Lebanon: Many Businesses Plan to Expand, Despite Unrest

Copyright 2008 IPS – Inter Press Service / Global Information Network

BEIRUT, Lebanon, Feb 6 2008

The year 2008 has been grim for most Lebanese businesses: Struggles of the nation, with a permanent protest movement, security problems, a brief war in a Palestinian refugee camp and sporadic bombings have brought the nation of knees.

More recently, a bomb tore through the bustling Chevrolet area on the outskirts of Beirut on January 25, killing Captain Wissam Eid of the Internal Security Forces.

As the political situation tips further in the direction of widespread insecurity, however, Lebanese companies across the country are clinging to the motto “the show must go on.” Expansion seems to be the word on the street in Beirut, no matter what the uncertain future may hold.

ABC, a major department store and mall with seven outlets, two flagship stores and a workforce of over 1000 is now a renewal of its main branches in Dbayeh.

“In March, also launched a new section on the expansion of a plant of 8000 square meters dedicated to children, called Kidsville. Also included are 500 square feet of games, a set of accessories for children and a cafeteria, La Mie Doree, “said Robert Fadel, CEO of ABC. A second large store in the Ashrafieh district of Beirut is adding an extension of a park that fills an area of 800 square meters.

The group of Johnny R. Saade is also jumping on the trolley expansion. Its travel and tourism arm, Wild Discovery, will be the creation of shop in Kaslik in northeast Lebanon in a few months.

“We decided to move forward with the opening of new branches in Lebanon despite the prevailing situation, following the simple strategy is to invest and position oneself in times of relative crisis to prepare for the inevitable economic and political recovery that can be foreseen, “said Sandro Saade, one of the owners of the company.

“This opening is also justified by a strategic objective to cover the area north of Beirut, where there is a demand for high quality travel services.”

The company has a real estate arm of $ 30 million residential project in expanding 18,000 square feet in an elegant suburb of Beirut. In addition, the group is developing a winery in the Bekaa Valley near the villages of Kefraya and Tell-Denoub, covering a strip of 50 acres of land. The project is estimated at $ 25 million and employ 50 people, excluding seasonal workers.

“The Lebanese company also integrate two other complementary projects, namely, a wine museum and a boutique hotel, or” h “tel de charme” with 30 to 35 rooms, said Karim Saade, another company owner.

This is not just big names that are taking a leap of faith in the Lebanese waters murky.

Nehme Lebbar, founder of Iloubnan, a news portal for Lebanon, left his home country in 1991 and worked as a consultant for 12 years in France before returning.

“I wanted to go back since I left. IIoubnan started in March 2005 with the help of my wife, a French journalist,” said Lebbar. “It is a web magazine well with a side of electronic commerce.”

The young entrepreneur has poured all his savings into this company, based on a bank loan, too. The recent success of the company has allowed an increase in operations, with four journalists employed full time and a network of 20 independent journalists worldwide.

A shared vision of Lebanon seems to cement together the diverse business figures. “Lebanon is our homeland and we believe in our country,” said Fadel. Moreover, Lebbar is aware of the risks they might incur, but is nevertheless determined to promote change in their country of origin.

Although most companies are investing in Lebanon, many have also considered the adoption of its business abroad. ABC will be opening in Jordan in March. “The company will provide the Jordanian market the spirit of Lebanon, and aims to become a leading fashion and shopping destination,” said Fadel.

Similarly, the Saade brothers are based on an international network of travel agencies for their operations, and launching a new winery in neighboring Syria. The group is trying to counteract the negative business environment, emphasizing the quality of their services. Discovery of a wild and is investing in a sales training program provided to improve their knowledge of computer and technical skills.

For most entrepreneurs, the essential rationale linking their projects is supporting Lebanon as a brand in the region. Lebbar believes that this can not be done without the help of young Lebanese. “They need to travel, study abroad, graduate and experience foreign countries,” he said, “then re-invest in Lebanon.”