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AutoTest Drives

A Maybach comeback by Mercedes

by Louis Parks May 25, 2015
written by Louis Parks

The Maybach is back. This troubled brand has finally been relaunched, as a supersized S-Class with a V12 providing the grunt. It’s true that it has been a few years since the Maybach brand, which used to be owned by Daimler, slowly slid below the water as the result of patchy sales and stiff competition from the likes of Rolls-Royce and Bentley. But now, under the Mercedes umbrella, it appears ready to re-enter the race.

A long wheel base S-Class, the Maybach boasts a sizeable list of options, but before we get to the interior, let’s judge the book by its cover. At first glance, there’s little difference between the Maybach S600 and her S-Class siblings. The shape is quintessentially Mercedes, yet there are subtle distinctions. For one, the grille has been redesigned slightly to give it a more classic look, the rear doors are lengthier to ease access and the S600, despite being the longest vehicle in the fleet, appears balanced and proportioned. A beautiful machine, there’s nothing bulky about it — see it at a distance, and you’d be hard pressed to identify it and surprised when you finally do.

But who are we kidding, this car shines through its passenger experience, so here we go. As a car designed for the driven, rather than the driver, the addition of sound dampening technology to the monstrous V12, as well as improved door seals and cushioned tires means that the S600 is an effortlessly smooth, quiet ride, deceptively so when you consider the block of rumbling metal that lies under the hood.

In the aptly named First Class Cabin, the rear area of the Maybach, you’ll find a small freezer, large enough for several bottles of champagne, a hidden recess with champagne flute holders, fold-away airplane style tables and another glass holder that, get this, can either chill or heat your glasses — this is an area that’s designed with comfort in mind. The seats have ludicrously soft headrests and some of the most comfortable padding I’ve ever sat on. Oh, and they’ll massage you too. Of course, you’ve also got your independent AC, reading lights, two screens linked to a DVD player and curtains for the windows.

Maybach-Inside Front

So where does this leave us? Between Bentley, Rolls-Royce and the Maybach, lovers of large luxury cars are spoiled for choice. Above all, the Maybach leaves a sense of attention to detail that only Mercedes can get right. Sitting somewhere between the Flying Spur and the Ghost, the Maybach is quite clearly a spectacular machine. The fixtures might not be quite as refined as a Rolls, and it might not have the all round good looks of a Flying Spur, but it’s certainly one hell of a car. Welcome back, old friend.

May 25, 2015 0 comments
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Culinary ArtRestaurants

Getting to know Liza

by Nadine Khalil May 24, 2015
written by Nadine Khalil

It might seem ironic that when a new Lebanese restaurant, Liza, opened in Beirut, I first heard about it not from local friends or colleagues, but rather, a Berlin based artist (who coincidentally, is married to a Lebanese), when she raved about the design of the place.

Set on the top floor of a refurbished, 500 square meter 19th century villa (above the Metropolitan Art Society), Liza’s design transformed what could have simply been a grand, ornate space into something with an ultra contemporary flair, though no less impressive. Floor-to-ceiling arched windows serve as partitions and passageways in the lofty, light flooded interior; the custom made wallpaper patterns are like stunning modernist frescoes — large banana leaves in one room, an interpretation of Beirut cityscapes in another, and blown up ancient Lebanese lira notes in a third. Hanging from the ceiling, you will find everything from three dimensional gold stars to a flying elephant.

“You know, it’s crazy but our biggest budget was for the lighting,” Liza Asseily tells me, laughing. She is the co-owner of her namesake restaurant in Paris (which opened in 2005), along with her husband, and now, the new Liza in Beirut, which opened a year and a half ago. “We’ve even got some Tom Dixon here and the star shaped lights are Hubert Fattal,” she says as we drink mastic-infused lemonade, one of Liza’s concoctions.

Liza-Resto-Dining
If all this seems to be too much visual stimulus, it isn’t. The decorative details are balanced by the restaurant’s expansiveness, and by the serene, more neutral palette of light grey-white marble tables with warm brown leather chairs. Fattal designed the interior of the Liza in Paris, but for this restaurant, the Asseilys were looking for something a bit different, an unknown. And sure enough, they chose someone who came from another field altogether; this was her first design project. “Maria Ousseimi is a friend, I was impressed with what she did with her own house … And when she took a look at the space, she felt this was something she wanted to do.”

Asseily also strikes you as someone who follows her gut. A bouncy, petite brunette with a lot of energy, she explains why she decided to get into the restaurant business with her husband in the first place. “We didn’t really have the experience. Ziad is in finance and I had studied hospitality in Lausanne. My family has been living between Beirut and Paris since the war and we were thinking, why do all the Lebanese restaurants have the same feel? Even if the food is fantastic and you get that wonderful plate of tabbouleh, there’s Fairuz for music and the man who serves you wears a typical moustache. Why do we have to show this image of our country? We have great artisans and so many young talents. So we decided, me and Ziad, that we wanted to show our Lebanon, our food and traditions, in a modern way.”

Maria-Ousseimi
When it came to picking the location of their first Liza 10 years ago, the way they positioned the restaurant was a crucial factor for them to consider. “We didn’t want it to be next to the usual 8th arrondissement or the 16th and the Champs-Élysées, but on the second, next to the Palais-Royal. At the time, no one else was there, so we were pioneers in a way.” Asseily basically went with the first place she saw (she had a feeling about it), a fabulous 1920s building, relatively inexpensive, which now also has an adjoining Liza bakery. In 2011, they were asked to set up a temporary, pop up space in Galeries Lafayette, which became so successful that six months ago, it was made into a permanent one.

Yet the main arm of the business is actually catering (Liza Chez Vous) and they work for high end fashion brands, such as Lanvin, Kenzo and Chanel, among others. Despite their popularity in Paris for the past decade, Asseily confesses, “We always wanted to bring Liza home and in the back of Ziad’s head, he wanted to do it in this fantastic old Lebanese house.” Once again, they were lucky with their new address when Chafic el Khazen — the CEO of Sky Management — who became their partner for the Beirut venture, discovered this palatial mansion in Ashrafieh, originally owned by the first governor (of what was Greater Lebanon at the time) and then by the Bustros family.

LIZA-Corridor

Bringing Liza home was not without its challenges however. The Lebanese community, as compared to the French, isn’t as easily satisfied when it comes to their national food. “In France, we could have more liberty since many people don’t really know Lebanese food, if they aren’t originally from here. Even though my husband loves to cook and we designed our menu with a Lebanese consultant who trained the French chef, we wanted to look at how Lebanese eat today. So it was a risky approach from the very beginning.” Risky, because Liza takes an unusual, creative spin on culinary heritage.

