A presentation highlighting what the official investment promotion agency of Lebanon can do for you.

1. COMPANY PROFILE

2. HEADLINES
1. ABOUT US
2. OUR CONSULTANCY SERVICES
3. TARGETED SECTORS
4. OUR INCENTIVES
5.OUR ACHIEVEMENTS
6. LEBANON AT A GLANCE
7. CONTACT US
IDAL | 2012

3. ABOUT IDAL 1
THE ESTABLISHED IN 1994
INVESTMENT with the aim of promoting Lebanon as a key investment
destination, and attracting, facilitating and retaining investments in
DEVELOPMENT the country
GOVERNANCE
AUTHORITY IDAL reports to the President of the Council of Ministers who
exercises a tutorial authority over it. It has financial and
OF LEBANON administrative autonomy
(IDAL)
INVESTMENT LAW NO.360
was enacted in 2001 regulating investment activities in Lebanon
THE NATIONAL INVESTMENT IDAL is tasked with 2 Mandates:
PROMOTION AGENCY OF LEBANON
– Investment Promotion. IDAL is an investment
promotion agency which provides investors with a range
of incentives and business support services
– Export Promotion. IDAL is also entrusted with the
active promotion and marketing of Lebanese exports
including agricultural and agro-industrial products.
IDAL | 2012

4. OUR MANDATES 2
INVESTMENT PROMOTION EXPORT PROMOTION
• Provide economic, commercial and legal • Provide data on external markets
information of relevance to investors
• Support companies in selected sectors
• Identifies business opportunities across in accessing external markets
various economic sectors
• Provide promotional materials
• Provide in depth analysis of sectors
• Subsidize participation in foreign fairs
• Grant fiscal exemptions and fees
reduction to investment projects • IDAL currently has in place 2 export
promotion programs:
• Facilitate issuance of permits and licenses
Agri Plus (2012): Which
• Provide on-going support for investment provides subsidies and support to
projects exporters of agricultural products
• Actively promotes Lebanon as key AGRO MAP (2004): Which
investment destination subsidizes the participation of agro
food companies in foreign fairs
licenses
IDAL | 2012

5. OUR STRUCTURE 3
BOARD OF EXECUTIVE MANAGEMENT
DIRECTORS CHAIRMAN AND GENERAL MANAGER
STUDIES,
INFORMATION FINANCE AND
PLANNING, ONE-STOP-SHOP
AND PROMOTION ADMINSTRATIVE
AND STATISTICS DIRECTORATE (OSS)
DIRECTORATE AFFAIRS DIRECTORATE
DIRECTORATE
Studies, Strategic Marketing Licenses
Financial Affairs
Planning & Follow-up & Promotion & Incentives
Media Post Investment
Statistics & Data Legal Affairs
& Communication Services
Programs Admin & Human
Implementation Resources Affairs
Secretariat
Information
Technology
IDAL | 2012

6. HEADLINES
1. ABOUT US
2. OUR CONSULTANCY SERVICES
3. TARGETED SECTORS
4. OUR INCENTIVES
5. OUR ACHIEVEMENTS
6. LEBANON AT A GLANCE
7. CONTACT US
IDAL | 2012

7. 1
OUR
CONSULTANCY INVESTOR
SERVICES
IDAL SERVES AS A CONSULTANT
TO THE INVESTING COMPANY,
WITH EXPERTISE ON THE LOCAL
AND REGIONAL MARKET
Market Facilitates Business
Intelligence issuance of Matchmaking
procedures
IDAL | 2012

8. OUR CONSULTANCY SERVICES 2
Provision of market intelligence (by sector and topic)
Introduction to potential partners and suppliers
Advising on the financing of the project (including
incentives)
Matching with potential investors/entrepreneurs
Assistance in applying for incentives
Assistance in coordinating with licensing authorities
to facilitate the issuance of licenses and permits
(to set-up and operate a business)
IDAL | 2012

