INDUSTRY
Q- HOW IMPORTANT IS INDUSTRY IN LEBANON ?
A- The importance of Industry can be evaluated from five angles :
a- From the Exports point of view, it is relatively quite important, it represents 75% of the total Exports.
b- From the Economy point of view, it is less important, since it represents 20% of the overall economy.
c- In consideration of its contribution to the Gross Domestic Product, its importance decreases.
It contributes between 10 and 20 percent of the GDP.
d- As to the number of people it employs the number is around 100,000.
e- Finally, its yearly productivity is estimated between four and five Billion US Dollars.
Q- WHAT ARE THE ADVANTAGES OF INDUSTRY IN LEBANON ?
A- There are many reasons to invest in Lebanon because it has :
a- a strategic location with direct access to the markets of the Middle East .
b- a highly educated labor force.
c- a strongly business-minded economy.
d- a multi-cultural lifestyle..
e- a wide range of opportunities for investment in several sectors specifically in industry and agro-industry .
Q- ARE THERE RESTRICTIONS ON MOVEMENT OF AN INDUSTRY’S FOREIGN CURRENCY ?
A- No, Lebanon allows full repatriation of capital, profits and dividends. There are no restrictions on the inflow and outflow of funds .
Q- ARE THERE ANY LAWS RESTRICTING FOREIGN OWNERSHIP IN LEBANON ?
A- No, Lebanon offers a well-developed legal system, which grants Lebanese and non-Lebanese equal rights .
Q- ARE THERE ANY RESTRICTIONS ON FOREIGNERS PLANNING TO ESTABLISH AN INDUSTRY ?
A- Lebanese Law does not differentiate between local and foreign investors, except in land acquisition and, in some cases, there are certain restrictions imposed on foreigners establishing companies in Lebanon .
Q- DOES A FOREIGN INVESTOR NEED A LEBANESE PARTNER ?
A- No, Foreign entities can operate under the same conditions as Lebanese businesses, provided they are registered with the Commercial Registry .
Foreigners can fully own a company, except in the case of a joint-stock company (S.A.L), a holding or an offshore company.
Q- CAN FOREIGN INVESTORS ACQUIRE REAL ESTATE IN LEBANON ?
A- The acquisition by foreigners of real estate property of more than 3,000 square meters in the Lebanese territory, is subject to a prior authorization granted by decree issued by the Council of Ministers upon recommendation of the Minister of Finance .
Q- WHAT IS THE AUTHORIZATION PROCEDURE ?
A- The procedure for securing an authorization is :
a- An application for an authorization is submitted to the Ministry of Finance .
b- The Ministry of Finance refers the application to the Council of Ministers together with a recommendation of approval or rejection.
Q- ARE THERE ANY RESTRICTIONS ON THE EMPLOYMENT OF FOREIGN CITIZENS ?
A- No. All foreigners wishing to work or establish a business in Lebanon require a resident permit and a work permit which are issued from the Ministry of Labor.
Q- ARE THERE DIFFICULTIES IN RECRUITING QUALIFIED WORKFORCE IN LEBANON ?
A- No. Lebanon's workforce is considered among the best educated and trained in the region.
Lebanon's literacy rate is among the highest in the Arab world standing at around 90%.
Lebanon's top-notch universities attracted students from across the Middle East region.
Universities, vocational and technical colleges and high schools are actively involved in offering training partnerships to support the educational needs of businesses.
Q- WHAT IS INVESTMENT DEVELOPMENT LAW 360 ?
A- The Investment Development Law 360 was enacted to regulate investment promotion of domestic and foreign entities in Lebanon.
The Law stipulates a system of incentives, tax and tariff concessions granted to investments in key economic sectors:
industry, agriculture, agro-processing, tourism, information and communication technology (ICT) and media.
Q- WHAT ARE THE GUARANTEES AND PROTECTION PROVIDED FOR FOREIGN INVESTORS ?
A- Foreign investors can be covered against non-commercial risks through a number of organizations mainly:
the National Investment Guarantee Corporation (NIGC) as well as other international organizations – Inter-Arab Investment Guarantee Corporation (IAIGC), COFACE (France), HERMES (Germany), ECGD (UK), OPIC, the Export Import Bank (US) and the Multilateral Investment Guarantee Agency (MIGA).
Q- IS THERE A MECHANISM FOR DISPUTE SETTLEMENT IN LEBANON ?
A- Yes. In 1995, the Chamber of Commerce, Industry and Agriculture of Beirut and Mount Lebanon has created the Lebanese Arbitration Center to settle all disputes of internal and international character by using procedures for arbitration or optional conciliation.
Its statutes are similar to those of the International Chamber of Commerce in Paris. Lebanon has also endorsed the New York Convention of 1958 relating to international arbitration .