Investment Development Authority of Lebanon Arab Spanish Investment Forum 2011

Transcription

1 Investment Development Authority of Lebanon Arab Spanish Investment Forum 2011 Wednesday October 26 th

2 Headlines 1. ABOUT LEBANON 2. CURRENT TRENDS IN SPANISH LEBANESE TRADE 3. SPANISH COMPANIES AND LEBANON 4. INVESTMENT OPPORTUNITIES IN LEBANON 5. HOW IDAL CAN HELP 6. CONTACT US

3 1. ABOUT LEBANON 2. CURRENT TRENDS IN SPANISH LEBANESE TRADE 3. SPANISH COMPANIES AND LEBANON 4. INVESTMENT OPPORTUNITIES IN LEBANON 5. HOW IDAL CAN HELP 6. CONTACT US

4 An Attractive Business Location With Easy Access To The MENA Region Strategic Location 1 Rich History & Culture 10 2 Free market economy High Quality of Life 9 3 Liberal Financial Environment Quality Health Care & High Education 8 4 Banking Secrecy Competent Human Capital & Low Labor Cost Favorable Taxation & Fiscal Incentives Non-Discriminatory Legal Framework

5 Having One of the Lowest Corporate Tax Rates in the World Corporate Tax Rate (%) (2009) Syria Japan France Jorda Tunisia UK Greece Turkey Egypt Jorda Ireland Cyprus 33% 33% 30% 30% 25% 24% 20% 20% 17% 15% 15% 13% 10% 40% 45% Source: Countries website

6 And One of the Soundest Banking Systems in the World Rank Soundness of Banks (World Ranking, 2010) 1st 2nd 3rd 4th 5th 6th 7th 8th 9th Source: Global Competitiveness Report ( )

7 Registering a Stellar Economic Performance Amidst the Turbulence Real GDP Growth Rates ( ) (in %) Worldwide Financial Crisis Lebanon Emerging & Developing Economies Middle East North Africa Advanced Economies Source: International Monetary Fund, World Economic Outlook Database, April 2010

8 Recording Continuous Positive Investment Trends FDI Inflow to Lebanon ( ) (in USD billions) CAGR 15% Source: UNCTAD

9 One of the Largest Recipients of FDI in the Region FDI Inflows to MENA Region (2010) (in USD billions) KSA 28.1 Egypt Qatar Lebanon UAE Algeria Jordan Morocco Syria Kuwait Source: UNCTAD / World Investment Report (WIR) 2010

10 And Having One of the Best Educated Workforce in the Region Number of Higher Education Students per 10,000 Inhabitants (2010) Education Capability Index Selected Regional countries (2010) USA 5339 Lebanon 80 Korea 4974 Jordan 57 Argentina 3117 Tunisia 57 Lebanon 2712 Qatar 55 Turkey Egypt Syria Qatar Saudi Tunisia Algeria Morocco UAE Kuwait Egypt Bahrain Saudi UAE 801 Algeria 20.6 Source: PWC; EducationDev Representing CEO satisfaction based on: * current quality of educational system * adequate skills acquired by students upon graduating * ability of system to meet future market requirements

11 1. ABOUT LEBANON 2. CURRENT TRENDS IN SPANISH LEBANESE TRADE 3. SPANISH COMPANIES AND LEBANON 4. INVESTMENT OPPORTUNITIES IN LEBANON 5. HOW IDAL CAN HELP 6. CONTACT US

12 Lebanon Has Enforced Numerous Bilateral Trade Agreements 52 agreements for the Promotion and Protection of Investments Including one with the Kingdom of Spain Enforced as Law N. 632 In O.G N.21 of May 8, conventions for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion on Taxes from Income and Capital Multilateral investment-related agreements with: >> European Free Trade Association (EFTA) >> Euro-Mediterranean Partnership >> Greater Arab Free Trade Area (GAFTA) >> Gulf Cooperation Council >> Multilateral Investment Guarantee Agency (World Bank Group) >> United Nations Commission on International Trade Law Lebanon is a member of multiple international organizations and has applied for WTO membership Source: Ministry of Finance

13 And Spain is a Privileged Trade Partner of Lebanon Spain Trade Balance with Lebanon (in USD millions, 2011) Imports from Lebanon Exports to Lebanon 10 0 With the hope of recording increased Spanish imports from Lebanon Source: SpainBusiness

