$11 billion to be invested in 2012

‘Moderate risk’ rating by three agencies

The total value of investments, local and foreign, amounted to around $12 billion during 2011, ranking the country in tenth place, out of 18 Arab countries, according to a report published by the Arab Investment and Export Credit Guarantee Corporation.

Total investments were $12.3 billion in 2010, as per the report, dubbed ‘Investment Climate in Arab Countries 2011’.

Total investment is forecasted to be at around $11 billion in 2012. This value is forecast to grow up to $17 billion by 2017.

The country has total foreign currency reserves worth 11.3 months of imports. For this indicator, Lebanon was preceded only by Algeria and Saudi Arabia which had ratios of 41 and 30 (months of imports) respectively.


The report said that three rating firms gave Lebanon a moderate risk grade during their latest rating updates in July. International Country Risk Guide, Dun & Bradstreet, and Euromoney rated Lebanon at "moderate risk" grade, along with Egypt, and Tunisia. French Coface gave the country a ‘High Risk’ grade, alongside Egypt, Djibouti, and Mauritania.

Since the beginning of 2011, four rating agencies kept a stable outlook on the sovereign rating. Moody’s was the only rating agency that revised down its outlook, from stable to negative, while keeping its rating at B1.

Lebanon had the highest number of ‘double taxation treaties’ (DTTs) signed with Arab countries, 13, followed by Syria and Morocco with treaties signed with 11 Arab countries. These treaties are supposed to encourage foreign investment as they protect the investor from being taxed two times, in the country of origin and the country of implementation.


Reported by Hanadi Chami