Idal company profile 2012

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A presentation highlighting what the official investment promotion agency of Lebanon can do for you.

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Idal company profile 2012

  1. 1. COMPANY PROFILE
  2. 2. HEADLINES 1. ABOUT US 2. OUR CONSULTANCY SERVICES 3. TARGETED SECTORS 4. OUR INCENTIVES 5.OUR ACHIEVEMENTS 6. LEBANON AT A GLANCE 7. CONTACT USIDAL | 2012
  3. 3. ABOUT IDAL 1 THE ESTABLISHED IN 1994 INVESTMENT with the aim of promoting Lebanon as a key investment destination, and attracting, facilitating and retaining investments in DEVELOPMENT the country GOVERNANCE AUTHORITY IDAL reports to the President of the Council of Ministers who exercises a tutorial authority over it. It has financial and OF LEBANON administrative autonomy (IDAL) INVESTMENT LAW NO.360 was enacted in 2001 regulating investment activities in Lebanon THE NATIONAL INVESTMENT IDAL is tasked with 2 Mandates: PROMOTION AGENCY OF LEBANON – Investment Promotion. IDAL is an investment promotion agency which provides investors with a range of incentives and business support services – Export Promotion. IDAL is also entrusted with the active promotion and marketing of Lebanese exports including agricultural and agro-industrial products.IDAL | 2012
  4. 4. OUR MANDATES 2 INVESTMENT PROMOTION EXPORT PROMOTION • Provide economic, commercial and legal • Provide data on external markets information of relevance to investors • Support companies in selected sectors • Identifies business opportunities across in accessing external markets various economic sectors • Provide promotional materials • Provide in depth analysis of sectors • Subsidize participation in foreign fairs • Grant fiscal exemptions and fees reduction to investment projects • IDAL currently has in place 2 export promotion programs: • Facilitate issuance of permits and licenses Agri Plus (2012): Which • Provide on-going support for investment provides subsidies and support to projects exporters of agricultural products • Actively promotes Lebanon as key AGRO MAP (2004): Which investment destination subsidizes the participation of agro food companies in foreign fairs licensesIDAL | 2012
  5. 5. OUR STRUCTURE 3 BOARD OF EXECUTIVE MANAGEMENT DIRECTORS CHAIRMAN AND GENERAL MANAGER STUDIES, INFORMATION FINANCE AND PLANNING, ONE-STOP-SHOP AND PROMOTION ADMINSTRATIVE AND STATISTICS DIRECTORATE (OSS) DIRECTORATE AFFAIRS DIRECTORATE DIRECTORATE Studies, Strategic Marketing Licenses Financial Affairs Planning & Follow-up & Promotion & Incentives Media Post Investment Statistics & Data Legal Affairs & Communication Services Programs Admin & Human Implementation Resources Affairs Secretariat Information TechnologyIDAL | 2012
  6. 6. HEADLINES 1. ABOUT US 2. OUR CONSULTANCY SERVICES 3. TARGETED SECTORS 4. OUR INCENTIVES 5. OUR ACHIEVEMENTS 6. LEBANON AT A GLANCE 7. CONTACT USIDAL | 2012
  7. 7. 1 OUR CONSULTANCY INVESTOR SERVICES IDAL SERVES AS A CONSULTANT TO THE INVESTING COMPANY, WITH EXPERTISE ON THE LOCAL AND REGIONAL MARKET Market Facilitates Business Intelligence issuance of Matchmaking proceduresIDAL | 2012
