The Exclusive: Lebanon`s Industry Pulse by The Exclusive

THE EXCLUSIVE Lebanon's Industry Pulse

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The Argument:

SUCCESS STORY: Will an electric car lead Lebanon to a promising destination?

EXCLUSIVE INTERVIEW: "New investmens initiatives are wanted and needed." EXPO 2020 DUBAI: Lebanon Pavilion: Together we walk

March 2022 | the-exclusive.digital

THE EXCLUSIVE

SUMMARY Lebanon's Industry Pulse

09 THE ARGUMENT Is Lebanon beyond repair? Did we all fail this beautiful country?

22 GO GLOBAL Most of the markets in the world are going global, especially after the pandemic. Why wouldǹ't you?

26 FOUR-WHEEL HOPE Quds Rise is a coupé model with a battery capacity of 45kWh. It has a maximum speed of 180 kilometers per hour, a maximum horsepower of 180 HP, and a maximum motor power of 120 kWh.

30 EXCLUSIVE INTERVIEW

44 TSEZ PROJECT IS THE BEST PLATFORM

OUR STAFF: Publisher: Raluca Buna Business Development Manager: Ionut Oprea Creative Director: Reine Nehme Senior Editor: Latifah Hassanieh Senior Editor: Maria Aziz Contact us at hello@the-exclusive.digital for any inquiries, advertising or partnership opportunities.

38 NEW INVESTMENT INITIATIVES ARE NEEDED AND WELCOME!

64 ENERGY IS A MANAGEABLE EXPENSE - PERHAPS THE MOST MANAGEABLE EXPENSE!

Cover Photo by Elie Korkomaz A special thank you for all their support and involvement goes to:

THE ARGUMENT

"I helped my Government do this"

“Social responsibility is an ethical framework and suggests that an individual has an obligation to work and cooperate with other individuals and organizations for the benefit of society at large.” “Social responsibility is a duty every individual has to perform so as to maintain a balance between the economy and the ecosystems.” That means that each of us is responsible for what is happening around us, in our backyards, neighborhoods or country. Now most would think, how can I influence what is happening in the country or in my community, as I am not a Member of the Parliament or a politician. And still, in a way or another, when it comes to Lebanon, everyone is affiliated to a party, the only different thing, is the level of involvement in that party. Nobody says this is a bad thing, unless we actually consider that most of the people are the “follower” type, the sheep kind. So, when the Leader of the party plays the music, everyone dances the same way, kind of a rehearsed Flash Mob, Lebanese version. Very important fact, in Lebanon, politics and religion are like Siamese Twins. And when you talk about 18 types of religions in a 10.452 km2 surface, and people actually having guns, just to have it, with no authorization or any legislation to stop them, doesn’t that sound like fun? According to the Ministry of Interior, in 2018, the total number of registers in Lebanon was 3,746,483. Even though, the general

elections were postponed since 2013 (don’t ask why, we don’t what to bore anyone with that story), only 49.68% actually voted, which means only 1,861,203 exercised their right. If we were to analyze these numbers deeper, we would understand which party has trained their sheep better and which didn’t. What I meant is that you can see which of these parties are doing their best in order to create a better place for Lebanese to live in. Just because you were one of the 1,861,203 people that voted, it doesn’t mean you have done you social responsibility duty and now your job is done for the next four year. You should go further, follow up with their action, hold them accountable (Accountability is when an individual or department experiences consequences for their performance or actions. Accountability is essential for an organization and for a society. Without it, it is difficult to get people to assume ownership of their own actions because they believe they will not face any consequences) for what they are doing or not doing and be more involved in whatever is happening in your area, including considering your own responsibilities: YES, you do have responsibilities as the citizen of a country, which include voting, volunteering, being transparent, raising your voice (I said voice, not gun), taking care of the areas in which you pass by (which can actually mean just, not leave a trace for people to know what you ate and drank) and so, many other things.

Welcome to the Republic of Ma fi

Let’s recap: we were saying that 2020 was the worst year for Lebanon in the last God knows how many years because of the Corona sanitary crisis, the banking system collapse, the currency depreciation, the lack of government for many months, and of course the 4th of August blast and so and so… Like in all the “Hold my beer” memes, 2021 decided that we haven’t learned much from 2020 and that we need yet another lesson, actually, it was a whole new university year. We continued our intensive course in failing to form a government for almost a year. At some point, in July, one of the professors got bored and left the class. The second part of this course was way shorter, and we sort of passed it on September 13th. Now, that we graduated, we are having the “Let’s have a funny government that likes to keep us in the dark from time to time and likes to support citizens in violating regulations, rather than to actually amend them”. Another course, in finance, is teaching us, since 2019, how to create a long-term Ponzi scheme and how foreign currency exchanges work: the official value of a dollar in Lebanon is 1500 LBP, few dollars from your old account can be withdrawn from the bank, in limited quantities, at a rate of 3900 LBP. You can try buying from the BDL at a rate of 12000 LBP, or just buy the foreign currency at the black market exchange rate of 20000 LBP and rising. We are trying to reach the top 1 in the biggest devaluation of a currency, so, forgive us as we are taking our time.

A hobby that we lately have is “staying in lines”. “Staying in lines” may seem like something everyone is capable of doing, but it actually is a complex activity. It requires the involvement of all your muscles, and sometimes we actually combine it with kick-boxing and may include accessories like guns or bats. This hobby started to be our favorite for a few months now, in the fake crisis of the fuel, and we like it very much because it is a very interactive way of networking. Unfortunately, as the government is considering we are making too many new friends, they made it even more expensive – 300000 LBP (official prices in USD: very close to 200; real market value, around 15 USD) In a country where the minimum wage has reached around 43 USD, it is practically impossible to live. To is noted that Lebanon has had an electricity problem since the 80s, not acknowledged as a problem due to illegal generators that supplied the gap both in the private and in the public sector. We are talking about a country that is heavily dependent on heavy fuels for almost everything, including telecommunication networks. Now for does who know how the domino effect works, imagine how things turned out to be for those who live in Lebanon tik tik tik puuf.

THE EXCLUSIVE A SOLUTION LOOKING FOR A PROBLEM:

subsidies Subsidies are a sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low. Their role is usually to support economic growth or the less fortunate to be able to afford basic commodities. But they are deadly even in cases in which the government, with good intentions, without an optimal implementation. A blessing for some, and a curse for others, like in the case of Lebanon, in which subsidies, especially when it comes to fuel, but not only, was like treating the disease while symptoms abate. Even though they had a very long life in Lebanon, an analysis by UNICEF and the international labor organization (ILO) revealed that only 20% of subsidies benefit the poorer half of Lebanon’s population. This is because the wealthiest have the greatest and most consistent access to subsidized goods with their purchasing power. Even households that have moderate purchasing power are limited as a result of the devaluation of the Lebanese lira. Given Lebanon’s overreliance on private for-profit social services and the lack of viable safety nets or public social services, their economic burden is now even greater. So, we can safely be said that the subsidies program is one of many examples of wasteful and unjust policy that ultimately was for the rich and paid by the poor, causing more harm for the social good. Lifting the expensive and ineffective subsidies program was economically detrimental. Food inflation alone in Lebanon is among the highest worldwide. In addition, Lebanon`s public social services are underfunded or virtually nonexistent and over 80% of the country`s hospitals are private. Its main social security program has implemented budget cuts in recent years and owed unpaid government dues. We cannot forget, that not long ago, access to medicine has been extremely limited, with more than half of brand drugs unavailable, Lebanon faced the problem of smuggled medicine in Egypt and Iraq. The same issue existed for the fuel, which was mainly smuggled to Syria. Meanwhile, in addition to panic buying, suppliers have been stockpiling medicine and pharmacies have been unable to afford them; gas stations limited their sales and opening hours and of course, the result was chaotic.

Motorcyclists and cars gather inside a gasoline station after security forces raided and ordered the station owner to distribute gasoline to citizens, in Beirut, Lebanon, 14 August 2021 (EPA photo)

A demonstrator holds government subsidized bread during a protest in Beirut, on March 2. Photographer: Hasan Shaaban/Bloomberg

INSIDE A CULTURE:

burning tires and playing with guns Do you know those universal solutions or instruments that are advertised on TV or social media? 21 in 1 kind of thing that helps in whatever problem you have? It`s a relative of the “knows how to fix everything” and “know-it-all” kind of person. Lebanon is a country with so many problems, that if we would start counting them today, we would probably finish by next Christmas… and they all have different solutions, but still, there is only one that keeps being applied: burning tires. It is absolutely surprising how efficient is this in solving nothing, absolutely nothing at all, but creating more chaos, but, hey, at least it`s fun and not such a common practice in civilized countries. Why the need for so much research and reports and analysis in order to find a solution? Waste of money and time. Who cares about any research or analysis or whatever? No more fuel? No more electricity? No more money in the banks of an actual banking system? No more medication in the pharmacies? Your salary in Lira has a value of 50 USD? The inflation gained 300 “extra pounds”? Worry not, there is nothing on that list that can`t be solved with a pair of tires burning in the middle of the roads, topped up with some amazing destruction of

properties that aren`t even owned by someone who is in any way involved in the problems mentioned before. What the hell? We burned tires, blocked roads, disturbed the activities of the people trying to survive day by day (because the ones responsible don`t actually care) and all is well in the world! Exceptionally, if this “measure” doesn`t make things worse enough, then, but only then, we are forced to bring out the guns and just randomly create panic and chaos and shoot random people for no particular reason whatsoever. Don’t miss season 4 of Netflix’s latest series, brought to you in exclusivity by Lebanon. Don`t get me wrong! Who doesn`t like to live his life like in a gangster movie from a few centuries ago when u needed candles to light up your house? What I can`t stop wondering is something else, though: Why aren`t you upset about all your money being gone? Stolen? Disappeared? Vanished? Didn`t you actually work for it? Everyone expresses their discontent in regards to the situation... but it seems more like a “my steak was too dry”. Oh, well, let`s try the Lebanese way, and Nshallah, these upcoming elections (whenever they will actually take place) will bring the change that this country needs!

Lebanon`s key figures

LEBANON`S ECONOMIC OUTLOOK remains mired in a deep economic crisis, but tentative signs of a recovery have emerged. Private sector conditions deteriorated at a slower pace in February, as the PMI rose to an eight-month high on the back of softer contractions in new business and output. Liquidity issues were, however, an impediment to demand: Despite the Lebanese pound’s appreciation in the parallel market, currency weakness continued to fuel inflation. The government approved the 2022 draft budget on 10 February, which is seen as a step towards securing much-needed financial assistance from the IMF to combat the unprecedented economic crisis. While securing the Fund’s support would unlock broader international financial assistance, ratification of the budget by parliament is not guaranteed. The blueprint’s approval sparked a crisis between Prime Minister Najib Mikati and the Hezbollah and Amal parties.

LEBANON`S ECONOMIC GROWTH A favorable base effect, after four consecutive years of recession, should see the economy return to growth this year. Meanwhile, underlying conditions will remain extremely challenging amid lingering political tensions that cast a doubt over the government’s ability to govern and undertake reforms. Potential social unrest poses a further risk to the outlook. Our panelists see the economy expanding 1.0% in 2022, which is down 0.9 percentage points from last month’s forecast, and 3.0% in 2023.

LEBANON`S INFLATION Lebanon’s annual inflation rate jumped to a new record high of 239.69% in January of 2022 from 224.39% December 2021, mainly boosted by faster rises in prices of housing & utilities (104.14% vs 103.08%), food & non-alcoholic beverages (483.15% vs 438.65%), transport (541.42% vs 522.39%), amid a sharp depreciation of the Lebanese pound and political crisis. Also, prices increased more for health (444.83% vs 404.94% in December), furnishings, household equipment and routine maintenance (260.29% vs 243.73%). On a monthly basis, consumer prices went up 7.69% in January, the least in 8 months, easing from a 16.52 percent gain in the prior month.

LEBANON Size: 10,452 square kilometers Population: (2021 est.) 7,660,000 Capital: Beirut Head Of State: President: Michel Aoun Head Of Government: Prime Minister: Najib Mikati Form Of Government: unitary multiparty republic with one legislative house (National Assembly [1281])

GDP

December 2020

GDP: 33.38 USD Billion GDP per capita: 5463.56 USD GDP per capita PPP: 11649.05 USD

Consumer Price Index (CPI)

January 2022

Inflation Rate: 239.69 percent Consumer Price Index CPI: 992.24 points Food Inflation: 483.15 percent Inflation Rate Mom: 7.69 percent CPI Transportation: 2164.16 points CPI Housing Utilities: 268.21 points

Coronavirus COVID-19 Cases

March 2022

Coronavirus Deaths: 10206.00 persons Coronavirus Cases: 1084600.00 persons Coronavirus Recovered: 532537.00 persons

Fiscal Expenditure Government Debt to GDP: 171.70 percent of GDP (2020) Government Budget: -16.50 percent of GDP (Dec 2020) Government Budget Value: 180366.00 LBP Million (2021) Government Revenues: 1821275.00 LBP Million (2021) Fiscal Expenditure: 1640909.00 LBP Million (Jul 2021) Government Debt: 132080.00 LBP Billion (Dec 2021)

Balance of Trade Balance of Trade: -1065.01 USD Million (Mar 2021) Current Account: -353.00 USD Million (Jan 2022) Imports: 1380.10 USD Million (Mar 2021) Exports: 315.09 USD Million (Mar 2021) Capital Flows: 1635.80 USD Million (Dec 2020) Remittances: 1043.50 USD Million (Dec 2020) Tourist Arrivals: 234519.00 (Jun 2021) Foreign Direct Investment: 308.21 USD Million (Dec 2020)

Business Coincident Index: 141.09 points (Mar 2021) Competitiveness Rank: 88.00 (Dec 2019) Competitiveness Index: 56.29 Points (Dec 2019) Corruption Rank: 149.00 (Dec 2020) Ease of Doing Business: 143.00 (Dec 2019) Electricity Production: 404.00 Gigawatt-hour (Sep 2021) IP Addresses: 179674.00 IP (Mar 2017) Internet Speed: 2056.08 KBps (Mar 2017) Manufacturing PMI: 47.50 points (Feb 2022)

Taxes Corporate Tax Rate: 17.00 percent (Dec 2021) Sales Tax Rate: 11.00 percent (Dec 2021) Personal Income Tax Rate: 25.00 percent (Dec 2021) Social Security Rate For Employees: 3.00 percent (2021) Social Security Rate For Companies: 22.50 percent (2021) Social Security Rate: 25.50 percent (Dec 2021)

“20|22 Lebanon Business Guide” Your Way to International Exposure Unfortunately, the world now knows that Lebanon is going 2019 through the worst economic crisis in 150 years. However, some local entrepreneurs decided to continue or even start their businesses to be part of the rising future of this amazing country. It is to help them that “The Exclusive” by World Elite Solutions, has decided to launch this coming March the most comprehensive 20|22 business guide, a unique product concept in Lebanon and the region, with a tailored distribution. Thanks to their international know-how, and since 2018, despite a series of misfortunate events, 3 resigning governments, a global pandemic, a massive explosion, and the worst economic crisis ever, The Exclusive is still committed to show the world the bright side of Lebanon and promote the Lebanese private sector.