“For example, I would have people coming up to me here, saying, you have no right to call this hummus when it has cumin in it and not tahineh!” (Interestingly though, the criticism must have had some impact because Liza names this particular dish as hummus balila and not just hummus, since it is primarily chickpea based and without the usual sesame paste). Liza’s innovative take on Lebanese cuisine extends to meals like daoud bacha, which is served with bulgur wheat instead of rice. And the overall presentation may not be generous in quantity (it’s presented in smaller amounts than what is customary in our part of the world) but the food is ‘generous’ in its wide ranging tastes, and the combination of different palates offered.

TableWhether it’s the daoud bacha, which has meatballs with a tinge of pomegranate set against smoky, fried onions, or oven baked cauliflower salad doused in sesame paste, the flavors all seem to have a tang from something added that diverges from the norm, like an unusual spice or an ingredient that doesn’t normally come with a particular dish. But this is not to say you won’t find the usual suspects. The fattit batinjein for example, an eggplant dish with yogurt, pine nuts and fried bread was crispy, saucy and cooked to perfection. They are also well known for their lamb shank with spiced rice and dried fruits (kharouf bi khams bharrat). As for mezze, Liza does it distinctively, in the form of a lunch tray option, beautifully designed by Karen Chekerdjian with concentric circles for the small portions. You have different choices, among them a vegetarian one that’s both gluten and lactose free — which Asseily says is part of how they want to cater to the modern lifestyle, by offering food that is wholesome and light.

Mezze-plate

You can see this clearly with their desserts too. Though I’m not at all a fan of Arabic sweets, Liza’s weren’t heavy with syrup and clotted cream (ashta). Their milk custard (haytalieh) with orange blossom and homemade blueberry coulis, or Ghandour biscuits with rose ice cream or their halvah ice cream with carob molasses and pistachio, were inventive — sweet, but not over the top.
If we were to play devil’s advocate here, we would ask whether ‘authentic’ Lebanese food can really be made contemporary when we don’t have the equivalent of haute cuisine (and the experimentations that come with it) and if it doesn’t follow then that when you mix two different genres together, you are bound to fall short on one. Liza definitely pushes the boundaries, yet without subscribing either completely to the traditional, nor completely to the modern, you have something in between. Still, as their approach to food demonstrates, this doesn’t mean you completely lose the essence.

Photographs By: Marco Pinarelli

May 24, 2015 0 comments
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Uncrossing wires

by Roudi Baroudi May 21, 2015
written by Roudi Baroudi

Lebanon’s electricity sector faces severe difficulties on multiple levels, making it an unsustainable burden on the economy in general and the state budget in particular. Problems extend across all stages of the business process, from production to distribution, even billing and collection, despite the latter having been franchised out to private companies.

Promising proposals — including some very comprehensive ones — to address these issues have been drawn up by and for successive ministers of energy and water, including the latest policy plan approved by the Council of Ministers in June 2010.

[pullquote]These plans can work, but only when the required political decisions are taken to revive this vital sector[/pullquote]

These plans can work, but only when the required political decisions are taken to revive this vital sector by insulating it against personal and private interests, be they direct or indirect. Only in this way can we honor both the spirit and the letter of legislation already passed by Parliament by getting on with the implementation stage.

Several matters require urgent attention, including financial and administrative difficulties that have held up construction of a planned 435-MW generating station at Deir Ammar and a similar facility at Zahrani, the combined output of which would provide the country with at least a bare minimum of its power needs. Specifically, the Council for Reconstruction and Development should be tasked with securing the necessary funds from supporting institutions so that implementation can start immediately.

The politics of electricity

The national interest demands that this be done as quickly and as cleanly as possible, because the last thing Lebanon needs is a dispute with a contractor that leads to court proceedings and/or arbitration that could take years to unfold. It is clear that franchising measures adopted by the Ministry of Energy and Water are tainted with a lot of gaps.

Easing Lebanon’s chronic power shortages also calls for urgent action to expedite the delivery and installation of new generating units at the Jiyyeh and Zouk plants. Timing is everything in such cases, because every day of delay increases the financial drain and other burdens on all consumers, from households and schools to companies and government offices. This directly undermines the productivity and competitiveness of the national economy, restricting GDP growth and soaking up resources.

Even more importantly, preventing future crises and enabling long overdue reforms demands that oversight be exercised by a duly constituted Electricity Regulatory Authority. Such a body has been created by legislation but successive governments have failed to appoint its five member leadership commission, as called for under Law No. 462 of 2002, preventing the authority from exercising its powers. There is an urgent need to appoint the Electricity Regulatory Authority, as more than 14 years have passed since the issuance of the law calling for its formation, without any legal or legitimate reason being provided for this delay.

The failure to fully implement Law 462 has prompted the legislature to pass Law 288, which alters Article 7 of Law 462 by adding the following paragraph: “Temporarily, for a period of two years, and until the appointment of members of the Authority and giving them their tasks, the production permissions and licenses will be granted by a decision of the Council of Ministers upon a proposal of the Ministers of Energy and Water, and Finance.”

The establishment and empowerment of structures similar to the Electricity Regulatory Authority has been crucial to developing and implementing advanced energy and consumer-protection strategies in jurisdictions around the world — including Europe and our own Euro-Med region — so it remains a mystery why some parties insist on denying this proven setup to Lebanon and the Lebanese.

And as though all that were not sufficient to bring development of the sector to a standstill, a new board of directors has not been assigned for Électricité du Liban (EDL), the country’s state owned power company, since 2005. This has sharply curtailed or even eliminated follow up on the completion of major projects designed to help meet minimum requirements, and committed Lebanon to huge amounts of money.

Then there is the matter of the fuel required for the generating stations at Zahrani and Deir Ammar. Based on the advice of Électricité de France (EDF) and under the terms of the national energy strategy developed in 1992–1993, both facilities were designed and built to operate primarily on natural gas rather than diesel oil. This would impart several benefits, including lower production costs, less environmental impact and longer service lives for generating units.

Once again, however, political bickering and clashes of personality have prevented full implementation of the plan, in this case by failing to secure the necessary gas supplies. As a result, both plants have been run almost exclusively on oil derivatives, obviating some of their design advantages and burdening the treasury with massive bills for fuel that is dearer, dirtier and less efficient.   

