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Informal work flourishing amidst weakening law enforcement

8-5-2017

In a special feature on Saturday, Al Akhbar newspaper highlighted the informal work sector in Lebanon which has flourished significantly since the 1990s. Following the government’s decision to suspend recruitment in state jobs, leaders and influential people were inclined to manipulate the laws to their advantage through so-termed ‘contracting’, as a relaxed way to buy political allegiances, Al Akhbar wrote. Such practices, the newspaper said, has sustained the phenomenon of contractors and daily workers in the public sector who presently constitute a wide spectrum of self-employed persons, mostly not covered by health insurance or deprived of social protection. To recall, informal workers are not subject to the provisions of the labor law or income tax legislation, and as such, are not entitled to minimum wage nor to the rights of employment subsidies. In this respect, Al Akhbar mentioned a World Bank report in 2010 estimating the number of informal workers at 56% of the total workforce, noting (the newspaper) that such figures preceded the influx of Syrian refugees into the country. Al Akhbar cited findings of another study on informal work rates by the International Labor Organization (ILO) in 2009, as follows: agriculture (92.5%), construction (72%), transportation (58%), trade (39%) and services sector (15%), but said that such figures have undoubtedly doubled after the elapse of 8 years. The newspaper concluded by pointing to the exaggerated count of Syrian workers in the country in the wake of the refugee crisis, and raised the issue of exploitation by Lebanese employers of the rights of Syrian workers, especially in terms of wages. Business owners, Al Akbar wrote, should be forced to respect the rights of workers of any nationality. It called for changing the racist rhetoric against Syrian labor and adopting a mandate that enforces laws in observance of workers’ rights without discrimination. (Al Akhbar, May 8, 2017)

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Business in Lebanon continues to decline

5-5-2017

The business activity of private sector companies in Lebanon continued to decline with the start of the second quarter of the present year, posting 47.5 in April, a reading below the 50.0 mark which separates growth from contraction, according to BLOM PMI report. Yet, the index has shown improvement from March’s 4-month low of 46.9, pointing to a slight slowdown in the rate of deterioration. April indices indicated a fall in demand on Lebanese goods and services, linked to weakened inflows of new orders, albeit at a slower pace from the previous month. The deterioration, which included another reduction in new orders from abroad, has affected the size of unfinished operations or workloads at Lebanese companies. The said decline in workloads caused further decline in the level of output and production across the private sector during April, extending the current sequence of decline to 4 years, according to BLOM Invest report. But despite this, the rate of deceleration of the business activity was the weakest since January. April also recorded decline in employment and purchasing activity of respondent companies, while an increase in inventory levels continued notwithstanding the drop in the volume of purchases (though the pace of accumulation was the lowest in a period of 4 months). And while noting the drop in the average prices of goods and services for the 25th month in a row in April, BLOM Invest has shown that the rate of decline was shy, in fact the lowest in 15 months. (Al Akhbar, May 5, 2017)

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UAE bans import of polluted Lebanese apples

5-5-2017

The United Arab Emirates (UAE) imposed a ban on the import of vegetables and fruits from Lebanon and other countries, namely Oman, Egypt, Jordan and Yemen due to the high concentration levels of pesticide residues. According to the Emirati Bayan newspaper, the ban targeted basically, the Lebanese apples, all varieties of fruits from Yemen, Egyptian pepper, Omani watercress, melon and carrots, as well as Jordanian cabbage, lettuce, squash, beans, eggplant and cauliflower. In an expounded statement, the Emirati ministry of environment confirmed that the ban will continue until the required safety conditions are met. In this context, Al Akhbar newspaper published a feature by food safety specialist, Dima Faour Klingbeil, who stated that above ban will primarily affect the Lebanese farmers and the disposal of the production which has become a prolonged calamity facing the sector. She attributed the reasons for non-compliance with mandatory health standards to the absence of feasibility regulations designated to counter emerging risks, and to the lack of national standards that identify good agricultural practices that should be observed by local farmers. Klingbeil pointed out that the problem is not confined to the concentration of residual chemicals, but is also related to water pollution in Lebanon. She mentioned a joint study by Plymouth University in England and the American University of Beirut on the safety of fresh veggies and comprised a sample of the farms and washing facilities that are responsible for cleaning vegetable products before transporting them to the wholesale markets. The findings of said study have indicated high rates of faeces contamination in vegetable samples (namely, lettuce, parsley and radish) that have been followed-up from the washing facilities and farmhouses in the Beqaa up to the wholesale stalls. The problem, Klingbeil concluded, is also related to untreated waste water used in irrigation. (Al Akhbar, May 5, 2017)

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Akkar apple growers receive part of compensation