A premium business marketing tool to promote business companies and projects that will get exposure within organizations and business partners in Europe, the Middle East, Asia, and the USA. The perfect opportunity to better understand and know about projects that will define Lebanon’s evolution between 2021-2025. In the 180 pages of a yearbook in English, with comprehensive, authentic, and shareable content, international readers can explore projects in the pipeline and planned investments for the new market cycle, underlying the potential of growth in Lebanon, post-global crisis, in 2021-2022. With a circulation of 100.000 printed copies and 2.5 million digital copies, the Lebanon Guide will become the ultimate commercial tool for anyone wanting to explore the Lebanese market. This B2B guide will help support the promotion of key investors, developers, and service providers during the recovery times, an invitation to a coordinated information campaign for all stakeholders interested in the evolution of a certain sector.

Do not miss the chance to be part of the first edition of this yearbook!

The 20|21 Business Guide will include: - Commercial presentations of projects in progress and investment opportunities, in dedicated sectors related to Energy & Environment, Industry, Real Estate, Infrastructure & Transportation, Information, and Computer Technology; - National strategies, international financing opportunities, and projects that will define the country’s future between 2021-2025; - Business communities, business districts, industrial zones, regional projects and opportunities, in-depth market analysis, studies, and evolution of cities and areas, in addition to interviews with stakeholders and leaders. The yearbook has controlled distribution (complimentary), inoffice buildings (including receptions), logistic parks, industrial parks, to their clients, to investment funds, ministries, embassies, business clubs, banks, bilateral chambers of commerce, investors associations, multinational companies, transport, logistic companies, in Lebanon and CEE. It will be the exclusive business & marketing tool for GITEX | MIPIM 2023 | EXPO REAL | World Future Energy Summit at The Exclusive’s booths and conferences.

LEBANON AT EXPO 2020 Despite the worst economic crisis back home, Lebanon was ready to meet the world at Expo 2020 Dubai. Though the pavilion may not be extravagant, due to budget constraints, it carries a loud message and is rich in essence:

TOGETHER WE WALK!

Dubai's Expo 2020, the first-ever world's fair to be held in

The third space is a multipurpose space featuring corporate as

the Middle East, opened its doors to the general public in

well as cultural content displayed simultaneously on 4 large

the midst of the Covid-19 pandemic. Postponed for a year,

screens. This space is apprehended as a TV room in a forest of

Expo 2020 is the biggest event open to the public since

swings reproducing the mobility and synergy of the Lebanese

the health crisis broke out in late 2019. We give you a

people and their ability to always move forward. It also evokes

quick tour of the Lebanese pavilion. The Lebanon pavilion

the lush Lebanese forests and the quality of the outdoor life

at Expo 2020 Dubai was organized by the Federation of

that is among the country’s greatest natural assets. The

Lebanese

screens will feature short movies in relation to the opportunity

government, and in cooperation and coordination with the

Chambers,

commissioned

the

subtheme and will be tackled through Innovation, Inclusion,

Ministry of Economy and Trade. It has been placed in the

and

Opportunity district by the expo organizers, which gives it

Tourism, Heritage and Culture, Arts, Sports and nature,

a positive notion that holds a spatial and dynamic

Governance.

dimension as it is inscribed in the future. The pavilion

The concept store exhibits exquisite artisanal products,

includes the Together We Walk experience, an art gallery,

souvenirs, and ready-to-wear fashion clothes specially created

a multipurpose space, a concept store, and a wine bar and

by famous international Lebanese designers.

restaurant.

The Wine bar features the Lebanese Wine Industry with more

By stepping into the Pavilion, the visitor can experience

than 19 internationally renowned brands. The restaurant

the first space dedicated to the immersive experience

serves Lebanese specialties (slow food) for the visitors and

entitled “Together We Walk”. An invitation to join the

could serve gastronomic Lebanese cuisine during special

collective walk of the Lebanese people that refers to the

events.

knowledge,

Education

and

Youth,

New

Industries,

principles of synergy and solidarity, of encounter and connecting minds, that creates change and opportunity. It

The incredible platform of the universal exhibition Dubai 2020

embodies a poetic and hopeful narrative built on an

will hopefully allow Lebanon’s voice to echo loudly and

emotional, sensorial, reflexive experience in which the

highlight, through the pavilion, through its most valuable asset

visitor is invited to take part.

which is its Human capital. As a true talent incubator, Lebanon

The itinerary continues through the second space which is

has a lot to offer, especially through its Diaspora that spreads

a temporary exhibition space where Lebanese artists

its creativity throughout the world and extends its influence

participate in thematic rotational exhibitions on a monthly

beyond its geographical borders. It is therefore from a solitary

or bi-monthly basis, selected accordingly to the main

connection between the Lebanese and their Diaspora that the

theme covering traditional visuals arts such as ceramics,

Lebanon of the future will be fully integrated with the modern

sculpture, paintings, as well as the most comprehensive

and globalized world, and that it will remain at the forefront of

digital art creations.

everything that is created today on the planet.

Today, Lebanese citizens and enterprises are resisting the greatest massive financial collapse ever happened since the establishment of their state. Despite the wars that ravaged the past, economic experts consider this crisis as the most devastating one. For nearly two years now, the Lebanese economic crisis has had a devastating impact on business. A report issued by the World Bank last June revealed that Lebanon is suffering from a severe and prolonged economic crisis in which the country is mired in an economic breakdown that ranks among the top three most severe economic crises in the world since the mid-nineteenth century. The country has been fighting compounded problems, economically, financially, and healthwise with the outrage of Covid-19. The banking sector has collapsed as well as other vital sources, not to mention the purchasing ability that is doomed, due to currency collapse. Lebanese are aware now that their business is in great trouble, and this created the need and tendency to spread globally. Transferring a small business into a global one is a complicated but dynamic process. It needs a deep understanding of the targeted markets, the competition, the current local market trends, and the requirements to successfully launch and drive growth with an essential foundation. Common Standards for Global Expansion As much as there are many benefits of globalizing the market, including increased international trade expansion, it is of great importance to be well informed of the obstacles and dangers that might hit your head. Knowing “why” expand is essential because it will drive decision-making and help you to better measure your success. Here are some common international standards, and requirements for spreading business globally: Well-prepared international communication and marketing international strategies, which are recommended to be formal and multi-level strategic, that businesses use to enter an overseas market. Establishment of a growing presence, and becoming profitable. (This includes internal business audit, ensuring internal variables like product offerings, service types, and overall brands are market-ready.) Extend the sales life of existing products and services by finding new markets to sell them in. Exploit corporate technology and know-how, and learn how global marketplace work, to compete against foreign companies-and even take the battle to them on their own ground.

"Globalization can be incredibly empowering and incredibly coercive. It can democratize opportunity and democratize panic. It makes the whales bigger and the minnows stronger. It leaves you behind faster and faster, and it catches up to you faster and faster. While it is homogenizing cultures, it is also enabling people to share their unique individuality farther and wider." (Thomas Friedman, 2003).

Besides, expanding internationally, is a risky step in which you need to indulge into an unfamiliar linguistic and cultural environment, where you need to explore the business case for international expansion, and evaluate the financial impact on the wider enterprise, collaborate with a global staffing partner, consider any legal and compliance issues, and implement your overall international expansion strategy. Studying the market needs, culture, language, and events are essential to spread your business. Hence, this why it is essential to follow up and do your homework by going deep into social norms where you intend to grow your business. As globalization ought to be shaped and managed for the betterment of business, here where marketing and communications strategists are best needed. In this case, communication is usually known as promotion, which refers to all forms of communication used by organizations: to inform, remind, explain, persuade and influence the customers’ attitudes and buying behavior. The primary purpose of the marketing communications is to tell customers about the benefits and values that a product or service offers, using different forms as advertising, public relations, personal selling, publications, direct marketing and sales promotions. For the international companies, a big question pops up: What form of global marketing communications are needed to be developed, as the environment varies in different countries?

Global advertising, however, offers the company’s economies of scale, unified themes, builds long-term product identities, and offers significant savings in production costs. Advertisers who follow the localized approach though, are skeptical of the global campaign efficiency, as the customers still differ in different countries and must be reached by tailored advertising campaigns (Carter, 1997). Effective advertising requires the development of different creative executions or presentations for different countries or regions, especially if the creative execution is connected with certain cultural attributes, where the execution may have to be adapted to each country. Usual obstacles are cultural barriers, communications barriers, legislative problems, and others. Besides, the advertising strategy of a leading brand or product is normally quite different from that for a minor brand.

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World Elite Solutions has launched new communication consultancy services that include researching potential distributors and partners, access to events, and spreading their messages through publications and media, in order to establish new business connections. These services include researches that are based on the products or services provided, and help in promoting it in the appropriate regions and countries.

A Light in the Darkness ... Lebanon’s Bank Governor Riad Salameh just announced that the Central Bank will lift subsidies on fuel imports. An inevitable decision considering the major economic crisis the country is facing since October 2019, translating into a fuel crisis, which has lately seen increased hours of power cuts and long lines of cars queuing at gas stations. In the middle of the chaos, one man chose to bet against all odds and build the first Lebanon-made electric car. Jihad Mohammad looked like a proud man when unveiling Quds Rise to the public. It's the "first automobile to be made locally," he told reporters. It was built in Lebanon "from start to finish", he said of the prototype, emblazoned at the front with a golden logo of the Dome of the Rock, the shrine in Jerusalem's al-Aqsa mosque compound, Islam's third holiest site. After making his fortune in the telecommunications sector in Canada and in construction in the Gulf countries and Iraq, the businessman decided to launch himself in the automobile sector. "This is the first business of my life in Lebanon", says the CEO of E.V. Electra, a startup founded four years ago. EV Electra is the first EV electric automotive manufacturer in Lebanon and the Arab World with more than 300 local employees. The company started as a division of Jihad Mohammad Investment to become an independent entity based in Lebanon with offices in Canada, Cyprus, Germany, Italy, and Norway with a global presence vision. What about the design… "We looked at the market for electric vehicles and found they are either very expensive or not very visually appealing to customers. In order to increase customer interest in electric vehicles, we decided to design and build a car that is in the supercar category and yet affordable for customers with a medium budget", says J. Mohammad.

“Drive with us and we will plant ten trees in your name” www.evelectra.com

Four-wheel hope?

Jihad Mohammad, CEO of EV Electra at the unveiling of QUDS RISE

The future belongs to those who design it... Quds Rise is a coupé model with a battery capacity of 45kWh. It has a maximum speed of 180 kilometers per hour, a maximum horsepower of 180 HP, and a maximum motor power of 120 kWh. The car has fiberglass body panels bolted on light alloy chassis. It is equipped with a built-in charger and a universal plug compatible with all charging stations.

What about the rumors about the design of the car being stolen from MPM Motors, this is what Igor Paramonov, the founder of MPM, has to say: "We collaborated 1 year ago on the Quds Capital. We produced the first prototype for Mohammad which was built on our platform and integrated his design. Since then we had zero involvement with Mohammad and Elektra EV. The new model QUDS Rise is not something MPM has."

COVER STORY

Will an electric car lead Lebanon to a promising destination?

Lebanon has a dying electricity grid, plagued by daily power cuts since the end of the civil war in 1990, where residents are forced to rely on private generators during blackouts that can last more than 20 hours a day. To face this daunting challenge, the hundred or so recharging stations that Mr. Mohammad plans to install throughout the country will be connected to private generators and may eventually be powered by solar and wind energy. The cost of the car? 30,000 dollars. But because of the economic crisis and the dizzying decline in the purchasing power of the Lebanese people, EV Electra, is offering two payments alternatives: 50% cash and 50% cheque banker, or 50% cash and the rest of the amount in monethly payments (975000 LBP) over five years "with 0% interest", according to Mr. Mohammad. He aims to sell 10,000 Quds Rise cars around the world in the first year, and 1 million cars globally by the end of 2022. Fingers crossed. As for the future of EV Electra, the company was made public in Switzerland by EY Global. It is in the process of launching a Blockchain Initial Public Offering for ten percent of its capital.

"We strive to craft new electric vehicles that meet and exceed our customers’ expectations."

EVS ARE INSTRUMENTAL IN THE FIGHT AGAINST CLIMATE CHANGE! Barriers to widespread EV adoption remain, notably the lack of "public knowledge" according to a new report by Liban Energy (LPS). A majority (52%) of Lebanese residents agree that electric vehicles and green power are instrumental in combating climate change, and 46% agree that governments should promote the use of renewable energy and green power solutions, according to a report from market research firm Ipsos and Manalco, a leading global provider of EV charging solutions in Lebanon.

For a Better future and a green-powered Lebanon !

In today’s globalization, THERE ARE NO BOUNDARIES.

George Boujikian, a businessman from Zahle, the current Minister of Industry, holds a diploma in Job Evaluation, Management of Training First, Management of Costs and Control, Planning and Production, among a few others, from Canadian Universities.

What measures can be taken to support the industrialists in terms of electricity shortage? The Lebanese industrialists have been facing numerous challenges for long years. Still, despite the incumbent hindrances - mainly the policies adopted by successive governments, that did not embrace nor believe in the industry’s vital role in boosting the Lebanese economy- industrialists managed to overcome these obstacles and succeeded in entering the most demanding global markets such as the United States, Europe, Australia, Canada, and Japan, in addition to the Gulf’s brotherly and friendly countries and Africa.

These successes stemmed from the industrialists’ perseverance and determination to renew and develop their businesses; considering most Lebanese entrepreneurship are family businesses tied to legacy, reputation, family name, and stature. You pointed out electricity shortage; is just one of many other issues industrialists are facing. It is a significant matter, but its solution is widely associated with a comprehensive reform plan of the electricity sector in Lebanon, an increase in the number of power plants, and a grid between Egypt, Jordan, Syria, and Lebanon to supply energy and fuel. Nevertheless, industrialists managed to equip their factories with private generators that do the job. However,

"Industrialists managed to overcome these obstacles and succeeded in entering the most demanding global markets such as the United States, Europe, Australia, Canada, and Japan." the ministry's role was crucial in curbing these needs; it had and still is deploying all its efforts to cover this shortage mainly through joint projects with UNIDO and the EU. These projects include the use of alternative energy (solar power), promotion of energy efficiency, and rational use of energy. Moreover, the MoI offered industrialists training programs, and provided assistance to SMEs in particular, by granting them funds and power-saving equipment. It is worth noting that many other productive sectors do not rely heavily on energy in their production, which cuts down the bill. Electricity shortage remains the main issue for the factories that rely on energy in their production by 40% to 60%.

What is your plan in restoring the right balance in the Lebanese industry sector?