  8. 8. OUR CONSULTANCY SERVICES 2 Provision of market intelligence (by sector and topic) Introduction to potential partners and suppliers Advising on the financing of the project (including incentives) Matching with potential investors/entrepreneurs 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)IDAL | 2012
  9. 9. OUR CONSULTANCY SERVICES 3 WE CAN PROVIDE YOU WITH A FULL RANGE OF CONSULTANCY SERVICES FOR YOUR INVESTMENT PROJECT Strategy Evaluation Decision and Investment STEPS: Discussion of Meeting with Incentives Follow up Market IDAL Legal Application with PCM* Follow up Intelligence project location, and incentive Advisor and /Evaluation for project on permits Provision schemes financial of Project approval issuance partners Feasibility RELEVANT DIRECTORATES AT IDAL: IDAL Chairman and OSS IDAL and IDAL Sector IDAL Chairman IDAL OSS Chairman Concerned Experts and OSS Authorities Financial Institutions * PCM: Presidency of the Council of MinistersIDAL | 2012
  10. 10. HEADLINES 1. ABOUT US 2. OUR CONSULTANCY SERVICES 3. TARGETED SECTORS 4. OUR INCENTIVES 5. OUR ACHIEVEMENTS 6. LEBANON AT A GLANCE 7. CONTACT USIDAL | 2012
  11. 11. Selected on their readiness & potential for development These sectors were included in Law 360 in 2001 1 EIGHT SECTORS ARE ELIGIBLE FOR OUR INDUSTRY FOOD AND BEVERAGES TOURISM INCENTIVES IDAL PROVIDES INCENTIVES TO EIGHT SECTORS WITH GROWTH POTENTIAL AND READINESS FOR DEVELOPMENT AGRICULTURE INFORMATION TECHNOLOGY TECHNOLOGY TELECOM MEDIAIDAL | 2012
  12. 12. TARGETED SECTORS 2 - Machinery & Equipment - Rubber, Plastics, Non-Metallic Mineral Products, Metals - Chemicals & Pharmaceuticals - Furniture - Textiles and Paper Products INDUSTRY - Hotels - Packaging centers - Leisure Facilities - Manufacturing plants - Healthcare Tourism - Bottling facilities - Cultural & Religious - Business Conferences FOOD AND TOURISM BEVERAGES - Software development - Web solutions - Database and Desktop applications - Mobile applications - E services INFORMATION - Cloud OS TECHNOLOGYIDAL | 2012
  13. 13. TARGETED SECTORS 3 - ICT manufacturing - Electronics - Semiconductors - Medical Technologies - Clean Technologies - Research and Development TECHNOLOGY - Advertising - Packaging Centers - TV Production - Production Facilities - Digital Media - Production Houses AGRICULTURE MEDIA - Telecom Services - Network Solutions - Call Centers TELECOMIDAL | 2012
  14. 14. 4 INVESTOR INVESTOR SUPPORT SERVICES CONSULTANCY Market Intelligence Information SERVICES Economic, commercial and legal information WITH Participating in meetings with potential investors. Financing & Incentives SECTOR Support in finding financial partners for the investment project EXPERTISE Support in incentives application Promoting Lebanon as an OUR INVESTOR SUPPORT SERVICES TEAM ADVISES ON investment location MARKET INTELLIGENCE AND Identification of attractive industries INVESTMENT INCENTIVES. and projects for investors SECTOR TEAMS Food & Beverage Agriculture Industry Media Technology Information Technology TourismIDAL | 2012
  15. 15. HEADLINES 1. ABOUT US 2. OUR CONSULTANCY SERVICES 3. TARGETED SECTORS 4. OUR INCENTIVES 5. OUR ACHIEVEMENTS 6. LEBANON AT A GLANCE 7. CONTACT USIDAL | 2012
