An Impossible Balance

March 2019 No 233 12 | Dipping into digital waters Convergences of awareness on several of Lebanon’s overdue cyber priorities

16 | Long overdue reforms What can the Lebanese government achieve in less than two years?

42 | Toward a cashless society Lebanon’s alternative payment solutions www.executive-magazine.com

AN IMPOSSIBLE BALANCE Women who do it all Lebanon: LL 10,000 - Bahrain: BD2 - Egypt: EP20 - Jordan: JD5 - Iraq: ID6000 - Kuwait: KD2 - Oman: OR2 - Qatar: QR20 - Saudi Arabia: SR20 - Syria: SP200 - UAE: Drhm20 - Morocco: Drhm30 - Tunisia: TD5.5 - Tunisia: Drhm30 - Morocco: Drhm20 - UAE: SP200 - Syria: SR20 Arabia: - Saudi - Qatar: QR20 OR2 KD2 - Oman: ID6000 - Kuwait: JD5 - Iraq: LL 10,000 - Bahrain: - Egypt: BD2 EP20 - Jordan: Lebanon: 12 executive-magazine.com March 2019 EDITORIAL #233

Dismantling privilege

A friend of mine, an ex-minister, once told me, “The Lebanese system works perfectly, like clockwork—but in all the wrong ways.” The money pledged by the international community at CEDRE requires long overdue structural reforms on our part. Take the deficit caused through subsidizing the failing public utility Electricité du Liban (EDL). To actually fix EDL would require our politicians to dismantle a parallel industry of which they are the benefactors. The corruption that keeps sectors like telecommunications and electricity profitable for our elite is entirely of their own making; and only through self-inflicted wounds would they be able to reform these sectors for the benefit of all Lebanese. The frequent foreign delegations who come to Lebanon surely laugh as they come out of another pointless high-level meeting, knowing that the problems they have raised were caused by these politicians, and the reforms that are so desperately needed have been blocked by these same men—and it has been men—for decades. Meanwhile, the distance between our government and the private sector and citizens continues to grow. Our government is still trying to figure out problems that should have been solved in the past, while our citizens and the private sector are looking toward our future in the digital age. The worry is that the more they move into the digital world, the more their reality will be on screens rather than on the streets—leaving our politicians free to manipulate those who are left behind. Our survival depends on our ability to stay connected to the realities on the ground. And one reality that we cannot ignore, as we celebrate another women’s month, is that when it comes to gender roles, Lebanese culture has to change. And it is not our women who have to change, it is our men. Women are doing their best in a system designed against them. Men are doing their worst in a system geared to their every whim. Leba- nese men have to cast aside their entitlement and make the necessary changes to push Lebanon into the 21st century. They must tear down the current system—one made by men for the benefit of men—so that all Lebanese, regardless of gender, are treated equal.

Yasser Akkaoui Editor-in-chief

1 March 2019 CONTENTS #233

LAST MONTH BANKING & FINANCE

6 February’s essential 38 The inexorable march of headlines digitization Investing in cybersecurity companies LEADER 42 Toward a cashless society Lebanon’s alternative 10 Time for a change payment solutions Women cannot be expected 46 Banking agility in the era of to do it all without proper millenials support Interview with Credit Libanais Deputy General Manager Randa Bdeir ECONOMICS & POLICY 48 Digitizing gold Creating a price-stable 12 Dipping into digital waters cryptocurrency Convergences of awareness on several of Lebanon’s overdue cyber priorities BUSINESS ESSENTIALS 16 Long overdue reforms What can the Lebanese WOMEN’S 72 Company bulletin government achieve in less EMPOWERMENT 76 Conferences & exhibitions than two years? 20 An urgent need for reform Lebanese fiscal outcomes in 50 | Caught between LAST WORD 2018 22 It’s all Lubnani to me home and the office 80 Bridging the gap Bel Lebnééné calls for Leba- 54 | All in a day’s work Factors keeping Lebanese nese Arabic to be standardized youth unemployed 26 Destination Lebanon 62 | Redefining roles Building Lebanon’s destina- 68 | The greatest adventure tion marketing to fuel growth 70 | Childcare is not 28 An administrative startup venture just a practical problem Interview with Adel Afiouni 32 A new legal class on digital Interview with MP Nadim Gemayel on digital development and Law 81

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5 March 2019 LAST MONTH

ZOOM IN

Lebanese President plice Elie Ghabash for conspiring to frame ac- Michel Aoun (C) chairs the new government’s Lebanese man self-immolates tor Ziad Itani as an Israeli spy, appeared before first cabinet meeting, over child’s school fees the military tribunal on February 7 where she accompanied by Prime denied the charges against her. Also testifying Minister Saad Hariri (C-L), at the presidential Georges Zreik, a taxi driver from north Lebanon, that day, Ghabash admitted to creating the fake palace in Baabda, east self-immolated outside his daughter’s school on page to turn security services onto Itani and of the capital Beirut on February 7 in protest over the school’s refusal to that Hobeiche had directed him to investigate February 2. release his daughter’s transcript. Zreik was rushed Itani, but contradicted earlier testimony where to hospital in Tripoli where he later succumbed he had alleged that Hobeiche asked him to fab- to his injuries. Local media reports indicated that ricate evidence. Itani was arrested and detained the dispute between Zreik and Bkeftin Orthodox for over 100 days as an Israeli collaborator. Sub- College, a private elementary school, was over the sequent investigations unraveled the evidence late payment of school fees. There were disagree- against him leading authorities to Hobeiche ments between the school and Zreik’s family as to and Ghabash, and Itani was released in March what was owed and how much Zreik had paid. 2018. The trial is ongoing. The education ministry ordered an investigation into the incident, telling the press that Zreik had Cabinet gains the not approached them over the issue. Zreik’s death confidence of Parliament sparked sympathy and outrage across the country. A sit-in, organized by the Sabaa Party and the Parliament voted to give confidence to the new League of Parents’ Committees at Private Schools cabinet on February 15, with 111 in favor, six in Lebanon, was held outside the education min- against, and 11 absent. The cabinet’s ministe- istry on February 11. rial statement largely focused on economic issues (see story page 16). Over the course of the Hajj Hobeiche testifies three-day session, however, there were several before military tribunal verbal spats in the chamber, most notably between Hezbollah MP Nawwaf Moussawi and Former head of the ISF Cyber Crimes Bureau Kataeb MP Nadim Gemayel, which led the Suzanne Hajj Hobeiche, who is currently un- Hezbollah MP to be reprimanded by his party. der investigation alongside her alleged accom- Cabinet, meanwhile, also got off to a rocky start 6 executive-magazine.com 7 March 2019 LAST MONTH

QUOTE OF THE MONTH “My decision and the government’s decision is to work, work, work.”

Prime Minister Saad Hariri, speaking to Parliament ahead of a vote of confidence in the government on Friday, February 15.

when the new minister for the displaced, Saleh and sports ministries will no longer be able to Gharib, visited Damascus on February 20 to as these are controlled by Hezbollah or Hezbol- discuss the refugee file. The visit marked a ma- lah linked-individuals. jor shift from the previous cabinet, in which the refugee portfolio was with the Future Move- State hiring scandal ment, and caused disagreement within the new continues to unfold cabinet that forced the early breakup of its first session on February 21. On February 26, MP Ibrahim Kanaan ad- journed a hearing of the Parliament’s finance Constitutional Council revokes and budget committee as the education minis- Dima Jamali’s election win ter, Akram Chehayeb failed to attend to answer questions over illegal hiring at the ministry— On February 21, Lebanon’s Constitutional carried out under his predecessor. Two reports, Council announced that of the 17 appeals from one from the Central Inspection Bureau, and May 2018’s parliamentary elections all had been the other from the Civil Service board are cur- rejected bar one. The court removed MP Dima rently under review by the committee, as are al- Jamali from office and ordered a by-election for legations that some 5000 people were illegally the Tripoli seat. The Constitutional Council can hired in the run-up to the 2018 elections. The either reject an appeal, call a special election, or following day MPs announced that approxi- replace the MP with the correct winner when mately 15,000 state employees may have been hearing election appeals. The court reversed a hired illegally. vote count by the interior ministry that had put Jamali in office by just 25 votes, finding instead Court rules in LBCI dispute that there was only one vote between the two. Jamali announced the same day that she will On February 28, Judge Fatima Jouni ruled that run in the by-election to regain her seat; at the the Lebanese Forces (LF) would not regain time of writing none of her potential opponents ownership of LBCI, dropping charges against had declared their intention to run. current chair Pierre Daher. LF leader Geagea filed a lawsuit in 2007, where he sought to UK to label Hezbollah’s “political restore ownership of the channel and denied wing” as a terrorist organization having sold it to Daher. The LF owned the station under the name LBC until the party The UK Home Secretary, Sajid Javid, an- transferred ownership of the station in 1992 nounced on February 25 that the UK would be when it became apparent Geagea would face designating the entirety of Hezbollah as a ter- jail-time. The judge ruled that LBC was estab- rorist organization, meaning that being a mem- lished by funds raised by the LF’s then-mili- ber of or offering support to Hezbollah would tia and so—based on the premise that funds now be a criminal offense in the UK. The UK raised during the civil war are the property Home Office and its Lebanon ambassador -re of the Lebanese state and people—had Daher leased statements reaffirming the UK’s support not established LBCI with funds he secured in for Lebanon despite the ban. However, the real- bank loans then the channel would have been ity is that any UK group currently funding or state property. Geagea announced he would supporting projects from the health or youth appeal that day. 8 executive-magazine.com

9 March 2019 LEADERS

WOMEN’S EMPOWERMENT workforce—many women drop out SUPPORT NEEDED Time for a change of the labor market during the years In the meantime, it should be ac- of having and raising children (see knowledged that mothers who also Women cannot be expected to do it overview page 50). work are carrying a heavy load, and all without proper support If we want women to excel in so measures should be put in place their roles as mothers, as well as in to lighten it thereby allowing women In most Arab countries, Mother’s their roles as economic contributors, to excel in their careers and in raising Day is celebrated on March 21. On then things have to change. To be- their children. this day, a woman’s role as a mother, gin with, raising children and taking As a start, civil society should sup- the giver of life and the nurturer, care of the household can no longer port working mothers in demanding is suitably enough recognized on be perceived as the woman’s domain that the maternity leave law, which the first day of spring, the season alone. It takes two people to bring a currently gives mother 70 days paid which marks nature’s rebirth. This is child into the world, and it should leave with no risk to her job, be amend- a widely celebrated day in Lebanon, take two people to raise it—parenting ed and extended. All of the heads of with queues forming outside of flow- must become a shared responsibility human resource departments Execu- er shops, and people rushing to show between the mother and the father. tive spoke to (see overview page 50), their mothers love and gratitude for While most of the women Exec- and the working mothers (see page 54) their many sacrifices in raising them. utive profiled said their husbands said seven weeks was simply too short March 8 is also International are supportive of their career and a leave. Many countries allow for up Women’s Day, the day where all play an active role in parenting, the to a year of parental leave recogniz- women are celebrated for their responsibility of childcare still laid ing the importance of mothers—and achievements. It is interesting that heavily on their shoulders—this is fathers—bonding with their child at both these days fall in the same a symptom of the pressure society the early stages. While giving a year month, reminding us that women puts on women to place their moth- off for maternity leave may not work have other roles in society, besides ering role above all else (see profiles within the Lebanese context, a six- the role of a mother. These days, page 54). Lebanon has taken a very month leave—during which the child more women are active partici- small step in the right direction by would develop enough to be left at the pants in the labor force, thriving in instituting a three-day paternity daycare or with family, and the mother their chosen careers. But these same leave, which has at least kick-start- would be physically and emotionally women are also expected to prior- ed the conversation regarding the ready to go back to work—should be itize raising their children to the role of the father within his family. implemented. point of neglecting their career when But there is still a long way to go, The private sector should also they become mothers. Domestic re- and more awareness needs to be recognize its role in giving support sponsibilities (namely childcare) are raised before childcare can be shared to working mothers. Corporations the main reasons women leave the equally by both parents. should revise their internal policies in favor of their female employees who are mothers. As such, and in today’s digital world, flexible working measures, such as working from home, or a condensed work week should be discussed by these corporations and implemented where it makes sense to do so. As we celebrate Lebanese mothers and all women this month, we should offer them more than lip service by having fathers step up and assume responsibility in the household, and by realizing that in order for women to continue to do it all, they should be given the right support. 10 executive-magazine.com BBA

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stacked logo (for sharing only) stacked logo (for sharing only) March 2019 ECONOMICS & POLICY Overview

By Thomas Schellen

Dipping into digital waters Convergences of awareness on several of Lebanon’s overdue cyber priorities

When four officers of two highly versally beefed to their maximum set- a group of ISPs. When the hacker respected Lebanese military institu- tings when Major Marc Sawan, head found governmental sites that were tions—the Lebanese Army and the of the ISF’s Digital Forensics and hosted on the infected ISPs, he man- Internal Security Forces—in mid- Cybercrime Unit, started telling his aged to hack into these sites. The January took their chairs on a panel cautionary tale of two information attacks peaked in hacking assaults at the American University of Beirut technology (IT) experts, one of them being launched between govern- (AUB) to participate in what the uni- an aggressive hacker and the other an mental sites in Lebanon—the hacker versity advertised as its first Cyber IT administrator with a habit of post- causing them to attack one another Security Day, the assembled stu- ing personal information. just for fun—and even usage of these dents, professors from various aca- According to the officer’s revela- governmental sites for orchestration demic institutions, and guests, did tions of a chain of incidents unfolding of an attack on a site outside of Leba- not exude any boredom or exaspera- over 2017 and 2018, the hacker suc- non that led the foreign site to file tion with the “dry” topic of which ceeded to outsmart his insufficiently a complaint against a governmental the moderator of this third panel had wary victim in a classical phishing site in Lebanon. warned. To the contrary, during the attack on the basis of well-informed panel’s progression, ears opened ever social engineering. By doing so, the HIGH VULNERABILITY wider, and attention spans were uni- hacker infiltrated an ISP and then Sawan’s cautionary tale concludes with “small statistics,” namely that at least six ISPs, 80 governmental sites, and over 700 sites in total were com- promised in a single attack. “This is how bad the situation is in Lebanon,” he said, exasperated, before answer- ing the moderator’s question over the immunity of Lebanese governmental sites today by adding, “I think that for the moment we do not have any immunity, because there is no cyber culture, no forensic site, and no cyber security vision in Lebanon.” Stories about digital attacks and the damages they cause have, for several years now, been topics of international organizations endeavoring to draw attention to the problems of cybercrime growth rates. “The cost of cybercrime will have quadrupled since 2015, reaching $2.1 trillion by the end of 2019 and outpacing spending on cybersecurity by over 16 times,” said a January 2019 blog entry on the World Economic Fo- rum’s website, which bemoaned that despite growing information secu- 12 executive-magazine.com rity expenditures, the recent past was ducing digitized processes and the of the real digital Lebanon and partic- marked by such egregious dispropor- language of automation into govern- ipation by representatives of several tionality of cybercrime damages and mental agencies,” says Hisham Itani, universities, January and February of cybersecurity investments. the chairman and CEO of Resource 2019 also saw a three-day conference The same, well-tested road of cit- Group, a holding that entails numer- marketed as a “Sustainable Digital ing dystopian estimates “by experts” ous companies with focuses on vari- Ecosystem Summit” with active cor- and providing scary studies to the ous aspects of digital development. porate participation and media part- unaware public via various uncriti- “After that, we can start thinking nerships (Executive Magazine was cal media channels is often chosen about how to protect these assets be- a strategic media partner). by the vendors of cybersecurity tools cause then we will have something to Tony Ghattas, the chief operating with the dual aim to create greater protect. But today we have nothing, officer of the event’s organizer IFP, awareness as well as boost sales of so what shall we protect? There is cy- said the group was aiming to devel- their products and services. By this ber, but there is no security. Efforts op the sustainable digital ecosystem year, however, this road is already so of implementing and well-trodden and dusty that it might sporadically improving become difficult for the average busi- cybersecurity are [un- The last two months have ness decision-maker to assess her or dertaken] by the central seen a rising wave of events his investment needs for cyber de- bank and very few alpha that appear capable of fense tools or understand the ever- banks but [cybersecu- raising digital awareness. growing importance of covering one’s rity] efforts are not yet digital risks. extending to the impor- Underestimating cyber risk in tant level of a state Security Opera- theme into a series of annual events recent years appeared especially viru- tions Center, or SOC.” in Lebanon and took the experi- lent in Lebanon, given that citizens Jacques Seif, the chief operat- ence of the first summit as a starting and companies were constantly being ing officer of Resource Group, adds: point for internal discussions as to confronted with overburdens of vari- “From the start date of a cybersecu- whether the next conference in the ous problems in the country’s existen- rity ecosystem, which has not oc- series will be held before the end of tial economic situation. This possibility curred yet because we are lacking a 2019 or in 2020. “It is going to be would at least help to explain why the large cybersecurity project in Leba- an annual gathering of like-minded country, despite its widely hailed tech- non, we will need at least 36 months. professionals and stakeholders. The knowledge base and entrepreneurial We have the seeds for this since we objective [of the event series] is to prowess, has been regularly lambasted are implementing cryptography and develop the digital ecosystem,” he as underprepared for the risks of digi- cybersecurity. Also, IT infrastructure said, talking about convergence tal assaults from opportunistic cyber- vendors in Lebanon are delivering se- of the key trends such as IoT, AI, crimes to cyberterrorism or cyberwar- curity applications such as intrusion Blockchain technologies, and digi- fare by malignant powers. prevention systems and firewalls, tal identities under a comprehen- However, a more accurate pic- but you need to aggregate all of this sively legislated framework that ture of the dismal digital status of around something called a SIEM or would establish Lebanon as the re- Lebanon might be that the country Security Incident Event Management gional leader in its digital ecosystem. in previous years did not only have system and around a SOC.” IFP’s summit was followed by too many other problems to pay the another event with an even more needed attention to its cyber risks ENTER A BRAVE NEW YEAR precisely defined focus on new cyber- but also that it lacked basic building The good news then is that Leb- security solutions that could be ap- blocks for becoming a cyber nation. anon today not only has at least a plied in Lebanon. The one-day event The deficiencies included the absence promising shot at political invigora- at the end of January was driven by of legal structures for protection of tion and reform—with the potential a partnership of local information se- citizens’ data and digital privacy, for to reduce many headaches in the citi- curity firm CIEL, an expert in email the punishment of criminal offenders zenry although some others look set security and digital signatures, and prowling digital spheres, and of wide- to increase—but also that the last two Finnish firm Ubisecure, a specialist spread digital underdevelopment in months have seen a rising wave of that wants to bring its digital identity the corporate world, not just in the events that appear capable of raising management and access management realm of cybersecurity. digital awareness. While AUB’s Cyber solutions to Middle Eastern markets. “Our government elites have to Security Day impressed as an aca- Declaring his satisfaction with appreciate our cyber assets, intro- demic forum with frank evaluations the event and optimism for stronger 13 ECONOMICS & POLICY March 2019 Overview