Today, the industry has become one of the main sectors and a vital foundation in the national economy. Industry’s contribution to the GDP has increased. This is an indicator of investment in new industries and an increase in the production of the existing ones. It is a sign of a healthy and prosperous national industry. Since I took office as the Minister of Industry, I started a purposeful campaign to encourage industrialists to comply with specifications in their production. This campaign has been accepted and welcomed by most industrialists that are already committed to quality standards – essential for the continuity and growth of their establishments and for the sustainability of the branding they inherited from generation to generation. We are also working on facilitating the issuance of industrial permits. As for the industrialists’ demands, I endeavor to find solutions with the relevant ministries and administrations. It is a virtuous circle. I believe industry and production in Lebanon are on the right track.

Lebanon’s industry sector needs to increase its exports and lower its imports, how can this be achieved considering Lebanon's Lira depreciation and subsidies lift?

In my opinion, the Lebanese national currency depreciation serves our industrial exports. Statistics show an increase in exports of all productive sectors by 30% to 40%. Several industries even export all their production to foreign countries. As for imports reduction, the industrialists must import raw materials needed for their manufacturing, as well the equipment, machines, and necessary supplies to equip, renew, and expand factories with new production lines. The imports of other products and goods are made by the trade sector and agents. Imports also witnessed a tremendous fall compared to previous years. The strong purchasing power - due to the injection of fresh dollars, either from salaries earned in dollars or from transfers made by the Lebanese diaspora to their familiesplayed a drastic role in the imports volume. This is a healthy indicator; it brings our trade balance into equilibrium, limits the outflow of dollars, and promotes the inflow of foreign currencies into Lebanon.

What new markets should the Lebanese industrialists be open to? In today’s globalization, there are no boundaries. All markets are open to each other. Industrialists only must create a highdemand product that helps them penetrate borders and compete with similar items. Four years ago, the Ministry of Foreign Affairs and Emigrants appointed economic attachés in 20 countries with which we have vital trade relationships. These attachés are playing a crucial role by connecting Lebanese exporters with points of sale in these foreign countries. Additionally, the medium and large industries in Lebanon developed a foreign marketing department to contact their agents abroad. Since the Lebanese industrialists have reached the US, Europe, Japan, China, and Europe, I don’t think it would be hard for them to enter any other country. They just must stay focused and work hard. The MoI will support them as much as possible within its powers, through the simplification of procedures, proposal of new laws or amendment of the existing ones, or taking necessary measures and decisions to protect industrialists.

The Lebanese Industrial sector has always proved its resilience despite all imposed factors counter-balancing its continuous efforts."

An interview with Mr. Mounir Bsat, Secretary of Foreign Affairs | Head of Export Promotion Board

How would you define the strengths of the Association of Lebanese Industrialists? The Association of Lebanese Industrialists (ALI) represents the interests of the Lebanese Industrial body, voicing their concerns and problem to the concerned public authorities. The main objective is to increase the competitiveness of the manufacturing sector by lobbying for a business-friendly regulatory environment, and enhancing the public awareness regarding the positive, much needed impact of manufacturing on economic growth. We try all the time to provide our members a wide array of value added, market driven services, and maintaining sustainability of a strong association through continuous training and capacity building.

What changes in your strategies did you have to make in order to help your members in this crisis?

Industrial Sector was always in a state of crisis, even before October 17th. We were always threatened by extensive operating expenses, loose cross-borders and dumping of products in local markets, and a “hostile” business environment due to old and obsolete business and tax regulations. The crisis has added the financial component which represented a vital threat, especially for industries relying on the local market, because of their inability to secure hard currency to finance the import\purchase of raw materials. ALI succeeded, after re-prioritizing their objectives, focused on providing adequate solutions for this crucial issue: ALI Lobbied with BDL to establish the Oxygen Fund, which represents a Fintech platform to provide financing solutions to Industrialists, and with the cooperation and pressure of the Ministry of Industry, BDL also allocated $ 100M from its reserves to enable industrialists to use their own funds stuck in Lebanese Banks to finance the same purpose.

The Association of Lebanese Industrialists (ALI), established in 1942, is the main national association of manufacturing companies operating in Lebanon. It deals with both economic and social issues concerning business and advocates a policy of balanced industrial development for all Lebanese regions. The Association seeks to create and maintain an environment that is favorable to industrial investment, job creation, growth, and development. ALI represents Lebanese Industry and interprets the needs and recommendations of the industrial community in dealing with public institutions, including the Parliament, the Government, the Trade Unions, and other organizations in Lebanon and abroad. ALI participates actively in policy-making consultations on a very broad range of issues, including economic and social policy, labor legislation and industrial relations, social security and health care, taxation, policies for small and mediumsized enterprises, education, and research and technology, and the environment.

What have you learned in the last 18 months? What could you have done differently?

What is your message members and partners?

As Industrialists, we have confirmed our previous convictions on the importance of directing our efforts towards boosting our exports and promote industrial activities as the most important engine of growth for the Lebanese Economy. As for ALI, the crisis had a positive impact on strengthening the relationship between the Association and its members, especially when members sensed in a tangible manner the tremendous efforts to fight the circumstances of the almost impossible operation under the Financial\Economic crisis, not to forget the pandemic crisis.

The Lebanese Industrial sector has always proved its resilience despite all imposed factors counter-balancing its continuous efforts. As a reminder, the crisis for the industry didn’t start on October 17th, 2019, but much before that. A successful entrepreneur is the one who succeeds to transform a threat into an opportunity, and the opportunity is there: Currency devaluation closed the big gap in the trade balance and offered the Lebanese products a remarkable competitive advantage in both the local and export markets, it is the correct timing to invest in growth and quality of products to allow the industry regain its normal contribution in the national income Lebanon.

What are the objectives of ALI for 2021/2022? ALI would proceed in implementing its strategy, of course after introducing the necessary changes to adapt to the current situation: - Advocacy and Public Policy. - Promote Industry Capacity as a source of Economy growth. - Improving awareness of the Industry's positive impact on all levels.

for

the-exclusive.digital

your

Beyond the economic crisis...

It`s no secret for anyone that until the beginning of the crisis, Lebanon`s focus was on services, more than the industrial sector. But, even so, there are multiple types of industries in Lebanon and we put together a small percentage of what some of the industrial facilities that we can find here.

2021-2022 with its economic crisis and global pandemic, has started one of the most needed changes that Lebanon needed: switching from import of goods, to more "Made in Lebanon" products and uses.

Industry is at this moment one of the sectors that is keeping the country from drowning and we hope that all the initiatives that exist at this moment, will be able to support even more this sector and boost it to the standards that can be reached.

EXCLUSIVE

"The industrial sector has survived and has risen up to the challenges and was able to achieve a little bit of progress compared to other sectors."

"NEW INVESTMENT INITIATIVES ARE NEEDED AND WELCOME." Interview with H.E. Dr. Imad Hoballah, former Minister of Industry

What is your outlook on the industry`s evolution in 2020 and your perspective for 2021? Lebanon has faced compounded challenges in 2020: Largest peace-time economic and financial crisis, in addition to the corona epidemic outbreak. The Lebanese pound has lost around 90 percent of its value since late 2019, and the central bank's foreign reserves, which have been used to subsidize basic goods such as fuel, medicine, and wheat, have dropped. This created major obstacles in the vital economic aspects, especially the industrial sector, and this was eventually expected.

However,

believe

that

the

industry

sector

has

Lebanon

will

never

overcome

the

current

survived and has risen up to the challenges, and it was

situation.

able to achieve a little progress compared to any other

In addition to the above, I address Lebanese

sector.

people to buy Local products. The government

Regarding 2021, the country still suffers from a

alone

constitutional

collaboration with the private sector to be able

void,

where

caretaker

government is ruling, while political talks are in the process to reform a new one. The caretaker government cannot make major decisions, and this might expose Lebanon to further financial problems.

can

nothing.

need

some

to rescue the country as soon as possible.

Which

trends

development

and

will

influence

success

the new

investments/projects in Lebanon?

In the middle of this, and while we are struggling

It is well observed that Lebanon lacks

to fight covid_19, I expect that we will keep on

profitable

confronting the crisis for some time.

have initiated major activities to attract as

investments.

Nevertheless,

new

such, mainly by referring to the Investment

investments, since the cost of the industry in the

Development Authority of Lebanon (IDAL),

country has accelerated big time, though we

for the facilities offered in terms of taxes

assure providing good quality, and we believe

tariff especially. On the other hand, we at

that

the ministry of industry are working to

Nevertheless,

our

Lebanon

industry

has

needs

some

become

extremely

competitive compared to the rest of the world, especially the Mena region.

facilitate investments in industrial zones that will help investment grow.

Hence, we expect many of our industry sectors to be able to compete all over the area. We do expect our exports to rise to 7-8% and our industrial sector to grow by about 45%.

What are the main challenges that you faced as a minister and, what lessons have you learned from the crisis?

We believe that our industry has become extremely competitive compared to the rest of the world, especially the Mena region."

Apparently, the crisis and the pandemic have affected all sectors in Lebanon, financially and socially, which in return has left its impact on funds and investments. But the biggest problem lays in our economic plans and strategies that don’t take the industry or even agriculture into account. The main issue about Lebanon is its rentier economy, and the biggest struggle ever has been to change it to a productive one. We have learned many lessons from the crisis. Maybe one of the major lessons should have been directing the efforts towards industry and production, otherwise,

Lebanon needs new investments. With the help of reorganizing the banking sector, I believe those new investments will be able to flourish in Lebanon, and people will be able to benefit from them. On the other side, Lebanon is rich with expert, educated, and professional citizens. Hence, we need to invest more in those and support them worldwide. If we build good relations outside the country and prepare strategic plans for investments in the fields of technology and industry as an example, we will be able to nourish Information Communication the-exclusive.digital

Lebanon is rich with expert, educated, and professional citizens. " Communication Technology (ICT). This is possible remotely too. Therefore, we expect those trends to improve the industrial sector in Lebanon, mainly in technology and telecommunication.

What measures would you like to see implemented by the government, to ensure that Lebanon can survive facing international competition and increase interest for more investments? As far as the government is concerned, we are already moving forward, but I recommend the new government immediately work on making our economy productive. This requires great efforts in different major aspects, like investing in new factories, focusing on training people, and securing new and existing investment, otherwise, we will be losing the sources we already have. In addition to that, we need to extend payback for taxes, facilitate exemptions or tax relief, and eliminate taxes related to customs specifically in raw materials. Lebanon also needs to empower its export, by referring to specialized economic advisors or economic experts, within the ministries to help. Corrective actions should be

taken,

preparing

well-oriented

external

agreements to support the country and its industry. On the other hand, it is very important to reduce the cost of imported raw materials while securing our products. Eliminating all tariffs on the imported raw materials and primary materials would be the key.

Tourbol Master Plan

Lebanon is facing multiple challenges due to the

In line with MoI Industrial Vision “Lebanon Industry

consecutive happenings that influenced its status quo.

2025”, working in close partnership with the Ministry

Starting from the Syrian war in 2011, to the

of Industry (MoI), the Association of Lebanese

deteriorating monetary and economic situation in

Industrialists, and the international community,

2019, to the increased tension on the socio-political

industrial zone development, and inclusive and

fronts, to the ongoing impact of the COVID _19

sustainable

pandemic on major businesses and industries, and

UNIDO’s top priorities in Lebanon.

industrial

development

are

among

recently, the devastating August 4th Beirut blast. All have proved the ongoing need for accelerated

In this context, MoI collaborated with UNIDO to

industrial development and sustainable initiatives to

develop its Strategic Plan for the Development of

support

Industrial Zones (2013-2018), as a key policy tool to

productive

sectors,

job

creation,

and

economic growth.

foster job creation and economic growth. On another hand, as part of the UNIDO/MoI Industrial Zones

The industrial sector in Lebanon has been severely

project funded by Italy, master plans and feasibility

impacted by all the beforementioned challenges.

studies were completed for 5 new sustainable

These add to additional chronic structural ones

industrial zones: Tourbol, Joun, Baalbek-El Hermel;

mainly a non-sustainable economic model favoring

Al Qaa, and Baawerta.

consumption and services over productive sectors and an unconducive business environment leading

These zones featured in the Government’s Capital

to a limited contribution of industry to the GDP and

Investment Plan prior to October 2019 outbreak and

to poor infrastructure.

were expected to create approximately 31,000 jobs

Lebanon Industrial Zones

UNIDO LEBANON CONTINUOUS COMMITMENT TO THE DEVELOPMENT OF INDUSTRIAL ZONES and impact 200 enterprises across Lebanon. At that

Despite all challenges, the economic and

time,

financial

financial crises, which erupted in October 2019,

commitments of 7 million euros (USD 7.9 million)

imposed a revision of the economic model of

from the Italian government and 52 million euros

the country in favor of a more sovereign and

(USD 59.3 million) from the European Investment

resilient economy based on productive sectors.

Bank (EIB) for their construction and development.

Also, with the drop in merchandise imports a

The

and

result of the current financial crisis, more

Development (EBRD) have also considered a loan

attention is being directed towards locally

of 42 million euros (USD 47.9 million) for

manufactured products.

the

zones

European

have

Bank

for

attracted

Reconstruction

Baalbeck Zone Definition

investments in the development of these zones. Through its mandate and with the generous Another important component of UNIDOs work is

support of the donor community, UNIDO will

environmental sustainability. Through the Lebanon

continue playing its part in supporting inclusive

SwitchMed II MED TEST III project funded by the

and sustainable industrial development in

European Union (2019-2022), challenges are being

Lebanon. This is underpinned by joint working

tackled by mainstreaming the concepts of industrial

and building partnerships with public and

resource efficiency and cleaner production (REC)

private sector partners, in order to ensure the

and by fostering the principles of circular economy

successful implementation of projects and

in two existing pilot industrial zones as means of

programs, and to positively contribute to the

reaching greener, more competitive and more

achievement

resilient industrial zones.

Development Goals.

the

UN’s

Sustainable

Tourbol Zone Definition

the-exclusive.digital

TSEZ PROJECT IS THE BEST PLATFORM for launching new and profitable businesses and industries in Lebanon.

"The Tripoli Special Economic Zone authority is going to launch a campaign by proposing and promoting itself to the local investors."

What type of adaptive measures

incentives

the

the project needed? What were

interested

establish

the lessons of this period?

enterprises

not

traditional Currently, with the aggressive Lebanese

economical

investors

only

new

the

industries

and

agriculture, but also in the digital and

industry where the existence of

global COVID19 situation, the main

two main centers, the Industrial

issues facing the Tripoli Special

and Logistics Center (ILC) and the

Economic Zone development are

Knowledge

the lack of government financial

(KIC), with a set of financial, fiscal

support as well as the difficulty of

and administrative incentives, will

attracting new investors from

facilitate

abroad.

business in order to increase the

decision upcoming authority

quick the

going

campaign

promoting

itself

proactive

current

situation, is

crisis

the to

and TSEZ

launch

proposing

the

creation

Center

new

local production and the national exports in different sectors.

and

the

status

your

project(s)

investments

planned

foreign) as the main Lebanese

2021? Which are the advantages

economical/industrial

of your business and products,

help

the

local

What

current

can

the

Innovation

investors (and if possible to the

that

platform Lebanese

economy by offering attractive

going

forward?

