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IDAL's Investments 2016

MANAGED PROJECTS Are planned investments by foreign or local companies that involve at least one visit to IDAL as part of their consulting process 

 

Over the course of 2016, the “One Stop Shop” directorate has been in contact with more than 48 investors (slightly better than in 2015) that approached IDAL to benefit from its various support schemes including its fiscal incentives. The majority of those investors (42 investors) were Lebanese and only 6 foreign investors (3 British, 1 Emirati, 1 Kuwaiti and 1 Yemeni).

77% of the reviewed projects were eligible for IDAL’s incentives, with the remaining not meeting IDAL’s requirements in terms of investment size and number of jobs created.

In terms of the of the distribution of projects by sector, the Industry sector and Agro-Food grasped the highest share with around 40% and 23% respectively, followed by the Tourism (15%).

  

DISTRIBUTION OF ALL PROJECTS REVIEWED BY IDAL BY SECTOR IN 2016 (% share)

DISTRIBUTION OF ALL PROJECTS REVIEWED BY IDAL BY SECTOR IN 2015 (%share)

Source: IDAL's computation

 

With the increasing demand for Lebanese Industrial and Agro-food products, an increase in investment in those two promising sector was noted during the last three years, with the majority of investments  in the Agro-food sector concentrated in  processed food and beverages including meat, jams, chips, wine and beer. The latter sub-sector has experienced a significant growth amidst the massive influx of population and its potential to offer specialized exports. In fact, local production of processed meat has been rapidly increasing to keep up with the rising influx of Syrian refugees. Exports of conserved jams have also been increasing (CAGR of 23% since 2013) mainly to Saudi Arabia, Kuwait and United Arab Emirates thus boosting local production. As for dairy production, the latter also saw an increase in factories meeting shortage in production and an ongoing dependence on international markets. 

 

DISTRIBUTION OF AGRO-FOOD PROJECTS BY SUB-SECTOR IN 2016 (% share)

DISTRIBUTION OF AGRO-FOOD PROJECTS BY SUB-SECTOR IN 2016 (% share)

Source: IDAL's computation

 

In terms of investments in the industrial sector, more than 9 new investments were made mostly in Machinery and Equipment mostly explained by the increasingly dependent by Arab countries on Lebanese products to meet their industrial needs.

 

DISTRIBUTION OFINDUSTRIAL PROJECTS BY SUB-SECTOR IN 2016 (% share)

DISTRIBUTION OF INDUSTRIAL PROJECTS BY SUB-SECTOR IN 2016 (% share)

Source: IDAL's computation

 

In terms of types of projects, 71% of these investments were Greenfield (New) projects, while the remaining 29% were expansions.

 

DISTRIBUTION OF PROJECTS BY TYPE IN 2016 (% share)

DISTRIBUTION OF PROJECTS BY TYPE IN 2016 (%share)

Source: IDAL's computation

 

As for the geographical distribution of the projects, Mount Lebanon had the highest share in 2016 (48%) with industrial zones and competitive labour force available for investors. As for the Bekaa, the percentage of projects in this region increased from 12% in 2015 to 19% in 2016. The remaining projects were distributed between Beirut (12%), North Lebanon (11%) and South Lebanon (10%).

 

DISTRIBUTION OF PROJECTS BY REGION IN 2016 (%share)

DISTRIBUTION OF PROJECTS BY REGION IN 2016 (%share)

Source: IDAL's computation

 
 

PROJECTS PROCESSED BY IDALAre projects which are processed by IDAL’s board as deemed eligible for IDAL’s incentives


In 2016, out of the 37 eligible projects, IDAL has processed 11 investment projects which applied to the “One Stop Shop” directorate in order to benefit from the various incentives and business support services. There are two incentives schemes that investors can choose from and which differ in the extent of exemptions provided and in the eligibility criteria:

  • Investment Project by Zone (IPZ) scheme that requires IDAL’s Board and Presidency of the Council of Ministers approvals
  • Package Deal Contract (PDC) scheme that requires IDAL’s Board, the Presidency of the Council of Ministers  and Council of Ministers approvals

 

In 2016, three projects were granted IDAL’s incentives package. One of these projects, Hawa Chicken – Broiled Produced and Distributed Company SAL  brownfield project, has undergone the required process and received the approval of IDAL’s Board of Directors, the Council of Ministers and the Presidency of the Council of Ministers to benefit from IDAL’s investment incentives schemes. The approved project is valued at USD 52,600,000 and it is expected to generate around 309 direct jobs when implemented. In addition, two other projects were granted IDAL’s incentives after following the same process : Roasting & Food Processing Plant “AlRifai” project, valued at USD 4,562,063 and expected to create around 97 direct jobs when implemented and HTTP SAL project, valued at USD 275,000 and expected to create 33 direct jobs when implemented.

 

In addition to these three projects, 11 other projects  are still in the pipeline. For more information please click here.

For more information on completed projects by sector, please click here.

Get in Touch
Lazarieh Tower, 4th Floor, Emir Bechir Street, Riad El-Solh Beirut, Lebanon, P.O.Box 113-7251
Phone
+961 1 983306 / 7 / 8
Fax
+961 1 983302 /3
IDAL SERVICES AND INCENTIVES GUIDE 2016