future adoption of cybersecurity so- committee in the Lebanese Parlia- Nasser Saidi, visiting in late February, lutions in different MENA markets, ment and sponsor of the law.) mused how perceived current discus- Salah Rustum, chief executive officer From the perspectives of private sions on AI-enhanced e-government of CIEL, assesses the state of cyber- sector stakeholders whom Execu- and papers on digital strategy resem- security awareness in Lebanon as tive talked to, the progress represent- bled proposals circulated at an e-gov- being significantly improved when ed by Law 81 is enormous, despite the ernment themed Beirut conference in compared to two years ago. “I expect limitations of the current framework. 2003. “[Government leaders] are still good progress and good comprehen- “Law 81 has some loopholes, but a law living back in the ’60 and ’70s, when sion of the problem of cybersecurity with loopholes is better than no law,” they should be living in the 2020s and and am sure that many organiza- comments Salah Rustum. Resource planning for the 2030s,” Saidi was tions in need of cybersecurity will Group COO Jacques Seif emphasizes, quoted as saying. go ahead to apply the needed meas- “The merit of Law 81 is that it sets a Even event organizers IFP caused ures,” he tells Executive. “I will not legal framework for electronic trans- a hint of déjà vu in the observer’s try to forecast if it would be com- actions in Lebanon, which is a great mind. The company, which so en- mercial establishments, or banks, progress by itself.” ergetically went about lifting the IT or government entities that will be On the executive side of the gov- topic of a sustainable digital eco- most responsive throughout this ernment, the corresponding impulse of system in 2019, had been a notable year but am speaking in general that new digital hope is the appointment of absentee from the organizing of IT- awareness of cybersecurity has really the first Minister of State for Informa- centric trade shows in Lebanon since surfaced in Lebanon.” tion Technology and Investment, Adel the early 2000s, when it was running For good measure, the Digital Afiouni (see interview on page 28). an annual Beirut IT fair by the name Arabia Network—which presents of CompEx. itself as the entrepreneurial lab for OVERCOMING DIGITAL DÉJA-VU With so many points where de- Arab digital future—spiced up the The good mood and improved pressed digitization and cybersecurity aforementioned corporate and aca- perceptions of Lebanon’s cybersecu- watchers in Lebanon might see the demically themed events with a rity awareness in the eyes of corporate current surge in cybersecurity aware- strong dose of social entrepreneur- players in this space notwithstanding, ness and new digital vigor—especially ship in early February when it con- Lebanon has much to do to overcome on the side of public sector minds—as vened in the Beirut Digital District its digital inertia. The result spurt of a temporary flash rather than sustain- to present the initial able change, it should serve well to results of an effort to- envision the upside potentials of leap- ward Digital Mapping The progress represented frogging hops into the digital eras in of the Arab World. by Law 81 is enormous, one’s mind. For example, researching While the complete despite the limitations of the success stories from peer countries, results were not avail- and then visualizing the downsides of able at time of writ- current framework. not making the overdue jump into the ing, a press release of future is useful. the DAN Mapping Project—the pro- conferences and talks prompt flash- For this exercise, all a Lebanese ject is covering six countries in the backs over similar talk of digital de- citizen or resident needs to do is, for Levant and North Africa—enthuses velopment strategies 15 and 20 years example, to visit certain entrenched that “Lebanon appears to be growing ago. Hearing in one conversation that line ministries and administrative in the digital sphere.” the country is in need of leapfrog- units where paper-based processes Most importantly, however, the ging into the digital era reminded are—in 2019 still—being used to first month of the year witnessed the yours truly strongly of an interview incredible bureaucratic excess. Or coming in force of Law 81 that is rel- at the end of the 1990s when a senior a seeker of such examples can trav- evant for the growth of fundamental expert at the Office of the Minister erse the central offices of the biggest digital services, such as electronic of State for Administrative Reform, municipality in Lebanon and pay at- transactions, privacy and data protec- Raymond Khoury, expressed his tention to how much their personal tion, prosecution of cybercrimes and conviction that Lebanon would need time and effort all urban residents organization of digital processes in to “supersonically leapfrog” in terms have to invest into jumping over Lebanon. (See page 32 for interview of e-government. bureaucratic hurdles for accessing with MP Nadim Gemayel, the chair- According to a report in The normal services that could easily be man of the Information Technology Daily Star, former economy minister provided digitally. 14 executive-magazine.com 15 ECONOMICS & POLICY March 2019 Reform

By Jeremy Arbid

Long overdue reforms

What can the Lebanese government achieve in less than two years?

After nine months of delibera- vious years; adopting an anti-corrup- and ease supply-side bottlenecks. In tions, Lebanon formed a new gov- tion strategy; and ensuring 24-hour Paris, Lebanon presented donors and ernment at the end of January. Saad electricity “as soon as possible,” while investors with a Capital Investment Hariri, now in his third term as prime reducing the subsidy to the failing Plan (CIP). The CIP was prepared to minister, announced a reform agenda as public electricity utility. There is much address specific economic shortcom- the cabinent’s raison d’être. Since 2011, that needs to be done, but given the ings: tremendous challenges in public Lebanon’s economy has been exhibiting length of time it took to form this gov- finances, monetary policy that has ex- recessionary symptoms and reforms are ernment it is fair to wonder how many hausted all options to maintain stabil- needed to reboot the economy. of these reforms can be achieved, and ity, low growth rates, high unemploy- According to media reports on whether this cabinet’s term will be ment, increasing levels of poverty, and the contents of the ministerial state- long enough to make any substantive the balance of payments problem. ment (the government’s mission difference ahead of the 2022 parlia- The reforms promised involved statement), the agenda includes: mentary and presidential elections. fiscal discipline measures—mainly adopting a fiscal and monetary policy through the reduction of the debt-to- to instill confidence in the economy A LONG TO-DO LIST GDP ratio by decreasing the deficit and reduce the debt-to-GDP ratio State officials attended CEDRE by one percentage point of GDP over through growth and spending reduc- in April 2018, pledging reforms in the next five years. The state could tion; passing the 2019 draft budget exchange for donor financing to de- work toward this reduction in two and auditing public finance from pre- velop the country’s infrastructure ways: First, by reducing the subsidy to 16 executive-magazine.com GET 20% OFF AT

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TIMELINE OF LEBANESE GOVERNMENTS

18th Parliament 19th Parliament 20th Parliament 21st Parliament 22nd Parliament extension 1 extension 2 ext 3 23rd Parliament

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Speaker Nabih Nabih Nabih Nabih Nabih Nabih Berri Berri Berri Berri Berri Berri

Elias Emile Michel Michel President extension extension Hrawi Lahoud Sleiman Aoun

Government Ra c Ra c Ra c Salim Ra c Ra c Fouad Saad Najib Tamam Saad Saad Hariri I Hariri II Hariri III Hoss Hariri IV Hariri V Siniora I Hariri I Mikati II Salam Hariri II Hariri III

Elections Caretaker governments Vacancies in presidency Omar Karami Najib Mikati I Fouad Siniora II

Sources: Websites of the Presidency of the Republic of Lebanon; Presidency of the Council of Ministers; Lebanese Parliament; media reports

the failing public electricity utility, eliminating the EDL deficit, with a EXPERIENCE AND LONGEVITY Électricité du Liban (EDL), which timeframe of three years to achieve NEEDED averaged $1.6 billion per year be- this; a call to reduce the cost of In order for the government to be tween 2010 and 2017, according public debt servicing by at least 10 effective in implementing reforms, it to figures from the Ministry of Fi- percent through a mechanism that needs ministers with some experi- nance; second, by shoring up rev- the government, the central bank, ence in office. If a seasoned cabinet enue to the treasury by increasing and commercial banks agree on— minister retains their portfolio or the tax base and reducing evasion though at the time Executive went is granted a new one, there may not of the value-added tax, which the to print it was still unclear how this be as much disruption or as long a International Monetary Fund last mechanism would work; and a rec- learning curve as there would be for a estimated in 2013 at $1.5 billion. ommendation that the state reform fresh member of cabinet. It would not In February, Lebanon’s political public sector pension systems and be accurate to call this a technocratic parties met with the Economic and benefits, review public sector per- government, but it has a high share of Social Council (ESC)—an advisory sonnel and positions, and freeze members that have at least one of the body to the government addressing hiring for 2019. following three qualifications: experi- economic, business, and civil con- As Executive reported last ence as cabinet member in previous cerns—for discussions of a 22-point month, international organizations governments, experience as a leader economic plan. According to a draft have advised Lebanon to adopt an in a private sector enterprise, and/or version reviewed by Executive, evolving list of structural and sec- experience that is related to the port- the parties agreed to recommend toral reforms and doing business folio they are in charge of. There are fiscal measures the state should measures to spur economic produc- definitely individuals in this cabinet adopt to address the country’s fis- tivity and enhance the private sec- appointed thanks to political ties, but cal imbalances. The plan included: tor environment. even then there is no indication they 18 executive-magazine.com TIMELINE OF LEBANESE GOVERNMENTS

18th Parliament 19th Parliament 20th Parliament 21st Parliament 22nd Parliament extension 1 extension 2 ext 3 23rd Parliament

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Speaker Nabih Nabih Nabih Nabih Nabih Nabih Berri Berri Berri Berri Berri Berri

Elias Emile Michel Michel President extension extension Hrawi Lahoud Sleiman Aoun

Government Ra c Ra c Ra c Salim Ra c Ra c Fouad Saad Najib Tamam Saad Saad Hariri I Hariri II Hariri III Hoss Hariri IV Hariri V Siniora I Hariri I Mikati II Salam Hariri II Hariri III

Elections Caretaker governments Vacancies in presidency Omar Karami Najib Mikati I Fouad Siniora II

Sources: Websites of the Presidency of the Republic of Lebanon; Presidency of the Council of Ministers; Lebanese Parliament; media reports

are completely unsuited to their posi- agenda soon after. Why? As Lebanon in the job would normally be a cause tion of appointment. experienced during the presiden- for concern, but for Lebanon this has What could derail the reform cies of Michel Sleiman and Michel been almost a happy factor because agenda of this new government? In Aoun, a caretaker cabinet has much everything else is so dysfunctional. a recent interview published on the less power than website of the Carnegie Middle East an empowered In order for the government Center, the think tank’s director, Maha government. For Yahya, cited internal factors, including the country to to be effective in implementing the usual domestic political infighting have an empow- reforms, it needs ministers with as well as a deteriorating economy, the ered government some experience in office. fight over normalizing relations with requires three ele- Syria, the potential for conflict with ments, otherwise Israel, collateral damage from possible known as the troika: the speaker of Looking back at how much down- US financial sanctions targeting Hez- Parliament, the prime minister, and time the state has had over the last two bollah, and other security challenges. the president. For most cabinets after decades—in terms of caretaker gov- If the maximum constitutional Rafic Hariri’s assassination in 2005, ernments, extended mandates of Par- lifecycle of this cabinet is until spring this has not been the case. In the pe- liament, or vacancy of the presiden- 2022—which is when Parliament and riod since, there have been vacuums in cy—suggests why the reform agenda the presidency are up for election (as every area: in cabinet, in the presiden- has been stalled for so long. The ques- Parliament becomes the election col- cy, and in the mandate of Parliament— tion now is how much of the reform lege for the president)—then Leba- though not in the role of speaker of agenda can actually be accomplished if non will need to have a new cabinet Parliament, which is somewhat ironic. this cabinet has less than two years left empowered to continue the reform That the speaker has had a 27-year run of effective full power? 19 ECONOMICS & POLICY March 2019 Comment

By Mounir Rached

An urgent need for reform Lebanese fiscal outcomes in 2018

There has been a growing con- This implies that a more serious of the structure of the debt and the legal cern over Lebanon’s debt outlook. effort is needed in order to comply implications of such a measure. True, the fiscal deficit at end of Q3 with the CEDRE commitment to re- The repeated analogy to the Greek 2018 was twice that of 2017 for duce the budget deficit annually by 1 case is certainly faulty. Greece owed the same period. Two main factors percentage point of GDP in the com- substantial external debt to European contributed to its escalation: First, the ing five years. The budget for 2019 banks, and, given that it does not have wage and salary increases that were has not yet been approved by the new its own currency, could not service adopted during the last quarter of the government in order to be submit- its debt except through generating 2017 budget and extended through ted to Parliament and to be passed substantial surpluses in its balance of the first three quarters of 2018, gen- into law. But no major changes are payments—quite an impossibility in erated a rise in personnel costs of 21 expected, as the inflexible wages and the presence of perennial fiscal defi- percent; and second, the escalation in debt service are built in, and consti- cits. Foreign banks (mainly European) the debt service cost by 8 percent, re- tute 70 percent of total spending. could offer a reduction in debt (hair- flecting both higher debt and higher The fiscal risk for Lebanon is high cuts) to Greece, as each holder had in- interest rates. and is generating considerable dam- significant amounts of Greek debt rela- age to the whole economy. First, it tive to its assets. Such reductions could BLEAK FISCAL OUTLOOK weighs heavily on the Rates are likely to post a further current account of rise as the latest treasury bill issues the balance of pay- The fiscal risk for Lebanon is commanded an interest rate rise of 2.5 ments through the high and is generating considerable percent to reach 10 percent on the 10 saving-investment damage to the whole economy. year note. Shorter term rates rose by gap of the public 1 percent to the range of 6-7 percent. sector. Second, the Real rates, however, are near zero at the high debt service, reaching nearly 50 have been done without implications current inflation rate. Nominal rates percent of revenues, has limited the for depositors, but certainly at the ex- are expected to remain high and the options for public spending. It has pense of shareholders’ profit. primary instrument to support the peg. forced cuts in capital spending in In the case of Lebanon, banks have Revenues have remained sub- order to have sufficient resources for significant holdings of public debt, dued, rising at 3 percent, reflecting current spending; a first priority for amounting to 14 percent of their assets, slower economic activity in most tax the government, as evidenced by the and 64 percent of total bank loans. Any bases. In addition, revenues of 2017 generous wage increases. Third, the debt reduction of significance, there- included a significant windfall trans- high capital cost that is being generat- fore, would have an impact on deposi- fer of over LL1 trillion that resulted ed is abating investment in all sectors. tors, and could engender a legal battle. from the financial engineering opera- Recent media statements report- Furthermore, politicians and promi- tions of Banque du Liban (BDL), Leb- ing on potential debt restructuring nent businessmen would be affected in anon’s central bank. A repeat of these damaged confidence in the financial a tangible way, likely prompting them operations is very unlikely. secondary markets. These statements, to block such a move. It is estimated The overall fiscal outlook for the sparked by a local press report where that the distribution of deposit hold- whole of 2018 is expected to post the then-caretaker finance minister ing is significantly skewed in Lebanon, further deterioration, and the overall was quoted as having raised the possi- with 1 percent of depositors holding deficit may reach the LL9 trillion ($6 bility of debt restructuring (comments about 50 percent of dollar deposits. billion) mark, thus raising the deficit he quickly refuted, reassuring the mar- Debt cuts are a serious matter and ratio to 10 percent of GDP compared kets that no such plan was on the table), are undertaken only when a country is to 7 percent in 2017. were based on unrealistic perceptions on the brink of a default or de-facto de- 20 executive-magazine.com faulting. Lebanon is not in this category jor revenue generating instruments for Nevertheless, the government’s now for the following reasons: banks, in addition to being constrained need for reform is very urgent and a Lebanon’s debt is issued mostly by maturities, sudden downloading of continued deterioration of the fiscal in lira (60 percent), and is being held government securities is not seen as an outlook could precipitate a forced mar- almost totally by domestic financial immediate threat. International private ket adjustment that would reveal itself institutions. These are as follows: BDL holders carry less than $1.3 billion, and in a currency depreciation and de facto with 45 percent, commercial banks would have a limited impact on the do- de-pegging of the lira from the dol- with 40 percent, public enterprises with mestic and international markets in the lar. It is important to pursue reform in 9 percent, foreign bilateral and official event that they discount and redeem order to achieve balanced growth and institutions with 3 percent. Private non- their holdings. Furthermore, substan- create job opportunities for our youth bank debt holders carry only 3 percent tive and sudden outflow of capital from and the unemployed, and to reduce of total debt, and this is split among for- Lebanon is technically not feasible due economic inequality, which would very eign and domestic holders. to maturities and clearance constraints. likely worsen in a recession phase. Re- The risk of debt could emerge from The current situation does not por- form could commence in areas that are market risk principally. Banks and the tend a financial meltdown or crisis. The relatively less controversial, as in the other private non-bank holders ac- government can serve its debt in Leba- power sector. Leasing power from in- count for 43 percent of total debt, of nese currency without difficulty, at the ternational producers combined with a which $16 billion is denominated in risk of higher inflation, of course. In an power purchase agreement and a tariff foreign currencies (mostly US dollars), emergency it could also pay back its Eu- adjustment could save the economy forming only 20 percent of total debt. robond debt in local currency. This has $2.5 billion annually, including a cut in The ratio of market debt to GDP be- undesired consequences, but is likely to the deficit by one third. Hope remains comes significantly less at 55 percent, be perceived better than a full default. that the new government will address which mitigates debt default risk. Considering that BDL reserves (at $45 reform issues seriously. billion) are equivalent to two and a half Mounir Rached is a former IMF economist REFORM NEEDED times market debt in Eurobonds, those and currently the president of the Lebanese As sovereign debt is one of the ma- risks are quite mitigated. Economic Association.