What

and

for

2020-

are

expectations from the public

your

Tripoli Special Economic Zone Interview with Hassan Dennaoui, PhD., M. Eng. Acting Chairman/General Manager Tripoli Special Economic Zone Authority

sector, state projects to support future business? Currently, we are in the design phase where the ILC master plan/detailed infrastructure design

as well as

the KIC conceptual design are ready. Thus, the TSEZ two projects/centers are in the development phase where the preferable future track is to execute the development & operation of the sites through two separate

PPP

contracts

guarantee

the

budget

availability, the execution transparency and operation efficiency with a relative project know-how. The public sector will be involved in the next stage through the direct support of the higher council of privatization in Lebanon which will support TSEZ in selecting the best developers/operators that fit within each of the two projects. As for the government support, it is expected to

get

their

commitment

promoting

the

TSEZ

projects at the national level and overseas so we can reach out the investors that might have interest in operating their businesses from Lebanon. What transformations do you expect in your sector, their effects on the Lebanese economy, and in a regional

perspective?

(Areas

prices,

costs,

supply chain, technology disruption, financing, HR, safety & security)

The expected transformations in the free/economic zone sector at the local and regional levels are as following (by areas): Prices/cost: the proposed fees or prices for the leased lands in the TSEZ will attractive for the local investors especially when compared to the other available industrial/regular offered lands. Furthermore, compared to the regional level, the TSEZ leasing schema is very well positioned and can attract more regional investors when Lebanon reachs an acceptable financial and economical stability.

Supply Chain: the supply of raw material for the traditional industrial sectors is becoming more expensive worldwide, so in practice all similar projects in the region will be affected more or less, but the TSEZ has an essential advantage which is its proximity from the Tripoli Port (adjacent to the port) thus reducing the cost of transportation. Technology Disruption: TSEZ authority expected since four years that the technology and innovation will be the future of the industry and commerce. Accordingly, we have created the KIC to offer a platform for innovation and creativity supporting the knowledge /digital industry in Lebanon and facilitating the digital transformation not only in Lebanon but also in the region by offering online/offsite services used today as the alternative/ only available facility. Financing: currently the financing of the projects is not an easy process through the traditional funding agencies/banks, thus we are trying to open the door for the local/regional investors to create consortium or joint ventures having the required knowhow to develop and operate the project effectively.

the-exclusive.digital

HR: the main advantage that we have in Lebanon in general, and in the North in specific is the availability of the human resources needed to execute the TSEZ as well as the industries in TSEZ with very competitive labor cost. Safety & Security: knowing that the economical crisis in Lebanon is creating an artificial environment of instability, but Lebanon is still considered as a stable country compared to the surrounding countries even at the health level where we showed proficiency and efficiency in fighting the COVID19. What is your message to clients and partners? To the local investors and tenants, the TSEZ project is the best platform for launching new and profitable businesses and industries in Lebanon especially with the vast range of offered financial, fiscal and administrative incentives. To the foreign investors and tenants, Lebanon is a very attractive place to reach out Syria, Iraq and Gulf as well as Africa markets for doing business in partnership with Lebanese investors to guarantee the successful market penetration, and TSEZ is the best platform to start from ensuring the ease doing of business and the very generous exemption regime.

"The main issues facing the Tripoli Special Economic Zone development are the lack of government financial support as well as the difficulty of attracting new

investors from abroad."

GLOBAL TRENDS

Future of Supply Chain Management into 2022 and Beyond The COVID-19 pandemic forced supply chains to evolve years in the span of months, as leading companies sought to thrive within a logistical landscape never seen before. A shift from low-cost supply chains to a more resilient and agile framework is a major mark of the pandemic, which has left 87% of supply chain leaders planning to invest in resiliency in the next couple of years. This rapid evolution brings to light the question: The future of supply chain management was forced to arrive today, so what should you expect in the new future of 2022 and beyond? Let’s take a look at the major trends we should expect to unfold in supply chain management over the next few years.

Higher Visibility As we saw during the pandemic, increased visibility into your supply chain’s transportation spend allows you to improve areas of weakness, build upon its strengths, masterfully control costs, and plan accurately for future growth. When you have end-to-end visibility of your transportation spend, you can make impactful, data-driven decisions. By 2023, 50% of global product-centric enterprises will be invested in real-time transportation visibility platforms. These platforms are two-fold: they allow customers to track their orders in real-time, which satisfies the new customer expectation and eases the burden off your customer support team, and they deliver invaluable insights into your transportation costs and performance. Forecasting transportation spending is quite complex, near impossible, without proper visibility into your global supply chain operations and finances, particularly for multi-modal, multi-lanes. However, total visibility into your transportation spending makes it possible to optimize carrier selection, carrier rates, contract management, and routing guidelines. Enhanced visibility also means you can align your transportation budget to your business budget, as well as have a stream of high-quality data to boost your business intelligence. You can make impactful decisions and forecast and plan more precisely to increase your cost reductions.

Reliance on Real-time Data As many as 84% of supply chain leaders say real-time data has helped break down organizational silos across the entire value chain. Real-time internal and external data is vital to control cost centers, measure performance, address procedural gaps, and create transparency within your supply chain’s transportation spend. Eliminating data and organizational silos through centralized, real-time data management drastically improve decision-making and overall team and company performance. Furthermore, as supply chains adopt remote work conditions as a result of the pandemic, it’s even more critical to leverage reliable, real-time data to keep your Transportation Spend Management running smoothly and profitably.

Increased Resiliency Leaders are beginning to recognize supply chains as a significant driver in a company's profit margin and growth opportunities. While 44% of management executives see supply chains as a sales enabler, as well as being a cost center, the pandemic has shown that a resilient supply chain can be the deciding factor between a company’s failure and success. By optimizing your transportation spending, you can control the costs within your supply chain and root out any gaps or unnecessary costs. It also allows you to highlight areas of

of improvement and take advantage of opportunities that could otherwise go unnoticed.

Optimized Logistical Networks A c c o r d i n g t o a G a r t n e r r e p o r t, 7 6 % o f supply chain professionals cite an increase in the frequency of disruption events in the past three years, and in 72% of the state the impacts of these events have also increased. For example, the supply chain industry has seen a shift to omnichannel. An agile network helps you maintain your customer base during disruption and even boost your brand and onboard new customers. Optimizing your logistical network for agility and resilience to navigate through challenges with peak performance and low costs is vital. During the pandemic, the points of sale landscape also changed—customers transitioned to more online shopping, or buying online and picking up at stores (BOPUS). And in-store shopping hasn’t disappeared. These behaviors pile greater demands on logistical networks to consistently fulfill customer orders and replenish retailer stock. Companies shifted between global, regional, and local networks to provide faster delivery times. Supply chain leaders anticipate a 46% decline in globalization and a 61% decline in offshore manufacturing over the next five years. This change brings with it decreased lead times, varying costs, and greater flexibility to meet customer demands. It also begins drafting the boundaries between pure globalization and hybrid logistical networks that can serve customers globally or locally. But do keep in mind that even regional or national strategies require sourcing raw materials, which shift your inbound transportation needs—you’re still global, just with a different transportation mix. It’s important to balance being a globalized, regionalized, and localized supply chain. Understanding your consumer base, market trends, cost centers, logistical network performance, and transportation budget makes it possible to optimize your network to work seamlessly in the face of change.

Shift in Customer Expectations Customer expectations further shifted rapidly in 2020 with demanding faster shipping times for lower costs. As many as 86% of customers expect to keep shopping online even after the pandemic. While 88% o f c u s t o m e r s w i l l p a y f o r s a m e - d a y d e l i v e r y,

76% of supply chain professionals cite an increase in the frequency of disruption events in the past three years o n l y 3 1 % w i l l p a y m o r e t h a n $ 5 U S D, w h i c h h a s set faster shipping at a low- or no-cost as a requirement for leading companies to maintain their customer base. Real-time shipment tracking is another expectation thrown into the fray. As delivery times and estimates grew unreliable during the pandemic, more customers required real-time shipment tracking. The challenge with customer expectations in Transportation Spend Management lies within controlling costs. Returns, for example, have been a driving force in choosing a supplier, e s p e c i a l l y i n t h e r e t a i l s e c t o r, g i v e n t h e f a c t that 70% of customers now make a purchase based on the supplier's return policy. Forecasting and budgeting become more intricate when you include omnichannel sales, faster shipping, and a comprehensive return policy. Hence, utilizing data-driven analytics to measure performance and optimize your Transportation Spend Management can help you overcome these obstacles to meet customer expectations.

Digital Supply Chain Adoption Supply chains have been tardy in adopting digital transformation compared to other industries, and the pandemic pointed out the essential need for digital tech adoption. Only 1% of supply chain leaders currently have a comprehensive digital ecosystem in place, but that percentage is expected to skyrocket to 23% by 2025. Digital transformation includes much more than just moving from spreadsheets to a platform—it involves process automation, cloud-based solutions, payment automation, and more to decrease errors, improve resource efficiency, and deliver valuable insights. Digitalizing your Transportation Spend Management is a large undertaking and requires full commitment from stakeholders, but you’ll reap outstanding rewards. A little over a third (36%) of companies boast technology leadership reporting directly within the supply chain organization, a number which is expected to rise with the development of more digital supply chain initiatives and more comprehensive solutions. A dedicated supply chain tech leader can be a powerful driver in expediting the digitization process and spearheading new initiatives and solutions.

Using platforms that integrate seamlessly, is critical to efficiently digitize your supply chain. Digital transformation of your Transportation Spend Management centralizes data, eliminates information silos, mitigates human error, frees up resources, and allows for more accurate forecasting and planning.

Better Risk Mitigation

Risk management is a huge part of successful supply chain management. As disruptions create larger risks, companies must mitigate them to maintain their customer base and the integrity of their supply chain. In the past five years, 89% of companies had a supplier risk event. During the first months of the pandemic, 28% of companies experienced stock shortages and out-of-stock challenges. Typically these types of situations are detrimental to a company’s brand due to the inability to fulfill customer orders, which often leads to lost customers and market share. It’s not only extreme disruptions that can cause risks, though. How governments and markets react to disruptions can drive up risks with fluctuating tariffs, regulations, customs, and other variables. Damages, delayed shipments, inadequate shipping or storage environments (especially in the case of life sciences), and more are additional factors that can impact your ability to serve customers and maintain market share. Optimizing and automating processes, such as audits, can serve as powerful risk mitigators by eliminating errors, averting delays based on discrepancies, and streamlining operations. Additionally, tracking carrier performance with tools like Performance Managers can centralize data collected in carrier scorecards with comprehensive KPIs and can mitigate the risks associated with choosing the wrong carrier for the job and ending up with damaged goods, delayed shipments, or worse.

More Forecasting Pre-COVID forecasting models have little relevance, and models created during the pandemic can lead to underutilization, under-or overstocking, lost revenue, dissatisfied customers, and more. The old ways of forecasting just don’t work anymore. Frequent forecasting based on real-time, high-quality data through enhanced visibility and cost reduction analysis yields the best results. As omnichannel sales, customer behavior fluctuation, and increasing disruptions make forecasting more complicated, data-driven decision-making can’t be underestimated. Striking the perfect balance requires constant data analysis and forecasting. Because 80% of companies base their strategic planning cycles on an annual calendar, it becomes a problem if a disruption occurs that year and creates an outdated strategy, such as what we witnessed with the pandemic. Normalizing and centralizing data makes it possible to eliminate data silos, constantly review them, and create high-quality reports. Forecasting today needs to be done through leveraging data management processes or optimizing activities of data streams, such as freight audit and payment or carrier management, to obtain the best data available to create reliable forecasts.

Stronger Relationship Management Carriers and vendors operate on an enormous scale and often lack visibility on a micro-level. By sharing data collected through carrier scorecard KPIs, you can help them improve their processes—and perhaps even find to give you a better service and build a symbiotic relationship. Forging strong bonds with carriers and vendors is key to maintaining a resilient supply chain. In times of crisis, strong relationships can make a difference in being able to conduct business and successfully serve your customers. Enhancing your demand planning and inventory management, you can place orders or shipments that coincide with your actual needs, decreasing re-orders, cancellations, or reconfigurations that waste time and money and frustrate you and your carriers. In an e-commerce retail survey, for example, leading companies reported the main concerns being if carriers would cap deliveries during peak times (60%) and if surcharges would strain profitability (59%). During the pandemic, some retail companies shipped 90% more packages than usual. Having strong relationships with your carriers can lead to solutions rather than lost sales and customers.

Increased Disruptions As disruptions are expected to increase, supply chains must evolve to survive. As many as 38% of supply chain leaders are concerned that their supply chains aren’t well-positioned to handle the challenges over the next two years. The pandemic was an extreme example, but disruptions come in all shapes and sizes— natural disasters, politics, economic crises, and more all contribute as disruptions that can be detrimental to a supply chain. The first nine months of 2020 saw a whopping 4200 disruptions to global supply chains, 14% higher than during 2019. This highlights the delicate foundation of global supply chain management and the importance of investing in supply chain resiliency. Some disruptions are sudden, while others can be seen coming. A report issued by the WHO, UNDP, and IPCC found that climate change causing increased heat in the workplace could result in labor productivity output reductions reaching 20%, reaching a global economic cost of more than $2 trillion. Variables like this portray the need for more digitalization within supply chain management, and greater reliance on software solutions to ease the burden off human resources.

A strong logistical network, centralized data, and optimized operations enable you to create a dynamic, agile supply chain that can adapt and overcome disruptions. By optimizing your Transportation Spend Management, you can even start using these challenges to your advantage, as you'll have the insight and control to snatch up new opportunities while the competition is just trying to survive.

Focus on Sustainability Purpose-driven supply chains attract more attention, as environmentally conscious consumers now consider more about their purchases than just the bottom line. Eco-friendly supply chain practices that plan to become carbon neutral, environment friendly, and/or eliminate waste are here to stay, and they’re gaining traction on the global stage. A massive 84% of supply chain leaders plan to invest in climate adaptation and mitigation measures in the next 18 months, while 82% percent say their organization's intention to invest in ethical sourcing is because 'it's the right thing to do.' To adopt a sustainable supply chain practice, however, you need the data insights that enable you to do so without hurting your profit margin. Heightened visibility allows you to better forecast and plan so you can masterfully consolidate shipments, eliminating the need for LTL and excess fuel consumption to lower the total of carrier surcharges. If done correctly through the use of data and optimized processes, going green can be quite profitable.

