News updates

BIFEX 2015 forum held under the title ‘Business Beyond Borders’ reflected the concerns and fears as well as challenges and achievements of the franchise sector in Lebanon amidst the precarious economic, security and political conditions. The event was organized by the Lebanese Franchise Association (LFA) under the patronage of Prime Minister Tamam Salam represented by Ministry of Tourism Michel Pharaon in the presence of the Ministers of Finance, Industry and Labor. The forum noted the need for political and security stability to overcome the present economic hurdles. Pharaon in his address pointed out that the franchise sector secures some 99 thousand jobs accounting for nearly 4% of the Gross Domestic Product, equivalent to USD 2.4 billion. It also showcases an embodiment of Lebanese innovation and creativity which is being exported to over 40 countries, “where on the other hand, many countries in the region tend only to receive and locally market foreign franchise licenses”. Minister of Industry Hussein Haj Hassan praised the fact that the franchise sector contributes to exporting the Lebanese know-how and products thus constituting part of its industrial exports. He confirmed that the Lebanese Industrialists Association has lately appealed for government support of the industrial sector, adding that the latter has the capacity to create some 1500 new jobs every year, and can significantly contribute to reducing the trade deficit which has reached a high of USD 17 billion. For his part, Labor Minister Sajaan Azzi said that through its support to small and medium enterprises to develop new trademarks, LFA is consequently helping in creating new job prospects, cutting back on the emigration of Lebanese workforce but will not be able alone to put an end to the growing level of unemployment that reached 25% overall, and 35% among the youth. (As Safir, Al Diyar, 14 May 2015)

The processing of orange blossom water in Lebanon is a popular trade that many households in Maghdoosheh rely on for their livelihoods. This town is one of very few southern areas that still sustain the traditional profession of distilling and purifying orange flower water to produce 80-100 tons of it annually. Some 300 families are involved in harvesting the orange blossom working together as a family to save labor cost. The growing of citrus trees in Maghdoosheh relies entirely on rainfalls which distinguishes it from other essence waters produced in other areas. However, the current season has not been a promising one as a result of unprecedented snowstorms and late spring seasonal winds that hardly hit the trees prior to their blossoming period. This industry is normally profitable but arduous. It starts with picking the orange blossoms which need considerable physical strength and stamina for long hours of daily work. Extracting the flower water also requires patience. Flowers are collected piece by piece from orchards to be later sieved and sold in the market. The remaining quantities are taken to a state-of-the-art new factory established by Hariri Foundation with funding from USAID and managed by the local cooperative association which buys the orange blossoms from farmers. The Cooperative chief Nabil Khoury noted that the factory produces about 80 tons of blossom water each year and sells one kilogram between LBP 6 and 7.5 thousand according to demand. Khoury pointed out that the flowers are tested in modern labs to ensure quality, adding that the association is also supported by the Ministry of Agriculture and the Lebanese expatriates in New York. (As Safir, 12 May 2015)

A month after the closure of the Nassib crossing at the Syrian-Jordanian borders and the halt of land transport to Arab Gulf countries, agricultural production continues to pile in domestic markets. Potato harvest season in the northern district of Akkar has already started with no prospects for sales outside the local market. In an attempt to seek urgent help, potato growers met Agriculture Minister Akram Chehayeb who expressed his determination to work on finding appropriate solutions to the emerging crisis. The visiting delegation also asked the Minister to mediate with the Investment Development Authority of Lebanon, IDAL so as to raise the support to farmers. According to chief of the Lebanese Farmers Association, Antoine Howayek, the crisis is of general nature as hundreds of thousands of apple boxes have already been stored, while the harvest of lemon, greengage, and herbs that usually start in May are now compromised. According to Al Akhbar newspaper, Howayek estimations of exports from the forthcoming season which will begin this month were as such: 8400 tons of lemon, 14500 tons of potato, 3000 tons of greens and vegetables and 1500 tons of all sorts of other local fruits. These exportable quantities he noted, require 24 trucks on daily basis throughout the month of May, i.e. a total of 720 trucks. The newspaper warned that farmers may stop all harvesting to avoid losses resulting from the slump in production which in turn will bring down prices to below the cost of production. In a related note, Industry Minister Hussein Haj Hassan chaired last Monday a joint inter-ministerial meeting to discuss the government’s support to Lebanese exporters, industrialists and farmers in the case of resorting to sea shipping alternative following the closure of the Nassib crossing. Haj Hassan announced afterwards that the meeting focused on economic facts particularly the extra costs of shipping and extra time. Once gathered, these figures will be submitted to the government to decide on the requested financial assistance for covering the extra costs, noting a positive Cabinet feedback on this matter. (Al Akhbar, As Safir, Al Diyar, Al Mustaqbal, An Nahar, 8,9 and 12 May 2015)

