Industrial city coming to Zahle

Project promises lower production costs

Preparations were recently initiated for the establishment of an industrial city in Terbol, Zahle. The Association of Lebanese Industrialists (ALI) is working with the General Directorate of Urban Planning to classify part of Terbol as the first industrial zone in Zahle. The municipality agreed to lease a plot of land stretching over one million square meters for the zone.

“A land owned by the municipality should be available in order to establish an ‘industrial city’, because the city cannot be owned by the private sector,” said Michel Daher, director of the industrial cities commission at the ALI, and well-established industrialist in the Bekaa. He said once the land is classified as an ‘industrial city’, it can be leased to industrialists for a long term at a low price: “For instance, 5,000 square meters could be leased for $5,000 per year. This way, industrialists can save on rent and use their capital to buy equipment and increase production capacity.”

The ALI called on the Investment Development Authority of Lebanon (IDAL) to grant tax exemptions to industrialists who will build factories in Terbol’s industrial city. Daher said: “These incentives will encourage industrialists who own factories in Beirut to relocate to rural areas, so they can benefit from the low cost of leasing and low cost of wages.”

Industrial cities typically include residential apartments, schools, and retail outlets for their personnel. “Having industrial cities in rural areas could create balanced development, through offering job opportunities for residents,” said Daher. Factories operating within the industrial city will be committed to international environmental and health standards.