  16. 16. OUR INCENTIVES 1 TWO TYPES OF INCENTIVE SCHEMES 1- REGION & SECTOR BASED INCENTIVE 2- JOB CREATION BASED INCENTIVE • Also called Investment Projects by Zone • Also called Package Deal Contract (PDC) (IPZ) incentives incentives • Provided to projects based on: • Provided to projects based on: (1) Geographical location across 3 (1) Investment size Zones: A, B, C (2) Number of jobs created (2) Investment size (3) Sector (3) Sector Incentives Provided Incentives Provided • 100% exemption of Income Tax • Up to 100% tax exemptions for 10 years for • 100 % exemptions on Taxes on Project projects located in remote areas (Zone C) Dividends for up to ten years • Work Permits granted • Up to a 50% reduction on Work and Residence Permit Fees • Up to a 50% reduction on Construction Permit Fees • Full exemption from Land Registration FeesIDAL | 2012
  17. 17. A- REGION AND SECTOR BASED INCENTIVE 2 ZONE A ZONE B 50% income tax exemption for 5 years 100% income tax exemption for 2 years* + work permits granted + work permits granted Minimum Inv. Minimum Inv. Sectors Sectors Size US$ Size US$ Tourism 10,000,000 Tourism 4,000,000 Industry 5,000,000 Industry 3,000,000 Agro-Industry 2,000,000 Agro-Industry 1,500,000 Beirut Agriculture 1,500,000 Agriculture 1,000,000 Technology, ICT Technology, ICT 200,000 200,000 and Media and Media * Provided that 40% of stocks are listed on Beirut Stock Exchange ZONE C 100% income tax exemption for 10 years + work permits granted Minimum Inv. Sectors Size US$ Tourism 1,000,000 Industry 1,000,000 Agro-Industry 1,000,000 Agriculture 500,000 Technology, ICT 200,000 and MediaIDAL | 2012
  18. 18. B- JOB CREATION & SECTOR BASED INCENTIVE 3 Sectors Minimum Inv. Minimum Size US$ Job Creation Tourism 15,000,000 200 Industry 10,000,000 100 Agro-Industry 3,000,000 60 Agriculture 2,000,000 50 Technology, ICT 200,000 25 and MediaIDAL | 2012
  19. 19. B- JOB CREATION & SECTOR BASED INCENTIVE 4 100% ZERO 50% up to Exemption on Income Land Registration Fees Reduction on Construction Tax for up to 10 years Permit Fees Obtaining Work Permits of 50% ALL up to 100% Exemption on Taxes on Project Reduction on Work categories Dividends for up to 10 years and Residence PermitsIDAL | 2012
  20. 20. HEADLINES 1. ABOUT US 2. OUR CONSULTANCY SERVICES 3. TARGETED SECTORS 4. OUR INCENTIVES 5. OUR ACHIEVEMENTS 6. LEBANON AT A GLANCE 7. CONTACT USIDAL | 2012
  21. 21. OUR ACHIEVEMENTS 1 IDAL HAS PLAYED A ROLE IN CHANNELING INVESTMENTS, MEDIATING AROUND 42 INVESTMENTS WORTH USD 1.5 BILLION SINCE 2003, WITH THE TOURISM SECTOR ATTRACTING A LION SHARE (35%) OF INVESTMENTS Investments Attracted Through IDAL Distribution of Projects in million $ by Sectors (%) (2003-2012) (2003-2012) Tourism 80.0% 1,216 Industry 14.0% 212.5 Agriculture Agro-Industry 1.6% 2.4% 23.9 Technology 1.6% 23.6 Media Telecommunications IT IT 1.1% 16.8 4.8% 2.4% 7.1% Media 0.9% 13.9 Technology Tourism Agriculture 0.7% 11.2 7.1% 35.7% Telecom- 0.1% 2.2 Agro-Industry munications 9.5% Industry Note: 31.0% Only 50% of these projects are operational. The remaining are in construction phase Total: USD 1,520,827,114 Total: 42 Note: Technology products include projects which make use of new technology and they include projects in pharmaceuticals industry, bio medicals and electronicsIDAL | 2012