5-5-2017

Despite last week’s threats by apple growers to move the protests to the streets of the capital should the government delay their compensation, the Higher Relief Council (HRC) began distribution of the first segment of allocated sums. To recall, apple farmers have given the authorities a 10-day ultimatum to pay them in full, turning down an offer by HRC director general, Mohammad Kheir, to break up the payment in two installments. The first phase was planned for Akkar on Thursday and Friday. Cheques were distributed among farmers personally or through another person with an authorization approved by notary public. The HRC made clear the estimated sums were agreed in line with a survey conducted by a Lebanese Army’s special committee, noting that the number of beneficiaries in Akkar is nearly 6000 apple growers.  (An Nahar, May 5, 2017)


Previous related news: 

Apple farmers extend a 10 day ultimatum to government
Apple growers to the streets again to claim their compensation entitlements
Local farmers still awaiting their entitlements
Reimbursement of apple growers and the plight of potato growers in Akkar
Back to square one concerning citrus and apple marketing
Agriculture of Lebanon further deteriorates in 2016

 

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Solidere records USD 63 million in profits in 2016

4-5-2017

The real estate and reconstruction of Downtown Beirut company, Solidere, announced in a statement yesterday its fiscal results for 2016 which recorded the total earnings before tax at USD 81.3 million and net profits after deduction of corporate tax at USD 63.1 million. The unified financial report for the year 2016 indicated that the net operating profit after tax reached USD 75.3 million, after adding Solidere’s share from the achieved revenues of the affiliate companies, notably Solidere International (Solidere has 39% share in it), which made USD 36.8 million in net profit in 2016. Solidere’s statement said the above positive results come after the unfavorable results of 2015, but which during the first half of 2016, saw a breakthrough attributed to the rise in land sales. According to the statement, Solidere’s indebtedness to the banks has fallen from USD 683 million in 2015 to USD 606 million by the end of 2016, the statement added, pointing to another current decline to USD 588 million. The company, the statement wrote, has continued its policy of cutting operating expenses, including maintenance and management of rented buildings, in addition to administrative and general expenses, namely cutting down the number of employees in the operational and administrative departments of Solidere. This, the statement said, is in view of a general decline in the size of business and the freezing or suspension of many development projects due to the precarious conditions in the country, the economic slowdown and the weakness of the real estate market. The statement concluded by pledging that Solidere shall continue its balanced policy to achieve its goals, protect the rights and interests of its shareholders, with focus on reducing the operating expenses and striking new sales deals. (Al Mustaqbal, May 4, 2017(

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Innovative agricultural waste recycling projects in Egypt

4-5-2017

In a special feature on Sunday, Al Mustaqbal newspaper brought to light initiatives for recycling agricultural waste in Egypt and turning them into innovative goods. Among these projects, are ‘Nabata’ that turns palm waste into sustainable eco-friendly products and ‘Juzoor’ which recycles date palm midribs into end wood products. A co-founder of Nabata, Islam Yassin, disclosed the main aim behind establishing the company, which is to assist the departments of agriculture and environment in the safe disposal of the waste of date palms that are considered a national wealth to the province of Aswan. Yassin maintained that his enterprise also seeks to create serious job prospects for women in the most marginalized and poor areas in Al Saeed, Egypt. His 36-women production team undergo social and technical training and rehabilitation sessions which enable them to work in an organized way, Yassin said, pointing that 3 of these women work in marketing and sales. On the Juzoor initiative, entrepreneur Mahmud Amir, said the story began 4 years ago with a group of students from Ain Sham University School of Engineering who were designing innovative machines for the recycling of agricultural waste as their graduation project. The journey of Juzoor started with expending the resourceful date palm midribs that lay in waste in the Saeed or are burned (in Egypt alone, over 370,000 tons are burned annually) for the manufacture of sustainable high quality finished wood products targeted for sale. Juzoor, he said, is currently working on demonstrating the durability of palm wood and its ability to compete, as per its distinctive design, excellence and solid nature, in the local and external markets, namely in the GCC states. (Al Mustaqbal, April 30, 2017)

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MP Hariri in favor of reviewing economic policies concomitantly with Syrian reconstruction

