IDAL's Presentation on Integrating Migration into Development
1 like1,255 views
The document discusses the impact of transnational partnerships and diaspora investments in Lebanon, highlighting the significant role of the Lebanese diaspora in various economic sectors including technology and tourism. It details the contributions made by expatriates and outlines the Lebanese government's efforts to support these initiatives through financial, technical, and incubation programs. Furthermore, it provides examples of successful projects led by returning Lebanese entrepreneurs, emphasizing the potential of such partnerships to boost the national economy.
IDAL's Presentation on Integrating Migration into Development
- 1. “PRODUCTIVE INVESTMENTS THROUGH TRANSNATIONAL PARTNERSHIPS AND JOINT VENTURES” OCTOBER 2, 2014 ROME WWW.INVESTINLEBANON.GOV.LB
- 2. Snapshot on Transnational Partnerships
- 3. TRANSNATIONAL PARTNERSHIPS Some diaspora groups have been heavily involved in investing in their home countries. IDAL | 2014 Development Effort of the Diaspora • One of the most prominent examples is the overseas Chinese, who accounted for 70 per cent of China’s foreign direct investment between 1985 and 2000, helping to fuel the country’s rapid economic growth over this period. • Similarly, members of the Indian diaspora were key to the growth of the country’s information technology (IT) sector in the 1990s, as members of the Indian diaspora who held senior positions in US companies were instrumental in lobbying for the outsourcing of IT contracts to India. Source: Development Research Centre on Migration, Globalisation & Poverty 1
- 4. TRANSNATIONAL PARTNERSHIPS The economic mobility of the diaspora is dependent on its diversity and therefore its contributions are various IDAL | 2014 Forms of Transnational Partnerships • Diaspora Direct Investments (DDI) • Trade • Outsourcing • Start-up or business investments • Remittances • Savings • Purchase of real estate • Humanitarian support 2
- 5. IDAL | 2014 The Case of Lebanon
- 6. Mapping of Lebanese Diaspora Around the World Canada: 270,000 USA: 3,300,000 Mexico: 400,000 Venezuela, Colombia & Ecuador: 600,000 Brazil: 7,000,000 Argentina: 1,200,000 Europe: 250,000 Africa: 90,000 The Gulf: 250,000 Australia: 450,000 CASE OF LEBANON 3 Lebanon has a huge diaspora of 14 million people spread around the world Total Lebanese Immigrants: 14,000,000 Source: Maronite Foundation IDAL | 2014
- 7. While in the early years of migration migrants were mostly involved in craftsmanship and low skilled labor, expatriates have slowly moved to high value added jobs Sector of Economic Involvement of the Diaspora ICT Sector Tech Banking and Finance Engineers Businessmen Medical Specialists Bankers Qualied Manpower Technicians Teachers Craftsmen Building Contractors Habib Haddad Elie K houry Tony Fadel Carlos Slim Alberto Dahik Carlos Ghosn John Zoghbi Magid A braham Ray Irani 1800-1900: Early waves of Immigration Mid 90’s: Second wave of immigration Early 2000: New Wave of Immigrants in the Tech sector Source: Professor Guita Hourani from the Lebanese Research Center at NDU CASE OF LEBANON 4 IDAL | 2014
- 8. CASE OF LEBANON Lebanon is the 18th largest recipient of remittances globally and the 12th largest recipient among developing economies in 2013 Inward Remittance Flows into Lebanon 4.7 5.6 4.9 5.2 5.8 7.2 7.6 8.2 7.6 7.6 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 7.6 2013 (2003-2013) Lebanon: Remittances Inflows by Region of Origin (2013) Source: World Bank Source: Central Bank, data shared during MTM i-Map mission to Lebanon (2013) Northen america Australia Africa EU GCC Countries 5 IDAL | 2014
- 9. CASE OF LEBANON Lebanon is actually the country with one of the highest ratio of remittances to GDP in the world and the highest in the region Our banks hold deposits amounting to 167 Billion USD, which is 4x our GDP. Most of the deposits are from the diaspora. HOW CAN THESE BE CHANNELED INTO DDI? IDAL | 2014 Remittances as % GDP (2012) 16% 10.80 % 7.30 % 6.80 % 5.00 % Lebanon Jordan Egypt Morocco Tunisia Source: World Bank, Migration and Remittances Factbook 2012 6
