Inside This Issue Summer 2015 Newsletter LARP III Mission Member News America Reauthorizes Trade Preferences for Lebanon U.S. Trade Fairs 17 New Members 2 2 Start Up Lebanon in the Big Apple 4 MOU between AmCham Lebanon and The Business Year 8 The American Lebanese Chamber of Commerce, in collaboration with Startup Megaphone, held Lebanon’s first startup conference in New York City on May 21, 2015 at The Plaza Hotel, followed by a gala dinner at the Rainbow Room of the Rockefeller Center. Start Up Lebanon is the first event of its kind in the USA, a one-day meeting of entrepreneurial minds, harnessing Lebanon’s talent and that of the Lebanese abroad. Major players in the country’s startup ecosystem, Lebanese diaspora, and international investors, came together to share and connect, get inspired, and gain insight into Lebanon’s increasingly significant role as a thriving international startup hub. In addition to the participation of key entrepreneurs, investors, stakeholders from Lebanon’s startup ecosystem, as well as the Lebanese diaspora, Start Up Lebanon featured international investors keen on participating in thriving emerging markets and growth stage startups looking to establish themselves in the MENA region. The Start Up Lebanon conference was sponsored by Fransabank and supported by International College (IC). The day kicked off with an Opening Ceremony headlined by U.S. Deputy Assistant Secretary Lawrence R. Silverman. In his opening speech, Deputy Assistant Secretary Lawrence R. Silverman reassured the attendees that the United States would remain by the side of Lebanon in these times of economic distress. For him, cultural and economic strength along with job creation is of paramount importance to Lebanon’s stability. Continued on P.7 13
Transcript
This issue is sponsored by Hilton Hotels
Inside This Issue
Summer 2015 Newsletter
LARP III Mission
Member News
America Reauthorizes Trade Preferences for Lebanon
U.S. Trade Fairs
17
New Members2
2
Start Up Lebanon in the Big Apple
4
MOU between AmCham Lebanon and The Business Year8
The American Lebanese Chamber of Commerce, in collaboration with Startup Megaphone, held Lebanon’s first startup conference in New York City on May 21, 2015 at The Plaza Hotel, followed by a gala dinner at the Rainbow Room of the Rockefeller Center.
Start Up Lebanon is the first event of its kind in the USA, a one-day meeting of entrepreneurial minds, harnessing Lebanon’s talent and that of the Lebanese abroad. Major players in the country’s startup ecosystem, Lebanese diaspora, and international investors, came together to share and connect, get inspired, and gain insight into Lebanon’s increasingly significant role as a thriving international startup hub.
In addition to the participation of key entrepreneurs,
investors, stakeholders from Lebanon’s startup ecosystem, as well as the Lebanese diaspora, Start Up Lebanon featured international investors keen on participating in thriving emerging markets and growth stage startups looking to establish themselves in the MENA region.
The Start Up Lebanon conference was sponsored by Fransabank and supported by International College (IC). The day kicked off with an Opening Ceremony headlined by U.S. Deputy Assistant Secretary Lawrence R. Silverman. In his opening speech, Deputy Assistant Secretary Lawrence R. Silverman reassured the attendees that the United States would remain by the side of Lebanon in these times of economic distress. For him, cultural and economic strength along with job creation is of paramount importance to Lebanon’s stability.
Continued on P.7
13
Summer 20152
New Member American Lebanese Chamber of CommerceDirector Paola ChakhtouraAddress 1153 Foch Street Beirut Central DistrictP.O. Box 175093 Beirut, LebanonPhone/ Fax +961 1 985330-1Web www.amcham.org.lbE-mail [email protected]
Board of Directors and Officers
Salim J. Zeenni ChairmanMaher Y. Beydoun VP for Public RelationsArslan M. Sinno VP for MembershipRichard A. Haykel VP for International AffairsWalid T. Assaf TreasurerNadim Kassar Secretary GeneralRabah Jaber Board MemberCarol Chammas Kareh Board MemberNadim Romanos Board MemberHani Raad Board MemberBarbara Batlouni Board MemberGaby Tamer Board MemberFady Khayat Board MemberElissar Farah Antonios Board MemberJean Riachi Board MemberBana Akkad Azhari Board MemberFadi Saab Board Member
Toni AzziGeneral ManagerLogicom Me salTel: +961 1 694 039www.logicom.net
Logicom Middle East was incorporated in July 2000 and is a wholly owned subsidiary of Logicom Ltd. The company is based in Beirut, and covers the entire Lebanese market. The company is continuously reinforcing and expanding its authorized reseller network in Lebanon, as well as its portfolio of vendors. Logicom’s product portfolio includes Intel, Cisco Systems, HP, Microsoft, Autodesk, Adobe, Citrix, SanDisk, Legrand, Western Digital, Kingston Technology, APC, NetApp, In Win, and Linksys. Logicom Middle East’s mission is to market high quality IT products in an efficient and effective manner while providing exceptional customer service and support.
