In malls around town, couples pushing baby strollers are a common sight. However, for many plagued by infertility, children are a luxury they can’t afford.

According to Dr Joseph Aboud, an oncological and gynecological surgeon, Lebanon’s infertility rate stands at 15%. “This percentage can be further broken down, whereby 85% of cases can be solved with medical treatment while the remaining couples will often require IVF surgeries,” he added. The specialist recommends, however, that the right approach to solving infertility problems should be carefully balanced and progressive in terms of treatment procedure.

In vitro fertilization (IVF) procedures have been done in Lebanon since 1989. IVF involves the female eggs being fertilized by sperm outside the woman’s womb and is used as treatment for infertility when all other methods of assisted reproductive technology fail. The process is based on hormonally controlling the ovulation process and removing the ova (egg) from the woman’s ovaries before allowing sperm to fertilize. The fertilized egg is then transferred to the patient’s uterus.

Currently there are about 14 IVF centers in Lebanon, where each assisted reproduction procedure costs about $2,500, according to Dr Aboud. who underlined that in the United States such a procedure can cost up to $25,000. The specialist estimates that about 25% of patients undergoing IVF will be able to conceive after the first trial, while others will frequently require one to five additional procedures.

One bank has identified the need for reproductive assistance and the inherent costs that are linked to it as an opportunity. First National Bank (FNB) started marketing fertility loans of late in all its branches. Maher Mezher, head of FNB’s marketing department, explained that he became familiar with infertility problems during the course of a study he led at Université Saint Joseph (USJ), where he teaches. “While conducting the study, we discovered that about 18% of newly married people were unable or faced difficulty conceiving. The Fertility Association of Lebanon estimates this rate to about 15%. If applied to the general Lebanese population, this figure would translate into 10,000 couples suffering from infertility,” he pointed out. The study also attributed infertility to couples getting married later, change in lifestyles as well as acute stress, causing loss of sperm motility and other infertility problems.

What’s covered

The FNB fertility loan is divided into four main lines. The first line includes fertility treatments such as diets, injections, vitamins, medication and surgeries. The second type of procedure financed by FNB is stem cell collection and conservation. In a developing embryo, stem cells can differentiate into all of the specialized embryonic tissues. In adult organisms, stem cells act as a repair system for the body thanks to their ability to replenish specialized cells, as well as maintain the normal turnover of regenerative organs, such as blood, skin or intestinal tissues. Medical researchers believe that stem cell therapy has the potential to dramatically change the treatment of human disease as stem cells can now be grown and transformed into specialized cells with consistent characteristics. A number of adult stem cell therapies already exist on the market, the more popular ones being associated with bone marrow transplants and to treat certain types of cancers such as leukemia. “These cells are collected from the child’s umbilical cord during delivery and refrigerated at a temperature of -169 degrees, then sent to stem cell banks located in England, Germany, or the United States. These stems, when available in sufficient number, can be used to treat heart disease, Alzheimer, paralysis or any injuries that are caused during an accident,” Mezher explained.

The importance of stem cell treatment has promoted FNB’s decision to finance such vital procedures and make it available to the public. “Besides fertility treatments and stem cell conservation, FNB also finances delivery expenses,” Mezher said. The manager explained that although much of the population may enjoy social security or medical coverage, such insurances may not fully cover procedures in relation to delivery, allowing the bank to step in and fill the gap.

The fertility loan is also granted to couples who can have a child without medical assistance but are in need of financing their baby’s accessories — strollers, furniture for the baby room, car seat, clothes or any other item required by a newborn.

Anyone with a salary of $600 dollars or more can apply for the loan while self employed individuals such as doctors and merchants should boast a salary exceeding $1,500. The loan will also finance the $2,800 or so needed for stem cell preservation. “Nonetheless, loan amounts should not exceed one third of the client’s salary and ought to be reimbursed over a maximum period of three years,” Mezher said.

