• Donate
  • Our Purpose
  • Contact Us
Executive Magazine
  • ISSUES
    • Current Issue
    • Past issues
  • BUSINESS
  • ECONOMICS & POLICY
  • OPINION
  • SPECIAL REPORTS
  • EXECUTIVE TALKS
  • MOVEMENTS
    • Change the image
    • Cannes lions
    • Transparency & accountability
    • ECONOMIC ROADMAP
    • Say No to Corruption
    • The Lebanon media development initiative
    • LPSN Policy Asks
    • Advocating the preservation of deposits
  • JOIN US
    • Join our movement
    • Attend our events
    • Receive updates
    • Connect with us
  • DONATE
Comment

Adapting to democracy

by Eileen Byrne December 31, 2012
written by Eileen Byrne

Tunisia’s coalition government, its first to emerge from free and fair elections, has been on a steep learning curve through its first year in office. In the October 2011 vote for a constituent assembly, the Islamists of the Nahda (‘Renaissance’) party reaped the gains of their unflinching opposition to the deposed regime of Zine al-Abidine Ben Ali, but the credit this brought them is wearing thin as economic recovery lags. In the parliamentary and presidential elections planned for 2013, Nahda will struggle to repeat its resounding success of last year.

The party has had to adapt rapidly to operating in a democracy, and the Tunisian media, much of which remains in the same hands as before the revolution, has been eager to jump on its mistakes. One such mistake was Nahda leader Rachid Ghannouchi’s failure to put enough clear blue sky between his party and the extreme conservatism of certain radical Salafist preachers. 

Salafists have emerged as key drivers in a change in the climate for freedom of expression that troubles many non-religious Tunisians. On three occasions, starting with marches against a screening of the film Persepolis just before the 2011 election, Salafist activists were able to swing a surprisingly broad swathe of public opinion behind their stance that Islam was under attack and needed to be defended. Salafist preacher Abou Iyadh, leader of Tunisia’s own Ansar Ash-Sharia group, has attempted to exercise leverage outside party politics. Other Salafists have formed parties to present candidates in next year’s elections. Nahda hopes the elections will reveal that their true level of support is less than some media coverage has suggested. 

A turning point came in September, when a demonstration headed by Salafists degenerated into chaos and arson at the United States embassy, with four demonstrators killed. The damage inflicted on relations with the US was considerable but not irreparable. Washington is a leading backer of the project for a democratic and prosperous Tunisia; the Obama administration is betting that Tunisia can prove a success story to inspire other Arab countries. With Europe — Tunisia’s main export market and source of job-generating investment — wracked by crisis, outside financial aid will continue to be key to underpinning stability through 2013.

Nahda politicians have pledged a tightening of security, emphasizing that this will not be at the expense of fair trials and civil liberties for all Tunisians, including Salafists. Guaranteeing those rights will not be easy, with the country’s security services and judicial system still in upheaval, having been the main instruments of repression under Ben Ali. Two young men, who were detained after September’s demonstration at the US embassy, died in November after a two-month hungerstrike protesting their innocence and demanding to be set free.

Constituent assembly members have honed their political skills in the same parliamentary chamber once occupied by Ben Ali’s yes-men. The Islamist party has shown a willingness to compromise over the draft constitution, accepting a system in which a directly elected president will have certain executive powers. Nahda would have preferred executive powers concentrated in the office of prime minister.

The mooted June 30 date for the 2013 election may slip toward the autumn, as a new electoral commission is put in place to supervise a closely-fought vote. Nahda will seek to hold together its fragile alliance with the center-left Congress for the Republic and the Ettakatol party, which reassures both domestic and international audiences. Its main challenger will be a new party, Nida Tounes (‘Tunisian Call’), headed by last year’s interim prime minister, the 86-year-old Beji Caid Sebsi. Claiming to have “technocratic” expertise, Nida Tounes will seek to build an anti-Islamist bloc that includes figures who worked with Ben Ali but who are regarded as having avoided major corruption scandals. Chronic unemployment in the western and southern regions will, through next year, weigh heavily on the hopes and dreams of the younger generation. The grumble that “nothing has changed” will still be heard. 

Whatever government is in power will struggle to keep a lid on tensions, especially when these are stoked by political opponents. Both old and new political elites have, however, repeatedly deployed the language of “consensus-building” to bring the country back from the brink. The much-heralded process of transitional justice, addressing rights abuses of past decades, will proceed cautiously, and there may still be a certain lack of clarity on prosecutions for corruption.

