Socrates Almanc. special edition Mr. Fouad Makhzoumi

EUROPE BUSINESS ASSEMBLY

INTERNATIONAL PRIZE

Best Enterprises

for professional achievements in commercial activities

from the Editorial board of Socrates Almanac This publication of the Socrates Almanac dedicated to the story of the life and achievements of Mr Fouad Makhzoumi, a prominent Lebanese businessman, the founder and president of Future Pipe Industries one of the world’s leading manufacturers of fiberglass pipes.

This edition is a digest containing the best articles and interviews with Mr Makhzoumi from leading international and national publications.

The collected materials gives the reader an insight into the man who created one of the largest industrial empires in the Middle East. Find out about his success, sources of inspiration and professional victories in this edition.

Mr Fouad Makhzoumi is a real leader, who bravely overcame difficult life circumstances. Having gone through trials and losses, he regained his passion for the world, people and the desire to do good things.

He is a patron and philanthropist, founder and co-founder of a number of charities and the initiator of many social programs.

By the nature of his activities, Mr Makhzoumi regularly takes part in international conferences, symposia, business meetings, global business projects and partnership initiatives.

He remains an open and simple man always ready to help those who are struggling. He is an active sponsor of social programs in his homeland and always happy to help young businessmen and support the Arab culture.

Nowadays, the Future Management Holdings Group has many offices worldwide. In particular, the UAE, Egypt, Oman, Qatar, Saudi Arabia, Italy, France, Netherlands, Germany, England, Spain, Morocco, USA, Thailand, India, Indonesia and Singapore. Through the nature of his activities, Mr. Makhzoumi combines two business traditions - Arab and European: he is not only successfully using them in creating his own business strategy, but also promotes Western economic ideas in the Arab countries.

With his efforts creating a bridge between the West and the Arab world, including an increase in the mutual understanding between cultures, Mr Makhzoumi is the image of business success in a global world.

Europe Business Assembly Empress Court, 2 Woodins Way, Paradise Street, Oxford, Ox11HF, UK

E-mail: assembly1@leaders-21.com Web-site: www.ebaoxford.co.uk

Dear Mr Makhzoumi, On behalf of the Europe Business Assembly I would like to congratulate you on receiving the awards “Top Manager of the Year” and “Best Enterprise” for “Future Management Holdings Group”, the highest award of the Europe Business Assembly for effective management and successful production activities.

Among the main priorities of our organization is to identify the leaders of industry, science and business internationally, your achievements in your profession were of a particularly high standard.

Remarkable production rates combined with a humanitarian mission, active charity and philanthropy also support your reception of these awards.

The European awards will not only show evidence of your high standard of management and the work of your team, but also present the opportunity for new business relationships, and assist in implementing the most ambitious business projects.

We wish you good health, strength and success for the future.

May you have the best of luck with your worthy endeavors.

Yours sincerely, President of the Europe Business Assembly - Professor John W. A. Netting

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Let us introduce Mr. Fouad Makhzoumi In 1984, a company controlled by Mr. Fouad Makhzoumi, acquired a substantial interest in a UAE based pipe manufacturing and trading business. Under Mr. Makhzoumi’s leadership and industrial expertise what became the Future Pipe Industries Group, which is now wholly owned by Future Group Holdings, has grown into one of the world’s largest producers of composite pipe systems and is now a global player in its scope of activities with specialized subsidiaries in four continents.

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r Fouad Makhzoumi was born in Beirut, Lebanon, in 1952. He received his preliminary and secondary education at the International College in Beirut and then he obtained his undergraduate (1974) and Master of Science degrees (1975) in Chemical Engineering from Michigan Technological University United States of America. Mr. Makhzoumi was appointed a Commander of the Order of Merit of the Republic of Italy in 2013, and received the Socrates Oxford Annual Award in 2014 by the European Business Assembly (EBA) in Vienna. MrMakhzoumi has received many other awards and trophies, including: • International Desalination Association (1997) • National Press Club of Canada Foundation Ottawa – Ontario,(2009) • Canadian Lebanese Community – Edmonton, Canada (2009) • Islamic Lebanese Canadian Association – Montreal, Canada (2009) • The Arab Organization for Administrative Development – Arab League and Tatweej Academy (2011) • The Lions Club – Beirut (2012) • Press Club - Beirut(2012) • Office of the Mayor – President City of Baton Rouge-Parish East Baton Rouge – Louisiana - USA (2013) In 1975, Mr. Fouad Makhzoumi, as a new graduate sough to realize his ambition in the Kingdom of Saudi Arabia. In the world of business, he has shown vision, initiative and, a readiness to take bold steps and to undertake adventurous projects. In Saudi Arabia, Mr. Makhzoumi played a strategic role in developing one of largest private industrial group of companies.

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As well as Future Pipe Industries Group, Mr. Makhzoumi controls a diverse portfolio of investments including: engineering; industrial; commercial; research; real estate; security; information; multimedia and publishing businesses. Together, these companies employ more than 3,500 people across the world, in the following countries: Lebanon, United Arab Emirates, Egypt, Oman, Qatar, Saudi Arabia, Italy, France, The Netherlands, Germany, UK, Spain, Morocco, U.S.A., Thailand, India, Indonesia and Singapore.

Mr. Makhzoumi has been the Executive Chairman of Future Pipe Industries Group since 2003 and is currently its Chief Executive Officer. He has also been the Executive Chairman of Future Group Holdings since 1982.

Public Activities In addition to his achievements in the world of commerce, Mr. Makhzoumi has, throughout his career, participated in a wide range of public and political activities. He believes his economic and business experience gives him particular insight to political and social situations, not only in Lebanon, but also in the Arab World in general; and, he has long been viewed as a prominent figure in international, political and diplomatic circles. His involvement in public affairs intensified after the Lebanese civil war ended and in 2004 he founded the National Dialogue Party of Lebanon, which he has acted as its Secretary General since its foundation.

Other key public activities include: • A member of the Board of the US Middle East Project (USMEP) (1994-) • President of the International Desalination Association (19951997) • Vice Chairman of the Institute for Social and Economic Policy in the Middle East at the John F. KennedySchool of Government at HarvardUniversity (1995-1998) • Member of the International Board of the Council on Foreign Relations: US/Middle East Project (1996-) • Member of the Board of the Arab Reform Initiative (ARI) (2006-) • Member of the Center for Strategic and International Studies (CSIS) (2008-2010)

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• Member of the Board of the International Council for Middle East Studies (ICMES) (2009-) • Member of the International Institute for Strategic Studies (IISS) (2009-) • Member of the De Gasperi Foundation (2012-) • Member of the Board of Trustees of the Buck Institute (2013-) • International Ambassador of the Regional CSR Network (Bahrain) (2014-) Mr. Makhzoumi has made many contributions and appearances in the print and broadcast media, including the “Alhiwar” newspaper which he founded in 1999 the first newspaper to issue a daily electronic newspaper, in English and Arabic, which is the “Mirror of the Arab Press”.

He sponsored a study on “Harnessing Trade for Development and Growth in the Middle East”, prepared by a group of experts selected by the US Council on Foreign Relations.

H u ma n i t a r i a n and Philanthropic Activities Mr. Makhzoumi devotes much of his time and resources to charitable deeds.In 1997, he founded the Makhzoumi Foundation, a private Lebanese non-profit organization that contributes to vocational training, health care and micro-credit programs to Lebanese civil society development. In 1998, a sister Foundation, “Makhzoumi Foundation (USA) Inc.”, was set up to give a wider support to the Lebanese Foundation.

The Micro Credit Loan program provides small loans to individuals in order to help them finance their own sustainability in life. This program has already provided over 6,500 loans to underprivileged Lebanese families to start or expand small businesses through capital loans made on the basis of their sound planning rather than the financial collateral normally required from borrowers. The micro credit loan program is carried-out with, primarily, the financial support of the Founder, Mr. Makhzoumi, and of international organizations, such as USAID and LIM. In addition to this loan program, the Makhzoumi Foundation operates vocational centers in which thousands of Lebanese citizens are provided with training in languages, computer skills, as well as internet skills, hardware repairs, hairdressing, barbering, beauty, photo and video shooting, plus other vocational skills. It also provides health care through its clinics across the country. Moreover, the Foundation implements different projects related to environment and sustainable development. Any Lebanese citizen is eligible for these programs and acceptance criteria are based on the basis of ”need, not creed”. So far, over 250,000 people have benefited from the Foundation’s Programs.

Mr. Makhzoumi has forged strong relationships with a number of leading educational institutions and has established a number of endowments, including: at the University of Alberta, Canada, the “Makhzoumi Lebanese Studies Endowment” (2009); at the American University of Beirut, the “Rami Makhzoumi Chair in Corporate Governance” (2011) and at the International College in Beirut yearly awards for Leadership and Excellence (2012). He is a supporter of the Lebanese American University (LAU); and the American University of Sharjah, UAE, where “The Makhzoumi Foundation Scholarship for Entrepreneurship in Industry” was set up in 2014.

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In Oriole of glories Fouad Makhzoumi :

articles, meetings, interviews

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THE OIL & GAS YEAR | ABU DHABI 2013

Life as we know it interview with fouad makhzoumi

Future Pipe Industries is a Dubai-based pipe manufacturer, with plants in the GCC, the greater Middle East, Europe, Asia-Pacific and the US.The company is also a systems designer of anti-corrosion fibreglass piping – a material quickly becoming the first choice for pipelines in the oil and gas industry.

What are the relative advantages of using fibreglass as a pipeline material?

As operating environments in the oil and gas industry become increasingly demanding as a result of higher pressures, higher levels of corrosion and higher general wear, materials that can better withstand these environments are becoming sought-after more and more.

Fibreglass offers corrosion-resistant properties and is by far the most efficient pipe system. When you take pipelines made from steel, ductile iron or concrete and install them in a tough terrain, there will be corrosion.The only protection possible is to compensate with an electric current. If metallic piping is used in oil wells, it normally takes a few years before it must be replaced due to corrosion.

Fibreglass, on the other hand, is essentially there to stay, operating for up to 50 years under normal working conditions. It has a high strength-to-weight ratio, which translates into lower transportation and installation costs compared with traditional materials such as concrete or steel. It can also withstand high loads, pressures and temperature, and is resistant to hydrogen sulphide and other chemical applications. This is especially important in the UAE, where reserves are producing increasingly sour oil and gas.

Are there any drawbacks to constructing pipelines out of fibreglass?

There are some technical limitations to the material, one of which is temperatures of more than 150 degrees Celsius. However, for normal applications, fibreglass is an efficient alternative. Given that corrosion poses major problems for conventional pipe material in high-pressure upstream applications, the non-corrosive characteristic of fibreglass has made it the material of choice. It offers significant savings because fibreglass requires little to no maintenance. A recent report by independent business information provider Visiongain stipulated that $ 18.72 billion was spent on the prevention of oil and gas pipeline corrosion in 2012.

Are fibreglass pipes being received positively by the global marketplace?

The market size of the pipe business stands at approximately $150 billion worldwide, with an estimated growth of 5 percent each year.

This figure includes everything from fibreglass, polyethylene and metal pipes to concrete. Worldwide, fibreglass pipes account for $5.3 billion, growing at an above-market average rate of 6.8 percent, which is a testament to its accelerated adoption by the end users over other material.

The GCC has the largest penetration rates of fibreglass - 22 percent from an overall pipe market perspective, and of 5 percent within the oil and gas industry itself. However, we estimate this rate to grow to as much as 20 percent.

What are some of the regional expectations associated with the pipeline industry?

Today, some 60 percent of our business comes from the GCC region, but we expect to see that number at 50 percent by 2015. Abu Dhabi in particular aims to further expand its production capacity from 2.7 million to 3.5 million barrels of oil per day by 2017. We will therefore see an increase in pipeline construction projects and greater demand for expertise and capacity.Asa result,there is going to be an increased emphasis placed on delivering more efficient products.

What is the role of pipelines in the UAE’s infrastructure and hydrocarbons industries?

The expansion and development of oil and gas operations, infrastructure projects, urban areas and populations would be impossible without pipeline systems. They are the arteries of our societies, transporting our water, sewage, gas and crude oil, without which life as we know it would be unsustainable. The UAE is witnessing a rapid population growth and urbanisation along with the expansion of energy-intensive industries, which are key to fulfilling the UAE Economic Vision 2030. Based on the estimate that for every newborn baby there is a need for two metres of new pipeline,there is currentlya never-ending supply of work to be done.

Most recently, the prime minister of the UAE and ruler of Dubai, Sheikh Mohammed Bin Rashid Al Maktoum, laid out plans for the Dubai Vision 2020, an ambitious infrastructure development project that will require the construction of more roads and power plants and the delivery of more fuel and water. Pipelines are expected to play an important part in this plan.

IN F I G URES Total length of pipeline installed globally

160,000 kilometres Percentage of large diameter

fibreglass market in GCC region

26 percent Founded 1984 Number of staff worldwide 3,000

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May 2013 Oil&Gas Midle East

Piping hot

THE REGION’S MAJOR OIL & GAS PRODUCERS ARE IN THE MIDST OF A MAJOR SHIFT IN PIPELINE MATERIALS. CORROSION RESISTANT FIBREGLASS AND SPECIALITY PLASTICS HAVE BECOME THE NEW MATERIALS OF CHOICE FOR UPSTREAM OPS.

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ith access to the approximately 50% of the world’s oil and gas reserves, the Middle East region finds itself under increasing pressure to deliver to a resourcehungry market.

However, as time passes access to such reserves is becoming more difficult, and hence more costly, prompting an analysis of every aspect of the industry in a bid to improve efficiency and cut unwanted outlay.

The pipeline sector – an unheralded but integral aspect of the industry is one such tranche of business which continues to push ahead with improvements. In the upstream oil and gas sector, any concerns over a lack of investment appear unfounded, as projects continue to be rolled out.