- 10. CASE OF LEBANON Many initiatives have been undertaken by private and public entities to support expatriates in establishing transnational partnerships IDAL | 2014 Mapping of Entities Linking Expatriates to Lebanon Associations Representing Expatriates * NON EXHAUSTIVE Public / Semi-Public Organizations • General Directorate of Emigrants at the Ministry of Foreign Affairs • Investment Develop-ment Authority of Lebanon • Lebanese Internation- al Business Council • Lebanese Immigrants Association • Chamber of Com-merce • World Lebanese Cultural Union Initiatives NGOs • LIFE - Lebanese Emigration Research Center (Private) • Lebnet • Joint Chambers • Clubs • Lebanese consulates • The Lebanese Emi-gration Research Center • Live Lebanon • Tokten - UNDP Political Foundations • Hariri Foundation • United Australian Lebanese Movement Religious Foundations • Maronite Foundation • Maronite League Commercial Banks • Number of branches pertaining to subsidiar-ies and sister Lebanese banks abroad amounts to more than 200 units. • Banque Libano Francaise launched a new program for Lebanese living abroad called the Expat Package from which they can benet from a special range of products and services to simplify their daily banking transactions 7
- 11. CASE OF LEBANON The Lebanese government more specifically has been working actively to support the Transnational Partnerships through various financial and technical schemes IDAL | 2014 Lebanese Government Support to Expatriates 1- Financial Support • IDAL through incentives • Central Bank through Circular 331 • Ministry of Economy Trade support for SMEs 2- Incubation Assistance • Incubator in each region • Through Angel Investors from diaspora • Through Venture Capitalists from diaspora 3- Information Provision • IDAL • Lebanon Connect by the Ministry of • New website Foreign Affairs • Economic Diplomacy and Emigrants 4- Technical Assistance • Business matchmaking program of IDAL • Trade Missions • One-Stop-shop 8
- 12. CASE OF LEBANON IDAL | 2014 IDAL’s mandates relevant to the diaspora INVESTMENT PROMOTION • Provide economic, commercial and legal information of relevance to investors • Identifies business opportunities across various economic sectors • Provide in depth analysis of sectors • Grant fiscal exemptions and fees reduc-tion to investment projects • Facilitate issuance of permits and licenses • Provide on-going support for investment projects (after care service) • Actively promotes Lebanon as key invest-ment destination EXPORT PROMOTION • Provide data on external markets • Support companies in selected sectors in accessing external markets • Provide promotional materials • Subsidize participation in foreign fairs • IDAL currently has in place 2 export promotion programs: 1 Agri Plus (2012): Which provides subsidies and support to exporters of agricultural products 2 AGRO MAP (2004): Which subsidizes the participation of agro food companies in foreign fairs licenses 9
- 13. CASE OF LEBANON Other financial support available to entrepreneurs and migrants provided by the government include the equity funds supported by the Central Bank Government Offerings The Central Bank of Lebanon has guaranteed $400 million for Lebanese banks equity invest-ment in startups, incubators, accelerators and funds All banks can benet from credits equivilant to 1.3 billion USD granted against the loans these banks grant on productive sectors pursuant to the following limits: 15% of the value of loans granted to productive sectors and 60% of the value of loans granted in Lebanese pound to productive sectors with a guarantee from Kaf-alat S.A.L. and beneting from an interest rate subsidy. Kafalat targets SMEs and innovative start- ups that belong to one of the following productive economic sectors Industry, Agriculture, Tour-ism, Traditional Crafts, and High Technology. Loans guaranteed by Kafalat benet from inter-est rate subsidy. These subsidies were set up to mitigate the crowding out effect of the high interest rates in Lebanon induced by public sector borrowing. Interest rate subsidies are nanced by the Lebanese treasury and admin-istered by the Central Bank of Lebanon. 10 IDAL | 2014