An agreement was signed in 2009 to finally link Deir Ammar with the Arab Gas Pipeline, built to carry Egyptian gas to customers in Israel, Jordan, Lebanon and Syria, but the deal was never fully implemented. And in light of mounting instability in the region since 2011, it is highly unlikely that Lebanon will see any benefit from this for the foreseeable future: Egypt has been unable to meet its existing supply obligations for the past three years, and badly needed repairs and maintenance cannot be carried out on Syrian sections of the pipeline through which any Lebanese imports would have to traverse.

Regasification, regulation

Since operation of the electricity plants in Zaharani and Bedawi that relied on natural gas has become impossible without the presence of gas pipelines, and the natural gas liquefaction near the production facilities has become indispensable and irreplaceable, it is imperative for the Lebanese state to start buying, renting or establishing a floating station(s) for liquified natural gas storage, and for its regasification — necessary for the two power plants in Zahrani and Deir Ammar. A floating storage regasification unit (FSRU) would need to be established in each, even if that required the expansion of the port, or the establishment of breakwaters to protect the station from marine factors.

The procurement of the two FSRU stations would allow enormous savings on the price of fuel, significantly reducing the need for public financial support for EDL. It also would substantially reduce the utility’s debt ratio; a crucial requirement because the potential impact of government and EDL measures to improve bill collection remains limited. This would lead to the reduction of financial transfers to the EDL mitigating the debt to GDP ratio, particularly since the capability of the government and EDL to collect bills and prevent electricity theft or attacks to the grid remains limited, reducing the ability to rein in the deficit.

[pullquote]It is advisable that oversight be exercised jointly by the Parliament and the Council of Ministers[/pullquote]

Initially at least, both floating stations should be rented or leased, provided that the awarded contractor or promoter has both the requisite international experience and a demonstrated ability to supply the natural gas in addition to the stations simultaneously. This would translate into substantial cost savings for the control and supervision of the facilities. Any such agreement also should follow the “key in hand” method, which would leave the financing of construction to the contractor, reducing the risk to the state and allowing it to start paying only when it has taken delivery of fully operational facilities. And since we know in advance the amount of fuel required by the power plants, the contract should stipulate the dates, quantities and costs of gas deliveries. This formula has been tried and tested in several jurisdictions, including Dubai, Jordan and Kuwait, and there is no reason why it would not work in Lebanon.

Until steps are taken to regularize the electricity sector by implementing existing legislation, and until the almost year long vacancy in Lebanon’s presidency is filled, it is advisable that oversight be exercised jointly by the Parliament and the Council of Ministers.

No individual, though, no matter how influential, can make this happen without securing the trust and cooperation of others. Some features of the Lebanese political landscape are difficult to agree on, but this one is not. National pride, political responsibility and basic common sense dictate that we act quickly to end the mismanagement of this problem. Only then can we start eliminating all forms of waste, alleviating the losses of the state and meeting the needs of power hungry homes and businesses.

May 21, 2015 0 comments
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Business

Familiar faces

by Nabila Rahhal & Greg Demarque May 20, 2015
written by Nabila Rahhal & Greg Demarque

A street is more than just well known physical landmarks. It is more than buildings and favorite outlets. A street is also made up of familiar faces: people you say hello to or nod to on a daily basis. Such faces become part of the urban fabric and in turn, they come to know the street in a different way than analysts or academics do.

Executive sat down with a selection of these familiar faces to learn more about their stories and what they see as Hamra Street’s best moments.

 

Abou Farouk

Hamra-face-1

Profession: owner of a coffee stand on Wardieh Street, Hamra
Years in Hamra: 50
Abou Farouk recounts how as young men in the 1970s, he and his friends could not afford the prices of Hamra Street’s sidewalk cafes, yet they enjoyed just walking on the bustling streets, taking in the diverse crowds and enjoying the lights. “Hamra was a street that never slept, it was always busy!”

 

Hind Khoury

Hamra-face-2

Profession: operator and chef of Ramona pastry shop on Sidani Street
Years in Hamra: 50
Khoury talks with pride about how the most elegant and refined people on Hamra Street would buy her croissants, cakes and desserts, which were still relatively new to the area. “I feel sad for what Hamra is today. It used to be such a chic street with the best cinemas and cafes,” she says.

 

George Mujaeiss

Hamra-face-3
Profession: owner of Malek El Batata
Years in Hamra: 46
Mujaeiss is most proud to have called Rafik Hariri a customer of his.  “After [Hariri] was featured in a newspaper photo eating at my venue, customers would pour in asking to be photographed in the same spot,” he recounts.

 

Henry Loussian

Hamra-face-4
Profession: jewelry designer and owner of Henry’s Handmade
Years in Hamra: 18
Loussian laments the changes in Hamra over the past 10 years, saying that it has become much more commercial with chain restaurants, argeeleh cafes and bars replacing the “cultural aspect of Hamra” such as bookshops, theater life and more authentic coffee shops.

 

Missak Kayaian

Hamra-face-5
Profession: key cutter
Years in Hamra: 40
Kayaian recalls how, in the 1960s, he and his friends used to dress up elegantly in a neck or bow tie to visit the cinemas on Hamra Street, where they used to pay half a lira to watch the show. He also remembers how they would go ice skating in the basement of the Commodore Hotel, which had the first ice skating rink in Hamra.

 

Haidar Makki

Hamra-face-6

Profession: tailor and retailer
Years in Hamra: 35
Makki laments the changes in architecture in Hamra Street, recalling how it was full of trees, well designed buildings and villas that were four stories high at most. “Today it is full of empty towers,” he says.

 

Mahmoud Abu El Hasan

Hamra-face-7

Profession: owner of a newspaper stand facing Costa Coffee
Years in Hamra: 25
Hasan recounts how Arab film stars frequented Hamra Street for its nightlife and how one time, Adel Emam, one of Egypt’s most famous actors, bought a newspaper from his stand. “My customers today are all above 60 years old. The young generation does not know the pleasure of reading a newspaper, they prefer their gadgets,” he says.

 

Correction: An earlier version of this article erroneously identified Haidar Makki as Hassan Makki. Apologies.

May 20, 2015 2 comments
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Surviving a slow market

by Karim Makarem May 19, 2015
written by Karim Makarem

Without a radical improvement in the political and security climates, Lebanon’s real estate market is unlikely to pick up. The market thus continues to stagnate as the economic, political and security situations continue to deteriorate. The picture may look gloomy, but it is not desperate. Demand may have slowed but it exists, with professional developers still launching new projects and prospecting for new plots of land. The rental market, meanwhile, is still active, particularly during the summer months just before schools resume.

