Transcript Eng. Nabil Itani, Chairman and Managing Director, Investment

Lebanon and Saudi Arabia Investment Climate in Light of Current Conditions
Saudi – Lebanese Forum
March 1st and 2nd, 2012
Beirut, Lebanon
Headlines
1. IMPACT OF ARAB SPRING ON LEBANON AND SAUDI ARABIA
2. SAUDI ARABIA: ONE OF THE MAJOR INVESTORS IN LEBANON
3. WHY IS LEBANON INTERESTING TO SAUDI ARABIA
4. ECONOMIC SECTORS OF INTEREST
5. ABOUT IDAL
6. CONTACT US
Headlines
1. IMPACT OF ARAB SPRING ON LEBANON AND SAUDI ARABIA
2. SAUDI ARABIA: ONE OF THE MAJOR INVESTORS IN LEBANON
3. WHY IS LEBANON INTERESTING TO SAUDI ARABIA
4. ECONOMIC SECTORS OF INTEREST
5. ABOUT IDAL
6. CONTACT US
Real GDP Growth decreased sharply for almost all MENA region
countries. Saudi Arabia was one of the very few countries to
escape that trend…
Real GDP Growth Rates in Selected MENA Countries
(2010-2011)
Source: International Monetary Fund
In relative terms, Lebanon and Saudi Arabia were however one of
the less impacted countries by the turmoil…
Turmoil Economic Impact Indices on Real
Economy (by Country)
Severe Impact
Syria
5
Libya
5
Tunisia
4
Egypt
4
Iraq
3
Bahrain
3
Lebanon
2
Jordan
2
Qatar
0
KSA 0
UAE
0
No Impact
Source: Bank Audi’s Group Research Department
Headlines
1. IMPACT OF ARAB SPRING ON LEBANON AND SAUDI ARABIA
2. SAUDI ARABIA: ONE OF THE MAJOR INVESTORS IN LEBANON
3. WHY IS LEBANON INTERESTING TO SAUDI ARABIA
4. ECONOMIC SECTORS OF INTEREST
5. ABOUT IDAL
6. CONTACT US
Significant trade activity between Lebanon and Saudi Arabia
(cont’d)
Top 3 Arab Countries of Exports From Lebanon
Top 3 Arab Countries of Imports to Lebanon
(2011)
(2011)
Total Exports to KSA
US$ 307.9 million
Source: Lebanese Customs
Total Imports from KSA
US$ 531.6 million
Coupled with significant Investment activity between Lebanon and
Saudi Arabia (cont’d)
Major Investments from Saudi Arabia between
2004-2012
Company Name
Industry/Sector
Cheikh Saleh Kamel
Trade/Investment
Year of
Establishement
2004
Nesco / Nesco Group for Hotel Investments
Tourism
2004
Ste Méditerranéenne Des Grands Hôtels
Tourism
2004
Zamil
Industry/Sector
2004
Dallah al Baraka / Albaraka banking group
Banking
2005
Gulf Finance Investment Company
Tourism
2005
Al Tuwairqi Group
Industry
2007
Saudi Cables for Marketing
2009
National Technology Group / DirectFN
Industry
Information Technology
(IT)
Services/Trade
National Technology Group / DirectFN
2010
2010
Frinsinyeh Saudi Arabia
Industry
2010
Saudi Globe Med for Medical Forms
ICT
2011
Oger Liban SAL
Construction
-
Saudi National Commercial Bank
Banking
-
Movenpick Hotel
Tourism
-
Summerland Kempinski Hotel
Tourism
-
Rotana
Media
-
Four Seasons Hotel
Tourism
-
Source: Ministry of Economy and Trade
Distribution of Saudi Projects in Lebanon by Sector
(2004-2012)
Saudi Arabia’s Investments in the region
Sudan
• KSA is looking into investing in Sudan's agriculture sector with large cereal
crops to be exported back to the Kingdom.
Turkey
• KSA has been highly involved in the Turkish market with more than 170
Saudi companies currently operating in Turkey within the following sectors:
textiles, food, banking trade, real estate, transportation and tourism.
Egypt
• KSA has built several strong ties with Egypt over the years. It is currently
investing in their agricultural, industrial, IT, financial and touristic sectors.
India
• India is a new market that KSA has grown interest in. It has looked for
business opportunities within the oil & gas, power, construction, fertilizers
and tourism sectors.