The Future of Supply Chain The COVID-19 pandemic forced supply chains to evolve rapidly, cramming years of advancement into mere months. Leading supply chains are innovating and adopting more technological solutions that improve visibility, data quality, carrier relationships, and more to optimize their global supply chain’s Transportation Spend Management to prepare for the changes of the future. Tools like Rate Managers and Budget Managers ensure your profit margin remains healthy. By having the information laid out, you can make informed decisions that align with your budget, ensuring financial compliance or flexibility when the need arises. And other solutions like Performance Manager and Carrier Management Services help you automate and optimize RFP and carrier management processes. You gain the ability to keep an eye on the bottom line while remaining agile if new opportunities or unexpected changes arise. Now is a prime opportunity for businesses to pull ahead of their competition through optimizing their Transportation Spend Management and preparing for the future of supply chain management.

"This 2,000 square meters center, located in Beirut, came in response to the increasing demand for eCommerce, with a capacity to process 6,000 online orders per day in a timely and efficient manner." How would you define your company, the expertise, and the strengths of the team?

Net is a regional group specialized in Express Courier Deliveries; First to Last Mile Domestic & International eCommerce solutions; Air, Sea & Ground Freight-Forwarding services; Warehousing; Reverse Logistics services; Critical & TemperatureControlled Packaging and Transportation; HeavyLift & Out-of-Gauge Cargo; and other logistics services covering the entire supply chain across various industries in MENA. With 27 years of local & global experience, we have leveraged our expertise to stay ahead of the everchanging needs of the demanding market and seamlessly bridged the physical with the technology to achieve superior operational efficiency and customer experience. Our expertise lies in listening to our customers’ expectations and provides them with the right solutions through: - A regional presence that covers more than 190 countries worldwide; -First fully automated eCommerce fulfillment center in the Levant, designed to support B2C commerce; -A flexible business model & customer-centric philosophy that enable us to provide our customers with comprehensive solutions and innovative offerings, helping them in return, grow their businesses, and achieve operational efficiency; -An internal team of experts constantly helping us build a competitive advantage in the markets we are present in, and keep on ensuring we remain responsive to a rapidly changing market. Which are the milestones in your activity so far and the objectives for 2021?

One of our major milestones was the opening of an Automated eCommerce Fulfillment Center, the first of its kind in the Levant region, beginning of 2020. This 2,000 square meters center, located in Beirut, came in response to the increasing demand for eCommerce, with a capacity to process 6,000 online orders per day in a timely and efficient manner. The systems installed are designed to support B2C commerce by providing faster pick, pack, and dispatch times, as well as delivery service to ecommerce clients with real-time tracking, thus helping them manage their inventory and orders. Our fulfillment and warehouse management integrated technology solution makes order fulfillment time and cost-efficient. Our objective for 2021 is to replicate this model in both Jordan and Iraq, where we currently operate and hopefully access new markets beyond 2021. This will allow us to handle eCommerce orders fulfillment & deliveries on a local, regional and global level, while in return, help our clients provide their customers with faster delivery and better customer experience. How do you see the markets you are active in evolving in the next years, in Lebanon and in the region? Currently, the region we are active in is facing geopolitical struggles and a quest for stability. In Lebanon, the political and economic crisis is hindering the country’s economic development. However, there are always opportunities in difficult situations & crises. Nevertheless, we believe that the long-term prospect of Lebanon is very promising. The region is moving towards digitization with an increase focus on digital innovation with Levantine

governments prioritizing the ICT sector to drive economic growth and ensure that the Levant is a fertile ground for entrepreneurship and innovation. In Lebanon, eCommerce is expanding with a proliferation of commercial websites by big players and local start-ups, in areas ranging from food to entertainment, conducting business to the local market, while aiming to export local products to the world. Eventually, the Levant markets will likely integrate their economies through a comprehensive “Free Trade Agreement” that will eliminate tariffs, lower investment & nontariff barriers, and make business among the Levant countries and to the world, more productive and profitable. With its geographical location as the gateway of the Mediterranean and Europe to the Levant, this will position Lebanon as an attractive regional hub, ripe for eCommerce growth in the region. How would you describe your current strategy and company`s position in the market? Net is capitalizing on e-commerce especially with its automated Fulfillment Center, while scaling up its operations to serve this high demand locally & internationally, and cater to small as well as large businesses across Lebanon, and help local brands ship their merchandise abroad. We will be replicating our fulfillment center in both Jordan and Iraq, where we currently operate. Our strategy is all about being customer-centric by being agile to cope with customer demand patterns, especially with the Return Logistics where we have designed specific products to cope with the consumer behavior and merchant needs. We also have a flexible business model that caters to this

"There are always opportunities in difficult situations & crisis." sector, state projects to support future business?

NET Fullfillment Center

"We believe that the long-term prospect of Lebanon is very promising." new generation of consumers who are looking for a seamless customer experience at every touchpoint (from order placement, to delivery & payment). We position ourselves as the eCommerce Experts in the region, through our digitized systems and innovative solutions. We are focusing on digitalizing all our business away from paper invoices towards e-billing, allowing our clients to receive electronic invoices and receipts, and make payments online. We will also be launching an improved online logistics services online marketplace, where customers can book all their shipments online without having to refer to a customer service agent. Which of your products are now driving the demand/growth and what might change in midterm?

eCommerce Fulfillment & Deliveries is currently driving local demand, especially with the emergence of the pandemic and the lockdown, which have changed the Lebanese purchasing habits and triggered many companies to shift their businesses online. We are actually facing a tremendous increase in online orders, and had to be agile in adapting to this rapid increase in delivery orders. On the other hand, the economic crisis Lebanon is currently facing has triggered local small to medium businesses to look for ways to sell their products to a global audience. This is changing the landscape of the local eCommerce business and will force us to expand into new marketplaces and grow our service offering to a more eCommerce holistic approach. What are your expectations from the public

Lebanon’s eCommerce market has grown significantly following the pandemic and economic crisis, however, it’s still in its infancy compared to the world. eCommerce has strong potential to expand in Lebanon and help accelerate economic growth. But to realize this potential, it’s imperative for the government to develop an enabling regulatory framework to offer opportunities to many businesses to extend their market reach to become competitive producers for the local market and assist SMEs and merchants in offering local niche products to the Lebanese Diaspora around the world, through: -A secure & stable digital infrastructure. -Logistics & trade facilitation, turning Lebanon into a regional logistics hub. -Full automation of the logistics sector. -Growth acceleration in the e-payments sector. -Customs regulation for eCommerce. -Legal & regulatory framework related to Taxation, Licensing & E-Procurement Regulations, Consumer Protection Law, E-Payments Systems Regulations, E-Signature Law, etc.

Among the implications resulting from the string of events Lebanon has witnessed during the past 18 months including the sovereign default, currency depreciation, the port explosion, and unofficial capital controls, there has been restricted access to the hard currency which has brought our economy to a near standstill. Prior to the crisis, Lebanon used to import nearly $3 billion worth of raw materials. 4,700 industrial firms in Lebanon generate approximately 10% of GDP employing 21% of Lebanon's total workforce. These firms account for 93% of Lebanese exports and generate around $3.7 billion in finished goods sales. The sector also purchases around $1.2 billion in raw materials and $2.3bn of intermediate goods imports into Lebanon. In order to stem the regression and support the industrial sector, Cedar Oxygen was launched as an economic recovery platform to extend financing to industrialists that are in most need of it with the aim of ensuring business continuity, employment sustainability/growth and enhancing the comparative advantage of a business. The impact of such an initiative creates opportunities for import substitution and export growth thereby directly contributing to a reduction in our trade deficit and making our industrialists more competitive on both a local and foreign scale.

Supporting Lebanon's economic recovery Initiated by entrepreneurs from the Lebanese diaspora and Lebanese nationals in late 2020, the Cedar Oxygen fund is supported by the Association of Lebanese Industrialists (ALI). Established under Luxembourg jurisdiction, Cedar Oxygen's team serves its clients through the front office in Beirut and Middle Office in Paris. It's basic lending criteria require that an industrialist be an ongoing business concern with a reputable track record. The offering includes trade facilities, Capex, and renewable energy financing. Off Takers can be domiciled in both the local market and internationally.

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The e-solution!

With the recent economic crisis, Lebanon’s industry has shown its weakness, it imports way more than it exports, making it very challenging more and more every day with the ongoing depreciation of the Lebanese pound. The only solution, raise the volume of exports. It’s with this idea in mind that the Lebanese Online Boutique in China was created. We learn more about this amazing project with an exclusive interview with Rayane Dandache, Economic Policy Coordinator at the Lebanese Ministry of Economy and Trade.

Lebanon’s Online Boutique in China

Tell us more about the Lebanese Online Boutique in China that you are currently setting up?

Who is your main target in the Lebanese market?

The Lebanese online boutique in China is a project in collaboration between the Ministry of Economy and Trade and the Lebanese embassy in China. When the embassy proposed this project, we found a huge potential in taking it further particularly due to the ample benefits it would bring to Lebanese producers and the economy. Given the surge in e-commerce and our efforts that have been focused lately on spurring Lebanese exports in light of the situation, we believed that setting up such a boutique would provide a great opportunity for Lebanese producers to enter a new, large and different market – in a different way! The Chinese Government, in its efforts to expand cross-border e-commerce trade (CBT), allows certain online platforms to sell foreign products directly from abroad to encourage its openingup policies. As such, setting up this boutique on one of the largest CBT platforms i.e. JD.com is able to address the several challenges hindering Lebanese exports to China, particularly by bringing on various advantages including lower tariffs and lower VAT, faster customs clearance, facilities in terms of distribution and labeling, etc. Moreover, the online platform can be used to promote Lebanese tourism, cuisine, and culture.

Every single Lebanese producer is interested in exporting to the Chinese market. We do not have a preference however we were able to get a few insights from JD.com on the products that do have potential in selling and we conveyed the message to all producers who showed interest.

Why is China an import-export destination for Lebanon? China is Lebanon’s number one trading partner with almost 10% of Lebanon’s total imports coming from China, for a value of around 2 billion USD. Exports on the other hand don’t exceed USD 37.5 million, fueling a deficit of almost USD 1.9 Billion. With that being said, this boutique provides a great opportunity to tap the potential that Lebanese products can offer given that most of the current exports are scrap with no value-added. The Chinese market is one of the largest in the world and Chinese cross-border e-commerce is growing at an estimated annual rate of 20%. Moreover, reports show that more than 610 million people shopped online in 2020, almost 1.5 trillion USD spent online in 2020 (a 14.8% rise from 2019) and imports of consumer goods witnessed a rise of 8.2% during the same period. The Ministry is exploring every opportunity to mitigate the spillovers of the various crises on the Lebanese economy, and we believe that this boutique represents a great one.

What are the milestones you’ve reached so far? What is the next objective? What do you aim at developing? Most importantly, we were able to raise awareness and introduce everyone to this boutique. We were also able to gather more than 40 producers who have shown interest in contributing to its set-up, both financially and technically. Our objective now is to secure the full funding given that the boutique would cost around USD 80,000 for the first year to be fully operational. We are in the process and we are hoping for great news very soon. Our aim is to finalize all processes before the end of the year to benefit from the two largest events that take place in February and June in China where online platforms’ sales exceeded $136.51 billion in a few days only during June event. If the Lebanese Online Boutique manages to tap into only 0.001% of those sales figures, it would be able to secure more than USD 130 million.

What is your message to clients and partners? Lebanon is in dire need of tapping every single opportunity to support producers and businesses. We urge every person who is also a firm believer in the potential that Lebanese products have, to extend his/her support in any way to ensure the success of this project.

CEDRO 5: BUILDING THE PATH FOR CLEAN AND SUSTAINABLE ENERGY IN LEBANON

The current crisis in Lebanon has come due to many reasons, yet the most important among them is Lebanon’s management of its energy sector. For decades now, Lebanon has relied on expensive and highly polluting sources of centralized energy, produced from large and inefficient power plants, and when traveling the distance from the power plants to the end-users, more than 35% of the power is lost due to a below-par network infrastructure in addition to the theft of electricity.

The CEDRO 5 project, with approximately 7.8 million Euros of grant and end-beneficiary funding, focuses on multiple activities simultaneously in order to assist the drive towards a more sustainable energy system.

Changing Lebanon’s behemoth centralized power paradigm is now an urgent need to reduce the dependence of Lebanon on fuel imports of fuel, which would dramatically assist in balancing our trade and safeguarding our hard currency. Moreover, shifting to a more distributed energy system offers benefits in terms of environmental performance, local economic activity and job creation, and social cohesion.

The first of these is an innovation and entrepreneurship challenge dubbed Energy Innovation Hub (http://eihublb.com/), where innovators have submitted their concepts and ideas that have the potential to transform the way we use and produce energy. Twenty-one ideas were submitted and will be mentored and filtered to eventually support the five most promising ones with considerable financing. Moreover, an online portal will be created to bring together innovators, stakeholders, and policymakers in the energy sector, to learn of opportunities and of the latest knowledge in sustainable energy through an online platform.

The European Union (EU) has long been a supporter of Lebanon in many aspects, foremost among them is the energy sector. One of these EU-supported initiatives is the UNDP implemented CEDRO 5 project.

Transforming our energy system requires multiple and far-reaching approaches and CEDRO takes on this challenge through four main activities.

The second activity is to continue demonstrating distributed renewable energy and energy efficiency. With the Association of Lebanese Industries (ALI), solar PV for electricity, biogas for electricity and heat, solar thermal for heat, and energy efficiency for the industry will be demonstrated across ten industrial and/or commercial facilities. Through these projects, new value chains will be set up and jobs created. An open application is found online for interested industrialists to apply to our program (http://www.cedro-undp.org). Moreover, community support will be not left behind. In coordination with the EU-funded Clima-MED program, CEDRO will be supporting many sustainable projects in Lebanese villages and towns that have completed their Sustainable Energy and Climate Action Plans. Finally, The Lebanese Green Building Council will be reinitiating the Lebanese building certification of ARZ and commercial buildings and units will be highly encouraged to apply for certification to enhance their corporate social responsibilities. The third activity is policy-related. Lebanon has committed itself under the Paris Climate Change Agreement to reach 20% renewable energy by 2030. Yet how do we measure this? How would we know we reached this target? With the International Renewable Energy Certification (I-REC) Foundation, CEDRO will be establishing a voluntary (at first) Energy Attribute Certificate market for Lebanon. Once established, renewable energy production and use will be known, certified, and even open for a market to create more value for the green attributes of this production. Last, CEDRO will be forging forward an integrated capacity building and awareness campaign that will involve face-to-face, online and hybrid courses and workshops to increase knowledge and capacity in the sustainable energy sector in Lebanon, assisting in readying the young generation to take a better approach towards securing our energy needs. Centralized power sources would only help in centralizing political and economic power and this would only support inequalities. The CEDRO 5 project is one of those initiatives that aim to show how power can be brought back to the people.

World leaders are moving rapidly today to face the consequences of climate change, which is an outcome of man’s interference in the nature of the Universe. One of the negative impacts globally and locally is consuming energy, in addition to other associated effects, and degradation of local environments in terms of poor air quality, degradation of soils, and industrial pollution. On the other side of the story, positive approaches are taking place to save the planet through essential elements. Renewable energy is one of them, in addition to energy efficiency. What do experts say about that? And how important is the implementation of industrial energy efficiency? In this matter, we conducted a conversation with Eng. Mazen Shbaro, Founder and General Manager of Memo Sarl, a company specialized in MEP contracting works and energy management services.