21 ECONOMICS & POLICY March 2019 Lebanese diaspora

By Jeremy Arbid

It’s all Lubnani to me

has had as strong an influence on the country as religion, foreign control, or other cultural influences, and that the language spoken today in Leba- non is rooted deeply in its past. Lebanon is, in a formal sense, very much an Arab country. Politi- cally, it is integrated with the region through bilateral trade agreements and other pacts with neighboring countries, and is part of the Arab League, a regional organization fos- tering relations and common inter- ests of its member states. Arabic is the language of formal settings and is the country’s national language, according to the constitution. How- ever, the language spoken in everyday settings is not formal Arabic, but the local dialect of Lebanese Arabic. There is, according to Hsen Andil, co-founder of the new online collective Bel Lebnééné, a huge linguistic Bel Lebnééné calls for Lebanese Arabic to be standardized difference between formal Arabic and Lebanese, to the extent that they Lebanon has a long history as a are two different languages. Bel Leb- shipping and trading hub, leverag- over control of the region during a nééné aims to standardize a script ing its geographical location on the period known as the Crusades. Fast for the local language and build a li- Mediterranean Sea and connect- forward to the 1500s, ing mainland Europe to the Arab and Lebanon was part hinterland. In an attempt to spare of the Ottoman Empire There is a huge linguistic readers from a history lesson, it was for nearly 400 years un- difference between formal several thousand years ago that re- til its collapse follow- Arabic and Lebanese, to ligious texts referenced the peoples ing World War I. From the extent that they are two of Mesopotamia (in what is now then until the Republic modern day Iraq) first migrating of Lebanon was es- different languages. and settling on the coastal lands of tablished in 1943, the the area. These people were known country was under the as Canaanites. Later, the Phoenician French Mandate. In the post-World brary of content. The collective aims civilization dominated the coastal War II period, following the lead of to raise awareness and encourage lands of the Eastern Mediterranean the politically and financially supe- Lebanese speakers to write and ex- and was centered around the pre- rior Americans, Lebanon, along- press themselves in Lebanese. sent-day geographical borders of side many other countries, was in- Lebanon. For a period, the Romans tegrated into the global economy. A COMMON LANGUAGE ruled over the area before the Arabs, Throughout its entire history, it is Andil and fellow Bel Lebnééné and this was followed by a struggle thought that the maritime tradition co-founder Mahmoud Rasmi sug- 22 executive-magazine.com BUT WHEN IN TRIAL BE QUICK TO DIAL

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gest that the problem may be that This is because the language that is quial dialect with foreign produc- Arabic as a language has not evolved; taught in the textbooks is not what tions dubbed, or subtitled in formal they have struggled in academic set- is spoken on the streets outside the Arabic. But now in the digital era, tings to convey technical subjects in classroom. For foreign language stu- many of these mediums are not as Arabic, and instead have to revert to dents to learn Arabic in Lebanon is widely consumed as they once were. English. Latin and Ancient Greek was really challenging, and it is more akin This makes practicing formal Arabic the lingua franca of academia until to learning two foreign languages in- outside of the classroom somewhat the start of the 20th century. Nowa- stead of just one. challenging for Lebanese students days, English is the go-to language At Lebanon’s primary schools the and for foreign language learners. for the definition of terms of global situation is similar, formal Arabic is Andil and Rasmi think of formal capitalism. This is especially evident taught, but according to 2017-2018 Arabic as almost a dead language. It to journalists listening in on the Eng- enrollment figures from the Center is not an extinct language, they say, lish-to-Arabic translation at confer- for Educational Research and De- because it is still used in religious ences where the speaker uses a term velopment under the Ministry of and formal settings, but dead in the or concept in English, and the re- Education and Higher Education, sense that it is not commonly heard translation into Arabic does not come more than half of Lebanese students in day-to-day conversation. Leba- out very easily, meaning the concept (almost 550,000) are gets altered and diluted. To see this in enrolled at schools Lebanese is unique practice, bilingual readers can try this that teach French as exercise: How does one translate data the primary foreign from formal Arabic in that breach, meaning a security incident language, with about it incorporates terms and where digital information is compro- 48 percent of students concepts from other languages. mised, into Arabic, and how would (almost 520,000) en- that concept be retranslated back into rolled at schools that English? teach English as the primary foreign nese is unique from formal Arabic In terms of audience size, the on- language. Schools are licensed by the in that it incorporates terms and line collective has big potential. The ministry to offer curriculum of the concepts from other languages. This main communities that could benefit American system, the French system, is most easily seen through code- are the Lebanese that live abroad as or the International Baccalaureate switching, a term that refers to al- part of diaspora communities living system. However, the Lebanese of- ternating between languages during mostly in North and South America, ficial curriculum is taught alongside a conversation. At its simplest, there Europe, Australia, and Africa. They a foreign system, while the national is the famous phrase “Hi, kifak, ça number in the millions, and, for exam, which must be passed to obtain va?” and conjugating words using many in the diaspora, formal Arabic the high school diploma, is offered spoken Lebanese Arabic rules, such is not a language taught to school- only in Arabic. Often students have as the use of “bonjourayn” to reply children. Instead, many in diaspora studied subjects, such as science or in greeting. households might only be speakers math, in English or in French. Those Bel Lebnééné looks to standardize of Lebanese and may have limited test subjects are part of the national spoken Lebanese into a written for- formal writing and reading ability, exam, with their terminology trans- mat and to build a library of content and so Lebanese diaspora may con- literated from the foreign language to make written Lebanese more main- sider Lebanese, not formal Arabic, into Arabic. stream. The two co-founders point to their mother tongue. That means that poet and prose author Maurice Awad, when they visit Lebanon, or return STANDARDIZING LEBANESE financially-inclined academic Nassim to live in the country, they can speak At home, Lebanese tend to speak Taleb, and other well-known authors and interact in day-to-day conversa- the local dialect and not formal that wrote in Lebanese, such as Said tions but may struggle in formal set- Arabic, and there are some house- Akl and Talal Haidar. Their effort is tings or when reading or completing holds where French or English is not one with political goals—they do official paperwork. the dominant language. Media in not aim for the collective to serve as a Those that come to Lebanon Lebanon, such as the newspaper or platform promoting national identity, seeking to learn Arabic often find out news broadcasts as well as books are but to express themselves better when very quickly that the country, and es- mainly delivered or written in formal talking about philosophical, political, pecially in the capital, Beirut, is not Arabic. Locally produced television or economic issues, and to inspire an ideal place to study the language. programming is often in the collo- Lebanese to write as they speak. 24 executive-magazine.com You see a couple.

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By Samer Elhajjar

Destination Lebanon Building Lebanon’s destination marketing to fuel growth

Lebanon has long been a crucial products that should be marketed and my and agro-industries. Large inves- center for creativity and innovation, branded to increase their attractive- tors, namely the GCC market, should and is reputed to have some of the ness to investors and stakeholders. be courted by the financial and tour- most successful advertising agen- In Lebanon, a unified marketing ism sectors; the government should cies and marketers among its citi- strategy for the country has been at- make a special effort to promote Leba- zens. Yet the country does not have its tempted before. In 2001, then-Prime non in the GCC region. own marketing plan. There is no uni- Minister Rafic Hariri tried to develop To attract these markets, Leba- fied strategy for promoting Lebanon a brand for Lebanon in a holistic and non should be positioned as a stable, as a country to either tourists or inves- coherent way. However, this effort did safe, and alluring destination with tors. It is of the utmost importance, not materialize due to Hariri’s assassi- fertile ground for investment. An- then, that the government develop a nation and the political instability that other important step in its territorial cohesive country marketing strategy followed. After the assassination, iso- marketing strategy is to develop dif- that could play a role in alleviating the lated efforts were made—by the tour- ferentiation tactics to attract investors economic situation Lebanon faces. ism ministry, among others—to create and tourists. Any country marketing The post-war situation in Lebanon a brand image. However, none of these strategy should work to highlight any has been marred by instability, with po- efforts made it past the planning stage factors that differentiate Lebanon litical conflicts hindering any reform ef- due to a lack of political will and sup- from its regional competition. The forts to improve government finances. port. Today, the brand image of Leba- Lebanese people’s innovativeness, The deteriorating economic situation non is very fragmented, and there is creativity, and entrepreneurial mind- since 2010 has burdened the private no conscious effort by the country to set can be regarded as the main dif- sector and led to worsening conditions develop it. The failure of the govern- ferentiator in Lebanon. Other assets for conducting business. In order to ment to create and communicate a include: the diversity of opportunities fuel economic growth, the government unique brand for Lebanon has led to that Lebanon offers to investors in must re-brand the current image of the country being perceived with in- various industries; the vibrant, mul- Lebanon, from a risky unstable country difference by, for example, its regional ticultural nature of the country; and to a safe and stable environment. neighbors and European markets. the rich natural resources and agri- Globalization has led to increased Isolated efforts undertaken by min- culture conditions. competition among countries as they isters and public influencers cannot Finally, the government should attempt to secure more resources and create a national brand for Lebanon. make national security a priority to aid attract more foreign investment, both If the government wants to play an the implementation of any marketing of which have a direct impact on so- important role in the region, it has plan for Lebanon. The government cial and economic development. The to adopt the marketing tools that will should also establish an open market stability of nations in this aggressive help Lebanon project a better image. economy with high levels of foreign global environment has relied mainly To effectively brand Lebanon, the direct investment and local savings. on their ability to create and promote cabinet must first develop its capital The government strategy should stress competitive advantages in order to at- market strategy, which includes seg- that the state’s role in economic issues tract investment. Country marketing mentation, targeting, and positioning. is important but limited; it should de- has become an essential tool used by In Lebanon’s case, two groups need to velop the legal framework for an econ- governments to increase their com- be courted: small and large investors. omy in which the private sector is the petitiveness, promote local develop- Small investors—the European mar- main actor. ment, and attract foreign investment. ket, for the most part, in addition to Samer Elhajjar has a PhD in marketing from In this context, national governments the GCC—should be courted by the the University of Strasbourg. He is an assistant must act more like business entities, creative and production sectors in or- professor at the University of Balamand and whereby territories are regarded as der to attract investment in gastrono- consults in strategic management and marketing. 32 executive-magazine.com 33 ECONOMICS & POLICY March 2019 Q&A

By Thomas Schellen

An administrative startup venture Interview with the new minister of state for information technology and investment

Lebanon is well-acquainted with space. I am pretty familiar with the the true diaspora returnee: the indi- ecosystem, with the entrepreneurs, vidual born in Lebanon who depart- the VCs, and the government enti- ed at some point in the 20th century, ties on the knowledge economy side, who has one or multiple tertiary ed- but in my first few weeks on the job ucation degrees—often earned at a I want to do a full mapping [of the ranking European or American uni- digital landscape] and listen to all versity—and who succeeded in his the key stakeholders from the gov- career abroad before returning to ernment and the private sector, so Lebanon, for reasons ranging from that I can figure out what mandate family responsibilities or/and love I want to design for this ministry, to entrepreneurial hunger and will what is the scope of work, and what to invest. Some spirited entrepre- is the vision that we want to achieve. neurs even get involved in diaspora From there, I want to determine the organizations. strategy and the deliverables. My However, while this personality ministry is actually a startup, which is frequently encountered in the en- goes well with the way in which I like to grow this ministry and deliver trepreneurial private sector economy to operate. I am very excited about on our ambitions. I need to submit of Lebanon, it has not been so com- this and want to operate it in the way a plan with a budget. If you look at mon—at least for several political you found a business. the policy statement [by the Coun- generations in positions of power, cil of Ministers] that was presented until the arrival of the 2019 Council E Are you, in the sense of a startup to Parliament [in February], there is of Ministers—to meet a minister that enterprise, bootstrapping? a portion that says that ministers of fits the profile. Executive sat down In my opinion, the ministry has a state will be given resources, includ- with Adel Afiouni, minister of state very strategic role, and I myself have ing budget[s]. We have to ask for for information technology and in- high expectations as to what we want [such allocations] as we operate in an vestment, to understand his vision to achieve. I also am dealing with stake- environment where we can obviously for this new role. Having been able to holders who have high expectations, as not overspend. We have to be very check the above-mentioned achieve- this sector is, by definition, a fast-grow- rigorous [on spending control], and I ment boxes on Minister Afiouni’s ing sector with entrepreneurial partici- do not have any issue with leveraging professional track record in educa- pants. I want to build a long-term strat- existing resources and cooperating tion and international banking, Ex- egy with clear deliverables. with a lot of stakeholders inside the ecutive is now standing by to tick government. There are some minis- off the delivery boxes on the new E Of course, one does not expect a tries where there is complementarity ministry’s KPI fulfillments or flops in ministry to bootstrap, but there have been and scope and the need to cooperate, the coming years. instances where entire ministries had no like the Ministry of State for Admin- clear budgets and were forced to resort to istrative Reform (OMSAR) and [the E What is your perspective on knowledge tapping into external funding sources. Do Ministry of Telecommunications]. economy development in Lebanon, includ- you have a budget? All ministries effectively are partners, ing the state of the digital ecosystem and There are challenges. [The min- we are all partners in the project of the readiness of our cybersecurity? istry] is a startup, and funding is digital transformation. There are also I have not yet gone into the de- obviously a key component when large components of the private sec- tails of the cybersecurity topic. I just you build a startup. We have a com- tor who want to be involved and help. started and am first mapping the mitment from the Prime Minister We need to leverage those resources. 28 executive-magazine.com E As you mentioned, more than one min- platform to be most efficient. Beyond further. This weekend I spoke with istry has been a stakeholder in building IT this, each ministry or administration the minister of education to jointly capacities in public administrations and obviously will have its own [digitiza- organize meetings with all the large Lebanon’s transition into the knowledge tion] priorities and implementation universities and come up with a strat- economy. OMSAR was a stakeholder inside the governance structure that egy where the universities can be together with UNDP in developing an can oversee the execution and [fulfill- actively involved in our vision and e-government strategy document as far ment of] KPIs. plans. When I talk about the private back as 2003, and then in producing an- Now, going back to my own pri- sector and how we can transform other, similar strategy document that was orities in entering into this position, I Lebanon into a business hub in the published late last year. Did you already see the scope as twofold. One scope is knowledge economy, enablers are have time to look at the priorities as the digital transformation of the gov- key. Two enablers are first on my they were presented in those papers and ernment. That scheme has, for many list. One is infrastructure, and that is determine which of them you will pursue reasons—transparency, efficiency, and where our neighbors at the ministry as minister? the journey of the citizen—to be of telecoms are set on improving the Yes, you are right that we had a made much easier. This is important infrastructure in the whole country. number of strategy papers and stra- for the economy, but also for regain- The second enabler is education, re- tegic initiatives that we need to ex- ing the citizen’s trust in the govern- search, and development. We need to ecute; the key is execution. I looked ment. That is one side of the scope. create [intellectual property] in the at a lot of documents, not only from Equally important is the second side: country; we do not just want to be OMSAR, but every ministry had de- the emergence of Lebanon, from an intermediary. To do that, we need veloped [such documents and plans]. an economic and business perspec- strong research and development. Some administration units have tive, as a hub for technology and the We need to adapt the curriculum in made substantial progress, but oth- knowledge economy. This is a sector the universities to the business world ers are a bit late in the game [in terms where we have many advantages and and to the new technologies. It is a of digitization]. We have not imple- have the potential, contrary to other part of the strategy and very impor- mented the full strategy so far, so we sectors, to grow and become a mean- tant for us to include new technolo- can leapfrog. There are new technolo- ingful player in the region. gies in the curriculum, starting with gies and new ways of digitizing the For me, therefore, there is the schools. I have friends in Parliament government and the economy. That is digital transformation of government, in this, and, for example, MP Nicolas the first priority item. where I have to work closely with Sehnaoui is going to propose a new Secondly, this government has every partner in government who is law on introducing technology sub- a strong commitment to the knowl- involved—[which is] pretty much eve- jects in schools. We also need to do edge economy as a pillar of our strate- ryone. OMSAR has done a great job in the same at the university level, where gic vision for the economy. Therefore, setting the stage, but we need to pro- we need to introduce new technolo- and this is also in the policy state- gress from there. And there is the pri- gies and link the universities better ment, there is a strong commitment vate sector, business side to the knowl- to the business ecosystem. All this is to the digital transformation of the edge economy, which we need to grow starting, but I think we need to turn it administration and the into a focused plan. economy. We are going “The strategy is key, to start discussions, such E If we turn to talk about the business as [convening] inter- but the governance community and specifically the financial ministerial committee is fundamental for sector, what is your perspective on the meetings. The key for executing it.” role of banks, and especially the function such initiatives, in my of Circular 331, for the development of the experience from other knowledge economy in Lebanon? countries, is to first put the govern- and transform from an emerging sec- I think Circular 331 has been ance in place. The strategy is key, but tor with a lot of potential into a well- a major catalyst that has effectively the governance is fundamental for established center for the region. jump-started the whole ecosystem executing it. We need to establish the [of the knowledge economy]. As we governance structure and decide on E What is your position on interaction all know, you can have many plans, but the role of each ministry within the with the academic and civil society sides? if you have no funding for a plan, you governance structure and how we I have many ideas on that side can’t progress. I salute [Banque Du Li- will work on a shared infrastructure but, to be fair, I need to develop these ban Governor Riad Salameh] for his 29 ECONOMICS & POLICY March 2019 Q&A

