Franchising represents 4% of Lebanon’s GDP while EU official calls for domestic protective measures

The Lebanese Franchise Association (LFA) organized a press conference last Tuesday to share the results of the national franchising industry study implemented by the organization with a Euro 160000 grant from the European Union.  The event was attended the EU ambassador to Lebanon, Angelina Eichhorst, and was held under the auspices of the Minister of Economy and Trade, Alain Hakim.

The president of LFA, Charles Arbid, shared the result of the study which was based on a field survey covering hundreds of businesses across Lebanon and which showed that franchises enjoy an important share of 4% in the GDP with a total value of USD 1.5 billion, compared to 2% for the EU and 5% in the USA. The study also indicated that the franchise sector employs 100000 individuals, while the number of franchises in Lebanon reached 1100 units, which operate some  5500 selling points, concentrated mostly in Beirut followed by Mount Lebanon and North Lebanon.  The study also showed that GCC countries are the main export market for franchises (75%) whilst the EU came second with 44%.

Eichhorst noted for her part that 53% of investors, local and international companies are afraid to invest in Lebanon because of the present security situation.  She called on the Lebanese authorities to support the private sector through protecting Lebanese products so that it is able to compete in international markets.  She criticized the fact that a number of legislations related to illegal competition are still pending either in the Cabinet or in parliament including laws on intellectual property and the protection of trade relations.  She also reiterated declared her support to Lebanon’s membership in the World Trade Organisation.

Source: Al-Safir, Al-Mustaqbal, Al-Hayat, Al-Nahar 9 April 2014