Eileen Byrne reports from Tunis for the London-based Guardian and The Sunday Times

 

December 31, 2012 0 comments
0 FacebookTwitterPinterestEmail
Insurance

Walid Genadry

by Thomas Schellen December 25, 2012
written by Thomas Schellen

The task of insurance sector supervision in Lebanon is the domain of the Insurance Control Commission, a body attached to the Ministry of Economy and Trade. The ICC team is headed by Walid Genadry. In a chat with Executive, he spoke about some of his experiences and ambitions for the sector.

  • Has Lebanon seen major developments in insurance supervision in 2012?

If something has moved, it is subtle. It is background work and 2012 was a year that was rather dull for the insurance sector in Lebanon. We are a small team in insurance supervision and what I see is that the rate of controls has increased markedly. There have been competence developments and people are in high gear on a number of issues despite the impediments on the legal side.

  • How do you measure the performance and development of the ICC team?

It is the understanding and the speed at which they do things. I have signed between 200 and 250 letters back to the sector since we received the annual reports from companies in May/June. These letters were based on the findings of the team and constituted an unprecedented number of messages where we either asked companies to correct an inadequate financial situation, to correct statements in their financial reporting or, because from our analysis we could not be sure of the viability of their information, asked them to send us the proper information.

  • Can you specify issues that rank high on your agenda for 2013?

We are trying to nail down the issue of compulsory car insurance. It is about time that something gets done. The solution is partly technical and partly related to regulating market conduct. This part needs the help of the politicians.

  • Does your plan pertain to compulsory insurance of material damages?

No, to the present compulsory [insurance], which covers bodily injury. To my mind we must not introduce the material damages compulsory car insurance if the existing problems on the level of liability for bodily injuries are not solved.

  • What problems are we talking about? Issues related to the amounts of indemnities that were awarded?

You had several problems. Policies were not sold at the official price which led to cash underwriting and a monopoly of some [providers] and there were and are problems with lack of payment of claims. At some point there was cheating on the official vignettes with people escaping from taxation and reserving.

  • Doesn’t the new traffic safety law imply that mandatory coverage of motorists for material damages will be introduced?

Hopefully the new traffic safety law will help move things forward. It has a measure on compulsory insurance for material damages. This will not be automatic because the introduction of this compulsory line remains under the authority of the Ministry of Economy and Trade. But the new law will increase the pressure for this to be applied. So if we make sure that the problems with the present compulsory car insurance are solved, it will be easier to expand it to coverage of material damages.

You mentioned the data provided by insurance companies to the ICC. Has the quality of their financial reporting improved over the years?

It has been improving if I look at the last 10 years but we still spend a non-negligible amount of time and energy correcting what we receive. It is sad that companies still make mistakes on information they should be masters in.

  • But isn’t it true that it can be to their own detriment if companies do not know their financial data perfectly?

That is right, because a number of those errors are not intentional. In principle the data we need is the same data that the general manager of the company needs. We detect problems in their financials and that is not supposed to happen. Our objective is not to correct data. It is just to see if a company is healthy or not. If it is healthy, we leave it alone. But the general manager needs to know whether the company is healthy or not in order to steer it. So it is surprising that we still have a level of data quality that can be improved.

  • Last year the Arab Forum of Insurance Regulatory Commissions (AFIRC) met in Beirut to discuss greater collaboration. Has much happened since the 2011 meet?

AFIRC is a gathering of supervisors. We are working seriously but at the pace that we are capable of taking. We have a strategy that was developed in collaboration with [consulting firm] Booz & Co and it proposed about 18 initiatives. We had a quite intensive discussion for a year and a half and finally decided that we could not go as quickly as the strategy wanted. We have selected about one third of those initiatives for the next five years.

  • That means six initiatives? What are they focused on?

We are working on three long-term ones and three short-term ones. The direction that we are taking includes things like training of supervisors and self-assessment of supervisory authorities.  We also have a metrics project with the assistance of [professional services and accounting firm] PricewaterhouseCoopers where we are trying to put regional statistics together. We have had a training certificate developed by the Bahrain Institute of Banking and Finance.

  • How much demand from countries in the Middle East and North Africa region is there for competency building in insurance supervision?

We need a lot of competency building of supervisors in the MENA region. What I see is that you have a catch-22 problem in the sense that the more you need, the less you can absorb. Development takes time. Anything related to education and competence development is a slow process at best.