Just last week, an $18bn pipeline project was announced between Iraq and Jordan. The 1,043 mile-long dual pipelines would be capable of transporting 1 million barrels of oil and 258 million cubit feet of gas per day from Iraq to Jordan’s port city of Aqaba.

Officials claim the line, which includes a sub-line to Jordan’s refinery at Zarqa, will be operational by 2017.

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January saw the start of the $518 million Iraq Crude Oil Export Facility Reconstruction project, for the South Oil Company of Iraq. This was completed by Leighton Offhsore and is designed to stabilise and expand Iraq’s crude oil export facility, by constructing a pipeline that connects crude oil storage facilities to the offshore crude oil export terminal in Fao, Basrah in southern Iraq. The project involved the development of two offshore valve station platforms, a 75 kilometre 48” oil pipeline and a Single Point Mooring system.

Closer to home, in June 2012, Saudi Arabia and the UAE opened new pipelines bypassing the Strait of Hormuz in order to secure exports following Iran’s renewed threats to close the shipping lanes. The UAE’s pipelines runs from oilfields near Abu Dhabi to the port of Fujairah. The 370-kilometre pipelines has a capacity of 1.5 million barrels/day, equivalent to 65% of the country’s exports. Once again, as with many elements of the oil and gas industry, there is an every-present demand in terms of development of new technologies.

One such tranche is the use of composite fibreglass materials, which, as Fouad Makhzoumi, chairman of Future Pipe Industries explains, has become increasingly prominent, given its technical and economic advantages.

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FPI, which has worked in a number of oil and gas upstream and downstream sectors, including the Sayyala pipeline for Petroleum Development Oman (PDO), the Jubail refinery and Assab and Sahil fields for ADCO in Abu Dhabi.

“FPI is a leading producer of fibreglass pipes and one of the fastest growing companies in the fibreglass sector with a wide range of products covering many oil and gas applications across the Middle East. Our composite corrosion free fibreglass cover applications in the exploration, production and transmission. Our high pressure fibreglass pipes are used on offshore platforms and rigs and floating production and storage of oil (FPSO), oil fields, flow lines, injection lines and disposal lines,” says Makhzoumi.

As with other sectors of the oil and gas industry, the twin pressures – time and money dominate thoughts. FPI utilise an integrated engineering approach and bespoke products, providing manufacturing, supply, engineering, site installation, field support and fabrication support.

The strains of operating at high-pressure and temperature mean that technologically, the materials used must be of high quality.

Composite fibreglass has the added advantage of being not just able to withstand these factors, but to withstand H2 S to a certain level of concentration.

“As the current conditions for oil and gas production get more challenging, the key to our success has been in understanding the challenges, predicting the market changes and investing in technologies to provide reliable solutions to our customers”, said Makhzouni.

The growth in fibreglass pipes has been increasing over the last 10 years. Primarily this is because of its physical properties of superior anti-corrosion, safety, and longer life cycle cost-effectiveness, gives it an innate advantage over traditional materials used in the oil and gas sector in the 1960’s, 70’s and 80’s. Fibreglass pipes can also compete effectively in the large diameter pipe market, in high-pressure areas and in elaborate pipe networks extending over several thousand of kilometres.

According to the World Corrosion Organisation, corrosion costs $2.2 tn to the global economy, and almost 45% of the cost Approximately 45% of the annual $2.2 trillion cost attributed to corrosion each year is from O&G infrastructure.

“As the current conditions for oil and gas production get more challenging, the key to our success has been in understanding the challenges our customers are facing” Fouad Makhzoumi, chairman of Future Pipe Industries is attributable to the oil, gas and petrochemical industries. Whilst there is no doubting its competitive advantages, Makhzoumi believes a disadvantage currently with fibreglass, is that it isn’t reaching its full potential, with the industry yet to take full advantage.

“What we could say is that the fibreglass industry in general, is that the product is in its early stages of lifecycle and users haven’t captured its full value.

“The fibreglass pipe market size within the oil and gas sector is estimated to be $1bn, with the majority in the US. And with the positive results coming out of the country, we have been witnessing lately a positive adoption shift to fibreglass products in the Middle East as well and we expect these adoption rates to improve as we move forward,’ he said.

The growth in fibreglass technology was illustrated recently when FPIG recently acquired 100% of Specialty Plastics, Inc from ITT Exelia.

SPI, based in Louisiana, US, is a leading supplier of fibreglass pipes and systems for offshore platforms and marine vessels.

The takeover is a strategic addition to FPIG’s composite pipe business and adds significant new offering to its already extensive product range extending FPIG’s global capabilities in the offshore rig and floatation production and storage of oil (FPSO) market.

“We are excited about this new opportunity,” said Makhzoumi.

“The acquisition of Specialty Plastics is a strategic fit to FPIG that will complement its product offerings, geoGetty Images www. arabianoilandgas.com May 2013 Oil&Gas Middle East 81 TECHNICAL FOCUS Traditional high-grade steel is being replaced by fibreglass piping. Major pipeline projects are underway throughout the MIddle East. graphical reach and customer sectors.”

Makhzoumi adds the utilising SPI’s solutions, people and expertise will extend FPIG’s ability to deliver competitive services. “The acquisition of SPI will further enhance our existing manufacturing and sales operations in the US and expand our reach within the oil and gas sector,” he said.

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The GCC has the largest penetration rates of fibreglass from an overall pipe market perspective, and 5% within the oil and gas industry. FPI claims this number could rise to 20% in the coming years, driven primarily by the vast increase in exploration and production, both onshore and offshore, which ensures a substantial need for pipe systems, which can efficiently transport resources directly to consumers.

Away from the UAE, there are big projects underway Saudi Arabia, which will require extensive input from pipeline companies.

Larsen & Toubro learned this week it was the lowest bidder for the $800 million Saudi Aramco Midyan Gas field (EPC) project in Saudi Arabia, according to reports. The contract is to build it’s the plant’s upstream processing facilities including a 135 km pipeline to transport to the power plant in Saudi Arabia.

The Midyan gas field, located in Tabuk province will produce 75 million ft3 /day gas concentrate over a 20-year period. The output will be transported to the coastal city of Duba, 135 km away.

Meanwhile, the Abu Dhabi Maritime Operating Company (Adma-Opco) is currently 20% New Materials cost of corrosion attributable to the oil, gas and petrochemical industries. preparing the evalutation of technical bids to be submitted in Q2 2013, on the EPC packages of the Al-Nasr Full Field Development project offshore Abu Dhabi.

Technologically, firms continue to drive for better materials. In March, Sabic began manufacturing thermoplastic grades at its affiliates in Jubail and Yanbu in Saudi Arabia, which could revolutionise the domestic pipelines sector.

Named Bimodal High Denisty Polyethylene (HDPE), the qualities include safety, costeffectiveness and earthquakeresistant with a good tensile strength. Being lightweight means it is also requires much less energy to produce and transport.

Sami Al-Osaimi, General Manager, Global HDPE Business Unit, SABIC Polymers Strategic Business Unit, said, “SABIC’s HDPE range offers exceptional value and is superior in many ways to similar imported products. They deliver exceptional low sag performance for large-diameter pipes and pressure pipes with a low standard dimension ratio.’

With the demand for oil and gas set to increase ever more, NOC’s and other players will need to adopt new methods to access resources from nonconventional deposits. This means higher temperatures, pressure, increased presence of H2S and ultimately more costly. Any advance which meets these challenges will be welcomed by the industry, as there is no doubt the pipeline market will not be standing still.

As Makhzoumi concludes, “As operating environments in these industries become increasingly challenging as a result of higher temperatures, higher pressures, higher corrosion and higher wear, the demand is increasing for materials that can better withstand these environments.”

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The Hawkamah Journal Issue 01 2014

THE GOVERNANCE JOURNEY OF A FAMILY BUSINESS interview with fouad makhzoumi

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e would like to explore the corporate governance journey of the Future Pipe Industries. And we would like to start from the very beginning, and we would like you to take us through the early days of the business.

What is now Future Pipe Industries was founded in 1984 in Dubai, after I recognised the immense opportunity in the pipe business, especially in the desert where there was a need for water distribution and also petrochemical production. We acquired the Eternit business in Dubai, which had been incorporated back in 1971 with the support and blessing of his Highness Sheikh Rashid bin Saeed Al Maktoum and which commenced production in 1973. Since then the business has concentrated on meeting the needs of the region during its phenomenal growth over the past thirty years. We have grown alongside it and Future Pipe Industries’ operations now span over twenty three countries, with over 20 sales offices and 13 pipe manufacturing factories, as well as offering services varied from design to engineering, to after sales support. The group has its own sales and marketing, internal audit, finance, legal communication & IT departments. Business grew and expanded with over three thousand employees and hundreds of customers, government bodies and private large companies.

Corporate governance in the Gulf has come a long way since the late nineties, driven by increased public governance and greater awareness of higher standards. Our responsibility within FPI has always been to develop effective corporate practices which will also facilitate innovation and support business operations.

Let us turn to family involvement. It is often considered that family businesses do not start out as family businesses, but become so over time. When did you start viewing your business as a family business? A number of family members became involved in the business over the years, starting from 1980s.

Did you encourage or discourage family involvement in the business? And how did FPI manage the process of hiring family members?

Over time and after several restructurings, and given the growth in the pipe industry and the opportunities it offered, I managed to bring in many of my university friends and my colleagues from Saudi Arabia to work with me. At a later stage I recruited brothers, in laws and cousins, with relevant experience of course.

I didn’t bring in the fresh graduates. I wanted them to work in other companies first, to gain experience before joining FPI. To an extent we have therefore always been a family business.

Progression into positions was according to merit and experience, not because of being a relative, as this was no privilege.

The same goes for my son Rami. Rami was introduced to the factories from a young age and saw the business grow, even when he was still at college studying Business, I used to take him to attend negotiations for joint ventures and company acquisitions, to see things on the ground and not only through books.

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When Rami joined the company he had to go through all the departments from procurement to manufacturing, to sales, to engineering, and so on. It was only after all training was done and he had attended the office and progressed in his skills that he earned his position as CEO, and in due time. When Rami took the lead he brought in a young team consisting partly of some of his childhood friends.

You always have confidence in family and friends to be by your side as they have your interests in mind, thus the interests of the business. Also they would always want to prove they are in such positions because they earned it and not because of their relation to the boss.

By the 1990s you had three young children, one of whom would later become the CEO of the company - when did you start thinking that you would like to pass the business on to the future generations?

There was no plan in my mind to compel any of my kids to follow suit. When Rami wanted to choose his major at university I took him around to visit many universities in the US other than the universities in London to see what was on offer and decide.

It was actually Rami who decided to join the family business after a lengthy consideration. In 2003 my decision to appoint him as my successor was taken after a lot of thought and after watching him grow and perform in an increasingly mature and assured manner. Rami flourished with the responsibility, bringing passion, vision, ambition and great humanity to his administration of business, and it is under his leadership that FPI became as successful as it is today.

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Let us turn to the grooming process – in the book “The CEO’s journey” – it is mentioned that you gently started grooming Rami without being explicit about it, taking him to meetings with people such as Pope John Paul II and Sir John Major.

To what extent was this grooming as a father as opposed to grooming as a business man? What advice would you give to other business owners on how they should start grooming the second generations?

I believe that it’s our responsibility to teach our children about life, the good and the bad, you guide them through and advise them. I believe if you succeed in having your children not making 50% of the mistakes that could have been done, then it is a job well done. Grooming kids for life is grooming them to face it all in day-to-day life and in business.

I am a great believer of preparing the young generation from early age. To get them involved in the history of the business and the achievements, as even if they decide not to work in the business, yet one day they will be sitting on the board as shareholders. So yes I am a believer in involving the second generation at early stages. I even believe in passing on the helm when the older generation is still able and capable to guide the younger generation through their first few years, so by the time they want to retire or leave this world, they know that the business is in good hands. I am a believer that the second generation will bring new original ways and up-to-date methods to move the company forward.

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And once Rami joined the business, what role did the nonfamily employees play in the grooming process?

From the factory floor, to the executives reporting to him, to the board members, Rami was just a unique guy that earned great respect and a leadership role at such a young age. In each department he was advised, but he conducted his own research too. Of course feedback was given by the heads of departments to the CEO, who at the time was me. We also had many regular discussions to make sure that all questions Rami had in mind were answered. Rami was an observer and a good listener and that helped him progress through all areas. And I did not offer Rami to take full office until I was fully satisfied that all was in order.

Businesses truly become family businesses when passed on to the 2nd generation, but many CEOs of family businesses find it extremely difficult to let go. However, you suggested to Rami in 2003, when he was 25 years old, that he should consider becoming the CEO of the company. Why do you think you were able to make this decision to pass on the business when many others cannot?

Passing the business on to your family is as much a matter of personal preference as a commercial decision, and one has to think that there is time when you let go, and better let go when you are still alive, still around and can still play a role even from the back seat. Thus ensuring that the business will succeed after you leave.

The overriding concern is whether any family member is both interested and has the right skills and experience, however, Rami understood the culture of the company, and he was very good at taking a long-term view of what is best for the business.

Rami was even the one who suggested diversifying the family’s personal investments independently of the business. He brought consultants to start a family office; to put everything in proper working order so as to manage the family business and assets and ensure everything falls in place for direct family, and other family members who work in the group and those who don’t. He was the one who was behind introducing the disciplines to treat the company as a public one; the introduction of advisory board, stricter rules and transparency was one of the major fundamentals initiated by Rami. Rami had a lot of ideas that he brought to the business such as Corporate Social Responsibility and he tackled it from all aspects, responsibility towards employees (vigorous training and workshops for advancement), towards customers (better communication), towards upper and lower management to improve company performance as one team, towards the communities of the countries they are in and towards the environment, making FPI a leader in that field.

In the book “The CEO’s Journey”, there is a dialogue between you and Rami at the time when he was taking over as CEO:

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Fouad: “Rami, you are coming from a different generation. So the management is going to reject you. The only thing is to prove to all of them that you deserve the post, not because your name is Rami Makhzoumi. You have to engage all these people, you have to give them credit where it’s due, and you have to be very firm where it’s needed.”

