Idal company profile 2012

COMPANY PROFILE

HEADLINES1. ABOUT US

2. OUR CONSULTANCY SERVICES

3. TARGETED SECTORS

4. OUR INCENTIVES

5.OUR ACHIEVEMENTS

6. LEBANON AT A GLANCE

7. CONTACT US

IDAL | 2012

IDAL | 2012

ABOUT IDAL

ESTABLISHED IN 1994 with the aim of promoting Lebanon as a key investment destination, and attracting, facilitating and retaining investments in the country

GOVERNANCEIDAL reports to the President of the Council of Ministers who exercises a tutorial authority over it. It has financial and administrative autonomy

INVESTMENT LAW NO.360 was enacted in 2001 regulating investment activities in Lebanon IDAL is tasked with 2 Mandates:

– 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.

THEINVESTMENT

DEVELOPMENTAUTHORITY

OF LEBANON(IDAL)

THE NATIONAL INVESTMENTPROMOTION AGENCY OF LEBANON

1

IDAL | 2012

INVESTMENT PROMOTION

• Provide economic, commercial and legal information of relevance to investors

• Identifies business opportunities across various economic sectors

• Provide in depth analysis of sectors

• Grant fiscal exemptions and fees reduction to investment projects

• Facilitate issuance of permits and licenses

• Provide on-going support for investment projects

• Actively promotes Lebanon as key investment destination

EXPORT PROMOTION

• Provide data on external markets

• Support companies in selected sectors in accessing external markets

• Provide promotional materials

• Subsidize participation in foreign fairs

• IDAL currently has in place 2 export promotion programs:

Agri Plus (2012): Which provides subsidies and support to exporters of agricultural products

AGRO MAP (2004): Which subsidizes the participation of agro food companies in foreign fairs licenses

OUR MANDATES 2

OUR STRUCTURE 3

EXECUTIVE MANAGEMENTCHAIRMAN AND GENERAL MANAGER

STUDIES,PLANNING,

AND STATISTICSDIRECTORATE

Studies, StrategicPlanning & Follow-up

Marketing & Promotion

Licenses & Incentives

Financial Affairs

Statistics & DataMedia

& CommunicationPost Investment

ServicesLegal Affairs

Programs Implementation

Admin & HumanResources Affairs

Secretariat

Information Technology

INFORMATIONAND PROMOTION

DIRECTORATE

ONE-STOP-SHOPDIRECTORATE (OSS)

FINANCE ANDADMINSTRATIVE

AFFAIRS DIRECTORATE

BOARD OFDIRECTORS

IDAL | 2012



3. TARGETED SECTORS

4. OUR INCENTIVES

5. OUR ACHIEVEMENTS


7. CONTACT US

IDAL | 2012

IDAL | 2012

OURCONSULTANCY

SERVICESINVESTOR

Market Intelligence

Facilitatesissuance ofprocedures

BusinessMatchmaking

1

IDAL SERVES AS A CONSULTANT TO THE INVESTING COMPANY, WITH EXPERTISE ON THE LOCAL

AND REGIONAL MARKET

2 OUR CONSULTANCY SERVICES

IDAL | 2012

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

3 OUR CONSULTANCY SERVICES

* PCM: Presidency of the Council of Ministers

STEPS:

WE CAN PROVIDE YOU WITH A FULL RANGE OF CONSULTANCY SERVICES FOR YOUR INVESTMENT PROJECT

RELEVANT DIRECTORATES AT IDAL:

Strategy Evaluation Decision and Investment

Discussion ofproject location,and incentiveschemes

MarketIntelligenceProvision

Meeting withIDAL Legal Advisor andfinancial partners

IncentivesApplication/Evaluationof ProjectFeasibility

Follow upwith PCM*for projectapproval

Follow upon permitsissuance

IDAL SectorExperts

IDAL Chairmanand OSS

IDAL Chairmanand OSS

Financial Institutions

IDAL OSS ChairmanIDAL and

Concerned Authorities



3. TARGETED SECTORS

4. OUR INCENTIVES

5. OUR ACHIEVEMENTS


7. CONTACT US

IDAL | 2012

IDAL | 2012

EIGHTSECTORS

ARE ELIGIBLEFOR OUR

INCENTIVESIDAL PROVIDES INCENTIVES TO EIGHT SECTORS WITH GROWTH POTENTIAL AND READINESS FOR

DEVELOPMENT

Selected on their readiness & potential for developmentThese sectors were included in Law 360 in 2001