When you train a supervisor, you may not be in the optimal context. You may not be independent or have an independent budget. You don’t have mentors and you have difficulty  absorbing knowledge because you have to do your work on top of it. For a smart person it takes a lot of time to start mastering [supervision]: understanding, sniffing and catching mistakes. That is our role. If the referee doesn’t catch mistakes, he has a problem. So yes, we need a lot of training, and no, we are not advancing as quickly as we want but this is partly structural, and probably the lot of most developing jurisdictions.

  • Would your work be easier if the ICC was a standalone entity and not attached to a ministry?

Ideally, yes, and I insist on ideally because who gives you the independence? In order for independence, which is desirable, to be effective, it is first necessary that the politicians accept the idea sincerely. If they don’t, it is a worse solution than being attached to a ministry. When the minister respects you, he is in a position of defending you so that you can do your work.

  • Where do you position yourself as a person in carrying out your role as supervisor of the sector and leader of the ICC; are you an eternal optimist, a worrier, a motivator or a detached analyst?

I would say I am pragmatically passionate. Concretely, I believe in what I am doing.

  • So you don’t worry every night about the future of Lebanese insurance?

There is a cause to worry every night, but I do accept that reality has its place.

You said that perhaps the greatest compliment people gave you was in saying that you have done a lot with what legal tools you have at your disposal as supervisor. What is your message in that?

That people agree to the need for a new law. Some of the work you do goes by power of common sense and a certain moral authority. But moral authority has its limits and you need the power of the law. Let me put it in a very concrete way: I cannot in any way influence the implementation of governance. There is 0.000 percent possibility to introduce anything related to corporate governance with the present law, not even in an indirect way. I can do some improvements to market conduct because I am supposed to protect policy holders and even then it is not enough, but I can in no way establish a modern solvency system.

December 25, 2012 0 comments
0 FacebookTwitterPinterestEmail
Editorial

Hope, despite ourselves

by Yasser Akkaoui December 25, 2012
written by Yasser Akkaoui

The Lebanese were not shy to give voice to their discontent in 2012.

The grievances underlying these manifestations of public discontent were clear: declining purchasing power, the decrepit state of the country’s infrastructure and public institutions, and the seemingly inherent instability and criminality in the country.

Teachers and public sector workers chanted in the streets demanding a proper living wage, taxi and bus drivers blocked roads and major intersections decrying the cost of fuel, while protests struck both ends of the electricity network with customers outraged at the frequent blackouts and workers storming Électricité du Liban offices demanding fair pay and labor rights. Then there were the burning tires, the kidnappings, the protests against kidnappings, retaliatory kidnappings, and farmers and their families blocking the security services from eradicating cannabis crops.    

And that’s all aside from recurring armed clashes in Tripoli, along the borders and elsewhere; a brutal assassination; a sinking economy and soaring inflation; refugees flooding in from a civil war next door; a decimated  tourism season with its wide impact across business sectors, and increased international pressure on Lebanese banks from the United States, among a litany of other crises. In tandem, our entire political class — both government and opposition — utterly lost whatever moral authority to lead they had left, showing themselves corrupt to the core and inelastic to change.

Had we a crystal ball in January and known all this was in the pipe for the 12 months that were to come, we might have thrown up our hands and booked tickets abroad while writing Lebanon’s last will and testament.

And yet, here we still are. Lebanon persists. Lebanon survives. Because that is what the Lebanese do. And how? Because despite ourselves, despite the pain and the complaints, hope lives in our DNA. Even while businesses were closing this year, others were opening; the entrepreneurial space grew like at no other time in recent memory; developers continued to build around the country, not to sell tomorrow, but the day after — the better day they all say they see coming.

Next year will obviously have its challenges, but avenues are opening for potential progress — the new Capital Markets Authority, the public-private partnership law, maybe even a railroad up the coast.

And then there are the elections. Will the Lebanese finally give voice to their discontent at the ballot box? I’d like to be optimistic.  

December 25, 2012 0 comments
0 FacebookTwitterPinterestEmail
Business

The app that knows your number

by Joe Dyke December 20, 2012
written by Joe Dyke

Looking at the Lebanese Google trends data for 2012, one company’s growth shone above any other. In 2012 the number of people searching for Truecaller in Lebanon increased by 4,150 percent – the biggest rise of any term in the search engine, with the next highest growing by just 250 percent. Truecaller’s app has been the most downloaded on both iPhones and Android phones for much of the second half of the year.

