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BusinessEntrepreneurshipEntrepreneurship in Lebanon

Drawing production power from the sun

by Jeremy Arbid September 9, 2015
written by Jeremy Arbid

For any manufacturer, a reliable and affordable source of electricity is a necessity. This summer, Technica, a regional leader in the building of automated end of line solutions – machines that prepare already assembled products for shipping – switched on its new photovoltaic (PV) panels. This, says Strategy Manager Cynthia Abdul Khater, is a first step toward electricity independence, by drawing power from the sun.

Technica requires a lot of electrical juice to run the factory. They estimate a daily minimum of 100 kilowatts to power operations and the new PV system will supply 64 kilowatts during peak sunlight. Currently, demand is supplied from the government’s electrical grid, affordably at $0.12 per kilowatt hour, but blackouts have forced the factory to rely on expensive generators which they estimate to cost $0.30 per kilowatt hour.

Saving funds one solar panel at a time

The PV system is paid for by a subsidized loan from Lebanon’s Central Bank through Circular 331, and they estimate the new system will save the factory $21,000 in its first year and $674,138 over the next 30 years. Technica is also projecting to eliminate 1,679 tons of carbon dioxide emissions, during the system’s lifetime as they reduce reliance on generators. Technica is now beginning to study the technical and financial benefits of expanding the PV system to 180,000 kilowatt hours per year, double the current output.

When the factory is not operating, the panels feed electricity into the public grid through the government’s net metering scheme. The scheme, and solar energy, is part of the government’s plan to generate 12% of energy needs through renewable sources by 2020 – for the government’s National Energy Efficiency Action Plan.

September 9, 2015 0 comments
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BusinessEntrepreneurshipEntrepreneurship in Lebanon

Beirut River Solar Snake turned on

by Jeremy Arbid September 9, 2015
written by Jeremy Arbid

Last month’s heat wave saw near record highs in temperature and heat indices across Lebanon, causing rolling blackouts on top of the regular scheduled electricity cuts in Beirut. Amid the power shortage comes 1 megawatt of good news – the Beirut River Solar Snake (BRSS), a photovoltaic system spanning the Beirut River, has been switched on.

“The Solar Snake is on and already feeding electricity into the network – now it is connected to the grid and is in a testing period, but we didn’t announce it yet officially,” says Pierre Khoury director of the Lebanese Center for Energy Conservation (LCEC). He says the BRSS began its testing phase at the end of July and will be announced in a formal ceremony before or during September’s Beirut Energy Forum. Ferial Nohra, assistant general manager at Phoenix Energy, confirmed to Executive by email that the photovoltaic system is feeding electricity into the public grid.

BRSS was originally scheduled for early 2015, but a long winter season, Khoury says, plus final preparations and aesthetic installations – a chainlink fence, greenery, and signage – delayed delivery by nearly two months. “We could announce it today but we’re waiting for the right moment to announce to give [BRSS] visibility,” Khoury says.

The BRSS is a two phase project with a total planned output of 10 megawatts. Khoury says the LCEC has begun planning for the next phase but is currently focused on designing a 1 megawatt solar farm to be built at the Zahrani oil installations south of Beirut.

September 9, 2015 0 comments
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BusinessEntrepreneurshipEntrepreneurship in Lebanon

Renewing the Source

by Jeremy Arbid September 9, 2015
written by Jeremy Arbid

It was at the Copenhagen Climate Summit in 2009 that Lebanon committed itself to generate 12% of total energy from renewables by the year 2020. An electricity whitepaper from 2010 laid out the plan, and the government has made incremental headway toward generating electricity from renewables, particularly in capturing the sun’s rays.

Pierre Khoury, director of the Lebanese Center for Energy Conservation (LCEC), says Lebanon is well on its way toward reaching its goal. “By the end of 2015, Lebanon will have 15 megawatts of solar farm installations. All these installations are done through two main incentives – one by the ministry and the other through financial incentives from Lebanon’s central bank,” says Khoury. 1 megawatt, he says, is enough to satisfy 1000 Lebanese houses. He also says that nearly 15 percent (150,000) of Lebanese households have water heaters powered by solar panels.

The target for 2020 is to have between 200 – 250 megawatts generated, so the 15 megawatts is only a small portion of the goal. “Today we have around 2 percent of the 12 percent [goal] coming from solar water heaters. Around 4 percent of the goal will come from photovoltaic (a method of converting solar energy into direct current electricity) – now we have 15 megawatts.” The remaining 6 percent is to be generated from wind and hydro power.

The other renewable energy sources haven’t moved forward as quickly. Khoury says the third priority was wind energy and that an inter-governmental committee has finished evaluating offers for projects submitted by the private sector. The minister of energy has yet to forward the committee’s recommendations to the Council of Ministers. Hydro power, Khoury says, has a lot of potential but is very complicated due to legal and environmental issues – most recent plans for the Janna Dam were halted by a parliamentary committee.

The photovoltaic projects, like the Beirut Solar Snake or Technica’s solar panels, are not meant as replacements to traditional power supplies but to raise awareness and signal that the government is committed to renewable energy sources. The ministry of energy, together with the LCEC and other stakeholders, are now preparing the policy for the period 2016 – 2020 – one policy dedicated to energy efficiency and the other specific to renewable energy.