vision on this. [Circular] 331 has been ments can actually be made in a more where we already have digitized a lot a fantastic initiative, and what it did efficient and transparent way. This is of data, we need to put the mechanism was basically make capital available to part of my priorities. in place to protect our country and our the startup ecosystem. Our role in gov- citizens. It is also very important to pro- ernment is not only to support it, but E In order to create a virtuous cycle or tect the privacy of citizens’ data. to complement it. [Circular] 331 has upward development spiral for Lebanon’s brought the banks as major investors digital transition, it seems that this country E Are we going to see another national into the ecosystem, but there are other needs to achieve much: investments, reforms, plan on cybersecurity and other digital and types of investors that we also need cybersecurity, digital identity, and e-govern- e-government issues, something such as a to bring in [to] diversify the funding ance. As the country would work on all these national digital strategy, the next edition? sources for the ecosystem. The most issues, do you see them as priority needs that I hope we don’t need to recreate important thing is for our country to are best pursued consecutively or concur- this because there’s a lot of good work attract capital, not just in the form of rently? Phrased differently, must we achieve a that has been done. One of the rea- deposits, but in any form of invest- succession of milestones or will it be better to sons I see for delays [in implement- ments. Thus, we need to supply those work on all fronts at the same time? ing a national digital strategy] is that other investors with sets of incentives As I see this, the tracks are parallel, we’ve seen a lot of strategy papers and support. We have a pool of capital and we should avoid taking on [digital come in. They keep reinventing the available, which mostly is diaspora cap- transformation] one step after another. wheel. I prefer if we actually leverage ital, that we need to attract and encour- If we have a governance structure and the work that has been done and re- age. So far, we have focused on this pool agree on a common platform or shared ally [do this] in the near term. We will mostly as a source of deposits. That is principles, everything should go in agree on a deadline [for the govern- fine, but we have to also attract them for parallel. [In this way,] we will actually ment’s digital transition] so we [can] investments in productive sectors. One create a virtuous cycle. For example, start implementing [the strategy]. We of my priorities as minister for infor- we will not wait for everything [else] to can get inspiration from a lot of coun- mation technology and investment is to be ready before going to attract invest- tries that were in similar situations. see how we can attract more diaspora ment. This is because having attracted a We need to execute [our strategy]. capital to productive sectors in Leba- small investment sometimes puts pres- non, and in particular to the knowledge sure on other things to progress faster. E One of the experiences that have marked economy sector by providing support, periods of technical migration and innova- help, and incentives. E On the cybersecurity side, there seem tion seems to have been that in taking these to be several options in the sense of hav- steps, countries have tended to make mis- E Does the minister of state for information ing centralization in the management of takes. Perhaps it has even been necessary technology and investment then also have a citizens’ data and single-source issuances for administrations to make mistakes on the vital stake in collaboration with the central of digital identity files or having more of a road to e-governance and learn from them. bank and the Capital Markets Authority of decentralized approach. Do you favor one But as for Lebanon, it seems today that we Lebanon? approach? are out of time and cannot afford to make We have a great relationship with I have my views on that as I’ve done mistakes and learn from them. How would the governor and the CMA, and we some work on [such issues] in my pre- you solve this challenge? complement each other. We have to vious work. However, to be fair, these Hopefully we can progress faster work hand-in-hand supporting crucial are sensitive matters that touch on na- by learning from other countries’ mis- flows of capital into the country. tional security. They involve the Min- takes and journeys into digital trans- istry of Defense, the interior ministry formation. We honestly just need to E Does your sightline also extend to a and many organizations. Thus I would have a clear governance—something perspective on financial sector companies rather first discuss these matters and that we don’t have today—and then and banks on issues such as new payment hear views from different parties before this governance will lead to the as- solutions in the country? we can come up with a solution. As far signment of [the needed] roles. Some Anything that makes the ecosystem as I’m concerned, it’s very important to of these roles will be handled at the more efficient, where we can see poten- take into account some of the opinions ministry’s level, but to make things tial for growth and that helps us with from inside the government, especially more efficient, shared infrastructure, digitization and the digital transforma- from [the] security [establishment]. with the ability to communicate be- tion of the economy has enablers that As I mentioned earlier these [cy- tween government entities and use are important, and one of them is mov- bersecurity issues] are matters where similar tools, is very important, and ing into a cashless society, where pay- we’ve been a bit too late. At this stage, we do not have this yet. 30 executive-magazine.com 31

brave heart 20x27 eng.indd 1 2/19/19 3:06 PM ECONOMICS & POLICY March 2019 Q&A

By Thomas Schellen

A new legal class on digital Interview with MP Nadim Gemayel on digital development and Law 81

Political class is not always a flattering term. Actually, undercur- rents of personal animosity and/or political criticism are endemic when discussions turn to the political class—in any country. In Lebanon, the most frequent connotations of the term appear to be wasta and corruption. Hailing from a political family is in this sense a definite reputational burden in the court of public opinion. However, in reality there are as many nuances on political positions and achievements as there are political individuals in Lebanon, and the task of legislating a framework for the country’s digital transformation is much more important than bick- ering over ideology. As a significant stepping stone toward the digital future, Law 81 was adopted by Parlia- ment last year and went into effect on January 19. Executive sat down to interview MP Nadim Gemayel, the head of the Parliament’s information technology committee and lead sponsor of Law 81.

E Do you already have a sightline on ment [of the law] with regards to ment, even though we do not have how Law 81 is impacting the Lebanese dealing via emails and electronic e-government yet. economy and being adjusted to by transactions, especially concerning enterprises? processes that used to be paper- E Does this plan for new legislation Until now, we have not had any based in terms of C2G [consumer interlace with projects under the CEDRE feedback about the application of to government] transactions and framework and initiatives coordinated Law 81, since it entered into force payments. This relates specifically with World Bank-related projects, such on January 19. After 10 days, we still to the realms of government to con- as the streamlining of customs proce- have no feedback from enterprises. sumer and government to business dures? But I am sure that over the next interactions, or G2C and B2G, in Exactly. It all goes together. It is six months [the law] will provide areas such as payments at the ports not only about CEDRE, but about an easier way to do business in the and all kinds of e-payments. We are creating a real, modern country that country, especially for e-commerce contemplating this, together with has [digital] procedures and regula- enterprises and for e-banking. We many companies, in order to pro- tions that extend all the way. are also contemplating an enhance- vide them with the best environ- 32 executive-magazine.com E So what are the most important points is included? ness in Europe, has to comply with in Law 81 from your perspective, as its On the organizational [segment] GDPR. This is much stronger than sponsor in producing it in Parliament? we have two chapters, one that is re- our data protection regulation, but Law 81 has three main aspects. lated to regulating the .lb—I person- the companies in Lebanon will still The first is the civil law aspect, the ally have many reservations about have to adapt to Law 81. second is the penal or criminal law this chapter because it is very badly aspect, and the third is organization- done, and it was changed at the last E Is there enough awareness and train- al. The most important one is the as- minute in Parliament. It is not ap- ing in Lebanon on how to comply with pect on civil law. This aspect includes plicable, and we are attempting to GDPR, noting that European countries four chapters. The first chapter -in change it again. have recently appeared to enforce the cludes the e-signature, all sorts of regulation with larger fines? e-transactions, and electronic writ- E What is the weakness of this chapter? It is not enough. Probably only ing. Then there is the e-commerce [By changing the text of Law 81, banks are aware of all the procedures chapter, an e-banking chapter, and members of Parliament] created an related to GDPR. But in the overall the data protection chapter. These entity to manage .lb that are the four main chapters [under by law cannot be created; “We have a foot in the water the civil law aspect]. Then you have there is a contradiction the criminal law aspect that covers in the chapter. There is in terms of data protection all kinds of electronic crimes and another chapter in the but it is not yet complete data cybercrimes, hacking, etc. All this organizational section of protection, similar to GDPR.” is being covered under the penal as- Law 81 that talks about pect. The third aspect or section is all kinds of [Internet the organizational one that provides Service Providers and Data Service Lebanese market there is no aware- [measures for the organization of] Providers] and all kinds of servers. ness at all, and especially there is .lb and on how to manage internet no awareness in the ministries that service providers and data service E You mentioned in a speech at a have to apply the data protection. providers. cybersecurity conference on January 31 That is why I requested a meeting on that the law is a step toward something data protection last week with the E So, under the penal section of Law comparable to the EU’s General Data ministries on how to implement the 81, cybercrimes and their penalties are Protection Regulation, or GDPR? data protection. There was a sort of clearly defined? Right. This is the part that is re- mess in this regard. Yes, there are penalties for hack- lated to data protection. This is in ing, for intrusion into [IT] systems, the fourth chapter of Law 81’s seg- E What sort of mess is this? Is it con- for pornography and child abuse ment relating to the civil aspect. We cerning all ministries? over the net. There is a set of [legal have a foot in the water in terms We have four ministries that are sanctions] for e-crimes. of data protection but it is not yet related to data protection. We are complete data protection, similar to trying to coordinate the [issuance] E Is there also a provision in the law’s GDPR. of decrees that these ministries have penal section that deals with online har- to release. The Ministry of Justice, assment or bullying over the internet? E So it is not yet in the organizational the Ministry of [Public] Health, the No, harassment is not included. segment? Ministry of Economy [and Trade], It is still very general. The section There is a small [data protection and the Ministry of Interior [and has a set of articles that address a aspect] in the organizational sec- Municipalities] will all have to coor- small part of the e-crimes but does tion, on how companies are to do dinate in order to have a competent not go into [all forms of] abuse, so- business, and how [they are] to be structure [for data protection]. cial media, or freedom of speech. regulated by the ministries. E How do you perceive the establish- E This sounds as if victims of online E What is your perception regarding ment of a new ministerial role, namely trolling in Lebanon might, for the time the readiness of Lebanese companies the Office of the Minister of State for being, still have to resort to the existing that do business online with European Information Technology and Investment, judicial means when seeking protection. customers? in this context of need for coordination As concerns the organizational section Any company that wants to deal on digital policies and processes? of the law, you say that the .lb issuance with European citizens, or do busi- I heard very good things about 33 ECONOMICS & POLICY March 2019 Q&A

this minister as being very com- E A fact finding tour? etc. I believe that this time, the state petent and trustworthy. [Ed: a first Exactly, a tour to study, have e- needs to be following the private meeting between MP Gemayel and government meetings, regulatory sector. We [in the state] must not be Minister Afiouni was arranged after meetings and all this. [Ed: the tour afraid to say that we are following Executive conducted this inter- had been conducted by the time of the private sector. The private sector view.] I hope that we will be able to publication.] should be the pioneer and lead us. cooperate with the new minister for We are there to support them. [information technology], in order E Without resorting to external ratings to organize this sector and move it of Lebanon’s digital readiness by think E In this context, it appeared from forward to achieve better expansion. tanks and organizations such as the recent conferences on the digital World Economic Forum, how do you ecosystem and cybersecurity, such as a E How is the situation, or need, in terms personally rate Lebanon for digital and Cybersecurity Day at the American Uni- of implementation decrees for Law 81? cybersecurity development when com- versity of Beirut, that Lebanese students Some issues need regulation by paring it to peers in the Middle East? are extremely eager to learn more skills the ministers, and some issues need Without having other criteria, in areas such as cybersecurity. Do you government decrees. This should all from a legal point of view I think agree? be set [soon]. Law 81 needs about we are very late. [Law 81] was the Of course. Cybersecurity is the 10 decrees, and we are pushing the first time that a law concerning IT future, not only for the state, but ministers. These decrees also for your personal digital iden- should have been im- “[Law 81] was the first tity. plemented [in January 2019], but since there time that a law concerning E Do you recommend any specific steps was no government [at IT and e-transactions was that the state should take under the the time when Law 81 voted into existence.” concept of following the private sector went into effect], we are in the areas of digital innovation and giving them a few weeks cybersecurity? Should the state, for ex- to organize themselves to start de- and e-transactions was voted into ample, devise new curricula for tertiary creeing what needs to be decreed. existence. It has been a first step, but education on cybersecurity? other countries are very advanced in No, but I believe that much E You serve as head of Parliament’s IT com- this. I also believe that we need to do should be done to make people from mittee. How do you see the digital awareness a lot in the ecosystem, from educa- a very young age learn how to think of fellow members of Parliament? tion to evolving job descriptions for differently and orient themselves in The awareness is very good. This people to know from the beginning this area. It is also very important to is a domain that is very young, dy- that we need different jobs from the create jobs in this area. Awareness is namic, efficient, and that is evolv- traditional ones. We also need to very important. Digital is part of our ing very quickly. Of course there reach new markets, find new hori- daily life. It’s like learning how to are some colleagues among deputies zons, and new ways to integrate the drive a car—understand your limits. who are more aware than others, but values of Lebanon into companies In a similar way, you need to learn each is [aware] about a sector. Even within this [digital environment]. how to use the [digital] technology I have been thrown into dealing We are late. around you. You have to know the with this sector, and did not know limits that you have in this technol- all details about it, but I decided E Two years ago, Executive published an ogy and how to protect yourself. to take this into my hands. We are analysis by a legal expert on digital legal also making efforts to improve our frameworks in the region, and it indeed E Should the state take a leading role in knowledge of all relevant issues. For showed that Lebanon was behind the re- education for digital, or should this digi- example, we are organizing a trip gional curve in legislation and adoption tal transformation be driven by private for all parliamentarians in the [IT] of policies for digital transformation as education providers? committee to Estonia, which is the well as in cybersecurity issues. Both have a role to play. The number one state for e-government, It is far behind, but I can add one ministries and the government have cybersecurity, etc. We will be going comment: Lebanon has always been to play a role, and the whole pub- there to discover this horizon and known for private initiatives and lic sector has to play a role, but it is take the necessary training to know personal initiatives in adopting new complementary. It is similar to how what to expect. technologies, evolving new sectors, creating awareness of child abuse 34 executive-magazine.com 35 ECONOMICS & POLICY March 2019 Q&A

problems is part public and part are today, but I think that we shall E May I ask how you personally first private responsibility—it is part of be able to find a solution very soon. became involved with the issue of digital schools, cultural clubs, families. It is Also, let me tell you about another in- empowerment, and what made you as- about everybody. novation that we [in the IT commit- pire to become the chair of the IT com- tee] are working on: I am proposing a mittee in the current Parliament? E For the interaction with the government law on companies in technology that I have always been interested in today, are there special contact points at will be favorable for entrepreneurship IT and technology issues and digital Parliament for the private sector, where and startup companies in the digital identity. In the last Parliament, I was companies can relate to the IT commit- ecosystem. This law aims to provide a member of this committee that, at tee? simplified [processes] and quick reg- that time, was chaired by my col- Of course, I am open to every- istration, where we will waive many league, [Tripoli MP] Samer Saadeh. body, and I’m talking with all the sec- [requirements] for young companies So when Samer lost the election tors. Our committee engages on edu- in order for entrepreneurs to be able [last May], I proposed to become cation, with the Ministry of Telecoms, to start new tech companies and take the chairman of the IT committee. I with IT companies, with the clusters, them forward very quickly. nominated myself because I believe with everybody. We are trying to talk this sector is the future, where a lot to everybody and be part of [answer- E Would this also involve smoothing of needs to be done, and where I have ing] their needs and requirements. access for young tech companies to the a lot to give. Electronic Trading Platform, or ETP, once E How are you dealing with specific this entity is established? E When you gave a speech on Law 81 situations involving state contracts and The issue is completely different. and your perspectives on the chal- work on issues such digitization of the [The new legal proposal] is for com- lenges for politicians in the digital era cadaster? panies that seek to be incorporated in at the end of January, you referred in We have yet to start on this issue, an easy and light process. That is what the conclusion of your speech to issues which goes into the development of we are doing. If these companies later of leadership and influencing—specifi- e-government. This issue requires want to join the ETP or evolve onto cally the dilemma of whether politicians many strategic decisions, for exam- the Beirut Stock Exchange or some- will resort to following the demands ple, who will own the data and what where else, they are free to do what and pressures exerted on digital social will be the [ID] number that you use they want, but [this law will be there networks, or if the networks should to identify yourself? Will it be a num- to help them] if they are young start- follow the politicians and their leader- ber [given to citizens] by the interior ups and want to go forward. ship. Would you elaborate on how you ministry, the finance ministry, or any perceive this issue and what you see other ministry? We need to define E It has been a request from partici- as the appropriate paradigm for digital this [ownership of data] first, and this pants in the entrepreneurship and tech political behaviors? has been a big debate; the ministries startup ecosystem to have simpler I believe that, today, big data is still do not accept to share their data incorporation requirements for startups. corrupting our mindset and is also among each other. If you do not or- Is your new law proposal addressing this corrupting the way we see things ganize this today, especially between issue then? in society. It probably is also cor- the Ministry of Finance and the Min- Exactly. This [sort of complex rupting the values we have. I believe istry of Interior [and Municipalities], requirement] is what we are going that, while [digital influences] can you will not be able to go forward. to waive. We are helping the [start- corrupt, we should not lose our val- This is because you need the per- ups] do things. We know very well ues, our credibility, and our identi- sonal, individual [data]—name, fam- that perhaps two of 10 startups will ties, or the human way of thinking. ily name, and date of birth—as well fly. For the rest, we are facilitating Data should help [politicians in as the financial information, and the bankruptcy or shutdown, and making decisions] but it should not the data from the Ministry of Jus- in case that they are flying alone, we be [directing] our decisions instead tice, which owns the cadaster. It is will facilitate their registration so of ourselves. I am pro-technology a management of three [ministerial that they can get integrated into the and pro-evolving, but I also believe stakeholders], of whom each consid- ecosystem. I hope that this law that that humans still need to [stay in ers themselves to own the data and we are preparing will help a lot in charge]. There are many stories about wants to preserve it [at their minis- this way. It is a new law that I have things like dataism and the danger of try] without sharing it with anybody. not proposed yet, but plan to launch data today. We cannot control it, but This is problematic. It is where we in the near future. It is being drafted. we need to contain it. 36 executive-magazine.com Ad 14 Executive (20x27).pdf 1 2/12/19 3:34 PM