"ENERGY IS A MANAGEABLE EXPENSE - PERHAPS YOUR MOST MANAGEABLE EXPENSE!" What do we mean by energy efficiency? Energy efficiency has many meanings, depending on the user. The strict meaning, however, is being used by engineers, in the form of “energy output to energy input.” When we build energy-efficient systems, we use less energy, and we help the environment get rescued from the negative consequences, mainly mitigating future risks. That is, energy efficiency is parallel to the utilization of energy in the most cost-effective

manner while conducting dependent activity.

any

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Explain briefly the implementation of industrial energy efficiency. Energy efficiency leads to sustainability, through energy consumption. In fact, the implementation of industrial energy efficiency helps companies reduce emissions, and industries become less

energy-, resource-, and emissions-intensive and more competitive. It also improves the performance and cost-effectiveness of industry and increases the wider use of renewables and alternative energy sources. Hence, reducing the costs of fuel, production, and environmental damages.

How does industrial energy efficiency add to the profits of any company? When we ignore the importance of energy efficiency, we are adding extra operating costs to any operation that is energy-dependent. On the contrary, industrial energy efficiency reduces gas emissions and sets up the company to be profitable over the long term. To prove that, I will refer to a study published in the “Journal of Economics, Finance, And Administrative Science”, and conducted during the period (1990-2012) over 75 net energyimporting countries. The study revealed that there is a positive and statistically significant relationship between energy consumption and economic growth over the long term, where energy consumption contributes more to economic growth as the import dependence of the country decreases. Not to mention, all companies experience a lack of energy resources. Hence, they will either choose to accept low financial growth through production with the existing energy resources or attempt to increase growth by meeting the uncovered part of energy demand through imports. This somehow proves how important industrial energy efficiency is on the profits of any company or the economy of countries in general.

How is MEMO sustainability?

contributing

energy

MEMO is a highly equipped contracting company, founded in 2002. It provides multi-services such as designing and building residential, commercial, and heavy engineered industrial plants. Recently, Memo has expanded its services to fulfil the trending market demands in the field of energy management solutions, vocational training services, and electromechanical services. Nevertheless, Memo is an expert provider for comprehensive customerdriven energy management solutions. MEMO is a certified ESCO company too, hence our role combines both the consulting and contracting parts of energy solutions. In addition to that, we have experts who have a proven track record in energy efficiency, which enables them to manage, implement, and deal with the measurement and verification of saving for all energy efficiency and renewable energy projects. As to our services in that matter, we provide: Consultancy of energy efficiency audit for Industrial & Commercial environment. Implementation of Energy Efficiency Solutions. Cloud-based Energy and Resources Management Services. Renewable Energy Solutions. Assistance in project financing. We also provide photovoltaic systems, solar hot water systems, heat recovery systems, energy monitoring systems, and lighting retrofit. All the above is for the aim of saving money, saving energy, and saving the planet. That is, we save energy today, so as to survive tomorrow.

Emerging technologies continue to give industrial maintenance processes the potential to be more efficient from cost and productivity standpoints. As facilities face critical decisions in 2022 to maintain profitability, it’s imperative to remain aware of the maintenance trends that are expected to have an impact throughout the year and beyond. These leading-edge tactics can often provide unprecedented and unexpected process and margin improvements. Read on for our forecast of the maintenance industry trends that you should know about in 2022.

The Top 6 Trends in Maintenance for 2022 ADVANCED SENSOR IMPLEMENTATION AND USAGE. With the advent of smart machinery, many facilities are gradually becoming exposed to the benefits of equipment sensors. These track performance and provide insight into red flags such as abnormal vibration, heat or noise, all of which can foretell an eventual machine breakdown. This enables the issue to be addressed before it creates a service disruption. With sensors becoming more commonplace, 2022 signals the next phase of their implementation. Additional comprehensive and innovative sensor usage can provide even more detail about equipment issues. This enables more accurate root cause analysis as well as effective and proactive maintenance.

EVEN MORE DATA COLLECTION AND ANALYSIS Data is the backbone of today’s most effective and efficient manufacturing facilities, and this year promises even more uses for that data. Additional sensor implementation is only “Step One” of this trend. Facilities are also always building upon their data repository, enabling more accurate modeling, effective forecasting and innovative ways of using and analyzing data. It all adds to practices such as predictive maintenance, which stops problems before they start and provides heretofore unseen benefits for the facility.

DOWNTIME INCREASINGLY IN THE HOT SEAT Establishments understand that equipment downtime is one of the biggest resource wastes that can occur in manufacturing. That reality is starker than ever in the face of a pressing need to be as efficient, lean and agile as possible as the COVID-19 pandemic continues to disrupt supply chains around the world. This means that manufacturers are expected to focus heavily on reducing downtime — expected and unanticipated — as much as possible in 2022. Predictive maintenance, enabled by the factors described above, is one of the most effective ways to do so. This allows personnel to identify issues and schedule maintenance when it is most convenient and least disruptive.

RENEWED FOCUS ON UPTIME AND PROFIT MARGINS Hand in hand with a downtime reduction is the drive to improve uptime and thus profit margins for the facility, driving equipment ROI and resource value. In light of the difficulties of 2021, process profitability will be a key focus for manufacturers. The most effective way to drive margins is to keep equipment running as much — and as efficiently — as possible.

A CRITICAL EYE ON INVENTORY MANAGEMENT. With the benefits of technology such as sensors and data analysis, inventory management improvements go hand in hand with maintenance efficiencies. The increased use of sensors, and the ease with which facilities can track things such as MRO part needs and availability, means that more manufacturers will be aware of the inefficiency of their current inventory practices. They will also be mindful of the benefits that they can gain from implementing a technology- and data-driven inventory plan. Just a few of the benefits include accurate ordering and forecasting, easier location of spares, more control over storeroom management and faster, efficient maintenance.

INCREASED USE OF VIRTUAL TECHNOLOGY No 2022 forecast of maintenance trends would be complete without a direct response to the impact of COVID-19, and maintenance is no exception. The need for social distancing is expected to remain in place for some time along with an ongoing focus on worker health and safety. For this reason, virtual technology is poised to fast-track its way into a more commonplace method of carrying out maintenance diagnostics and troubleshooting. Sensors and other technology can provide a near “hands-on” experience for offsite personnel, enabling accurate, real-time maintenance processes from anywhere.

"FOSTERING INNOVATION MAKES ECONOMIC GROWTH POSSIBLE"

Digital transformation has never been more pressing. Technology is playing a major role in shaping the way businesses and governments all over the globe respond to challenges and potential opportunities. This developing landscape requires constant adaptation to predict trends and develop the right solutions that promise sustainable growth in the future. To find out more about this change, we talked with Hisham Itani, chairman, and CEO of Inkript, a subsidiary of Resource Group.

Tell us more about Inkript’s expertise and strengths.

s the world faces unsettling times due to the COVID-19 pandemic, technology adoption accelerated at a high speed. As a result, security issues have arisen. Businesses and governmentsare looking for ways to streamline their processes, digitize their operations, and strengthen their security. As a company specialized in digital technologies, Inkript is at the heart of global digitalization. Being part of a portfolio of businesses under Resource Group, the company benefited from a considerable investment in Research and Development (R&D) which helped it evolve to become one of the leading digital security solutions providers in the Middle East. Inkript understands the various challenges that Lebanon and the region are facing on social, economic, environmental, or health levels. We are constantly working towards innovating through digital solutions. Throughout the years, Inkript’s business evolved with the local and regional market needs for digital security solutions and contributed to the region’s digital landscape by developing technological solutions that benefit citizens and society as a whole. In fact, Inkript was founded in 1973 as a security printing family business. At the time, security printing was at its early stage in Lebanon. The business grew by producing stamps and printing secure documents for both the private and public sectors. Inkript introduced digital printing in 1993 and automated personalization with security printing in 1995. This innovation paved the way for a steady pipeline of products such as checkbooks, fiscal stamps, bonds, and others. In the early 2000s, Inkript was a pioneer in introducing secure card-based products and smart card manufacturing to the Middle East and Africa (MEA). In 2005, the company took yet another leap forward when it started investing in R&D. This allowed Inkript to develop new technologies and delve into digital security through secure software solutions. The R&D investments led to the creation of an in-house secure identification platform and automation software targeting public services. By 2010, Inkript became an accepted travel document provider by organizations such as Interpol and the International Civil Aviation Organization (ICAO).

Digital transformation has never been more pressing. Technology is playing a major role in shaping the way businesses n d The g o v eNilson r n m e nReport, t s a l ltheo vmost e r trusted the globe In a 2019, source r e s p o for n d the t o global c h a l l e ncard g e s and a n d mobile potential payment industry news and analysis, ranked opportunities. This developing landscape Inkript r e q u i r12th e s c oworldwide n s t a n t a d a(among p t a t i o n Chinese, to predict Indian and Western global players) in chip trends and develop the right solutions that cards shipments. promise sustainable growth in the future. Where is Inkript focusing its efforts today? With a strong and talented local team, Inkript is today one of the very few companies in the Middle East that develop proprietary solutions for digital identification. We have a significant number of talented people in Lebanon and the region, and it is important for us to invest in these local talents and create our own solutions. This is how our region can become an exporter of technology rather than an importer. In 2021, we are delving further into digital identity and more precisely biometric ID. Moving forward, the need to meet data security standards will increase especially with online identification requirements. Moreover, we are working on new concepts and solutions compatible with the continuous technological progress in Artificial Intelligence (AI), Big Data, Machine Learning, and Blockchain. Digitalization is going fast forward and there is a considerable potential to innovate in industries such as healthcare, retail, and education, along with governments. Inkript has positioned itself well for this transformation thanks to its constant technology research, skillful team, and forward-thinking mindset. Which Inkript products are driving current growth and what changes do you anticipate? Today, as security is the number one concern worldwide, the demand for secure digital identification solutions is on the rise. Although digitalization has been increasing for years in almost every industry, COVID-19 has accelerated the adoption of new solutions especially with remote work and lockdowns.

Verifying online identities is now crucial for our daily interactions. This includes biometric identification and authentication. This is where Inkript sees considerable demand, and this market will keep growing significantly. In addition, cybersecurity and data privacy remains a major concern worldwide for businesses, governments, and consumers alike. As technology evolves, cyberattacks progress as well. Therefore, companies and governmental authorities are requiring more secure platforms to ensure customers’ and citizens’ safety and reduce fraud. As we develop our own proprietary solutions, the software development process includes different layers of security that provide additional data security and ensure a stronger defense against possible cyberattacks. We are also focusing on contactless technologies and more precisely the contactless smart card technology. As a result of the surge in contactless payments, the demand for safer and more secure payment options is on the rise, especially since the spread of COVID-19. The pandemic changed people’s actions towards the nature of cash. For example, we have noticed the increasing demand by banks in the Middle East for new technologies that support consumers’ changing behaviors towards money, hygiene, comfort, and overall wellbeing. What lessons did challenges of 2020?

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What the world witnessed last year was undeniably difficult. Businesses struggled, and people are still suffering physically, mentally, economically, and socially. Yet it was fascinating to see how technology and innovation accelerated to help societies face this global crisis. As a technology company, we identify problems the public faces and create solutions through our core expertise, digital security. Above all, our investment in human capital kept us moving forward no matter the challenges. The nature of our industry is variable. Therefore, change is our driving force because it pushes our limits and develops our team’s creativity. We focus on innovation to create value towards a positive change.

At Inkript, we are using our expertise and technologies to find solutions that support governments in their fight against this pandemic and citizens in their recovery. Through our R&D center, we started early last year to develop ideas and undertake tests to help track the virus and keep citizens well informed and updated. Internally, our main objective was to keep our employees informed at all times and make sure they are adjusting smoothly to the new reality. We put their well-being first because our talents are the core of our business. Resilience and agility are key to moving forward. Our role today is crucial, whether to better safeguard citizens online or to assist organizations and governmental institutions manage their operations more efficiently and shift towards digitization. What are your expectations from the public sector, state projects to support the future business? The pandemic accelerated technology adoption in the public sector. Governments had to respond quickly and widely, at scale. This swift driving force also brings challenges. While digital transformation is accelerating, the public sector still needs to build stronger public health, deliver targeted services, install trust, and protect information privacy. Collaborations between the public and private sectors are now key in order to drive positive change among citizens, which in return will support businesses. With this two-way support, the public sector will deliver on its mission of regulating the market, further enforcing regulations and compliance, and

ultimately enhancing citizens’ protection. Inkript has always been supporting governments through its solutions, secure products, and services. For example, we introduced the first biometric passport in Central Africa ten years ago. Since then, we have implemented several biometric identification projects comprising e-work permits, e-residency permits, and biometric visa systems. We have also supported public authorities automating road traffic processes by developing e-vehicle solutions (including biometric driving licenses, e-vehicle registration cards, secure vehicle plates, and RFID stickers) in several countries in the MEA region. In addition, we have established secure border control systems, implemented fiber optic deployment projects, and provided fraud risk management solutions to fight the illegal import of mobile devices Overall, fostering innovation makes economic growth possible, so that the public sector can guarantee sustainable solutions for citizens and consequently build a sustainable society. What is your message to clients and partners? Over the years, we have built a solid network of clients and partners whom we are delighted to serve and support through our core business of digitally secure solutions and products. We will continue our endeavor in shaping the next frontier of innovation, especially in Lebanon and the region. We remain committed to supporting the public sector in automating its processes and providing citizens with enhanced services. We will also continue providing financial institutions, telecom operators, and corporations with the latest security technologies that support digital transformation. Through the work that we do alongside our technical international partners, we hope to further impact the economy and contribute to digitization in the region. Overall, collaboration is key, and our partners and clients are on this exciting journey with us to create a positive impact and a sustainable change towards a better future.

How would you define your company, the expertise, and the strengths of the team? Which are the milestones in your activity so far and the objectives for 2021? What do you aim at developing? How do you see the markets you are active in evolving in the next years, in Lebanon and in the region?

General Paint Co. is a Lebanese manufacturing company specialized in Automotive Refinish and has been operating for over 60 years. Our wide range of products paired with our versatile team who comes from various backgrounds with professional experience from all corners of the world will always be the cornerstone of our success. It has been our mission from the start to provide our clients, not only with premium products but also the continuous support of our team to guarantee they have all the tools needed to succeed on their journeys. Our products are available in over 75 countries. We take pride in our diverse clientele and the flexibility needed to meet the demands of the different markets all around the world, which in turn has pushed us to expand our factory once in 2013 and once again in 2020. Not only is our main objective for 2021(with the pandemic and all) to continue our expansion and make General Paint available to more countries but also to help our community by being a beacon of hope and resilience. COVID- 19 and the current situation has taken its toll on automotive sales which actually amplifies the need for a booming automotive refinish industry. People are most likely to repair their cars instead of purchasing new ones which is our silver lining. We expect our market to thrive during the upcoming years both in Lebanon and in the region.

