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Investment Environment in Lebanon: A Stellar Economic Performance

Explore the investment opportunities in Lebanon, the gateway to the Middle East, with its strong economic and legal fundamentals. Benefit from direct access to European markets and GCC access, facilitated by liberal trade policies. Discover the solid reasons to invest in Lebanon, including its stellar economic performance, sound banking system, competitive taxation environment, top-notch education system, quality healthcare, and high quality of life indicators. Don't miss out on the vast investment opportunities in sectors like financial services, education, industry, food and beverage, tourism, information technology, technology, media, and agriculture.

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Investment Environment in Lebanon: A Stellar Economic Performance

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  1. Economic Performance & Investment Environment in Lebanon Beirut December 19, 2019

  2. Outline Lebanon: The Gateway to the Middle East A Stellar Economic Performance Strong Economic and Legal Fundamentals Investment Opportunities

  3. LEBANON: THE GATEWAY TO THE MIDDLE EAST

  4. LEBANON – CROSS ROAD TO EUROPE, ASIA, AFRICA AND THE MIDDLE EAST… Direct Access to all European Markets GCC access Direct Air Services to African Sub-continent home to …. Facilitated by very liberal trade policies

  5. LEBANON IN FIGURES

  6. SOLID REASONS TO INVEST IN LEBANON: A STELLAR ECONOMIC PERFORMANCE

  7. The Lebanese economy has registered a stellar performance over the last few years… REAL GDP GROWTH RATES(2006-2010) Worldwide financial crisis Lebanon Emerging Economies MENA Countries Advanced Economies Source: International Monetary Fund, World Economic Outlook Database, April 2010

  8. … and was one of the best performers regionally and internationally despite the global slowdown ANNUAL GROWTH RATES (2009-2010) Source: International Monetary Fund, World Economic Outlook Database, April 2010

  9. Confidence in the Lebanese economy has sustained with FDI inflows growing at a steady rate of 15% FDI INFLOWS TO LEBANON (2006-2010) 15% CAGR Source: UNCTAD: IDAL Estimates and Calculations

  10. Enabled mainly by strong interests from foreign investors and Arab expatriates particularly in the Lebanese real estate and residential sectors FDI DISTRIBUTION BY SECTOR (2009)

  11. Lebanon is actually one of the largest recipient of FDI in the region, If we exclude oil rich economies FDI INFLOWS TO MENA COUNTRIES(in 2009) (Bn $) Oil Rich Economies Source: UNCTAD/World Investment Report (WIR)2010

  12. Actually Lebanon has the highest degree of internalization with FDI stock as large as the economy FDI STOCK % GDP (2009) Source: UNCTAD STAT

  13. SOLID REASONS TO INVEST IN LEBANON: STRONG FUNDAMENTALS

  14. RESTRICTIONS ON CAPITAL FLOW (2010) Lebanon is one of the freest economy regionally and internationally due to the lack of restrictions on capital flows FREE MARKET ECONOMY Ranking 117 How restrictive are regulations in your country related to international capital flows. 2009-2010 weighted average Score over 10 Lowest restrictions 5 1 Source: World Competitiveness Report

  15. Lebanon boast one of the soundest banking system in the world, ranking 4th only after some of the largest economies SOUND BANKING SYSTEM SOUNDNESS OF BANKS (2010) 2010 Source: Global Competitiveness Report, 2010-11

  16. Lebanon has one of the most favorable taxation environment regionally and internationally COMPETITIVE TAXATION ENVIRONMENT CORPORATE TAX RATE (%)(2009) Source: Countries website

  17. Lebanon has one of the best educated workforce that is endowed with a top-notch higher education system TOP NOTH HUMAN CAPITAL Education Capability Index Selected Regional countries(2010) Number of Higher Education Students per 100,00 Inhabitants(2010) The Education Capability Index10 represents CEO satisfaction levels regarding the education system, based on current quality, the adequate skills acquired by students upon graduating, and the ability of the education system to meet future market requirements. Source: www.pwc.com; ttp://www.educationdev.net

