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LEBANON |
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Business opportunities & territorial marketing |
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The majority of foreign investments go to tourism and real estate (luxury hotels, villas, etc.), mainly catering to wealthy Arab tourists suddenly wary of travelling to the US or Europe. But the current wave of reconstruction is taking away from investment in pharmaceuticals, security, construction, education, franchising, and services. Many Lebanese private individuals and corporations are looking for safe investment opportunities overseas. |
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Lebanon |
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Investments -
Lebanon |
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Documents |
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Investment opportunities in Lebanon |
| Tourism |
Arab tourism, health and wellness tourism, convention and business tourism, amusement parks, etc. |
| ICT |
Software development, common services, back office services, call centres, etc. |
| Industry |
Agro-food, furniture, jewellery, cosmetics, clothing, paper and packaging, etc. |
| Agriculture |
Fruits & vegetables, organic products, dairy products, tobacco, olive oil, wine, canned fruits, honey, etc. |
| Health and education |
Private schools and universities, cosmetics, healthcare services, etc. |
| Financial and professional services |
Insurance, communication, advertising, financial services, consulting services, etc. |
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Source: Investor Perception Survey – UNCTAD
Lebanon’s real estate sector is surging, driven by an influx of overseas investment. Construction fever in downtown Beirut and neighbouring districts (Kantari, Gemmayze, Wadi Abou Jmil, Clemenceau-Ain Mreisseh) these past few years has now spread to other residential districts of Beirut (Achrafieh, Ramlet El Baida, Verdun and Raouche).
Apart from ongoing large-scale construction projects along the shoreline and downtown (the Platinum Tower, Beirut Tower I, Marina Towers, Four Seasons Hotels, the Hilton Hotel, the jewellery market) for a total value of US$ 1 billion, more than thirty new tourist and luxury residential projects worth more than US$ 1 billion are scheduled to be launched by the end of 2006. The Kuwait-based Al Sayer Group and its subsidiary Al Dhow Investment Company announced that they would be launching a real estate project in downtown Beirut at a cost of US$ 1 billion, called the Phoenician Village.
Profits earned by Solidere, the company established to rebuild downtown Beirut after the civil war, reflect the real estate boom. The company recorded net profits of US$ 108.5 million in 2005, double the previous year’s figure. Figures for 2005 are remarkably high, given the political turmoil in Lebanon following the assassination in February of former Prime Minister Rafik al-Hariri, founder of Solidere.
The travel and tourism industry is a catalyst for construction and manufacturing. In Lebanon, capital investment for travel and tourism is estimated at US$ 455.1 million, accounting for 12.1 percent of overall investments in 2006. Capital investment for travel and tourism is expected to reach US$ 714.8 million, (11.8 percent of estimated overall investments in 2016).
Al Habtoor Hospitality Group has invested US$ 150 million in Habtoorland. This amusement park was inaugurated at the beginning of 2005 along with the Habtoor Grand Hotel Convention Centre & Spa, located in eastern Beirut. This project is the first phase of the Metropolitan City Centre, at a total cost expected to reach US$ 150 million, including a shopping centre.
Beyond hotels, trade and leisure facilities (amusement parks, casinos, etc.), new activities are booming thanks to affluent customers interested in luxury activities, real estate and communications.
Lebanon's broadcasting scene is well developed, lively and diverse, reflecting the country's pluralism. Beirut, home to a number of television and broadcasting studios, has found new opportunities to promote its know-how in content production through internet. Several Arab portals are hosted in Lebanon and the country offers fairly good telecommunications infrastructure. Several business incubators have been set up to accommodate new start-ups, along the lines of the Berytech technopole.
Lebanon has the human capital and educational system needed to develop “market niches”, for example software production, back-office operations, call centres and “shared services” companies.
To support these activities, IDAL is launching the Beirut Emerging Technology Zone (BETZ), an ambitious initiative aimed at establishing a technology park, including a business incubator for start-ups in ICT and other new technologies. There are plans for establishment of a technology incubator by the Lebanese National Council for Scientific Research as well as a technopole by the University of Balamand. A business incubator for start-ups (Berytech) was established as early as 2001 by Saint Joseph University, which includes a business accelerator for start-up companies and business hosting facilities for already established small and medium-scale companies. Berytech has partnerships with European countries and it is a member of the Network of European Technical Parks.
In addition to Berytech 1 the first technology pole in Lebanon (2002), 4 Business Development Centers (BDC) were launched lately in Lebanon (March 2007):
- Berytech Technology & Health in Beirut - Beneficiary is the University Saint Joseph (USJ)
- South Business Innovation Center (South BIC) in Saida - Beneficiary is the Chamber of Commerce, Industry & Agriculture of Saida
- Business Incubator Association in Tripoli (BIAT) - Beneficiary is the René Moawad Foundation
- Association AGRIPOLE in Bekaa - Beneficiary is the American University of Beirut (AUB).
These four BDCs form the first sustainable national network of business development support services for new and existing SMEs in Lebanon in their respective regions.
Furthermore, the privatisation process offers many opportunities, especially with the transfer of 40 percent of Lebanon Telecom’s fixed telephony lines (the longstanding sole operator) and other privatisation transactions scheduled for 2006, such as production and distribution of electricity, sale of 40 percent of EDL shares, rehabilitation/extension of Beirut’s commercial port and extension of Tripoli’s port, water management projects, municipal solid waste management projects, environmental and infrastructure projects such as airport renovation, upgrading and modernisation. |
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