News updates

After the closure of the only land route for Lebanese exports to the Arab Gulf countries, Jordan and Iraq, potato farmers in Akkar were left in limbo as to how to market this year harvest, particularly that the domestic market was flooded with foreign, namely Egyptian imports of potato. To this effect, chief of the Cooperative for Potato Growers in Akkar, Omar Hayek, said that some 100 thousand tons of potato which were harvested this year in the northern district of Akkar are still awing to be marketed. He added that the Lebanese market at best, and in the absence of foreign competition, will absorb only 50 thousand tons. Subsequently, some 50 thousand in production will need to be exported. Hayek noted that around 1000 households basically make a living from the cultivation of potato, which represents a key pillar of agriculture in Akkar. However, he lamed that farmers are now drowning in debts whether loans or property mortgage, which they had to incur in order to cover rising production expenses. He added that farmers began their protest three months ago but have not to date received any positive response from the government. Prices which at the opening season were remarkably modest, LBP300 per one Kg, relatively improved in the wake of the farmers’ movement, but remain below what is needed, as one kg of potato is sold at LBP 400 whereas production cost is on average estimated at LBP 450. (As Safir, 28 May 2015)

The Lebanese Cabinet is expected to approve some 14 thousand new jobs in the public sector, particularly in the military and security departments, within the 2015 budget, L’Orient Le Jour daily reported in its Monday issue. These proposed job additions are still under discussion within the Council of Ministers, include 11 thousand jobs in the Army and the Security apparatus. The newspaper pointed out that this new wave of recruitment will result in a 5.5% increase in total public expenditure, which will shoot up to LBP 7100 billion ($4.7billion). In this respect, Finance Minister Ali Hassan Khalil who drafted the budget expressed his regret over the projected increase, noting that it is unusual for the Cabinet to pass such an act which involves the recruitment of 14 thousand people. However, he said, “security considerations could justify the enlistment of military personnel”, but, he added, “We should expect an unwanted direct impact on the public finance.” Likewise, a source close to the Ministry of Economy voiced concerns over the move especially in the absence of a clear strategy for increasing revenues, and wondered if enhancing the capacity and competence of the public administration or the security forces can only be achieved through the recruitment of more personnel. The source went on to say that the new recruitments will result in additional allocations for pension and end of service compensation, which then are bound to surge by 13% this year to reach LBP 2200 billion.
The main new planned jobs and needed funds are the following:
Army: 5000 soldiers costing LBP 72.8 billion in salaries
Security Forces: 4000 civil servants and LBP 58.8 billion
General Security: 1000 civil servants and LBP 15.6 billion
State Security: 500 civil servants and LBP 7.92 billion
Lebanese University: 1213 professor and LBP 52.6 billion
Ministry of Justice: Appointment of 48 judges, recruitment of 534 personnel, and 6 judges and 7 personnel in State ‘Shoura’ Council
Customs Directorate: 413 civil servants and LBP 4.9 billion
Civil Defense Department: 2500 personnel and LBP 42.36 billion.
(L’Orient Le Jour, 25 May 2015)

The Lebanese-American Chamber of Commerce organized the ‘Startup Lebanon’ conference in cooperation with Startup Megaphone organization. The one day event which was held at the iconic Plaza Hotel in New York City was attended by some 300 people representing start-up companies in Lebanon who met with world established investors in the lookout for emerging enterprises in emerging markets. The Head of the Chamber, Saleem Zenee said that the NYC forum drew together prominent Lebanese talents, entrepreneurs, investors and officials with the aim to build a future by mobilizing the hidden potentials of the startup sector in the country. Zenee said Lebanon would see many success stories by ambitious enterprises should they be given the right support and economic environment. For his part, the Lebanese Ambassador to the US, Antoine Chedid, noted that despite the regional turbulence, the losses incurred on the national economy are limited and can still be contained. Likewise, the Central Bank Governor, Riad Salameh, said in a recorded speech to the conference, that the future of Lebanon will rely on three key sectors, namely, finance, petroleum and natural gas and on the knowledge economy. Regarding the latter, Salameh revealed an ongoing plan to develop an electronic stock market that allows startup businesses to issue stock subscriptions for the public, whereby Lebanon would have completed a cycle of required accelerators, funding and the option of selling or logging out. In the same vein, former Finance Minister Jihad Azour spoke about the current conditions of entrepreneurship in Lebanon and the prospects for small and medium startup businesses which he noted roughly represent 93% to 95% of total businesses. The share of enterprises with less than 10 employees is 73%. (Al Hayat, Al Diyar, 23 May 2015)