Jordan
• KSA is conducting several projects within the petrochemical sector as well
as the information technology sector.
Lebanon
• Tourism, Real Estate, Healthcare, IT, Banking.
Headlines
1. IMPACT OF ARAB SPRING ON LEBANON AND SAUDI ARABIA
2. SAUDI ARABIA: ONE OF THE MAJOR INVESTORS IN LEBANON
3. WHY IS LEBANON INTERESTING TO SAUDI ARABIA
4. ECONOMIC SECTORS OF INTEREST
5. ABOUT IDAL
6. CONTACT US
The Lebanese economy encompasses key
business drivers of FDI…
Favorable Investment Environment:
Resilient Banking Sector:
Corporate Tax Rate (%)
(2009)
Soundness of Banks Rankings
(2010)
Source: Countries website
Source: World Competitiveness Report
And a highly diversified Economy…
GDP Diversification of Selected Countries
Least Diversified
-
AD
Most
Diversified
+
KSA
Singapore
lebanon
Ireland
Taiwan
Norway
Canada
Mining & Quarrying
Manufacturing
Government services
Construction
Trade, Restaurants, Hotels
Real Estate
Banking & Insurance
Transport & Communication
Agriculture
Electricity, Gas & Water
Other
Tax
Distributive Sectors
Commodity Sectors
Sources: Source: Saudi Arabia Central Department of Statistics; Statistics Singapore; Ireland CSO; Statistics Norway; Statistics Canada; Taiwan DGBAS; Abu
Dhabi Statistical Yearbook; IMF World Economic Outlook 2006; Booz Allen Analysis
Headlines
1. IMPACT OF ARAB SPRING ON LEBANON AND SAUDI ARABIA
2. SAUDI ARABIA: ONE OF THE MAJOR INVESTORS IN LEBANON
3. WHY IS LEBANON INTERESTING TO SAUDI ARABIA
4. ECONOMIC SECTORS OF INTEREST
5. ABOUT IDAL
6. CONTACT US
Economic Sectors with Growth Potential
INDUSTRY
AGRO INDUSTRY
TOURISM
AGRICULTURE
IT
TECHNOLOGY
TELECOM
MEDIA
Sectors
included in
Investment
Law No.360 (*)
(*) Sectors selected for their growth potential and their readiness for development
Agriculture: Important Export Potential
 The country is endowed with the highest
proportion of agricultural land in the
Middle East.
 Abundant water resources allow for
intense agricultural activity
 Agricultural areas cover around 26% of the
Lebanese territory (nearly equivalent to
2770 km2)
 Agricultural production contributes to
around 4.8 % of GDP
 It employs roughly 10% of the Lebanese
labor force, and is the fourth largest
employer in the country
 Key Agricultural products include: Fruits
mainly citrus, apples, bananas and grapes,
but also significantly olives
Sources: Syndicate of Agro Food Sector // Central Administration of Statistics
POTENTIAL INVESTMENTS IN:
Farms: Fisheries &Animal
Packaging & Storage Centers
Agro Industry: Important Export Potential
 A major contributor to the Lebanese
economy
 Generated around 32.5% of the
industrial sector output in 2009
 Has significant employment potential
with 23.3% of the industrial sector
workforce (30,760 workers)
 Accounts for 20% of industrial
establishments in Lebanon
POTENTIAL INVESTMENTS IN:
 Exports of agro-food products equal to
10.9% of total industrial exports
 Exports growth at 13% annually since
2001 (despite decline in industrial sector
exports)
Sources: Syndicate of Agro Food Sector // Central Administration of Statistics
Manufacturing plants
Bottling facilities
Tourism: Highest Generator of Revenues
 Directly accounts for 8% of Lebanese
GDP but indirectly to around 34% of the
national GDP (because of the indirect
effect on the economy)
 Capital investments in this sector have
amounted to 1.2 billion USD in 2010
(10.2% of total investments) and are
expected to rise by 6.2% per annum
according to the WTTC (*)
 7 billion USD of revenues generated by
tourism (20% of country’s GDP)
 40% growth in tourists arrival
(*) WTTC: World Travel & Tourism Council
POTENTIAL INVESTMENTS IN:
Hotels and Leisure Facilities
Healthcare Tourism
Cultural and Religious Tourism
Business Conferences
ICT: Sizeable Potential In Business Applications
 Estimated size: 287 million USD (2010)