Rami: “Give me time… And don’t get involved.”

A transition process such as this obviously requires that the new CEO performs, which he did, but what did this require from you as the current Chairman and former CEO? How did you manage not to get involved? Did clients, suppliers, staff and other stakeholders initially come to you?

At the beginning they did, but I directed them to Rami emphasizing that it’s Rami who was leading FPI now. It did not take long before all realized that there was a new skilled CEO, and very rarely was I bothered after that. As for customers and suppliers they knew Rami, he was not a new comer, he had good relations with them, as I had done the introductions years back and slowly shifted the relation to Rami, so it was an easy transition.

As Rami said, to be able to prove himself, he had to be left alone, and not to be seen as my son. To help him do that, I took a step back and watched. Of course I was always there to give advice if needed, but it was discretely and never obliging Rami to abide, but left the decision to him.

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Rami became well-known within the business community as a visionary leader and as the driving force behind corporate governance reform in FPI, but he was also instilling governance on the family side – he instigated the Family Office as well as the Makhzoumi Family Constitution. He also started preparing the business to go through an IPO and consequently a Board was set up. What was your view on these developments?

What were the costs vs benefits?

As with every new thing, the old generation has its own views of how things should proceed. But Rami had been to London Business School for his Masters, he was involved in the Young Arab Leaders (YAL), and the Young Arab Presidents (YAP) associations, he was a speaker and a panelist in family business conferences, he was exposed to all the new challenges facing the modern world and he had a better vision of what should be done. At the end everything made sense.

In regards to the family constitution it proved to be the best thing that Rami did for the family, as it put us on the right track to move forward. As for the changes in the company, putting things in place; whether in HR, Communication, or IT, it was all a step forward towards his 2020 Vision which we are still working towards to this day.

As for the Advisory Board, it has benefitted us tremendously as we have members from the Middle East, Europe and US, who bring a vast knowledge and expertise to the table with a profound advice. Seeing things from outside the box is an asset.

Any cost here is justified.

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Additionally, there were several enhancements that happened on the management and on the board level. In particular, we have enhanced the risk framework and the risk management.

Going through the IPO process, of course it was a costly exercise, and even with the IPO not coming through, the procedure itself helped us develop many of our current processes and practices to improve the efficiency, the transparency and the disclosure and enabled us to truly behaving like a public company. At the end the IPO did not go through as the decision was to withdraw at the beginning of the Financial Crisis; this proved to be the right decision during those challenging times.

What are the characteristics you most value in an independent non-executive director?

In particular, the policies and procedures that were scattered all over the company were governed in one framework in a way that adds value to the overall structure. We have clearly defined the roles and responsibilities between the board and the management, in particular to have a greater, enhanced sense of accountability and responsibility between the two levels.

You are the Chairman, you are the founder, largest shareholders – how do you conduct board meetings to ensure that the board does not become a group of yes men?

How has the board added value to your business?

The board of directors in a family business is a structure that can help steer a business and provide direction for the organization. The board has a strategic function in providing the vision, mission and goals of FPI. Each of our board members has been appointed for their substantial experience and deep expertise, including backgrounds in governance and engineering, as well as energy and water resource management. With the board in place the risk and remuneration governance continued to be very important aspects.

Being independent! That is the most important value. They must remain highly independent and ask challenging, often difficult questions. Being away from the day to day issues, help them see the bigger picture. It is like having a Bird’s eye view, you can analyze better and point out things that people from the inside cannot. Independent non -executive directors need to bring a truly independent perspective, champion their area of expertise but not hide behind it.

Well, when you are used to the old way of doing things it will be very difficult to change from that habit. But when you have an independent board that is appointed because of their expertise and experience you cannot ignore their recommendations, and you have to listen to their views. Mostly board level decisions are collective decisions, even if some decisions are not to the liking of some, the majority rules.

Looking at FPI’s history, what do you think are the key takeaways for other business owners?

For a business to succeed you have to believe in it. To make it grow you have to grasp every opportunity. To become a market leader you have to be innovative, to do so you need to keep on reinvesting your profit into the business, into new products, new machines, R&D and of course the most important asset, your employees.

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In previous issues of the Hawkamah Journal, we have asked other prominent business leaders such Dr Helmut Maucher, the former CEO and Chairman of Nestle, about the role of business in society. What are you views on this?

A flourishing society depends on flourishing businesses. The role of business in society is a legitimate aspect of business leadership, an integral part of successful management practice and sustainable business building. Company leaders are not only leaders of business but leaders in society.

Philanthropy is an important tool to support society by empowering the individuals to be selfindependent, like what the Makhzoumi Foundation is doing in Lebanon. Also to give back to society charity is not the only means; you can give back by contributing to its cultural, educational, and political development.

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Sitting on many boards, like the Institute for Social and Economic Policy in the Middle East, the Harvard’s John F Kennedy School of Government, and the international board member of the Council on Foreign Relations, to name a few gives me the opportunity to be a contributor to the development of the national and international societies.

Corporate Governance is a subject close to Rami’s heart, and after his passing away, a chair in his name for Corporate Governance was set up at AUB in Beirut. We are hopeful that with the book the Journey of a CEO will lead to more awareness of such an important subject.

Furthermore, corporate social responsibility has now become a primary concern at Future Pipe Group. A Vice-President CSR has been recently appointed to dedicate time to ensure that the business oriented activity does not ignore, at any time, its social responsibilities.

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Lebanon on the brink May 16, 2014 1:27 pm

By David Gardner

Political gridlock, economic torpor and the machinations of pro-Syrian Hizbollah – the non-state regional superpower – have once more pushed the crossroads of the Middle East to the edge of collapse

©Reuters Beirut, December 27 2013. The aftermath of the car bomb explosion that killed former Sunni minister and strategist Mohamad Chatah

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ust after last Christmas, Mohamad Chatah, senior strategist to Saad Hariri, a former prime minister of Lebanon, was making his way to a meeting within the heavily guarded area of downtown Beirut occupied by the Sunni-dominated opposition. Unlike most Lebanese politicians, who travel in convoys of armoured SUVs bristling with bodyguards, Chatah was in his own, almost ostentatiously standard, sedan. He took the same shortcut he always took. Twenty minutes before he arrived, CCTV cameras show a car arriving near this road to the Hariri complex to replace another car parked there overnight. The drivers of both vehicles knew precisely where the cameras were and how to evade recognition. When Chatah got there, the 30kg explosive charge inside the second car was remotely detonated.

It killed him, his driver and four bystanders, one of them a young student out for an early morning jog.

Another day, another Beirut bomb. Beirutis seemingly shrugged it off. By New Year’s eve, nearby bars and restaurants that had had their windows and doors blown in were gleaming once more – and overbooked. The almost adjacent Music Hall, celebrated for its drinking, dining and dancing to eclectic eastwest fusions of live music, throbbed frenetically. The show must go on.

Inured to long years of civil war, serial invasions and occupations, and a string of high-profile assassinations for which no one has been brought to justice, the Lebanese have an unhealthily high tolerance of chaos. Amnesia is considered almost a civic virtue and the absence of a state able to provide a modicum of security is paraded as a vindication of the country’s freewheeling spirit: aggressively mercantile, interspersed with lots of partying but punctuated by slices of mayhem.

For a long time – through the sectarian savagery and relentless destruction of the 1975-90 civil war, through the Israeli invasions of 1978, 1982, 1996 and 2006, throughout the 22-year Israeli occupation of the south that ended in 2000 and 29 years of Syrian occupation that came to an ostensible end in 2005 – this was a heady brew, the bubbly in the fabled resilience of the Lebanese.

Now, despite occasional signs of fizz, it has gone distinctly flat.

It is not just that Lebanon remains a state that often seems just hours away from collapse. It is that Beirut, the faded jewel of the Mediterranean that once touted itself as the Paris of the east, looks as though it is never going to recover its lustre. The physical resurrection of Beirut and much of its hinterland is real enough. But can it ever make anything of itself? f o u a d ma k h z o u m i . I n O riole of glories

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Lebanon is saddled with a political class of warlords in suits, political entrepreneurs who treat their people not as citizens but as cattle to be herded inside the country’s 18 officially recognised sects. Instead of individual rights with guarantees of religious and political pluralism for each community, rights are vested in the sects in ways that their leaders, often the scions of political dynasties, easily usurp and then trade with external powers seeking to bolster their interests in the region.

Shi’ism the Assads made the backbone of their crumbling security state. Qusair was also a staging post for arms smuggled from Lebanon to the rebels. Assad forces had failed several times to clear this corridor. In their new role as shock-troops for a Syrian regime that is morphing into a well-armed militia network under Iranian guidance, Hizbollah also cleared rebels from Syria’s side of Lebanon’s border in the Qalamoun hills in a just-concluded battle that began last November.

Yet eclipsing this quasi-feudal cast of grotesques is the long shadow of Hizbollah, the Shia Islamist paramilitary movement, born out of Iran’s 1979 Islamic revolution and Israel’s invasion of Lebanon in 1982. The spearhead of Iran in the Levant, it has grown from being one of the states-within-a-state that Lebanon seems to spawn prodigally, to becoming clearly, if not always visibly, more powerful than the state. ...

Sayyed Hassan Nasrallah, the leader of Hizbollah, calls these intrusions into Syria divinely sanctioned resistance, protecting the Shia and other minorities from the savagery of Sunni jihadi extremism. In 1998, on one of three occasions I interviewed him, Nasrallah argued passionately that Iran, under the reformist leadership of then President Mohammad Khatami, would light the path of Islam and eclipse obscurantists such as Osama bin Laden. Yet Hizbollah, licensed by Syria during its occupation of Lebanon as a resistance movement to Israel’s occupation of the south, has always thrived on conflict. And Nasrallah has made his fighters the foot soldiers of Ayatollah Ali Khamenei, Iran’s Supreme Leader, under the wing of the al-Quds brigade of its Islamic Revolutionary Guard Corps. The corps’ leader, Qasem Soleimani, calls the shots across the enlarged Syrian battlefield and helped build this bastion on the Mediterranean for the Islamic Republic. “They have always been a part of the Revolutionary Guard,” says one European ambassador in Beirut with deep experience in the region. “If it’s a sin then it’s an original sin.”

Last May, Hizbollah openly committed the full might of its militia to the civil war in Syria on the side of Bashar al-Assad’s dictatorship. This fateful decision, taken in Tehran, has attached Lebanon to the Syrian battlefield, which now stretches from Beirut to Baghdad, creating another arena for the vicious struggle within Islam between Sunni and Shia.

Syria is the frontline in this fratricidal conflict, reignited after the Anglo-American invasion of Iraq in 2003 that brought the Shia majority there to power and lengthened the regional reach of Iran – to the indignant consternation of the west’s Sunni allies in the Gulf, led by Saudi Arabia. In Lebanon, the Sunni-Shia fight has now almost eclipsed antagonism between Muslims and Christians – the main faultline of its civil war – with the latter now divided between the two Islamic camps.

While the petty rivalries of Lebanon’s politics – with lead players endlessly changing their colours and coalitions – might be dismissed as a parochial psychodrama, the country seems unable to escape real and predatory regional menace, with neighbouring Syria and Israel, as well as Iran and Saudi Arabia, the most deeply involved external players in Lebanon’s recent past. The difference now is that Hizbollah, built on a reputation of fierce resistance to Israel and US-led policies in the Middle East, has taken a starring role as a regional protagonist.

This time last year it was Hizbollah that enabled the Assad regime to take al-Qusair, a small Syrian town astride the strategic Homs Gap that links the capital, Damascus, to the northwest coastal heartland of the minority Alawites, the esoteric branch of 18

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Sayyed Hassan Nasrallah, leader of Hizbollah, hails followers from a hoarding in Beirut

Inadequately classified as a non-state actor by social scientists and diplomats, Hizbollah is really a sort of non-state hyperpower. “They are behaving like an imperial power,” says one perplexed Lebanese Shia intellectual. “Hizbollah has taken Lebanon into a regional confrontation, and we will pay heavily for it whether they win or lose.”

It is hard for anyone who is not an Arab to grasp what Hizbollah signified at the peak of its prestige – after forcing Israel to withdraw from Lebanon in 2000 and then holding the region’s superpower to a draw in the last war in 2006. That is why it is so difficult to credit its claim that propping up the Assad regime is an act of “resistance” – while a predatory clan clings to power by crushing a civic uprising against tyranny with ballistic missiles and barrel bombs, artillery barrages and air strikes, industrial-

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scale torture and systematic starvation, using incendiary bombs on school playgrounds and cluster bombs on bakery queues.

Nasrallah, shrewd and cerebral as well as fiery and charismatic, has been virtually in hiding since 2006, fearing assassination by Israel. Every time he graces the nation with his soaring, remotely delivered oratory, celebratory gunfire rings out across Beirut. But his turban has started to slip. ...

The Chatah murder last December was read by many as a message, delivered just as the UN-backed Special Tribunal for Lebanon was due to open in The Hague. Charged in absentia were five Hizbollah operatives, accused of carrying out the February 2005 assassination by truck bomb of Rafiq Hariri, the former premier and father of Saad. That was a sort of regicide that changed the course of Lebanon.

Mohamad Chatah: a leading Sunni figure whose assassination last year has been blamed on Shia forces

Hariri was the architect of the postwar rebuilding of Beirut and Lebanon, though he failed in its political reconstruction. He was a Sunni, as all prime ministers must be in Lebanon’s politico-sectarian equation, alongside a Christian president and Shia speaker of parliament, but as the primus inter pares of the triumvirate. A construction tycoon who diversified into banking and media before entering politics, with international allies such as Jacques Chirac, then president of France, Hariri was the only real obstacle to IranianSyrian designs on Lebanon. Critically, in the autumn of 2004, he moved his Sunni coalition into alignment with Christians and Druze, a millennium-old offshoot of Shi’ism, which had reconciled with the Christians in 2001.