  22. 22. OUR ACHIEVEMENTS 2 ON AVERAGE, IDAL MEDIATES AROUND 5 INVESTMENT PROJECTS PER YEAR, WITH THE NUMBER VERY MUCH DEPENDING ON THE POLITICAL CLIMATE. 5,400 HAVE BEEN CREATED SO FAR BY IDAL SINCE 2003 Number of Projects Attracted Total Jobs Created Through IDAL by IDAL (2003-2012) (2003-2012) Media 2012 5 IT 0.9% 2011 Telecommunications 1.6% Agriculture 4 4 4.1% 0.7% 2010 Technology 2009 1 6.1% 2008 2 2007 6 Agro-Industry 2006 5 8.9% 2005 7 2004 5 2003 3 Industry 16.6% Tourism 61.1% Total: 42 Median = 4IDAL | 2012
  23. 23. OUR ACHIEVEMENTS 3 THE MAJORITY OF INVESTMENTS WERE FROM LEBANESE INVESTORS, WITH 6 FOREIGN AND 10 MIXED COMPANIES BENEFITING FROM IDAL’S INCENTIVES Origin of Companies Benefiting from COMMENTS IDAL’s Incentives (%) (2003-2012) IDAL has mostly attracted domestic companies and not foreign companies Foreign 15% Foreign companies benefiting from IDAL incentives Domestic include: 60% Mixed 25% 1 Swedish company: Ericsson with an investment of USD 1.3 million and generating 300 jobs 2 UAE companies: Habtoor Grand Hotel and Include Lebanese Majority Greenfield Metropolitan City Center: Investment of USD 110 million and foreign investors Investments and 472 jobs created 2 Kuwaiti companies: The Landmark Hotel and NPPC Fresh Produce Factory in the Agriculture sector: Investments of USD 135 million and 291 jobs createdIDAL | 2012
  24. 24. OUR ACHIEVEMENTS 4 THE MAJORITY OF PROJECTS ARE LOCATED IN BEIRUT AND MOUNT LEBANON Distribution of Projects Mediated by IDAL Distribution of Projects Mediated by IDAL by Muhafaza (%) by Muhafaza (2003-2012) in 2011 South Lebanon 2.4% North Lebanon 9.5% Bekaa 14.3% Mount Lebanon 38.1% Beirut 35.7%IDAL | 2012
  25. 25. HEADLINES 1. ABOUT US 2. OUR CONSULTANCY SERVICES 3. TARGETED SECTORS 4. OUR INCENTIVES 5. OUR ACHIEVEMENTS 6. LEBANON AT A GLANCE 7. CONTACT USIDAL | 2012
  26. 26. ATTRACTIVE BUSINESS LOCATION WITH ACCESS TO THE MENA REGION 1 RICH HISTORY AND CULTURE STRATEGIC LOCATIONIDAL | 2012
  27. 27. EXCELLENT ECONOMIC FUNDEMENTALS 2 LIBERAL FINANCIAL ENVIRONMENT BANKING SECRECYIDAL | 2012
  28. 28. COST-COMPETITIVE ENVIRONMENT 3 FREE MARKET ECONOMY FAVORABLE TAXATION AND FISCAL INCENTIVESIDAL | 2012
  29. 29. DYNAMIC WORKFORCE 4 COMPETENT HUMAN CAPITAL AND LOW LABOR COST NON-DISCRIMINATORY LEGAL FRAMEWORKIDAL | 2012
  30. 30. EASY PLACE TO LIVE 5 QUALITY HEALTH CARE AND HIGH EDUCATION HIGH QUALITY OF LIFEIDAL | 2012
  31. 31. HEADLINES 1. ABOUT US 2. OUR CONSULTANCY SERVICES 3. TARGETED SECTORS 4. OUR INCENTIVES 5. OUR ACHIEVEMENTS 6. LEBANON AT A GLANCE 7. CONTACT USIDAL | 2012
  32. 32. CONTACT US Lazarieh Tower, 4th Floor, Emir Bechir Street, Riad El-Solh P.O.Box: 113-7251 INVESTMENT DEVELOPMENT Beirut, Lebanon AUTHORITY OF LEBANON www.idal.com.lb T + 961 (1) 983306/7/8 F + 961 (1) 983302/3 invest@idal.com.lb @Invest_Lebanon in /investmentdevelopmentauthorityoflebanon You /InvestInLebanon TubeIDAL | 2012

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