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TBY talks to Nabil A. Itani, Chairman & General Manager of IDAL, on establishing industrial cities, turning challenges into opportunities, and supporting the transition to becoming a knowledge economy.
BIOGRAPHY
Nabil A. Itani was born in 1953. He is an architect and since 2005 has acted as Chairman and General Manager of the Investment Development Authority of Lebanon (IDAL). He was recently part of the ministerial committee appointed to amend decrees pertaining to Investment Law No. 360. He has been a key decision maker and participant in a number of legislative committees of high standing in the architectural profession within Lebanon and throughout the region. He made significant contributions to establishing the by-laws, regulations, and structure of the Order of Engineers and Architects. He is also member of the Union of Arab Architects and the Union of International Architects.What is IDAL's involvement in the project to create three industrial cities across Lebanese territory?
We have carried out different studies for the development of the industrial and economic zones that are taking over the national territory, not only for these three planned cities, but also for the Tripoli Special Economic Zone and other flagship projects in the country. We identified that there is demand in the manufacturing sector; therefore, we arranged this industry to allocate a series of companies under one single umbrella that would ultimately become the industrial zone. We also identified some underdeveloped regions in the country across the south and the east; therefore, we pushed for the relocation of these industrial cities to those unprivileged areas. Finally, we are working now on setting up incentive plans to attract investment to these regions.
Amid the complexities Lebanon has faced in the past year, how has IDAL turned these challenges into opportunities?
When the worldwide financial crisis hit global markets in 2009, Lebanon was registering growth rate figures of more than 10%, and FDI reached all-time highs of USD4.96 billion. When the region was engulfed in the Arab crisis, Lebanon remained one of the few regional economies to register positive growth of FDI levels. We have managed to maintain FDI levels at around USD3 billion, proving Lebanon's resilience and forcing us to do more as this number does not match our ambitions. The more recent challenges have been impacting both our foreign and national investments but also exports. With the closure of the Syrian border, half of our trading routes were suddenly cut. With IDAL's main mandate to support the promotion of Lebanese goods, it set up the Maritime Lebanese Export Bridge program, or M.Leb, which essentially supports exporters in transporting their goods via maritime means to counter for the loss of the land route. This program has had a positive impact on exporters in the agriculture, agribusiness, and industrial sectors, with many companies benefiting from the government support. Recent measures imposed by some Gulf states forbidding their citizens from visiting Lebanon have had a negative impact on our tourism industry, which has traditionally relied heavily Gulf spending in Lebanon. This was an opportunity for us to tap again into our diaspora by working in partnership with public and private organizations to identify diaspora members who would either directly invest in Lebanon or support in outsourcing part of their operations to Lebanon. It is also important to note that despite the many challenges, our main duty as the national investment agency has been to continuously promote our sector-specific competitive advantages. We are starting a campaign to promote our sectors and remind investors of the many facilities available to them.
The knowledge economy sector is one of the most promising ones at the moment. How have you channeled your resources to help this sector grow?
Three years ago, we developed a business process outsourcing strategy given our belief in the potential of the country to serve as an outsourcing destination to companies engaged in ICT- related services. We carried out several roadshows to promote our location advantages. In 2016, we partnered with Berytech to promote Lebanon in the Canadian market and held a presentation and workshop in Paris for Lebanese companies to establish partnerships and business opportunities with French companies. We have tailored tax break incentives and easier licenses issue for the startup ecosystem and have partnered with incubators and accelerators to simplify the process for companies to set up companies. We are currently preparing an ICT sector event in Oman due to increasing interest in our ecosystem there.
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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.
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