contract Provided to projects based on their investment size and number of jobs created Incentives Provided:  100% exemption of Income Tax and Taxes on Project Dividends for up to ten years  Up to a 50% reduction on Work and Residence Permit Fees  Up to a 50% reduction on Construction Permit Fees  Full exemption from Land Registration Fees Also called Investment Projects incentives Provided to projects based on their geographical location across 3 Zone: A, B, C and investment size Incentives Provided:  Up to 100% tax exemptions for 10 years for projects located in remote areas  Work Permits granted Also called Investment Projects incentives Provided to projects based on their geographical location across 3 Zone: A, B, C and investment size Incentives Provided:  Up to 100% tax exemptions for 10 years for projects located in remote areas  Work Permits granted TWO TYPES OF INCENTIVES SCHEMES

25 24 A B C C SectorsMinimum Inv. Size US$ Tourism10,000,000 Industry5,000,000 Agro-Industry2,000,000 Agriculture1,500,000 Technology, ICT & Media200,000 SectorsMinimum Inv. Size US$ Tourism4,000,000 Industry3,000,000 Agro-Industry1,500,000 Agriculture1,000,000 Technology, ICT & Media 200,000 SectorsMinimum Inv. Size US$ Tourism1,000,000 Industry1,000,000 Agro-Industry1,000,000 Agriculture500,000 Technology, ICT & Media 200,000 Regions with Socio Economic Challenges 100% income tax exemption for 10 years REGION AND SECTOR BASED INCENTIVE C 50% income tax exemption for 5 years Beirut

26 25 JOB CREATION BASED INCENTIVE SectorMinimum Inv. Size US$ Minimum Job Created Tourism15,000, Industry10,000, Agro-Industry3,000,00060 Agriculture2,000,00050 Technology, ICT & Media 200,00025 Beirut 100% income tax exemption for up to 10 years + 100% exemption from taxes on project dividends for up to 10 years

27 26 Today a multitude of Foreign Investors are operating in Lebanon

28 27 Thank You for your Attention For queries and more information please contact IDAL at: or Or Visit our Website at


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