9. OUR CONSULTANCY SERVICES 3
WE CAN PROVIDE YOU WITH A FULL RANGE OF CONSULTANCY SERVICES FOR
YOUR INVESTMENT PROJECT
Strategy Evaluation Decision and Investment
STEPS:
Discussion of Meeting with Incentives Follow up
Market IDAL Legal Application with PCM* Follow up
Intelligence project location,
and incentive Advisor and /Evaluation for project on permits
Provision schemes financial of Project approval issuance
partners Feasibility
RELEVANT DIRECTORATES AT IDAL:
IDAL Chairman
and OSS IDAL and
IDAL Sector IDAL Chairman IDAL OSS Chairman Concerned
Experts and OSS Authorities
Financial
Institutions
* PCM: Presidency of the Council of Ministers
IDAL | 2012

10. HEADLINES
1. ABOUT US
2. OUR CONSULTANCY SERVICES
3. TARGETED SECTORS
4. OUR INCENTIVES
5. OUR ACHIEVEMENTS
6. LEBANON AT A GLANCE
7. CONTACT US
IDAL | 2012

11. Selected on their readiness & potential for development
These sectors were included in Law 360 in 2001
1
EIGHT
SECTORS
ARE ELIGIBLE
FOR OUR INDUSTRY FOOD AND
BEVERAGES
TOURISM
INCENTIVES
IDAL PROVIDES INCENTIVES TO
EIGHT SECTORS WITH GROWTH
POTENTIAL AND READINESS FOR
DEVELOPMENT AGRICULTURE INFORMATION TECHNOLOGY
TECHNOLOGY
TELECOM MEDIA
IDAL | 2012

12. TARGETED SECTORS 2
- Machinery & Equipment
- Rubber, Plastics, Non-Metallic
Mineral Products, Metals
- Chemicals & Pharmaceuticals
- Furniture
- Textiles and Paper Products
INDUSTRY
- Hotels
- Packaging centers - Leisure Facilities
- Manufacturing plants - Healthcare Tourism
- Bottling facilities - Cultural & Religious
- Business Conferences
FOOD AND TOURISM
BEVERAGES
- Software development
- Web solutions
- Database and Desktop
applications
- Mobile applications
- E services
INFORMATION - Cloud OS
TECHNOLOGY
IDAL | 2012

13. TARGETED SECTORS 3
- ICT manufacturing
- Electronics
- Semiconductors
- Medical Technologies
- Clean Technologies
- Research and Development
TECHNOLOGY
- Advertising
- Packaging Centers - TV Production
- Production Facilities - Digital Media
- Production Houses
AGRICULTURE MEDIA
- Telecom Services
- Network Solutions
- Call Centers
TELECOM
IDAL | 2012

14. 4
INVESTOR INVESTOR SUPPORT SERVICES
CONSULTANCY Market Intelligence Information
SERVICES Economic, commercial and legal information
WITH
Participating in meetings with potential investors.
Financing & Incentives
SECTOR Support in finding financial partners
for the investment project
EXPERTISE Support in incentives application
Promoting Lebanon as an
OUR INVESTOR SUPPORT
SERVICES TEAM ADVISES ON investment location
MARKET INTELLIGENCE AND Identification of attractive industries
INVESTMENT INCENTIVES.
and projects for investors
SECTOR TEAMS
Food & Beverage Agriculture
Industry Media
Technology Information Technology
Tourism
IDAL | 2012

15. HEADLINES
1. ABOUT US
2. OUR CONSULTANCY SERVICES
3. TARGETED SECTORS
4. OUR INCENTIVES
5. OUR ACHIEVEMENTS
6. LEBANON AT A GLANCE
7. CONTACT US
IDAL | 2012

16. OUR INCENTIVES 1
TWO TYPES OF INCENTIVE SCHEMES
1- REGION & SECTOR BASED INCENTIVE 2- JOB CREATION BASED INCENTIVE
• Also called Investment Projects by Zone • Also called Package Deal Contract (PDC)
(IPZ) incentives incentives
• Provided to projects based on: • Provided to projects based on:
(1) Geographical location across 3 (1) Investment size
Zones: A, B, C (2) Number of jobs created
(2) Investment size (3) Sector
(3) Sector
Incentives Provided
Incentives Provided
• 100% exemption of Income Tax
• Up to 100% tax exemptions for 10 years for • 100 % exemptions on Taxes on Project
projects located in remote areas (Zone C) Dividends for up to ten years
• Work Permits granted • Up to a 50% reduction on Work and
Residence Permit Fees
• Up to a 50% reduction on Construction
Permit Fees
• Full exemption from Land Registration Fees
IDAL | 2012