Member News
Librex Ritello International Conference – Sharm El Sheikh
Ritello Distributors from over 20 countries convened at the magnificent Grand Rotana Resort & Spa in Sharm-El-Sheikh for the semi-annual Librex Conference from April 27 – May 1, 2015. This semi-annual convention is the biggest event that distributors and their guests can attend, and is hosted by Librex for 5 days of spectacular moments.
In addition, a two day business session was held to inspire and educate, with some first-time attendees given the opportunity to take the stage and speak directly from the heart about their latest achievements. During this event, top achievers were rewarded by the Librex Board of Directors
and returned home with some valuable prizes. The 5- day conference concluded with a gala dinner, at which top distributors were awarded and newly joined distributors were recognized.
Summer 20153
Citi Lebanon Volunteers in the Prevention of Forest Fires
Citi celebrates Global Community Day every year. This event is now a decade long tradition and a wonderful opportunity for Citi employees, friends and family to come together to help improve the communities where they live and work.
This year, as we celebrate Global Community Day’s 10th anniversary, more than 50 Citi Volunteers from Lebanon, including staff, alumni and family members, worked with the Bentael Natural Reserve’s team to help prevent the frequency and intensity of forest fires. Given that grass fires are a major concern for firefighters in early spring as they get quickly out of control
and can cause serious damage to forested lands, Citi Lebanon team worked collaboratively in an effort to protect the Natural Reserve in Bentael from future wildfire risk by de-grassing the dry grounds and road sides. Their volunteer work was concluded by planting a tree in the name of Citi in the natural reserve site.
“The dedication and passion demonstrated by Citi Lebanon Volunteers increased preparedness, reduced forest fire risk and raised awareness to a new level. Forest fires threaten people needlessly, kill wildlife and destroy agricultural and forested lands,” stated Elissar Farah Antonios, Chief Executive Officer for Citibank N.A. Lebanon.
AMIDEAST Launches Skills for Success ®
As part of its women employability programs, AMIDEAST offered its first Skills for Success class in Lebanon. With support from PepsiCo and the AMIDEAST/Lebanon Advisory Board, the first cohort started the daily intensive training program in Beirut this month with 18 participants who will graduate in September. The program was launched in Jordan and Morocco last year, and will also be offered in Egypt and Tunisia, benefitting 90 women in each country during its first phase.
The curriculum consists of 320 hours of training in computer skills, English language, professional skills and job search strategies. Upon graduation, participants will receive a certificate of completion of the course, which is designed to provide unemployed women with specific skills valued in today’s job market to help them enter the labor force.
AMIDEAST is currently receiving applications for other Skills for Success classes that it plans to launch in Tripoli, Tyre, the Chouf, and Jounieh.
AMCHAM members and member companies which are interested in participating in this program are welcome to contact AMIDEAST. Areas of collaboration can include serving as guest speakers, helping to connect unemployed women with this program, and providing practical internships or job opportunities for graduates.
On March 26, 2015, at an event at the Spanish Embassy, HE Ambassador Milagros Hernando, on behalf of His Majesty King Felipe VI of Spain, bestowed on Mr. Nassif Naim Saleh, CEO of Saleh Shipping, the Senior Decoration Officer Cross of the Civil Merit Order. In attendance was a large gathering of friends, diplomats and members of the military of both countries.
In her remarks, the Ambassador highlighted the more than ten years of Saleh Shipping’s outstanding logistics support provided to the
regular Spanish Navy ship calls at Beirut and for the Spanish Armed Forces operating in Lebanon. The Company has long served prime Western navies.
In his long term capacity of ship and chandler agent for the Italian navy, Nassif Naïm Saleh was previously bestowed the Knighthood of the Order of the Italian Star (Stella d’Italia) by Ambassador Giuseppe Morabito on behalf of the Italian President Giorgio Napolitano, in December 2013 on board the Italian Navy destroyer Andrea Doria.
Listing for International Buyer Program (IBP) 2015http://export.gov/static/2015%20IBP%20TradeShow%20Flyer_Latest_eg_main_076522.pdf
Event Location From ToWEFTEC®Water Environment Federation TechnicalExhibition and Conference 2015PACK EXPO Las Vegas 2015 Las Vegas, NV 28/10/2015 30/10/2015ASIS 2015 International 61st Annual Seminar and Exhibits Anaheim, CA 28/10/2015 30/10/2015Greater New York Dental Meeting New York, NY 27/11/2015 2/12/2015POWER-GEN®International Las Vegas, NV 8/12/2015 10/12/2015
Managing Postsurgical Pain at Albert Haykel Hospital
By Dr. Lise Abi Rafeh – Kheir, Anesthesiologist and critical care specialist at Haykel Hospital
Postsurgical pain is a common phenomenon and has a significant effect on patient outcomes and health care costs. A majority of patients experience acute pain (moderate to extreme) after surgery that continues after discharge from the hospital. Undermanaged postsurgical pain has broad implications for clinical care, such as longer hospital lengths of stay, a higher rate of complications (cardiovascular, pulmonary, renal and psychological), increased risk for chronic pain syndromes, and decreased patient satisfaction.
