BIG AND BOLD
TBY talks to Dr. Fady Gemayel, President of the Association of Lebanese Industrialists (ALI), on the group's work to promote industrialists, new developments in terms of industrial cities, and the future of industry in the country.
BIOGRAPHY
Dr. Fady Gemayel is President of the Association of Lebanese Industrialists (ALI), the highest industrialist body in the private sector in Lebanon. He is presently the Chairman of Gemayel Freres. He is also the Chairman of Société Libanaise de Carton, Lebanon’s major paper recycling mill, Blue Pack SAL, which specializes in brand recognition products, and GEMDOUBS, a paper mill company in Novillars, France. He holds an MS in economics from Texas A&M University and an MA from Georgetown University. He also holds a DEA in commercial science from the University St Esprit Kaslik and a PhD from Université Paris 1 Sorbonne.What have been some major contributions by ALI to the sector in 2015?
We have worked with different industries to help them meet international standards and comply with regulations. This is not a primary issue for Lebanese industrialists as they have proven to be completely committed to the best standards. We export goods, particularly in the food industry, to the most demanding markets, including the US and Europe, and we work in line with their requirements. Another issue was the port reorganization by the Ministry of Finance. This has disrupted the flow of incoming goods to some extent; however, we have been able to minimize the damage for concerned industrialists. We have also helped the government play a major role in compensating those export companies affected by the border closure due to the Syrian war. Furthermore, we are cooperating with the government and the central bank on a program to enhance exports through more facilities for working capital for exporters. ALI has also played a significant role in promoting Lebanese industry through visits and delegations abroad. We have a solid base of skilled professionals as well as a network of connections via our diaspora. Lebanon can be a hub for international companies, and we want the international business community to realize that.
What has been the involvement of ALI in the subsidy program to alleviate Lebanese industrial exporters?
We have extensive involvement in this decision, and it has largely alleviated some of the extra costs that hampered our exports globally. We have been telling the relevant government officials that cumulatively our exports have gone down by USD1 billion over the last three years. If the government worked on recapturing this loss by reinvesting even USD50 million, this would allow the Lebanese economy to recover the USD1 billion lost. Lebanon has been carrying the burden of negative external effects that have taken their toll on our economy and ALI is doing everything in its power to contribute to solving these issues.
How will the four industrial cities planned by the Ministry of Industry transform the industrial landscape in the country?
Industrial land is scarce and expensive in Lebanon, so the fact that we have access to industrial cities is by itself a relief and an encouragement for all those who want to set up manufacturing facilities. Most companies also have to set up their own logistics network and this project will allow them to access cheaper land with full services in one single place. We have seen plenty of interest in the project from international organizations that assist Lebanon, and this is a good opportunity to attract some international anchor companies to set up subsidiaries here in key industries to spread the word on the opportunities present for other industries to be based here. For example, if the automotive industry comes here, it will bring with it related manufacturing companies, so this is an exponential investment. This will create clusters where one company will bring its peers to Lebanon, and we are truly excited about this new project.
With all the exciting projects going on here, what do you see for the future of industry in Lebanon?
The Lebanese industry has so far contributed 10-12% of GDP and has created no less than 130,000 jobs. This has been done mostly due to the private sector working on its own despite all the odds. If we give the industrial sector more tools, the possibilities of what we can do are countless. We are excited about realizing our potential, including in terms of more exports as we have a diversified portfolio of high-quality, well-designed products to sell to the world. We are also keen on Lebanon becoming a base for the industrial production of high-tech and value-added products with the current development of the knowledge economy. We look forward to international cooperation between Lebanese industrialists and international groups for the benefit of the whole region.
BIG AND BOLD
TABLE OF CONTENTS
Focus: Lebanese-French Relations
Let’s be Franc
Lebanon shares a close relationship with its former colonizer, both in terms of economic relations and cultural identity among Lebanese. In spite of hardships like the presidential power vacuum and Syrian war next door, the bond is only getting stronger.
read articleFocus: Tripoli Economic Free Zone
The Tripoli Transformation
The Tripoli Special Economic Zone (TSEZ) is one of most ambitious projects in Lebanon at the moment. With an initial cost of USD27 million, it is meant to provide an alternative to the heavily centralized economic activity in Beirut, a new gateway for investments and trade to settle in northern Lebanon, and will transform the image of a long-neglected region.
read articleInterview
Dr. Freddie Baz, Vice Chairman & Group Strategy Director, Bank Audi
TBY talks to Dr. Freddie Baz, Vice Chairman & Group Strategy Director of Bank Audi, on the bank's increase in profits, dealing with currency devaluation, and working to turn the economy into an export-driven one.
read articleReview: Insurance
Life is a Rollercoaster
Unlike many emerging markets, Lebanon enjoys a relatively high insurance penetration rate and strong life segment, buoyed by compulsory lines and bancassurance. Competition remains fierce, however, and reform aimed at encouraging consolidation looks far off.
read articleInterview
Max R. Zaccar, Chairman of Commercial Insurance & President of the Association, Insurance Companies
TBY talks to Max R. Zaccar, Chairman of Commercial Insurance & President of the Association of Insurance Companies, on the resilience of the sector, increasing the already-high penetration rates in the country, and remaining one of the strongest insurance companies in the region.