TECHNOLOGY

TELECOM

TOURISM

INFORMATIONTECHNOLOGY

FOOD ANDBEVERAGES

AGRICULTURE

INDUSTRY

MEDIA

1

IDAL | 2012

TOURISM

INFORMATIONTECHNOLOGY

FOOD ANDBEVERAGES

INDUSTRY

2TARGETED SECTORS

- Machinery & Equipment- Rubber, Plastics, Non-Metallic Mineral Products, Metals - Chemicals & Pharmaceuticals - Furniture - Textiles and Paper Products

- Packaging centers- Manufacturing plants- Bottling facilities

- Software development- Web solutions- Database and Desktop applications- Mobile applications- E services- Cloud OS

- Hotels- Leisure Facilities - Healthcare Tourism- Cultural & Religious- Business Conferences

3TARGETED SECTORS

AGRICULTURE

- ICT manufacturing- Electronics- Semiconductors- Medical Technologies- Clean Technologies- Research and Development

- Packaging Centers- Production Facilities

TECHNOLOGY

- Advertising - TV Production - Digital Media - Production Houses

- Telecom Services- Network Solutions- Call Centers

MEDIA

TELECOM

IDAL | 2012

4INVESTOR

CONSULTANCYSERVICES

WITHSECTOR

EXPERTISE

INVESTOR SUPPORT SERVICES

SECTOR TEAMS

Market Intelligence InformationEconomic, commercial and legal information Participating in meetings with potential investors.

Financing & IncentivesSupport in finding financial partnersfor the investment project Support in incentives application

Promoting Lebanon as aninvestment locationIdentification of attractive industriesand projects for investors

Food & BeverageIndustryTechnology

AgricultureMediaInformation Technology

Tourism

OUR INVESTOR SUPPORT SERVICES TEAM ADVISES ON MARKET INTELLIGENCE AND

INVESTMENT INCENTIVES.

IDAL | 2012



3. TARGETED SECTORS

4. OUR INCENTIVES

5. OUR ACHIEVEMENTS


7. CONTACT US

IDAL | 2012

1OUR INCENTIVES

1- REGION & SECTOR BASED INCENTIVE 2- JOB CREATION BASED INCENTIVE

• Also called Investment Projects by Zone (IPZ) incentives

• Provided to projects based on: (1) Geographical location across 3 Zones: A, B, C (2) Investment size (3) Sector

Incentives Provided

• Up to 100% tax exemptions for 10 years for projects located in remote areas (Zone C)

• Work Permits granted

• Also called Package Deal Contract (PDC) incentives

• Provided to projects based on: (1) Investment size (2) Number of jobs created (3) Sector

Incentives Provided

• 100% exemption of Income Tax• 100 % exemptions on Taxes on Project Dividends for up to ten years• 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 Fees

TWO TYPES OF INCENTIVE SCHEMES

IDAL | 2012

A- REGION AND SECTOR BASED INCENTIVE

• Also called Package Deal Contract (PDC) incentives

• Provided to projects based on: (1) Investment size (2) Number of jobs created (3) Sector

Incentives Provided

• 100% exemption of Income Tax• 100 % exemptions on Taxes on Project Dividends for up to ten years• 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 Fees

Beirut

ZONE B

Sectors Minimum Inv.Size US$

Tourism 4,000,000

Industry 3,000,000

Agro-Industry 1,500,000

Agriculture 1,000,000

Technology, ICTand Media

200,000

100% income tax exemption for 2 years*+ work permits granted


Tourism 1,000,000

Industry 1,000,000


Agriculture 500,000


200,000

ZONE C100% income tax exemption for 10 years+ work permits granted


Tourism 10,000,000

Industry 5,000,000




200,000

ZONE A50% income tax exemption for 5 years+ work permits granted

* Provided that 40% of stocks are listed on Beirut Stock Exchange

IDAL | 2012

2

B- JOB CREATION & SECTOR BASED INCENTIVE

IDAL | 2012

3


Tourism 15,000,000

Industry 10,000,000




200,000

200

100

60

50

25

MinimumJob Creation

B- JOB CREATION & SECTOR BASED INCENTIVE 4

IDAL | 2012

50%up to

Reduction on Workand Residence Permits

100%Exemption on IncomeTax for up to 10 years

100%Exemption on Taxes on ProjectDividends for up to 10 years

Land Registration Fees50%up to

Reduction on ConstructionPermit Fees

categories

Obtaining WorkPermits of

ZERO

ALL



3. TARGETED SECTORS

4. OUR INCENTIVES

5. OUR ACHIEVEMENTS


7. CONTACT US

IDAL | 2012

1

IDAL | 2012

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

OUR ACHIEVEMENTS

Investments Attracted Through IDALin million $(2003-2012)

