FOREIGN INVESTORS CURB THEIR APPETITE FOR LEBANON

Investments coming into Lebanon from abroad totaled just $1.1 billion in 2012, down almost 70 percent on 2011 and the second sharpest decline amongst emerging markets, according to a report by the Institute of International Finance. In the Middle East and Africa (MEA), Lebanon was the smallest recipient of foreign direct investment (FDI) and Saudi Arabia the largest, with $17.3 billion flowing into the kingdom. As for FDI outflows, a total of $650 million left the country for investment abroad, down 13 percent on 2011, and representing the third lowest in the MEA. As a percentage of the size of the economy, FDI accounts for just under 3 percent, a drop since 2008 when FDI accounted for 14 percent of gross domestic product — the MEA and emerging market average was 2 percent, according to the study. Lebanese banks – the Cyprus exposure There are 12 Lebanese banks operating in