Saad Hariri: the son of Rafiq and leader of the Future Movement, who now lives in exile in Paris

The demonstrations that followed the Hariri assassination divided the country into two camps, named for the dates of their biggest rallies. March 8, built around Hizbollah, includes Amal, another civil war-era Shia militia, whose leader, Nabih Berri, is speaker of parliament, and the Christian party of General Michel Aoun, the messianic figure who lost a suicidal “war of liberation” against Syria and rival Christian militias in the last spasms of Lebanon’s fratricide in 1988-90. March 14 – the date of the rally that eventually forced Syria to withdraw its troops in 2005’s so-called Cedar Revolution – is a 12-party coalition built around Saad Hariri, leader of the mainly Sunni Future Movement, in alliance with the residue of the Maronite Christian militias of the Phalange and Lebanese Forces and, episodically, the Druze. Saad, a businessman thrust into a leadership role for which he was ill prepared after his father Rafiq’s assassination, lives in self-imposed exile in Paris to avoid the same fate.

Rafiq Hariri: Lebanon’s current volatility dates back to the killing of the Sunni prime minister in 2005

Political paralysis has been the norm since then. Paradoxically, the withdrawal of Syria and its troops led to Iran and its Arab allies getting their claws deeper into the Lebanese political fabric. Car bombs eliminated dissidents, from the writer Samir Kassir in the summer of 2005 to Wissam al-Hassan, intelligence chief of the Internal Security Forces (ISF) in August 2012.

An agreement in May 2008 was supposed to break the political impasse, as the diplomatically ambitious gas-rich emirate of Qatar distributed $44m in cash to Lebanese politicians all but locked up in a Doha hotel, not to mention an Airbus to Bashar al-Assad. The deal in effect awarded Hizbollah a veto on government policy.

That is but part of the Hizbollah strategy towards Lebanon’s Potemkin-republic institutions, which is to fill them, keep them empty or render them unworkable. For the Party of God’s thrust into Syria, exposing its Lebanese rearguard to reprisals (more than a dozen car-bombings since last summer and dozens of thwarted attacks), means it has had to tighten its grip at home.

Thus, it brought down a government it all but controlled in March last year by refusing to extend the mandate of Major General Ashraf Rifi, head of the Lebanese ISF, who is close to the Hariris and led the last security service it could not control. “They have a foot in every office in this country,” says a retired senior intelligence officer, “and they control all the intelligence branches.”

Michel Aoun: a Christian and former army commander, he has now allied his followers to Hizbollah in the March 8 coalition

Parliament limps along in a legal penumbra, after MPs awarded themselves extensions to their terms, because the constitutional tribunal empowered to adjudicate on proroguing the legislature was kneecapped by the withdrawal of Hizbollah trusties, leaving it inquorate and impotent.

As Hizbollah MP Ali Ammar put it in parliament: “We are not small and we are playing the game of the big players. We are big players and we have defeated big players.” Another void threatens to open in the current election of a new president by parliament, unlikely to happen soon since the March 8 MPs either cast blank ballots or fail to turn up. “You have to safeguard stability but create a vacuum in all the organs of state that might oppose you,” says the Shia intellectual. Nearly all commentary on the so far abortive contest is about personalities rather than policy.

Much of it centres on General Aoun, Lebanon’s would-be De Gaulle, who, at 80, and having turned on a sixpence, depends on Hizbollah to realise his unlikely ambition and become president.

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Walid Jumblatt: leader of the Druze community, he has shifted allegiances numerous times

Outside powers, so often blamed by Lebanese for their woes, are both meddlers and onlookers. The Saudis, backing March 14, and the Iranians, behind March 8, stood back last month to allow an uneasy and largely inoperable coalition government between the two sides. The US, France and the UK are trying to build up the capability of the army, Lebanon’s last functioning institution aside from the central bank, in full knowledge of Hizbollah’s hold on military intelligence and the growing co-ordination between regular troops and the irregular but highly disciplined guerrilla force. The Saudis, just as paradoxically, are trying to boost their influence with a $3bn grant to the army. “There is a worrying perception that this is a partisan army protecting the Shi’ites,” says the European ambassador. A former Shia minister and avowed foe of paramilitarism remarks ruefully that “the truth is the little stability we have here is because of Hizbollah”.

March 14 and the Future Movement, many of their cadres confined behind high walls under armed protection, cannot agree.

They say Chatah, a former finance minister and US ambassador, was murdered in reprisal for November’s twin suicide bombing of the Iranian embassy, claimed by Sunni jihadis allied to Syria’s rebels but blamed by Hizbollah on Saudi Arabia. That he was also the Future Movement’s strategist would not have improved his chances of survival. ...

Rafiq Hariri’s postwar project was to recreate Beirut as the capital market and commercial crossroads of the Middle East.

Sectarian deadlock, more wars and the rivalries of outside powers thwarted him. The project moved south, mainly to Dubai, now a major tourism, transshipment hub and budding regional financial centre that, in a cruel irony, scooped up many of the disillusioned architects of the Beirut project. That, too, is changing, as Gulf countries start driving out thousands of the Lebanese working there, targeting the Shia but catching others in the net, since they believe Hizbollah has been using its influence to arrange passports for coreligionists with Christian or Sunni-sounding names.

Much of downtown Beirut, the neo-Ottoman heart of the city’s resurrection, lies empty. Almost any building of consequence is surrounded by blast barriers and razor wire. Lebanon is leaching talent, as its best-educated youngsters seek lives and livelihoods abroad, leaving their less fortunate compatriots locked up at home as the clients of communal patrons. But even some older Lebanese, who have withstood everything the country has thrown at them, say belief in a different future here is futile.

“The Lebanese love novelty and think they are so modern, but they are killing the new,” says the (Sunni) owner of a bank, who is thinking of relocating to Istanbul. “You think you have a circle, but the circle of sanity gets smaller and smaller [as] every body ends up taking refuge where they feel safe, in their own sect 20

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with its outside protectors.” A successful (Christian) architect, expanding in the Gulf but many of whose projects at home are blocked, concludes that the only way forward is to play the game and stand for parliament, a proven path to patronage. “If you want to work in this country you need power,” he says.

Lebanon today seems unable to untie these knots. But when it does work, it can be a revelation: a country that survives on its wits. Banking and services (including tourism) are its specialities, going back in history to when it operated as go-between to the civilisations emerging along the banks of the Nile and between the Euphrates and Tigris rivers. Its hidden asset, invaluable for a nation making a living as an intermediary, is its diaspora, four times as numerous as the population of the country, with which millions of Lebanese keep close family and business ties.

The Lebanese economy is not really susceptible to conventional economic analysis. Lebanon is best seen, economically speaking, as the biggest island in a far-flung archipelago, stretching from Abidjan to Sydney, from Toronto to São Paulo, into the banks of Paris and the bond-dealing rooms of London and New York – wherever the irrepressibly entrepreneurial Lebanese are to be found.

The Mohammad al-Amin Mosque in central Beirut, inaugurated in 2008, surrounded by ongoing reconstruction work

Nasser Saidi, a US-educated Shia Lebanese, was vice-governor of the central bank during the Hariri era, then economy minister, before becoming chief economist for the fledgling Dubai International Financial Centre. Now a consultant, he believes diaspora talent, allied to the quality of Lebanese higher education and its regional ties, could be mobilised to make Beirut a financial conduit for the vast reconstruction costs of the region, which he estimates at $250bn for Syria alone. If the tentative rapprochement between Iran and the US and other international powers prospers, that too could clear a path to hundreds of billions of dollars in unmet investment needs for a country crippled by sanctions. “If you were talking just about financing the reconstruction of Syria and Iran, that could reignite Beirut,” he says. “We have the knowhow and the banks” – which already have a deposit base three times the size of Lebanon’s economy.

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Saidi adds that the Lebanese “don’t have the hang-ups of the US and the Gulf with Iran, and we could even use Gulf money coming through Beirut towards Syria and Iran. That could be a renaissance.”

Samir Franjieh is a centre-left intellectual from an illustrious and divided Maronite Christian dynasty, former adviser to Rafiq Hariri, and incubator of the political movement that is now the largely ineffectual March 14 coalition.

Fouad Makhzoumi is a Sunni businessman and politician who over the past 30 years has created a multinational fibreglasspipe-making business. He believes that if Lebanon can equip itself with a robust rule of law and proper training schemes, it can find new niches in providing infrastructure, especially by leveraging the country’s share of newly discovered offshore oil and gas riches. “It needs a vision,” he says, “otherwise [while] older people may keep finding their way through the minefields of doing business here, younger people simply won’t be interested.” Politics – sectarian politics – is ultimately all. ...

“At the political level, yes, it’s a desolate panorama but if you look at civil society, the debate is rich and vibrant,” he says. In a country without institutions he believes Lebanon’s Christians urgently need to mediate between Sunni and Shia, and proposes a truth and reconciliation commission. “We need something that tells us our half-century of conflict and war is over.” He also wants to break the sectarian stranglehold on -politics with a bicameral system, consisting of a lower house – currently divvied up by religion – representing citizens and their political preferences, and a senate to safeguard the rights of sects. These initiatives would have to be driven by civil society, he says, but if they were to prosper, they could be transferable to Syria and other countries with a mosaic of sects such as Iraq.

But for as long as Syria’s civil war fans the flames across the Levant, there is little room for nuanced debate. All Lebanon’s sect and faction leaders are united in the desire to keep the lid on and spare the country a real relapse into communal strife but it is far from clear they are all talking about the same lid. As Hizbollah’s drive into Syria shows once again, it has always been a delusion in the Middle East that those who unleash violence believe they can control it.

Walid Jumblatt, leader of the Druze who has shifted alliances many times in defence of his people, fears for the future of his and other minorities, recalling the Christian exodus from Iraq after the US-led invasion of 2003 rekindled the Sunni-Shia war.

“I see a bleak future for the Christians here and in [all] the Middle East,” he says. “If they leave, the pluralism of the region will go with them and we’ll be left on our own. We have to play for time and keep extinguishing the smaller fires before they get bigger . . . or we’ll be linked directly to a Syria as disintegrated as Iraq.”

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Frank Kane February 21, 2013

Family firm shows way forward after tragedy

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he sudden loss of a dear relative is a tragedy for any family. In the Middle East commercial world, where many businesses are family owned and run, an unexpected bereavement can have corporate repercussions that compound the emotional anguish.

Fouad Makhzoumi and his family went through such a convulsion in April 2011 with the sudden death of his son Rami.

One moment the 33-year-old was at the helm of the family business, Future Pipe, where he was the chief executive; a few hours later, the Makhzoumi family was mourning the passing of the heir to a business painstakingly built up over decades.

«I have always looked to the future with my beloved son Rami taking the lead, not only in business but for the family too …

But fate was stronger than hopes and dreams,» wrote Mr Makhzoumi in a book produced by his family, one of the region's most successful business dynasties.

The book is partly a homage to Rami's life and achievements, and partly a business manual for the modernisation of traditional Arab businesses.

In Mr Makhzoumi's offices in Dubai, the legacy of Rami is all around; pictures of the young man adorn the walls; his office has been left exactly as it was on that awful day in 2011. He has obviously felt the loss of his son grievously.

«Rami was a special character. Leading for him was not a right, it was a responsibility,» Mr Makhzoumi says. «He wanted to change a 20th-century mentality into a more modern one, and integrate the new generation with the Ancien Régime. He wanted to change the image of young Arabs in the world.»

Rami's stewardship of the multimillion-pound corporation Future Pipe was the mechanism through which he hoped to bring about such a transformation.

The business had its origins in Saudi Arabia in the 1970s, where the family, already prominent in politics and commerce in their native Lebanon, had relocated at the beginning of the Lebanese civil war.

Mr Makhzoumi had built the company into a world leader in the fast-growing business of manufacturing and selling fibreglass pipes, used in all sectors of industry from oil to utilities to water desalination. «For each newborn baby, you need two pipes,» he says, echoing the industry's motto.

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By the turn of the millennium, Future Pipe had become one of the top three players in its sector, replacing older concrete or metal equipment with a more adaptable, higher value added, product.

«I wanted to retire when I was 50 in 2002, so I convinced Rami to take over the business, though it wasn't a hard sell. I was convinced he could do it.» Then aged 25, Rami had already been learning his father's trade for many years, accompanying him to meet global business and political leaders.

He had also made a Hajj pilgrimage to Mecca with his mother, and learnt the Quran in Arabic, complementing the education he had gained at school and university in Britain.

The young chief executive brought a new approach and dynamism to the company.

«His key attribute was that he had sincere business and social ethics, and a commitment to corporate governance,» says Mr Makhzoumi. Rami decided that an initial public offering was the way to ensure the company's future – imposing it to a modern and professional corporate discipline.

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Within a few years he had begun to put in place the structure of a public company, and by 2006 he was beginning to seriously plan for an IPO some time in 2008.

After a «healing process», Mr Makhzoumi believes the most fitting tribute would be to continue the modernisation and expansion strategy Rami began.

By then, the world had changed from the boom years of the first part of the decade. In late 2007, DP World had come to market in Dubai (Future Pipe's chosen location for its own IPO), a move that «sucked all the cash out of the market and destroyed liquidity,» says Fouad Makhzoumi.

«I said I would run the company for three years after he passed away, so I'll be looking to step down towards the end of this year, though I might stay on as chairman,» he says.

The process of looking outside the family for a new chief executive is already on his mind, as is a detailed strategy for expansion and acquisition, as well as a revival of the possible IPO.

His son toyed briefly with the idea of a listing on the London Stock Exchange, but «by that summer, Rami grew increasingly convinced we should not do it [the IPO], and he was right. It was another example of his vision».

«I want to enjoy my three grandchildren, Rami's daughters.»