Preoperative and postsurgical regional anesthesia uses local anesthetics to augment pain control while avoiding adverse effects associated with opioids. It consists of injecting a local anesthetic near a cluster of nerves to numb only the area of the body that requires surgery. This technique is not new but wasn’t very popular because it relied on “blind” techniques and the need for multiple trial and error needle passes, with their lack of accuracy, reliability, longer placement times as well as patient discomfort and injury.
The use of ultrasound techniques represents one of the largest changes that the field of regional anesthesia has seen. The operator is now able to view the target nerve directly, guide the needle, navigate away from sensitive anatomy and monitor the spread of local anesthetic. With its improved safety and efficacy, decreased
complications, superior analgesia and cost-effectiveness, ultrasound guidance is becoming the gold standard for regional anesthesia.
The Albert Haykel hospital acquired a portable ultrasound device in 2014. The anesthesiologist is able to perform epidural, spinal or extremity nerve blocks and catheters (with sedation or general anesthesia) for a wide variety of surgical procedures:
• Gastrointestinal: colon resections and surgeries of the stomach, intestines, or liver• Gynecology: hysterectomy, pelvic procedures, C-sections• Orthopedics: limb surgeries• Urology: procedures of kidneys, prostate, or bladder
Each type of block has its own risks and benefits; it should be executed by a well-trained and expert anesthesiologist and be carefully considered and discussed with the patient each time an anesthetic plan is chosen for a particular procedure.
Summer 20156
YOU INSURE YOUR COMPANYFROM THE WALLS TO THE CEILINGS.
BUT WHAT ABOUT ITS PILLARS?
Enroll the key persons at your company in our new Life Insurance Plans.
Losing a key employee is a major problem to any company. That’s why Banque Libano-Française, in partnership with Bancassurance SAL,
launched the Key Man Insurance Plan, which covers any subsequent financial losses incurred
and ensures that the core foundations of your business remain intact.
banking sector, a thriving free economy and a robust private sector, a comprehensive macroeconomic vision would “rejuvenate” the economy and help achieve its potential. He sees that through private equity, venture capital and technical assistance, Innovation Driven Enterprises (IDEs) will receive financing, create jobs, support entrepreneurship and reverse the brain drain.
Salim Zeenni, Chairman of the American Lebanese Chamber of Commerce, opened his speech with an inspiring statement: “For those who haven’t had the chance yet, today you will witness what potential and aptitude the Lebanese people possess, especially the youth and up-and-coming entrepreneurs…”. He explained that this conference was designed to bring together seasoned entrepreneurs, investors, and experts to share experiences, insights and techniques as, “…this economic shift to the intangible resource, which is ideas, is inevitable and we need to accept the change and ride the wave now.”
Former Minister of Finance Jihad Azour gave a brief presentation on the entrepreneurial potential of Lebanon. He considered Lebanon a forming ground of entrepreneurs in the MENA region with large rates of entrepreneurial activity, reputable education and an opportunity driven mentality. Although startups still face many barriers, adopting strategic thrusts, such as developing a conducive business environment and national infrastructure, would surely make them a key engine of the Lebanese economy.
Governor Riad Salameh spoke about Lebanon’s future and startup ecosystem over video. He asserted that Lebanon’s future would rely on the financial sector, oil and gas, and the knowledge economy. These industries will serve as a booster to the traditional economic sectors,
creating employment for the youth. He reminded the attendees that Circular 331 provides a 100% guarantee to investments in accelerators and up to 75% to the 3% equity investment of banks in startups. So far, $200 million have been deployed in the Lebanese economy since the launch of Circular 331, three funds have been created, and investments started to roll into individual accelerators and startups. He also revealed that the Central Bank is working on an Electronic Stock Exchange Market for startups wishing to exit through IPOs.
To view the full video of the Opening Ceremony, please click here.
Success Stories
Start Up Lebanon debuted with videos of two success stories: Shahiya with Hala Labaki and Diwanee with Herve Cuviliez.
Shahiya is the largest digital Arabic cookbook for Arab recipes. Its story starts with three cofounder friends who saw an opportunity in the digital Arabic scene in 2008. “Why not?” answered Labaki when asked about setting up shop in Lebanon after building a career in Europe. She dubbed the typical Lebanese concerns, such as lack of internet, infrastructure, stability etc., as “clichés.” With the right team, determination and thinking, she was certain she could overcome these challenges. And she did! In November 2014, Netsila, the Lebanese company which owns Shahiya, was acquired by Cookpad, Japan’s leading recipe site, for $13.5 million, making the company a success story in the Arab World.