17. A- REGION AND SECTOR
BASED INCENTIVE 2
ZONE A ZONE B
50% income tax exemption for 5 years 100% income tax exemption for 2 years*
+ work permits granted + work permits granted
Minimum Inv. Minimum Inv.
Sectors Sectors
Size US$ Size US$
Tourism 10,000,000 Tourism 4,000,000
Industry 5,000,000 Industry 3,000,000
Agro-Industry 2,000,000 Agro-Industry 1,500,000
Beirut Agriculture 1,500,000 Agriculture 1,000,000
Technology, ICT Technology, ICT
200,000 200,000
and Media and Media
* Provided that 40% of stocks are listed
on Beirut Stock Exchange
ZONE C
100% income tax exemption for 10 years
+ work permits granted
Minimum Inv.
Sectors
Size US$
Tourism 1,000,000
Industry 1,000,000
Agro-Industry 1,000,000
Agriculture 500,000
Technology, ICT
200,000
and Media
IDAL | 2012

18. B- JOB CREATION & SECTOR
BASED INCENTIVE 3
Sectors Minimum Inv. Minimum
Size US$ Job Creation
Tourism 15,000,000 200
Industry 10,000,000 100
Agro-Industry 3,000,000 60
Agriculture 2,000,000 50
Technology, ICT 200,000 25
and Media
IDAL | 2012

19. B- JOB CREATION & SECTOR
BASED INCENTIVE 4
100% ZERO 50%
up to
Exemption on Income Land Registration Fees Reduction on Construction
Tax for up to 10 years Permit Fees
Obtaining Work
Permits of
50% ALL
up to
100%
Exemption on Taxes on Project Reduction on Work categories
Dividends for up to 10 years and Residence Permits
IDAL | 2012

20. HEADLINES
1. ABOUT US
2. OUR CONSULTANCY SERVICES
3. TARGETED SECTORS
4. OUR INCENTIVES
5. OUR ACHIEVEMENTS
6. LEBANON AT A GLANCE
7. CONTACT US
IDAL | 2012

21. OUR ACHIEVEMENTS
1
IDAL HAS PLAYED A ROLE IN CHANNELING INVESTMENTS, MEDIATING AROUND 42 INVESTMENTS WORTH
USD 1.5 BILLION SINCE 2003, WITH THE TOURISM SECTOR ATTRACTING A LION SHARE (35%) OF INVESTMENTS
Investments Attracted Through IDAL Distribution of Projects
in million $ by Sectors (%)
(2003-2012) (2003-2012)
Tourism 80.0% 1,216
Industry 14.0% 212.5 Agriculture
Agro-Industry 1.6% 2.4%
23.9
Technology 1.6% 23.6 Media Telecommunications
IT
IT 1.1% 16.8 4.8% 2.4%
7.1%
Media 0.9% 13.9 Technology Tourism
Agriculture 0.7% 11.2 7.1% 35.7%
Telecom- 0.1% 2.2 Agro-Industry
munications 9.5%
Industry
Note: 31.0%
Only 50% of these projects are
operational. The remaining are in
construction phase
Total: USD 1,520,827,114 Total: 42
Note: Technology products include projects which make use of new technology and they include projects in pharmaceuticals industry,
bio medicals and electronics
IDAL | 2012

