HAIL TO THE HARD AND NIMBLE
TBY talks to Dr. Fouad Zmokhol, President of the Association of Lebanese Business People in the World (RDCL World), on the resilience of Lebanese entrepreneurship and the importance of small and medium-sized businesses for meeting the challenges of the future.
BIOGRAPHY
Dr. Fouad Zmokhol holds a doctorate in business administration from New Port University (US). In 2017, he founded and now chairs the RDCL World. As CEO and co-owner of the Zimco Group, a holding with a publishing house, leather factory, and advertising agency, Zmokhol continues to share his entrepreneurial wisdom as Professor of Managerial Strategies and Entrepreneurship at Saint Joseph University (USJ) and the Lebanese American University (LAU). He also sits on the boards of several prominent organizations.What is your main mission, and how would you evaluate your progress in the past 30 years?
We are proud to be an elite group, and new members must firstly receive an invitation from two existing members and be subject to a vote requiring a two-thirds majority of the board before they can join. Additionally, our organization is totally apolitical; if any member becomes a minister or political representative, their membership is temporarily frozen. This helps us maintain complete independence. Many of our members become active in the political realm, because we believe it is important to have the Lebanese private sector play a key role in the direction of the country. Economically, Lebanon has survived several episodes of instability, essentially thanks to its private sector. Our major objective is to bring different business people together at the same table. We participate, in one way or another, in almost all major economic decisions in Lebanon.
How are you promoting greater cooperation between the public and private sectors to encourage more stable socioeconomic development?
Over the last two years, we have presented five laws. As a lobby, we are able to pass several types of economic laws. Whilst general public-private partnership (PPP) laws are difficult to pass, highly technical economic laws are much easier to gather support for. As a matter of fact, many members of parliament frequently ask for our input. In Lebanon, business-lobbying groups can present laws on condition they are signed by 10 MPs. We, however, usually gather up to 50 signatures on the laws we present. Politicians understand that we have no political agenda; rather we are solely focused on business. The points of strength that have fueled the success of Lebanese companies in the last 30 years have dramatically shifted, and a change of mentality is now necessary to survive. Most of the successful Lebanese companies were developed and grew in times of war, which means they are resilient and flexible. These companies now simply need to adjust to the new environment.
What will be the economic impact of having a new president?
The 29-month presidential vacuum halted the economic cycle of the country, leading to a decrease in foreign investments by 50%, from USD4.85 billion in 2010 to USD2.4 billion in 2016. Thus, the long-awaited political agreement was a tremendous positive shot in the arm for the economy and the country as a whole. We have been paying a high price for regional tensions over the last five years. It is the first time since WWI that so many armed conflicts are simultaneously raging in the region. We should not forget that our economy is based on the region's growth.
What are the main attractions and challenges for investors?
Lebanon's sovereign risk has been quite stable over the last 30 years. In Lebanon, we have an acceptable judicial system that ensures the protection of investors' rights. Furthermore, we are working to increase the return on investment. Currently, ROI in the country is only 5-7%, which is alarmingly low. Our major objective is to reduce sovereign risk and collaborate with different companies to boost ROI. Lebanon is a hub for the region, hence multinationals with regional ambitions operate out of Beirut. We are focused on attracting international companies interested in relocating here that will play a major role in rebuilding Syria, which is poised to take place out of Lebanon. Naturally, we will not rebuild Syria all by ourselves, but will play a major role in facilitating its reconstruction.
What are some of RDCL World's main goals and priorities for the year ahead?
First, we are looking to close 2017 with substantial growth (2-2.5%). Second, we want to create new micro-companies. The most dynamic engine of a small economy like ours revolves around new entrepreneurs and SMEs. Our economic ecosystem must be changed, and here comes the necessity for new blood willing and able to tackle complex issues.
HAIL TO THE HARD AND NIMBLE
TABLE OF CONTENTS
Interview
HE General Michel Aoun, President, Republic of Lebanon
TBY talks to HE General Michel Aoun, President of the Republic of Lebanon, on reinvigorating and renewing the national pact, the importance of the economic planning for growth and stability, and building a more inclusive citizenship.
read articleGuest Speaker
Nicos Anastasiades, President, Republic of Cyprus
TBY talks to Nicos Anastasiades, President of the Republic of Cyprus, on the ancient ties that bind Cyprus and Lebanon, the importance of recent and future offshore energy discoveries for bilateral relations, and the importance of working together to combat common security and political problems.
read articleFocus: Regional Relations
On Good Terms
Looking to restore Lebanon's reputation as a credible mediator, stem the flow of refugees, and restart the flow of money, Lebanon's President Aoun takes a tour, following Lebanon's old money trails in hopes of sparking exchange with the Gulf states and bonding over shared concerns.
read articleGuest Speaker
Mariano Rajoy, Prime Minister , Spain
TBY talks to Mariano Rajoy, Prime Minister of Spain, on the Spanish contribution to UNIFIL in the south of Lebanon, the powerful cultural proclivities between the two countries, and Spain's proven long-term commitments to the safety and prosperity of Lebanon.
read articleGuest Speaker
Maite Nkoana-Mashabane, Minister of Foreign Affairs , South Africa
Maite Nkoana-Mashabane, Minister of Foreign Affairs of South Africa, on working together with Lebanon to forge broader regional peace, strengthening over century-long ties, and working in tandem with South Africa's sizeable Lebanese diaspora to boost commercial ties between the two.
read articleInterview
Gebran Bassil, Minister, Foreign Affairs and Emigrants
TBY talks to Gebran Bassil, Minister of Foreign Affairs and Emigrants, on the critical importance of reintegrating the Lebanese diaspora, the country's oil and gas bid, and bringing some semblance of normalcy back to the region.