Stringent market conditions, however, do have repercussions for market players on both the supply and demand sides of the equation. Surviving a slow market requires tight maneuvering and a keen understanding of market dynamics, in particular what buyers are looking for. What apartment size do they want? Do they want a maid’s room? Do they want a family/TV room? Do they want two or three bedrooms? What budgets do they have available?

[pullquote]Developing new projects in the current climate is risky[/pullquote]

Development mistakes

Developing new projects in the current climate is risky. In difficult markets, no mistakes are allowed, whether in terms of budgeting, development or marketing. Developers must offer apartments of the right sizes, with the right layouts and amenities to remain within buyers’ available budgets, and, as always, in the appropriate location.

Developers must understand that maximizing the use of internal spaces is crucial, as is minimizing common and service areas — such as staircases, hallways and lobbies, elevator and service shafts — because buyers pay the same price for these as they do for internal carpet areas. Under current market conditions, for instance, buyers refuse to buy an apartment in which common areas account for more than 20 percent of the internal sellable area. Buildings with such a “loss” of space find it difficult to convince buyers to pay the same price for areas from which they do not benefit directly. Developers must also decide on which amenities to include in the project to keep common charges reasonable — pools, gardens, gyms and playground spaces have a maintenance cost that may become too burdensome on future tenants.

Projects are typically delivered at least three to four years from the date developers acquire the land and start work on architectural drawings. Developers must therefore cater to existing market conditions — through pre-sales and sales made at the launching of the project — but also have an understanding of market trends to address the needs of future demand, which involves those buying at a later stage in the construction process or at completion. Current trends go in favor of smaller apartments costing between $500,000 and $1 million. However, buyers want layouts that maximize the usage of space — fitting in a maid’s room or offering en suite bedrooms in an apartment as small as 125 square meters.

Lucrative investments

A stagnant market is an ideal playground for investors. Prices are at or very near their lowest values and are stable, giving prospective buyers solid bargaining clout. The main consideration for potential buyers is to acquire property at its fair market value. The property must also have income generation potential.

Land is traditionally a sure long term investment. If acquired at the right price, land in neighborhoods in Beirut that are in high demand can be sold at a profit in a relatively short period of time. However, profit margins have shrunk recently, as land prices have also stabilized. In the boom years between 2005 and 2008, land prices were skyrocketing, in tandem with a growth in demand for finished apartments. Today, the evolution in land prices follows a slower curve that reflects a stagnating market.

Investors have a range of property choices that will be easy to place on the rental market as income generating investments, such as small apartments in neighborhoods in high demand, including Mar Mikhael, Sassine in Ashrafieh and Hamra.

[pullquote]There are thousands of good quality properties on the market and competition is tough[/pullquote]

Proper presentation

There are thousands of good quality properties (apartments, offices and shops) on the market and competition is tough. To increase the chances of finding a buyer or tenant for their properties, owners must differentiate their property from the rest of the market.

Most importantly, the property must be listed at its fair market value. The value of apartments and offices must be competitive vis-à-vis the rest of the market, while the value of shops must be in line with the potential returns that the unit can generate for its future operator.

Properties must also be well presented to attract the attention of prospective buyers: it must be clean and tidy to give a positive first impression.

Happy buyers

Stressed markets are a plus for potential buyers. Prices are standing still, giving buyers plenty of time to look around, compare products and prices, and bargain mercilessly. They should be careful not to hesitate too long, however, as the smallest improvement in the political situation of the country may bring about another bout of price increases.

May 19, 2015 1 comment
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Banking 2015Comment

2014: Deep analysis

by Dany Baz May 18, 2015
written by Dany Baz

Any analysis of Lebanese banking performance in terms of activity has to be read in conjunction with the operating environment in the region and the recent expansion of Lebanese banks in regional markets. Real GDP growth, as estimated by the IMF, stood at 2.4 percent for the MENA region in 2014, while Lebanon registered 2.0 percent with an outlook of 2.5 percent for 2015.

At the banking level, preliminary domestic figures for the MENA region have reported an acceptable 8 percent annual growth in major aggregates in 2014. Lebanon compares well, particularly with regard to the performance of oil producing countries — albeit with growth below the Arab MENA average. Lebanon’s banking sector ranks sixth by assets, fifth by deposits — an achievement considering its low public sector deposits compared to other countries — and seventh by loans among 15 surveyed countries of the Arab MENA region.

In Lebanon, amidst continuing regional tensions and lingering domestic uncertainties, the banking sector has registered positive growth, more or less in line with previous years. For the purpose of this study, we will analyze the performance of the ‘alpha group’ of 14 banks with deposits exceeding $2 billion, which represent about 87 percent of the sector.

Screen shot 2015-05-18 at 11.17.36 AM

Growth in assets and deposits

Total assets of alpha banks grew by 10.4 percent in 2014, moving from $176.3 billion at the end of December 2013 to $194.6 billion at the end of December 2014. Activity growth was driven by both domestic and foreign activity, though the latter proved to be more vigorous over the past year. Domestically, assets of alpha banks witnessed an 8.8 percent growth in 2014, while their foreign activity grew by 16.9 percent over the year.

Customer deposits remain the main driver of activity growth. They accounted for 82.7 percent of total activity and grew by 9.4 percent in 2014. In particular, foreign deposits grew considerably, increasing by 22.4 percent between December 2013 and December 2014, while domestic deposits grew by 6.8 percent over the same period. Out of the latter, Lebanese lira (LBP) deposits grew by 7.6 percent and foreign exchange (FX) deposits grew by 6.4 percent, slightly shrinking deposit dollarization of domestic activity. Similarly, LBP loans grew by 14.1 percent while FX loans rose by 5.5 percent, contracting domestic loan dollarization to its lowest level in decades. Foreign entities engaged in significant lending, which reported a growth of 21.9 percent in 2014, in line with foreign activity growth at large. The past years actually saw active lending activity on behalf of alpha banks with the loan portfolio reporting an $18 billion increase since 2011, half of it domestic, of which around 62 percent was in foreign currencies.

