News updates

The International Monetary Fund anticipated in its ‘fourth article mission’ report on Lebanon a growth by 2% for the economy this year. IMF Executive Council said the ongoing war in neighboring Syria has dominated the economic outlook in Lebanon especially with the growing number of Syrian refugees presently which currently account for ¼ of the Lebanese population. The refugee crisis, it added, has drained the local communities adding to the poverty and unemployment and is troubling the already fragile economy, public finance and the infrastructure. The IMF report went on to say that the conventional sectors responsible for Lebanon’s growth, like tourism, real estate and construction have received a severe blow with imminent recovery or growth by 4% unlikely before 2019. It also noted a drastic decline in inflation during 2014 due to the decline in oil prices among other factors, but expected it to rise again to 3% by the end of this year. Concerning public finance, IMF noted unusual influences that allowed the accumulation of an initial surplus in 2014 (amounting to 2.5% of GDP) which however came unaccompanied by practical and decisive steps. Accordingly, the report expects that initial surplus in the balance of payments will turn around into a deficit of 1.25% of GDP by the end of 2015 while public debt continue to grow reaching nearly 132% of GDP. (Al Hayat, 2 July 2015)

The School of Pharmacy at Saint Joseph University organized yesterday its first forum on professions at the Medical Campus in Beirut with the participation of 14 pharmaceutical companies. USJ President, Salim Dakkash, stated in his opening address that the function of the pharmacist is no longer limited to drug fabrication at his facility but has become a vital provider and trained expert on the rational use of medicine aided with precautionary advice. The pharmacist he added has also become a leading researcher at big pharmaceutical factories working for the advancement of science and for the combination of most effective medicinal drugs. For her part, the Dean of the Pharmacy School, Marianne Abi Fadel, pointed out that sub specialties such as medical, industrial and hospital pharmacy, pharmaceutical marketing as well as scientific research in pharmacy, are becoming more in tune with the constant development of the profession and hence are opening broader careers on the national, regional and international levels. (Al Mustaqbal, 2 July 2015)

Finance Minister Ali Hassan Khalil represented by Dr. Wassim Mansuri sponsored the completion of a project aiming at the development of capacities of small and medium enterprises in the field of public procurements implemented by the Bassil Fleihan Institute in cooperation with the Ecole Superieure des Affaires (ESA) and the World Bank. Mansuri noted that the said-project succeeded in enhancing the skills of some 55 participants from the category of company owners and executive officers belonging to 48 SMEs in Lebanon. He underlined the current efforts to modernize and rehabilitate public procurement processes as it stimulates the reform of the public finance administration and promotes transparency, monitoring and accountability. For his part, the Regional Integration Consultant for the World Bank indicated that the present WB program is implemented in 8 countries, including Lebanon, and aims at expanding the involvement of SMEs in public procurement, given the vital role that these enterprises plays in the Arab economies. He went on to say that SMEs around the globe play an important role in creating jobs and in reducing the rate of unemployment. However, he pointed out to a number of challenges that impede SME’s participation in public procurements, mainly complicated and exorbitant tenders, and weak public procurement systems, lack of capacity and assessment benchmarks, among others. (Al Diyar, 1 July 2015)

The ‘Authentic Chouf’ initiative was launched jointly between the Lebanese Franchise Association LFA, the Association of Chouf Merchants, Beitiddine Festival Committee and the Association of Al Chouf Cedar Nature Reserve and in cooperation with the ministries of tourism and economy. The campaign (www.authenticshouf.com) aims at stimulating economy and tourism in the Chouf area through highlighting the authentic and distinctive cultural, historic, religious, heritage and ecological features of an area extending from the Chouf coastal line up to the cedars of Baruk highlands. The launching ceremony was held at Mir Amin Castle, in Beiteddine, during which LFA Chief Charles Arbid stressed the significance of the ‘Chouf’ slogan as a distinctive point of reference for made-in-Chouf goods and services with the aim to enhance quality in compliance with international standards and later prepare them for export. In this respect, Agriculture Minister, Akram Chehayeb who is also the vice president of Chouf Cedar association pointed out that agriculture remains a basic component of the area’s economy supporting hundreds of households, adding that rural eco-tourism helps in the local marketing of agricultural products. (An Nahar, 1 July 2015)