- 14. CASE OF LEBANON IDAL | 2014 Other initiatives out there to support and encourage transnational partnerships Incubators Supported by the Government Type Description • Berytech has launched a new program aimed at incubating startups by Lebanese expatriates in their relocation to Lebanon. • €35,000 will be awarded as grant for each start-ups. • Private initiative which however received government support under a decree signed by the Ministry of Telecommunication. • Incubator at its embryonic stage funded by an EU grant. • Initiative by the MoET and the EU since 2006. First innovation center of its kind in South Lebanon. It offers incubation and counseling services to manufacturing service enterprises. • Initiative by the MoET and the EU. • Incubator aimed at assisting and promote growth potential sector in Tripoli, North Lebanon. • To accelerate the development of the Lebanese IT start-up ecosystem through the active involvement of diaspora organizations. Berytech Incubator Beirut Digital District CFE SOUTH BIC BIAT LEBANESE INTERNATIONAL FINANCE EXECUTIVES Zone Center Incubator Incubator Association LEBANESE EMIGRATION • To encourage contrubition to homeland and host country. RESEARCH CENTER Center Entity 11
- 15. Some Success Stories of Transnational Migrants in Productive Sectors
- 16. IDAL has identified the following sectors for investment: SUCCESS STORIES IDAL | 2014 TECHNOLOGY TELECOM TOURISM FOOD AND BEVERAGES INFORMATION TECHNOLOGY INDUSTRY AGRICULTURE MEDIA 12
- 17. SUCCESS STORIES Lebanon has recently seen a surge of young entrepreneurs who have decided to relocate to Lebanon IDAL | 2014 Case Study of Young Entrepreneurs - Fadi Daou : High Tech Sector Company Overview Fadi Daou young entrepreneur, founded several companies in the US and decided to come back to Lebanon. Multiilane develops technology and proucts for the optical communication market. It enables leading semiconductor companies to offer communication equipment for the next generation network. MultiLane’s cus-tomers include Cisco Systems, Broadcom, Intel Corporation, Gennum, Google, Teledyne Scientic, Cortina, Adtran, IPG Photonics, and TE connectivity. The market for MultiLane’s product is global, with customers in the US, Europe, Taiwan, China, and Japan. Government Offering Investment Development Authority of Leba-non provides through its incentive schemes, companies involved in the semi-conductor or manufacturing of ICT related equipment’s, with a set of scal exemptions on prots generated. How did the government help? Support was provided to reduce customs procedures on tech products 13
- 18. SUCCESS STORIES IDAL | 2014 Another case is a touristic resort developed on the Lebanese coast and that was developed by a transnational migrant Jiyeh Resort - Mohammad Saleh: Tourism Sector Project Overview This resort, located in the coastal town of Jiyeh, 35km south of Beirut, will be built in two phases. The rst phase will include the construction of 196 chalets and 92 cabins, 3 swimming pools, 2 restaurants and a 17,577m2 yacht berths. The second phase will see the rise of an eight-story hotel with 138 rooms and 10 suites, as well as a restaurant, terrace, ballroom and health club. Mohammad Saleh a Lebanese expat has returned to Lebanon to give back to his country. His project will employ 210 people. 14
- 19. SUCCESS STORIES Another case is that of a business hotel in the heart of Beirut developed by a transnational migrant IDAL | 2014 Le Gray Hotel - Sarkis Abshi: Tourism Sector / Other Project Overview Ven-invest is an investment company specialized in ventures, acquisitions and real estate developments and investments in Lebanon. Founded and established by a group of Lebanese transnational migrants with a common heritage. The company has established a lot of businesses in Lebanon, the most prominent being Le Gray Hotel in Beirut. 15
- 20. The Way Forward
- 21. THE WAY FORWARD Going forward, we are working on promoting programs to expatriates and increase linkages with the entrepreneurial ecosystems. A major milestone has been the electoral law and the ability of expats to vote Way Forward Increase Government Support • Increase networking and missions to countries with highest concentration of immigrants • Increase campaigns and specially social media campaign targeting the expatriates • Increase awareness on IDALs incentives • Formulate a special incentives package for diaspora • Support the Ministry of Foreign Affairs in its initiative pertaining to economic diplomacy Foster Linkages with Private NGOs • Establish linkages with universities and foster programs to increase involvement of expatriates in technical training • Increase collaboration with UNDP programs on expatriates • Collaborate with commercial banks to create special incentive packages for young entrepreneurs • Increase collaboration with local incubators / accelerators who are providing links with the diaspora and provide them with nancial incentives • Increase collaboration with the private sector 16 IDAL | 2014