Like most sensible companies, Future Pipe hunkered down during the crisis and subsequent recession, but there were signs by 2011 that the young chief executive was beginning to think again of expansion, with a deal in Saudi Arabia on his mind. Until that day in April when fate intervened.

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MAKHZOUMI FOUNDATION: Impact report year 2014

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© 2012 POSITIVE ECONOMY FORUM par PlaNet Finance Financial Times January 19 2013

Fouad Makhzoumi Chief Executive Officer, Future Pipe Industries

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aster of Science degrees in Chemical Engineering from Michigan Technological University, Michigan, United States of America (1975).

In Saudi Arabia, Mr. Makhzoumi played a strategic role in developing one of largest private industrial group of companies : In 1984, a company controlled by Mr. Fouad Makhzoumi, acquired a substantial interest in a UAE based pipe manufacturing and trading business. Under Mr. Makhzoumi’s leadership and industrial expertise what became the Future Pipe Industries Group, which is now wholly owned by Future Group Holdings, has grown into one of the world’s largest producers of composite pipe systems and is now global in its scope of activities with specialized subsidiaries throughout the world.

As well as Future Pipe Industries, Mr. Makhzoumi controls a diverse portfolio of investments including: engineering; industrial; commercial; research; real estate; security; information; multimedia and publishing businesses. Together, these companies employ more than 3,500 people across the world, in countries including: Lebanon, United Arab Emirates, Egypt, Oman, Qatar, Saudi Arabia, Italy, France, The Netherlands, Germany, UK, Spain, Morocco, U.S.A., Thailand, India, Indonesia and Singapore.

He believes his economic and business experience gives him particular insight as to political and social situations, not only in Lebanon but also in the Arab World in general and he has long been a prominent figure in international, political and diplomatic circles. His involvement in public affairs intensified after the Lebanese civil war ended and in 2004 he founded the National Dialogue Party in Lebanon, of which he has acted as its Secretary General since its foundation.

In 1997, he founded the Makhzoumi Foundation, a private Lebanese non-profit organization that contributes through its vocational training, health care and micro-credit programs to Lebanese civil society development. In 1998, a sister Foundation, “Makhzoumi Foundation (USA) Inc.”, was set up to give a wider support to the Lebanese Foundation.

The Micro Credit Loan program provides small loans to individuals in order to help them finance their own sustainability in life. This program has already provided over 6,500 loans to underprivileged Lebanese families to start or expand small businesses through capital loans made on the basis of their sound planning rather than financial collateral. The micro credit loan program is carried-out with, primarily, the financial support of the Founder, Mr. Makhzoumi, and of international organizations, such as USAID and LIM. In addition to this vibrant loan program, the Makhzoumi Foundation operates vocational centers in which thousands of Lebanese citizens are provided with training in languages, computer skills, as well as internet skills, hardware repairs, hairdressing, barbering, beauty, photo and video shooting, plus other vocational skills. It provides also health care through its clinics across the country. Moreover, the Foundation implements different projects related to environment and sustainable development. Any Lebanese citizen is eligible for these programs and acceptance criteria are based on the basis of ”need, not creed”. So far, over 250,000 people have benefited from the Foundation’s Programs.

Mr. Makhzoumi has forged strong relationships with a number of leading educational institutions and has established a number of endowments, including: at the University of Alberta, Canada, the “Makhzoumi Lebanese Studies Endowment” (2009); at the American University of Beirut.

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r Fouad Makhzoumi was born in Beirut; Lebanon. His preliminary and secondary education was received at the International College in Beirut and he received undergraduate (1974) and Master of Science degrees (1975) in Chemical Engineering from Michigan Technological University, in Michigan, United States of America.

In 1975, Mr Fouad Makhzoumi, a newly graduated and confident young man, sought the opportunity to make his fortune in the Kingdom of Saudi Arabia. In the world of business, he showed imagination, initiative, and a readiness to take bold steps and to undertake adventurous projects. In Saudi Arabia, Mr Makhzoumi played a strategic role in developing one of largest private industrial groups of companies.

In 1984, « Future Management Holdings », a company controlled

by Mr Fouad Makhzoumi, acquired a substantial interest in a UAE pipe manufacturing and trading group of companies. Under Mr Makhzoumi’s leadership and industrial expertise, through his worldwide reputation, and in recognition of his trading and industrial dealings and projects in the Arab World and abroad, the group has prospered and is now global in the scope of its activities with specialized subsidiaries throughout the world. He managed and developed it to become the core of Future Pipe Industries Group with specialized subsidiaries throughout the world.

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These subsidiaries own and operate industrial, commercial, real estate, security, information, multimedia and publishing businesses as well as research centers. These business enterprises, industries, firms, educational institutions and research centers employ more than 3500 people and are located in 23 countries such as Lebanon, United Arab Emirates, Egypt, Oman, Qatar, Saudi Arabia, Italy, France, The Netherlands, Germany, UK, Spain, U.S.A., Thailand, and Singapore and others.

Between 1995 and 1997, Mr Makhzoumi, as a prominent figure in international political and diplomatic quarters, as well as a renowned leader among men of industry and business circles, has acted as the President of the International Desalination Association (IDA).

From 1995 until 1998, Mr Makhzoumi acted as Vice Chairman of the Institute for Social and Economic Policy in the Middle East at the John F. Kennedy School of Government at Harvard University. He has been a member of the International Board of the Council on Foreign Relations: US/Middle East Project since 1996.

He is also a member of the Board of the Arab Reform Initiative (ARI) created in 2006; a member of the Center for Strategic and International Studies (CSIS) (2008-2010); a member of the Board of the International Council for Middle East Studies (ICMES) (2009); a member of the Board of the US Middle East Project (USMEP) (1994); and a member of the International Institute for Strategic Studies (IISS) (2009).

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He is a member of the Middle East Board of the S. Olayan Business School at the American University of Beirut (2011) and of the De Gasperi Foundation (2012).

In 1997, Mr Makhzoumi founded the Makhzoumi Foundation, a private Lebanese non-profit organization that contributes through its vocational training, health care and micro-credit programs to Lebanese civil society development. In 1998, a sister Foundation, “Makhzoumi Foundation (USA) Inc.”, was set up to give a wider support to the Lebanese Foundation.

Mr Makhzoumi has been the Executive Chairman of Future Pipe Industries since 2003 and he reassumed the role of Chief Executive Officer in 2011. He has also been the Executive Chairman of Future Group Holdings since 1982.

Public Activities He started his involvement in Public Affairs after the Lebanese civil war ended. He is the Founder and Secretary General of the National Dialogue Party since 2004. His economic experience allowed him to understand a lot about the political and social situation, not only in Lebanon but also in the Arab World in general.

In addition, he is a leading economist who looks at economy as a main element in the development of countries.

Mr Makhzoumi has many contributions to the press, which include “Alhiwar” newspaper that he founded in 1999 and he was the first to issue a daily electronic newspaper, in English and Arabic, which is the “Mirror of the Arab Press ».

In addition, He sponsored a study on “Harnessing Trade for Development and Growth in the Middle East”, prepared by a group of experts selected by the US Council on Foreign Relations.

Humanitarian and Philanthropic Activities Mr Fouad Makhzoumi has many charitable deeds. His love of mankind in general, and the Lebanese people in particular, have pushed him to work for the welfare of his compatriots. He has done this by creating institutions, organizations, and has committed personal funds to help the needy, by providing assistance and relief to the poor, and by working for better living conditions for middle class people. In fact, Fouad Makhzoumi’s diligent and persistent endeavors in this regard, have been fruitful and productive, and have enabled him to realize many of his dreams for the Lebanese people.

In keeping with his philosophy, he avails through his Lebanese Foundation, supported by its US sister, a number of philanthropic offerings to the Lebanese people, comprising of vocational training in a great number of fields; medical care programs, guidance and awareness programs, agroforestry and desertification related activities in conjunction with European Union NGOs, as well as a Micro Credit Loan Program.

The latter program provides small scale loans to individuals in order to help them gradually to finance their own sustainability in life. This program has already provided over 2400 loans to underprivileged Lebanese families to start or expand small businesses through capital loans made on the basis of their character and sound planning rather than financial collateral. The micro credit loan program is carried-out with, primarily, the financial support of the founder, Mr Makhzoumi, and of other international organizations, such as USAID and CNEWA. In addition to this vibrant loan program, the Makhzoumi Foundation operates 4 neighborhood vocational centers in which thousands of Lebanese citizens are provided with beginners and advanced training in languages, computer skills, as well as Internet skills, hardware repairs, hairdressing, barber, beauty, calligraphy, jewelry design and repairs, photo and video shooting, household electrical repairs, plus other vocational skills. There are so many other programs conducted by the Foundation that it is difficult to list them all; to name but a few: agricultural extension (400 farmers), environmental awareness, municipalities’ duties awareness, and so many more. So far, over 50’000 Lebanese have benefited from these programs. Any Lebanese is eligible for these programs and acceptance criteria are based on the basis of « need not creed. » In addition, over 50’000 individuals have joined the Foundation’s health care program.

Mr Makhzoumi set up, at the University of Alberta, Canada, the “Makhzoumi Lebanese Studies Endowment” (2009); at the American University of Beirut, the “Rami Makhzoumi Chair in Corporate Governance” and at the International College in Beirut yearly awards for Leadership and Excellence (2012).

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Between 1995 and 1997, Mr Makhzoumi acted as the President of the International Desalination Association (IDA).

From 1995 until 1998, Mr. Makhzoumi acted as Vice Chairman of the Institute for Social and Economic Policy in the Middle East at the John F. Kennedy School of Government at Harvard University. He has been a member of the International Board of the Council on Foreign Relations: US/Middle East Project since 1996.

He is also a member of the Board of the Arab Reform Initiative (ARI); a member of the Center for Strategic and International Studies (CSIS) (2008-2010); a member of the Board of the International Council for Middle East Studies (ICMES) (2009); a member of the Board of the US Middle East Project (USMEP) (1994); and a member of the International Institute for Strategic Studies (IISS) (2009).

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ouad Makhzoumi has been the Executive Chairman of Future Pipe Industries since 2003 and reassumed the role of Chief Executive Officer in 2011. He has also been the Executive Chairman of Future Group Holdings since 1982.

In 1984, Future Management Holdings, a company controlled

by Mr Makhzoumi, acquired a substantial interest in a UAE pipe manufacturing and trading group of companies. Under his leadership, the group has prospered and is now global in the scope of its activities with specialized subsidiaries throughout the world. He managed and developed it to become the core of Future Pipe Industries Group with specialized subsidiaries throughout the world.

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He was recently appointed as a member of the Middle East Board of the S. Olayan Business School at the American University of Beirut (2011).

In 1997, Mr Makhzoumi founded the Makhzoumi Foundation, a private Lebanese non-profit organization that contributes through its vocational training, health care and micro-credit programs to Lebanese civil society development. In 1998, a sister Foundation, Makhzoumi Foundation (USA) Inc., was set up to give a wider support to the Lebanese Foundation.

Mr Makhzoumi received undergraduate (1974) and Master of Science degrees (1975) in Chemical Engineering from Michigan Technological University, in Michigan, United States of America.

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Vendredi 13 Mars 2015

Gaz et pétrole, des richesses à gérer avec precaution

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a “maladie hollandaise “ (en anglais Dutch disease) : un phénomène économique qui tire son nom de la découverte d’importants gisements de gaz aux Pays-Bas dans les années 1960, et qui relie exploitation de ressources naturelles et déclin de l’industrie manufacturière locale. Ou, plus simplement exprimé, la “ maladie “ de l’argent facile.

Un cas de figure, évoqué sous forme de mise en garde, qu’a mis en avant l’économiste franco-libanais spécialisé dans les questions pétrolières et énergétiques, Nicolas Sarkis, lors du forum “ Pétrole et gaz, le forum national de la richesse du Liban “, qui s’est tenu hier à l’École supérieure des affaires (ESA).

Sans omettre d’énumérer les nombreux bénéfices potentiels apportés par l’exploitation de pétrole et de gaz naturel au large des côtes libanaises, “ le rêve (...) peut devenir cauchemar “, a souligné M. Sarkis. Et de citer à titre d’illustration le cas de l’Algérie, troisième producteur du continent africain.

Ce pays a énormément misé sur sa production pétrolière au détriment des activités traditionnelles de son économie ; il voit aujourd’hui ses extractions de brut chuter (de près de 20 % depuis le pic atteint en 2007) tandis que ses propres besoins ont explosé sur le plan de la consommation comme de l’énergie... Éviter les dérapages “ Pétrole et gaz, le forum national de la richesse du Liban “ était organisé par le Forum pour le dialogue national de Fouad Makhzoumi, le Mouvement des entreprises et représentations économiques françaises au Liban (Meref) et l’ESA, sous le haut patronage du président de la République, Michel Sleiman.

Il a rassemblé un panel prestigieux composé d’une trentaine d’experts, dont notamment des juristes, des économistes et des consultants en matière d’énergie, venus se pencher sur le dossier énergétique libanais et ses implications pour le Liban sur le plan économique, financier ou encore social.

Cet événement s’est déroulé en présence du ministre de l’Énergie et de l’Eau, Arthur Nazarian, qui représentait le président Michel Sleiman, de l’ancien ministre Jihad Azour, d’Alain Bifani, directeur général du ministère des Finances, et de plusieurs personnalités du secteur privé.

(Lire aussi : “ Le Liban risque d’être exclu des accords gaziers régionaux s’il prend trop de retard “)

Nul doute que l’exploitation potentielle des gisements offshore contribuera à générer des revenus considérables, renflouer les caisses de l’État, créer des emplois et donner au Liban les moyens d’améliorer son infrastructure et de combler son déficit énergétique, ont rappelé les participants. Mais encore faut-il manipuler la (future) poule aux œufs d’or avec précaution, ont-ils prévenu.