  18. The healthcare system is amongst the best performer internationally as measured by the ratio of physicians to population and beds to population QUALITY HEALTH CARE Physicians per 10,000 Population – Selected Regional and OECD countries(2000-2009) Beds per 10,000 Population – Selected Regional and OECD countries(2000-2009) Source: WHO Report 2010

  19. The Quality of Life has been an important factor in channeling investments to Lebanon LIFESTYLE Quality of Life Indicators in MENA(Scale of 100)(2010) The Quality of Life Index is based on variables relating to the cost of living, environment, culture and leisure, political freedom, health, infrastructure, safety & risk. + Source: International Living

  20. SOLID REASONS TO INVEST IN LEBANON: VAST INVESTMENT OPPORTUNITIES

  21. FINANCIAL SERVICES EDUCATION Lebanon boast at least 9 sectors with growth potential and readiness for development SECTORS WITH HIGH GROWTH POTENTIAL INDUSTRY FOOD & BEVERAGE TOURISM INFORMATION TECHNOLOGY TECHNOLOGY MEDIA AGRICULTURE Source: UNDP Report 2003- Investor Perception Survey

  22. SECTORS WITH PROMISING POTENTIAL – Overview ICT: Great potential as Lebanon ranks 16th worldwide for the quality of its education and 7th for sciences.ERICSSON, US INTEL CAPITAL, NOKIA with operations in Lebanon FOOD AND BEVERAGE: Great export potential for local industry mainly olive oil, wine and processed food– Made in Lebanon Products very successful internationally FASHION INDUSTRY: A booming sector with enormous potential: Designers such as Elie Saab, Rabih Keyrouz, already serving the international market HEALTH CARE TOURISM: Lebanon already attracts health tourists from GCC countries and boasts one of the top notch medical centers in the world and highest ratio of physicians to population in the world PROFESSIONAL SERVICES / CALL CENTERS:Lebanon offers a strategic location for serving the “Levant”/MENA markets, with an educated, multilingual and commercially minded workforce. MEDIA: Significant Hub for the media and entertainment industry; Opportunities in High End Publishing, advertising, TV and audio Production; Promising market due to very young market

  23. The Investment Development Authority of Lebanon (IDAL) has played an important role in attracting investments to growth promising sectors • Main Authority responsible for promoting Lebanon and attracting investments. Attached to the Presidency of the Council of Ministers • Created in 1994 and Investment Law 360 ratified in 2001 • Provides a wide range of services: • Provide economic, financial and legal information important for investors • Grants fiscal incentives and other types of fee reduction to investors • Facilitates the issuance of permits and licenses • Identifies investment opportunities across various sectors • Provide Business Matchmaking Services to investors and entrepreneurs • Follow a sector oriented approach with specialists in growth promising sectors

  24. INVESTMENT INCENTIVES IN LEBANON offered by INVESTMENT LAW 360 TWO TYPES OF INCENTIVES SCHEMES • REGION AND SECTOR BASED INCENTIVE • JOB CREATION BASED INCENITVE • Also called Investment Projects incentives • Provided to projects based on their geographical location across 3 Zone: A, B, C and investment size • Incentives Provided: • Up to 100% tax exemptions for 10 years for projects located in remote areas • Work Permits granted • Also called Package Deal Contract • Provided to projects based on their investment size and number of jobs created • Incentives Provided: • 100% exemption of Income Tax and Taxes on Project Dividends for up to ten years • Up to a 50% reduction on Work and Residence Permit Fees • Up to a 50% reduction on Construction Permit Fees • Full exemption from Land Registration Fees

  25. C B A C • REGION AND SECTOR BASED INCENTIVE Regions with Socio Economic Challenges Beirut 100% income tax exemption for 10 years C 50% income tax exemption for 5 years

  26. JOB CREATION BASED INCENTIVE Beirut 100% income tax exemption for up to 10 years + 100% exemption from taxes on project dividends for up to 10 years

  27. Today a multitude of Foreign Investors are operating in Lebanon

  28. Thank You for your Attention For queries and more information please contact IDAL at: Info@idal.com.lb or 00961 1 9833 06 Or Visit our Website at www.idal.com

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