read articleInterview
Dr. Fouad Zmokhol, President, Association of Lebanese Business People in the World (RDCL World)
TBY talks to Dr. Fouad Zmokhol, President of the Association of Lebanese Business People in the World (RDCL World), on the resilience of Lebanese entrepreneurship and the importance of small and medium-sized businesses for meeting the challenges of the future.
read articleInterview
Salim Zeenni, Chairman, American Lebanese Chamber of Commerce (AmCham)
TBY talks to Salim Zeenni, Chairman of American Lebanese Chamber of Commerce (AmCham), on initiatives to bring Lebanese start-up culture to the world, how to advocate on behalf of SMEs, and sectors driving the Lebanese economy forward.
read articleInterview
Nabil A. Itani, Chairman, Investment Development Authority of Lebanon (IDAL)
TBY talks to Nabil A. Itani, Chairman of the Investment Development Authority of Lebanon (IDAL), on increasing Lebanon's short-term investment flows, tapping into the diaspora, and bolstering the country's vibrant start-up community to bring long-term prosperity.
read articleInterview
Aziz Torbey, Founder , Eptalex
TBY talks to Aziz Torbey, Founder of Eptalex, Aziz Torbey Law Firm, on the long-term structural advantages of working in Lebanon, important moves the state is taking to improve the regulatory framework, and how the merger with Eptalex has revitalized the firm's global operations.
read articleInterview
Tarek Mohamad El Khati, Minister, Environment
TBY talks to Tarek Mohamad El Khatib, Minister of Environment, on boosting renewables in Lebanon, working with municipalities to maximize waste management efficiency, and dealing with the environmental fallout of the crisis in Syria.
read articleInterview
Jamal Itani, Mayor, Beirut
TBY talks to Jamal Itani, Mayor of Beirut, Municipal Council of Beirut, on using the latest technology to solve the waste management fiasco, employing the latest environmental standards to reduce Beirut's carbon footprint, and making the city far greener and more pedestrian friendly.
read articleInterview
Dr. Riad T. Salameh, Governor, Banque du Liban (BDL)
TBY talks to Dr. Riad T. Salameh, Governor of Banque du Liban (BDL), on employing swap operations to reverse deleterious trends of the past five years, strengthening the central bank's foreign currency reserves, and bolstering the knowledge economy in the long term.
read articleInterview
Freddie C. Baz, Group Strategy Director, Bank Audi
TBY talks to Freddie C. Baz, Group Strategy Director of Bank Audi, on the importance of Turkey and Egypt to Audi's portfolio, venturing into Africa and Latin America, and leading by example in corporate governance and risk management.
read articleInterview
Antoun Sehnaoui, Chairman & CEO, SGBL
TBY talks to Antoun Sehnaoui, Chairman & CEO of SGBL, on supporting the bedrock of the Lebanese economy, SMEs, the group's ambitious expansion efforts across the region, and how to continuously deploy the most advanced information platforms.
read articleInterview
Dr. Ghaleb Mahmassani, Vice-President , Beirut Stock Exchange (BSE)
TBY talks to Dr. Ghaleb Mahmassani, Vice-President of the Beirut Stock Exchange (BSE), on the pace of the privatization of the BSE, the sharp increase in trading movement in 2016, and how to change the business culture in Lebanon for the better.
read articleInterview
Max. R. Zaccar, President, Association of Insurance Companies
TBY talks to Max. R. Zaccar, President of the Association of Insurance Companies, on the importance of insurance to the entire financial infrastructure, opportunities in Syria and Iran, and the need to educate the public on the importance of the industry.
read articleReview
Never let a post-crisis go to waste
Having seen off their domestic foes—for now—the energy initiatives being championed by President Aoun and Foreign Minister Bassil will need more than patience and cunning to see off the threat to eastern Mediterranean drilling rights from Israel.
read articleInterview
Cesar Abi Khalil, Minister, Energy & Water
TBY talks to Cesar Abi Khalil, Minister of Energy & Water, on boosting the percentage of renewables to 12%, implementing an ambitious set of energy-efficiency reforms for 2016-2020, and using public sector buildings as an important pilot for doing so.
read articleInterview
Hisham Itani, Chairman & CEO, RGH Holding
TBY talks to Hisham Itani, Chairman & CEO of <a href="http://www.rgh.com.lb/rgh/en/home#&panel1-1">RGH Holding</a>, on digital security and cybersecurity offerings and how RGH has transformed government and private sector operations alike.
read articleInterview
Dr. Hassan El Solh, Medical Center Director & Chief Medical Officer, American University of Beirut Medical Center (AUBMC)
TBY talks to Dr. Hassan El Solh, Medical Center Director & Chief Medical Officer of American University of Beirut Medical Center (AUBMC), on the center's expanding infrastructure and patient services, upgrades in technology, and development of specialties and centers of excellence.
read articleInterview
Mohamad Chehabeddine, Director General , Civil Aviation of Beirut-Rafic Hariri International Airport
TBY talks to Mohamad Chehabeddine, Director General of Civil Aviation of Beirut-Rafic Hariri International Airport, on the airport's terminal expansion and security enhancements to attract more travelers to the Paris of the East.
read articleInterview
Michel Pharaon, Minister, State for Planning Affairs
TBY talks to Michel Pharaon, Minister of State for Planning Affairs, on the structure of the ministry, public-private partnerships, and both the opportunities for growth and challenges in Lebanon's current political climate.
read article