Which of your products is now driving the demand/growth and what might change in the midterm? Given the current circumstances, all our products have remained in high demand but we have seen a spike in the request for environmentally friendly products, which has motivated us to introduce our Accelero Line to our already vast library of eco-friendly options including our Gen O waterborne line and or GenVerde VOC compliant line. As the world grows more “eco-conscious” we expect this demand to further escalate.

"we will thrive and we will always be determined to provide quality products"

What have you seen changing more recently, which are the main challenges that you faced in 2020, and what are the lessons that you learned? The world as we know it has changed this past year and it was a challenge to remain committed to our “all hands on deck” approach with our clients who were used to yearly trainings, travel visits, and seminars. Despite the lockdowns and travel restrictions, our team remained determined to overcome any obstacle and to prioritize the needs of our clients even when the distance was a challenge. What are your expectations from the public sector, state projects to support the future business? We have had great support from IDAL for our expansion project. We have received both an income tax waiver as well as a dividends tax waiver for a period of 10 years because we met all of their criteria. What is your message to clients and partners? Our message has and will always be that of hope and resilience. Despite all obstacles, we will thrive and we will always be determined to provide quality products and the best possible service to our clients who are part of our General Paint family.

Mr. Johnny Corm, CEO of General Paint Company

We aim at developing a range of skincare products following a pressing demand from our loyal customers. How would you define your company, the expertise, and the strengths of the team? Which are the milestones in your activity so far and the objectives for 2021? What do you aim at developing? How do you see the markets you are active in evolving in the next years, in Lebanon and in the region? Amatoury 114 is a well-established manufacturer of quality perfumes and cosmetics since 1928 with a mission to be a provider of wellness through the best quality personal care products. Besides our classic Eau de Cologne, our range of products includes bestsellers such as our shower gels, shampoo, and our innovative instant foam Hand wash as well as a full range of natural-based hair and body care products. In line with worldwide trends and in a continuous effort to safeguard and protect both the consumer and the environment, we only use pure and safe ingredients chosen carefully from natural and renewable resources, with no animal ingredients and no unnecessary harsh chemicals. We do not use parabens, formaldehyde, or any other questionable ingredient. We have been introducing new sulfate-free products and aim at developing a range of skincare products following a pressing demand from our loyal customers. Moreover, we are leveraging the long and strong expertise of our R&D department to develop a new range of economically priced personal care as well as household care products under the brand IBIZA to cater to the growing demand for low priced quality products which can support the dwindling purchasing power of the Lebanese consumers.

Which of your products are now driving the demand/growth and what might change in the mid-term? Before the crisis, our Amatoury 114 brand of shower gels had succeeded to be a leader in the market in front of multinational brands thanks to a wellrecognized superior quality and incredible fragrances. Due to the dire state of the economy in Lebanon, we managed to keep our “114” leadership but we are seeing an increasing demand for our lower-priced IBIZA range and we see this trend growing as long as there is no recovery in the short or medium term.

What have you seen changing more recently, which are the main challenges that you faced in the last two years, and what are the lessons that you learned? The Covid pandemic and the total cratering of the Lebanese economy dealt a severe blow to our business model and we had to overcome tremendous problems to keep functioning when all the state infrastructure, the banking sector, and all different inputs necessary to our operation were and are still collapsing around us. We are now working hard to adapt to the new reality and to the new business framework. We are diversifying our products portfolio to mitigate the risks due to the

rebuild our savings to be able to expand our production capacity or at least keep up our production engines in a ready and working state.

What are your expectations from the public sector, state projects to support the future business? We don’t expect anything from the public sector in its present decrepit and corrupt state. We can only hope that there will be one day a minimum of good governance and accountability that can restore faith in the country and can bring back the necessary financing to feed the Lebanese entrepreneurial spirit.

Export is now at the heart of our new strategy as it can bring us a much-needed supply of hard currencies to finance our short- and medium-term capital investments. purchasing power loss of our clientele. We now have a complete range of competitively priced products and we have the capability of customizing them to the liking of specific export markets. Export is now at the heart of our new strategy as it can bring us a much-needed supply of hard currencies to finance our short- and medium-term capital investments. Indeed, the banking sector bankruptcy has dried up all sources and types of financing and we need to

What is your message to clients and partners? We would like to thank our clients and business partners for their loyalty and solidarity in these tough times and we promise to keep providing our customers with the best quality products that can bring some sense of wellness and happiness into their daily struggle for a decent and peaceful life.

A new chance for your skin! www.yasmabeauty.com One of our best memories, that we keep from our childhood are the moments we were embraced by our grandmother while she spoiled us and narrate the same riddles and stories over and over. Yasma Beauty was created so that the love and laughter scenes won`t be deleted or forgotten. We do still remember putting our hands on her neck and face touching her old, yet soft skin. While nowadays artificial chemicals are all over the place, we feel like missing our granny’s beauty advices. If you think alike, Yasma Beauty will help you in this. As she will bring such memories back to you with natural remedies that actually work as skin rescuers. Yasma Beauty is a family-owned enterprise that was inspired by products made from nature. We come from the Pearl of the Middle East, Lebanon, and we feed our souls from nature`s bounties and grip its harvest for beauty causes. Simply our land was the key to our family-oriented production business, and we ought to make it a beauty routine lifestyle.

"Loved the olive oil soap. It left my skin more moisturized and healthy-looking. And my skin is softer with the salt scrub. It’s amazing!" – @yasmabeautyshop Yasma Beauty`s vision is to create handmade soaps along with bath and body products for people who desire a more natural approach to skin care. The soaps are completely from scratch using the cold process method, with raw ingredients and they come in two types: natural beauty and natural perfumed. The natural scrubs from the new collection of products that everyone is loving are sugary and salty, with a wide range of scents.

"Vegan, cruelty-free and handcrafted in Lebanon, our soaps are made using the finest natural ingredients, all ethically sourced." Yasma Beauty`s range of natural handmade soaps are made using the finest, pure ingredients, including only pure essential oils to create uplifting, nurturing scents. The natural soaps and all-natural skincare products gently work in harmony with your skin making them perfect for all skin types and age. "We are proud to produce beautiful soaps crafted with love and sustainability in mind." Myriam Saad, business development manager at Yasma Beauty

several factories, and incubating new ideas that may be turned into start-up businesses, through seeking industrial sponsorship and expertise for proposed university projects. Both academic and industrial sectors became more

motivated

the

following

years

collaborate and seek support from LIRA since this

Fund

turned

recurrent

and

was

addressing their financial needs on yearly basis. These encouraging results over the latest past years

increased

the

confidence

amongst

Lebanese industrialists in the potential of young graduates

the

fields

Engineering

and

Science. Indeed, this new paradigm has been the driving

force

behind

creating

general

atmosphere of synergy and cooperation between industry and academia. LIRA has been lately more recognized since it officially partnered to date with the top 13 universities in Lebanon by signing conventions to support the industry-oriented projects of Ph.D. and MS and FYP. For the latest 5 years, LIRA had supported the development of around 190 industrial applied research projects from these Higher Education Institutions (HEIs) in Lebanon. Projects

exhibited

annually

are

subject

rigorous scientific evaluation, where excellence in

applied

research

rewarded,

and

professional and qualified Judging panel team is assessing the projects according to every Jury specialization.

Considering the current pandemic and economic

crisis,

what

are

the

main

challenges for 2021? Although

online

opportunity

education

replace

provides

suspended

classroom

teaching, due to the coronavirus pandemic, the

"the new government should take decisive action structural reforms to change the Lebanese economy from a render economy to a production economy."

main challenge that online education faces are in developing applied research projects in response to the growing coronavirus outbreak, and how to work on practical prototypes. Since most of the projects should be applied and have to be implemented within the Industries which are

In your opinion, which milestones in the evolution of LIRA have determined the current status of the program and its success so far? In 2015, LIRA has initiated a Fund with the help of Banque du Liban for the aim of supporting the costs of industrially oriented projects, undertaken by academics and sponsored by Industrial partners. This encouraged a lot of academia and industries to collaborate on technological innovation, for the purpose of upgrading production processes, creating new production lines in

working at a lower attendance/performance rate due to the Government restrictions; Therefore, it wasn’t

easy

all

lately

develop

and

implement new common projects. Hence, online education might be improved by making it more interactive,

showing

procedures

real

situations, and providing 3D virtual tools to mimic the real situation in university Labs or industries.

With the collapse of the Lebanese economy and prevailing

financial

crisis,

many

industries

were

forced to cease operations, reduce their workforce, or suspend any growth investment. The widened gap between the Lebanese pound's value on the official and

black-market

exchange

rates,

worsened

with

banks tightened capital controls, are putting a lot of pressure on the industries operating at a minimum performance

with

the

Covid_19

containment

measures, and are hindering experts from developing industrial-academic cooperation and/or providing any industrial sponsorship to university projects. Indeed, the burden of the banking severe capital

The main Challenge for IRALEB now is to secure funds

fresh

money

finance

the

cost

industrially oriented projects that will be jointly implemented for the benefit of these flourishing industries,

aiming

upgrading

their

existing

production line or developing new products. With the current financial crisis, industrialists might turn to the fresh graduates introducing locally-made low cost high tech production equipment, since imported machines became really unaffordable due to the current inflation.

How are the new structure and functions of LIRA

control was highly aggressive on the industrial sector.

being transformed to better serve its mission? What

On the other side, prices inflation is hindering

type of changes is LIRA currently implementing for

universities, that are facing big shortening with fees

better impact on the sector?

(mostly still using the exchange rate of 1.500 LBP per $) and a high fiscal deficit, in further investing in

Institutionalizing

R&D projects.

Research Achievements) Program for gaining legal

The pandemic outbreak didn’t only trigger additional

status

pressure on an already collapsing economic system,

ministry of interior, to operate as a non profit

but it has also increased demands for some industrial

association has already been launched. The program

and manufacturing products locally produced (and

will operate now as an (NGO-IRALEB) with local

associated

and hopefully international dimensions.

sectors),

such

medical

supplies,

the

LIRA

obtainingofficial

IRALEB

approval

from

When

Association will seek new sponsorships and launch a

This increase accelerated a growth in production and sales in local

fundraising

and international markets, since industries are becoming more

international organizations, banking and industrial

competitive with the depreciation of LBP.

sectors to finance joint Academic industrial projects.

various

status,

the

where imported ones are too expensive locally.

near

legal

Industrial

cleaning detergents, and food and beverage products,

campaign

granted

(Lebanese

local

the and

What are your objectives for 2021, and how do you see the evolution of LIRA in Lebanon and the region? The

IRALEB

developing

association

new

dynamic,

the

process

manageable

of and

interactive website enclosing an automated online web

application.

interactive

Linking

University

this

and

website

Industry

Collaboration

Platform shall serve as an information gateway to IRALEB partners, and involve them in research potential

available

universities

and

applied

research needs proposed by industrialists. IRALEB will also work on activating university Clubs by

setting

activities,

their

and

internal

budget,

structure, addition

elections,

seeking

partnerships with similar leading international NGOs involved in R&D. New branding for IRALEB to expand the horizon of introducing the association together with a marketing campaign. Sustaining recurrent IRALEB Youth Research Funds for the year 2022, and most importantly increasing the allocated budget by seeking additional funds for Universities. Expanding partnerships with Industrial sponsors and incubators will also be on the schedule. Hold meetings at universities with students and professors, to motivate them to participate in the implementation of joint projects with industries or launching new start-ups. Coordinate

with

the

head

associations

and

Syndicates to find the appropriate mechanism for the industrialists to benefit from the industrial-academic research support project. Implement a database for Industrial R&D with the aim of supporting the development of a new production line or updating the existing one: Contract research and

long-term

partnership

between

academic

researchers and industrial expertise will be beneficial in

transforming

products.

project

results

into

innovative

Staying competitive in today’s global marketplace means that organizations need to be innovative, adaptive, and everchanging. Achieving this depends on the skill and knowledge of the workforce. But how do you get this kind of workforce to begin with? To innovate, to try a new process, or to do something new all requires learning. People need to learn new knowledge or skills in order to see things in a new light and take that next leap. When organizations do not support a continual process of learning, innovation does not happen, processes remain unchanged, and nothing new is ever accomplished. Employees need to be able to challenge themselves in order to obtain new knowledge, ideas, and skills. Learning needs to be on a flexible, on-demand and continual basis in order to contribute this kind of cutting-edge performance. Creating a learning culture within the organization is an effective way to improve performance and innovation, as mentioned earlier, but also employee satisfaction and retention. Here’s why: 1. Knowledge is power - The more employees know and the more they can do, the more they can contribute to the organization. 2. More cost effective - Investing in the development of employees is less expensive than rehiring and retraining new employees. 3. Show that employees are valued - Support of continuous learning indicates that employees are worth the investment and that the organization is genuine about employee career development.

GLOBAL TRENDS

New technology drives upgraded visibility and more efficient safety measures

Safety and Industry 4.0 As the principles of the Fourth Industrial Revolutions, or Industry 4.0, become widely prevalent, leading industrial organizations are adopting a new generation of Environmental, Health, and Safety (EHS) and plant safety solutions to drive employee health and safety initiatives and help ensure secure and sustainable operations. Digital transformation of the industrial workforce is also driving greater efficiencies and ultimately will lead to a more prescriptive approach to plant and worker safety. It involves enhancing safety from many different aspects, from improving processes and workflows to strengthening the safety culture.

Growth of digitalization

Support for Industry 4.0

In the current industrial operating environment, there is an increased focus on cutting-edge technologies such as connected devices, augmented and virtual reality tools, data analytics, machine learning, and mobile applications that are all part of a digital transformation toolkit. Numerous reasons exist for the acceleration of digitalization. Plant operators are dealing with a reduced workforce due to retiring employees, and today’s industry environment has created challenges around entry management and social distancing at almost all manufacturing facilities. As companies move from paper-based approaches to worker safety, which require time to complete, are less accurate, and complicate reporting procedures, there is a transition to online pre-entry registration. This approach allows for scheduled facility entry and integrates real-time location tracking to assist with social distancing and contact tracing when workers are on site. Digitalization is also helping the industrial workforce to stay compliant in terms of certifications, fatigue management, and the use of valid Personal Protective Equipment (PPE). These measures further enable worker competence through training that leverages virtual reality so console operators, technicians, and other personnel can experience a particular task prior to entering the site. In addition, there has been a significant increase in the implementation of enterprisewide EHS solutions. The objective is to protect the well-being of workers and the environment, ensure global compliance in the face of rapidlyevolving requirements, and advance sustainability and operational excellence.