The ‘Baalbaq Women’s Committee staged a protest yesterday in front of the Serail of Baalbak municipality requesting the resolve of the problem resulting from the suspension by the Ministry of Interior of all construction licenses granted by the municipality. The Women committee called for a fair solution noting that nearly 65% of people of the town work in the construction industry which makes up their basic livelihoods. In its statement, the committee appealed to the Minister of Interior to repeal what it described as an unjustifiable decision, adding that the majority of land in the Baalbak area is not officially registered with the Urban Planning Department and therefore, it is impossible for owners to request the issue of official notification of registration from UPD. The statement went on to say that the only realistic solution to the present impasse is to authorize municipalities to resume issuing construction permits until the matter is resolved in Parliament. Finally, women protesters warned that they will step up their action if their demands were not met. (Al Diyar, 27 May 2015)

The Agriculture Ministry departments kicked off the survey of unregistered as part of its efforts to control and supervise the work of these production units. To this effect, Head of Mount Lebanon Agriculture Department, Abood Freiha, held yesterday a meeting in Jouniyeh start implementing the survey, assessment and monitoring plan in the regions of Jbeil and Kesrwan. The meeting aimed at mobilizing all staff members of the agriculture and forest centers in the above administrative districts. The survey plan provides for assignment of responsibilities for each village or town whereby one officer is appointed with the task of collecting data in one specific constituency. All non-registered food enterprises should fill the registration form in not more than 15 days, according to Al Mustaqbal newspaper. (Al Mustaqbal, 27 May 2015)

Lebanon and Jordan have been rendering the international community a service by hosting the large numbers of refugees fleeing war-ravaged Syria, according to the Regional Director for the Middle East at the World Bank, Farid Belhaj. On his blog, Balhaj pointed out that over 2 million people displaced from Syria are presently living in Lebanon and Jordan, two countries which basically lack the adequate resources for receiving them. Regardless of their resources, Belhaj went on to say, Lebanon and Jordan have embraced the displaced in a manner unprecedented in modern history. In the case of Lebanon, he noted, 25% of its population are now Syrians, against a smaller percentage in Jordan, adding that in the latter cases this can still affect the economic and social fabric of the country. Belhaj described the situation on ground as dramatic, in the absence of a clear timetable for the return of refugees to their homeland. One thing is clear now, he added, that Lebanon and Jordan have become responsible not only for their own citizens but also for millions of refugees. Belhaj cautioned against the impact of demographic shift, primarily noting that the total population of Lebanon has increased from 4.2 to 5.5 million persons in less than three years. He concluded by warning that the international community will have to pay a high price should it continue to turn its back on the two hosting countries.

For the full article, please go to: http://bit.ly/1erxmTZ

(Al Akhbar, 25 May 2015)

Byblos Bank Group published in its weekly newsletter the findings of a World Bank report on borrowing levels among the Lebanese during the year 2014. Figures indicated that 34% of citizens who are 15 years or older have resorted to borrowing, either individually or jointly from sources available to them during that year. Sources of funds varied between commercial banks, financial institutions, family members, friends, private informal lenders among other sources. The report also indicated that the percentage of Lebanese who borrowed money in 2014 placed the country in 103rd position among 143 countries globally, 26th among highest 40 middle-upper income countries, and 5th among 9 developing countries of the Middle East and North Africa. To note, the rate of Lebanese who borrowed money in 2014 remains lower than the global rate of 42%, the rate of 37.7% for middle-upper income countries and of 45.7% for MENA region. The report also revealed that 3.4% of adult Lebanese borrowed money to cover their education or school fees, that is less than the global average of 7.7%, the average of 6.1% for middle-upper income countries and 8.2% for developing MENA countries. (An Nahar, 25 May 2015)

For the first time in Lebanon, the Men’s World Exhibition 2015 kicked off at La Marina Joseph Khoury - Dbayeh under the patronage of Minister of Tourism Michel Pharaon. The event which was organized by three women, Lina Hajj, Joelle Ghannam and Brigitte Khoury, under the management of ‘FEW’ company, hosted some 100 enterprises which exhibited over an area stretching over 3500 square meter. The exhibition showcased many unique and ravishing items in the world of cars, boats, jets, motorcycles, sailing, high-tech equipment in IT and communications, in addition to clothing, sports gear, jewelry, fashion accessories and watches. A number of banks and real estate development companies as well as insurance, tourism and travel companies partook in the event as well. (As Safir, Al Diyar, 23 May 2015)

For millions of young people in the Middle East and North Africa, jobs remain out of reach and unemployment has only worsened in the post-“Arab Spring” turmoil. Regional youth unemployment stands now at 29.5%, one of the world’s highest rates, and represent an increase by 2% in more than one decade according to the International Labor Organization. Starting next Thursday, hundreds of political and business leaders from 58 countries came together for the regional conference of the World Economic Forum where Mideast youth unemployment will be on the top of the agenda. This problem has been the focus of debates regional decision makers for years, but has taken on greater urgency with the growing appeal of Islamist militants and radicalized ideas among desperate young people. Widespread joblessness creates fertile ground for recruitment by extremists, said Samir Murad, a former Jordanian labor minister. There is a high risk that if the unemployed “do not find a decent living, they will look for the alternatives, and the alternative is the so-called Islamic State,” he said. (Daily Star, 22 May 2015)