It is also worth mentioning that the share of foreign entities of alpha banks has noticeably increased over the past few years, reporting a rise in foreign entities assets to total assets from 18.2 percent in 2010 to 20.3 percent in 2014, while that of foreign entities deposits to total deposits increased from 15.8 percent to 18.7 percent and that of foreign entities loans to total loans surged from 24.9 percent to 31.7 percent.

Screen shot 2015-05-18 at 11.17.14 AM

Liquidity, asset quality and capitalization

Alpha banks remain highly liquid by all standards. Net primary liquidity as a percentage of total deposits increased to 33.01 percent in 2014, further broken down into 18.95 percent in LBP and 38.85 percent in foreign currencies. The mirror image of banks’ liquidity is the loans to deposits ratio which also increased in 2014 to report 37.51 percent overall, 22.43 percent in LBP and 43.77 percent in foreign currencies.

The growth in lending activity over the past years, partly supported by significant stimulus packages from Banque du Liban, Lebanon’s central bank, has not been to the detriment of asset quality despite adverse operating conditions both domestically and in many regional markets. Within the context of a lower growth in gross doubtful loans (7.6 percent) than that of total gross loans (11.4 percent), the ratio of gross doubtful loans as a percentage of total gross loans shrank from 5.94 percent in December 2013 to 5.73 percent in December 2014. When adding substandard loans, the ratio drops from 6.75 percent to 6.43 percent over the same period. Furthermore, with loan loss reserves equivalent to 76 percent of doubtful loans, the ratio of net doubtful loans to gross loans stabilized at 1.38 percent over the past year, while its ratio relative to equity registered 5.13 percent at the end of December 2014. It is worth noting here that alpha banks have substantially increased their collective provisions over the past three years, raising them by almost $200 million to reach $637 million in December 2014.

2014 witnessed significant growth in capitalization as well. Alpha banks’ shareholders’ equity grew by 12.3 percent, moving from $15.3 billion at the end of December 2013 to $17.2 billion one year later. As such, the equity to assets ratio rose from 8.67 percent in December 2013 to 8.82 percent in December 2014.

Screen shot 2015-05-18 at 11.17.50 AM

Profitability

After a relative standstill — and within a tough operating environment characterized by sluggish domestic economic conditions with their ensuing pressures on fee income generation, coupled with a low interest rate context that kept pressure on interest margins and spreads — the profitability of alpha banks reported a 9.1 percent growth in 2014 (2.1 percent for domestic net profits), reaching $1.9 billion, of which 83 percent was domestic. The profit generation came within the context of a 12.2 percent growth in net interest income and a 13.7 percent increase in net fee and commission income, leading to a 10.3 percent growth in total operating income. Coupled with a rise of 9.9 percent in operating expenses, it resulted in a 10.7 percent growth in operating profit.

With respect to the growth in net fee and commission income that evidences improved immunity against tightening margins and spreads in a low interest rate environment, off balance sheet activity has witnessed a contraction of 2.1 percent in total openings of letters of credit in 2014, while fiduciary accounts and assets under management have increased by 14.2 percent, reaching $24.2 billion at year end 2014. Furthermore, we note that the ratio of non-interest income to total income has again regressed to 33.1 percent in 2014, while the ratio of net fee and commission income to non-interest income has further increased to 49.1 percent.

As for the increase in operating expenses, alpha banks have been active on the network expansion front, opening 67 new branches in 2014, half of them domestically. Furthermore, they recruited an additional 1,654 employees, 60 percent of which are in Lebanon. Nevertheless, the measure of cost efficiency represented by the ratio of operating expenses to total assets was stabilized by alpha banks at 1.44 percent over the past 3 years, while cost to income was maintained at circa 50 percent in 2014.

The various components of return ratios show that despite continuous pressures on interest margins and spreads — and after the downward slide witnessed in 2013 — alpha banks stabilized their interest margin at 2.0 percent and their spread at 1.92 percent in 2014. The stagnation in asset utilization (2.87 percent) and net operating margin (35.19 percent) drove a slight contraction in return ratios with return on average assets hovering at 1.01 percent and return on average equity tightening to 11.55 percent (12.90 percent for the return on average common equity).

The return ratios of alpha banks detailed above are almost equal to the latest ratios reported for the sector and a comparative global analysis shows that both return on average assets and return on average equity of Lebanese banks are underperforming relative to global benchmarks.

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May 18, 2015 0 comments
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Fashion retailing in Hamra

by Laurence Leigh May 18, 2015
written by Laurence Leigh

The plethora of signs advertising ‘up to 70%’ discounts illustrates the sorry state of most clothing stores in Hamra. Gone are the rich tourists from the Gulf, Saudi Arabia and Egypt with a desire to stock up on the latest fashions in the area’s crowded streets and alleyways. With the number of foreign visitors very low and well to do Lebanese worried more than ever about the country’s political instability, conflicts in the region and their own uncertain future prospects, high spending customers have all but disappeared. As the owner of one independent men’s outfitter, which opened before the Civil War, said, “Since the January clashes between Hezbollah and Israel, business is the worst I have ever seen.” In different circumstances, the decline in the value of the euro and the recent removal of import tariffs on clothes sourced in the EU might have helped. In the current situation, however, these factors have made little difference. It is perhaps only the benefit that many independent retailers receive from having rent controls on their stores or from having purchased their space outright when real estate prices were much lower than now that keeps them from going out of business altogether.

‘Fast fashion’ stores, such as Vero Moda and Jack and Jones, have not escaped the downturn either, even if their well known store brands have helped them compete successfully against the independent vendors who buy clothing with labels that are generally lesser known. Tight inventory control through using sophisticated supply chain management has also enabled them to avoid frequent discounting. Keeping up with the latest fashion trends also helps. Floral prints and an eclectic look inspired by the iconic Memphis furniture designs from Italy are also on show. Denim that has been carefully distressed and artfully decorated with tears and worn out patches to achieve the latest punk look is on display everywhere. Indeed, it seems that now no young woman, or young man for that matter, is to be seen wearing any jeans that look — perish the thought — new!

Catering local

Like the best of the independent retailers, clothing chains are also trying to keep customers coming back, through excellent customer service and responsiveness to their individual tastes. Nevertheless, the performance of the big groups’ Hamra stores is generally poor compared to their outlets elsewhere in Beirut. Whereas six years ago these shops had sales which were among the best in Lebanon, it is likely that groups with multiple outlets in the area will close some stores to consolidate their business. As one branch manager explained, limited and expensive parking along with general traffic congestion — made even worse by continuing construction work, including the massive expansion of AUB Medical Center — have caused many customers in cars to shun the area. Many of these people now prefer going to malls with ample parking such as Beirut Souks, ABC Mall in Ashrafieh, City Mall and Beirut City Center which, despite its name, is located in Hazmieh. The opening of the ABC Verdun shopping mall, which is currently under construction, will only exacerbate the retreat of motorized shoppers from the area.