The service Truecaller offers is remarkably simple. It allows people to log on and enter a number to find out the name of a caller. In effect it is a backwards phone book – rather than looking for the name and getting the number, you enter the number and find out the name. This service is incredibly useful in Lebanon, where the curse of the missed call from an unknown number is particularly common due to exorbitantly high calling costs.

The app’s huge success in the country has taken its inventors by surprise. Swede Alan Mamedi, who came up with the idea along with a friend after working for a company where he got a lot of missed calls from international numbers, says he had no idea it would take off in the Middle East.

“Our total marketing budget for the app last year for 3000 euros ($4,000). None of that went to the Middle East!” he jokes. “For some reason people started to use our application in Lebanon and now we have become popular in the whole region. Being a market leader in Lebanon is a big success.”

The app is hugely popular globally, with over 1 million global downloads a month, and aside from the Middle East is particularly popular in India and Scandinavia. “We try to remove the land borders and in most parts of the world there are no yellow pages, so our goal has been to be global,” Mamedi added.

Taking liberties?

Truecaller has, perhaps unsurprisingly given the nature of its business, been accused of an invasion of privacy. Show the app to someone for the first time by entering their number and watching their name appear and they often feel outraged.

The numbers are actually collected not through purchasing the data from service providers but in fact from crowdsourcing. When you download the application you are asked if you are willing to share your data, and if so it is uploaded onto the company’s servers.

Elie Fares, a Lebanese student and prominent blogger, has begun a campaign to encourage people to stop using the service. “The problem is not with the site, it’s with you giving them unlimited access to your contact list. Do you want a random company to have unlimited access to it? What if some random Lebanese company uses it to send spam messages?”

“When you are giving a random company access to your contacts – it is the same as saying ‘read my texts’,” he added.

Yet Mamedi believes such concerns are misplaced, pointing out that those opposed to their data being in the public domain can opt out. “When people find out that their number is available it is very important to make sure that our users understand that the information can only be retrieved by entering the phone number.”

“We made it possible for anyone to opt in with their names and phone numbers in their phonebook….If you opt in to share, when you opt out your data gets deleted. If you have friends that don’t want their number there they can delete it. If you want you can untag your whole family.” He adds that the company is taking security concerns into account and plans to introduce new features to protect data.

While there are also concerns about the safety of the company’s data in an era of increasingly powerful hackers, Mamedi said it would be all but impossible for someone to access their servers to get the information. “When it comes to security I cannot give you an example or explain it in technical terms but we have a very talented engineering team that have been working with this,” he added.

Carry on growing

No matter what, 2013 is likely to bring further growth for Truecaller. In September, the Venture Capitalist fund Open Ocean invested $1.3 million in the app, with Open’s Ralf Wahlsten explaining that they believed “Truecaller is positioned to be the leading service in the global mobile white pages industry.”

Mamedi said that whilst hoping to maintain their dominance in the Middle East and other markets, they are targeting Western Europe and the United States in 2013. Truecaller was previously banned in the United Kingdom due to privacy laws, but is now expanding rapidly.

The app is currently free and Mamedi says he intends to keep it that way, instead planning to make money from other revenue streams. “We will be introducing new features to monetize where users can buy extra services,” he said, refusing to be drawn further on the details.

He added that the company was investigating the possibility of adverts and “testing the ad market in one specific country to see if it works… [but] I don’t think it is the right way to go as we don’t want to ruin our application.”

December 20, 2012 1 comment
0 FacebookTwitterPinterestEmail
The Buzz

Morning briefing: 19 Dec 2012

by Executive Staff December 19, 2012
written by Executive Staff

Economics

Gold regained strength on Wednesday as a weaker US dollar spurred buying from jewellers, but prices were still within sight of an almost four-month low given signs of progress in US fiscal talks that dented bullion's safe-haven appeal.

More from Reuters

 

Brent futures edged up near $109 a barrel on Wednesday, tracking a rally in most other risk assets on expectations that a budget crisis in the United States will be resolved, saving the world's top oil consumer from slipping into recession.

More from Reuters

 

The World Bank has pledged $900 million to Iraq over the next four years to help it create jobs, build stronger institutions and improve social inclusion, the global development lender said.

More from Arabian Business

 

More than US$400bn of illicit cash flowed out of the six GCC countries between 2001 and 2010, according to a report by a global financial watchdog.

More from Arabian Business

 

Gasoline prices in Lebanon continued to increase slowly for the third week Wednesday, the weekly price update shows.