The digital platform was self-funded for two and a half years before taking out a Kafalat loan. In 2012, the founders turned to VCs and got a Series A from MEVP. Labaki explained how getting
funded back then was difficult. However, she points out that Circular 331 is changing the dynamics of the ecosystem and giving hope for young entrepreneurs.
Diwanee is a digital media company which creates and distributes content through its Arabic sites. Herve Cuvillez, Co-founder and CEO of Diwanee, recalls how after participating in a conference in 2007, he realized there was an opportunity not to be missed in the digital Arab scene: 300 million people spoke Arabic, mostly young, 5% of internet users were Arab, 25% of the content was Arabic and only 1% of ad expenditure was in digital. For him, the numbers did not add up and. “This gap [was] going to catch up.” In 2008, the cofounders chose Beirut over Dubai for their HQ: Lebanon had talent and is less costly. Fast forward five years, Diwanee expanded to 85 employees in Lebanon, 20 in Dubai and 40 in Serbia to solve their technology challenge.
Cuviliez further explained how they structured the company to remain operational at all times: everything is cloud based, and everyone’s plugged into their own laptop. Tables, electricity and a DSL connection are all they need. Despite major hiccups in their funding journey and near bankruptcies, Diwanee announced in 2014 that a majority stake was acquired by Webedia, a Paris-based digital publishing company. While the terms of the deal are undisclosed, it is estimated that around $12.75 million was invested for a 51% equity stake. For Lebanese entrepreneurs abroad, Cuviliez says, “Don’t look at the past; despite all the problems in Lebanon, there’s a good story coming out [of here].”
To view Hala Labaki’s story, please click here.To view Herve Cuviliez’s story, please click here.
The first panel of the conference, Startups in Lebanon, discussed the journey of Lebanese entrepreneurs who managed to startup and scale their businesses from Lebanon. Panelists included:• Jamil Corbani (Green Studios)• Hassane Slaiby (Roadie)• Youmna Chamcham (LiveLoveBeirut)• Tarek Fadel (Fadel)• Jonathan Giesen (TransTerra Media)• Rabih Nassar (Scriptr.io) as moderator
Why Lebanon?Great education, vast talent pool and proper work ethics were Tarek Fadel’s drive to start his business in Lebanon.
For Hassane, there are many tools at hand now that make the world “one small office,” so there’s no reason for him not to operate from Lebanon.
Jonathan added that the cost structure in the country makes it an ideal location to establish a company.As for Jamil, the geopolitical problems in Lebanon are never a hurdle to the knowledge economy, instability is rather a kickstarter for creativity.
When it came to market reach, all the panelists disclosed that they managed to surpass the Lebanese and MENA borders, reaching the European and American markets easily.
How did you get funded?Fadel was self-funded until 2014 when they reached out to Lebanese VCs and got funding from MEVP. Tarek acknowledged that he was surprised by the level of expertise and activity of the Lebanese ecosystem.
For Slaiby, Lebanese investors were more skeptical than the international ones. He managed to raise capital in the Valley faster; however, he insists that with Circular 331, this will change.
Green Studios was also self-funded until the team took out a subsidized Kafalat loan. Corbani admitted that at the moment, they are negotiating a significant funding round thanks to the implementation of 331. Ironically, while based in NYC, Transterra Media couldn’t get funded. After relocating to Cairo, they were surprised to find support from Lebanon. However, Live Love Beirut bootstrapped its start until they found angel investors in an exhibition in Los Angeles, USA.
To view the full video, please click here.
Investing in Emerging Markets
Keith Teare from Archimedes lab and cofounder of Techcrunch moderated the panel, which included big names from the industry:• Michael Lints (Golden Gate Ventures)• Parker Thompson (500 Startups)• Christina Bechhold (Samsung Global Innovation Center)• Mike Prasad (VentureLab)
The panel covered three main topics.
As the Valley becomes a unicorn hunting ecosystem, are emerging markets on an investor’s radar, and if yes, why? Prasad explained that emerging markets allow unicorns to happen because of the major shift in the market: development of infrastructure, new consumer base etc. He sees more unicorns emerging in the next 5 years outside of the US. Thompson supported the claim stating that a startup cannot become a unicorn without going overseas and most of the US-based companies, such as Uber, have a substantial presence in emerging markets. He considers Middle Eastern entrepreneurs as talented and undervalued, explaining that most of the problems that are associated with the MENA, like liquidity and
long term outcome, are not actual problems. 500 Startups wants to seize this opportunity before anyone else realizes it.
Is the location of a startup important?Panelists agreed that location does not matter as long as there is mobility and access to networks. Two factors were also essential for Thompson: the availability of talent and the supportiveness of the legal framework.