Top tier loans

FNB applies an interest of 5% on the fertility loan which, according to Mezher, is quite affordable when compared to other loans that are otherwise backed by tangible assets. The amount limit of the loan is $7,000, however, clients with a salary of over $2,000 can obtain a loan of $10,000. On average, each IVF procedure costs about $2,500 and historical data has shown that more than one procedure is required. “We only cover IVF treatments done in Lebanon as we settle doctors’ fees directly,” Mezher added, noting that the loan is not available to non-residents.

The manager underlined the confidentiality involved in the process of obtaining a fertility loan. “Loan applications are distributed to doctors who help their patients fill them out. They are then processed by one department only at the bank and overseen by two FNB employees. I was, however, really surprised by the number of forms which were filled out directly by clients at the various branches and especially in rural southern and northern areas,” said the manager. Lebanese seem to have overcome the cultural taboo traditionally linked with infertility problems. Dr Aboud reckoned that he has seen some patients resort to selling their property, whether apartments or land, to finance assisted reproductive treatments.

An indicator of couples’ desire for children is the FNB’s call center, which went from receiving 26 calls to up to 256 calls per day after the launch of the fertility loan. “We expect to grant as many as 500 to 1,000 loans within a year and a half,” Mezher said.

FNB has relied on a powerful marketing campaign to promote its new loan product. About 1,300 billboards displaying the fertility loan ad were put up around Lebanon while a press conference was organized at the Phoenicia hotel for the public launch of the loan. An ad campaign including TV, newspapers and magazines was also organized. Finally an SMS campaign was initiated a few weeks earlier, with some 100,000 messages sent to mobile phones around the country.

According to Mezher, “The bank is actually creating awareness. We have abandoned classical marketing campaigns that tout the merits of our institution and replaced them with an effective approach underlined by new products from which our clients ultimately benefit”

As profitable a product as the new fertility loans may be, their impact certainly has an important social dimension. In Mezher’s words, “We are positioning ourselves as a daring bank with a keen interest in humanitarian issues.”

The days that one would see groups of Syrian workers sitting on every street corner, drinking coffee and smoking cigarettes while waiting for a job, are long gone by. Since the assassination of former Prime Minister Rafic Hariri in 2005, Syrians have generally proven more reluctant to try their luck across the border, as many Lebanese blame Syria for the string of political killings that shook the country in recent years. It is estimated that following the murder of “Mr. Lebanon,” some 30 Syrians were killed in random attacks.

Meanwhile, Lebanon’s construction and real estate market is booming across the board. Nearly everywhere in Beirut, buildings are bought up, emptied and demolished to make way for yet another new apartment block. With less Syrian workers around while demand is soaring, labor cost has witnessed a significant increase in recent years.

According to a Lebanese contractor from eastern Beirut, who preferred not to be named, the salary of a Syrian laborer has risen by an average of some 33%. “Three years ago an unqualified worker was about LP15,000 ($10) a day,” he said. “Today he charges about LP20,000 ($13). A qualified worker, such as a carpenter, electrician or painter, costs some LP45,000 ($30) a day, up from $20 to $25 a day.”

According to him, there are several reasons for the price hike. “It’s more expensive for Syrians to take the bus to Lebanon and food has become more expensive, so it is only normal that they demand a wage increase,” he said, adding that, ”since March 14 there are simply less Syrians around. A few years ago, you could pick up a worker from the street even for $8, as many were desperate just to eat. Now, you are lucky to find anyone at all.” 

Construction inflation

Personally, the contractor is not too affected by the lack in supply, as he has been working with more or less the same group from Aleppo for more than a decade. He warned that the cost of labor is neither the sole nor the main cause for the increase in construction costs. “Fuel, steel, lead, cables, everything has become more expensive,” he said.

Still, that has not stopped the Lebanese from building. According to figures released by the Order of Engineers of Beirut and Tripoli, the Lebanese authorities issued construction permits for a total of nearly 6.1 million square meters during the first seven months of 2008, an increase of 26.5% compared to the same period last year.