14 With a Diverse Range of Sector Products Being Traded Between Both Countries Fashion Spanish Exports to Lebanon Environment and energy Industrial technology Chemical industry Animal products 39.7 million USD 27.6 million USD 23.6 million USD 19.8 million USD 16.1 million USD Spanish Imports from Lebanon Chemical products Raw materials Construction industry Industrial technology Fashion 13.5 million USD 8.5 million USD 1.3 million USD 0.87 million 0.84 million Source: SpainBusiness

15 1. ABOUT LEBANON 2. CURRENT TRENDS IN SPANISH LEBANESE TRADE 3. SPANISH COMPANIES AND LEBANON 4. INVESTMENT OPPORTUNITIES IN LEBANON 5. HOW IDAL CAN HELP 6. CONTACT US

16 Spanish Commercial Activity with Lebanon Features the Following Companies: CONSTRUCTION / TRANSPORT HEALTH EQUIPMENT BEAUTY PRODUCTS AGRO INDUSTRY FINANCE

17 Famous Spanish Brands Available in the Lebanese Market Include:

18 1. ABOUT LEBANON 2. CURRENT TRENDS IN SPANISH LEBANESE TRADE 3. SPANISH COMPANIES AND LEBANON 4. INVESTMENT OPPORTUNITIES IN LEBANON 5. HOW IDAL CAN HELP 6. CONTACT US

19 Economic Sectors with Growth Potential AGRICULTURE AGRO INDUSTRY INDUSTRY IT MEDIA TECHNOLOGY TELECOM TOURISM Sectors included in Investment Law No.360 (*) (*) Sectors selected for their growth potential and their readiness for development

20 Investment Opportunities Agriculture Packaging Centers Production Facilities Agro Industry Manufacturing Plants Bottling Facilities Industry Machinery and Equipment Rubber, Plastics, Non- Metallic Mineral Products and Metals Chemicals & Pharmaceuticals Furniture, Textiles and Paper Products Information Technology Software and Hardware Internet Software Providers Telecommunication

21 Investment Opportunities Media Advertising TV Production Digital Media Production Houses Technology Electronics High Tech Manufacturing and Semi Conductors Software for Telecom Equipment Telecommunication Hardware Equipment Software Tourism Hotels and Leisure Facilities Healthcare Tourism Cultural and Religious Tourism Business Conferences

22 Agro Industry: Important Export Potential A major contributor to the Lebanese economy Generated around 32.5% of the industrial sector output in 2009 Has significant employment potential with 23.3% of the industrial sector workforce (30,760 workers) Accounts for 20% of industrial establishments in Lebanon Exports of agro-food products equal to 10.9% of total industrial exports Exports growth at 13% annually since 2001 (despite decline in industrial sector exports) POTENTIAL INVESTMENTS IN: Manufacturing plants Bottling facilities Sources: Syndicate of Agro Food Sector // Central Administration of Statistics

23 ICT: Sizeable Potential In Business Applications Estimated size: 287 million USD (2010) Forecasted to grow by around 11.8% (based on estimates) Employs around 7,000 people Over 20% of Lebanese companies are involved in the IT sector (either in hardware, software or as internet service providers) Mobile penetration rates are in fact among the highest in the region and have totaled 68% by end of 2010 Big potential in business-related applications and web development as well as software development POTENTIAL INVESTMENTS IN: Software Hardware Internet Software Providers Telecommunication Source: Business Monitor International

24 Media: A New Growing Market Home to one of the most significant media industries in the Middle East Advertising expenditure is expected to record growth rates of 8.4% over the next 3 years Total advertising expenditure constitutes 2.8% of the national GDP New opportunities in digital media including: Online Advertising (e.g. Yahoo buying Maktoob) Online Gaming Online Advertising Specialized 3D Animation POTENTIAL INVESTMENTS IN: Advertising TV Production Digital Media Production Houses

25 Tourism: Highest Generator of Revenues Directly accounts for 8% of Lebanese GDP but indirectly to around 34% of the national GDP (because of the indirect effect on the economy) Capital investments in this sector have amounted to 1.2 billion USD in 2010 (10.2% of total investments) and are expected to rise by 6.2% per annum according to the WTTC (*) 7 billion USD of revenues generated by tourism (20% of country s GDP) 40% growth in tourists arrival POTENTIAL INVESTMENTS IN: Hotels and Leisure Facilities Healthcare Tourism Cultural and Religious Tourism Business Conferences (*) WTTC: World Travel & Tourism Council