Car les risques sont présents : dérapage en termes de politique économique (la fameuse “ maladie hollandaise “ évoquée par M. Sarkis puis, plus tard, par M. Bifani), détournements, flous juridiques, sans compter les écarts entre les besoins sur le plan de l’emploi et les réalités du pays. “ Pour augmenter et encourager la transparence, a souligné l’expert international Dany Kabbani, il est vital que le Liban mette en place des procédures “ similaires à l’Initiative pour la transparence dans les industries extractives (Extractive Industries Transparency Initiative ou EITI), “ avec l’aide de pays sponsors et d’organisations non gouvernementales et de consolider les liens entre ces derniers et le gouvernement libanais “. “ Obtenons dès maintenant une plus grande clarté sur le plan des lois régissant le secteur plutôt que de le regretter plus tard “, a appelé pour sa part Fouad Jawad, président de PetroServ International. En ce qui concerne l’emploi, “ il est urgent d’évaluer les capacités du système éducatif libanais pour combler le manque entre les besoins futurs et la main-d’œuvre libanaise disponible “, a encore estimé de son côté l’économiste et spécialiste en gestion de l’énergie, Patrick Gougeon.

De nombreux défis, donc, en perspective pour le Liban. Quoi qu’il en soit, encore faut-il que sa zone économique exclusive maritime (ZEE) soit délimitée une fois pour toutes...

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The Daily Star on May 10, 2014

Gas venture needs infrastructure He added that his ministry prepared a draft law for tax amendments related to oil activities. “We have also distributed the draft law to all parliamentary blocs to take their technical opinions. The adoption of this law by Parliament before going into biddings and tenders by companies will constitute a great step ahead,” he said.

Nasser Hoteit, president of the Lebanese Petroleum Administration, the “Oil and Gas: Lebanon’s Wealth Forum,” Friday, May 9, 2014. (The Daily Star/Mohammad Azakir)

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EIRUT: Energy and Water Minister Arthur Nazarian emphasized Friday the importance of developing Lebanon’s infrastructure to produce gas while securing long-term markets for this new national wealth.

“It is probable that we have natural gas in our waters. This is why we should develop the main infrastructure to produce gas and secure long term markets for it, which necessitates the completion of the first round of licensing in order for Lebanon not to lag behind compared to neighboring countries,” he said during the Oil and Gas Lebanon’s National Wealth Forum held at Ecole Superieure des Affaires.

The forum, which was organized by ESA in collaboration with the Forum for National Dialogue and the Mouvement des Entreprises et Representations Economiques Francaises au Liban, aims to shed light on the prospect of gas and oil in Lebanon.

Nazarian said the Energy and Water Ministry had achieved a study for creating the 174 km coastal gas line that stretches between Tripoli and Tyre and which is considered to be the backbone of gas infrastructure in Lebanon. “The ministry is still waiting for the approval by Parliament on the law for funding this line creation,” he said. “The ministry is finalizing the assessment of the offers for biddings and tenders for stocking liquid gas in north Lebanon.”

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Nazarian vowed to pursue his ministry’s efforts in the field of oil and gas exploration despite all the prevailing political difficulties. “The political difficulties in Lebanon have not prevented us from achieving the first round for oil and gas production and exploration,” he said. “The Energy and Water Ministry will pursue its efforts despite all political difficulties to achieve social and economic development.”

The minister reiterated his call upon the government to pass the two main decrees that are needed for the completion of the first licensing round. “The current government should preserve Lebanon’s credibility in this regard by adopting the two main decrees that are related to the first round of licenses as well as the TORs which would enable these companies to present their biddings and tenders to acquire oil licenses in Lebanese waters,” he said.

Nasser Hoteit, president of the Lebanese Petroleum Administration, said that if the two decrees were passed by Parliament as expected in May 2014, then Lebanon would have rigs in its waters starting end of 2015 or beginning of 2016.

He said the main focus of LPA is to ensure working opportunities for Lebanese youths. “We should have a very strict goal which is to ensure working opportunities for our people by hiring 80 percent of Lebanese staff,” he said. “After exploration, international firms must be obliged to train the local staff abroad.”

Hoteit said that if Lebanon finds out 5 trillion cubic feet of natural gas on its territories then Lebanon would not export gas.

“But if we have between 5 TCF and 10 TCF then we can export to the regional market. However if we have 10TCF, we can think of exporting to foreign markets such as Europe and Asia,” he added.

“These are the internationally adopted rules and regulations.”

Energy expert Roudi Baroudi also gave a presentation, saying that some geologists estimate that the East Mediterranean could supply from 10 percent to 15 percent of Europe’s oil and gas needs in 2025. “That’s why we can become an important player if we know how to play it,” he said.

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Baroudi said that the political gridlock was paralyzing Lebanon’s government from top to bottom.

“Cabinet life is short. We do not have a presidential election and we have dozens of senior security and civil service posts that have been vacant,” he said.

“The Constitutional Council, which is the most important thing, has been also sidelined so Lebanon’s claim to uphold the rule of law is severely weakened,” he added.

“All that we really need is to get a unanimous political consensus to move forward.”

For his part, economist Marwan Iskandar wondered how some people can ask about whether Lebanon will be fully able to benefit from this new wealth and how oil and gas revenues would be spent.

“We are in a country which has $64 billion in public debt and which needs to organize itself in the next seven years for it not to have a $100 billion of debt. This is far more important than considering what we are going to do with the money when we have it,” he said. “Let us begin to use gas for electricity generation which we can do within 18 months and we can save money.”

Iskandar said that it took Israel around seven years to develop its gas fields and that Lebanon requires about the same amount of time to do the same.

“I am afraid that in seven years’ time, the price of gas will not be that significant. Let us hope that it will be economical enough for us to pay our own requirements and let us not delude ourselves with the hundreds of billions and what we are going to do with them,” he said.

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Jul. 31, 2013

Ramadaniyat festival fuses food, shopping and a do-good spirit

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he charitable Makhzoumi Foundation, which has provided iftars and festivities during the holy month for around 15 years, launched Monday night the first ever Ramadan bazaar and festival at the Beirut International Exhibition and Leisure center. Souk Ramadaniyat Beirutiya Festival will continue after iftar, from 9 p.m. to 1 a.m., through Thursday night. The souk houses artisans and small-scale craftsmen, as well as pricier local designers, live Arabic entertainment, children’s activities and plenty of food.

Thousands were present for the opening night and BIEL’s cavernous space allowed for numerous different festival activities. The main stage began the night’s entertainment with live renditions of Fairuz’s career hits and whirling dervishes; a contemporary art exhibit attracted wanderers; and foreign embassies served up food and cultural facts.

Makhzoumi is an non-governmental organization with program arms extending into microcredit, vocational services, health care, democracy awareness, environmentalism and other welfare services.

Gradually over the years, Makhzoumi has expanded its seasonal projects, from iftars more than a decade ago to art exhibitions last year. The festival at BIEL is the culmination of Makhzoumi’s Ramadan efforts and an event that its leadership plans to host annually.

“It’s been 15 years that we’ve been working during Ramadan,” May Makhzoumi, president of the foundation and wife to founder Fouad Makhzoumi, told The Daily Star. “We started offering food rations to NGOs, to mosques even to some churches. Then a few years ago, maybe in 2005, we started doing Ramadan tents at all our centers around the country.”

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Aside from the festival this year, Makhzoumi is still organizing iftars around the country. At Verdun Square, 2,500 meals are distributed every night through Makhzoumi and the help of partner NGOs, she said.

One of Makhzoumi’s biggest projects is giving loans between $500 and $7,500 to small businesses – anyone from taxi drivers to tailors, Makhzoumi said. This year’s festival brought together holiday revelers from the city with dozens of Makhzoumi’s microcredit beneficiaries, many of whom manned stands selling handmade lace, decorative items and food preserves.

The do-good spirit was also present in rows of stands promoting other Lebanese NGOs peddling their own causes and souvenir items. Save Beirut Heritage offered hip clutches on which pictures of the city’s historic Ottoman buildings were printed; and Save the Grace, a nonprofit company distributing the city’s leftovers to the needy, was selling promotional teacups.

Festivalgoers on the opening night clustered around a few of the popular tents – most of them dolling out food.

People squeezed to find a place to stand near celebrity TV chef Richard Khoury, who was demonstrating Ramadan recipes. Tents for the Italian and Egyptian embassies were also bustling as people waited to try Egyptian staples like Oum Ali, a raisin-studded bread pudding, and koushry, a poor man’s street food made up of pasta, rice, lentils, chickpeas and tomato sauce.

Wednesday night will feature more whirling dervishes and live Fairuz songs, while Thursday will see live oriental music and singer Pascale Sakr performing along with her orchestra.

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Lundi 16 Mars 2015

L’avenir des jeunes au cœur d’un Forum sur le gaz et le pétrole demain à l’ESA

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ne conférence de presse s’est tenue, hier, à l’École supérieure des affaires (ESA) pour annoncer la tenue d’un séminaire ayant pour thème « Pétrole et gaz, le forum national de la richesse du Liban ». L’événement, organisé par le Forum pour le dialogue national de Fouad Makhzoumi, le Mouvement des entreprises et représentations économiques françaises au Liban (Meref) et l’ESA, se tiendra à l’ESA même sous le patronage du président de la République, Michel Sleiman, et regroupera une trentaine d’experts, notamment des juristes, des économistes et des consultants en matière d’énergie.

Prenant la parole au cours de la conférence de presse, M. Makhzoumi, qui a pris l’initiative d’organiser ce séminaire, a rappelé que « le taux de croissance au Liban variait entre 7 et 9 % durant les années 90 ». « Nous avions réussi, à cette époque, à passer outre les dissensions communautaires et à mettre divers projets en place. Les initiatives personnelles ont malheureusement toujours des limites. Aujourd’hui, le Liban compte 4,2 millions d’habitants. Près de 53 % d’entre eux ont moins de 30 ans et la moitié de ces jeunes, qu’ils détiennent des diplômes universitaires ou pas, est au chômage », a-t-il indiqué. « Après la guerre civile, nous ne nous sommes pas préparés aux demandes du marché des pays arabes en matière de maind’œuvre et de savoir-faire à exporter, le Liban ne pouvant pas créer des emplois à ses jeunes, a-t-il dit. Avant 1996, il fallait que le pays assure 16 000 emplois par an aux nouveaux venus sur le marché du travail, mais il ne pouvait créer à l’époque que 9 000 emplois. Aujourd’hui, avec la crise des réfugiés syriens, le problème est de loin plus grave », a-t-il poursuivi. « Actuellement, 77 % des jeunes Libanais pensent émigrer pour s’assurer un meilleur avenir. Le Liban, a-t-il estimé, possède trois richesses : le capital humain, l’eau (bien que le pays n’utilise que le tiers de ses ressources hydrauliques) et ses prochaines richesses gazières et pétrolières. » Et de poursuivre : « Il faut adopter la bonne législation pour que les Libanais puissent effectivement profiter de leurs richesses et préserver ce dossier, tant bien que mal, loin du clientélisme politique. Si nous voulons assurer un meilleur avenir à nos jeunes, il faut qu’ils sentent qu’ils ont leur place au Liban. »

De gauche à droite : Bernard Bridi, vice-président de la communication au sein du groupe Makhzoumi, Fouad Makhzoumi et Moustapha Assad, vice-président du Meref.

« Ce séminaire a notamment pour but de penser la politique de développement qui devrait être adoptée en matière de gaz et de pétrole, surtout que selon certaines rumeurs le Trésor percevra uniquement 4 % des revenus pétroliers et gaziers, alors que dans des pays comme le Koweït et la Norvège ce taux atteint les 15 % », a-t-il souligné en conclusion.

De son côté, Moustapha Assad, vice-président du Meref, a présenté l’organisme qu’il représente, notant que « c’est un groupement d’identités économiques françaises et libanaises implantées au Liban et qui œuvrent pour un rapprochement économique et culturel entre les deux pays. Fondé en 2008, le Meref regroupe actuellement près de 120 entreprises issues de tous les secteurs ».

Soulignant l’importance du forum, le gaz et le pétrole constituant un facteur de poids pour l’avenir du Liban, il a annoncé les thèmes qui seront traités : la vision du développement du secteur pétrolier au Liban, le développement et la perspective de l’industrie du gaz et du pétrole à l’est de la Méditerranée, l’évolution du secteur gazier et pétrolier libanais, les défis juridiques de l’industrie gazière et pétrolière, l’infrastructure et la logistique, la création d’emplois, l’impact monétaire et financier sur le Liban, et les implications géostratégiques pour le pays. Un débat rassemblant les jeunes et leur vision de l’avenir sera également organisé.

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Jul. 04, 2014

Traditions highlighted at Souk Ramadaniyat

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Sunday, the last day of Souk Ramadaniyat, organizers have planned the only full-day program, with entertainment starting at 11 a.m. and ending with performances by whirling dervishes and Aline Lahoud, an Arabic pop singer.

“We have the traditional hakawati [storyteller] and the malawi [sufi dance] chanting for the birth of [the Prophet] Mohammad, but at the same time we have the Fairouz songs ... and on the last day Aline Lahoud will sing,” said Malak al-Hout, head of vocational training for the festival’s organizers, the Makhzoumi Foundation.

In many ways, the annual market and Makhzoumi’s charitable work during the month show the ways in which Ramadan’s ageold traditions have evolved and adapted to modern life.

For example, the large public iftars of decades past, while they can still be found around Lebanon, have largely been replaced by quaint gatherings among immediate family or dining out at restaurants serving international fare.

Makhzoumi, a vast charity organization that runs various social service projects throughout the year, puts on the annual Souk Ramadaniyat festival, a market and entertainment venue featuring four nights of shopping and performances themed around the country’s Islamic and Arab heritage.

Makhzoumi runs one of the city’s remaining public iftars in Verdun, where Lebanese and some Syrian refugees come in need of a free meal and where the foundation can discretely offer other services, like free health clinics, explained Dana Sinno, head of their health program.

The festival opened Thursday night, attracting thousands to the cavernous exhibition hall on Beirut’s waterfront. The venue starts to bustle each night around 10 p.m. after the evening iftar meal, when locals are looking for family friendly entertainment, and stays open until after midnight.