Even the clashes in May 2008 did not stop the builders from building, although the increase in construction activity that month was relatively smaller than in other months. Most permits issued (49.8%) concerned the Mount Lebanon region, followed by north Lebanon (16.5%), South Lebanon (15.9%), Beirut (12.1%) and the Bekaa (5.6%).

The increase in construction activities is to a large extent caused by a soaring demand for real estate. According to the Investment Development Authority of Lebanon (IDAL) over $4.3 billion worth of properties were sold in Lebanon in 2007 alone. Most buyers are Lebanese expatriates working in the Gulf, Europe and the US. According to most real estate brokers, the price of properties in Beirut and Mount Lebanon saw an average increase by some 40% over the past year.

Soaring real estate

“The price of medium and high end property in Beirut has increased by some 35% to 40% over the last four months alone,” estimated Raja Makarem of Ramco Real Estate Advisers. According to him, however, the price increase hike is not so much the result of a rise in construction cost, but by a surge in demand, some 90% of which stems from Lebanese expatriates.

Still, he expected a (minor) market correction to take place during the coming months, mainly due to the current instability in the world’s financial markets. “Over the last three years, the market grew by some 25% to 30% a year, while this year by up to 40%,” he said. “I think the market will go back to normal growth figures in the coming months.”

While the Lebanese banking and real estate sectors have so far not been tarred by the American subprime and financial market crises, Lebanese expatriates may adopt a wait-and-see attitude before investing. In addition, some may have been personally affected by the crash in international stock markets, while others may have lost their jobs due to the collapse of banking giants such as Lehman Bros.

“Although there is no crisis whatsoever, the recent craze for Lebanese real estate may be over, at least temporarily,” Makarem concluded. 

Dressed in white and blue shirts or in grey or black uniforms emblazoned with their company logos, valets scurry around the streets of Beirut, at the entrances of posh restaurants and fashionable clubs where the Lebanese, from jeunesse dorée to middle-aged businessmen, like to see and be seen. They have become a fixture in our life, an immutable service on which all venue owners heavily rely.

In a city where the nightlife industry prevails, winning over more traditional commercial sectors with time, finding a parking spot has become a tricky task. Fashionable areas such as Gemayzeh, Monot, Downtown, Abdel Wahab Street, as well as venues like Sky Bar, White, Riviera, Centrale and Buddha Bar boast a flurry of valets waiting to park the vehicles of customers going out for dinner, a dance or just to grab a quick drink.

Valet parking companies seem to have sprouted around Beirut. Primitive business models built on one freelancer managing a team of valets, have morphed into full-fledged companies, employing tens if not hundreds of people during the peak season. In most places, shabby young men valeting clients’ cars have been replaced by clean-cut employees, respectfully familiar with clients’ names, cars and social status. Although mom-and-pop-style operations still prevail in some areas, they have increasingly been replaced by large companies with names such as VIP, Private or VPS, the latter being owned by Mohamad Mazyad, a.k.a. “Abu Brahim.”

Abu Brahim got his first job parking cars in the early 1990s at the St. Georges resort. Later, employed by one of the ‘freelancers’, he also handled valet parking of the Trad Hospital, followed by the Caracas Bar. In the mid-nineties he was promoted by his employer to the position of supervisor. He was so good at it that in 1998 he decided to abandon his day job in a gas station to dedicate his time to work in valet parking, after taking over his former employer’s operation. “I signed my first contract with the Hard Rock Café and also started to offer this type of service for the McDonald’s food chain,” Abu Brahim said. In 1999, he got his big break after landing the valet parking of Circus, at the time one of the Lebanese capital’s hippest venues. Business then also expanded to managing valet parking for beaches, including Bamboo Bay resort. “Today I manage the parking facilities of some 45 places, which extend from Beirut to the South, if beaches are included, and in the various streets of Beirut such as Monot, Verdun and downtown areas. I also managed the valet parking services at the presidential palace for the wedding of Emile Emile Lahoud [the son of the former Lebanese president],” he said.