 Forecasted to grow by around 11.8%
(based on estimates)
 Employs around 7,000 people
 Over 20% of Lebanese companies are
involved in the IT sector (either in
hardware, software or as internet service
providers)
 Mobile penetration rates are in fact
among the highest in the region and
have totaled 68% by end of 2010
 Big potential in business-related
applications and web development as
well as software development
Source: Business Monitor International
POTENTIAL INVESTMENTS IN:
Software
Hardware
Internet Software Providers
Telecommunication
Media: A New Growing Market
 Home to one of the most significant
media industries in the Middle East
 Advertising expenditure is expected to
record growth rates of 8.4% over the
next 3 years
 Total advertising expenditure
constitutes 2.8% of the national GDP
 New opportunities in digital media
including:
•
•
•
•
Online Advertising (e.g. Yahoo
buying Maktoob)
Online Gaming
Online Advertising
Specialized 3D Animation
POTENTIAL INVESTMENTS IN:
Advertising
TV Production
Digital Media
Production Houses
Healthcare Tourism: A Niche Market
 Skilled and specialized medical staff
with 130 yrs of top quality medical
experience
 Healthy climate with environmental
diversity
 Sector size estimated by 1.2 billion USD
with a 30% growth
 More than 15,000 doctors and 270
Hospitals
 New opportunities in healthcare tourism
including:
• Centers for Alternative Medicine
• SPAs and Beauty Centres
• Specialized physical rehabilitation
centers
• Specialized treatment centers
POTENTIAL INVESTMENTS IN:
Hotels, Furnished Apartments &
Villas with medical services
SPAs and Beauty Centers
Gyms and Medical Sport Centers
Nutrition Centers
Health Care
Tourism Park
Headlines
1. IMPACT OF ARAB SPRING ON LEBANON AND SAUDI ARABIA
2. SAUDI ARABIA: ONE OF THE MAJOR INVESTORS IN LEBANON
3. WHY IS LEBANON INTERESTING TO SAUDI ARABIA
4. ECONOMICSECTORS OF INTEREST
5. ABOUT IDAL
6. CONTACT US
About IDAL
THE INVESTMENT DEVELOPMENT AUTHORITY OF LEBANON
(IDAL)
• The National Investment Promotion Agency of Lebanon
• History – Established in 1994 with the aim of promoting Lebanon
as a key investment destination and attracting, facilitating &
retaining investments in the country
• Governance – IDAL reports to the Presidency of the Council of
Ministers (who exercises a tutorial authority over it) and has
financial and administrative autonomy
• Legislature – Investment Law No. 360 was enacted in 2001 to
regulate investment activities in Lebanon
IDAL has 3 tools to support investors
Tools Available to IDAL Though Law No.360
MARKET INTELLIGENCE
 Market Intelligence:
 Information on
investment opportunities
across economic sectors
 Data on economic
sectors with growth
potential
 Data on investment
climate
Pre-Investment
stage
PACKAGE OF INCENTIVES
ONE STOP SHOP
 Fiscal incentives:
Exemptions from corporate
income tax generated by
the investment project
 IDAL as One Stop Shop for
Investors
 Financial incentives: Fees
Reductions on Operational
cost:
 Non-Financial Incentives:
Employees for the project
are granted work permits
with the support of IDAL
Financing stage
 IDAL to supersede all
public administrations,
authorities and
municipalities in issuing
administrative permits
and licenses except those
granted by the Council of
Ministers
Licensing stage
Headlines
1. IMPACT OF ARAB SPRING ON LEBANON AND SAUDI ARABIA
2. SAUDI ARABIA: ONE OF THE MAJOR INVESTORS IN LEBANON
3. WHY IS LEBANON INTERESTING TO SAUDI ARABIA
4. ECONOMIC SECTORS OF INTEREST
5. ABOUT IDAL
6. CONTACT US
Contact Us
THE INVESTMENT DEVELOPMENT AUTHORITY OF LEBANON
(IDAL)
Lazarieh Tower // 4th Floor // Emir Bechir Street
Riad El Solh // P.O.Box 113-7251
Beirut // LEBANON
T
F
E
W
+ 961 (1) 983306/7/8
+ 961 (1) 983302/3
[email protected]
http://www.idal.com.lb
@Invest_Lebanon