While visitors break their daylong fast on traditional holiday plates like salad, lentil soup and rice dishes, Sinno’s team raises awareness about very current health care concerns. “We have campaigns for osteoporosis, polio vaccinations for children, diabetes, cholesterol and triglyceride testing, ” Sinno said. “And two days a week we have a mobile health clinic.”

lates of baklava and hot-pink sugar cookies, racks of classically trimmed abayas and loose robes with graphic prints: a mash-up of old-fashioned and modern Ramadan traditions fill the Souk Ramadaniyat, an ongoing festival at the Beirut International Exhibition and Leisure center.

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One of Ramadan’s centuries-old traditions, and a pillar of Islam, obliges Muslims to give their annual zakat monetary donation to the needy or, more often, a religiously affiliated charitable association. The myriad do-gooders with stands set up at the Souk Ramadaniyat underscore how much the spirit of giving has diversified.

Abaya, a traditional long-sleeve robe, makes an annual return during Ramadan as one of the holy month’s lighter modern traditions. Iftar hosts and their trendy guests break out these relics of traditional Arab dress as a way to stay comfortable while looking holiday-chic.

Besides religious charities, the country’s NGOs and issue-focused foundations also push fundraising efforts during Ramadan. Take Tamanna, for example, which opened a booth at Ramadaniyat’s charity island. Tamanna grants three wishes a week to children with terminal illness. During Ramadan, the organization puts its focus on raising money, Tamanna Coordinator Sally Cheaib said.

“During Ramadan we grant fewer wishes to focus on fundraising.

But here, we’re not fundraising, we’re just trying to raise awareness,” Cheaib said.

“They stay home and want to be relaxed, but abaya give them a special touch,” said Gigi Kratem Saghir, who designed a range of light cotton abaya made by Palestinian women in Beirut’s Sabra refugee camp.

Rather than donate to an intermediary association, more families and individuals are choosing to go straight to the source by hosting orphans at home iftars or, as in the case of civil engagement group Loyac, prepare toy drives to go directly to needy children.

Ramadan’s less heady traditions have also changed with the times. Among the stands selling Turkish coffee, Lebanese sweets and a super-sweet holiday juice called jallab were colorfully glazed sugar cookies and French pastries. A live cooking demonstration walking attendees through a very European veggie stew made from thick Boursin cheese spread, broccoli and potatoes.

Some of the souk’s abaya makers relied on modern fabrics like nylon or metallic polyesters decorated with graphic prints and neon embellishment. Others, like Saghir, focused on more traditional themes. Her line of abaya was made from a traditional Tunisian fouta, a cotton towel characterized by its lightly colored stripes.

A sign of the garment’s seasonal significance, the Ramadaniyat festival will host a fashion show of abaya Saturday night from among the many craftswomen open for business at the souk.

Souk Ramadaniyat is open at BIEL Saturday 9:30 p.m.-1 a.m. and Sunday 11 a.m.-1 a.m.

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Séminaire Oil & Gas à Beyrouth COMMUNIQUE 2 DU 10 MAI 2014

SEMINAIRE SUR LE PETROLE ET LE GAZ AU LIBAN DU 9 MAI 2014 organisé à l’initiative du « Forum pour le Dialogue National » et en coopération avec l’Ecole Supérieure des Affaires de Beyrouth (ESA) et le « Mouvement des Entreprises et Représentations Economiques Françaises au Liban » (MEREF).

SYNTHESE DES ACTES DU SEMINAIRE PAR E.MASBOUNGI LES PARTENAIRES

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pétrole à l’est de la Méditerranée, l’évolution du secteur gazier a gestion du dossier pétrolier et le rôle accordé aux etPRESSE pétrolier les défis juridiques de l’industrie gazière et jeunes au cœur d’un Forum intitulé « Pétrole etCOMMUNIQUE Gaz, le DE 1 etlibanais, DIAPORAM PHOTOS DU SEMINAIRE pétrolière, l’infrastructure et la logistique, la création d’emplois, Forum national de la richesse du Liban » à l’ESA l’impact monétaire et financier sur le Liban et les implications géostratégiques pour le pays. Le forum a été clôturé par un Des centaines d’experts et étudiants ont pris part vendredi, débat rassemblant de jeunes étudiants qui se posent des à l’Ecole supérieure des affaires (ESA) à un forum ayant pour questions sur les possibilités d’emplois, dans l’avenir, dans le thème «Pétrole et gaz, le forum national de la richesse du secteur des hydrocarbures.

Liban ». L’évènement, organisé par le Forum pour le dialogue national de Fouad Makhzoumi, le Mouvement des entreprises Lors des présentations et des débats, plusieurs experts ont et représentations économiques françaises au Liban (MEREF) souligné l’importance d’opter pour la transparence afin de bien et l’ESA s’est tenu sous le patronage du président de la gérer cette nouvelle richesse de laquelle le Liban devrait profiter, République Michel Sleiman, représenté par le ministre de mettant l’accent sur la création d’un fonds souverain capable l’Energie et de l’Eau, Arthur Nazarian, et a regroupé une de garantir des revenus pour plusieurs générations à venir. trentaine d’intervenants, notamment des consultants en matière Nombre de spécialistes ont mis en garde contre le syndrome d’énergie, des juristes et des économistes. hollandais, qui est lié aux conséquences négatives provoquées par l’augmentation des revenus d’un pays suite à l’exploitation Plusieurs aspects relatifs au pétrole et au gaz ont été traités : de gisements pétroliers et gaziers. Des clarifications ont été la vision du développement du secteur pétrolier au Liban, le également données sur le travail effectué par l’autorité libanaise développement et la perspective de l’industrie du gaz et du du pétrole.

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Quelques interventions Lors de la séance inaugurale, Stéphane Attali, doyen de l’ESA et président du MEREF, a indiqué que « l’exploitation des ressources pétrolières et gazières constitue un enjeu majeur pour le Liban ». Se penchant sur le travail du Forum, il a mis l’accent sur «les échanges inédits entre les secteurs public et privé et la participation de la jeunesse ».

De son côté, Camille Menassa expert en communication, a noté que «l’or noir sera bientôt une réalité dans la vie économique libanaise. Il ne faut pas construire des chimères, mais agir rapidement malgré les difficultés ». « S’il est bien géré le secteur pétrolier pourra assurer un développement durable », a-t-il dit.

Représentant le chef de l’Etat, le ministre de l’Energie et de l’Eau, Arthur Nazarian, a indiqué que « malgré les difficultés, le travail se poursuit. Les entreprises sélectionnées pour le forage offshore se préparent à entamer leurs tâches. Nous attendons pour cela l’adoption de deux décrets-lois ». Evoquant l’énergie gazière, il a souligné l’importance de « disposer des infrastructures nécessaires pour traiter le gaz sur place et de trouver des marchés pour l’écouler. Dans ce cadre, un plan de construire un pipeline de Tyr à Tripoli, s’étendant sur 174 kilomètres, a été adopté. Il devrait aider à acheminer le gaz vers sa destination finale », a-t-il dit. Il a également rappelé « la création d’un fonds souverain, prévu par la lois. Ce fonds préservera les richesses du Liban et de ses citoyens sur le long terme ».

Le président de l’Autorité libanaise du pétrole, Nasser Hoteit, est intervenu sur le thème d’une «vision pour le développement du secteur pétrolier au Liban ». Soulignant que l’institution qu’il représente « se réunit depuis un mois, tous les jours, avec le comité ministériel chargé du dossier du pétrole et du gaz », il a souligné que l’institution qu’il représente tient des réunions régulières avec un comité ministériel chargé du dossier du pétrole et du gaz et révélé que la première machine de forage sera implantée au large du Liban au plus tard en 2016.

La deuxième séance avait pour thème le « développement et perspectives de l’industrie du gaz et du pétrole à l’Est de la Méditerranée ». Elle avait pour modérateur Fadi Géara, doyen de la Faculté d’ingénierie à l’Université saint Joseph, qui a souligné l’importance « les formations qui devraient toucher aussi bien les étudiants en ingénierie que les ouvriers. Il faut couvrir tous les domaines pour pouvoir assurer 80 % des emplois du secteur pétrolier ». « Les universités du Liban ont d’ailleurs commencé la formation spécialisée de leurs étudiants afin qu’ils soient mieux préparés à ce nouveau marché de travail », a-t-il dit.

Nicolas Sarkis, économiste libano-français spécialisés dans les questions pétrolières et énergiques, a mis l’accent sur «les possibilités qui s’ouvrent au Liban ». «Il y a beaucoup à faire, mais il faut – avant de procéder- définir et fixer les règles du jeu. Ainsi, il est nécessaire d’optimiser la formation du capital humain c’est

aussi important que l’extraction et la vente du pétrole et du gaz », a-t-estimé, soulignant l’importance « d’éviter l’expérience, dans ce cadre, des pays du tiers monde, qui enregistrent un fort taux de corruption ». Se penchant sur les gisements offshores, il a mis en garde contre « les conflits entre le Liban et ses voisins, et cela en ce qui concerne les gisements offshores qui peuvent se transformer en champs de mines. Aujourd’hui, à l’Est de la Méditerranée, il y a bien plus de bâtiments militaires que de gisements pétroliers ».

Ali Haidar, expert pétrolier et enseignant à l’Université américaine de Beyrouth, a présenté à l’audience des cartes géologiques relatives à des études pétrolières effectuées en Israël. Selon ces études, chaque gisement offshore en Israël, au Liban, à Chypre et dans les Territoires autonomes présenterait treize couches différentes à partir desquelles l’on peut extraire du gaz et du pétrole.

De son côté, Wissam Chbat directeur du département géographique et géophysique, au sein de l’Autorité libanaise du pétrole, a justifié les raisons pour lesquelles les eaux territoriales libanaises ont été divisées en dix parcelles de forage, dont chacune devrait être prise en charge par un consortium.

Sur le thème de « la perspective économique », Roudi Baroudi, consultant en matière d’énergie, a souligné que « selon les études effectuées, les gisements du Liban présentent autant de pétrole et de gaz que ceux d’Egypte qui compte 81 millions d’habitants ». Notant que « le gaz prend de plus en plus d’importance dans le monde », il a cependant indiqué que « l’Est de la Méditerranée ne concurrencera jamais la Russie dans ce cadre. 55 % du gaz utilisé en Europe est en provenance de Russie, avec l’exploitation des gisements de l’Est de le Méditerranée, ce chiffre baissera uniquement de 5 %.

L’Europe finance actuellement une étude sur le transport du gaz méditerranéen vers le vieux continent ».

Pour sa part, l’économiste Marwan Iskandar, a mis l’accent sur les opportunités ratées, une affaire commune au Liban. Il s’est aussi penché sur les revenus pétroliers. «On se demande ce qu’on va faire de notre pétrole, alors qu’il nous faudra au moins sept ans pour enregistrer les premiers gains et on oublie qu’actuellement notre dette s’élève à 64 milliards de dollars. Il vaut mieux œuvrer à ce que notre dette n’atteigne pas les 85 milliards d’ici 2020, a-t-il dit.

De son côté, Wissam Zahabi de l’Autorité libanaise du pétrole a annoncé que « les royalties qui devraient être payées par les exploitants au gouvernement libanais s’élèvent à 4% ». Dans d’autres pays, ce taux se chiffre à 15 %, la moyenne des pays pétroliers étant de 12 %. Il a énuméré les garanties qui devraient être assurées par les entreprises de forage, soulignant l’importance de la participation de l’Etat, partenaire des entreprises, dans la gestion des sources, et mettant l’accent sur la création d’un fonds souverain. Il a également révélé que l’entité qu’il représente a déjà élaboré un projet de loi relatif à la taxation. f o u a d ma k h z o u m i . I n O riole of glories

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La quatrième séance avait pour thème « les défis légaux de l’industrie du gaz et du pétrole ». Le modérateur, Ryan Kouatly, avocat en droit international, a mis l’accent sur les lois relatives à l’environnement dans le cadre de l’exploitation pétrolière, une tendance qui s’est accentuée après la catastrophe du Golfe du Mexique en 2010. Pour sa part, Yassine Jaber, député et ancien ministre, a rappelé que la loi libanaise sur l’exploitation du gaz et du pétrole offshore s’est inspirée de la législation norvégienne. Il a souligné l’importance du respect des délais dans l’adoption des lois et de la coordination entre les ministères pour faciliter et accélérer le travail. Il a noté que de tous les comités rattachés aux ministères, il n’y a que l’autorité nationale du pétrole qui est opérationnel, les autres relatives notamment à l’exploitation de l’aéroport de Beyrouth, l’électricité et la téléphonie mobile n’ont pas vu le jour. Gaby Daaboul, chef du département légal à l’autorité libanaise du pétrole, a appelé le gouvernement à adopter rapidement les deux projets de loi afin d’accélérer le forage, le premier prévoit la création d’une zone tampon entre la côte et les zones d’exploitation afin de préserver le tourisme et la pêche, le deuxième régit les relations entre les ayants-droit.

Tonje Gormley, experte norvégienne en droit travaillant auprès de l’entreprise Arntzen de Besche, a souligné, de son côté, que « dans l’industrie pétrolière et gazière, les contrats se font à long terme. Ils peuvent par exemple durer quarante ans pour le gaz et il faut attendre dix ans pour commencer à enregistrer des bénéfices. Les deux parties doivent donc être flexibles pour pouvoir assurer leurs intérêts à long terme ».

De son côté, Dani Kabbani, expert juridique en matière

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pétrolière avocat auprès de Eversheds’ International Corporate Commercial Group, a mis l’accent sur la transparence dans l’industrie du pétrole. « Les entreprises exploitantes et l’Etat devraient rendre public leurs chiffres d’affaire. Il faut que le gouvernement opte pour la transparence et rende compte des gains, des dépenses et des projets effectués. C’est le cas par exemple au Kurdistan », a-t-il dit, manifestant son inquiétude vis-à-vis de la gestion du fonds souverain.

