The Investment Development Authority of Lebanon (IDAL) said that it has referred its recommended amendments to the Investment Development Law to the relevant committee.

The ministerial committee tasked with proposing amendments to the investment law (Law 360) said that it will submit its draft to the Cabinet before the end of December.

Investment Law 360 was put into effect in 2001. IDAL said that the proposed amendments aim at updating regulations in line with the current investment environment dominated by technology oriented industries.

“The new strategy aims to favor the productive sector through decreasing the required investment size,” an investment development official said. He said that the changes suggested by the authority involve reassessing the sectors currently promoted and focusing on new promising sectors, such as the ICT sector.

According to IDAL’s figures, a total of 35 projects, valued at around $1 billion, were implemented under IDAL’s mediation between 2003 and 2010. The tourism sector acquired a share of 13 projects, followed by the industrial sector with six projects, and the technology sector with four projects.

IDAL’s recommendations also called for activating its role as a One-Stop-Shop in issuing licenses and permits. This prerogative was granted to IDAL through Law 360, but has not been put into effect. Article 6 of the investment law stipulates that IDAL shall replace all public administrations in issuing permits and licenses required for projects under its authority, with the exception of those granted by the Cabinet.

According to the official, activating the IDAL’s role in issuing licenses and permits would reduce the time such procedures usually require (by public administrations). “This would enhance the business environment and facilitate doing business,” the official said.

IDAL also suggested amendments to the types of incentives granted to projects in line with the needs of the sectors, as well as with incentives provided by regional countries. The types of incentives are defined by the law itself (not the decrees) and thus any amendments in this area require parliament’s approval.