September 9, 2015 2 comments
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Special ReportWaste Management

In photos: People take their frustrations to the streets

by Greg Demarque September 8, 2015
written by Greg Demarque
Protesters take to the streets in anger over government corruption and inaction. August 22, 2015.
Protester defiant in the face of armed security forces. August 22, 2015.
Protesters face off with security forces in Downtown Beirut. August 22, 2015.
A bystander looks calmly on as security forces use water cannons to disperse protesters. August 22, 2015.
Hundreds of protesters have been injured as a result of security force brutality. August 22, 2015.
Tensions mount between protesters and security forces as some see them as protectors of the system and not the people. August 22, 2015.
A concrete wall was erected to prevent protesters from reaching the Serail, but was removed after just 24 hours. August 24, 2015.
Protesters carry a banner which reads "Leaders shoot bullets at their people. They belong in prison, not in power." August 25, 2015.
People have thrown piles of trash in front of the parliament building in protest. August 25, 2015.
People are angry at Interior Minister Mashnouq for partying in Greece while protesters were being beaten up by security forces. August 29, 2015.
"Let's get rid of the deals of the sectarian leaders." August 29, 2015.
People of all ages took to the streets to vent their anger over the trash and larger political crisis. August 29, 2015.
Parents took their children to the anti-establishment protest in nationwide solidarity with the movement. August 29, 2015.
Protesters attempted to cut through the barbed wire which separated them from the Serail. August 29, 2015.
People have vowed to continue protesting until change is brought about. August 29, 2015.
September 8, 2015 0 comments
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Special ReportWaste Management

The world of waste

by Matt Nash September 8, 2015
written by Matt Nash

Imagine following your trash.

On Twitter.
“Hello, this is container 100406100067629 in Le Roy, USA. I am 20% full.”

You’ve heard of smartphones and smart homes. Meet smart trash. Or, to be less anthropomorphic, web savvy systems for efficiently collecting household waste.
The trash bin Twitter feed comes to us from Enevo, a Finnish startup founded in 2010 which this year secured $15.8 million in funding, following $10.3 million raised in 2012 and 2013, according to the company’s website. Enevo’s value proposition is simple: make trash collection more efficient – meanwhile reducing both cost and carbon footprint – by using sensors and the web to identify which bins actually need emptying. And it’s not just bins getting more intelligent. In cities with advanced waste management plans, individual households or business establishments may have to pay extra fees for generating more than their allotted amounts of garbage. To help calculate those fees, there are garbage trucks fitted with GPS trackers and scales so that the amount of waste collected from a certain location is known and priced immediately. And while the digital age is providing smart solutions for how waste is collected, intelligent ways for dealing with tons and tons of trash are, by 2015, pretty well established.

King of garbage mountain

When talking trash, one phrase you are certain to come across is “waste hierarchy.” As the US Environmental Protection Agency describes it, “the hierarchy places emphasis on reducing, reusing and recycling the majority of wastes.” Treatment and disposal are at the very bottom of the inverted pyramid. At the top is a call for action incongruent with a consumerist society: generate less waste. The more we buy, the more we throw away. A 2012 World Bank study on global waste management practices notes that “as a country urbanizes and populations become wealthier, consumption of inorganic materials (such as plastics, paper and aluminum) increases, while the relative organic fraction decreases.” This is not to imply that as wealth grows, people become more wasteful. Packaging also plays a role, and it is therefore incumbent – according to the waste hierarchy – on producers to minimize their product containers. This applies equally to restaurants offering delivery services.

What a dump

That said, for all the talk of reducing, reusing and recycling, it seems the majority of the world’s household waste is still simply buried away somewhere. The 2012 World Bank report found that over 40 percent of the municipal solid waste (MSW) for the 85 countries for which data were available ends up in a sanitary landfill. The report says that around 8 percent ends up in a dump. For those not well versed in waste management lingo, a sanitary landfill is a purposefully engineered garbage depository. As waste disintegrates, it produces a toxic sludge called leachate – which can seep into and poison groundwater – and unwelcome gases, particularly methane. Sanitary landfills include, among other things, systems for controlling leachate and gas emissions, thus making them more environmentally friendly than dumps – which are sites where waste is thrown without controlling for the future. In Lebanon, according to a 2015 presentation by the Ministry of Environment’s waste expert Bassam Sabbagh, 51 percent of Lebanon’s MSW goes into a sanitary landfill while 26 percent winds up in a dump. The remaining 23 percent is either composted (15 percent) or recycled.

The ministry refused an Executive request to interview both Sabbagh and Minister Mohammad Mashnouq for this report. As a result of the closure of the Naameh sanitary landfill on July 17, the percentage of trash dumped is significantly higher. The country’s only other sanitary landfills are in Zahleh and Bsalim. The latter is only used for inert, dry materials like wood and tires, not MSW. The government’s “temporary solution” to the waste crisis has been telling municipalities in Sukleen’s service area to find their own dumping grounds. Evidence from Executive’s own investigations and photos shared on social media suggest waste from Beirut and its surrounding districts is being dumped seemingly at random, burned or both. Asked at an August 19 press conference how the ministry plans to clean these environmental disasters, Mashnouq referred Executive to an advisor who did not answer when contacted after the event.

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Garbage power

In industry parlance, waste to energy means burning garbage to create electricity. Incineration, however, is not the only way Lebanon can use its refuse to help solve its power crisis. In fact, waste is creating electricity in Lebanon right now – and the amount is only set to expand. US-based General Electric announced in July 2013 that it would be installing landfill-gas-to-energy engines in Naameh as part of a pilot project. In early August, Sukleen and Sukomi officials gave Executive a tour of their operations, including the electricity generation station. The officials – who agreed to the tour on the condition they not be named – said they are currently producing 0.5 Megawatts of power, but could ramp that up to 6. According to Council of Minister’s decision 111 of May 21, 2015, the Council for Development and Reconstruction – which is the contractual partner of Sukleen and Sukomi – was given $10 million to make the upgrade. The money – along with over $6 billion to be paid for unidentified services rendered in 2012 – will be paid “to a company [previously] chosen” by CDR, according to the decree. The decree does not name the company, and CDR refused Executive’s interview request.