More from The Daily Star

 

Companies

Abu Dhabi-based hotelier Rotana is on track to open eight properties in the Middle East in 2013, according to pipeline data obtained by Hotelier Middle East.

More from Arabian Business

 

Zain Saudi extended the maturity of a 9 billion riyals ($2.40 billion) Islamic loan for another six weeks on Wednesday, the sixth time the loss-making telecom operator has deferred payment.

More from Arabian Business

 

Saudi Arabian Mining Co (Maaden), which has an aluminium joint venture with Alcoa, raised 9 billion riyals ($2.4 billion) through an Islamic loan facility to help fund its future projects, it has said.

More from Gulf Business

December 19, 2012 0 comments
0 FacebookTwitterPinterestEmail
The Buzz

What did the Lebanese Google in 2012?

by Joe Dyke December 19, 2012
written by Joe Dyke

In the past week Google released its Trends data for 2012, providing insights into what the world looked up over the course of a year. Unfortunately Google Trends in Lebanon is not as sophisticated as it is for larger markets such as the United States, so doing searches in categories is not possible. Nevertheless we have sought to dig out what the Lebanese searched for in 2012.

 

Politics

While Future Movement leader Saad Hariri may not have been in Lebanon much in 2012, this doesn’t appear to have stopped him dominating political discussion online. The head of the opposition, who left the country in early 2011, has been active on Twitter in the past year and his name was Googled more than any other politician's inside Lebanon. However this number must be qualified by the fact that many people Googling Hariri were in fact looking for the airport that bears the name of his late father and former Prime Minister Rafik Hariri.

Note: The graphs are relative comparisons, whereby 100 represents the peak search period and the rest are relative to that number. If you hover over the graphs, you can see the data more clearly.

 

However worldwide Hezbollah leader Hassan Nasrallah was a more popular search online, with spikes including when he was interviewed on Julian Assange’s Russian TV chat show in April.

 

 

Companies

Top 10

1. Facebook

2. Google

3. Youtube

4. Whatsapp

5. Hotmail

6. Samsung

7. Nokia

8. Blackberry

9. Yahoo

10. MTC

 

No surprises at the top of this list as Internet behemoth Facebook is again the most Googled search term in Lebanon in 2012, followed in the same order as in 2011 by Google and Youtube (which is owned by Google). The big riser, however, was Whatsapp – the free messaging service for smartphones – coming in fourth having been only the 11th most searched company in 2011.

 

Fastest increases

1. Truecaller (4,150%)

2. Viber (250%)

3. Whatsapp (170%)

4. Samsung (120%)

5. HTC (110%)

The rise of Truecaller in Lebanon has been incredibly steep and the inventor of the mobile and online app, which allows you to find out who called from an unknown number, has been discussing its success with Executive.

 

Banks

Lebanon's five largest banks in terms of assets are, in order, Bank Audi, Blom Bank, Byblos Bank, Fransabank and Bank Med and that order is replicated in Google searches with Audi far more searched for online than its rivals.

Countries

The Syria crisis posed the most immediate threat to Lebanon in 2012 but does not appear to have preoccupied people’s minds. France was in fact the most Googled country, followed by the USA and Syria.

 

 

Euro 2012

If Google is an indication of who the Lebanese were supporting at the European Football Championships, held in Ukraine and Poland in June, then it seems they were not rooting for the eventual winners Spain. Runners-up Italy were in fact the most Googled country during the final week of the tournament, followed by Germany and then Spain.

 

 

Celebrities

2012 was the year of Wael Kfoury, as the singer releashed his first album since 2007 and topped the charts with hits such as "Ya Dalli Ya Rouhi." His name was Googled more than other stars such as Elissa, Nancy Ajram and Haifa Wehbe – all of whom had successful years.

 

15 minutes of fame award

There can only be one winner for this: Myriam Klink. The "3ANTER" singer's hit about her pet pussy cat provoked one of the biggest temporary spikes of the year in Lebanese Google searches.

The first chart, without Klink, shows Haifa Wehbe, Nancy Ajram and Elissa as the top three Googled female artists overall, with the legendary Fairuz trailing a long way behind.  

    

 But the second graph, with Klink, shows that for a brief period in June she was all the Lebanese were looking up. This spike coincided with a satirical comedy show hosted by Nemr Abou Nassar in which he turned his wrath onto the blond singer's 'talents'.

