Globalization is a buzzword in business. While companies in
most countries see it as an opportunity, many in Lebanon see
it as a necessity. With a market of about 4 million ensnared in economic
stagnation, it’s no wonder that Lebanese firms are looking
beyond their borders.
Some are relative newcomers. The need for generators has dwindled
over the years, so Jubaili has lost power. But the company
found markets in Nigeria and the UAE, which make up 70% of its revenues,
and increased its turnover as local sales dropped dramatically.
Arab Traders’ income jumped from $200,000 to $6 million
in four years, moving goods from one continent to another, with
only 15% going in-and-out of Lebanon. Knowing that Lebanon is
just a testing ground, this country’s first factoring firm, Ipso
Facto, is increasing capital that will help it to go regional this year.
This month’s cover story looks at C.A.T., a contracting company with
a history of doing business elsewhere, that is getting its second wind.
It restricts itself to project management in Lebanon, while its lucrative
construction contracts are in the Gulf and Africa. It has a desire
to do construction in Lebanon, but only when conditions have
improved. After falling from grace – revenue dropped from more than
$1 billion in the early 1980s to about $25 million in 1995 – C.A.T.
is making a comeback. Ninety percent of its $80.2 million in revenues
last year came from abroad.
On the flip side, foreign companies coming to Lebanon have not
exactly been welcomed with open arms. Three foreign investors
are tied up in disputes with the government involved in the development
of “the gateway to Lebanon,” the Beirut International
Airport. If only Lebanon could bring in as much as it lets out.