Down in Saida, a group of six Saudi and two Lebanese investors formed a company in 2004 and reached an agreement with the municipality to treat waste from the city and several neighboring municipalities (See story page 20). The company – IBC – is generating power to fuel its own operations through composting, or the conversion of organic waste into a soil conditioner, which is different from fertilizer in that it is beneficial for the soil, not just plants. Compost is made in one of two ways: with oxygen and without. Making compost in an oxygen-rich environment (as Sukomi does in its Coral facility in Bourj Hammoud) takes 72 days and requires the organic waste to be laid out in what are called windrows – creating the look of a fallow field ready to be planted. Making compost without oxygen – as IBC does – requires more investment in technology and machinery (called digesters, in controlled waste decomposition lingo) and comes with a potentially useful byproduct: biogas, which is mostly methane. This gas can be burned to create electricity. And IBC is doing just that. The plant has a capacity to receive and treat 500 tons per day of waste, but is currently only receiving around 250, general manager Nabil Zantout tells Executive. As such, IBC is only producing 1.6 megawatts for internal use, although he adds that .15 MW are used at night when the plant is not operating to power Saida’s streetlights.

[pullquote]waste is creating electricity in lebanon right now – and the amount is only set to expand[/pullquote]

IBC is also using some of the waste it collects to produce refuse-derived fuel (RDF) – or garbage logs that can be burned to create electricity for industry. Globally, cement plants are big RDF users. Sukomi wanted to create RDF for the cement industry, according to Averda CEO Maysarrah Sukkar who spoke during a late July interview on the popular LBCI talk show Kalam An-nas. But the government never reacted. At least one local cement producer – Cimenterie Nationale – is in favor of using RDF, according to its website, suggesting there is at least some market for the material in Lebanon. For now, Zantout says he has no local market for his RDF, though he is hopeful the Ministry of Environment will soon start licensing industry to use this source in the future. Until then, Zantout shows Executive non-load-bearing breezeblocks and sidewalk tiles made of waste which he says can be used as construction materials.

Incineration: A dirty word in Lebanon

Lebanon today does not have a waste incineration plant although building them has been part of the Ministry of Energy’s various national strategies for waste management for nearly a decade. During the war years, there were incinerators, and the state even paid $7 million to rehabilitate and upgrade one in Karintina in the late 1990s, only to close it shortly after the work was completed. Since then, activist opposition to incineration and resident rejection of a plant “in my backyard” have been the consistent barriers to waste to energy in Lebanon, according to interviews with officials responsible for waste management over the past three years. Incineration creates pollution, but suppliers of these plants in 2015 include the proper filters to minimize this pollution as part of their plants, which is already included in the price. Burning garbage also produces a toxic byproduct known as “fly ash” which must be properly landfilled, meaning an incinerator is not a complete replacement for a sanitary landfill.
Globally, according to the World Bank study, waste to energy follows closely behind recycling as the third most common method for waste disposal. A technical barrier to waste to energy in Lebanon is the country’s high percentage of organic content in its garbage. The moisture content of this type of refuse is high, thus it does not burn well. A 2015 Ministry of Environment presentation based on 2012 data says 53 percent of Lebanon’s waste is organic. A separate Ministry presentation reporting on a study conducted by the Danish company Ramboll on waste to energy solutions in Lebanon says that 15 to 20 percent of the organic material would have to be removed from the waste stream for it to be useful in an incinerator.

Separating the organics

Composting, therefore, would work well in Lebanon, albeit less well if garbage continues to come to a treatment plant mixed. IBC’s Zantout explains that receiving mixed waste gave the company a years-long headache as it tinkered with getting the compost clean and pure enough for farmers to be willing to use it. It’s very difficult, he says, to get small bits of plastic, broken glass and other impurities out of the organic stream. “It took us three years to get the compost right,” he adds. He explains that the plant is using German-made equipment and sorting machines, but they were not able to simply plug them in, start them up and begin compositing. “We had to do lots of modifications.” All of this experimentation, however, will pay off, Zantout believes. He says IBC and a German consultant who helped design the process they have in place for creating compost will file a joint partnership patent. “We have a model for anaerobic digestion of mixed waste,” he says. This model, he believes, is exportable. Throughout the MENA region, waste has a high organic content, so there is no shortage of opportunity. As for what valuation he’d give IBC at this point, he laughs. “It’s premature because we’re still in debt.”

trash3x

IBC was not alone in having trouble turning mixed waste into compost in Lebanon. Sukomi – which composts 300 tons per day of organic waste – had the same problem, an official tells Executive on a tour in mid-August. The company has since also experimented and invested in more advanced sorting technologies. The official says that Sukomi gives the compost free to farmers, and notes 80 percent of those who take it travel from across the country to Bourj Hammoud to pick it up, suggesting that were it for sale, there is a market for such a product. Zantout is also giving his compost away for free while continuing to work on increasing the purity. He too believes there’s a compost market in Lebanon.