 

December 19, 2012 0 comments
0 FacebookTwitterPinterestEmail
The Buzz

Morning briefing: 18 Dec 2012

by Executive Staff December 18, 2012
written by Executive Staff

Economics

Brent crude rose above US$108 a barrel on Tuesday as the outlook for oil demand improved on signs of progress in US talks to resolve a budget crisis that threatens to dip the world's top oil consumer into recession again.

More from Reuters

 

Saudi Arabia will review fuel prices and give its civil aviation body powers to allow fare increases as it struggles to move towards an open-skies policy, the country's information minister has said.

More from Arabian Business

 

Port of Beirut revenues increased 8.8 percent to reach $158.5 million in the first 11 months of 2012 from $145.7 million recorded a year earlier.

More from The Daily Star

 

Global oil supplies are plentiful and demand is good, while buyers and sellers are happy with current prices, top exporter Saudi Arabia's oil minister Ali Al-Naimi said on Tuesday.

More from The Daily Star

 

Companies

Saudi food and drink manufacturer Savola Group is to build a $106m distribution center in the Gulf kingdom.

More from Arabian Business

 

Banque Saudi Fransi, which is part-owned by Credit Agricole, will close a 1.9 billion riyals ($506.6 million) Lower Tier 2 Islamic bond issue on Tuesday, a source familiar with the matter said.

More from Gulf Business

 

Saudi Arabian Mining Co (Maaden), which has an aluminium joint venture with Alcoa, raised 9 billion riyals ($2.4 billion) through an Islamic loan facility to help fund its future projects, it said on Tuesday.

More from Reuters

 

Following a year marked by a sharp decline in tourism and an acute economic slowdown, Beirut’s Central District, known for its high-end stores and numerous restaurants, looks set to shed more of its outlets as businesses prepare to close their doors.

More from The Daily Star

 

Investcorp, a Bahrain-based alternative asset manager, said on Tuesday it acquired five real estate assets in the United States for around US$100m.

More from Arabian Business

December 18, 2012 0 comments
0 FacebookTwitterPinterestEmail
The Buzz

Morning briefing: 17 Dec 2012

by Executive Staff December 17, 2012
written by Executive Staff

Economics

Brent crude held steady above US$108 a barrel on Monday, drawing support from a brighter economic outlook for top energy consumer China, although investors remained skittish as US talks to avert a year-end "fiscal cliff" dragged on.

More from Reuters

 

Gold edged lower on Monday, extending losses to a third straight session, as slowing trade ahead of the year-end holidays responded little to the latest progress in the US budget talks.

More from Reuters

 

Iran's oil revenues have been cut in half this year compared with last year, a newspaper quoted Iran's economic minister as saying, an admission of how deeply Western sanctions are cutting Tehran's chief source of funds.

More from Arabian Business

 

Kuwait's index is seen steady on Monday despite demonstrations against the new parliament.

More from Arabian Business

 

Palestinian Prime Minister Salam Fayyad urged his compatriots in the occupied West Bank on Sunday to boycott all Israeli products, upping the ante in a standoff with the Jewish state.

More from Arabian Business

 

Salaries increased by 11 percent in Lebanon in 2012, said a report by international management consultancy Hay Group, which forecasted a further increase of 8 percent in 2013.

More from The Daily Star

 

The tentative oil cooperation between Baghdad and the semi-autonomous Kurdistan region, which was reached three months ago, has suffered a series of political setbacks as the two governments remain locked in a military standoff in Iraq's disputed territories.

More from Iraq Oil Report

 

Companies

Dubai’s Gloria Hotels has opened the largest hotel property in the Middle East in terms of number of rooms, the operator announced.

More from Arabian Business

 

Subsidized loans extended to small-and medium-size companies declined 15.5 percent in the first 11 months of 2012 compared to last year, Kafalat SAL said in a statement.

More from The Daily Star

 

Saudi Arabia’s HRH Prince Alwaleed bin Talal has topped the Arabian Business Rich List for the ninth year in succession, with his current wealth now standing at US$25.9bn.

More from Arabian Business

December 17, 2012 0 comments
0 FacebookTwitterPinterestEmail
Economics & PolicyLebanon 2013: The big ideas

Unbinding sectarianism

by Nadim Houry December 16, 2012
written by Nadim Houry

Lebanon is presented with the most serious challenges it has faced in the past decade. The economy is struggling, the internal security situation  deteriorating and the country’s neighbors pose real threats. Yet amidst everything, there are opportunities — not just in newfound offshore oil and gas but also within the country’s ingenious population.