CMY

37 March 2019 BANKING & FINANCE Cybersecurity

By Thomas Schellen

The inexorable march of digitization Investing in cybersecurity companies

When it comes to predictions for this year, there are some prophe- cies that are practically risk-free, even outside the notion that the biggest risks of 2019 are not related to financial markets or even economic uncertainty. One such virtually risk- free prediction is that the digital transformation will continue. Another safe one is that Big Data and artificial intel- ligence (AI) will not wither. The list of safe predictions for as- piring cyber gurus goes on, simply because many upside and even more downside developments are beckon- ing from all spheres of the wide digital cosmos. E-government tools will help improve the efficiency of public sectors in countries that improve e-governance biggest risk will be the human being, but gence, and machine learning, as well as and digital identity facilitation. Cy- there will not be a worthwhile cyber fu- general corporate research and manu- bercriminals will use new attacks, and ture without humans. facturing for the cyber age, or cyber at- there will be spectacular and horrific What then is a non-geek enabled, tack and cyber defense preparedness? breaches. Some of the attacks by cy- or cyber-enhanced human being to do bercrime syndicates will IF YOU CAN’T BEAT THEM employ AI tools. The Digital futures will baffle Just over a century ago, when financial damages count wars were overwhelmingly matters from cybercrime will us beyond our expectations of human mass mobilization and de- be a multiple—a very and all predications will be ployments of ships, tanks, infantry, substantial multiple—of dwarfed by reality. and artillery, the patriotically minded investments into cyber- in the warring countries were asked defense by public and by their governments to invest in war private stakeholders (and this will by when one is faced with a digital future bonds. Similar financing tools for far not just be the case in Lebanon). but has ethical and technical barriers looming global conflicts in the digital Even scarier, new cyber terrorism in- against morphing herself or himself era have not been developed. Howev- cidents will happen and target infrastruc- into a master black-hat hacker, devious er, adapting the paradigm that “if you ture or IoT (Internet of Things) vulnera- digital snoop, or voracious cyber-pred- can’t beat ‘em, then you should join bilities. There will be an arms race toward ator? And what to do for someone, like ‘em” to digital transformation and building new cyberwarfare arsenals, an alert investor or an entrepreneurial the global financial markets environ- and in the daily life of humanity, plain whizz, who lives in a country that is lag- ment, even investors from the most old digital shit will happen—and prob- ging a felt 50 parsec (163 light-years, or digitally backward countries at least ably escalate to unprecedented calamities. more than 1,500 gazillion kilometers) can turn to developed stock markets Digital futures will baffle us beyond our behind its enemy state next door when for gobbling up slices of the digital expectations and all predictions will be it comes to creation of a competitive future and the prowess of listed cy- dwarfed by reality. In cybersecurity, the digital edge in robotics, artificial intelli- bersecurity companies. 38 executive-magazine.com 39 BANKING & FINANCE March 2019 Cybersecurity

Scanning the early 2019 results curity to big established names such as The economist (who confessed to season in the investment landscape for the security and networking stalwarts an infatuation with technical analysis, interesting narratives of cybersecurity Symantec and Cisco, market augurs despite his training as an academic stocks yields another confirmation that promote them as promising on account economist, during the evening’s pres- digital security is one big bed of where of being anything from small risky entation to investors) confirms that the future lies. Undertaking a non- plays with huge upside potentials to topics such as cybersecurity feature exhaustive or fully representative jour- good investment opportunities because within what the bank describes as the ney across February’s earnings news of of strong share price performances investment theme of digital disruption. companies with exclusive cybersecurity and/or gain potentials, earnings-per- However, his view is leaning to active focuses or significant involvements in share forecasts, or dividend outlooks. investing strategies and he would re- the area, Executive noted that compa- Prominent cybersecurity ETFs, frain from passive or static approaches nies tracked by exchange-traded funds such as ETFMG Prime Cyber Secu- when it comes to the sector. “We advise (ETFs) made quite a splash. According rity Fund (known as Hack) and First using active investing on those topics,” to Seeking Alpha, an online financial Trust NASDAQ Cybersecurity ETF Gattiker says. “These [digital disruption publication, Fireeye—a cybersecurity (CIBR) in the first two months reflect- and cybersecurity topics] are highly accompany that was listed in 2013 and ed the good share price performances tive themes and many of these markets has a multi-year track record of rapid of stocks in their portfolios. Although are winner-take-all markets. Thus, if growth—achieved a 10 percent year- both ETFs experienced a three-month there is any shakeout in the industry, on-year increase in its billings in Q4 of slump in Q4 of last year, 2018 and exceeded analyst expectations. according to Bloomberg Similarly, Fortinet, a cybersecurity com- data CIBR at the end of Many analysts judge pany that, like Fireeye, is included in a February 2019 showed a cybersecurity ETFs as having pioneering cybersecurity ETF, achieved return of 21.2 percent for characteristics that justify a 22 percent increase in fourth-quarter the year to date (ytd) and minimal exposure. 2018 billings and topped Wall Street ex- a one-year return of 13.7 pectations according to a report by Dow percent. Its three-year re- Jones’ MarketWatch. turn was 21.1 percent. Also according you lose as an investor if you hold all of In mid-February 2019, the stock of to Bloomberg, Hack achieved an ytd re- [the involved stocks] because you win Israeli cybersecurity outfit CyberArk turn of 19.3 percent at the end of Febru- on one stock and lose on eleven others.” Software rallied as Q4 2018 earnings ary and had one and three-year returns According to the Swiss banker, and profits greatly exceeded expecta- of 17.2 and 22.4 percent, respectively. investors parsing cybersecurity stocks tions. Akamai, a company with exper- However, such fleeting observa- should thus make their own deci- tise in networks, cloud computing, and tions should not be read as suggestions sions instead of buying into a themed cybersecurity, for Q4, 2018 delivered 8 that individual investors and especially ETF. He advises further that inves- percent year-on-year earnings growth retail investors would be in for smooth tors should rely on analysts who have that was driven largely by a 36 percent rides to high returns by allocating large a good track record in calling these year-on-year revenue growth in its portions of their personal to passive markets and that investors also should cloud security unit. funds with cybersecurity themes. For be nimble as to shift exposure if they And if you want to take a guess the moment, many analysts judge cy- sense any surprising change in the at what cybersecurity company Palo bersecurity ETFs as having characteris- markets for these stocks when one Alto Networks announced to investors tics that justify minimal exposure even winning cyber solution starts to rise at in the last days of February: Yup, Palo as the overall theme of cybersecurity the expense of its competitors. Alto’s revenue was up 30 percent year- might be perceived as a very attractive But in the sum of what Gattiker on-year in its fiscal Q2 2019 results road to financial participation in the perceives as the biggest race there is in and the numbers were above analysts’ world’s digital transitions. terms of companies competing for the predictions, while the stock rose over 8 Executive asked Christian Gat- crown of digital dominance, and one percent to an unprecedented high. tiker, chief strategist and global head where the final outcome might not be of research at Swiss bank Julius Baer, determined for up to 10 years, he con- DIGITAL DISRUPTION about his views on digital themes, cy- cludes, “Digital disruption is a big topic All aforementioned stocks are on bersecurity stocks, and related ETFs for and digitalized healthcare is another the portfolio lists of at least one cyber- international investors at the end of last one. These are big structural themes security-themed ETF. Further on, from month when he came to Beirut for a that can be of advantage to investors, lesser known niche players in cyberse- presentation to the bank’s local clients. but in very specific companies.” 40 executive-magazine.com CREATIVE IS GOOD. CREATIVITY PAIRED WITH RELEVANCE IS GREAT. We present to you our new advertising tools, assuring the relevance of your digital out of home campaigns based on the following triggers:

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Pikasso Executive 20x27.indd 1 6/18/18 11:32 AM BANKING & FINANCE March 2019 Alternative payments

By Olga Habre

Toward a cashless society Lebanon’s alternative payment solutions

Banking, like many other industries, is steadily moving toward digitization to accommodate changing lifestyles. People now need solutions to banking challenges that did not previ- ously exist. With busy schedules, more travel, a surge in e-commerce, and a plethora of innovations that are spur- ring a global shift, the growing tech- native generation is increasingly asking to conduct their finances and spending on their own terms, and is moving away from using physical cash and toward have drawbacks or raise questions: from Experimenting with offerings is one of alternative payment solutions that bet- money laundering, tax evasion, and pri- the few ways to find out what works, but ter suit their lives. In order to retain vacy concerns, to overspending (linked the downside is the hefty investment of clients, traditional banks are feeling to cashless transactions), as well as what time and funds that go into such R&D. the pressure to address an onslaught of this shift could mean for the unbanked, The use of relatively affordable offerings disruptions from within and outside the estimated to be almost 2 billion people like rented cloud space and Software as industry. Even older generations and worldwide. a Service has eased the cost of testing those not necessarily asking for cash- new financial products for many banks. less alternatives are finding themselves GETTING WITH THE TIMES Ultimately these often-bureaucratic in- nudged into using fintech. Lebanon’s current alternative pay- stitutions must demonstrate sufficient As cash sees itself out, alternative ment offerings should be examined in agility and consistently offer solutions payment solutions are becoming more the context of the global digital revo- that meet the new needs of clients in or- mainstream. They include products like lution, a time of adjustment for many der to survive (see Q&A with Credit Li- physical debit/credit cards; mobile pay- sectors. Among the main woes of digiti- banais Deputy General Manager Randa ment systems and digital wallets issued zation are security concerns. The Leba- Bdeir on page 46). by banks; payment applications, such as nese government is said to be taking Paypal (which does not operate in Leba- steps toward cyber security legislation CATERING TO NEW LIFESTYLES non), and local varieties like PinPay; as (see Q&A with Minister of State for In- Banks in Lebanon are focusing well as other electronic banking plat- formation Technology and Investment on the user experience, adapting their forms for payment, transfers, and more Adel Afiouni on page 28). The much products and services to a growing autonomous management of banking talked about digital signature law came population of connected, tech-savvy needs. Cryptocurrencies, for all their into effect in Janurary, and once fully multitaskers that need convenience, controversy, are growing in popularity implemented it should boost online speed, and security. BLOM Bank Depu- abroad as a payment alternative too, but banking and transactions, among other ty General Manager Jocelyne Chahwan are not yet in use in Lebanon. Bank du things (see interview with Nadim Ge- explains their strategy: “The rise of Liban (BDL), Lebanon’s central bank, mayel page 32). These actions will pave advanced technologies and new regu- has been vocal about their imminence, the way for further development in the lations have led [the bank] to provide announcing in 2017 that it would payment solutions landscape. a better customer experience and en- launch its own digital currency. A certain number of failures is in- hance the security level of all innovative A cashless society has its benefits, evitable in any new venture, and there payment solutions offered, thus offering many experts Executive spoke with have been alternative payment solu- seamless experience to clients.” agree, but that is not to say it does not tions that have flopped over the years. One of the more traditional solu- 42 executive-magazine.com Held under the auspices of

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2576 Executive LIOG 200x270mm.indd 1 23/01/2018 13:43 BANKING & FINANCE March 2019 Alternative payments

tions, the card, has come a long way. are also allowing us to be ready to offer make payments for tuitions and wed- There are even blockchain credit cards new types of mobile payment, such as ding registry, and will soon be enabled available in some markets—an alterna- Apple Pay, when it becomes available with payment options for taxes and tive that could help merchants foot the for our market.” On the other hand, donations. “We have a very clear road- bill of high processing fees but comes BLOM Bank is enabling this disrup- map that will transform our business with a slew of its own disadvantages. tion, partnering with General Security and solutions in the next three years,” Traditional cards are gaining in popu- in 2017 to equip its centers with BLOM BLF Director of Marketing and Retail larity, however. According to 2018 sta- POS machines. Ronald Zirka adds, citing the enact- tistics from BDL, 2.78 million cards Chahwan says BLOM is currently ing of the digital signature law and the were issued in Lebanon, a rise from 2.63 negotiating future partnerships with inclusion of Lebanon in the list of oil million in 2017. These include prepaid, international players Apple Pay and producing countries as key events that debit, and credit cards, and range from Samsung Pay, but points out that this could propel the sector. specialized options for use online, to depends on their appetite to enter the Despite digital financial products cards born of partnerships among banks Lebanese market. Neither is available fast becoming integral parts of daily life, and merchants, as well as options with a locally because of these companies’ deci- there are still barriers to growth for al- variety of loyalty schemes. sions not to enter Lebanon. ternative payment solutions in Lebanon. Byblos Bank’s Head of Group Cards, Byblos Bank is planning to expand Wehbe credits payment service provid- Accounts, and Bancassurance Products the mobile payment options on Byblo- ers Visa and Mastercard for “assisting Georges Fares explains that they are sPay, also making it avail- constantly developing payment solution able to debit cardholders by options, and boast a wide range of debit April, thanks to enhanced There are still and credit cards in different currencies. security measures which barriers to growth for “These cards are divided according to ensure cards are used on- alternative payment specific segments, and in a way that ca- line safely. They are also solutions in Lebanon. ters to the evolving needs of [the bank’s] working on offering e- clients,” he says. commerce solutions, in- Many banks have rolled out mo- cluding payment gateways, to local busi- the market in this shift by imposing bile payment solutions where cards are nesses through partnerships with local mandates on licensed banks to adopt stored digitally on mobile apps, allowing processors. new advanced technologies in electronic users to pay with their Android mobile While millenials are the ones driv- payments.” But despite this support, the devices at points of sale (POS). Banque ing the digital revolution across sectors, speed with which the local market can Libano-Française (BLF) will soon be in- and many banking products are geared move forward with the development of troducing its mobile payment solution toward them and the younger Genera- these options heavily depends on how so customers can make payments mo- tion Z, it is their parents and grandpar- quickly and efficiently public sector bile app, says Myrna Wehbe, BLF’s di- ents that still retain much of the world’s stakeholders resolve existing digitization rector of cards services. Byblos Bank and wealth. A common reluctance to adapt challenges, specifically those related to BLOM Bank have integrated Visa Token to technology makes it necessary for security. It is then up to banks to con- Service (VTS) technology into their mo- banks to coax these clients into newer tinue their efforts in bettering payment bile apps. Chahwan reveals that by the products and services. enabling infrastructure, amping con- end of April 2019 all the payment cards venience, increasing awareness of the issued by BLOM bank will be equipped A CASHLESS FUTURE benefits of various payment solutions to with the EMV chip for a higher level of The currently available assortment consumers and merchants, and further security and contactless technology. of alternative payment offerings falls in improving incentives. The relationships between banks line with a wider trend of fintech de- The experts interviewed for this and merchants is developing as payment velopments in the country, including article point out that with all the tech- options increase. Fares says the launch those spearheaded by startups, as well as nological innovations aiming to reduce of their ByblosPay app has encouraged banking digitization initiatives like the cash usage, the Lebanese are still heavily merchants to install accompanying opening of more and more Interactive dependent on cash. Even so, there is a contactless technology at POS. “Such Teller Machines (ITMs) and e-branches. growing shift in client habits and busi- technological advancements constitute BLF’s Wehbe explains that part of their ness culture toward digitization that is business disruptions that are gearing digitization has included transforming putting Lebanon on track to becoming Lebanese banks more and more toward ATMs into multiple services teller ma- a cashless society—time will tell if this mobile payments,” Fares explains. “They chines that let customers make deposits, happens at leapfrog or snail speed. 44 executive-magazine.com sdesummit.com ST EDITION

The Sustainable Digital Ecosystem Summit: A firm step in the right direction

Does Lebanon have what it takes to Chairman of UK-Lebanon Tech Hub, Dr. Fouad Mrad; Senior Program Manager of Frontier Technologies at ESCWA, and Dr. Ayman Kayssi; take a leap into the fourth industrial Associate Dean at the Faculty of Engineering and Architecture, AUB. revolution? What is being done The summit witnessed several announcements and initiatives by to develop the country’s digital government representatives and other stakeholders. ecosystem? H.E. Mr. Jamal Jarrah, Former Minister of Telecommunications, who represented H.E. Mr. Saad Hariri, said: “We are working now on a national data center and we are on the look-out for a partner in the Amid the tech hype that Lebanon has been private sector; which will help us boost the digital economy”. witnessing, digital transformation proves to H.E. Dr. Inaya Ezzedine, Former Minister of State for Administrative be more than just another buzz word; but Reform, addressed the state of smart and e-Government and focused rather a prerequisite to the economy and on its impact on public efficiency, transparency, and productivity. While businesses of tomorrow. Ms. Yasmina El Khoury Raphael, Head of Business Environment and In the quest of exploring the status of digital Innovation, Presidency of the Council of Ministers, shed light on newly transformation in Lebanon and driving established initiatives like the Lebanese Internet Governance Forum positive change across multi sectors, IFP which aims to improve the business environment. Group (International Fairs and Promotions) Dr. Makram Bou Nassar, Executive Director, Head of Payment organized the first Sustainable Digital Systems Department at Banque Du Liban, revealed that the Ecosystem Summit (SDE Summit) from “Government Payment System” is expected to go live in the coming 22 to 24 January 2019 at the MEA Training few months. He also said the Central Bank is working on cheque & Conferences Center in Beirut. imaging solutions, as well as the necessary circulars to facilitate the Held under the patronage of H.E. Mr. Saad implementation of the electronic transactions law Number 81 that was Hariri, with the support of UN-ESCWA ratified by the Lebanese Parliament in September 2018. and UNESCO, the SDE Summit provided Mr. Imad Kreidieh, DG & Chairman of Ogero shared plans for the new a platform for leading organizations and Lebanese Cybersecurity Centre and Digital Strategies for Lebanon. experts from the public, private, and educational sectors to delve into the Beyond scratching the surface of the multi-layered technological current trends that are disrupting the digital landscape, the summit prompted legislators, industry experts, and ecosystem and derive a roadmap for the academics to come up with an action plan to be presented to future. executive authorities as the next step towards tangible development.