What is more important to investors, traction or vision? Would they invest in an idea before traction, or is traction crucial to the decision?There was consensus among the panelists that vision beats traction. For most of them, what an entrepreneur has learned, what he has executed so far, and how he thinks are the determining factors. Teare elaborated on the idea of vision: starting a company is like writing a book and you can’t go to a publisher without an end and a plot. For him, an entrepreneur cannot focus on the operational aspect and forget about his vision when reaching investors. Lints added that the founding team also plays a major role in an investor’s decision: he looks for a team to marry for the next 7 to 10 years.
To view the full video, please click here. Lebanon’s Startup Ecosystem
The most heated panel of Start Up Lebanon was moderated by Tamara Zakharia (SETT) and included key players in Lebanon’s Ecosystem:
• Henri Asseily (LEAP Ventures)• Rabih Khoury (MEVP)• Yasser Akkaoui (Executive Magazine)• Paris de L’Etraz (IE Business School)• Jeanette Cajide (LISA)
The panel started with a discussion about the capital injection of Circular 331. For Akkaoui, capital brings risk mitigation and efficiency.
However, putting aside the size of Lebanon, Asseily explained that $400 million is not enough: when companies need to grow they require the same amount of money as anywhere else. He also touched on the subject of risk, insisting that more money meant startups can afford mistakes.
When the discussion moved to the subject of valuation, a clash spurred between MEVP and LEAP ventures: as a financier, Khoury was concerned about over valuing the companies and not being able to achieve returns. For him a VC’s dream is unlimited deal flow at zero valuation. However, Asseily strongly opposed the statement, insisting that adding value to a company is what VCs should try to achieve.
Khoury faced new opposition when insisting that early stage funding does not pay out and it certainly does not help startups exit. Jeannette argued that to be truly innovative, you have to take risk: losing $15 million to make $1 billion. “Absolutely not!” responded Khoury. De l’Etraz took the stage to explain the role of academia in making people comfortable with uncertainty, a trait that Lebanese strongly possess. He also explained that entrepreneurship cannot be created and does not grow out of need, but rather grows from an existing business and commercial sense.
For Lebanon’s future, Asseily stressed on the need for private investor and taxpayer money in the ecosystem. Akkaoui added that Lebanon hasn’t exhausted yet the potential of LLCs that allow risk to happen. He would like to see the ecosystem move from compliance-based to performance-based.
To view the full video, please click here.
Networking Sessions
Attendees had the opportunity to meet the speakers during the breakfast and coffee breaks. Participants also rubbed elbows with investors and entrepreneurs over a seated lunch in the Centennial Foyer.
Lebanese Diaspora
The highlight of the event was the Lebanese Diaspora panel. It showcased top tier Lebanese entrepreneurs who established their startups and succeeded abroad. Panelists included:
• Ayah Bdeir, Founder & CEO of littleBits• Ramzi Rizk, Co-Founder & CTO of EyeEm• Mohamad El Rafei, Co-Founder & CEO of Hiperpool• Zahi Karam, Principal Data Scientist at Bluecore• Philippe Kalaf, Co-Founder & CEO of Collabora• Chafic Kazoun, Co-founder and Chairman of B-Line MedicalThe moderator was Samer Karam, Chairman & General Manager of Startup Megaphone. The main topic of the panel was the struggle of starting up a company. Ramzi Rizk explained how many underestimate the difficulty of raising capital and the changes it brings with it: more people have stakes in the company, more pressure to turn profitable and new responsibilities. Ayah Bdeir agreed, stating that the investors and VCs should support the entrepreneurs and not the other way around. Making money and exiting fast is great for investors but not for building an ecosystem, explained Philippe Kalaf. Chafic Kazoun elaborated on that thought, saying that when he wanted to start his career in Lebanon, he felt like he didn’t belong and the entrepreneurial community did not exist.
Ayah Bdeir also stressed on the importance of seed rounds in funding: investing in an established company is a no-brainer she claimed; however, investing in a person with an idea should be the focus of investors. Nevertheless, she said that she
is truly seeing changes in the Lebanese startup scene since she tried to start littleBits in Lebanon.
On a different note, for Philippe Kalaf, the world is shifting to a new globalized culture and Lebanon should take part in it. For him, the diaspora is an ambassador for Lebanon in this new international movement and giving back to Lebanon is by showing the Lebanese at home that they can succeed globally.
The session ended with the panelists agreeing on the lack of education in the work environment of startups, the reason why many leave Lebanon. They pledged to give back and teach the young entrepreneurs that work with them.
To view the full video, please click here.
Open Mic
In an unprecedented move, Start Up Lebanon gave the floor to the attendees in an Open Mic session. Startups got to pitch, investors shared their insights, and seasoned entrepreneurs dished out do’s-and-dont’s for the up and coming.