26 1. ABOUT LEBANON 2. CURRENT TRENDS IN SPANISH LEBANESE TRADE 3. SPANISH COMPANIES AND LEBANON 4. INVESTMENT OPPORTUNITIES IN LEBANON 5. HOW IDAL CAN HELP 6. CONTACT US

27 About IDAL THE INVESTMENT DEVELOPMENT AUTHORITY OF LEBANON (IDAL) The National Investment Promotion Agency of Lebanon History Established in 1994 with the aim of promoting Lebanon as a key investment destination and attracting, facilitating & retaining investments in the country Governance IDAL reports to the Presidency of the Council of Ministers (which exercises a tutorial authority over it) and has financial and administrative autonomy Legislature Investment Law No. 360 was enacted in 2001 to regulate investment activities in Lebanon

28 Our Consultancy Services IDAL serves as a consultant to the investing company with expertise provided on both the local and regional markets Market Intelligence INVESTOR (National & Foreign) Facilitates issuance of procedures Business Matchmaking Consultancy Services: Provision of market intelligence (by sector and topic) Introduction to potential partners and suppliers Advising on the financing of the project (including incentives) Assistance in applying for incentives Assistance in coordinating with licensing authorities to facilitate the issuance of licenses and permits (to set-up and operate a business)

29 Our Two Mandates 1 2 INVESTMENT PROMOTION EXPORT PROMOTION Actively promote Lebanon to foreign investors Provide economic, commercial and legal information of relevance to investors Identify business opportunities across various economic sectors Grant fiscal exemptions and fees reduction to investment projects Facilitate issuance of permits and licenses Provide on-going support for investment projects Provide data on external markets Support companies in selected sectors in accessing external markets Provide promotional materials Subsidize participation in foreign fairs Two export promotion programs: Export Plus (2001): providing subsidies to exporters of agricultural products Agro Map (2004): subsidizing the participation of agro food companies in foreign fairs

30 Our Incentives 1 REGION & SECTOR BASED 2 INCENTIVES Also called Investment Project by Zone (IPZ) incentives JOB CREATION & SECTOR BASED INCENTIVES Also called Package Deal Contract (PDC) incentives Incentives granted to projects which meet the following criteria: (1) Sector (2) Investment size (3) Geographical location across three zones: A, B, C A contract between the investor and the Lebanese Government, represented by IDAL, whereby an investor is granted incentives, exemptions and reduction when meeting the following criteria: (1) Sector (2) Investment size (3) Number of jobs created

31 1 Region & Sector-Based Incentives Sectors Minimum Inv. Size US$ Sectors Minimum Inv. Size US$ Tourism 10,000,000 Tourism 1,000,000 Industry 5,000,000 C Industry 1,000,000 Agro-Industry 2,000,000 Agro-Industry 1,000,000 Agriculture 1,500,000 Technology, ICT & Media 200,000 Beirut A B Agriculture 500,000 Technology, ICT & Media 200,000 ZONE A 100% income tax exemption for 2 years (*) + Work permits granted (*) Provided that 40% of stocks are listed on the Beirut Stock Exchange C ZONE B 50% income tax exemption for 5 years + Work permits granted ZONE C 100% income tax exemption for 10 years Work permits granted Sectors Minimum Inv. Size US$ Tourism 4,000,000 Industry 3,000,000 Agro-Industry 1,500,000 Agriculture 1,000,000 Technology, ICT & Media 200,000 +

32 2 Job Creation & Sector-Based Incentives Sectors Minimum Inv. Size US$ Minimum Job Created Tourism 15,000, Industry 10,000, Agro-Industry 3,000, Agriculture 2,000, Technology, ICT and Media 400, % Exemption on Income Tax for up to 10 years % Exemption on Taxes on Project Dividends for up to 10 years ZERO Land Registration Fees Up to 50% Reduction on Work & Residence Permits Up to 50% Reduction on Construction Permit Fees Obtaining Work Permits of all categories

33 Source: IDAL Major Investments Mediated by IDAL

34 1. ABOUT LEBANON 2. CURRENT TRENDS IN SPANISH LEBANESE TRADE 3. SPANISH COMPANIES AND LEBANON 4. INVESTMENT OPPORTUNITIES IN LEBANON 5. HOW IDAL CAN HELP 6. CONTACT US

35 The Investment Development Authority of Lebanon Lazarieh Tower - 4th Floor - Emir Bechir Street Riad El Solh - P.O.Box Beirut - LEBANON T (1) /7/8 F (1) /3 E invest@idal.com.lb W LOOKING FORWARD TO HEAR FROM YOU SOON