The summit’s high-caliber advisory board The Sustainable Digital Ecosystem Summit was held in partnership comprised H.E. MP Sheikh Nadim Gemayel; with: General Electric; North Assurance; Yellow Pages Lebanon; Dar Chairman of the ICT Committee in the Al-Handasah; Middle East Airlines; UK-Lebanon Tech Hub; American Lebanese Parliament, H.E. MP Nicolas University of Beirut; Executive; and Barista; with the support of Sehnaoui; Former Minister of Telecom and UN-ESCWA and UNESCO. 45 BANKING & FINANCE March 2019 Q&A

By Olga Habre

Banking agility in the era of millenials Interview with Credit Libanais Deputy General Manager Randa Bdeir

ics, and technological innovation, E What kinds of new technologies are banks banks have to react and reinvent them- using today? selves. We cannot work the same way as There is a lot of new technology before—we have to look into new op- that banks have to take into consid- portunities and client needs, and try to eration. First of all, [there’s] the cloud help them and finance them. platform. Before, it was unaccepta- ble that anything not be done on the E How are their needs different from those bank’s platform and closed and se- of their parents and grandparents? cured, but not anymore. Now they put They are very different. Before, the platform on the cloud in a secure when [banks] used to lend to a com- way, and all the information is there. pany, we studied its activity, financials, This helps banks to move very quickly clients, and cashflow, in order to lend to and change and be agile. Agility is one it. When we look at a startup, it doesn’t of the main things that we need to have cashflow, robust financials, or his- speak about in this age. The most im- Randa Bdeir has spearheaded in- tory. [A startup] has an idea and [in- portant thing is to make products that novation at three key banks in Leba- vesting in] that idea is a little risky. At answer client needs, and their needs non since the early 1990s. The moth- the same time, it’s been proven around change by the minute, and [everyone er of four began working as a researcher the world that sometimes [startups can has different needs]. The bank has to on credit card payments at Banque du be] very successful. Maybe the bank create an infrastructure [that allows Liban (BDL), Lebanon’s central bank, should have an internal unit that deals it to be] agile—this, you cannot do and quickly became one of the few with startups, like a VC, in order to help internally. You cannot answer every women in a managerial position in the those [entrepreneurs]. Later, when they need through a system—buy it, im- banking sector at that time. As Credit become a regular company, they will plement it, make it secure—[because] Libanais’ new head of Electronic Pay- become a regular client of the bank. We that takes ages. So now everything is ment Solutions and Cards Technology, should accompany those people in their created on the cloud [space] of big Bdeir sat down with Executive to re- journey from early stages until they exit companies, with security and capacity, veal her vision for how the banking sec- because there will be a point where the [rented] to banks. When a bank wants tor can progress forward and share her bank will benefit, and it will be a win- to create products that answer the experiences in the industry. win relationship. It’s very important for evolving needs of the clients, they can a bank to reinvent itself, changing their [quickly] change—it’s much easier. E How has banking changed since you target segment and trying to cater to a Another technology that’s very im- started in the industry? new kind of client. portant is analytics. In order to under- Banks are facing a lot of competi- stand the needs of clients, banks have tion from outside, with [entities] like E What is the importance of digitization in to have a lot of analytics that look into Apple Pay and Google Pay trying to the banking sector? credit card figures. They can see that take business away. These challenges They should work on creating new you buy from Chanel or Zara, and they should be taken into consideration be- products in order to have better access know your lifestyle. Some people [use cause the demographics of our poten- to the consumer. We want to make the cards to] bet at casinos, or most of their tial clients is changing. Now, our new bank safer and more efficient—safer -be expenditure is at restaurants, or hotels clients are millennials, [many of them] cause, as long as digitization is increas- for frequent fliers. We need these ana- are launching startups, whereas before ing, the need for security is increasing. lytics to analyze the behavior of the cus- it was only [traditional] businessmen. If you want to digitize, you have to have tomer in order to prepare ourselves as a Because of these changing demograph- very strong [cyber]security. bank with the products that are in need 46 executive-magazine.com in the market. Another technology is E All this technology is a large investment gerial positions and not in innovation Big Data. Also, there is a lot of robot- of time and money for banks and sometimes and new technology. [As for working ics, automation of processes. We put payment technologies that look promising and raising a family] I had someone them in place in order to strengthen end up failing. How can banks ensure their at home to help me. But I believe that control [and reduce] human error. [For investments are worthwhile? women are multitaskers. I used to example] when a card is used in Paris, We are moving from one era to [have] help, but I had four children. I and at the same time in another place another. Before, it was the industrial was a role model for them. There are a within less than four hours, it will au- revolution, now it’s the tech revolution. lot of challenges to be a working moth- tomatically alert [the bank], [because] To move between eras we have to pass er, but they should be multitaskers to one of them is fraud. All this technol- through a period where [some things] manage themselves. I used to manage ogy is needed in order for the banks to don’t work, it’s tough. That’s why cloud myself. Other women in my society be agile, to better access the life of the platforms are good, and also software didn’t work, and the people around me customer and serve the customer. as a service (SaaS). Now banks are able thought I was crazy or unusual. They We are also moving into self ser- to try software with another company questioned why I was doing this to my- vice. [By] having a mobile app in the and give it to the client and monitor. self, but at the same time they looked hands of the client, we give them some When everything is [successful], then up to me. As for the men around me, mechanism to [have control]. [You they can buy the system, or [continue I’m known in the market [as] tough. can specify that cards stored on your using] SaaS. By using SaaS and cloud, That’s why they respect me now. At the mobile] can’t be used in casinos, or it’s less of an investment for the banks, time I started I used to go to merchants at ATMs—if you know you don’t use and it [gives them] agility. and tell them I want to put an electronic them there. If your card is stolen, you But here comes the don’t have to call [a call center] to stop challenge: regulators. The “[Banks] have to reinvent the card. You can just go to your mo- good thing about Lebanon’s bile app and refuse authorization in central bank is that they’re [themselves] through digitization one minute. These apps are available trying to be agile and are in order to smoothen the customer in the market, and each bank is do- quite progressive. There is experience and enhance it.” ing their own. What I’m trying to say some technology that can’t is the bank [cannot be] rigid. It should be used [in Lebanon]. Ap- follow you and your needs. While you ple Pay and Google Pay [doesn’t work machine to accept cards, but they used travel, if [your cards] are lost or stolen, here] because these companies [haven’t to be happy to see a girl [and ask me you wouldn’t want to call Lebanon only decided to enter] Lebanon. questions] and [did] not take me seri- to find that somebody is sleeping and ously. Now they take me very seriously. doesn’t answer. This is all [happening] E If there is a new technology that exists through digitization. somewhere in the world, and a bank wants to E What do you think of the current state of Something else, we should always use it, what is the procedure to bring it here? working women in Lebanon? be very transparent with clients, and I was the one who introduced cred- Because I believe in women, and I tell them everything in order to give it cards to Lebanon and [many] innova- believe in a support system for women, them the [power] to decide. [We] let tions were done by me. At Fransabank, I launched the Randa Bdeir Award at the clients determine their own needs, Audi, and now [at Credit Libanais]. AUB. It is given every year to a person and we are open and clear about eve- What I used to do when there was a who supports a woman to achieve— rything. Digitization enhances the new technology, I would go to Mas- not for women who achieve, but for customer experience. Building an agile tercard or Visa and ask them to do a those who support them. I don’t think platform is a must for [any] bank to be pilot for me. With their help, we would there is a support system for women able to answer the needs of customer create a pilot and [get it to] work, and [in Lebanon]. They are ok with wom- and smoothen their experience. the central bank would come and say en [working], but when a woman be- My message is that banks have a ‘What are you doing,’ and BDL would gins to achieve, there’s a glass ceiling. changing environment and [market] [then] deal with Mastercard or Visa. You don’t see any CEOs of banks that segment. They have to reinvent [them- are women. This year, they began with selves] through digitization in order to E Going back to your life story, as a woman [more women-led] ministries, [and smoothen the customer experience and at the forefront of banking, did you find it dif- other politicians]. Half [of Lebanon’s] enhance it, and at the same time, they ficult back when you started? Was it difficult ministers should be women, because have to build a technology platform also raising a family? women are efficient. Women could [that enables them] to be agile and At the time there were women clean out our government [from cor- work quickly to answer client needs. working in banking, but not in mana- ruption]. It is beginning. 47 BANKING & FINANCE March 2019 Comment

By Thomas Coughlin

Digitizing gold Creating a price-stable cryptocurrency

It has been a tumultuous time In light of increasing political nificant part of the Middle Eastern for cryptocurrency investors and feuds and trade wars hitting econo- culture for centuries. It holds deep advocates alike who have watched mies around the world, gold has economic and cultural relevance the market value of the industry seen a surge of interest. Global gold in these nations even today, main- drastically drop in the past year. purchasing in 2018 was 74 percent taining its status over time as the However, some optimism is growing higher than in the year before, with most effective store of value. The in the space as committed developers central banks gold-buying hitting a UAE and Saudi Arabia are listed re- and blockchain advocates shun the half-century high. Physically, gold spectively as the fourth and seventh daily obsession over price changes. does not corrode nor shift in shape largest gold jewelry consumers in The highly speculative nature of the despite changes in temperature, loca- the world, according to the GFMS crypto-market leads to price fluctua- tion, and time. Even after thousands gold survey for 2018. The Middle tions, which can be very taxing on in- of years, gold remains pure and free East is also gradually embracing vestors. To break free from this insta- from external elements, which allows blockchain and cryptocurrencies, bility, industry professionals are now for immediate processing, if needed. with Dubai setting a goal of secur- looking into using blockchain to cre- As a currency, these traits provide a ing all government documents on ate a stablecoin as an optimal digital sense of confidence that the value will blockchain by 2020, and Iran last currency that would have the follow- be preserved. year announcing it is developing its ing characteristics: price stability, scal- This potential of innovative block- own digital money. ability, privacy, and decentralization. chain technology has attracted the attention of many industry experts. PROVIDING STABILITY THE VALUE OF GOLD The institutional gold exchange, the By introducing a stablecoin with A useful currency should be an effi- Allocated Bullion Exchange (ABX), is a 1:1 allocation to gold, a digital cur- cient medium of exchange, a unit of ac- leading innovation into how gold can rency like Kinesis Money can provide count, and a stable store of value; digital be used as an international currency. the stability and liquidity required currencies excel at the first, but fail as Real, physical gold ownership is be- in the crypto space. Each stablecoin a store of value or unit of account. A ing digitized with ownership securely minted would represent a physi- currency cannot be an effective store of recorded on blockchain technology, cal bar of gold/silver secured safely value if its price fluctuates by 20 percent so that physical gold and silver can in vaults around the world, subject on an average day. This is where stable- be spent just as easily as fiat money, to stringent third-party audit and coins come in. Stablecoins are price- in the same way that banknotes used quality assurance processes. Not stable digital currencies, meaning their to be IOUs for gold. Incentivising use only will this assure investors of the market price is pegged to the value of and adoption through a recurring in- stable value of their investments, it an underlying asset, such as precious come delivered via a unique yield sys- would also allow them to request metal or fiat currency like the US dol- tem, which works in the same way as the exact value in precious metals lar. By pegging their value to real-world a bank deposit, incentivises use and when physically needed. This will assets, stablecoins promise price stabil- prevents hoarding behaviors. This usher in a new era of stability to the ity that can bring digital currencies into system combines new world-decen- crypto market, ensuring they are the mainstream, making the stablecoin tralized technology with the oldest, well on their way to achieving their the Holy Grail of the crypto ecosys- fairest, and most sustainable form of ultimate goal—the development of tem. However, with fiat currencies money, gold. a decentralized and internationally experiencing their own fair share of Throughout history, people usable replacement to the current volatility, the historically stable na- have been fascinated by gold; it fiat-based monetary system. ture of gold is looking increasingly has been valued by civilizations Thomas Coughlin is CEO of Kinesis Money and attractive to investors. across the globe and has been a sig- ABX, Allocated Bullion Exchange. 48 executive-magazine.com 49 March 2019 SPECIAL REPORT Overview Women’s empowerment By Nabila Rahhal CAUGHT BETWEEN HOME AND THE OFFICE

Challenges and the way forward for Lebanese working moms

A typical week-day in the life of a woman chores or work, spending some quality time with with a career and children looks something like her husband, or doing things that interest her—and this: She gets out of bed at 6 a.m. to get her chil- the next day she gets up to repeat it all again. dren ready for their day, then goes to work for at Although working women share the economic least nine hours (often working through her lunch responsibilities of the household with their part- break) before picking up her children from daycare ners—or as single working moms, or with a part- or their grandparents and being fully engaged with ner who is unable or unwilling to contribute, take them and their needs until they sleep at 8 p.m. She on the responsibility alone—societal norms still then spends the remaining few hours before go- dictate they are the main caregivers of their chil- ing to bed either catching up on small household dren and the ones in charge of household affairs. 50 executive-magazine.com According to the World Economic Forum’s (WEF) Both these challenges are clearly at work among Global Gender Gap Report 2018, women tend to the women Executive talked to in this report. Some perform the majority of unpaid tasks—defined by of the Syrian women working at Anamel, an NGO the report as mainly housework and household that works with Syrian refugees, told Executive that care. In 29 of the 149 countries included in the they are only working because they need to support report, women spend twice as much time on such their family and would stop doing so if they were fi- activities than men. In Lebanon, a 2018 qualitative nancially secure; in their perspective, their main role assessment conducted by the World Bank revealed is to be at home with their children (see article page that 70 percent of those surveyed said that the wife 62). One of the Lebanese women Executive pro- was responsible for domestic duties. filed, meanwhile, says her mother still criticizes her While the birth of a child is a joyous moment in for not giving enough time to her children because of a woman’s life, for women who work, it also comes her work (see profiles article page 54). with the worry of how to manage everything once If taken from the perspective of the investment their brief maternity leave ends. in education versus the outcome in productivity, then the economy suffers because there are not RETURN ON INVESTMENT enough educated women in the workforce. “The This dual role that women play once they be- economy needs women’s contributions, since half come mothers has restricted their ability to build of the population and the majority of university and sustain a career. Although more women are grads are women,” says Nada Genadry, human re- acquiring a university education than in previous sources director at Liban Post. “It would be a pity to decades—a 2013 report published by the Collective have so much payment done on educating women for Research and Training on Development-Action for no return to the economy in comparison with (CRTD.A) indicates that roughly 51 percent of uni- the investment.” versity graduates in Lebanon are women—not all of them are utilizing this degree to get a job. The WOMEN ON TOP same report admits there is little national informa- Childcare responsibilities are also one of the tion on the participation of Lebanese women in the obstacles in the way of women reaching senior po- formal economy but says that various studies place sitions. The WEF’s Gender Gap reports that only 34 it between 21 percent—which is the average for the percent of global managers are women. Lebanon is Arab world—and 27 percent. Moreover, the report one of five countries worldwide where the gender indicates that women are most likely to drop out of gap for managerial positions is at 90 percent. the labor force at childbearing years and beyond. While there are several factors at play for this, According to the World Bank survey, one of the responsibility of childcare being placed largely the major challenges for Lebanese women to en- on women is a major factor. Speaking from her ter and remain in the labor market is their home own research on the topic and from her experience responsibilities, which include taking care of chil- as a working mother, Eve- dren and elderly relatives. The other challenge is Lebanon is one of line Hitti, chairperson of the societal pressure exhibited in the attitude of the department of emergency community toward working mothers, and the five countries worldwide medicine and deputy chief mentality that a woman’s place is at home with her where the gender gap medical officer at American children. “We hear this time and again that there for managerial positions University of Beirut Medical is pressure [on women] to be at home and take Center (AUBMC), says that care of the children, and it is the man’s respon- is at 90 percent. we need to change the way sibility to be the breadwinner,” says Frida Khan, we look at childcare if we gender specialist at the International Labor Or- want women to grow in their careers. “After my ex- ganization. “Definitely, there is pressure for this, perience, it became very clear: You can fix so much, and I’ve seen a lot of research, generally from the but at the end of the day, if a woman is drowning region, talking about cultural issues being a re- between work at home and work at work, some- straint in women’s participation in the workforce, thing has to give. This concept that we [women] are especially after having children.” superheroes that can take 40 hours work weeks and 51 SPECIAL REPORT March 2019 Overview Women’s empowerment

