EXPLORING THE POTENTIAL
TBY talks to Ramy Torbey, Managing Partner at Aziz Torbey Law Firm, on new financial legislation and future potential in the oil and gas sector.

BIOGRAPHY
Ramy Torbey is a founder of Eptalex and the managing partner of the Beirut Eptalex office of Aziz Torbey Law Firm. He is a banking and financial markets expert, with substantial M&A, corporate and international taxation experience. Torbey’s practice encompasses a broad array of corporate tax issues, structured finance transactions, joint ventures and cross border transactions; his transactional experience includes high-profile acquisitions and reorganizations of several different industries in the Middle East and in Europe. He has also been advising banks and financial institutions on their day-to-day regulatory and compliance matters and on acquisition and use of the most recent plastic card and mobile payment technology.The Lebanese parliament recently approved financial legislation in compliance with global financial standards. How will these laws enhance the regulatory framework for the banking sector?
Before the approval of the recent international financial compliance laws, Lebanon was facing the danger of significant sanctions and being blacklisted, which threatened to paralyze the banking sector. These financial compliance laws covering trans-border cash movements, cooperation to fight tax evasion, and measures intended to cut off resources used for terrorism, proved Lebanon's commitment to standards set by the international financial system. The banking sector is considered a pillar of Lebanon's economy and, thus, compliance is a major issue and its implementation is essential to the survival of the sector. By complying with these extraterritorial regulations, Lebanese banks are protecting the country's interests, and securing the continuous work of local financial institutions with the global financial system. Still, it is important to stress that abiding by these laws does not eliminate banking secrecy, it just increases the exceptions as these laws partially lift the secrecy and allow authority to get information about account holders suspected of money laundering or terrorism.
How would you assess the regulatory framework for the potential oil and gas sector, and what incentives is the country offering for future tenders?
With the anticipation of oil and gas exploration, the Lebanese parliament enacted new oil and gas laws to establish an effective regulatory framework that includes various regulatory bodies. The Law on Petroleum Resources at Sea (Law No. 132/2010) presented many advantages to potential foreign and local entities wishing to participate in the exploration and the production of oil and gas. This law enacts the government to grant local entities a 10-year exploration period, in addition to a 30-year production period during which the government is granted an amount equal to 4% of the gas produced and 5-12% of the oil produced. In addition, the government and the exploring entity divide the revenues per their agreement. The conditions set by this regulatory framework are quite encouraging for any potential participants and will certainly have a positive impact in the future development of the sector. Furthermore, the Lebanese government is relying on arbitration clauses, that ensure foreign entities a fair trial should a conflict arise. On the other hand, the Law on Petroleum Resources at Sea has faced many obstacles in the implementation phase. The first problem was the inexistence of a defined exclusive economic zone (EEZ) in Lebanon, which after its settlement accrued many problems with neighboring countries due to borders delimitation. Another issue has been raised by the division of the areas containing oil and gas into blocs, the purpose of which was to decide the number of blocs to be explored in the first phase, but governmental approval has not been put in place yet. And so, even though the process of oil and gas exploration and production in Lebanon was expected to be implemented in a shorter period, the process has been long delayed and still has yet to see the light.
Which economic sectors hold the biggest potential for growth in the upcoming years?
The IT, oil, and pharmaceutical sectors are showing promising growth. Startups within the IT sector are becoming increasingly popular, with more than a dozen startups assisted to get their platforms running during 2016 alone. The recent discovery of oil in Lebanon, the existence of new technologies to foster the sector, and the new legislation implemented look to promote fair dealing between businesses that want to exploit Lebanese petroleum resources, so this sector looks promising too. Also, in recent years there has been increasing regional demand for pharmaceuticals. Exports to Saudi Arabia, Egypt, and Iraq have all increased, likely due to rapid population growth in those countries and high levels of chronic illnesses. Lebanon has made the most of this situation by serving as a platform for distribution of pharmaceuticals, even reaching markets such as France.

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.
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