The country’s garbage future

While it may seem hard to believe given the current state of waste management in Lebanon, the country has several garbage innovators. IBC is one example, but Cedar Environmental also has a patented technology for composting mixed waste with anaerobic digestion. Since 1999 Cedar has been building plants in Lebanon, company CEO Ziad Abi Chakra told Executive in an interview earlier this year. And, love them or hate them, Averda used Lebanon as a training ground and is now managing waste in several cities outside of the country, according to the company’s website.

Had the government not cancelled the waste management tenders it organized, there would have been many more solutions throughout the country. Although these solutions would have been costly, they were based on internationally proven technologies. Instead, there are now more open dumps – which entail zero technology and come with absolutely no sustainability – and no clear strategy for what to do with them. It is unclear if the plan to send waste to Akkar includes trying to clean up the damage that has been done since the Naameh landfill closed. And if the three-year Akkar ‘emergency plan’ falls through, who knows what will come next. Perhaps we will revert to the ways of antiquity. Former Environment Minister and current Agriculture Minister Akram Chehayeb has one such solution. Along the coast near Amrousayeh, south of Beirut where Sukomi currently has a sorting facility, he says untreated wastewater has for years been dumped into the sea, killing off any life that once lived there. Given the advanced state of degradation in the area, Chehayeb says, “I would suggest to construct a breakwater and dump [the waste] into the sea.”

[pullquote]It may seem hard to believe [that lebanon] has several garbage innovators[/pullquote]


It was not exactly clear how serious the proposal is meant to be, given that Chehayeb acknowledges that this “solution” would violate any imaginable international treaty and environmental obligation that Lebanon has, plus notes that Speaker Nabih Berri is against it. Optimism, a national virtue in the face of a garbage disaster that is unresolvable given the current political procrastination, dictates that the next iteration of tendering will result in some form of real solid waste management. When this will happen however is anyone’s guess, but we can rest assured that it will not be as soon as needed. This leaves the door wide open for ad-hoc initiatives to make as much money with as little responsibility as possible, whilst condemning Lebanon to its rotten fate. The currently uncontrolled burning of trash – which is the surest way to release toxins and carcinogenic substances such as the notorious dioxins, into our already poisonous city air – makes even the absurd marine dumping idea look appealing. Indeed, to environmentally and economically justify this ‘lesser’ of two evils, Chehayeb goes so far as to note that the offshore area next to Amrousayeh has both depth and a high salt concentration – plenty of decomposing space in our wonderful waters. Chehayeb quips that the waterfront area Solidere reclaimed near the old Normandy dump “is the most expensive land in Lebanon.” So once the dump in the sea is full, we’ll have a nice slice of new seafront real estate to develop.

September 8, 2015 0 comments
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CommentOpinion

Five human rights priorities for Lebanon

by Executive Editors September 8, 2015
written by Executive Editors

Screen Shot 2015-09-07 at 12.26.10 PM

1

Torture victims

Torture and ill-treatment remain a serious problem in Lebanese detention facilities and jails. Documented cases range from security forces beating a janitor suspected of theft during his interrogation, to members of the intelligence services subjecting security suspects to systematic torture over several days. An October 2014 UN report found that “Torture in Lebanon is a pervasive practice that is routinely used by the armed forces and law enforcement agencies.” Lebanese authorities should establish a national mechanism to visit detention facilities, monitor the treatment of and conditions for detainees, and develop a national strategy to prevent ill-treatment. Legislation to create such a body has been stalled in parliament for several years.

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2

The disappeared

No country can move forward without addressing its past. And one of Lebanon’s open wounds is the issue of those who disappeared during and after the 1975-1990 Lebanese Civil War and whose fate remains unknown. In October 2012, Justice Minister Shakib Qortbawi put forward a draft decree to the cabinet to establish a national commission to investigate the fate of those who had disappeared. The cabinet formed a ministerial committee to examine the draft, but no further action was taken. The Committee of the Families of the Kidnapped and Disappeared in Lebanon as well as other civil society groups are advocating for a draft law to create a national commission to investigate the fate of the disappeared. Lebanon needs to create an independent national commission that would include representatives of the victims’ families as well as civil society experts to investigate the issue of the missing and the disappeared in Lebanon, and those abducted from Lebanon. The adoption of the draft prepared by the Committee of the Families would be a good place to start.

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3

Women’s rights

Despite women’s active participation in all aspects of Lebanese society, discriminatory provisions continue to exist in Lebanon’s laws. Women cannot confer nationality onto either their spouses or children, and Lebanon’s religion-based personal status laws discriminate against women across the religious spectrum and don’t guarantee their basic rights when it comes to issues such as divorce, property rights, or custody of children. It is time for Lebanon to amend its laws in order to treat women equally. This country will not move forward if 50 percent of the population are legally considered second class citizens.

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4

Impunity

The bigger the crime in Lebanon, the less the likelihood of punishment. When was the last time anyone was held accountable for a political assassination? When was the last time an official went to prison for corruption? Since the end of the Civil War (when the country’s warlords adopted an amnesty to cover all their crimes), impunity has been the norm. This impunity extends from top leaders to local police officers, all protected by their respective leaders. The only way to break this vicious cycle is to reform the judiciary and allow the many promising young judges to exercise their oversight role. Without rule of law, there are no rights.