mended by the ILO convention. All of the companies Executive spoke to for this article agree that the maternity leave in Lebanon is too short. “I believe that maternity leave should be 90 days,” says Yara el-Ali, head of human resources at ABC. “Because if you take the normal evolution of babies, at three months old they would be more developed and could then be left at a nursery or with their parents.” What Khan says is lacking from the Lebanese labor law, but found in the laws of neighboring countries, such as Jordan or Syria, is a woman’s right for an unpaid leave following her maternity leave—without the risk of losing her job. While this is not part of the law in Lebanon, some companies Executive spoke to say they do make exceptions if needed. “Maternity leave is 70 days, but if a mother wants to take more days, we give her the choice of put the same time at home is not going to work for unpaid leave,” Nayiri Manoukian, head of human anybody,” Hitti says. “I am not belittling the obsta- resources at Bank Audi, says. cles at work and glass ceilings and all that—there is still more that organizations do [in that regard]— THE BIG DILEMMA but I think that even if you fix all this stuff but don’t One of the main thoughts on a woman’s mind change the way you look at childcare, and you don’t while she is on her maternity leave is what to do see it as a shared responsibility between the par- in terms of childcare once she goes back to work. ents and not just the job of one person, namely the While in Lebanon reliance on family members, mother, I don’t think we will ever be able to close especially the child’s grandmother, for childcare that gap.” is common—all the mothers Executive spoke to Genadry believes that it is the private sector say this is what they did (see article page 54)—this and corporations that can jumpstart this mindset of is not always an option. “The first problem she’ll childcare as a shared responsibility. “The theme of face is who will take care of the child,” Khan says. working women should be enlarged,” Genadry says. “Before there used to be large extended families, “It is time for us in Lebanon to think about educat- and there was always a family member or another ing men and women to share household chores, and woman to take care of the child, but as we go more I think we should rely on companies to do that. Even and more into nuclear families that’s not the case women need to be educated because they have dif- any m ore .” ficulty delegating what they do, thinking that it is For mothers who do not have the luxury of their responsibility, while in fact it is parenting.” having family help with childcare, options in Leba- In January 2018, Lebanese labor law allowed for non are limited. While Hana Jojou, president of the a three-day paternity leave, a move which the ILO’s syndicate of nurseries and daycare owners in Leba- Khan sees as positive—despite the absurdly short non, says daycares are allowed by law to enroll chil- length of the leave—because it kick starts the con- dren at the age of 70 days, her own nursery, Dent versation regarding the role of fathers in parenting. De Lait, takes children in only when they can walk. “Very few daycares accept children at [70 days] be- THE SHORT LEAVE cause of the risks at that age—the average age they For the time being, parenting is still viewed accept children is at four months,” she says. “Par- as mainly the mother’s domain and so, if women ents have to be very careful in selecting daycares for are to be active contributors to the economy after their newborns, and it is better to leave them with childbirth, then they need support to do so. This nurses in that case.” support often starts with maternity leave which, Khan says Jordanian law mandates that if a in Lebanon, was extended to 70 days in April 2014. company has 20 or more mothers with children, Khan says that while the extension is commendable, then it is the employer’s duty to provide an onsite it still falls short of the 14-week leave that is recom- childcare facility for them; in Lebanon this is still 52 executive-magazine.com in discussion among private sector players. “Based THE POWER OF FLEXIBILITY on our work, we know that the conversation regard- Women need flexibility in their work environ- ing onsite childcare facilities is increasing,” says Zeina ment to manage raising a child at the same time as Mhaidly, program manager at the Lebanese League pursuing their career. “Usually, the difficulty women for Women in Business (LLWB). “One of the main face is in the time where they have small children and concerns voiced by companies regarding this is that it are stretched. Basically what they need most in that is a big responsibility, and they would need to train or period is flexibility in time,” Genadry says. hire staff for that. The extra cost was also a concern, The representatives of all the companies Execu- and they said it would need a feasibility study.” tive spoke to say they have introduced a “flex-hour,” Ali says ABC has made an onsite daycare fa- meaning employees can come to and leave work an cility its second priority for 2020, as part of their hour early. This is mainly used to escape traffic, but it internal corporate social responsibility goals. “The can also be used by parents to maximize time spent problem is that there is a high level of responsibil- with their children. Sa- ity, and also we have three flagships which are geo- mar Diab, head of human graphically diversified, so it’s hard to find a good When a woman resources at the Ameri- central location for one daycare,” says Ali. “We also returns to work after can University of Beirut have to do the financial study on how much it will her maternity leave, she (AUB), says that they impact us. But there is a huge benefit because day- is often still lactating have recently coordinat- cares these days are very costly, and also it gives the ed with the workers and mother peace of mind that her child is close by and and therefore needs staff syndicate at AUB to in an environment she trusts.” workplace provisions to implement an alternative Some mothers who do not have the option of pump her breast milk. to the 8 a.m. to 5 p.m. family childcare either hire a babysitter—though working schedule. In these are still in relatively short supply in Lebanon certain cases employees (see article page 70)—or leave their child with their are allowed to come to work at 7:30 a.m. and leave at domestic worker. 4:30 p.m. “Employees from several departments have asked for this as it helps them with commute, as well A MOTHER’S MILK as those who have children and want to get back in When a woman returns to work after her ma- time to help them with homework,” she says. ternity leave, she is often still lactating and there- Liban Post recently introduced part-time work, fore needs workplace provisions to pump her but Genadry admits that the response has not been breast milk. very favorable because it can come with reduced pay Khan says that Jordan’s labor law allows for and benefits. Those who do use it are usually students. two half-hour breastfeeding breaks for mothers Work from home, or a condensed work week are who have returned to work after maternity leave still not viable options in Lebanon. “You need to have but says she has seen nothing similar in the Leba- the right culture and have employees who are respon- nese labor law. LLWB’s Mhaidly says they worked sible enough to be granted this privilege. We are not with three pilot companies—LibanPost, Fattal, and yet there,” Genadry says. Teknika—to assess their policies when it comes to A woman who feels comfortable and trusted gender equality and found that having provisions within her work environment will produce more. for breast pumping is very much up to each com- “If you give this motivational flexibility it will defi- pany’s policies and initiative. nitely increase the engagement for working moms Genadry says Libanpost allows lactating moth- and show her that we appreciate her role as a mother, ers to leave work an hour early so they can breast which is as important as her job,” Ali says. “I can tell pump, as a mother’s milk is important for a baby’s you from my team, when I am flexible with them they development. Bank Audi has designated a breast feel motivated to give me more.” pumping room in its headquarters. “Since a lot While it may still be a while before Lebanese of mothers return from their maternity leave still women achieve the perfect balance between their needing to pump, instead of them using the bath- role as a parent and their career, the conversation is rooms, we have created a lactating room in a pri- underway, and there are signs that shifts in societal vate space, which is well equipped and clean for attitudes and steps taken by employers are heading breastfeeding mothers,” Manoukian says. in the right direction. 53 SPECIAL REPORT March 2019 Profiles Women’s empowerment By Nabila Rahhal

ALL IN A DAY’S WORK Profiles of Lebanese women who juggle a career and childcare

To paraphrase a popular saying: You cannot truly understand someone until you have walked a mile in their shoes. Even with all the research and theorizing on the plight of working moms, fully grasping the experience of raising children while maintaining a career requires actually living it, or the next best thing—truly listening to those who do. Executive spoke with working moms from different industries, at different career stages, and with children of varying ages, and asked them how they manage to do it all. While these mothers only represent a fraction of the working moms in Lebanon, we hope that there are enough shared experiences for our readers to identify with or learn from. What emerged from our conversations with these women is that all of them rely on their extended family for childcare. This is not surprising given the tight familial fabric that exists in Lebanon, but could also be a symptom of the lack of easily accessible and available childcare options, such as babysitters (for more see story page 70) or support from employers (see overview page 50). All of the moms Executive profiled also noted that their husbands share the responsibility of raising the children, perhaps an indicator that the traditional image of the Lebanese man who believes his wife’s place is at home with the kids is gradually changing. This is not to say that the women we spoke to do not feel that there is still a long way to go before working mothers can be as free to pursue their careers as their husbands are, but at least the conversation has started.

54 executive-magazine.com “I won’t lie to you that I don’t feel guilty sometimes, because I do, but I’m not one of those mothers who are control freaks and worry about their children all the time.”

MOTHERHOOD ON THE ROAD

Profession: Middle East video producer at UNHCR Children: A daughter, aged two

Dalal Mawad travels on average five to 10 days per and other responsibilities. This is why I’m able to do what month for her work, despite the fact that she has a two- I do, and he’s very supportive of what I do. We found a year-old daughter. “I’m not going to lie; I do miss out on system where we are both comfortable,” she says. moments [of my daughter growing up] because I’m not Speaking of being away from her daughter when she’s there, but it’s a choice I made, and I don’t see why a dad traveling, Mawad says: “It’s not easy, and I won’t lie to you can have a career, and a mom can’t,” Mawad says. She per- that I don’t feel guilty sometimes, because I do, but I’m sonally hates the term “working moms,” arguing it should not one of those mothers who are control freaks and wor- be a given that mothers work—just as it is given that fa- ry about their children all the time. When I’m at work, I thers work and are not labeled as working dads. focus on my work and I’m at ease because I know she is Mawad says she counts on family support when she in good hands. I check on her once a day in the evening is away for work. Her mother lives far from the family, when we Skype or FaceTime.” Mawad explains that her so Mawad relies on her mother-in-law to pick up her daughter has gotten used to this lifestyle because she has daughter from the nursery at 2 p.m. and care for her until been traveling since she was still breastfeeding. she (when in Lebanon) or her husband comes back from When Mawad is in Beirut, her schedule is much more work. “My daughter is very fond of her grandmother. flexible and she spends a lot of time with her daughter. “I try It’s been easy because I get along with her grandmother to leave the office early as we don’t have stringent hours,” she when it comes to [child] education and upbringing, so we says. “I see her in the morning and dress her up before her don’t clash. If we had clashed, it would have been much dad takes her to school. My job also allows me the flexibility harder. I feel very comfortable and at peace with myself of working from home, so on those days I pick her up from when I am away,” Mawad says. nursery and stay with her all afternoon. I kind of feel that I Her husband—who is self-employed but works long make it up for other days where I’m gone all the time.” hours—is also integral in taking care of his daughter Mawad says she hopes she is providing her daughter when Mawad is away. “He’s there for her bedtime rou- with the role model of a woman who is passionate about tines, and on the weekends he’s with her all the time. We both her career and her family, and with the example of a are very equal at home when it comes to child rearing father who is engaged in raising his family too. 55 SPECIAL REPORT March 2019 Profiles Women’s empowerment

“Adjusting to work at AUB was a big challenge, as was adjusting to negotiating the responsibilities at home as a result.” A TALE OF CHILDCARE IN TWO CITIES

Profession: Chairperson of the Department of three full nights a week, despite that being considered a Emergency Medicine and deputy chief medical officer tough schedule. at American University of Beirut Medical Center (AUBMC) When her children were aged one, four, and five, she Children: Two daughters, aged 14 and 15, and her husband decided to move back to Lebanon, and and a son, aged 10 she began working at AUBMC. “The big difference I felt in this transition is that, in Lebanon, there is more family Eveline Hitti’s three children were born in America. support, but my job changed a lot from the US to Leba- She had her first daughter during her second year of resi- non. In the US, I was working full time, but in a place dency—a stage of graduate medical education where one that was not academic, so I had only my clinical respon- practices medicine under the supervision of a licensed sibilities, and I feel that helped a lot in that I spent a lot practitioner—at Johns Hopkins Hospital in Baltimore, more time with my kids when I was there,” Hitti says. Maryland, and her second daughter a year later. “This is “But with AUB came the extra load of teaching, research, a bit unusual, because in a three-year residency program and administrative service, which has a high-impact po- it’s hard to have one child, but I ended up having two,” tential, of course, but also a higher time commitment— Hitti says. “In hindsight, it was probably not a bad thing the spillover into personal and family life is a lot more because in a residency you can plan to some extent. After when you have all these responsibilities. Adjusting to residency, and especially for emergency medicine, vaca- working at AUBMC was a big challenge, as was adjusting tion becomes a bit challenging because you always have to negotiating the responsibilities at home as a result.” to find someone to cover for you.” She had her third child Before all of her children started going to school, while she was working and says she went back to work Hitti says they outsourced childcare to their families five weeks later because she “felt the pressure of having to and daycares, but there was also a little shift toward her go back to work, both financially, and from the burden on husband—currently a professor of communications at the [team],” whereas with her daughters, she was able to the Lebanese American University—becoming more en- take two months off after each of their births. gaged in childcare. In America, Hitti says she was the primary care- Hitti became interested in researching the gender taker of the children. During her residency, the cou- gap in careers and shifting the perception of childcare ple outsourced childcare to a nanny (her husband was being a mother’s responsibility to it being a shared re- a PhD student at the time), and Hitti would take care sponsibility for two reasons. The first was her personal of the children when she was home. When she finished experience with childcare, the second was attending her her residency, she says she intentionally chose a nonaca- 13-year reunion at Johns Hopkins and discovering that demic hospital so she could have control over her hours four of the eight females who had graduated with her because she knew she was going to shoulder most of the are no longer practicing emergency medicine, while four responsibility of childcare. As such, she chose to work men in the class had high-level positions in their field. 56 executive-magazine.com “When a woman feels supported, she is more productive and dedicated to the job.”

IT TAKES A SUPPORTIVE ENVIRONMENT

Profession: Communication manager at Resource Group Children: A daughter aged four and a half

When Ghina Ramadan was pregnant with her daughter, she was hired by the marketing department of a bank. She recalls telling them that she was pregnant at the time and their reaction being nonchalant, which she found unusual given the stories on corporations shying away from hiring pregnant women. She returned to the bank after her 70-day maternity leave, which she found too short. “You are still not first. I would often continue working from home after my ready, physically or mentally, [to go back to work]. At daughter slept.” that point, the baby still does not have a set sleeping For personal reasons, Ramadan left her work at the schedule and wakes up at night. After I gave birth, I agency and was out of the workforce for six months. “It moved back to my mother’s house for six months so she was the first time in my life that I had been without work, could help me with the baby, and we would alternate and I felt that my life was empty. I felt I was not evolving waking up with her at night. I felt like I was doing hard at the same rate, intellectually or socially, and was not a time,” Ramadan recalls, adding that a fair maternity productive member of society,” she recalls. leave would be six months, in her opinion, although a In early 2018, she began working with her current year off would be ideal. employer, Resource Group, an investment company. For the first year and a half of her daughter’s life, Here again, she benefited, as do all mothers in the compa- Ramadan would drop her at her mother’s while she was at ny, from the option of working from 8-5 p.m. instead of work, before finally enrolling her in daycare. By that time, 9-6 p.m, and from flexible working in case of family emer- Ramadan had left the bank and was working at an adver- gency. “This is very important, and I recommend that all tising agency. Her husband, who worked in the nightlife companies do that. When a woman feels supported, she is business and was flexible during the day, would pick up more productive and dedicated to the job,” Ramadan says. his daughter from daycare at 4 p.m. and drop her at Ram- “I know some women whose work did not provide them adan’s office in downtown. “By its nature, an [advertising] with this flexibility and they left their jobs. In our society, agency job is more flexible with working hours—maybe mothers play the bigger role in raising their families and because we often stay late working on deadlines—so it should be supported at their work so they can do that.” is beneficial for working mothers. I could even bring my Ramadan believes such flexibility in work condi- daughter to the office for a bit, which does not happen tions requires that employees have a strong work ethic often in the corporate world,” Ramadan says. “My boss and good time management skills. She often has a quick had a daughter close to my daughter’s age, so she was lunch on her desk or continues working from home so very understanding and would say that children come that she is never behind on her workload. 57 SPECIAL REPORT March 2019 Profiles Women’s empowerment

“While other career options usually have late working hours, teaching allows my children to be with me most of the time.”

THE GREENER GRASS

Profession: First grade teacher at International College (IC) Children: A son aged nine, and a daughter aged five to help my son with his homework and spend time play- and a half ing with both my children.” Before the kids reached the age of two (when they Teaching was traditionally perceived as an ideal job would be allowed to enroll at the daycare located a few for a mother. While today all career options are—or steps away from the school she teaches in), Shatila was should be—open to women, teaching still has undeni- like any other mother figuring out the best childcare op- able benefits for those balancing work and childcare, tions for her family. With her son, she was lucky enough Layla Shatila says. “The children get to go and come back to be granted an academic year off work and returned from school with me, so I don’t have to worry about who’s to school when he was eight months old. She then left going to pick them up and drop them off. While other him with her in-laws, who lived near the school in which career options usually have late working hours, teaching she taught, and would spend her breaks with him. With allows my children to be with me most of the time, and her daughter, she was refused a year off work and so she so I don’t have to leave them with the nanny while I am quit. “I felt that I can’t leave my children before they are working late.” Most days, Shatila leaves school with her at least eight months old. I stayed with her until she was children at 2:30 pm, and when she has after-hours meet- a year old and then I started work at IC,” Shatila recalls. ings they wait for her in her classroom. The daughter spent the following year home alone with Teaching is also convenient for mothers in that— the domestic helper before being enrolled into daycare. apart from the occasional professional development con- “I would worry about her, but I had no choice. Once she ferences abroad—no work-related travels are expected. started daycare, and my son was in school already, things Shatila says teaching also helps her raise her children, got much easier.” since she often uses the same behavior management Although Shatila is not at work in the afternoons, she strategies she uses with her students to discipline them. still has a lot going on and has to manage her time effi- She says, however, that teaching is an all consuming ciently. “I have to be very thorough in organizing my time job that sometimes leaves her with little energy for her between my lesson planning and work responsibilities, own children. “Teachers are drained physically and men- and my children’s activities, wellbeing, and homework,” tally from dealing with children all day. I wake up at 6 she says. “I also need ‘me time,’ which is usually spent at a.m. and have to be full of energy welcoming the students the gym, while the children stay home with their father at 7:30 a.m. and spend the day with them until 2:30 p.m,” or with the helper. I also have to think of my time with Shatila says. “We also have meetings twice a week until 4 my husband, which we barely have because one of us is p.m., so by the time I’m done, I’m drained, but still have usually with the children.” 58 executive-magazine.com “It is overwhelming, but I love it. Everybody asks me how I manage, and the answer is that I don’t manage, I do my best and try to manage.” A HECTIC YET FUN LIFE moved in with her when each child was born and stayed Profession: Head of business development and for the first year. “Angel is an essential part of me being communication at FFA Real Estate able to have three kids while working full time and com- Children: Three sons aged two, four, and seven muting three hours to and from home in Adma[to Bei- rut],” Korab says. For Mireille Korab, juggling a demanding career Now that her sons are older, she relies on family sup- while raising three boys is a challenge she relishes. “It port for childcare. “My husband and immediate family is overwhelming, but I love it. Everybody asks me how are really a big support in handling everything in terms I manage, and the answer is that I don’t manage, I do my of the children’s activities and commuting from school,” best and try to manage,” Korab says. Korab says, adding that she would not have been able to Speaking about the experience of having three boys do it without her husband, who is very helpful with the while growing a career, Korab says: “With each child, it children, handling the logistics of their daily commutes got easier emotionally because you get used to the idea and waking up with them when needed. She and her hus- that you have to leave the house to come back to work, band make sure they do not travel for work at the same and that you have to separate the working hours from the time so one of them is always with the children. mothering and worrying hours. But it gets harder trying When her first son was younger, he would ask Korab to fit in taking care of three boys and managing your job why she did not pick him up from school like most of the up to your standards and taking care of the house, the other mothers. She has since made it a point to highlight husband, and your social life, and trying to find time for that each member of their family has an independent life. your self-care, and even for shopping because there is no “I make it a point to share little events from my day with time for shopping—thank God for Instagram so that we them, and I ask them about theirs. That way, I show them can shop online!” that they can have their own day without needing their Korab says her job entails attending afternoon and mother to be around,” she explains. evening engagements, such as gala dinners or receptions Korab hopes that she and her husband are good role and openings for clients’ places, which takes time away models for their boys. “I think that their dad and I giving from her family. She feels the hour and a half during them this model of working parents who really try to do which she carries out bedtime routines with her boys is a their best for their kids, and who organize their time for crucial time for her, so she has taken to leaving the office them, should push them to find partners who have this early, if possible, when she has evening commitments, same ambition, and are really helpful to their partners. even if she spends extra time commuting. This is when I will see if I did it or not, when I see how Korab had a live-in Lebanese nanny, Angel, who they will treat their spouses,” she says. 59 SPECIAL REPORT March 2019 Profiles Women’s empowerment

“As a working mother, I have to always compensate and balance. If I’m traveling one weekend, I make sure to spend extra time with my husband and children the following weekend.”