Below are the participants who took part in the Open Mic session:
• Keith Teare, Archimedes Lab• Mike Prasad, ventureLab• David Munir Nabti, Altcity• Hassane Slaiby, Band Industries• Chafic Kazoun, B-Line Medical• Philippe Kalaf, Collabora• Daniel Tomb, Economena• Tarek Fadel, Fadel• Youmna Chamcham, Live Love Beirut• Rabih Khoury, MEVP• Karim Attiyeh, Paribus• Walid Singer, Presella• Rabih Nassar, Scriptr
• Danny Abla, Shoop• Zeina Saab, The Nawaya Network• Alessio Bortone, Uk Lebanon Tech Hub• Richard Fallah, vbout• Rosalynn Ghubril, Zawarib• Abdallah Absi, Zooma
To view the full video, please click here. Gala Dinner
In the evening, the American Lebanese Chamber of Commerce hosted a glamorous gala dinner at the newly renovated Rainbow Room at the top of the iconic Rockefeller Center, with the support of its main partner Bank Audi. Guests enjoyed a delicious dinner, live entertainment and a spectacular view of New York City. Depurty Assistant Secretary Silverman made a toast and gave a few remarks about the success of the conference. He was followed by Assistant Speaker of the New York State Assembly Felix Ortiz, who took the floor to deliver a keynote speech, and who then offered AmCham Lebanon a certificate of appreciation for its efforts to bridge the relationship between the United States and Lebanon, and improve the economy and ecosystem in Lebanon and the MENA region.
The Executive Committees of the Lebanese American Renaissance Partnership (LARP) in the USA and in Lebanon, in collaboration with the American Lebanese Chamber of Commerce (AmCham Lebanon), held a third LARP Mission on June 26, 2015, at the Phoenicia Hotel in Beirut, which included a conference, lunch, and later that evening a gala dinner at the Eau De Vie restaurant.
LARP III Mission
LARP led a Lebanese American business delegation from the Americas in its third trip to Lebanon to increase communication between Lebanese American businesses and the homeland; facilitate business opportunities between the businesses in Lebanon and their counterparts in the Americas; and to assist the private and public sectors to foster projects that help stimulate economic growth and provide possible grants to
Summer 201513
help institutions of the Lebanese government and non-profit organizations. This third mission raised funds and offered a new national uniform for the firefighter volunteers of the Lebanese Civil Defense. Ten volunteers were present at the conference showcasing their new suits.
The conference included more than 15 distinguished speakers from the business community, the US government, and Lebanese officials, who tackled issues related to the environment, technology and infrastructure. Several local and international dignitaries attended the conference and spoke on four different panels:
• Environment in Lebanon: Responsibility and Improvement• Technology in Lebanon: A Comprehensive Analysis• Infrastructure: Electricity, Water, Roads, Rails• Gas and Oil: Who Benefits?
The keynote speaker was Congressman Nick Rahal at the opening panel and gala dinner, where he was offered the “Lifetime Achievement Award.”
LARP is committed to supporting the civil society and civic institutions of Lebanon, lifting up the spirit of the Lebanese people, promoting economic growth, and fostering peace, stability, neutrality and democratic institutions in Lebanon in an effort to enhance the sovereignty, independence and freedom of the Republic of Lebanon.
Summer 201514
MOU between AmCham Lebanon and The Business Year
A leading research firm and publisher of annual economic resources on national economies, The Business Year (TBY), signed a research partnership agreement with the American Lebanese Chamber of Commerce (AmCham) to collaborate on the realization of The Business Year: Lebanon 2015. AmCham, is an official non-profit organization focused on developing business and trade relations between Lebanon and the United States, and portraying Lebanon as an attractive investment destination, so this collaboration with TBY helps to further its mission.
The Memorandum of Understanding (MoU), agreed upon by AmCham Chairman Mr. Salim Zeenni and TBY Country Manager Doina Gutu aims to deliver accurate information about the investment climate in Lebanon, and promote the country as an investment destination.
Following the success of the 2012, 2013 and 2014 editions, The Business Year: Lebanon 2015 will cover all major sectors of the economy and serve as a platform for further analysis on specific topics, such as the importance of the banking sector in the Lebanese economy, Lebanese brands succeeding abroad, privatization of country’s telecoms sector, as well as Beirut’s potential as a health tourism destination. Besides providing readers with factual information about the investment climate in the country, The Business Year: Lebanon 2015 will also familiarize its audience with the country’s legal and tax regulations.
With more than 120 exclusive interviews and an estimated circulation of approximately 12,000 physical copies, The Business Year: Lebanon is the most comprehensive publication in English on the Lebanese economy to date, and an important tool for international investors seeking opportunities in the region.