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5

Rights of migrants and refugees

There are many non-Lebanese living in Lebanon today. From the 1.2 million registered Syrian refugees in Lebanon, to the estimated 300,000 Palestinian refugees and the 200,000 domestic workers. These migrants and refugees are unprotected by local laws and accordingly subject to exploitation and frequent abuse. It is time to provide them with their basic rights. This is the right thing to do but also a wise policy to adopt. Otherwise, we risk waking up one day with large numbers of disenfranchised, angry residents. Key reforms include removing the kafala system for domestic workers, easing residency requirements for Syrian refugees, and allowing Palestinian refugees – most of whom were born in Lebanon – to work and own property in the country.

September 8, 2015 0 comments
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Jewelery and watches

House of Tabbah: The designer and manufacturer of bespoke jewelry

by Sara Ghorra September 8, 2015
written by Sara Ghorra

“Diamonds Are a Girl’s Best Friend” famously sang Marilyn Monroe in the film Gentlemen Prefer Blondes, as did Nicole Kidman in Moulin Rouge. While a girl might find it thrilling to flaunt her wealth and social status through a set of diamonds, a woman often has far more personal reasons behind her fascination with jewelry.

A piece of jewelry is mostly valuable because of what it represents. Often, that ornament is the token symbol of commitment, fidelity and love that accompanies one’s marriage vows. At other times, it is the symbol of care and affection inherited from grandparents. And sometimes, it is merely an emblem of self-appreciation picked and bought as a gift for oneself.

No matter how big or small, sophisticated or simple, exorbitantly or reasonably priced the accessory might be, it ultimately becomes priceless because of the special feeling it creates. Yet, no piece of mass produced jewelry has the power to make someone feel so absolutely unique as one that is minutely tailored to their own personality.

Ever since its founding by Joseph Tabbah in 1862, the Lebanese family-owned jewelry manufacturer House of Tabbah has been offering women exclusive personalized pieces.

For five consecutive generations, spanning over 150 years, Tabbah has been a pioneer of the jewelry business, dedicated to crafting original pieces reflective of the company’s passion and craftsmanship.

Today, fourth generation Nabil Tabbah and his son Nagib run the family business together and form the harmonious creative duo behind each of House of Tabbah’s unique designs.

One can easily sense that their knowledge goes far beyond the luxurious world of gemstones. They are both driven by a genuine desire and commitment to accentuate their clients’ individuality, turning it into the specific creation they wish for. “The clients who come to us, come with a desire to create something personalized,” says Nabil.

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Unlike other international jewelry houses that end up being bought by huge companies, House of Tabbah does not prioritize financial goals. It is not motivated by an aspiration to increase sales by opening boutiques in strategic locations. That fact not only speaks to Tabbah’s valued independence in terms of creation, vision and decision, but also shows that it truly puts the client at the forefront of its concern.

“Tabbah’s raison d’être is bespoke. Create a unique piece for a unique client, that is the House’s DNA,” affirms Nagib. Indeed, the House’s revenues, which are distinctly and essentially generated from the sale of bespoke pieces, reflect this.

Although it is not an easy task to subtly evaluate people in an attempt to grasp their intricate personality, the pair’s emotional sensibility, artistic flair and human experience offer them superb guidance. The design suggested becomes the result of a special creative process which holds a particular essence of the person for whom it was designed.

“A jeweler has to be able to feel what the client truly wants,” claims Nabil. “First, he or she needs to imagine what kind of jewelry would suit their client’s personality. Then, they need to be able to communicate the design and broader vision to the craftsmen. Last but not least, the craftsmen need to have the required skills to implement the design with dexterity. All these elements form a combination that is rare to find in Lebanon, and this is where House of Tabbah’s strength lies.”

Nagib adds that “The process is truly an intuitive one, especially as it deals with aesthetics. We pay attention to every single detail, and re-work the piece as many times as necessary. It’s either excellence or nothing.”

Indeed, House of Tabbah monitors the process in its entirety, as it is one of the few jewelry houses that performs the complete manufacturing process in-house, rather than rely on outsourcing. Its Beirut workshop is a space totaling 1,200 square meters, in which 120 highly specialized craftsmen execute the designs. From prototype makers to goldsmiths, polishers, gem re-cutters and gem setters, all needed skills are available. “That is why we called the mother company ‘Metiers d’Art’, since it comprises all artistic endeavors in the jewelry making craft,” clarifies Nagib. “Goldsmithing, setting, re-cutting and polishing are all done by hand at the workshop and machines are only used for casting. A jewelry piece is always finished by a craftsman.”

This set-up allows not only full control of the production process but also flexibility, and most importantly, containment of the designs, as exclusivity and discretion are two of the principles most cherished by the house.

And these qualities are surely appreciated by all of House of Tabbah’s clients who not only rejoice in wearing their bespoke Tabbah jewelry but who also rely on the family to purchase precious stones for their private collections from international auction houses such as Christie’s and Sotheby’s.

“Our clientele trusts us. That’s why when our clients come across auctioned precious stones that they would personally like to purchase, they ask us to fill in for them in the bidding process. They know that we can somehow protect them from the possible mischiefs that usually take place during auctions and get them the best price. We know the difference between a bidder who can actually pay the price he is announcing and the one who is only trying to raise the price. In these cases our name isn’t disclosed and appears only in the auction house’s accountancy books.” Explains Nabil.

Actually, since the early 1980s, Nabil Tabbah earned an international reputation and was recognized as one of the world’s most respected buyers of stones. He acquired some historically prestigious stones, such as “The Zale Light Of Peace”, “The Red Cross”, “The Jonker”, “The Ashberg” and “The Blue Lily”, among others.

The House likes to preserve the aura of discretion that fits the beautiful world it exists in and never shares any of its clients designs, unless the latter requests it.