As a result, activity in Hamra increasingly revolves around the local student population from LAU and AUB, which has fueled its active bar and restaurant scene. Catering to this group has also fostered a small but growing creative atmosphere with small atelier outlets springing up which offer unusual funky clothing and accessory designs aimed at their young customers. However, while these stores cater to an interesting niche market for original ‘boho chic’ and even pure kitsch, their contribution to the overall performance of fashion retail in the area is currently relatively small. Expensive, luxury lines in accessories such as jewelry and handbags, as well as iconic clothing labels such as Armani, Dior and Celine, are only to be found downtown, where the up-market Aishti department store is also located.

Looking forward, there is little sign that much change will take place in current trends. Even if lots of wealthy tourists from the Middle East and elsewhere return to Beirut, the concentration of designer boutiques and high priced jewelry stores in downtown shopping areas closer to luxury hotels, such as the Four Seasons and Phoenicia, is likely to continue. By contrast, Hamra is likely to be the playground of less well heeled students and young people cruising its bars and eateries. Successful retailers will only survive by offering affordable styles that will appeal to their different and fast changing tastes in what is going to be a more diverse, creative and interesting market place. Indeed, the thought that Hamra is set to become the ‘rive gauche’ of Beirut is not entirely fanciful.

May 18, 2015 0 comments
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Leaders

The Hamra model

by Executive Editors May 15, 2015
written by Executive Editors

The honking car horns, the heavy traffic, the sidewalks bustling with pedestrians, the wide variety of tightly packed shops and eateries, the mix of accents and languages which can be heard around you … No, this is not some dynamic foreign metropolis. It is Beirut’s Hamra, and many other areas in Lebanon have a thing or two to learn from its inclusive urban approach.

Historically, and specifically in the 1950s and 1960s, Hamra was a haven for persecuted intellectuals from throughout the region who found a welcoming environment in its cafes and its residents. This is due in part to the presence of the American University of Beirut, but perhaps more importantly to the fact that Christians and Muslims have coexisted for generations as landowners and residents in the neighborhood (see “Something for everyone“).

Today, Hamra continues to welcome non Lebanese and is one of the few neighborhoods in Beirut where you are likely to hear the Syrian and Iraqi dialects of Arabic almost as much as you hear the Lebanese one. Migrant workers from the Philippines also frequent Hamra on Sundays, after attending services at Saint Francis Church.

In a similar manner to cosmopolitan areas like New York or Rome, these communities have established their own businesses in Hamra such as the Iraqi or Syrian restaurants in the side street facing Barbar or the Filipino mini market and eatery near Saint Francis Church. Syrian and Iraqi artists have also found in Hamra a place to sell their artwork.

[pullquote]Hamra has shown what can happen to an area when its residents stop fearing ‘foreigners’[/pullquote]

These communities have also energized the venues on Hamra, with many restaurants citing high volume and retail outlets saying that it is the Iraqis — and the Syrians to a lesser degree — which have kept their businesses afloat (see “Shopping in Hamra“) at a time of dwindling purchasing power among Lebanese locals. By doing what it has done naturally for years — welcoming all nationalities — Hamra has managed to become one of perhaps two truly bustling, economically active areas of the city (the other being Dora–Burj Hammoud).

Of course, this comes with its own set of challenges. Hamra has had to deal with an increase in street beggars, which caused many locals to stay away. In addition, and similar to other areas of Beirut, Hamra has also had to deal with the issues of high traffic congestion, overall neglect of its infrastructure and generally less footfall from tourists compared to boom years such as 2010.

Yet Hamra has not taken these frustrations out on the non Lebanese in its community. Instead, it has given them the opportunity to create and contribute to its economic life for the general betterment of the neighborhood. Hamra, with its raw energy, grittiness and liveliness, has shown what can happen to an area when its residents stop fearing ‘foreigners’ and simply allow them to be. Others could learn from their model.

May 15, 2015 0 comments
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Business

Shopping in Hamra

by Nabila Rahhal May 14, 2015
written by Nabila Rahhal

“Hamra Street is the closest street to what the Burj area (what is now referred to as downtown Beirut) was back in the 1950s, meaning it is working class to a certain extent, has a bit of everything and is a place where people of all income levels mix together,” says Saadi Hamady, owner of Poly Project Inc. which operates Bricks on Makdessi Street, describing Hamra Street in an earlier interview with Executive.

Hamady’s statement can be quantified through a casual walk down Hamra’s main street where approximately 130 commercial shops, excluding food and beverage (F&B) outlets, are packed side by side. In total, there are about 800 retail outlets on Hamra Street and its immediate vicinity, according to last year’s count by the Hamra Traders Association, in which they included everything from travel agents to money exchange shops, F&B outlets aside.

In these outlets one can find everything from lingerie to abayas, Italian leather shoes and bags to knock off designer items, and from international mid market fashion brands aimed at teens and young adults to locally designed clothes catering to older women. Beyond the realm of fashion, Hamra retailers also boast items related to culture, such as books, paintings and artisanal products.

Executive took to the streets of Hamra to find out whether these varied retail venues have achieved any substantial sales for their owners.

Hamra’s early days

While Beirut’s downtown area was historically the commercial heart of the city, Hamra Street began its own commercial growth in the early 1960s when real estate development gained momentum in the area. What was previously a calm street with a few villas and land used for agriculture (it is said that Hamra, Arabic for red, got its name from its distinctive red soil) was becoming a cosmopolitan destination with theaters, sidewalk cafes, a few retail stores and modern residential buildings of the time.

Many of the retailers on Hamra Street say they originally had their outlets in downtown but moved here after the destruction of Beirut’s downtown area with the eruption of the Civil War, when the various militias took over the area, ransacking and burning the businesses there (downtown was directly adjacent to what became known as the Green Line, separating East and West Beirut during the years of the war). “When our outlet in Burj burnt down, we looked for an area to relocate to and decided that Hamra, which was at its peak in 1975, was the best choice,” says Mohammed Nsouli, owner of Veni Vici, a women’s apparel store towards the western end of Hamra Street.