The minister of health Wael Abu Faoor announced in a press conference yesterday the beginning of implementation of the quality rating program for Lebanese restaurants in agreement with the syndicates of owners of restaurants and hotels and the federation of syndicates of tourism institutions and as part of the ongoing food safety campaign. Abu Faoor presented the objectives of the program which are as follows: underscoring the positive image of Lebanese restaurants; motivating food industry establishments; enhancing and raising the quality of food; reducing incidents of food poisoning and improving hospitality services in general. The health minister explained that the program will start from Beirut with a team of 11 inspectors who are expected to visit over three phases some 931 establishments in the capital. The first phase includes conducting a preliminary assessment and taking notes that will be passed to the involved restaurant. A second assessment documenting any relevant improvements to be followed by a third which will be conducted after three months from the first and at the end of which, the restaurant will be classified in terms of quality as per a list of criteria, including: location of food preparation, delivery and presentation, staff performance, disinfecting and hygiene, sanitary facilities, locker rooms and routine tests for water and food… Scores will be given to restaurants according to compliance with the above mentioned benchmarks before final accreditation as silver (80-90% compliance), platinum (over 90%) or no certification (below 80%). Abu Faoor stressed that certificate should be posted at the entrance of the restaurant where it should be visible to clientele. Abou Faoor concluded by announcing a new decision in agreement with trade unions concerned that requires all establishments involved in preparing or serving food to enroll at least one of their fixed-term employees in regular food safety training workshops. Implementation of the decision will go in effect as of the first of next September, he added. (Al Diyar, Al Mustaqbal, 30 June 2015)

Al Ahli Holding Group’s Corporate Social Responsibility division launched the World Youth Day for 2015 in partnership with Mohammad Bin Rashid Institute for the Development of Small and Medium Enterprises. ‘Tabaadol, a Lebanese youth group, represented by students Lia Karah, Grace Sawma and Imad Suleiman, won the international competition. The group was trained for 7 days in preparation for the final contest along with six other teams from Jordan, United Arab Emirates, Argentina and the United Kingdom. Towards the end of the forum, Mohammad Khamas, Al Ahli CEO received the winners at the Dubai HO and handed them a ten thousand USD cheque award. Expressing their gratitude and pleasure in winning the award, the Lebanese team described it as an opportunity to launch their forthcoming social initiative targeting the unemployed, retired and housewives within the age group of 40 years and above. For her part, Lina Hurani, chief of the social responsibility division explained that the organization’s projects are aimed at training youth on leadership and entrepreneurship serve the sustainability of their community. (Al Mustaqbal, 30 June 2015)

Beqaa farmers and exporters of agricultural products in collaboration with the Syndicate of Refrigerated truck drivers in Lebanon staged a sit in last Saturday on the main Shtaoura - Beirut highway in the Eastern Beqaa region during which they destroyed some of their produce to protest against the presently dire situation and to demand swift support of maritime and air transport. The protest followed a large meeting that was held at the HQ of the Association of Beqaa Farmers in Riyyaq that was headed by Ibrahim Tarshishi, the head of the association who outlined the various problems facing these economic sectors namely: the frost storms which hit the region last April and which devastated almost half of the production; the 85-day long closure of the land transport routes with no clear prospects yet for government financial support to alternative sea route, and finally the persistent smuggling of goods through the Hermel and Tripoli border points. During Saturday’s protest, MP Assem Araji echoed the plight of farmers noting to their large outstanding debts to the banking sector, which could lead them to prison. Likewise, head of the Syndicate of Refrigerated Truck Drivers Omar Al Ali appealed to the Interior Minister to bar the entering to the Lebanese sea ports of empty non-Lebanese refrigerated trucks so that they do not compete with Lebanese trucks, and to restrict the transport of goods from Lebanon to Syria to those Lebanese trucks owned by Lebanese persons. (Al Diyar, An Nahar, As Safir, 26 and 28 June 2015)

The Lebanese-American Renaissance Partnership (LARP) in cooperation with the Lebanese-American Chamber of Commerce organized a conference on Lebanon’s political neutrality as well as other economic and development topics. The event held in Beirut is the third of its kind bringing American business people of Lebanese origin with the purpose of enhancing networking between Lebanese-American companies and Lebanon. The event also aimed at developing work prospects between companies in Lebanon and their US counterparts as well as motivating both the public and private sectors to launce initiatives that will stimulate economic growth. Furthermore, the conference sought to secure grants to government-run institutions as well as to non-government organizations. During the conference, an in-kind donation (uniform collection) to the Lebanese Civil Defense Service was announced and several seminars and interventions organized involving some 15 Lebanese and American government officials and economic experts. (An Nahar, 27 June 2015)

Alfa for Communications held last Friday its annual media Iftar under the patronage of Communications Minister Boutros Harb. In his welcoming speech, Alfa Chair and CEO, Marwan Hayek, revealed that the company has succeeded in expanding its services to nearly 2 million subscribers over 20 years, a growth which represents 3.5 times more than the total number of subscribers in 2009 when Orascom Telecom took over the management of Alfa. The latter, he said, offers its services through a wide network extending to over 2700 relay stations with 99% coverage across Lebanon. He went on to say that this huge progress in the number of clients has resulted in an upsurge of mobile service incidence in the country from 35% in 2009 to some 94% at present. Hayek pointed out that the communication sector constitutes a basic pillar of the national economy, accounting for about 9-10% of the Gross Domestic Product. He disclosed that mobile services alone account for 3.27% of the nominal domestic product, a figure which is the highest in MENA region. Finally, Hayek disclosed that Orascom Communications has created some 500 new direct jobs over the past six years. (Al Diyar, 27 June 2015)