GOOD TRADE
TBY talks to Salim Zeenni, Chairman of the American-Lebanese Chamber of Commerce, on the draw of Lebanese skilled labor, promoting SMEs, and opportunities for US investments in Lebanon.
BIOGRAPHY
An industrialist by profession, Salim Zeenni runs a plant in the north of Lebanon for the manufacturing, packaging, and distribution of consumer care and food industry products to the Middle East, Europe, and North America. He is an active member of the business community, and in addition to his role as the Chairman of the American-Lebanese Chamber of Commerce, he is a member of the Association of Lebanese Industrialists, Vice-President of the Chemical Industries Syndicate, and member of the Executive Committee of the Children’s Cancer Center in Lebanon.What are the factors that make Lebanese talent so attractive abroad?
Lebanon has always been a trend-setter and a gateway to the Middle East, whether it is for business, fashion, or any other sector. One always sees Lebanese people carrying out entrepreneurial projects, doing business abroad, and working as professionals around the world, from Gulf countries to Latin America. Traditionally, European countries were the ones taking advantage of that, especially France, due to the historical ties we have, but in the past year this trend has been expanding to countries that lay farther from Lebanon, the US being the clearest example. Lebanon is an excellent place to establish a foothold in this region because we know the markets—we have done business with every single one of these countries, we speak three languages, and we have the human capital to serve as a platform for companies' expansion across the Middle East.
How does American influence on Lebanese education institutions benefit the bilateral relationship?
We have a close bond with the US education system, which has prompted a positive effect on building trade relations and promoting businesses between our countries. The most prestigious universities in Lebanon are connected to American universities on a varied scale and this has transformed their structure in different ways. Also, a large number of university-educated people in Lebanon come from an American educational background, many of them even going to the US to study. This trend has existed for years and has eased the path for people who want to do business with the US or who want to take part in their operations there. An Americanized education has not only taught them to negotiate in English; it has also showed them the culture there and how to succeed in such a competitive market. When thinking about business opportunities that can develop from both sides, we have the most important factor already in place: human capital.
What is your strategy for globally promoting Lebanese SMEs?
New regulations establish various customs standards and one of our jobs has been to educate SMEs so they know what these regulations are and how they can abide by these standards. Bringing Lebanese SMEs up to international standards has been the biggest challenge thus far, but we are focusing our efforts on making this happen. We hold conferences and workshops to educate them on the many regulations, how they can comply with them, and the benefits that fulfilling this framework can bring about. Our biggest contribution has been advising SMEs and raising awareness of what is happening in their surroundings, how to structure a well-planed strategy to grow their business, and how to come up with innovative solutions that will place them in an advantageous position. The chamber is fully committed to the improvement of Lebanese SMEs and we want to contribute as much as possible to their development.
What are the major opportunities for companies in the US to do business in Lebanon at this moment?
Unfortunately, investment opportunities in Lebanon have fallen in the last two years, mainly those that were once shining opportunities for US companies. The political instability and economic downturn have severely affected most sectors in the economy and made them risky to invest in; having said that, Lebanon is a great gateway into the MENA region, especially GCC countries. We know those markets well, and it is easy to start from Lebanon and move from there. We also relate well to the way of doing business in Western nations, combining the best of both worlds. My hopes are for a brighter future for Lebanon in the coming years, where it will become an attractive hub for investment and for companies basing their regional operations here, and where local businesses are ready to prosper outside the country.
GOOD TRADE
TABLE OF CONTENTS
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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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