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TBY talks to Alia Abbas, General Director of the Ministry of Economy and Trade, on maintaining growth amidst an economic slowdown, increasing exports to the EU, and plans to join the WTO.
BIOGRAPHY
Alia Abbas earned bachelor’s degrees from the Lebanese University in French literature in 1980 and later in law in 1999. She completed her MBA in 2004, and is currently a doctoral candidate in business administration at Lebanese University. She was appointed to her current position as the General Director of the Ministry of Economy and Trade in May 2014. Prior to serving in her current role as General Director, she held for many years such other titles within the ministry as Head of Expenditures Directorate, Financial Advisor, and Member of the High Audit Committee. She also served as Ministry of Finance Representative and Head of Indirect Taxes Bureau.Lebanon's nominal GDP has been growing despite falling prices and stagnant growth. What accounts for the country's resiliency, and what are the actions taken into account to counter these negative effects?
Lebanon presents a number of opportunities and factors that account for its resiliency amidst all surrounding conditions. In 2015, we achieved growth of 1.5% in comparison to the previous five years mainly due to our effort in continue building partnerships and seeking opportunities abroad. Our highly skilled labor force and the wide reach of the diaspora also continued to play a strong networking role by acting as a main intermediary between countries to do business in. Lebanon also reinforced its role as a hub and competitor in the field of business development for the MENA region, and our way of life continues to be a trend-setter in the Middle East. Finally, we have a service-orientated economy with low levels of inflation and a stable exchange rate that allow the country to build upon two important pillars: consumption and investment. The ministry has also set in motion a set of measures looking to reinforce our economy, such as updating and reinforcing the relevant legislations and rules, restarting the accession process to the WTO, launching initiatives to reinforce PPPs, and signing new trade agreements that pave the way for new trade markets for Lebanese exports. The economy will not witness any improvements in its indicators in 2016 unless political understandings result in restoring confidence in the Lebanese economy, creating growth, contributing to attract tourists and investors, and facilitating exports to improve the balance of trade.
The association agreement between Lebanon and the EU entered into effect 10 years ago. How has this agreement contributed to boosting Lebanese exports and attracting investments?
The Lebanon-EU Association Agreement has not only had a great impact on trade exchange, it has also put reform on the Lebanese government's agenda, as well as improvement in the production capacities of the private sector. The agreement was designed to help support the Lebanese economy, serving as a catalyst for development, whereby Lebanon can utilize it for structural reform, technology transfers, and human and institutional capacity building. At the trade exchange level, bilateral ties have increased steadily in recent years with an average annual growth of 12.7% since 2008, and with total imports amounting to almost USD7.5 billion and exports only USD320 million. This weak growth in Lebanon's exports to the EU is primarily due to the stringent market access requirements imposed by the EU on most of its agricultural and agro-industrial imports. On the other hand, this agreement entails a package of technical assistance that grants approximately EUR50 million to Lebanon every year. The agreement has had both positive and negative effects for Lebanon, but something we would like to emphasize is the need of our country to receive more assistance to stress on the additional needs Lebanon faces.
Lebanon's accession to the WTO has been stuck for nearly 20 years. Is the country's accession feasible now, and what could be the major benefits for Lebanon?
The main advantage of Lebanon's accession to the WTO is restoring confidence in the economy. Once we enter the WTO, the reciprocal privileges among members of the organizations will allow us to open up to new markets and hence boost Lebanese exports to more than 162 markets. It will also help Lebanon to attract foreign investments, create new investment opportunities for Lebanese companies, and contribute to the creation of new jobs to combat unemployment. Despite the fact that this process has been filled with challenges, we have come a long way, and we have a promising opportunity today to complete our accession by being well aware of our rights and duties in order to face these challenges together. Joining the WTO is a necessity, as it would give our economy an international certificate to world trade.
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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