read articleInterview
HE Arthur Nazarian, Minister, Energy and Water Resources
TBY talks to HE Arthur Nazarian, Minister of Energy and Water Resources, on the potential offshoots from oil and gas explorations, the country's National Energy Efficiency Action Plan, and attempts to increase renewable energy consumption.
read articleInterview
Wissam Zahabi, Chairman, Board of the Lebanese Petroleum Administration (LPA),
TBY talks to Wissam Zahabi, Chairman of the Board of the Lebanese Petroleum Administration (LPA), on making the investment climate attractive for foreign companies and becoming self-sufficient in energy.
read articleFocus: Sovereign Wealth Funds
Gas Pipe Dreams
Despite excitement over exploration of Lebanon's hydrocarbons, the creation of a sovereign wealth fund, which was included in legislation, has yet to take place. The country faces several obstacles in its path to creating and properly managing a fund.
read articleInterview
Pierre El Khoury, General Director, Lebanese Center for Energy Conservation (LCEC)
TBY talks to Pierre El Khoury, General Director of the Lebanese Center for Energy Conservation (LCEC), on the development of energy efficiency in Lebanon, awareness of energy conservation, and the country's 2020 renewable energy goals.
read articleInterview
Dr. Fady Gemayel, President, Association of Lebanese Industrialists (ALI)
TBY talks to Dr. Fady Gemayel, President of the Association of Lebanese Industrialists (ALI), on the group's work to promote industrialists, new developments in terms of industrial cities, and the future of industry in the country.
read articleFocus: Industrial Cities
Industrial Solution
Domestic and regional events have stifled Lebanon in building a strong national industry to protect and sustain its economy. Four proposed industrial zones throughout the country may provide it with the economic backbone it so desperately needs.
read articleInterview
Marianne Hoayek, Director of the Executive Office, Banque du Liban
TBY talks to Marianne Hoayek, Director of the Executive Office of Banque du Liban, on the roots of the Circular 331 concept, bridging funding gaps throughout the startup lifecycle, and the country's growing knowledge economy.
read articleRoundtable
Thinking It Through
On June 12, TBY and the American-Lebanese Chamber of Commerce (AmCham) organized a roundtable titled “Startup ecosystem sustainability: fostering cooperation to drive entrepreneurship." The participants discussed the impact of Circular 331, an initiative by Bank du Liban, the Lebanese central bank, to inject a potential of USD400 million into the local enterprise market and guarantee 75% of banks' investments in startups and startup support.
read articleFocus: Infrastructure for the startup ecosystem
The New Star
Startups are ubiquitous in Lebanon despite the difficulty of starting a business and the lack of services available to new businesses. However, a number of actors, both public and private, are innovating the environment and allowing startups to fulfill a greater role in the country's economy.
read articleFocus: Maritime Exports Bridge
Bridging The Gap
The conflict in Syria has wrought serious damage on the Lebanese economy, effectively closing off the country's trade routes through Syria. However, a new program geared at balancing the price disparities between land and sea transit is poised to help Lebanese industries.
read articleFocus: Real Estate
A Stimulus For The Rest Of Us
The real estate market in Lebanon is nothing like it used to be. The sector has slowed considerably, and demand has shifted from the traditional center, Beirut. However, stimulus packages from the central bank over the years have proven beneficial for all parties involved.
read articleInterview
Armand Pahrés, President, Lebanese Pharmaceutical Importers Association (LPIA)
TBY talks to Armand Pahrés, President of the Lebanese Pharmaceutical Importers Association (LPIA), on the development of legislation in the sector, boosting further innovation, and opportunities for Lebanon to become more self-sufficient in pharmaceuticals.
read articleFocus: Incentives for pharmaceuticals in Lebanon
Pharma Land
Lebanon has always been the region's leader in all things health related. Its pharmaceutical industry is no exception, and the country's incentives for international pharma companies to operate, manufacture, and distribute in Lebanon are only getting stronger.
read articleInterview
HE Elias Bou Saab, Minister, Education and Higher Education
TBY talks to HE Elias Bou Saab, Minister of Education and Higher Education, on the ministry's initiatives to improve the education system, ensuring access to education for Syrian refugee children, and reversing the brain drain in the country.
read articleInterview
Mohamed Harajli, Provost, American University of Beirut (AUB)
TBY talks to Mohamed Harajli, Provost of the American University of Beirut (AUB), on his upcoming plans for the university, the key role played by the AUB alumni, and fostering an entrepreneurial spirit among students.
read articleFocus: Programs to school Syrian refugee children
High Marks
Proportional to its population, Lebanon has taken in significantly more Syrian refugees than any other country. With the country now facing the problem of placing the tens of thousands of Syrian children in school, international donors and local and foreign organizations are making educational support a priority.
read articleInterview
Joseph G. Jabbra, President, Lebanese American University (LAU)
TBY talks to Joseph G. Jabbra, President of the Lebanese American University (LAU), on embracing technology at the university, the challenges of Lebanon's brain drain, and the importance of having international links with other institutions.
read article