The Order of Nurses in Lebanon organized yesterday, in Sin el Fil, a conference to mark International Nurses Day under the slogan ‘towards building bridges of communication and solidarity for nursing professionals between Lebanon and the Arab countries’. During the event which was sponsored by Health Minister, Wa2el Abu Faoor who was represented by Dr. Bahij Arbid, various data compiled by the Order until 31/12/2014 was presented. The data indicated that the Order had 12522 members, including 10070 women nurses and 2452 male nurses, while noting an increase in the number of the latter. Figures also showed that 84% of male and female nurses were working at hospitals, 4% at clinics and health centers and 2% were recruited by private companies. Also according to the above survey, 78% of those nurses were working in Lebanon and 5% abroad. Furthermore, some 46% were university graduates against 33% holding technical certificates and 19% a technical baccalaureate. The geographical distribution was as follows: 36% in Mount Lebanon, 25% in Beirut, 15% in the North, 8% in the Bekaa, 7% in Nabatiyeh District and the remaining 7% in the South. After the data presentation, Dr. Nuhad Dumit, assistant professor at Rafiq Hariri College of Nursing at the American University of Beirut, pointed out that the immigration of nurses from Lebanon is not only the result of an aspiration for better pay, but also for a more promising working environment and better working conditions. Search for career improvement and on-going education were also central. Dr. Mohamad Alameddine, an associate professor at the Faculty of Health Sciences, AUB, disclosed that 81% of nurses were subjected at least once to verbal abuse in one year and 26% to physical violence and this according to a study published in 2011 on ER departments at six main hospitals in Lebanon. Likewise, Matilda Azar, a lecturer at Balamand University revealed that 70% of participants in another survey that targeted some 1053 male and female nurses were subjected to violence one to five times every month. Studies indicated that physical abuse came mainly from patients, then their families, followed by physicians. Azar went on to say that violence is physically and emotionally distressing for nurses and could lead to poor nursing care, increased professional mistakes and a desire to drop the profession. (As Safir, An Nahar, Al Mustaqbal, 13 May 2015)

Farmers in the border areas appealed to the government to ease restrictions on the entry of Syrians to Lebanon as this has led to a shortage in Syrian labor, after affecting the status of Syrian workers living in the country since 2000. According to As Safir newspaper, agriculture in the borderline plains relies by 90% on Syrian agricultural workers who live in tents in the open fields. One farmer, George told the newspaper that Syrian workforce have always constituted a basic pillar of the farming sector in view of its low labor cost and considerable farming expertise. The number of men and women workers, he said, ranges between 350 and 450 thousand Syrian laborers of all ages. He noted that in the past he used to bring some 50 workers through a ‘Shaweesh’ middle person and under reasonable terms. Today’s lengthy legal procedures require quite a large amount of work on the part of Lebanese sponsors. These include the payment of some LBP 300 thousand for each worker; the submission of property ownership documents; a supporting document signed by the public notary, providing a housing facility, and pledge not to register the Syrian worker as a UNHCR beneficiary. George explained to As Safir that the complicated measures have resulted in the return to Syria of nearly 80% of Syrian workers who left their farming jobs behind in the absence of an alternative. Based on the above facts, farmers have expressed their objection to the new measures in a series of protests and meetings with the concerned authorities with the declared aim of dissociating the issue of Syrian farm workers from the overall issue of refugees, while warning of dire consequences on the agriculture sector in Lebanon. (As Safir, 9 May 2015)