[pullquote]“We used to sell more in 1975, and for comparatively better prices than we do now”[/pullquote]

Despite the onset of the Civil War, retailers interviewed for this article insist that business in Hamra in the 1970s was very strong. “We used to sell more in 1975, and for comparatively better prices than we do now,” says Zouhair Itani, head of the Hamra Traders Association and owner of Dallas Stores off Hamra Street which sells mainly international brand jeans, giving the example of how he used to sell imported jeans for LBP 60 when the average monthly salary was about LBP 1,000 at the time.

After the war

The intensification of the Civil War took its toll on Lebanese retailers, but with its conclusion in the early 1990s, Hamra slowly began to regain its shopping clientele. Traders interviewed for this article generally agree that the mid 1990s and most of the 2000s were good years for them in terms of sales and footfall in Hamra, especially after the rehabilitation of the main street in 2004 when the sidewalks were widened for easier pedestrian access and the asphalt on the street was replaced with the more attractive cobblestones.

“There was a lot of dynamism and work in the country, specifically in our [retail] sector during that period,” says Ghassan Tabbara, owner of Baby Doll, an apparel store targeted at young women on Hamra Street. He explains that there were a lot of tourists in Hamra during those years and they came to rely on them as their main clients.

In fact Khalil Mardini, owner of Flora, a lingerie store facing Costa Café, says he transformed the snack shop which his family had operated on Hamra Street since 1976 to its current positioning as a retail store in 2005 because “the food business was declining in Hamra back then and it was becoming more known as a commercial area with some coffee shops,” he recalls.

The present scenario

Today, Hamra, in addition to its other functions, is a shopping area for mainly the low to mid income bracket, with many prices starting from $5 for a t-shirt to $200 for a two piece suit depending on the store, according to the retailers interviewed for this article.

Similar to other retailers catering to the mid income market, Hamra’s traders are complaining of the dwindling purchasing power among their Lebanese customers which has affected their business, especially in the last five years. “Today, retail business in Hamra is slow despite the constant pedestrian activity we see on the street. The Lebanese have a weak purchasing power as the average income is low compared to market prices,” says Itani.

[pullquote]“The market is getting worse every year”[/pullquote]

Replacing gulf money

A parallel reason Hamra’s traders give for generally decreasing sales is the dropping number of tourists from the Gulf. “The market is getting worse every year due to the regional turmoil, which is preventing tourists from the Gulf from visiting Lebanon as much as before. We used to rely on them, especially during the summer, which is the traditional touristic season in Lebanon,” says Kamel Saad, owner of Omega, a jewelry and watch store toward the middle of Hamra Street.

However, some retailers on Hamra Street say the Iraqi and Syrian nationals who frequent their neighborhood compensate to a certain extent for the decline in tourists from the Gulf. According to statistics by Global Blue’s Insights into Tourist Spending report for the first quarter of 2015, Iraqis accounted for the largest percentage of tourists who reclaimed taxes after shopping in Lebanon (with Iraqi tax claims comprising 30 percent of the total number).

“We are relying mainly on the Iraqis who usually come for medical treatment in the nearby hospitals and for tourism on the side. We used to get a lot of Syrian customers, especially when they used to come for shopping trips over long weekends, but their numbers have declined over the past year,” says Mardini.

Big Sale, a large discount store in the heart of Hamra, says their main clients are “foreigners,” mainly Arab visitors from Egypt, Syria and Iraq who buy gifts for their families back home. They insist that the number of these clients has not decreased and attribute their high sales so far this year to their presence in the country for leisure, medical or professional purposes.

Another group of foreigners which some discount stores on Hamra Street say help keep their businesses afloat are the migrant community workers, especially from the Philippines, who attend mass on Sundays in the Saint Francis Capuchin Church located at the beginning of Hamra Street and then visit these stores for some shopping.

“Although the weekend is usually slow for us in Hamra, the Filipino community makes up for that in the few hours after church on Sunday that they have to shop. We sometimes make up to a hundred sales in that period,” says a sales manager at Akil Bros Stores.

The murky future

Itani says that Hamra is in a generally better situation than somewhat similar retail areas such as Mar Elias or Furn El Chebbak, simply because its geographical location lends itself to more footfall, being surrounded by universities, banks and hospitals.

Yet, he believes more could be done to support the area and make it a more attractive location for tourists. “Security aside, a tourist will not put up with Lebanon’s infrastructure, with the heavy traffic in the city, no electricity and water, and why should they?” he asks.

The Hamra Traders Association is promoting Hamra through street wide events and through lobbying for better infrastructure but until more is done at the governmental level, many of Hamra’s independent retailers are merely hanging on.

[pullquote]“We are on the old rent; otherwise, we would have packed our bags and left”[/pullquote]

Today they are able to survive because most of them are on the pre-1992 rental agreement which means their rent is affordable to them. If the new rental law is passed, some retailers interviewed don’t see a future for themselves on the street anymore. “We are on the old rent; otherwise, we would have packed our bags and left. If the new law is passed, the owners have to pay us a big khelew [sum paid to the tenant to end a contract] which we would use to exit the retail industry,” concludes Tabbara.

May 14, 2015 0 comments
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Economics & Policy

No money mo’ problems

by Jeremy Arbid May 14, 2015
written by Jeremy Arbid

Less than 50 percent of the funding needed to help Syrian refugees in 2015 was pledged at the third Kuwait donor conference in late March. The concern is that the dismal response to the pledge drive will further erode the basic life services refugees receive, while need continues to increase as humanitarian aid dwindles. Lebanon, already struggling under the weight of its refugee crisis, risks further economic decline and security instability.

The government could only bury its head in the sand for so long — the downward trend in available aid has forced Lebanon to shift its approach. Where once the government took a backseat in responding to its refugee crisis, it now is taking the lead with support from the United Nations via the Lebanese Crisis Response Plan (LCRP), first introduced in December 2014.

Those fleeing the brutal war in neighboring Syria have boosted the population of Lebanon, according to LCRP estimates, to nearly 5.9 million, and over half (3.3 million) are in need of humanitarian aid or economic recovery support. The international aid response has not kept pace with the increasing number of those in need — the nearly 1.5 million Syrian refugees both registered and not, 313,000 Palestinian refugees, as well as 1.5 million vulnerable Lebanese. The refugee crisis has also strained the country’s economic and security stability, and the government, via the LCRP, has finally recognized this crisis as a reality.