The House of Tabbah enjoyed global hype when Mouna Ayoub – the renowned French socialite and business woman of Lebanese origins – put up most of her personal Tabbah jewelry collection for sale at Christie’s in 1996 after her divorce from the businessman and influential advisor to the Saudi royal family, Nasser Al Rashid.

Ayoub’s expansive collection sold so well that the president of Christie’s sent Nabil Tabbah a personal letter in which he stated “since the famous sale of Mouna Ayoub in November 1996 in Geneva, we have found that jewels signed by Tabbah are greatly sought after by collectors throughout the world”.

Tabbah’s clientele largely consists of affluent personalities, collectors and royalty from around the world, and the company’s customer circle widens mostly through appreciative word of mouth. That might be what led HSH Princess Charlene of Monaco to solicit House of Tabbah in 2011 for a bespoke piece that was later designed by Nagib and crafted in Beirut. She wore the famous ‘Infinite Cascade’ necklace on the evening of her wedding ceremony to HSH Prince Albert II of Monaco.

tabbah3

But although House of Tabbah gets much gratification in adorning the excessively wealthy, it does seem desirous of introducing its craft to a wider audience away from loud advertisement. That is why in 2014 it opened its jewelry salons on Allenby Street in the Beirut Central District here in Lebanon.

“Some clients aren’t aware of the bespoke jewelry possibilities. In our boutique, they are exposed to limited series that reflect House of Tabbah’s craftsmanship and creativity. The presented range of jewelry will allow them to imagine what they can design for themselves.” asserts Nagib.

Beyond high-end jewelry, House Of Tabbah had also been working with jewelry timepieces since the previous Nagib Tabbah started designing watches to be manufactured in Switzerland back in the 1950s. Over the years, the House represented prestigious Swiss luxury watch manufacturers such as Piaget and Vacheron Constantin, before becoming independent in the 1980s. That is when they started creating their own watches, the first of which was the ‘Saga’. Many series came after it and were mainly sold in Japan.

Now a new project has begun with the opening of an office and the creation of a subsidiary of Metiers d’Art in Geneva, Switzerland. House of Tabbah is designing and locally crafting complete prototypes that are later sent to Geneva for execution. Every element of the watch is selected from some of the best Swiss manufacturers before being artfully assembled into a signature Tabbah watch. Yet the most interesting part about this venture is the fact that clients will be given the opportunity to customize their watch by changing most elements aside from the case.

People are constantly seeking ways to differentiate themselves and stand out from the crowd. That is why nothing trumps personalization. And as most businesses steer away from that hassle, some have it in their blood and remain appreciative of that art. House of Tabbah is one of them.

As Nagib perfectly concludes “The future is not imposing, the future is proposing.”

September 8, 2015 0 comments
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LeadersOpinion

Criminal negligence

by Executive Editors September 7, 2015
written by Executive Editors

Every minister deserves to be in jail. By closing the Naameh sanitary landfill without an alternative in place, our politicians committed a crime that will continue damaging this country for years to come. And the calamity we are currently living through was predictable – in fact, we foresaw this.

When residents near Naameh clogged Beirut’s streets with trash in January 2014, our elected officials decided to close it one year hence – with a possible three-month extension. In April 2015 (27 months later, or over a year after a ministerial committee had been tasked with organizing a tender to avert the current environmental catastrophe), the first competitive bids to manage solid waste in Lebanon’s post-war history closed. On July 17, 2015, so did Naameh. Chaos ensued.

According to ministry of environment estimates (see story page 20), 99 percent of Lebanon’s garbage gets collected. Apart from the Sukleen service area and select other major cities – Tripoli, Zahle, Saida, etc. – municipalities handle that task. Unable to finance proper waste disposal facilities, facing resident opposition to living near such facilities, or both, our cities generally do not dispose of what they collect in an environmentally sound way. Before Naameh closed, some 26 percent of the country’s waste was simply thrown in – or very near to – someone’s backyard. Unsorted, untreated and sometimes set on fire. Open dumping of trash (which poses risks to human health and can contaminate soil as well as ground and surface water) and the uncontrolled combustion of it (which increases the risk of cancer for those lucky enough to savor the stinking aroma) are well documented, decades-old problems in Lebanon. Closing the country’s largest sanitary landfill added another 2,500 tons PER DAY to the mix.

It’s disappointing that the government cancelled the tenders. Forgetting price – and the inherent accusation of corruption that comes with it here in Lebanon – for just one second, let’s remember that we would have had all of our garbage collected, treated and disposed of for once. On top of that, the prices seem reasonable (see story page 20). We could have had a window into that world. One of the winning joint ventures had pledged to list 30 percent of their capital on the Beirut stock exchange – finally allowing public scrutiny of a waste manager’s financial statements.

But past is past. Going forward we need to act fast and think practically, not ideologically. We’re in an emergency situation. We must all immediately begin reducing the waste we generate and sorting our own recyclables to keep as much trash from the open dumps as possible. To fix our garbage problem once and for all, we must accept the cost and locations of modern waste treatment facilities or else we’ll continue choking on our own trash.

September 7, 2015 0 comments
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Leaders

The garbage revolution

by Executive Editors September 3, 2015
written by Executive Editors

Disaster looms. The natural beauty of our country is under attack by the criminally negligent handling of our trash. The damages already done to our environment and health are terrible, and the consequences will remain obvious and visible for years to come.

