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Ksa Presentation Transcript

  • 1. Lebanon and Saudi Arabia Investment Climate in Light of Current Conditions Saudi – Lebanese Forum March 1st and 2nd, 2012 Beirut, Lebanon
  • 2. Headlines 1. IMPACT OF ARAB SPRING ON LEBANON AND SAUDI ARABIA 2. SAUDI ARABIA: ONE OF THE MAJOR INVESTORS IN LEBANON 3. WHY IS LEBANON INTERESTING TO SAUDI ARABIA 4. ECONOMIC SECTORS OF INTEREST 5. ABOUT IDAL 6. CONTACT US
  • 3. Headlines 1. IMPACT OF ARAB SPRING ON LEBANON AND SAUDI ARABIA 2. SAUDI ARABIA: ONE OF THE MAJOR INVESTORS IN LEBANON 3. WHY IS LEBANON INTERESTING TO SAUDI ARABIA 4. ECONOMIC SECTORS OF INTEREST 5. ABOUT IDAL 6. CONTACT US
  • 4. Real GDP Growth decreased sharply for almost all MENA region countries. Saudi Arabia was one of the very few countries to escape that trend… Real GDP Growth Rates in Selected MENA Countries (2010-2011)Source: International Monetary Fund
  • 5. In relative terms, Lebanon and Saudi Arabia were however one of the less impacted countries by the turmoil… Turmoil Economic Impact Indices on Real Economy (by Country) Severe Impact Syria 5 Libya 5 Tunisia 4 Egypt 4 Iraq 3 Bahrain 3 Lebanon 2 Jordan 2 Qatar 0 KSA 0 UAE 0 No ImpactSource: Bank Audi’s Group Research Department
  • 6. Headlines 1. IMPACT OF ARAB SPRING ON LEBANON AND SAUDI ARABIA 2. SAUDI ARABIA: ONE OF THE MAJOR INVESTORS IN LEBANON 3. WHY IS LEBANON INTERESTING TO SAUDI ARABIA 4. ECONOMIC SECTORS OF INTEREST 5. ABOUT IDAL 6. CONTACT US
  • 7. Significant trade activity between Lebanon and Saudi Arabia (cont’d) Top 3 Arab Countries of Exports From Lebanon Top 3 Arab Countries of Imports to Lebanon (2011) (2011) Total Exports to KSA Total Imports from KSA US$ 307.9 million US$ 531.6 millionSource: Lebanese Customs
  • 8. Coupled with significant Investment activity between Lebanon and Saudi Arabia (cont’d) Distribution of Saudi Projects in Lebanon by Sector Major Investments from Saudi Arabia between (2004-2012) 2004-2012 Year of Company Name Industry/Sector Establishement Cheikh Saleh Kamel Trade/Investment 2004 Nesco / Nesco Group for Hotel Investments Tourism 2004 Ste Méditerranéenne Des Grands Hôtels Tourism 2004 Zamil Industry/Sector 2004 Dallah al Baraka / Albaraka banking group Banking 2005 Gulf Finance Investment Company Tourism 2005 Al Tuwairqi Group Industry 2007 Saudi Cables for Marketing Industry 2009 Information Technology National Technology Group / DirectFN 2010 (IT) National Technology Group / DirectFN Services/Trade 2010 Frinsinyeh Saudi Arabia Industry 2010 Saudi Globe Med for Medical Forms ICT 2011 Oger Liban SAL Construction - Saudi National Commercial Bank Banking - Movenpick Hotel Tourism - Summerland Kempinski Hotel Tourism - Rotana Media - Four Seasons Hotel Tourism -Source: Ministry of Economy and Trade
  • 9. Saudi Arabia’s Investments in the region • KSA is looking into investing in Sudans agriculture sector with large cereal Sudan crops to be exported back to the Kingdom. • KSA has been highly involved in the Turkish market with more than 170 Turkey Saudi companies currently operating in Turkey within the following sectors: textiles, food, banking trade, real estate, transportation and tourism. • KSA has built several strong ties with Egypt over the years. It is currently Egypt investing in their agricultural, industrial, IT, financial and touristic sectors. • India is a new market that KSA has grown interest in. It has looked for India business opportunities within the oil & gas, power, construction, fertilizers and tourism sectors. • KSA is conducting several projects within the petrochemical sector as well Jordan as the information technology sector. Lebanon • Tourism, Real Estate, Healthcare, IT, Banking.