Industry 4.0 is extremely relevant and increasingly important to modern industrial facilities. It represents the next wave of technology driving efficiency across the plant or factory floor. However, businesses looking to roll out Industry 4.0-ready workflows must upgrade their plant and workforce safety practices as well. In the age of the Industrial Internet of Things (IIoT), there is a close association between environmental, health, and safety and field devices, portable safety devices, and intelligent wearables —essentially the entire biometric feed into EHS software. But despite ongoing technology advancements, the underlying process behind reporting and documenting safety incidents and risks is still based on a top-down, historical approach in which manual spreadsheets and other paper forms remain prevalent. A new level of Industry 4.0-driven integration, scalability and collaboration will enable plant operators to automate a host of manual safety processes, removing human error and automatically supplying crucial data for workflows to generate appropriate response to events on an instantaneous basis.

Putting technology to work Leading technology providers have developed plant and workforce safety solutions designed to pair with Industry 4.0 initiatives, including intelligent wearables that allow industrial workers to safely, reliably, and efficiently accomplish their tasks. Likewise, automated incident workflow solutions enable plant operators to make safety decisions in a predictable and traceable way. For example, a portable gas device might detect a gas release early in a worker’s shift. If the release is small

enough, it’s likely the worker would continue with normal duties for the remainder of the day. Using a manual process, the worker would have to take time to write down notes and observations about the gas release at the end of the shift. This information might not be as complete and accurate as needed. With an integrated and automated safety solution, information about the gas release would go directly to control room operators for comparison with readings from fixed gas detectors. It would also be provided to EHS software to record the type of gas involved in the release, the level of exposure of the worker, and the time the event occurred. This process, in turn, automatically triggers an industrial hygiene workflow that reports the incident and provides recommendations on whether the worker should seek medical evaluation. In parallel, the procedures around EHS would require that the gas release be documented as part of regulatory reporting. This process involves a similar comparison of information from fixed and portable safety devices, including details about the origin of the incident, the volume of gas released, and the time of the event. With automated and collaborative safety tools, an environmental workflow is automatically triggered with all related information included in a report to EHS and plant and corporate management. By taking the various data sources into a data analytics engine, plant operators can identify trends from process IIoT assets in order to implement a more predictive approach that reduces the likelihood of the same event happening in the future. Similar advancements in automation and integration are taking place in the areas of compliance and competency management. Advanced technologies are helping industrial organizations ensure their workers have the right training and compliance to receive an electronic permit to work and perform their functions on the plant floor. For instance, employees with hot works permits might be in a particular unit when a gas leak occurs. Integrated safety technology would enable early detection of the leak while automatically initiating a public address general alarm (PAGA) and pushing a notification to the electronic permit to work system— ensuring the suspension of all hot works permits until the release is cleared. This capability helps plant management make an informed decision about a possible unit evacuation, and thus minimize the consequences of an explosion or other catastrophic event. In terms of workforce competency, new digitized tools support solutions such as worker assist or expert on call where remote guidance can be provided in real-time via headsets and video feed, by an experienced worker at an off-site location or isolated at home, to a less experienced on-task employee in the field. There is now clear evidence that integration of plant and environmental, health and safety solutions is a valuable aspect of Industry 4.0 and initiatives related to industrial hygiene. The goal is to drive workforce efficiencies as opposed to reductions. New technology developments are creating a labor force of smart, connected workers while driving productivity and increasing safety across the plant floor. Digitalization is also building greater levels of trust within industrial organizations and their processes, and among employees on site. This also encompasses meeting compliance and competency objectives across all levels of the plant workforce.

YOUR PLACE TO FIND BUSINESS OPPORTUNITIES AND SERVICE PROVIDERS Brief us about how you thought of this initiative and services provided by Outerpond. Following the Beirut port explosion, I was in the country and witnessed how the civil society, various NGOs, volunteers, the diaspora, and even foreigners banded together to help. While the politicians lamented, these various groups worked hard in alleviating the pain, clearing the rubble, and initiating the rebuilding process. As an entrepreneur living between Montreal and Beirut, I felt the urge to do something. I didn’t want to replicate successful efforts, and I started thinking about which sector was in dire need of help but was overlooked. It became evident that it was the private sector as it was most affected by the economic crisis, COVID, and the aftermath of the port explosion. Outerpond was created to partly answer the economic difficulties faced by the private sector. So instead of companies having to travel to different countries to get new business, they were now able to create a profile and look for business opportunities and projects featured by foreign firms on the platform.

Are there any beneficiaries from the platform? How many so far? We launched the platform on July 16, 2021, and have been able to feature projects and opportunities valued in excess of a million USD. More than 100 companies and startups have signed up both as Service Providers (based in Lebanon) and Service Seekers (based abroad). Some startups were created in 2021, other companies have been around since the 1900s, some have less than 4 employees and others are in excess of a hundred. We have different categories ranging from Accounting and Consulting to AI, Architecture, Engineering, and Pharma. The platform follows a Freemium model so all registrations are free.

Is the Lebanese media helping with the spreading of the Outerpond mission? We did get coverage in Canada on behalf of Lebanese outlets, as well as a 16-minute segment during an extremely popular economic show on Radio Canada. The feedback from that coverage was incredible, we had several Canadians reaching out to sign-up and help. In Lebanon, the process seems a bit more complex. It might be partly our fault since we have not tried too much. We nonetheless reached out to a leading newspaper by sending the 16-minute coverage we got on Radio Canada, hoping they too would want to talk about a positive initiative, and we are awaiting their feedback.

"Trust takes time to build."

Our primary objective is to become the primary catalyst of support to the Lebanese private sector."

Nagi Moubarak Initiator Outerpond www.outerpond.com Do you have any support from the Lebanese Government or any other public institution? As a private initiative, we’re not looking for governmental support. That said, we had been invited to an outsourcing event held by the Lebanese embassy in Washington DC a few days following our July launch. We have also been introduced to several economic attaches abroad, and they are aware of the platform. I am confident that they will spread the word about it, since it is the best way to start promoting Lebanon as an outsourcing option, by giving foreign companies the means to do business with Lebanese companies.

What reasons would Lebanese and foreign companies have to trust Outerpond? Trust takes time to build. We are however proud of the partnerships we were able to sign with business associations such as the RDCL and the FBN Levant network on the local level and with the Chambre de Commerce et d’Industrie Canada Liban (CCICL), and the

U.S. Global Chamber, on the international level. We also have partnerships with NGOs, such as ALAM, a Swiss-based entity doing a fantastic job alleviating the pain in Lebanon. We also have partnerships with Berytech locally and with Blue Tree Advisors in Geneva, to name a few. Does it mean that we are on the right track in building Outerpond’s credibility and trustworthiness? I hope we are, otherwise, none of these well-known entities would have agreed to partner with us.

What is the long-term vision of Outerpond? Our primary objective is to become the primary catalyst of support to the Lebanese private sector, by bringing an increasing number of business opportunities to MSMEs and helping them alleviate the impact of the economic crisis. It is certainly a tall order, and when successful, we will assess an expansion towards new markets.

Leading investors from across the globe have attended MIPIM in Cannes between 15-18 of March 2022

MAJOR INTERNATIONAL INVESTORS RETURNED TO MIPIM MIPIM, the world’s largest global real estate event, is looking forward to welcoming key international investors in Cannes in March 2022. In the fast-moving post-pandemic environment, where European real estate is hitting news record-levels of investment, MIPIM will provide investors with the opportunity to reconnect with the property industry, find assets and nurture strategic partnerships with the world’s growing cities and regions. The following companies, including those from top funds & real estate investors, have already confirmed their attendance: Abrdn, Abu Dhabi Investment Council, AEW, Alberta Investment Management Corp, APG Asset Management, ALECTA, Allianz Real Estate, Amundi, Angelo, ARA Asset Management, Ares Management, Aviva Investors, BMO Real Estate Partners, BNP Paribas, CapitaLand, CBRE Global Investors, Clarion Partners, Colony Capital, Credit Suisse, DTZ Investors, DWS, Fidelidade Property Europe, Generali Real Estate, GIC Private Limited, GLP, Gordon Group, Greystar, Heitman, Healthcare of Ontario

Pension Plan, Hermes Investment Management, Ilmarinen Mutual Pension Insurance Company, Invesco Real Estate, Ivanhoe Cambridge, J.P. Morgan, Jamestown, KB Securities, KGAL Investment Management, La Française REM, Landmark Partners, LaSalle Investment Management, M&G Real Estate, MEAG, MUFG Group, Northwood Investors, Nuveen, P+, PATRIZIA AG, PGGM, PGIM, Prologis, Qatar Investment Authority, QuadReal Property Group, Redevco, Savills, Schroder Real Estate Investment Management, Swiss Life Asset Managers, Temasek International, Tishman Speyer, State Oil Fund of the Republic of Azerbaijan, UBS, Union investment, and others. The news follows December’s announcement that MIPIM is on track to have the same number of exhibitors from Europe and the Middle East as the last event in 2019, with over 90% of Europe’s major cities also signed up for MIPIM 2022.

As a benchmark for the industry, the annual MIPIM welcomes the most influential real estate players to its annual meeting in Cannes. One of the highlights of the 2022 program was the Re-Invest Summit, a closed-door event that allows wealth, pension and insurance funds, and other capital owners to debate the latest investment strategies, trends, and challenges. A particular focus will be on the ways to integrate ESG into sustainable investment decisionmaking. During a series of roundtables, speakers will discuss the key topics such as the impact that carbon accounting could have on green and brown assets, the role of governments, the impact of Gen-Z on sustainable ESG adoption, and other concerns.

“With investment into European

MIPIM 2022 also welcomed tech investors thanks to the presence of Propel

real estate reaching an all-time

by MIPIM – the leading real estate technology conference, which will take

high, this year’s MIPIM arrives

place at MIPIM in Cannes this year for the first time. At Propel by MIPIM, VC

at a crucial moment for the

company Metaprop will present its 2022 Global Proptech Confidence Index to

sector as we continue to build

provide the audience with the most up-to-date insights regarding the

our

PropTech innovation ecosystem.

recovery

following

the

pandemic. At the same time, as

One of the most anticipated panel debates was “Prime Real Estate, Location or

we turbocharge our efforts to

Features?“, where experts discussed the characteristics of real estate which

reach a net zero carbon future,

make it appealing in terms of volatility, liquidity, and regulation, what value-

it’s

generating assets are thriving in a post-COVID world, and why does prime real

vital

makers

have

gathered

decision-

together

estate continue to stand out.

find the best solutions to embed ESG

criteria

strategies. really

into

looking

investment

are

therefore

forward

The panel welcomes the following speakers: – Courtney Fingar, Editor-in-chief, Investment Monitor – Neil Slater, Global Head of Real Assets, Abrdn

continuing this conversation in

– Laurent Lavergne, Global Head of Asset Management & Development, AXA

person as we welcomed back the

– Aleksandra Njagulj, Global Head of ESG for Real Estate, DWS

investor community to Cannes in

– Peter Plaut, Executive Director, Wimmer Family Office

March.”

Ronan Vaspart, director of MIPIM

Another important panel discussion in Cannes will be devoted to ESG principles driving real estate investment with Guy Grainger from JLL, Abigail Dean from Nuveen and Clare Thomas from CMS. MIPIM will also hold a number of sessions, focused on particular regions: UK, Germany, CEE, France, Italy and Nordic countries.

www.mipim.com

Interview with Mr. Karim Ghandour, Business Development Manager at METS Energy

How would you define your company? METS Energy is a diesel generator set assembler and power solution provider, specialized in manufacturing, sales, and rental of power generating sets. Since 1987, METS Energy has been delivering power solutions to 42 countries in the construction, industrial, residential, and telecom sectors. Generator sets range from 5 kVA - 4000 kVA, power plants up to 200 MW and are powered by Perkins, Cummins, Doosan, MWM, MTU, Volvo, Deutz, and others depending on customer requirements. METS Energy is also a provider of Sound Proof Canopies, Electrical Panels, Synchronizing Systems, Tower Lights, and Spare Parts.

Which of your products is now driving the demand/growth and what might change in the mid-term? Generators are required for all applications, whether construction, telecom, oil and gas, entertainment, and others. Power is a core requirement in our daily life. For that, we expect there will always be a demand for prime power generators to be used immediately, and remotely.

A key change that we have witnessed over the years and are still experiencing, is the growth in demand from smaller powered generators to larger power generators to cater for the size of megaprojects today. Besides standard power units, METS Energy emphasizes delivering unique products to its clients to allow more flexible use and applications. An example is the “Ranger.” The all-terrain “Ranger” is a unique power unit that enables clients to access power in the most demanding conditions. The product is equipped with support features for users to benefit from – the main features (but not limited to) of The Ranger are a 1000-hour operation extension kit, Sand Trap Filters to deal with the external environment, Special Mounting System enabling the generator to roam through any terrain, and 24 – 48 hour fuel tanks. The changing conditions of the market are pushing assemblers and power providers to deliver more efficient products, to mainly offer a more cost-efficient solution in both CAPEX and OPEX.

What have you seen changing more recently, what are the main challenges that you have faced in 2020, and what are the lessons that you have learned? With the change in demographics and the way people are living, there is a massive change from the demand for smaller generators, to large ones. As an example, single buildings are becoming compounds, and the power needed for the compound is a multiple of the single building/tower. Moreover, as a company based in Lebanon – we faced many obstacles in 2019 and 2020 due to the Lebanese revolution and after the COVID pandemic. However, these obstacles enabled us to know more about the gaps that are found in operation procedures. In doing so, the risk we learned from these factors adjusted our operating model to become more proactive instead of reactive. The obstacles faced were very beneficial for METS Energy. As a result, the risk assessment and risk control policies and procedures were updated ensuring a healthy operation.

What are your expectations from the public sector, state projects to support the future business?

"METS Energy strives to deliver a solution and not a product."

As what is known to all, the public sector is fueled by government vision and targets. In certain countries, the public sector is booming and excelling faster than the private sector. In order to meet the requirements of the projects, power is at the core. From this, we as power providers, play a vital role in securing prime and remote power to contractors and project owners to complete the infrastructure needs of the development projects. On the other hand, the public sector is switching to more sustainable power sources such as solar, wind, and hydro – of which, the demand for fuel-powered systems will eventually become obsolete. In the end, we believe there will be a wellbalanced market for prime and standby power.

What is your message to clients and partners?

We advise all consumers to source reliable equipment from companies that focus on quality and aftersales services. The support is as important as the machine itself. To ensure its right and proper operation, it must be supported by a well-established entity. The initial price will play its role, but the benefits of a properly built machine with the correct material and engineering is critical to ensure smooth and safe operation. A generator set is composed of many components and the slightest compromise on the quality of components will put the entire machine out of operation and will impact the client. At METS Energy, we focus on delivering quality-based generators and power solutions, with a large emphasis on the raw materials and components used in the assembly, as well as the engineering and design, to deliver a robust and reliable solution to our clients. METS Energy strives to deliver a solution and not a product.

Beirut | Wata El Mouseithbeh | Al-Safa Bldg

Block B | 1st Floor | P.O.Box 13-5769 T: +961 1 706 138 | F: +961 1 310 218

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