Our economy is circling the drain. The most generous estimate sees it growing by only a fraction of a percentage point for the current year, but the more realistic expectation is one of contraction. Unemployment is systemic, our youth see few opportunities in their futures, and those who can are preparing to leave if they haven’t done so already. The disparity between rich and poor has never been greater – poverty is at an all time high and the middle class is shrinking, all while the rich get richer.

We can no longer protest peacefully without fear of police brutality. There is inequality in the provision and standards of public services to our poorest neighborhoods and to the Palestinian and Syrian refugee camps. Our border areas are not secure, leaving local residents vulnerable to kidnapping or worse, all while we’re pulled further into someone else’s civil war.

We are teetering on the brink. The chasm between our political factions is terribly vast – one side boycotts the cabinet while the other passes decrees – a paralysis that will be disrupted one way or the other. It is not sustainable. The crisis triggered by our trash emergency demonstrates what Executive has been saying for a long time – namely that our political parties and elites lack foresight.

There are civil servants and politicians that take their jobs seriously. They are potential allies and we should remember that change can also come from within. But the leaders of our popular political parties are devoid of conscience, value, and moral ethics. They use Lebanon as their personal playground financed by us, the taxpayers, whom they see as piggy-banks. They blast through traffic in their armored convoys protected by bodyguards above the law on their way to extravagant properties we’ve indirectly subsidized.

We’ve written for years about the seedy underbellies of our public institutions, made ineffective by our corrupt leaders. It is unmistakeable that we have been living this charade, unhappily confused, either with our heads in the sand or playing along as the loveable fool – all while our leaders manipulate us along sectarian lines through politically captured media outlets, robbing our country blind in the process.

But no longer. The process of a smart revolution is not a knee jerk reaction nor achievable by only chanting slogans. Take to the streets, but do so with purpose. It was a good start for people to gather and demonstrate irrespective of community and religion, but there is now a need to return to the drawing board and strategize. For years we’ve been researching and investigating Lebanon’s many social and economic problems (see Executive manifesto). By doing so, we’ve also identified practical and reasonable solutions. This is where Executive can add value in building a functional and prosperous Lebanon – we know what we need to demand of our government, particularly if we are to have leadership change. Let us unite for a smart future.

September 3, 2015 0 comments
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Executive Manifesto

Ten steps to a smart future

by Executive Editors September 3, 2015
written by Executive Editors

1 Natural resource management

water1Our reservoirs have nearly been pumped dry by lack of foresight while pollutants threaten to contaminate our drinking water. In order to properly manage our water resources we must measure our snow and rainfall, regulate water usage, and invest in sanitation infrastructure. Our potential hydrocarbon resources must be developed for the benefit of the Lebanese people. Commit to removing political interests from exploration license negotiations and future subcontracting deals and ensure appropriate environmental measures are in place to protect from spills and other damage. Our coastal waters are polluted by runoff, we’re choking on exhaust, and garbage is literally being thrown into our valleys and forests. We need to protect our environment, its beauty and natural wonders.
For more in-depth analysis, see EXECUTIVE articles: While Rome burns (#181)  /  Heads in the sand (#182)  /  Politics and public health (#186)  /  Non evasive action (#183)  /  All at sea (#183)

2 Workers’ rights

domestic workers

Women are integral to our workforce and vital to the health of our economy. We must not relegate their status to that of a second class worker – gaps in compensation, benefits, and workplace responsibilities must be closed. Maternity leave must be expanded and not viewed as an impediment to career advancement – likewise paternity leave should also be a worker’s right. We must also abolish the Kafala system for foreign domestic workers. In the interim, we should apply principles of equal treatment: we must protect against exploitation and abuse by enforcing contracts that limit working hours and grant time off. We must also ensure access to the same social safety nets of health and education to all legal residents of Lebanon.
For more in-depth analysis, see EXECUTIVE articles: Women in the workforce (#188)  /  Domestic workers: ignored but active union (#190)

3 Refugees

3

Lebanon now hosts over 1.2 million refugees, many seeking asylum from neighboring Syria. The population increase has strained Lebanon’s resources so that basic needs are not being met. We need help from the international community to provide asylum seekers their basic human rights – the rights to shelter, education, health, and work. Rather than abhor their presence, we must contribute to addressing their needs to reassure donors so they continue to support the most vulnerable populations and invest in our infrastructure.
For more in-depth analysis, see EXECUTIVE articles: Syrian refugees: lower the drawbridge (#177)  /  The root of good (#184)  /  The blame game (#189)

4 Promoting Lebanon

byblos1

Tourism is touted as one of the main pillars of the Lebanese economy, and indeed it has real potential for growth.  Despite this, we’re not playing to our strengths. We must promote Lebanon’s geographic indicators and our tourism potential. Our products, such as wine, must be supported in the export market. Diversify tourism to promote rural and cultural landmarks with a clear strategy to promote Lebanon abroad.
For more in-depth analysis, see EXECUTIVE articles: Tourism Starts at Home (#192)  /  Fix it and They Will Come (#178)

