Lebanon: "Building on Stable Foundations"

OBG, here

"...Although the construction industry has been battered by the fallout of Israel's incursion in the summer of 2006 and the loss of investor confidence resulting from political infighting, the sector has made steady progress. While a number of major developments were put on ice, projects covering more than 5m square metres have been approved so far this year....While investors are returning to the real estate market, with the renewed interest having a direct impact on to the construction sector, many foreign firms are adopting a cautious approach..."

SFM of FLC responds:

"Investors in Lebanon should move away from the real estate market and into the real productive sector of the economy, such as high value added agribusiness and industry. Even services such as hospitality,education, should focus on the high tech end of the sector. The comparative advantage for Lebanon lies in the quality of high skill brain and manpower. However, the business environment represented by PM Siniura and the Association of Bankers and Merchants are not likely to favor the shift from a rent based economy to a production based one. A major battle of ideas is going to be fought in Lebanon and elsewhere in the Arab homeland for that kind of new approach to the creation of wealth. Affaire a suivre!"