3-5-2017

During her opening yesterday of the 25th Arab Economic Forum, MP Bahiya Hariri called for serious preparation for the forthcoming reconstruction of Syria which begins with the anticipated return of security and peace to the neighboring state and for development of a pan Arab roadmap to this effect. Hariri, who represented prime minister Saad Hariri, said the prevailing challenges “urge us to reconsider the fiscal and economic policies in our Arab region and prompt the introduction of required reforms.” She underlined the need to take preemptive measures and prepare the groundwork to attract foreign investments and alleviate the burdens of unemployment on national economy through creation of jobs for the youth. Hariri did not identify the nature of the anticipated changes in economic policies. To recall, the forum was organized by Al Iktissad Wal Aamal Group in cooperation with Banque Du Liban, the Investment Development Authority of Lebanon (IDAL), the Federations of the Lebanese and Arab Chambers of Commerce, Industry and Agriculture and the Institute of International Finance, and was attended by close to 600 participants. On the other hand, labor minister, Mohamad Kabbara, called for increased efforts to secure jobs for the Lebanese people, curb foreign labor competition and strictly apply laws regulating foreign workforce. Kabbara, who represented President of the Republic, Michel Aoun, and PM Saad Hariri at a ceremony organized at the premises of the General Labor Confederation to mark Labor Day, warned that he will not spare any measure to restrain unfair competition and protect Lebanese laborers, in order to sustain national economy and national income. (Al Mustaqbal, Al Diyar, An Nahar, May 3, 2017)

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Fisherfolks in 3abdeh demand re-use of shovel, rakes

3-5-2017

A number of fisherfolks staged a week-long sit-in the port square of 3abdeh, in the northern region of Akkar, to protest a decision banning the use of trawls in fishing. Among participants in the rally, were the mayor of Beinin, Kifah Kassar and head of the Fisherfolks' Cooperative, Abdel Razek Hafzah, in addition to a number of ‘makhatirs’. The protest came in response to the unilateral directive issued 10 days ago by the agriculture minister without coordinating with fisherfolks or providing an alternative tool during the legal term of fishing, according to protesters. During the rally, Hafzah urged ministers of agriculture, interior and defense to repeal what he described as an unfair regulation. “We are not used to blocking roads, but, unfortunately, this decision is threatening the livelihoods of our families and children which primarily depend on this trade for living,” Hafzah warned. Voicing his surprise over such an action, he criticized politicians for “exercising their power impulsively on the poor”. For his part, former mukhtar Mohamad Hosni, demanded justice to the fisherfolks of 3abdeh similar to their peers in Beirut and the South who are allowed to use trawls. (Al Mustaqbal, April 30, 2017)

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Exhibitions & conferences contribute to invigorating the economy

2-5-2017

In its issue of yesterday, Al-Diyar newspaper highlighted a number of conferences and economic seminars currently taking place in Lebanon noting that this is a good indicator as these contribute to invigorating a number of economic sectors notably tourism, trade and investment. This is particularly so in the case of hotels occupancy as well as restaurants turnover in addition to purchasing of goods such as clothing, perfumes, etc… The newspaper further noted that tourism linked with conferences is likely to develop this sector especially that Riyad Salameh, the current Central Bank Governor, is the highlight of such events. Salameh has given addresses in six such conferences where he provided reassurances on the fiscal and banking sectors in Lebanon. Most prominent of such events were a conference on financial inclusion, another on Arab stock markets and the Arab Economic Forum. The latter will open its 25th edition on Tuesday My 25th under the auspices of the Prime Minister and with more than 600 participants from Lebanon and the region. Another key event is the Beirut 7th Franchise Forum which, this year, launched a national strategy for supporting local franchise. In addition, the third international summit for oil and gas will take place on May 3d and 4th and the expatriates conference planned for May 4th. Other events include the international exhibition for construction material and technologies and the protection of the environment (Projects 2017) and the post-Arab transformations reconstruction financing conference to be held in Beil on May 12th and 13th. (Al-Diyar, May 1st 2017)

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Project Lebanon 2017 for Construction Materials & Equipment

28-4-2017

The leading events organizer, International Trade Fairs (IFP) announced yesterday the opening of Project Lebanon 2017 from May 16 to May 19 at BIEL, Beirut under the patronage of PM Saad Hariri. On the 22nd Trade Exhibition for Construction Materials & Equipment for Lebanon & the Middle East, IFP CEO, Albert Ghattas Aoun, disclosed that over 450 companies from 20 different countries have confirmed their participation in the fair, namely, France, Italy, Turkey, Cyprus, Hungary, India, Saudi Arabi and Kuwait. Speaking during a lunch banquet in honor of the media, Aoun revealed that despite the unfavorable circumstances in the region, the construction sector in the country is still steadfast and encouraged by the improving political and security situation as compared to previous years. In view of the enormous number of visitors to the annual event, (22 thousand persons), Aoun described Project Lebanon as one of the largest and most specialized expo in the industry regionally. He added that the event will be held in conjunction with the 7th edition of Energy Lebanon, the International Trade Exhibition for Energy, Electricity, Alternative Energy, Lighting, Solar and Climate Control. Aoun concluded by saying that Project Lebanon is marked this year by a number of parallel activities, most important of which are, Lebanon’s Opportunities and Challenges in the Reconstruction of Syria forum and another forum on solar energy in addition to a pavilion for startups. )Al Mustaqbal, April 28, 2017)

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