About TBY:Present in over 25 countries, TBY provides first-hand access to the people and ideas shaping business and policy throughout the world. Each country-specific edition contains a comprehensive range of interviews and analysis, offering an inside look at doing business in the world’s most dynamic economies. The interviews are structured around specific chapters and cover the main sectors of the economy, while sector reviews and focus articles provide the reader with vital facts and figures, highlighting specific projects, investments, as well as current and future opportunities. Publications conclude with an executive guide providing the reader with accurate information about legal and tax frameworks. TBY’s interviewees, readers, and partners comprise an international network of thought-leaders helping to define the future of the global economy. In addition to widely circulated digital versions available on iPad, iPhone, and Android applications, physical copies reach out to over 97,700 subscribers worldwide.
TBY Speaks with Salim Zeenni, Chairman of the American Lebanese Chamber of Commerce
An industrialist by profession, Salim Zeenni runs a plant in the north of Lebanon for the manufacturing, packaging, and distribution of consumer care and food industry products to the Middle East, Europe, and North America. He is an active member of the business community, and in addition to his role at the American Lebanese Chamber of Commerce, he is a member of the Association of Lebanese Industrialists, Vice-President of the Chemical Industries Syndicate, and member of the Executive Committee of the Children’s Cancer Center in Lebanon.
Summer 201515
What is the role of the American Lebanese Chamber of Commerce within the Lebanese economy?One of the major goals of the American Lebanese Chamber of Commerce is to impact the relationship between Lebanon and the US, which has been a historical relationship, going back 200 years when the first Lebanese emigrants went to the United States. Thanks to this, Lebanon and the United States have many common values like freedom of speech, transit, religion, and the movement of money. Between 1979 and 1992 we had a disruption in this relationship, but we cannot survive without having good relations with a country like the United States. The relationship has improved our economy because at a certain moment trade with the US was at a very low level. Thanks to joint efforts between our Chamber, various associations, and the respective embassies here and in the US, we were able to multiply trade by ten over a period of a few years. At a certain point the US became Lebanon’s number one partner. This year things changed a little bit, but still it is one of the top trading partners.
What trends do you identify in US-Lebanese trade activities?Consuming America is always a trend, everywhere in the world really. While nothing dramatic has changed, the exchange rate between the euro and the dollar has had an impact. The dollar was becoming very strong versus the euro. This would automatically encourage certain fields of imports from Europe versus the US. Nevertheless, we have a dollarized economy in Lebanon, so we are very comfortable about this level of exchange.
What trends have you witnessed in terms of companies applying for membership in the last years?We have always kept a steady number of companies who join the chamber. Most of them are the major corporations operating in Lebanon, either Lebanese or American companies, representing all key sectors of the economy. In fact, there hasn’t been much change in the structure of our membership.
What is your outlook for US-Lebanese trade levels in the medium term?The outlook is very good; in fact I just returned from the US where AmCham and Startup Megaphone held the first Start Up Lebanon conference in New York city. This is the future of the economy, especially in countries like Lebanon. Definitely any development of this sector would be towards the United States because this is the biggest market in the world for start-ups. We had a very interesting and successful trip there. We took approximately 40 start-ups from Lebanon, introduced them to major players in the US, and it was very impressive to see the level of interest in Lebanon. We had around 250 people the whole day during the conference. All start-ups had the chance to meet with major investors, funds, and VC’s. We are very optimistic about the next period.
What is your assessment of the overall business environment in Lebanon, and where, in particular, can new reforms be implemented in order to facilitate the country’s further economic growth?The competition is the strongest from the Gulf region. Dubai, Abu Dhabi, and Qatar are developing so quickly and, unfortunately, the political problems in Lebanon affect our ability to compete with these markets. But, at the same time, the business environment in Lebanon is not only about investing in the infrastructure and telecommunications, it is also about the Lebanese way of life. To be in Lebanon, you need good internet connection and ICT, which are now available. We had some hiccups over the years but we are now in a steady period. The only challenge we still have is to attract more international companies so that the investor in Lebanon will be better exposed to the global market —this is a major advantage the Gulf states have over us.
In terms of reforms, there is a lot to do. The major thing we should focus on is the public sector: to refurbishing the infrastructure, developing the ICT sector, pushing for privatization, investing in the facilities that would attract investors, and building new airports. The capital market is also very important because to invest in a company you need an exit strategy and you can’t have an exit strategy
Summer 201516
if you don’t have a capital market. Laws have to be changed or amended concerning investments and exit strategies in Lebanon, and intellectual property protection laws, in particular, need tougher enforcement.
What efforts are being made to attract investment to regions outside of the greater Beirut area?You cannot build a country by just concentrating all your investment in the capital—developing rural areas is also crucial. For example, we took the Lebanese start-ups to the US, keeping in mind that they would have their head offices in Beirut as well as in the rural areas in Lebanon. That is why developing ICT all over Lebanon will create new jobs. Not only does agriculture anchor people to their villages, ICT keeps them there because they no longer need to be in the center of the city to do certain things.
What sectors of the Lebanese economy are in the highest need of FDI and what are Lebanon’s advantages as an investment destination?
