OBG: Lebanon: The Business of Protection

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Lebanon: The Business of Protection
2 July 2007
On May 21, around 11pm, a bomb planted under a car exploded outside the ABC mall in Ashrafieh. For the business community, it marked the beginning of a series of bombs and events that would shatter their hopes, again, of a profitable summer. For the public, the symbolism of targeting one of the capital's most popular malls spread a feeling of uncertainty and vulnerability that has not abated in the spate of bombings that has followed.

"People are afraid and want to protect their homes and their children from fragments of glass while sleeping," Nada Nehme, managing director of Société Nada N Nehme, the agent for global technology company 3M, told OBG. She also said that since the ABC bombing, there had been a significant increase in business for Scotchshield protective film for windows.

The fragile security environment eerily mirrors that of two years ago, when the assassination of former Prime Minister Rafik Hariri on February 14, 2005 gave way to a spate of bombings targeting commercial areas. Security businesses have regularly reported increases in trade in response to such events. For instance, in the month following the Hariri assassination, security firm Protectron reported a 25% increase in turnover.

Like other malls in Beirut, ABC already had security measures in place prior to its bombing. These included closed circuit television (CCTV) cameras, security guards checking the bags of those entering the building as well as staff using explosive detector devices for customers parking cars inside the mall.

Marwan Harfouche is the sales manager for security and management firm CHIP, which supplies CCTVs to clients such as Beirut International Airport and Casino du Liban. This year it scored a $2m contract to supply Solidere's long-awaited gold souk project in downtown Beirut. "Things have been booming for about a month and a half," Harfouche told OBG.

Same thing for Patrick Security Services Agency (PSSA), which supplies security guards and services to major businesses and institutions, including City Mall, Monoprix, Notre Dame University, An-Nahar and Virgin Megastore. Wissam Chartouny, PSSA's assistant general manager, said that business increased by 35% to 40% in the wake of the ABC bombing. He pointed out that there is always demand for business but that the nature of it varies according to the political climate.

Amid the unstable security climate, nightlife in the capital has centered around the Gemmayze area, home to a number of bars and restaurants in the east of the city. According to recent media reports, owners of businesses in the area have clubbed together to pay for security services for the area to ensure customers continue to patronise the area's nightlife. Owner of one of the businesses, Makram Zeeni, told media that a collective cost of $23,000 per month supplies the owners with surveillance cameras, night patrols and explosive detectors for parking areas.

Chartouny said PSSA has been approached by bar owners in Gemmayze and that the company declined to offer security guards since it did not believe in sending its staff to police the streets, but supplied the bar owners with canine sniffing services. According to Sami Zod, the managing director of Zod Security Group, "Sales have not increased per se since the purchasing power of the Lebanese remains the same if not decreased. Rather, there has been a shifting from certain products onto others."

The shift has mostly been from low voltage equipment like burglar/fire alarms, access control and automation to video surveillance and anti-terrorism products. According to him, the most requested items include CCTV surveillance cameras and digital video recorders (DVR), under vehicle inspection systems, explosive detectors and metal detectors.

There are an estimated 70 security firms operating in the country. Zod pointed out that some companies were refused admission into the Syndicate of Security and Safety Professionals, "because they did not meet the requested criteria for quality, professionalism, integrity and ethics."