New factories double in the past five years. The number of factories opening is double the number of those closing - Lebanon
 
Lebanon Businessnews News
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New factories double
in the past five years
The number of factories opening is

double the number of those closing

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The Ministry of Industry (MoI) issued 652 industrial permits last year, two percent fewer than in 2016. These include new establishments, expansions, exploitation permits, and renewals.

The MoI issued 193 licenses for the establishment of new factories last year, a 22 percent drop from 2016, but double the number of licenses issued in 2012.

“These numbers indicate that investors’ appetite for putting money in the industrial sector is growing,” said Dany Gedeon, Director General at the Ministry.

MoI data shows that the number of factories opening annually is double the number of those closing, Gedeon said.

“A wide array of the factories shut down due to reasons not related to the economic situation, such as business partners falling out,” he said.

Mounir Bissat, Chairman of the Council for Industrial Exports Development at the Association of Lebanese Industrialists (ALI), said: “Most new investors are expatriates coming back with small capital from countries facing economic crises.”

The ministry issued 244 licenses for ‘light’ industrial factories, 214 licenses for ‘semi-light’ factories, 149 licenses for ‘semi-heavy’ industrial factories, and four licenses for ‘heavy’ industrial factories.

Food industries and chemical industries accounted for 41 percent of licenses for new factories. Food industries top the list because they do not require huge investments, Bissat said.

Ziad Bekdache, Vice Chairman of ALI, said: “These factories should be targeting regional and international markets to be able to sustain themselves.”

The Mount Lebanon governorate had the highest share of licenses (40 percent), most of which were distributed in Metn. This was followed by Bekaa (27 percent), and the North (14 percent).

Industrial zones in Metn had the lion’s share of approvals, with 95 licenses, followed by Zahle (81) and Aley (64).
Reported by Rania Ghanem
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Date Posted: Jun 05, 2018