Pulling ahead

Abu Brahim believes that to succeed in this line of business, managers need to be wise, patient and acute to clients needs. In bars and clubs around town, the level of service valet parking provided has become inherent to the venue’s image, an efficient valet parking task force thus contributing to or impeding a location’s popularity. The relationship between venue owners and valet parking services is usually defined by a contract delineating conditions such as insurance or formal attire the valets are required to wear.

When asked about money changing hands between venue managers or owners and valet parking companies in order to be granted the deal, Abu Brahim denied the allegation. “I only pay a rental feel for the venue owner in case I use his parking when one is available,” he said. Nonetheless, Gemayzeh owners have said, without incriminating any company in particular, that they had been approached by valet parking providers who offered a financial compensation against being granted a contract. Some freelancers valet parking in Gemayzeh said that they earn around $2,500 dollars every month, and up to $4,000 dollars during peak season.

Of course, there is the question of accidents. “They happen when cars are involved, although not so frequently if compared to the actual size of the operation. We have had about 11 accidents in an 18 months period and they were covered by the insurance company,” said Abu Brahim, but refused to disclose the amount of the actual coverage.

Although contracts between venue owners and the valet parking services providers are supposed to be binding, they have known to be broken without contestation from the service provider.

“My public relations and marketing approach rests on my name in the market and my credibility as a service provider. I am neither a lord nor the son of a lord,” said Abu Brahim.

Valet parking providers around Beirut run the risks of theft or vandalism perpetrated against their clients’ cars. In order to curb that risk, and avoid complaints or police intervention, valet parking companies have put in place certain security procedures. As Abu Brahim explained, “I have established a system of control, whereby every car picked up from a client is given a number and a card that indicates the name of the person who received the car and parked it as well as the name of the person who dropped it off. This particular system allows a better control on the actual flow of vehicles.”

Besides a team of valets Abu Brahim has one supervisor at every venue and an assistant who controls payments made by clients. A patrol also goes around the different venues and makes sure the operation is running smoothly. “I personally visit all the venues on the weekends starting Thursday during winter, while I am on call all week during summertime,” he added.

According to Abu Brahim, the peak of the season for valet parking services remains the summer, when foreign tourists — mostly from the Gulf — come to Lebanon and Lebanese expatriates flock back to their hometowns. In the various bars and clubs, valet parking rates are about LL5,000 ($3.33) per car. Clients who want to show off their cars at entrance of clubs tend to be generous tippers and among the various nationalities whose cars the valets park, the Lebanese remain the best tippers. “I have one client who pays hundreds of dollars but good tippers tend to pay LL100,000 ($65),” said Abu Brahim.

Location, location, location

The location of venues and bars are indicators of the importance of the valet service. Big clubs such as Sky Bar, White, or Riviera will attract many partygoers and hence generate a handsome return for companies managing their valet parking.

“Managing valet services for a club such as Sky Bar is great, as the venue has all the right elements to be successful: a mix of the right people, the right venue, the proper management and a parking spot that can accommodate enough cars. Verdun is another area that attracts many city dwellers as it is constantly bustling with activity whether during the day or at night, as well as all year round,” Abu Brahim pointed out.

The entrepreneur explained that he has avoided providing valet services in Gemyazeh, one of Beirut’s most popular streets, known for its many bars and old buildings. “There are not enough parking spots in the area and we end up clogging the street and using residents’ parking spots,” he said. He prefers not to provide valet services for a venue that does not have a proper parking lot in the vicinity, which could be used as a last resort when activity is at its peak.

VPS employs a secretary, a human resource manager and accountant, as well as a team of valets, a large number of which are employed permanently. During summer Abu Brahim also employs university students who possess a driving license and have undergone three days training, after which they are hired for $500 a month.

Abu Brahim explains that valet parking is about creating a good atmosphere, saying, “At the end of the day, our company is providing a service and a good one. I make sure that everyone leaving a venue is happy and I do not allow my men to ask clients for payment if they inadvertently forget to tip them. This is not what our company is about.”