SMART LIVING
TBY talks to Jihad Abou Chacra, Vice Chairman of Sakr Holding and CEO of Remax Lebanon, on new concepts, the partnership with Remax, and reinvention.

BIOGRAPHY
Jihad Abou Chacra is the Vice Chairman of Sakr Holding and the CEO of Remax Lebanon. Abou Chacra joined Sakr Group in 2006 and is currently a member of the Board of the Real Estate group of companies. He has an experience that spans over 29 years in areas of legal, real estate development, corporate strategy, corporate services, business development and expansion, and business transactions across diverse geographical regions. He earned a master’s degree in finance and a bachelor’s degree in business management from the Universitié Saint Joseph.How have technological applications made the difference in your projects?
We have visionary people leading the company and this adds to Sakr Real Estate's innovative approach to developments. We create concepts rather than mere changes and we incorporate the best technologies worldwide. This is something we developed in the Admir project, which will be in the intersection of three different municipalities, as it will expand over time to have a wellness center and a commercial hub. This type of project follows up on our strategy to develop smart living spaces in Lebanon.
How did the partnership with Remax start, and what are your expectations from this new chapter in Sakr's history?
We signed the partnership with Remax in December 2015 when we decided to cover the sales part of our business ourselves, sort of a one-stop-shop. We wanted a well-reputed international company that people in Lebanon could easily recognize. This is how we moved on to approach the owner of the Remax franchise in Lebanon to acquire 90% of the shares of the brand in the country in a two-sided strategy where we would benefit from a big name in real estate commercialization, and it would benefit from maintain 10% the shares of Remax while seeing its company grow as Sakr expands its scope of action in the local market. Remax is the number one real estate broker in the world, and this fills Sakr with an unprecedented opportunity to bumper its real estate sales force. We have entered a new era where Remax will further strengthen our position in the local market.
Once Remax is fully integrated to Sakr's operations, how will this transform your approach to the market?
The partnership will entail sales of franchises and licensing, as we do not do transactions or operations, and this will be carried by Remax. We established two particular subsidiaries to cater for Sakr's needs—Remax Properties for transactions on apartments, villas, and any other building project we undertake, and Remax Land to manage land spaces. These two subsidiaries come to complement the other six outlets the brand has in Lebanon and will go in line with the noted plan to open several outlets across the territory. What we will look into now is how to match the traditional Lebanese way of selling property with Remax's way, since they are different concepts with unique models. What I plan to do from now on is to promote the Remax model for potential agents, where they can get higher commission for at least 40% of the property price, while they only get 10-15% in the traditional agencies.
How will this relationship take Sakr to the next level, and where do you see the partnership going in the next couple of years with new projects that Sakr will have?
Adding Remax into our operations has multiple-sided effects. Firstly, we will have an autonomous sales force with independence in governance and administration. This will enforce sales since Remax will go in our own direction and it is also the largest brand in the world. Secondly, the Remax model has to do with a clear network of the business that gives us access to anywhere in the world with agents still getting their commissions despite allocating properties in third markets. This is an extremely dynamic model not available in other international real estate brokers. We do not want to deviate too much from the original business model of Remax since it has proven successful and unique in many ways; we want to build up on this model to create something beyond this success. Finally, once this business model takes a hold on Sakr's operations, I am sure we will move on to other markets to have coverage through our joint venture. Currently, our aim is to prove ourselves in the Lebanese market and once we are successful at home, we will go abroad and take our business model to the next level.

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