As we head into 2013, what can be done to help the country unite, to overcome its challenges and ultimately to grow? Over the course of this week, eight influential figures will address seven important topics, each suggesting one proposal to help the country move forward. In this final article, Nadim Houry from Human Rights Watch makes the case for an anti-discrimination law.

 

Buried deep in Lebanon’s Constitution is an often-neglected provision that was inserted at the end of the civil war in 1989. Article 95 called for a transitional period to abolish political sectarianism and cancel confessional representation in public service jobs, the judiciary, and security institutions. And yet, nearly a quarter-century later, not only has Lebanon failed to begin this transitional period but the confessional allocation of jobs has increased across all levels of public administration. Sectarian considerations have also become more common in private sector employment and in private dealings, such as real estate transactions.

Given the current level of political deadlock and sectarian tension, it is unlikely there will be any breakthrough during 2013 in terms of reforming or abolishing political sectarianism. But Lebanon could try to stem the sectarian drift in day-to-day life by adopting an anti-discrimination law requiring equal treatment of  all Lebanese in employment and in private transactions such as rental or purchase of homes. A temporary exception could be made in the law for the allocation of parliamentary seats and the highest-ranking positions in the state to take into account existing power-sharing arrangements in the Constitution.

Left unchecked, Lebanon’s sectarian dynamics have spread like a cancer across public administrations. Today, the simplest public appointment is subject to sectarian horse-trading with the predictable outcome that qualifications are rarely the main selection factor. Take the recent appointment of a six-member committee to oversee and regulate the oil and gas sector. Instead of focusing on expertise, the government focused on ensuring that the appointees came from the following six communities: Shia, Sunni, Druze, Maronite, Greek Catholic, and Greek Orthodox. Tough luck for any oil expert who may belong to the other 12 religious communities recognized in Lebanon.

See also: Former Labor Minister Charbel Nahas on rethinking the economy

Roudi Baroudi on the country’s oil and gas

British Ambassador Tom Fletcher on foreign interference

Hicham Safieddine on the Syria spillover

Saleh Machnouk on disarming Hezbollah

Sami Atallah on regional councils

Nada Zaarour on the green economy

Some municipalities have announced that they will prevent the sale of land and houses from Christians to Muslims in their areas by refusing to approve the transactions – a necessary condition for the new owner to be able to register the property. In July 2011, the Hadath municipality in Mount Lebanon even put up posters telling people not to sell their land or homes because the municipality would not approve the transactions. Not specified on the posters, but evident to local residents, the municipality was trying to stem the sale by local Christians to Shias, whose numbers in the area had increased.

These municipalities justify such discriminatory behavior by contending that it is essential to protect the community’s interests and that they want to preserve the “character” of the area. Landlords and employers often repeat such justifications when discriminating in their choices of tenants or employees. Many landlords prefer to rent to tenants from the same religious group. While they rarely express this outright, usually such landlords manage to ask a few questions at the onset to determine a potential tenant’s sect. The answer often affects the willingness of the landlord to rent to that tenant.

Such dynamics regularly are in play in the job market. While no statistics exist, anecdotes abound of employers rejecting applicants because of their religious background.

Regardless of their motivation, such practices have a real cost: they discriminate against citizens and contribute to the further ghettoization of Lebanon. The outcome is an increasingly divided population that interacts less and less across communal boundaries. Today, if you are a Christian, you will probably live, work, shop and dine in mostly Christian areas. The same can be said about Sunnis or Shias. The civil war may have ended but many front lines still exist.

Lebanon needs to start tackling this increasing ghettoization, which is directly contributing to divisions in the country. A new equilibrium is needed between promoting the interests of each religious community and  everyone’s right  to be treated equally. Pushing for equality for all is not just about individual rights, it is essential to building a state that is more than the sum of its religious communities. 

This is why I hope that in 2013 Lebanon will adopt an anti-discrimination law. Such a law would not resolve sectarian problems on its own. But it would challenge the norm that it is acceptable for citizens to be treated differently based on their religious background. It would also provide a tool for a few dedicated lawyers to use the judiciary to start chipping at the walls of the ghettos that each community has built around itself. It may even begin to give meaning to another important part of Lebanon’s constitution, its preamble, which affirms equality of rights and duties among all Lebanese citizens without discrimination. 

 

Nadim Houry is deputy Middle East and North Africa director at Human Rights Watch. He runs the organization’s Beirut office.