[pullquote]“Lebanon today is facing an existential threat”[/pullquote]

“Lebanon today is facing an existential threat — it is no longer a refugee crisis, it is a Lebanese one with everyone affected — both the Syrians and Lebanese are affected,” says Hala Helou, an advisor to the Ministry of Social Affairs — the government agency coordinating the LCRP. It is, she says, a comprehensive integrated plan that does not differentiate between the humanitarian and developmental needs for Lebanon.

“Everybody sees this as a protracted situation and nobody is expecting [it to end soon],” Helou says, adding that the expectation is that funding for the refugee crisis, at some point in the not too distant future, will dry up. “We as a government would be left with 1.5 million Syrians in addition to 4 million Lebanese and 400,000 Palestinians with no support whatsoever and we would have to rely on our own resources that are already very weak to tend to these people — supporting our services right now would be the best solution for the future,” she says.

Where’s the money?

Beyond addressing the humanitarian needs of the vulnerable population, Helou says the LCRP will maintain services to prevent further destabilization in the country. The number of poor in Lebanon, she says, has risen dramatically since 2011, by nearly two thirds, while unemployment has doubled. “In these four years, poverty has increased drastically in the country creating certain instances of extremism — whether with the Lebanese or with Syrians — and for us the only way we can protect our youth is to provide for them in a certain way which is not humanitarian assistance — not giving them food or shelter — rather it is by creating jobs and helping them become productive and have some income.” The plan, she acknowledges, is not a long term solution, but rather one to maintain some sort of security and stability.

In 2013, according to the UN-OCHA’s donation tracking website, 72 percent of Lebanon’s total requests received funding, totaling $1.2 billion; the region-wide appeal that year was also one of largest responses in UN history. Last year — Helou says Lebanon was the second funding priority following Syria after the Kuwait donor conference — requests for the country rose to $1.5 billion but only 61 percent of the requests were funded. This year, the total appeal to address the region wide refugee crisis reached $8.4 billion — with Lebanon requesting $2.1 billion — but the pledging result of $3.8 billion at the Kuwait conference, held in late March, suggests less than 50 percent of the region’s request might be funded. Lebanon’s received funding through mid April has reached just over $300 million, 15 percent of the need, and promises at the Kuwait conference, Helou says, must turn into commitments, the distribution of which is not yet decided or at least not yet publicly available.

Daniel Gorevan, Syria crisis policy lead for Oxfam International, a humanitarian organization addressing refugee needs in Lebanon and the region, also acknowledges that funding is not increasing at the same level that need is increasing. “The scale of humanitarian need is rising at a much greater pace with more displaced — hundreds of thousands upon millions of refugees. The main problem is that funding increases are not keeping pace with the rapid increases of people that are in need of assistance,” in Lebanon and neighboring countries he says.

[pullquote]“It is everybody’s responsibility and nobody’s”[/pullquote]

Oxfam published its 2015 fair share report showing the level of funding each country makes available to the humanitarian response in contrast to their gross national products (GNP), while also noting the number of Syrian refugees countries resettle. Gorevan says the reasons behind publishing the fair share report is to develop an accountability mechanism for UN appeals. “It is everybody’s responsibility and nobody’s, so the reason we breakdown the ability of countries to pay based upon their GNP was we could be more specific about who is contributing and who is failing,” he says.

According to that fair share report, in 2014 three of the world’s wealthiest countries, as a measure of their GNP, contributed at or above 90 percent of what is their country’s fair share to the Syrian refugee appeal — the United States contributed $1.7 billion (97 percent of its fair share), Germany contributed $425 million (111 percent), and the United Kingdom $432 million (166 percent) — to the region wide Syrian refugee appeal. But not every wealthy country paid its fair share — Russia contributed only $46 million (7 percent of its fair share), Japan $149 million (29 percent) and France $154 million (57 percent). However, the fair share report doesn’t consider donor priorities across humanitarian appeals, only pledges to the Syrian one.

Aiding the host community

Gorevan also points out that Oxfam’s fair share report emphasizes the view that the international community’s funding of the UN appeals — for life saving assistance — is the bare minimum of what they can do. “We are also calling for bilateral and multilateral donors to [recognize] the broader challenges countries are facing in hosting so many refugees. In Lebanon [the presence of] over 1 million refugees obviously places a huge strain on health services and water infrastructure, schools and all the other services in the country. We’re asking for these economic aid packages to benefit both refugees and host communities in the services they provide and the jobs that they create.”

That, says the ministry’s Helou, is the shift in addressing refugee needs that the LCRP represents: it is a decision by the government to articulate how to maintain services to refugees rather than the mixed and overlapping priorities of the UN and NGOs. The preferred option for donors, she says, has been to fund the UN and NGOs directly based on their own priorities, which are not always the Lebanese government’s. Helou notes that the government, through the LCRP, is “agreeing with the donors and the UN that there needs to be a shift where, even if the funding is going directly to the UN without any role for the government, [funding must] be in line with the priorities of the government.” She specifies that the $2.14 billion plan targets the most vulnerable Syrian refugees and poorest Lebanese to provide food, shelter and other basic material needs while, at the same time, the plan invests in institutions and organizations that strengthen delivery of services to support Lebanon’s stabilization. The LCRP, Helou explains, also includes longer term projects to be undertaken by different ministries and the Council for Development and Reconstruction that would help develop infrastructure and calls on more investment for Lebanon and its economy. This is to, for example, “create more job opportunities for Lebanese youth while allowing Syrians to benefit from certain jobs where the law allows them to work,” she adds. Helou goes on to explain that the Lebanese government needs to “think long term because this is a protracted situation and the Syrians might be staying in Lebanon — [we need to be able] to maintain living conditions for the refugees [and] take care of the Lebanese too,” she concludes.

[pullquote]For Lebanon the indicated decline in funding will, predictably, be disastrous for the country and refugees specifically[/pullquote]

The trend in funding the region’s refugee appeals appear to be on the decline. Other crises like last year’s Ebola outbreak or the more recent conflict in Yemen, say both Helou and Gorevan, have increased demand on donors’ aid budgets while the scale of the Syrian refugee crisis continues to increase. “When Ukraine happened most of the European money was rechanneled,” Helou says.

For Lebanon the indicated decline in funding will, predictably, be disastrous for the country and refugees specifically. Gorevan says Lebanon will see a deepening of the dynamics witnessed last year: “Less assistance for less refugees, smaller rations and more targeting. The practical implications of that — which we’re already hearing — is confusion as to why this is happening, and increased desperation of the refugees.”

May 14, 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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