TourismIndustry

TechnologyAgro-Industry

ITMedia

AgricultureTelecom-

munications

Total: USD 1,520,827,114

Distribution of Projects by Sectors (%)

(2003-2012)

Total: 42Note: Technology products include projects which make use of new technology and they include projects in pharmaceuticals industry,bio medicals and electronics

Note:Only 50% of these projects areoperational. The remaining are inconstruction phase

80.0%14.0%

1.6%1.6%

1.1%0.9%0.7%0.1%

1,216212.5

23.923.616.813.911.22.2

Tourism35.7%

Industry31.0%

Agro-Industry9.5%

Technology7.1%

IT7.1%

Media4.8%

Telecommunications2.4%

Agriculture2.4%

2

IDAL | 2012

OUR ACHIEVEMENTS

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 Through IDAL

(2003-2012)

Total Jobs Created by IDAL

(2003-2012)

2012201120102009200820072006200520042003

Median = 4

5

3

44

12

65

57

Total: 42

Industry16.6%

Agro-Industry8.9%

Technology6.1%

IT1.6%

Media0.9%

Telecommunications4.1%

Tourism61.1%

Agriculture0.7%

3

IDAL | 2012

OUR ACHIEVEMENTS

COMMENTS

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 IDAL’s Incentives (%)

(2003-2012)

Domestic60%

Mixed25%

Foreign15%

Include Lebanese and foreign investors

Majority GreenfieldInvestments

IDAL has mostly attracted domestic companies and not foreign companies

Foreign companies benefiting from IDAL incentives include:

1 Swedish company: Ericsson with an investment of USD 1.3 million and generating 300 jobs

2 UAE companies: Habtoor Grand Hotel and Metropolitan City Center: Investment of USD 110 million 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 created

4

IDAL | 2012

Distribution of Projects Mediated by IDAL by Muhafaza (%)

Distribution of Projects Mediated by IDAL by Muhafaza

in 2011(2003-2012)

Beirut35.7%

Mount Lebanon38.1%

South Lebanon2.4%

Bekaa14.3%

North Lebanon9.5%

OUR ACHIEVEMENTS

THE MAJORITY OF PROJECTS ARE LOCATED IN BEIRUT AND MOUNT LEBANON



3. TARGETED SECTORS

4. OUR INCENTIVES

5. OUR ACHIEVEMENTS


7. CONTACT US

IDAL | 2012

ATTRACTIVE BUSINESS LOCATIONWITH ACCESS TO THE MENA REGION

RICHHISTORY AND CULTURE

STRATEGICLOCATION

1

IDAL | 2012

EXCELLENT ECONOMIC FUNDEMENTALS 2

LIBERALFINANCIAL ENVIRONMENT

SECRECYBANKING

IDAL | 2012

IDAL | 2012

COST-COMPETITIVE ENVIRONMENT 3

MARKET ECONOMYFREE

TAXATION AND FISCAL INCENTIVESFAVORABLE

IDAL | 2012

DYNAMIC WORKFORCE 4

COMPETENTHUMAN CAPITAL AND LOW LABOR COST

NON-DISCRIMINATORY LEGAL FRAMEWORK

IDAL | 2012

EASY PLACE TO LIVE 5

QUALITY OF LIFEHIGHHEALTH CARE AND HIGH EDUCATIONQUALITY



3. TARGETED SECTORS

4. OUR INCENTIVES

5. OUR ACHIEVEMENTS


7. CONTACT US

IDAL | 2012

CONTACTUS

INVESTMENT DEVELOPMENTAUTHORITY OF LEBANON

Lazarieh Tower, 4th Floor,Emir Bechir Street, Riad El-SolhP.O.Box: 113-7251Beirut, Lebanonwww.idal.com.lb

T + 961 (1) 983306/7/8 F + 961 (1) 983302/3

[email protected]

@Invest_Lebanon

/investmentdevelopmentauthorityoflebanon

/InvestInLebanon

IDAL | 2012

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