Ayant pour thème « infrastructure et logistique », la cinquième séance a été modérée par Fadi Comair, expert en énergie hydraulique, qui a estimé que « pour parvenir à l’excellence, il faut de la planification et du bon management ». Il a manifesté son scepticisme vis-à-vis de la réussite des plans pétroliers au Liban et cela à cause de la situation politique et l’administration libanaise. Fuad Jawad, géologue libanais a appelé « les experts libanais à unifier les chiffres qu’ils utilisent ». Il s’est également demandé « pourquoi l’Autorité libanaise du pétrole a adopté le taux, extrêmement bas, de 4 % pour les royalties », notant qu’il «vaut mieux revoir ce chiffre à la hausse pour ne pas avoir des regrets plus tard. Les royalties constituent de l’argent pur pour le Liban, ne les perdons pas », a-t-il dit. « Il ne faut pas baisser la barre pour attirer les compagnies de forage », a-t-il martelé, notant que « le Liban devrait avoir lui-même sa propre entreprise de forage pétrolier ». Il a aussi mis l’accent sur « un véritable dialogue national pour réussir à relever les défis que présente l’énergie pétrolière et gazière ».

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De son côté, Imad Makhzoumi, vice-président pour l’Asie de la Future Pipe Industries, s’est penché sur le rôle des PME dans la création d’emplois dans l’industrie pétrolière. « Il suffit d’avoir 25.000 dollars pour monter une entreprise, se spécialiser dans un secteur précis et vendre ses services aux grosses compagnies de forage. Ces services pourraient être liés au transport, à la protection de l’environnement, à la fabrication de tuyauterie, à la vente de fournitures, à l’informatique. Il faut trouver la bonne idée et investir un petit capital car ce genre d’entreprises créé nombre d’opportunités », a-t-il dit, notant que « les banques pourraient jouer un rôle pour encourager les investissements dans les PME pétrolières ». « Il faut que l’Etat agisse avec transparence, définisse clairement sa vision d’une véritable politique pétrolière, et soutienne les entreprises », a-t-il estimé, mettant également l’accent sur « la main d’œuvre spécialisée ».

La séance ayant pour thème «aspects reliés à la création d’emplois », avait pour modérateur, Mohammad Ahmad, professeur à l’AUB. Prenant la parole, l’économiste Kamal Hamdane, s’est penché sur les diverses phases du travail des compagnies pétrolières, le forage, l’extraction et le transport, chaque étape nécessitant un savoir-faire précis et un nombre d’ouvriers et d’employés déterminé. Il a aussi mis l’accent sur la création d’une industrie pétrochimique capable de générer des emplois. Il a dressé un état des lieux du marché libanais travail, mettant l’accent sur les problèmes structurels ; le Liban est incapable d’assurer des emplois aux nouveaux venus sur le marché et pousse ainsi ses jeunes à partir à l’étranger. Il a également noté que la population active du pays se chiffre à 1, 200,000 personnes. 10% occupent des postes de directeurs et 19 % constituent une main d’œuvre non qualifiée. De plus, 92 % des compagnies au Liban sont des micro-entreprises de moins de dix employés.

Aujourd’hui 20 % de la population active déteint un diplôme universitaire contre 5 % en 1970. A cette époque 49 % des ouvriers étaient analphabètes, ce chiffre tombe actuellement à 5%.

De son côté, Patrick Gougeon directeur de l’ESCP Europe London Campus, a confié que « contrairement à nombre de Libanais pessimistes », il estime que « le Liban pourrait vraiment profiter de son énergie pétrolière et gazière ». « Il faut cependant adopter diverses mesures, notamment celle de diversifier les sources d’énergie. Ainsi, même si le gaz est utilisé pour la production d’électricité, il serait judicieux de développer aussi les énergies éolienne, hydraulique et solaire. L’on pourra de cette façon pourvoir des emplois diversifiés », a-t-il dit. « Les universités devraient s’adapter aux besoins du marché qui se transformera dans les dix années à venir, quand les revenus du pétrole commenceront à arriver. Ce marché n’aura pas besoin uniquement d’ingénieurs mais aussi et surtout d’une main d’œuvre qualifiée », a-t-il poursuivi, soulignant la nécessité de « former des équipes multiculturelles et de proposer continuellement de nouvelles spécialisations adaptées aux besoins du marché ».

Sur le thème de « l’impact monétaire et financier des énergies pétrolières et gazière sur le Liban », Camille Menassa, expert en communication, a mis l’accent sur la différence des chiffres présentés selon les experts se demandant comment sécuriser les fonds générés par l’or noir en les protéger du clientélisme politique. De son côté, Alain Bifani, directeur général du ministère des Finances, a souhaité que le Liban crée effectivement un fonds souverain, car il pourra préserver sur le long terme les richesses de avoirs pétroliers, soulignant, dans ce cadre que « souvent des instances sont prévues par la loi mais ne sont jamais mises en place ».

Se penchant sur la gestion des revenus pétroliers, il a noté que le prix des hydrocarbures est très volatile et sa fluctuation peut avoir des conséquences négatives sur le PIB. Il a mis en garde contre le syndrome hollandais, encourageant le Liban à « suivre le système norvégien, où finalement les différences entre le secteur pétrolier et les autres secteurs ont été éliminées ». « Il ne faut pas gérer les revenus pétroliers comme des acquis à dépenser mais comme des avoirs à être investis. Et c’est le fruit des investissements – l’intérêt des revenus pétroliers – qui doit être ensuite dépensé. Ainsi, ce ne sont pas les revenus pétroliers, eux-mêmes, mais les intérêts qu’ils génèrent qui devraient être utilisés pour couvrir la charge de la dette ou payer les employés de l’administration », a-t-il expliqué. Il a aussi souligné la nécessité « d’adopter une politique monétaire adéquate et une stratégie gouvernementale misant sur la transparence ». Lors de la huitième séance, « les implications géostratégiques pour le Liban » ont été présentées.

Prenant la parole, Ghazi Wazni expert économique, s’est posé des questions relatives aux relations futures entre le Liban et ses voisins, notamment la Syrie et la Turquie, ainsi qu’aux liens qui le rapprochent de l’Union européenne.

En guise de conclusion M. Fouad Makhzoumi, PDG du Future Pipe Industries et président du Forum pour le dialogue national, a souligné que « le taux de croissance au Liban variait entre 7 et 9 % durant les années quatre-vingt dix ». « Nous avions réussi, à cette époque, à passer outre les dissensions communautaires et à mettre divers projets en place. Aujourd’hui le Liban compte 4,2 millions d’habitants. 53 % d’entre eux ont moins de 30 ans et la moitié de ces jeunes, qu’ils détiennent des diplômes universitaires ou pas, est au chômage ». « Après la guerre civile, nous nous ne sommes pas préparés aux demandes du marché des pays arabes en matière de main d’œuvre et de savoir-faire à exporter, le Liban ne pouvant pas créer des emplois à ses jeunes », a-t-il dit. « Avant 1996, il fallait que le pays assure 16.000 emplois par an aux nouveaux venus sur le marché du travail mais il ne pouvait créer à l’époque que 9.000. Aujourd’hui, avec la crise des réfugiés syriens, qui concurrent la main d’œuvre libanaise, le problème est de loin plus grave », a-t-il poursuivi.

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Et de poursuivre : « Il faut adopter la bonne législation pour que les Libanais puissent effectivement profiter de leurs richesses et préserver ce dossier, tant bien que mal, loin du clientélisme politique. Si nous voulons assurer un meilleur avenir à nos jeunes, il faut qu’ils sentent qu’ils ont leur place au Liban ». Notant que « le Liban est le miroir de la région sur le plan politique et sécuritaire », il a mis l’accent sur « les potentiels inexploités du pays », appelant « les autorités à agir rapidement, car nos voisins, notamment Israël, se sont préparés mieux que nous pour tirer profit de leurs richesses gazières et pétrolières. Ainsi, ils ont construit un pipeline et ont signé des contrats à long terme pour écouler le gaz ». Mettant l’accent sur l’importance du fonds souverain, il indiqué que les jeunes devraient se sentir partenaire dans la construction du pays et dans la gestion de ce fonds.

« Actuellement, 77% des jeunes libanais pensent émigrer pour s’assurer un meilleur avenir. Le Liban, a-t-il estimé, possède trois richesses : le capital humain, l’eau (bien que le pays n’utilise que le tiers de ses ressources hydrauliques) et ses prochaines richesses gazières et pétrolières ».

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Un débat entre les experts et les jeunes étudiants venus de diverses universités du pays, notamment l’UL, l’AUB, la LAU, l’USJ, et l’Université antonine a suivi. Ils ont été invités à se regrouper et faire un lobby pour demander des comptes au gouvernement. Ils ont posé des questions relatives aux études et aux stages qu’ils pourraient effectuer pour décrocher des emplois dans le secteur pétrolier libanais. L’accent a été mis sur la diversification des études universitaires et des formations techniques adressées notamment à une main d’œuvre qualifiée.

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Séminaire Oil & Gas à Beyrouth

SEMINAIRE SUR LE PETROLE ET LE GAZ AU LIBAN DU 9 MAI 2014 organisé à l’initiative du « Forum pour le Dialogue National » et en coopération avec l’Ecole Supérieure des Affaires de Beyrouth (ESA) et le « Mouvement des Entreprises et Représentations Economiques Françaises au Liban » (MEREF).

LES PARTENAIRES

COMMUNIQUE DE PRESSE 1 et DIAPORAM PHOTOS DU SEMINAIRE

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Euro Med Milano 13-7-2010: Executive Chairman of future Pipe Industry Engineer Fouad Makhzoumi participated in the second edition of the “Economic and Financial Forum for the Mediterranean” on 12 and 13 July 2010, an initiative organized by the Milan Chamber of Commerce officially included within the EU’s Mediterranean framework.

Aspen Bosphorus Dialogue International Conference Istanbul 2-4 March 2012: Chairman of the National Dialogue Forum, Engineer Fouad Makhzoumi participated in the international conference entitled “Double Transition: Economics and Politics across Europe and the Mediterranean” that was held on 2-4 March 2012 in Istanbul by the Aspen Institute Italia. The participants of the conference discussed the overarching issues resulting from the relationship between the various actors in, as well as the transformation taking place throughout the region.

Conference at the Italian Senate - Rome 18-4-2012: Chairman of the National Dialogue Forum, Engineer Fouad Makhzoumi attended a conference hosted by the KAS office in Italy, in collaboration with the Fondazione Alcide de Gasperi, who posed the question of the appropriate EU strategy for a stable Mediterranean region (Italian President Giorgio Napolitano attended the event).

Euro Med Milano 12-11-2012: Executive Chairman of future Pipe Industry Engineer Fouad Makhzoumi participated in the third edition of the “Economic and Financial Forum for the Mediterranean” held in Milan from 12 to 13 November 2012, welcoming prominent guests from governments and institutions of more than 35 countries. (Former Italian Prime Minister Mario Monti attended the forum).

MENA Economic Forum at AUS in Sharjah 3-2-2013: Executive Chairman of future Pipe Industry Fouad Makhzoumi attended the MEF 2013 which hosted a series of panel discussions aimed at exploring areas for mutually beneficial partnerships between the MENA region and Europe. It was held under the patronage of His Highness Sheikh Dr. Sultan Bin Mohammed Al Qassimi, Member of the Supreme Council, Ruler of Sharjah and President of American University of Sharjah (AUS).

Visionary Entrepreneur Panels Biel 19-4-2013: Executive Chairman of future Pipe Industry Fouad Makhzoumi participated in the 13th session of the First Employment and Guidance Forum in Lebanon and the region “Forward” and the third session of the Business Forum “Entrepreneurship Business Forum”, under thepatronage of the former Minister Mr. Nicolas Nahas and the presence of former Minister Mrs. Leila Soloh as a “guest of honor”, at Biel.

University Leadership Council - American University of Sharjah 26-5-2013: Mr. Fouad Makhzoumi, Founder of Makhzoumi Foundation participated in the conference on Role of Philanthropy in Sustainable Development which was hosted by University Leadership Council (ULC) of the UAE in Dubai today under the Patronage of His Excellency Sheikh Nahayan Mabarak Al Nahayan, UAE Minister of Youth, Culture, and Community Development.

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ND - Oil & Gas 7-5-2014: Chairman of the National Dialogue Forum, Engineer Fouad Makhzoumi participation in press conference regarding “Oil & Gas: Lebanon’s National Wealth Forum”, Hosted by Forum for National Dialogue, in joint cooperation with ESA and MEREF, At E.S.A. – Beirut

FND - Oil & Gas 9-5-2014: “Oil & Gas: Lebanon’s National Wealth Forum”, Hosted by Forum for National Dialogue, in joint cooperation with ESA and MEREF, At E.S.A. – Beirut

Valdai Discussion Club Forum in Marrakesh 13-14 May 2013: Chairman of the National Dialogue Forum, Engineer Fouad Makhzoumi participated in the conference of the Middle East Dialogue of the Valdai Discussion Club entitled “Islam in Politics: Ideology or Pragmatism” which was held on May 14-15, 2013 in Marrakesh. The conference was attended by 73 political, public and religious figures and leading experts from Russia, Europe, the United States, the Arab Middle East and North Africa, Iran and Turkey.

Le Havre 24-9-2014: Executive Chairman of future Pipe Industry Fouad Makhzoumi participated in the 3rd edition of the LHFORUM/Positive Economy Forum in Le Havre, which gathered 6,000 participants from the 23rd to the 26th September 2014

Regional CSR Network in Manama Bahrain 23-10-2014: The board of the Regional Corporate Social Responsibility Network (CSR) designated Chairman of the National Dialogue Party, Engineer Fouad Makhzoumi, as International Ambassador for Corporate Social Responsibility for the many efforts he has deployed in the fields of social responsibility, sustainable development, and community service.