News from Lebanon – in brief.

1 - Prime Minister receives UN-Habitat award:

          The Lebanese Prime minister has received the Habitat Scroll of Honor, Special Citation for his outstanding work in the post-conflict reconstruction of Lebanon at the opening ceremony of the World Urban Forum (WUF).

          The WUF is part of the Universal Forum of cultures held in Barcelona, Spain from 9 May to 26 of September 2004. The Lebanese Prime Minister delivered a speech at the conference, where he considered that the award is honoring the sacrifices and determination of the Lebanese people, and of all the countries that have contributed and supported reconstruction and development in Lebanon, namely Arab countries, France and other European countries. He also gave an overview of the reconstruction process in Lebanon, which started in the early 1990s and he pointed to the main challenges, obstacles and achievements that have been realized.

2- Tourism activity up to 11.0% in August:

          The tourism sector witnessed a dynamic activity during the month of August 2004 when compared to the corresponding month of the previous year.

          According to statistics released by the Ministry of Tourism, the number of tourists coming to Lebanon increased by 11.0%, reaching 212,113 in August 2003. Arab tourists accounted for the largest number of tourists visiting Lebanon in August 2004, constituting 61.4% of the total, followed by European tourists with 17.4%.

On a cumulative basis, tourism activity maintained an impressive performance, reporting an increase of 31.4% in the number of tourists over the first eight months of the current year, reaching about 943,846 tourists. As to the distribution of tourists by countries of origin over the first eight months of this year, the majority of tourists came from Arab countries accounting 45.4% of the total number of tourists, followed by European tourists with a 25.3% share, Asia with 12.1%, America with 11.9%, Oceania with 3.6% and Africa with 1.6%.

3 - Solidere finalizes phase one of BCD reconstruction:

          Solidere, established ten years ago with the purpose of rebuilding the Beirut Central District (BCD), has announced the end of the BCD’s initial reconstruction phase.

          Solidere has been imparted with the construction of a 4.7 million square meter area, of which circa 900,000 square meters, i.e. 20% of the projected surface has been accomplished. The total area was divided into residential building (40%), offices and commercial centers (50%), and hotels, leisure and cultural centers (10%). As of today 95% of residential apartments and commercial stores and 65% of office space buildings are complete. Commercial institutions and companies have totaled 1,000, of which 500 are firms, 100 are restaurants and coffee shops, and 350 are commercial shops.

          Solidere’s three main achievements during the past decade include the revival of the BCD by attracting famous brands, investors and tourists and by establishing business centers. Drawing foreign capital into the BCD was another accomplishment, since multiple Arab and international entrepreneurs have, directly (through participations) or indirectly, invested in the project.

          Finally, one of Solidere’s most notable attainments is undoubtedly the BCD commercial markets that are located within the area delimited by Allenby and “Patriarch Hoayeck” streets, Weygand street and the Port street.

          The firm’s future endeavors focus on the completion and development of the infrastructure, on top of the commercial markets project, aimed at rendering Beirut a renowned trade center. The latter project is to be finalized by end of 2006 or by the early months of 2007.

4 - IATA conference to be held in Beirut for the first time:

          International Air Transport Association (IATA) will hold its 19^th conference in Beirut for the first time ever. Middle East Airline (MEA) and the Industry Affairs Committee (IAC), part of the IATA, discussed the event during their recent meeting. MEA will be represented by the head of the industrial affairs department that has been elected for the third consecutive time as an executive member of the International Civil Aviation (IAC) organization during its next meeting due to take place in September of 2005.

5 - 55% of 2005 Eurobonds were swapped:

          The minister of Finance declared that 55% of the total value of 2005 Eurobonds has been swapped, representing a relatively high percentage when compared to similar country experiences, with ratios ranging from 12 to 44%. Eurobonds exchanged amounted to US$ 1.186 billion out of a total of US$ 2.264 billion outstanding 2005 notes.

          The swap operation aims at alleviating the debt burden by shifting to longer-term, lower-interest debt instruments. Such debt restructuring measures should not replace the need for financial and structural adjustment reforms aiming at containing spending and enhancing revenues, given their importance in addressing the real dimension of the Lebanese economy.

6 - Beirut Mall Project:

          Local contractors have submitted bids for the construction of the US$ 15 million Beirut Mall project. A 50,000m2 shopping mall is foreseen to be located on the premises of the old Ghandour factory in Chiah, south of Beirut. The contract should be awarded early October.

The mall is to be founded by the Saudi Marketing Aswad Group.

The Beirut Mall will include branches of the Saudi Farm Superstores chain as well as Canada’s Cinnzeo food franchise, in addition to clothes and furniture shops, a food court, a children’s entertainment area and a multi-purpose halls for private functions. Three underground parking levels will provide up to 650 parking spaces.