Author Archives: Nabil Makari

Hedging on real estate

Hedging on real estate

Real estate, long perceived in Lebanon as a long-term investment which would allow reaping profits in an economy of services, was in addition seen as an attractive investment due to a high number of expats and tourists willing to buy local housing for vacation purposes. However, since the beginning of the financial crisis in Lebanon,

Deal or no deal

The Beirut port explosion on August 4, 2020 resulted in the loss of more than 200 lives, countless wounded, and also massive insured losses now estimated to range between $1 billion and $1.5 billion by the website ReinsuranceNe.ws. While some of the damages have been repaid, according to the specifics of insurance policies, others have

Solidere rides the real estate wave

With Solidere having registered positive stock performance since the beginning of the economic crisis in Lebanon, and with Lebanese rushing to buy real estate in order to hedge against the depreciation of the Lebanese currency, Executive sat with Ziad Abou Jamra, Secretary of the Board of Directors at Solidere and Deputy General Manager, to talk

Cedar Oxygen: a ventilator for Lebanese industrialists?

Established in early 2020 as a private initiative to address the pressing social and economic difficulties of the Lebanese industrial sector, Cedar Oxygen was later approached by the Lebanese central bank (BDL) which invested $175 million of financing in order to address the need of local industries. In light of the financial crisis in Lebanon

Please hold for institutional reforms

Eight months after Beirut’s deadly port explosion, the French initiative seems a lost opportunity in need of resurrection. Post-blast, French President Emmanuel Macron was welcomed in the streets of Beirut on August 6, 2020, while overseeing damages, which was followed by a second visit less than a month later, on August 31, 2020. During his

Eurobonds default: a one-year anniversary

It has been one year since the Lebanese government defaulted on a USD 1.2 billion Eurobonds issuance that was due on March 9th 2020. One year on, negotiations with Eurobond holders have still not begun, and no good faith discussions with the International Monetary Fund (IMF) have been engaged in order to help negotiate a

Currency boards or central banks?

With Lebanon going through hyperinflation, some economists have deemed the establishment of a currency board (CB) necessary to help curb inflation. To better assess the possible establishment of a CB, and its probable effect on the Lebanese monetary situation, Executive Magazine talked to Steve Hanke, professor of Applied Economics at Johns Hopkins University and one

Currency board for Lebanon

The Lebanese are currently subjected to depreciation, with the ever-rising prices of goods and services, self-imposed limits on withdrawals by banks at a rate of LBP 3,900 to the dollar, and a local currency estimated at LBP 9,600 to the dollar as at March 1st 2021. Rampant inflation was estimated at 84.8 percent for the

Pivotal events of 2020

DECEMBER 19Parliamentary consultations take place. Mr. Hassan Diab is nominated to form a government, backed by the Amal movement, Hezbollah, the Free Patriotic Movement, the Marada and others. DECEMBER 20-31Heavy protests take place, protesting the nomination of Hassan Diab as Prime Minister. JANUARY 14Lebanese Protests resume after weeks of calm. Banks are heavily targeted as

Lebanese start-up funding threatened

Eager to capitalize on the tech-savvy population,high education rate and entrepreneurial spirit, Banque du Liban’s (BDL) Circular 331, released in 2013, paved the way for the creation of dozens of startups in Lebanon, in addition to accelerators and incubators. Despite this support, events of the past few years have put a stop to the generous

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