  • 10. Headlines 1. IMPACT OF ARAB SPRING ON LEBANON AND SAUDI ARABIA 2. SAUDI ARABIA: ONE OF THE MAJOR INVESTORS IN LEBANON 3. WHY IS LEBANON INTERESTING TO SAUDI ARABIA 4. ECONOMIC SECTORS OF INTEREST 5. ABOUT IDAL 6. CONTACT US
  • 11. The Lebanese economy encompasses keybusiness drivers of FDI… Favorable Investment Environment: Resilient Banking Sector: Corporate Tax Rate (%) Soundness of Banks Rankings (2009) (2010) Source: Countries website Source: World Competitiveness Report
  • 12. And a highly diversified Economy… GDP Diversification of Selected Countries Least Diversified -Sources: Source: Saudi Arabia Central Department of Statistics; Statistics Singapore; Ireland CSO; Statistics Norway; Statistics Canada; Taiwan DGBAS; AbuDhabi Statistical Yearbook; IMF World Economic Outlook 2006; Booz Allen Analysis
  • 13. Headlines 1. IMPACT OF ARAB SPRING ON LEBANON AND SAUDI ARABIA 2. SAUDI ARABIA: ONE OF THE MAJOR INVESTORS IN LEBANON 3. WHY IS LEBANON INTERESTING TO SAUDI ARABIA 4. ECONOMIC SECTORS OF INTEREST 5. ABOUT IDAL 6. CONTACT US
  • 14. Economic Sectors with Growth Potential INDUSTRY AGRO INDUSTRY TOURISM AGRICULTURE IT TECHNOLOGY TELECOM MEDIA Sectors included in Investment Law No.360 (*)(*) Sectors selected for their growth potential and their readiness for development
  • 15. Agriculture: Important Export Potential  The country is endowed with the highest proportion of agricultural land in the Middle East.  Abundant water resources allow for intense agricultural activity  Agricultural areas cover around 26% of the Lebanese territory (nearly equivalent to 2770 km2)  Agricultural production contributes to around 4.8 % of GDP POTENTIAL INVESTMENTS IN:  It employs roughly 10% of the Lebanese labor force, and is the fourth largest Farms: Fisheries &Animal employer in the country Packaging & Storage Centers  Key Agricultural products include: Fruits mainly citrus, apples, bananas and grapes, but also significantly olivesSources: Syndicate of Agro Food Sector // Central Administration of Statistics
  • 16. 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 POTENTIAL INVESTMENTS IN:  Exports of agro-food products equal to 10.9% of total industrial exports Manufacturing plants Bottling facilities  Exports growth at 13% annually since 2001 (despite decline in industrial sector exports)Sources: Syndicate of Agro Food Sector // Central Administration of Statistics
  • 17. 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 (*) POTENTIAL INVESTMENTS IN:  7 billion USD of revenues generated by tourism (20% of country’s GDP) Hotels and Leisure Facilities Healthcare Tourism  40% growth in tourists arrival Cultural and Religious Tourism Business Conferences(*) WTTC: World Travel & Tourism Council
  • 18. 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) POTENTIAL INVESTMENTS IN:  Mobile penetration rates are in fact among the highest in the region and Software have totaled 68% by end of 2010 Hardware Internet Software Providers  Big potential in business-related Telecommunication applications and web development as well as software developmentSource: Business Monitor International
  • 19. 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: POTENTIAL INVESTMENTS IN: Advertising • Online Advertising (e.g. Yahoo buying Maktoob) TV Production • Online Gaming Digital Media • Online Advertising Production Houses • Specialized 3D Animation
  • 20. Healthcare Tourism: A Niche Market Skilled and specialized medical staff with 130 yrs of top quality medical experience Healthy climate with environmental diversity Sector size estimated by 1.2 billion USD with a 30% growth More than 15,000 doctors and 270 Hospitals POTENTIAL INVESTMENTS IN: Hotels, Furnished Apartments & New opportunities in healthcare tourism Villas with medical services including: • Centers for Alternative Medicine SPAs and Beauty Centers • SPAs and Beauty Centres Gyms and Medical Sport Centers • Specialized physical rehabilitation Nutrition Centers centers Health Care • Specialized treatment centers Tourism Park
  • 21. Headlines 1. IMPACT OF ARAB SPRING ON LEBANON AND SAUDI ARABIA 2. SAUDI ARABIA: ONE OF THE MAJOR INVESTORS IN LEBANON 3. WHY IS LEBANON INTERESTING TO SAUDI ARABIA 4. ECONOMICSECTORS OF INTEREST 5. ABOUT IDAL 6. CONTACT US
  • 22. About IDALTHE 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 (who 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
  • 23. IDAL has 3 tools to support investors Tools Available to IDAL Though Law No.360 MARKET INTELLIGENCE PACKAGE OF INCENTIVES ONE STOP SHOP  Fiscal incentives: Market Intelligence: Exemptions from corporate  IDAL as One Stop Shop for income tax generated by Investors Information on investment opportunities the investment project  IDAL to supersede all across economic sectors  Financial incentives: Fees public administrations, Reductions on Operational authorities and Data on economic cost: municipalities in issuing sectors with growth administrative permits potential  Non-Financial Incentives: and licenses except those Data on investment Employees for the project granted by the Council of climate are granted work permits Ministers with the support of IDAL Pre-Investment Financing stage Licensing stage stage
  • 24. Headlines 1. IMPACT OF ARAB SPRING ON LEBANON AND SAUDI ARABIA 2. SAUDI ARABIA: ONE OF THE MAJOR INVESTORS IN LEBANON 3. WHY IS LEBANON INTERESTING TO SAUDI ARABIA 4. ECONOMIC SECTORS OF INTEREST 5. ABOUT IDAL 6. CONTACT US
  • 25. Contact UsTHE INVESTMENT DEVELOPMENT AUTHORITY OF LEBANON(IDAL)Lazarieh Tower // 4th Floor // Emir Bechir StreetRiad El Solh // P.O.Box 113-7251Beirut // LEBANONT + 961 (1) 983306/7/8F + 961 (1) 983302/3E invest@idal.com.lbW http://www.idal.com.lb @Invest_Lebanon