22. OUR ACHIEVEMENTS
2
ON AVERAGE, IDAL MEDIATES AROUND 5 INVESTMENT PROJECTS PER YEAR, WITH THE NUMBER VERY MUCH
DEPENDING ON THE POLITICAL CLIMATE.
5,400 HAVE BEEN CREATED SO FAR BY IDAL SINCE 2003
Number of Projects Attracted Total Jobs Created
Through IDAL by IDAL
(2003-2012) (2003-2012)
Media
2012 5 IT 0.9%
2011 Telecommunications 1.6% Agriculture
4
4 4.1% 0.7%
2010 Technology
2009 1 6.1%
2008 2
2007 6 Agro-Industry
2006 5 8.9%
2005 7
2004 5
2003 3
Industry
16.6% Tourism
61.1%
Total: 42 Median = 4
IDAL | 2012

23. OUR ACHIEVEMENTS
3
THE MAJORITY OF INVESTMENTS WERE FROM LEBANESE INVESTORS, WITH 6 FOREIGN AND 10 MIXED
COMPANIES BENEFITING FROM IDAL’S INCENTIVES
Origin of Companies Benefiting from COMMENTS
IDAL’s Incentives (%)
(2003-2012) IDAL has mostly attracted domestic companies and
not foreign companies
Foreign
15%
Foreign companies benefiting from IDAL incentives
Domestic include:
60%
Mixed
25% 1 Swedish company: Ericsson with an investment of
USD 1.3 million and generating 300 jobs
2 UAE companies: Habtoor Grand Hotel and
Include Lebanese Majority Greenfield Metropolitan City Center: Investment of USD 110 million
and foreign investors Investments and 472 jobs created
2 Kuwaiti companies: The Landmark Hotel and NPPC
Fresh Produce Factory in the Agriculture sector:
Investments of USD 135 million and 291 jobs created
IDAL | 2012

24. OUR ACHIEVEMENTS
4
THE MAJORITY OF PROJECTS ARE LOCATED IN BEIRUT AND MOUNT LEBANON
Distribution of Projects Mediated by IDAL Distribution of Projects Mediated by IDAL
by Muhafaza (%) by Muhafaza
(2003-2012) in 2011
South Lebanon
2.4%
North Lebanon
9.5%
Bekaa
14.3%
Mount Lebanon
38.1%
Beirut
35.7%
IDAL | 2012

25. HEADLINES
1. ABOUT US
2. OUR CONSULTANCY SERVICES
3. TARGETED SECTORS
4. OUR INCENTIVES
5. OUR ACHIEVEMENTS
6. LEBANON AT A GLANCE
7. CONTACT US
IDAL | 2012

26. ATTRACTIVE BUSINESS LOCATION
WITH ACCESS TO THE MENA REGION 1
RICH
HISTORY
AND CULTURE
STRATEGIC
LOCATION
IDAL | 2012

27. EXCELLENT ECONOMIC FUNDEMENTALS 2
LIBERAL
FINANCIAL ENVIRONMENT
BANKING
SECRECY
IDAL | 2012

28. COST-COMPETITIVE ENVIRONMENT
3
FREE
MARKET ECONOMY
FAVORABLE
TAXATION AND FISCAL INCENTIVES
IDAL | 2012

29. DYNAMIC WORKFORCE 4
COMPETENT
HUMAN CAPITAL AND LOW LABOR COST
NON-DISCRIMINATORY
LEGAL FRAMEWORK
IDAL | 2012

30. EASY PLACE TO LIVE 5
QUALITY
HEALTH CARE AND HIGH EDUCATION
HIGH
QUALITY OF LIFE
IDAL | 2012

31. HEADLINES
1. ABOUT US
2. OUR CONSULTANCY SERVICES
3. TARGETED SECTORS
4. OUR INCENTIVES
5. OUR ACHIEVEMENTS
6. LEBANON AT A GLANCE
7. CONTACT US
IDAL | 2012

32. CONTACT
US
Lazarieh Tower, 4th Floor,
Emir Bechir Street, Riad El-Solh
P.O.Box: 113-7251
INVESTMENT DEVELOPMENT Beirut, Lebanon
AUTHORITY OF LEBANON
www.idal.com.lb
T + 961 (1) 983306/7/8
F + 961 (1) 983302/3
invest@idal.com.lb
@Invest_Lebanon
in /investmentdevelopmentauthorityoflebanon
You /InvestInLebanon
Tube
IDAL | 2012