UAE ventures in Lebanon top $1b

Dubai: UAE investments in Lebanon exceed USD 1 billion, represent over 41 per cent of total value of Arab projects in the country $800 million 'BeitMisk' residential community project joins growing list of major UAE investment initiatives in the country

Dubai Investment by the UAE in Lebanon exceeded $1 billion (Dh3.67 billion), making the UAE the top Arab investor, according to the latest Inter-Arab Investment Guarantee Corporation annual report.

UAE investment represents 41.9 per cent of the value of projects initiated by Arab investors in Lebanon in 2008.

Lebanon's real estate sector continues to attract major investors despite political and economic challenges.

The July 2009 edition of the Lebanon Real Estate Report points out that real estate sales values and construction permits achieved average growth rates of 17.6 per cent and 12.6 per cent, respectively, over the past five years. Further underscoring the country's resiliency amid the global financial crisis, real estate sales in Lebanon almost stabilised in the first five months of 2009, and construction permits have posted a 4.3 per cent yearly increase.

UAE investors in particular are the most active in Lebanon. According to the report, UAE investors have invested $1.115 billion there.

Dubai's Al Habtoor Group, Damac Holding and Planet Group, among others, have various projects under development in Lebanon.

According to Jane Kinninmont, Middle East editor and economist at the Economic Intelligence Unit, business relations between Lebanon and the Gulf play a major role in the Lebanese economy.

"The UAE is currently the second largest market for Lebanon's exports after Syria. In 2008 the UAE bought 12.5 per cent of Lebanese exports - about half a billion dollars' worth - while Saudi Arabia bought 6 per cent and Qatar just under 3 per cent," she said.

Kinninmont added: "The investment climate in Lebanon is one of the most open in the region. [Its] main weaknesses lie in infrastructure - there are daily power cuts and the transport system is poor - and in access to credit, as well as the country's relatively high levels of political risk."

Brand identity

Emaar Properties and Renaissance Holdings, developers of projects in Lebanon, have recently appointed BrandCentral, a leading strategy and design consultancy in the region, to develop the name, brand identity, a comprehensive design programme and to create brand awareness for its project in Lebanon.

“BeitMisk'', the new brand developed by BrandCentral for the project, draws inspiration from ongoing nationwide branding initiatives in Lebanon.

“Lebanon has showed impressive results in the construction and real estate sectors during the first half of 2009. These positive developments underline the country's resiliency amid an ongoing global recession, and have further enhanced Lebanon's reputation as a very attractive investment destination. Being our flagship project in the country, it is our goal to establish BeitMisk as a distinctive brand that embodies the beauty and natural bounty of Lebanon,'' said Georges Abu Jaoude, Renaissance Holdings, the owners of the project who have appointed Emaar to spearhead the development.

BeitMisk is a $800 million (Dh2.9 billion) residential community project spread over 655,000 square metres in Lebanon's Metn area.

The BeitMisk community provides homeowners a panoramic view of the surrounding mountain villages.