December 16, 2012 0 comments
0 FacebookTwitterPinterestEmail
InsuranceVoices

Premium insight

by Thomas Schellen December 16, 2012
written by Thomas Schellen

“The insurance industry has shown its resilience, because it is growing. When we drill down, we see that we have some very good professional companies that have good returns on equity and others that are losing a lot of money. On a strategic level, we have to consider recent acquisitions of [two Lebanese insurers by international companies.] So the industry is still attractive to outside players and Lebanon is attractive to be used as a jumping board into the rest of the region. This definitely shows how the insurance industry in Lebanon remains very resilient despite all the [country’s] problems.”

Farid Chedid, Chairman of Chedid Re

“Competition is one of the factors that have increased among insurers in the region, but instead of competing by offering good services, competition is focused on dropping prices with no justification. Unless there are mergers and acquisitions and incentives to consolidate, I don’t see a very bright future in the next three years for the regional industry and this includes Lebanon. Lebanon has a very large number of insurers and although the country has high insurance penetration and density when compared with the regional average, it is very low when compared with Western averages. We still have a long way to go and many brokers and insurance companies still have to learn how to do the business in an ethical and professional way.”

Fady Shammas, Chief Executive of Arabia Insurance

“The biggest worries that everybody has -— the rich and the not so rich — are to guarantee schooling for their kids, care in case of hospitalization and a decent retirement. This important segment of insurance demand is covered by the personal lines and this is the space where we are trying to do something. We have already been working for a while with education and retirement personal plans. These products are doing quite fine, with very acceptable results and I see the future here and with other personal plans.”

Fateh Bekdache, Chief Executive of Arope Insurance

“Marine insurance in Lebanon is developing in step with the economy, based on imports and exports.  It is not a good sign for the market that one is not able to insure business in Syria. For Lebanese cargo insurers the problem of sanctions against Syria, Iran and other countries is that it is not a clear-cut situation. You can insure many shipments while there is no claim. But it is not enough to [have an exclusionary clause in the policy and] say ‘under my policy I don’t pay a claim to a sanctioned party.’ It is also not sufficient to say ‘I will use Lebanese pounds to price a policy in insuring cargo to Iran’ because the US dollar cannot be used.”

Max Zaccar, Chairman of Commercial Insurance 

“The Motor Risk Center is a good idea as it makes it possible to block the bad risks and drivers with bad profiles, like in other countries where high frequencies and severities of claims by certain drivers result in a malus. Having such a database in which all sector companies in Lebanon bring together the relevant information will help insurers to select proper risks and penalize bad ones through additional premiums or deductibles. I have urged my colleagues in the local insurance sector to join the Motor Risk Center by submitting their data.”

Abdo el-Khoury, executive board member at UCA Insurance

“There is a need to further develop professional insurance education in Lebanon. The overall level of insurance qualification is still quite poor, although it is better than in other countries of the region. There is a framework from the (United Kingdom-based) Chartered Insurance Institute and it is internationally recognized. We have been offering CII qualification programs with sponsorship from the Lebanese insurance association for three years and what has happened so far in this professional qualification has been quite fine. The number of companies who sent their employees has increased and the number of CII graduates has more than doubled since 2010. One can estimate that each insurance company has on average at least 10 persons working in middle management and senior staff positions where CII qualification offers a great advantage. If we multiply this number by 50 insurance companies, there is space for something like 500 people to qualify. We now have about 8 to 10 percent of these [who have enrolled in professional education] and there is still a big need.”

Joseph Adaime, Assistant General Manager at Al Ittihad Al Watani
December 16, 2012 0 comments
0 FacebookTwitterPinterestEmail
  • 1
  • …
  • 293
  • 294
  • 295
  • 296
  • 297
  • …
  • 707

Latest Cover

About us

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.

  • Donate
  • Our Purpose
  • Contact Us

Sign up for our newsletter

    • Facebook
    • Twitter
    • Instagram
    • Linkedin
    • Youtube
    Executive Magazine
    • ISSUES
      • Current Issue
      • Past issues
    • BUSINESS
    • ECONOMICS & POLICY
    • OPINION
    • SPECIAL REPORTS
    • EXECUTIVE TALKS
    • MOVEMENTS
      • Change the image
      • Cannes lions
      • Transparency & accountability
      • ECONOMIC ROADMAP
      • Say No to Corruption
      • The Lebanon media development initiative
      • LPSN Policy Asks
      • Advocating the preservation of deposits
    • JOIN US
      • Join our movement
      • Attend our events
      • Receive updates
      • Connect with us
    • DONATE