On the occasion of Labor Day, the Lebanese Forces Trade Unions organized a seminar in the Beirut suburb of Furn El-Chebak under the slogan ‘No state… No Jobs’. The main panelists included former minister Charbel Nahas, president of the Lebanese Industrialists Association, Fadi Gemayel and LF Chief Advisor for Economic Affairs, Ghassan Hasbani. In his intervention, Nahas warned of an imminent radical change in the social structure of society, he said Lebanon comprises some 1,500,000 economically active persons, 200,000 of whom are civil servants or work for the government in one way or the other and 1.3 million workers who are divided evenly between foreigners and Lebanese, which means that the current labor force is largely foreign based. He referred to a survey conducted earlier in 2011 in coordination with the World Bank and the Central Administration for Statistics, which indicated that almost half of the labor force in the country are of limited educational level and are currently recruited by enterprises of modest production capacity. On the other hand, Gemayel described the economic growth in Lebanon while noting the impact of the current presidential vacuum on this growth. He added that with the current size of the economy stands at USD 47 billion and that total bank assets have reached USD 176 billion, in a country that boasts a unique high level of social advantages and unparalleled high human capital. However, he regretted, that the present economic reality of people is far from being satisfactory, and disclosed that the Association of Lebanese Industrialists is preparing a comprehensive vision for salvaging the economy. For his part, Hasbani outlined five key elements needed for economic growth: First, a unified government with ministries working jointly to ensure the application of the law and to combat monopoly, secondly, a full geographic and economic sovereignty by the state which will allow it to collect the needed revenues, thirdly, respect of private property of citizens and observance of the law, fourthly, adherence to the policy of nonintervention by the state in the market, and finally, a high level of human productivity by institutions that comply with the law and maintain high work ethics. (Al Diyar, 9 May 2015)

Al Diyar Daily published today an article featuring a survey on spending on luxury and necessity items by the Lebanese for the year 2012. The survey, which was conducted by the Central Administration of Statistics in cooperation with the World Bank, indicated that spending on housing had the lion’s share, accounting for 28.50% of which 46.2% represented spending on rent, electricity and gasoline bills. According to the study, spending on food was estimated at 18-22 %, followed by transportation which scored 13.1% and which reached in some cases 15% of the total income of persons residing in areas far from the capital. Spending on medical care reached 7.82%, distributed as such: 53% for the purchase of medications and 24% for hospitalization bills. The newspaper citing the study’s findings, said that spending on education recorded a considerable decline, 7.68% in 2005 against 5,86% in 2012, while noting that with 7% this share was higher in Beirut and Mount Lebanon and as low as 4% in the Northern areas. The survey went on to say that spending on fashion and accessories is high at a rate of 5.38% which is quite close to spending on education. Finally, the study revealed that the Lebanese spending on alcoholic beverages and tobacco products was equivalent to 1.6%. Likewise, annual average purchase of cigarettes by one family in one year was estimated at USD309.12. In summary, the study concluded by saying that Lebanese from both sexes spend on luxuries and necessities nearly equally. (Al Diyar, 8 May 2015)

The Lebanese Syndicate of Poultry Producers and the Syndicate of Poultry Farmers in Baalbak - Hermel held yesterday a joint press conference in which they appealed for urgent support of some 300 producers whose livelihoods are threatened by smuggled Syrian produce across the Beqaa borders at the point of Hermel - Qusayr. According to An Nahar newspaper, nearly 800 boxes of eggs are entered illegally every day via the town of Hosh Sayyed Ali in Hermel, resulting in the fall of prices of domestic produce to below the cost of production. The newspaper reported that the selling price of one 12-box pack of eggs dropped to $18 only to rise again to $22 with the improvement of the Syrian currency exchange rate. In this respect, chief of the Syndicate of Poultry Producers, Musa Freiji, disclosed in his statement that the list of names of egg smugglers was conveyed to the Finance Minister. Furthermore, Freiji also pointed out to the crisis in the Lebanese poultry sector as a result of the halt of all export activity because of the war in Syria. He noted that quantities smuggled into Lebanon from Syria make up about one quarter of the daily Lebanese production. “What is worse,” he said is the competition that we are now facing in Iraq from Ukraine poultry products which have effectively replaced previous Lebanese exports to that country. He also expressed concerns over the harmful impact of smuggling on the health of citizens since the smuggled products carry no information as to their source or expiry dates. (An Nahar, 8 May 2015)