5 Utilities and public services

2Our failing public services limit our economic productivity, harming in turn our environment and our health. We must commit to long term plans that provide us with 24/7 electricity, fast internet, and sustainable waste management. Start by appointing the electricity regulation authority to begin building power plants and increase generation capacity. We already have a plan from 2010 that calls for a capacity increase, a reform of the electrical grid, and an emphasis on renewable energy. Let’s continue implementing this plan. We need to further broadband internet penetration in order to drive growth and remain economically competitive. Activate Lebanon’s already installed fiber optic backbone, bridge connections from the backbone to homes and businesses, license more capacity to our internet service providers, and lower the costs of subscription. Abdul Monheim Yousef must be removed from at least one of his positions – such a blatant conflict of interest must end. We must also implement sustainable solutions to treat our solid waste. Invest in waste management capabilities nationwide to sort, landfill, incinerate or compost our trash. We must also teach ourselves to reduce our waste at the household level, recycle more and stop littering.
For more in-depth analysis, see EXECUTIVE articles: Electricity: crumbling behind the country (#147)  /  Renewable energy (#194)  /  Light a fire (#190)  /  Flipping the switch (#189)  /  Master muddler (#189)  /  Waste: Tsu–Naameh (#187)  /  Knee deep in trash, political and literal (#193)  /  Criminal negligence (#194)

6 Infrastructure

port1We need to revitalize our national infrastructure to encourage economic development. We lack a national wastewater collection network and have treatment plants connected to nothing. This must be fixed once and for all. We can no longer dump wastewater untreated into the sea or onto the land, where it can contaminate our groundwater. Our roads are filled with potholes and we lack a real public transportation system. We must maintain the integrity of our roads, highways, bridges, and tunnels and build new thoroughfares to support economic development in even the most remote locations of Lebanon. We need to expand our limited bus system and invest in mass transit options that improve connections between our cities. Our points of entry are public assets that are vital to economic health. We need a strategy to integrate our seaports into international value chains, vis-a-vis each other, with organizational structures that prioritize the national economy.
For more in-depth analysis, see EXECUTIVE articles: Water: quality concerns (#183)  /  Public private partnership (#149)  /  The road to more traffic (#184)  /  A port policy for all (#192)

7 Private sector

smes1The private sector is the backbone of Lebanon’s economy. For the nation to flourish, social and economic justice must increase and never be compromised. At the same time, economic justice will be condemned to subsistence living if economic productivity is ignored or impeded. Our banking sector is the jewel in the economic crown but that doesn’t mean it cannot be improved. Its taxation must be just. Banks’ conduct in financing the deficit and helping small businesses and citizens through lending has need for greater transparency and growth. Our industry has underused economic potentials that deserve to be nourished and equipped with smart investment support. Our businesses need better corporate laws to operate under and at the same time have to practice corporate governance that will attract investors. Our entrepreneurs deserve a boost in attention and our ecosystems for entrepreneurship and creative industries have much room for development.
For more in-depth analysis, see EXECUTIVE articles: Taxes: Don’t kill our banks (#179)  /  Retail banking gains ground (#176)  /  Taming the central bank (#192)  /  Responsible to govern (#194)  /  Entrepreneurship: In praise of chaos (#184)

8 Public policy

parl1Our treasury is in complete disarray and our public debt has spiraled. Our regulators lack authority and we base our policies, for which there is no transparency, on guesses rather than quantifiable fact.  We have no idea how our government really spends our money. We need to pass a budget to facilitate long term planning and to hold government expenditures to account. Empower regulators to oversee their assigned industry or market segment. These bodies need to be given teeth in their legal mandates, boards of directors need to be appointed while governing committees whose terms have expired need to be replaced. We need to build transparency into our public institutions by passing anti-corruption legislation. We need an access to information law and a law to protect whistleblowers. We must have an E-Government portal that centrally allows users to track legislation at ministries, the parliament, and the council of ministers from draft status through publication in the national gazette. Pretending our population is the same as it was in 1932 is ridiculous. Public policy and the private sector need quantifiable data to form the basis of decisions. Empower the Central Administration of Statistics and ministries with the tools and budgets needed to collect and disseminate statistics.
For more in-depth analysis, see EXECUTIVE articles: Billions beyond budget (online only)  /  The incremental approach (#185)  /  Laying a foundation (#182)  /  Open the doors of parliament (#178)  /  A matter of perspective (#184)

9 Landuse
park1The legal framework governing our real estate sector is full of contradictions. Land wealth is concentrated into the hands of a few, leaving many residents to depend on outdated rental rules that discourage landowners from reinvesting in their buildings. We need to smartly plan our cities. We have far too many buildings and development projects that no one is buying because the average person cannot afford them. Real estate permits should be directly linked to proven demand. If a project won’t sell, it should not be built. We must provide public spaces for our children to play in and we must protect our ruins and cultural sites from development. Affordable public housing must be a priority. The government has to allocate money for the public housing fund it created with the new rent law. On top of that, it should create a scheme to incentivize the building of low-cost housing. Forcing developers to build two affordable apartments for every one elite apartment would be a good start.
For more in-depth analysis, see EXECUTIVE articles: Throw open the doors (#189)  /  Public parks, private payment (#176)  /  The dangers of stimulus (#191)

10 Public health

health1Our population is aging while risk of lifestyle diseases remains significant. We must maintain and improve quality – and advance universal provision of modern treatment – in our clinics and hospitals through reforming, financing and encouraging investment in our healthcare system. Health and quality standards in our food and consumable products must be maintained and improved. We must have institutional reform to create a serious, frequent and surprise inspection regime.
For more in-depth analysis, see EXECUTIVE articles: Healthcare: a prescription of order (#189)  /  Hungry for change (#189)

September 3, 2015 0 comments
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Since its first edition emerged on the newsstands in 1999, Executive Magazine has been dedicated to providing its readers with the most up-to-date local and regional business news. Executive is a monthly business magazine that offers readers in-depth analyses on the Lebanese world of commerce, covering all the major sectors – from banking, finance, and insurance to technology, tourism, hospitality, media, and retail.

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