Energy. Energy is very important for Lebanon because it is a way out from the burden of debt. Unfortunately, I don’t see it in the near future. The next thing that should be done besides developing the ICT sector is investing in the Lebanese people through the educational system—not only the private education system. The public education system was very good before 1975, now it is almost non-existent. A good public educational system will enable the Lebanese people to have the chance to be a part of this development. What are AmCham’s main objectives for the year ahead?Our main objective is and has always been to strengthen the relationship between Lebanon and the United States. We believe that such a strong relationship is beneficial for both countries. We will continue with our mission through the many different initiatives and projects aimed at promoting Lebanon’s business environment and exporting it to the US, such as the booming Startup scene that we are supporting. Putting Lebanon on the global map is at the top of our priorities.
America Reauthorizes Trade Preferences for Lebanon
Ambassador David Hale and Minister for Economy and Trade Dr. Alain Hakim met on July 22nd 2015 to discuss their continued cooperation to strengthen the Lebanese-American economic relationship. Ambassador Hale highlighted the recent reauthorization of the U.S. Generalized System of Preferences (GSP) program, which strengthens commercial ties and promotes economic growth and stability in Lebanon by granting Lebanese products a competitive advantage in the U.S. market.
The long-standing GSP program provides preferential duty-free entry to the United States for eligible products from Lebanon and 121 other beneficiary countries and territories. Although the program lapsed in 2013, the recent law reauthorizes the GSP through 2017 and also made GSP benefits retroactive, which will allow U.S. Customs and Border Protection (CBP) to refund duties paid on eligible GSP products during the
lapse. Lebanon is a major beneficiary of GSP, with the opportunity to export approximately 3,500 products to the United States duty-free under the GSP program.
Below are Ambassador Hale’s remarks as delivered during the event.
“Good morning and thank you all for being here today. Minister Hakim, it is a pleasure to be back at the Ministry of Economy and Trade. Over the years, this Ministry and the Embassy have enjoyed a strong partnership, working together to encourage increased commercial ties between Lebanon and America. Today, I would like to thank Minister Hakim in particular for continuing this tradition and his efforts to promote a strong economic relationship between our countries.
Summer 201517
The Minister and I just concluded a productive meeting on ways to continue to strengthen Lebanese-American economic ties. In particular, we discussed an important American program that President Obama recently signed into law – a program that will directly benefit Lebanon.
Late last month, President Obama signed a law reauthorizing the Generalized System of Preferences – or GSP as we call it. The GSP program is designed to promote economic growth by providing preferential duty-free entry to the United States for eligible products from Lebanon. Although the program lapsed in 2013, the recent law reauthorizes the GSP through 2017 and also made GSP benefits retroactive. This will allow U.S. Customs and Border Protection (CBP) to refund duties paid on eligible GSP products during the lapse to Lebanese exporters.
Now, let me explain exactly how this program works, and how it will boost economic growth in Lebanon. The GSP program allows select nations, including Lebanon, to export their products to America without paying duties and customs. For example, if a Lebanese exporter and a non-GSP exporter both send a case of olive oil to the United States, the Lebanese exporter will not pay duties, but the other firm will. This gives Lebanese products a competitive advantage in the American market. The result is simple: lower duties increase exports, boosting economic growth.
Nearly all Lebanese exports to the United States fall under the GSP program, meaning they can be exported to the United States duty-free. For example, in 2012, the last full year of the
program before the lapse, 96 percent of Lebanese exports to the United States were eligible to enter our market without duties. Millions of dollars of Lebanese products – jewelry, clothing, vegetables, nuts, olive oil, even hummus – will again enjoy an advantage over competitors in accessing the American market. Just as Lebanese companies will benefit from GSP, Americans will directly benefit as well, since they can buy all the wonderful things Lebanon produces at reduced cost. I am pleased to be here today to highlight this latest sign of America’s commitment to Lebanon, to its people, and to its private sector. In addition to GSP, we will continue to offer programs and events to promote business relations between our two countries – from leading Lebanese business delegations to the United States to hosting commercial events in Lebanon. Economic partnership has been a cornerstone of the Lebanese-American relationship from the beginning. We look forward to continuing our work together to bring economic growth and opportunity to both our nations.
I think many Lebanese are aware of the high level of security assistance that we are proud to provide to Lebanon’s army and security services. But stability in Lebanon isn’t just about the military. America also seeks to advance a healthy, stable society here through economic development. Whether it is the $134 million we are providing to Lebanon’s education sector, or today’s initiative to provide you access to American markets, we are very committed to supporting Lebanon’s civilian sector and economic prosperity. Our activities in this regard may be less known than our military aid, but they are every bit as important.”
THE NEW AMCHAM LEBANON WEBSITE IS UP AND RUNNING!
WWW.AMCHAM.ORG.LB
Members will all receive a username and password to access the directory.