OF PASSION AND DELEGATION

Profession: Chief Operating Officer of Robinson Agri Children: A daughter aged 15, and a son aged 18 she knows what it means to balance work and home. Sat- urdays are days off, and she allows her employees—both To Nadine el-Khoury Kadi, being a successful work- women and men—to leave work early, or take time off if ing mother entails three main aspects: a good support they have something related to their children. “But they team, delegation, and passion. all continue their work at home and meet their dead- Khoury Kadi’s support team includes her parents who lines, even if they left the office early. This is because they helped her with childcare and household tasks. “When my know I trust them, and they are happy, so they produce children were young, I would leave them at my parents’ more,” Kadi explains. [home] or my husband’s parents. When they started going Finally, Khoury Kadi loves her work. “I am passion- to school, they would go to there afterwards,” she recalls. ate about agriculture and aim to develop smarter farm- Her husband provides unconditional support so that ing and solutions. This summarizes my moto in life: the she may excel in her career and looks after the children three Ps of patience, passion, and perseverence” she says. when she has business trips. “In Lebanon, we are luckier Khoury Kadi compares her brain to an excel sheet than in Europe because we have an extended family sup- and says she has to be very organized to strike a healthy port system. Also, all the husbands I know are supportive balance between work and home. “As a working mother, of their wives’ careers, and so the perception of the tra- I have to always compensate and balance. If I’m traveling ditional Middle Eastern man is changing in my opinion. one weekend, I make sure to spend extra time with my My father, for example, equipped us with culture, educa- husband and children the following weekend, for exam- tion, independence, and thinking out of the box, ” Khoury ple,” she says. Kadi says. Khoury Kadi says parenting her teenagers is a dif- At work, Khoury Kadi is supported by her sister who ferent experience than when they were children. “They shares her passion for innovation and sustainability. To- are confused at this age, and you have to know how to gether, they run a successful enterprise, leaving a special approach them. It is a nicer age in a way, but harder for mark in the agricultural sector. As COO, Khoury Kadi a parent,” she says. has learned the power of delegation. “Alone we can go Khoury Kadi has worked throughout her children’s fast, together we will go far. The more a leader empow- lives and says this is very natural to them, especially ers her employees, the better they perform at the job. As since some of their friends’ mothers work. “When they such, we create an environment for the team where shar- see me on TV they are very proud that I work and am ing knowledge and values is a source of strength,” she successful. My husband and I still make time for them, mentiones. and we travel together as a family on an annual basis, no Being a working mother herself, Khoury Kadi says matter what happens,” she says. 60 executive-magazine.com “I think I am raising my boys to expect their wives to be sharing with them the household expenses, as well as raising the children.”

LIVING WITH GUILT

Profession: Head of Human Resources at Bank Audi Children: Two sons, aged nine and 13

To Nayiri Manoukian, being a working mother is perfectly summarized in this quote: “Women are expected to work as if they don’t have a family and raise their family as if they don’t have work.” Manoukian believes the core issue facing working mothers today is an intrinsic feeling of guilt that they are not doing enough for their families. In her opinion, this is related to the way women are raised. “I come from a fam- career since day one, she is still expected to manage the ily where my mother never worked and would always have household and childcare. “I delegate of course, or as my hus- lunch prepared when we came back from school. So I come band puts it, I subcontract. So I don’t do the cooking, but I from this background of a traditional mother who raised am the one who has to make sure the cooking is done; I don’t me to always put family first,” Manoukian says. Her father, clean the house myself, but I make sure the house is clean however, raised her with a different perspective, supportive etc—this takes time,” Manoukian explains, adding that now of a working woman. “He was insistent I obtain higher edu- that her kids are older, they are independent enough to stay cation, something he was deprived from, and continue to home with the helper until she is back from work. learn as long as I am able to do so,” she says. “He was also All this led to a feeling of “mom guilt,” which Manouk- insisting on financial independence, continuously preach- ian feels all women share to some extent. “With my second ing to spend with caution and be in control of my financial son, I remember coming back from my maternity leave situation.” with tears in my eyes and thinking I had one (child) whom When she got married and had her first child, she con- I never had enough time for, and now I have two. Why am I tinued to rely on her parents’ support. “When I gave birth putting them through all this?” she asks. to my first child,” Manoukian recalls, “I used to work in oil When she shares her feelings of guilt with her husband, and gas and would stay in the office until minimum 7 p.m. Manoukian says he reminds her that the boys will eventu- I would alternate leaving my son at my mother’s and my ally leave them to start a life of their own, so all she can do mother-in-law[‘s home]. You can imagine my mother’s at- is be an example for what they should look for in a part- titude in regards to me picking up my son late at night, and ner. “I think I am raising my boys to expect their wives to she would berate me for not having time for my family and be sharing with them the household expenses, as well as child! On the other side, I had the full support of my father raising the children,” Manoukian says. “They should see and husband, who would remind me that my career is very women as equal partners. It is our generation that will important, and that I should focus on it.” raise the next one to have the right mentality, and that will Although her husband has been very supportive of her go into the next generation.” 61 SPECIAL REPORT March 2019 Refugees Women’s empowerment By Lauren Holtmeier

REDEFINING ROLES Refugee women take on new roles in their families

Fleeing conflict, leaving one’s home, and set- house to collect humanitarian aid. Executive in- tling in a strange—and often unwelcoming—envi- terviewed six refugee women; only one said her ronment is challenging. For female refugees these role in the family largely remained the same. challenges can be compounded, as many experi- This shift in gender roles affects all female -Syr ence a shift in their accustomed gender roles. Many ian refugees, whether single or married. But the women in Syria played the role of housewife, but breadth of work refugee women engage in is varied. in Lebanon they must assume a new role—that of While some refugee families can afford apartments breadwinner. The 2018 Vulnerability Assessment in Beirut, and as a consequence, typically have im- of Syrian Refugees (VASyR), a report compiled proved access to more diversified labor markets, annually since 2013, estimates that 18 percent of some live in crowded informal settlements in the households are female-headed and that 16 percent Bekaa Valley and are limited in the type of work of women participate in the labor force. The per- that is available to them. centage of women engaged in formal or informal Saja Michael, a gender and diversity technical employment is low, but most women take on more adviser at ABAAD, a gender equality organization, work as a refugee, even if that work is leaving the says that socioeconomic status plays a large role in 62 executive-magazine.com determining what type of work refugees may find. “If you’re a Syrian refugee who’s a bit better off, definitely you’re going to have access to employment opportunities that a Syrian refugee from a lower socioeconomic class will probably not have access to,” she says. For those at the lower end of the socioeconomic spectrum, many find work in the fields. The 2018 VASyR cites that of employed women the high- est percentage work in agriculture (38 percent). According to Michael, whether the woman came from urban vs. rural areas in Syria also often gives an indication as to what type of work, if any, they did back home. INCREASING RESPONSIBILITY “It’s important to understand where they’re coming from in Syria,” Michael says. “So if you’re Razan Hussami, Anamel’s founder, stands in a room where refugee women sew. coming from urban vs. rural, I think it’s an over- simplification to say Syrian women are more-used to child rearing. In some areas, I think this is the aimed at reducing the number of displaced Syr- norm, but in more urban settings, women are more ians. These measures included requiring Syrians to likely to be economic providers and caretakers.” register with the UNHCR and sign a pledge not to Wiam Ghabash, originally from Darayya, a sub- work, or to find a Lebanese sponsor to stay in the urb of Damascus, worked for the Syrian Ministry of country legally and pay a $200 residency fee every Health as an English teacher for nursing students. six months. Arriving in Chtoura in 2014, for her finding work For four years Ghabash renewed her residency in Lebanon was a continuation of the norm. She without issue because she had signed the pledge not works here as an IT and digital security trainer, and to work. However, the last time she went to renew REDEFINING runs training sessions on human rights and women’s her permit, General Security had learned she had rights at Women Now for Development, an organi- been working and zation that works with Syrian refugees. But even for The Lebanese system stamped a deporta- Ghabash, who has degrees in public health and Eng- tion notice on her ROLES lish, finding work in Lebanon was challenging. makes it hard for Syrians passport, effective- “It was a difficult stage,” Ghabash says. “I -re to find work; even if they ly rendering her member spending eight months walking in the find work with an NGO, the immobile within streets, looking for jobs. I reduced the expectation Lebanon. Ghabash to the minimal level. Like, it’s ok if I get a job an- contract cannot be extended is confined to an swering the phone in an office or cleaning offices.” past six months for Syrians. approximate 10 While Ghabash would have been happy to do kilometer radius any job to support her family of six, she eventually around her home picked up a six-month contract at Oxfam, but this for fear of what might happen if she is stopped at did not solve her long-term financial problems. a checkpoint. She says that the Lebanese system makes it hard for Ghabash’s future may be uncertain, but she Syrians to find work; even if they find work with knows for sure that she is not going back to Syria. an NGO, the contract cannot be extended past six UNHCR has an agreement with the Lebanese gov- months for Syrians. ernment that they cannot forcibly return anyone to Syrian refugees began arriving in Lebanon in Syria. She has applied for asylum in France and It- 2011, and currently there are just under 1 mil- aly and was waiting for her asylum interview when lion Syrians registered with UNHCR. Shortly af- Executive spoke with her. ter Ghabash made the trip to Lebanon, at the end Ghabash’s story is just one example of the of 2014, the government introduced new policies myriad challenges Syrian refugees face in Lebanon. 63 SPECIAL REPORT March 2019 Refugees Women’s empowerment

Following these new regulations, in May 2015, UN- HCR suspended registering refugees all together per the host government’s decision, leaving many refugees without documentation or the ability to obtain it. At this point, more women had to find work as they were no longer able to rely on humanitarian aid to feed their families, says Sabah Hallak, a gender expert at Citizenship League, an NGO that works with Syrian refugees. Confined to working in the construction, agriculture, and environment sector per Lebanese labor law, refugees are limited in their opportunities to find employment. Female refugees are further limited because construction is a typically a male-dominated field. Hallak says that most work in the informal sector, primarily in the fields picking crops. This, of course, is seasonal work, meaning that in order to survive on these earning you would have to save. MAKING ENDS MEET Saving money, however, is hard when wages are low. For those who work in the fields, Michael estimates that women and children may earn LL4,000 - 6,000 for a four to five hour shift, and many will work two shifts a day, making their daily wage around LL8,000 - 12,000. Men make around LL15,000 per shift. A refugee in the Sheikh Raja settlement outside Chtoura in the Bekaa Valley who preferred to be mentioned by her first name, Jouriya, recalls making LL6,000 for a five hour shift, while the men “made more, because they are men.” An International Labor Organization In Idlib, Jouriya and her family owned their (ILO) report using data from 2014 found that Syr- own land. The family grew their own food, and ian refugee women earned on average LL248,000 Jouriya taught fourth graders in her hometown. It per month, where the men’s average earning was a simple life, but a stable one. Here, her fam- was LL432,000. Women earn less than men, and ily receives the UN nutrition card each month that where women are the sole economic provider in comes loaded with a household, like Jouriya, they will likely be more Where women are the LL120,000. When hard-pressed to make ends meet than men in the sole economic provider in a asked if this and her same situation. income from tutor- Jouriya worked in the fields three years ago, but household, they will likely be ing are enough to now she has established a tutoring center for 19 chil- more hard-pressed to make feed her family of dren in the camp and also studies radiology. She is ends meet than men. five, Jouriya says, “we the only one in her family of five who works. Even do our best.” though she charges LL55,000 per month, most peo- Part of the reason ple cannot afford her fee, so they pay her what they many women accept agricultural work, even though can. She says she earns around $40 per month to the wages fall far below minimum wage (LL30,000 support her family. Her parents are too old to work, per day or LL675,000 per month) is economic ne- and her brother has not been able to find any, leaving cessity. Women are also more vulnerable to losing the brunt of the responsibility on Jouriya’s shoulders. hard found work. If a contractor needs to reduce the 64 executive-magazine.com number of workers on the site, the women are the first to go, says Frida Khan, a senior gender specialist in the ILO Regional Office for Arab States. An ILO program, the Employment Intensive Infrastructure Program (EIIP), established in 2017, sought to help both men and women get into jobs in the construction sector. Participants are guaranteed employment for a certain number of days in the EIIP program, and then, ideally, will find other work in the sector. As the EIIP guarantees both a period of work and the minimum wage, it is an attractive option for Syrian refugee women who are often underpaid and struggle to break into male-dominated sectors. Even though many women must work out of economic necessity, most refugee women would prefer not to, both Khan and Razan Hussami, founder of Anamel, an organization that works with refugee women, say separately. At the onset of the crisis, more refugee women reported going outside the home to make economic contributions to their families, but this did not necessarily mean working in the fields. Up until early 2015, women left the home to collect humanitarian aid at designated locations. While it was not a job, women felt burdened by the extra responsibility of having to collect aid in addition to taking care of their families, Michael explains. Others have learned skills such as sewing or cutting hair to earn money. Across the country, programs have been established to provide refugee women an opportunity to learn new skills and provide a place where they can work to support their families. A DIFFERENCE IN OPINIONS One example is Hussami’s program Anamel. It seems organizations, in their attempt to In a two-story workhouse in Bchamoun just out- help provide women with livelihoods, flooded the side Beirut, women learn skills they can use to market in camps for these certain skills. Hallak make a living. A tutoring center at Anamel offers says now there is a shift to women reading and writing classes, and children teaching women English who cannot attend school, either because they Now there is a shift to and equipping them with lack proper identification or there are no available teaching women English computer skills. These spots, also learn at the center. and equipping them with types of skills may benefit Hussami says that many women who attend train- computer skills. women in the long run, ing sessions at the center are then able to find work in but the restrictions placed the community, and that these kinds of programs give on Syrian workers in women a sense of purpose and community and are Lebanon in terms of which fields they can legally empowering. Hallak, however has a slightly less opti- work in and the limited jobs available will make mistic view of these type of programs. it difficult for many to apply these newly learned “At first we taught them sewing and hair cutting; skills and join the workforce. some learned to make handicrafts,” she says. “But Miriam, a refugee from the rural area outside now, things are not good in the camps. Who needs Raqqa, and Sarah Youssef Hussein, originally from the coiffeur?” a rural area of the Idlib governorate, do not work 65 SPECIAL REPORT March 2019 Refugees Women’s empowerment

alone. Everyone in her family of eight either go to work or school during the day, and, for Miriam, studying is a way to pass the time. “At least when I go back to Syria, I didn’t waste my years here,” she says. In Syria, Miriam took care of her family and tended the family sheep and garden. When the fighting in Raqqa intensified in 2014, the family sold its sheep and fled toward the border, eventually settling in Bchamoun. Miriam considers herself lucky that her husband and two daughters work, so she is free to continue her homemaker duties, largely as she did in Syria. Like Miriam, Souad from Abu Kamal in the Deir ez-Zor governorate in Syria, a sous-chef at Anamel, would rather take care of her seven children than work. Another woman at Anamel, Zahra from Aleppo, teaches women to crochet three days a week, and while she enjoys her work, she feels guilty that she cannot spend more time taking care of her family. ABAAD’s Michael says that, as a women’s organization, seeing women become providers and playing a larger role in their households, staff at ABAAD were excited. But this did not necessarily reflect the reality for the women; many were over- burdened by their new role. “Any working woman has two jobs,” Michael says, referring to the pre-defined role as caretaker in addition to any income- deriving activity. For the women who worked before coming to Lebanon, like Ghabash and Jouriya, this shift seems less harsh. But these women are still the primary economic provider for their families. For women like Souad and Zahra, their shifting role is more dramatic as they did but have differing opinions on the matter. “From what I’ve seen not work outside the Hussein fled to Lebanon in 2012 with her hus- home in Syria. Perhaps band and son, and, unlike Miriam, would love to from four years working the only commonality is find work, but if she works there will be no one here, I see a definite that refugee women, for to take care of the children. They have had two change in gender roles.” the most part, have an children since coming to Lebanon. Her husband, increased role in caring who has no formal employment, typically begins and providing for their his day under a bridge near the camp and hopes families as refugees, regardless of individual feel- to find a day’s work. If successful, he will earn ings on that role. around $10 that will go toward feeding a family “From what I’ve seen from four years work- of five. Her family used to collect $260 a month ing here, I see a definite change in gender roles,” in aid she says, but they have not received any help Ghabash says. “Maybe this is a positive side of the since October 2018. war, that we have an increased role here. Some fo- Miriam, once illiterate, has been learning to cus on the work and exploitation. The other side is read and write at Anamel for the last two years. Be- that they’re the decision-maker, the breadwinner. fore going to the center, she spent her days at home They’re not aware that it’s a privilege.” 66 executive-magazine.com Middle East Automotive News 67 SPECIAL REPORT March 2019 Comment Women’s empowerment By Zeina Zeidan Maalouly THE GREATEST ADVENTURE

Balancing motherhood and a career

The greatest adventure of all, that is how I child? I was confident that I would be able to bal- would describe my dual journey: my career and ance life as a businesswomen and a mother—after motherhood. The ability to balance two vastly dif- all, I had managed to juggle work and school. But ferent worlds is testament to the versatility and the first challenge came when I was pregnant and strength that lies within each woman. This ability is still had to work; it was a trying, yet exciting time. often left untapped and underappreciated, because When my first child was born, it was defi- the world continually tries to convince us that we nitely a life-changing experience. It made every are the weaker sex. other experience pale in Work has been a constant part of my life since Society makes many of comparison. I was one my late teenage years because school fees always of those mothers who had to be paid. I had to combine a hectic scholas- us feel guilty for wanting bonded with my baby tic life with as many working hours as possible to to pursue a career after even before I gave birth. make ends meet. I was so determined to realize my having children, and I I felt as if I knew my dream of becoming a successful businesswoman child. Being a working and entrepreneur that I gave little attention to any- was prey to those dark mother, I felt torn apart. thing else. thoughts for a while. Society makes many of I must confess that motherhood was not at the us feel guilty for want- top of my mind during my early twenties, and it ing to pursue a career remained that way until I met my husband. After after having children, and I was prey to those dark marriage, like most married couples, we discussed thoughts for a while. whether or not we should start a family. But with Our motherly instincts drive us to provide my career moving forward, as well as my husband’s, comfort and security, so the idea of leaving our the question was: How can we juggle work and a precious little one at home with someone else can 68 executive-magazine.com feel like a betrayal or abandonment. I struggled with my child. I see time as something much like with these feelings, and it took me some time to the love between a mother and a child: a priceless come to terms with the situation. Women are ex- thing that must be given unconditionally. This is pected to place themselves on the altar of sacrifice, why I strive to ensure my family feels loved, and to not compromise, and those who choose to—or why I soak up their love in return. It is a heart- have to—work are silently persecuted for wanting warming shield that counterbalances the cutthroat to have it all. This is the cultural reality. world of business and finance. With regard to the impact being a mother has REALISTIC EXPECTATIONS had on my career itself, it has helped me develop My experience of being a new mother while patience and become exceedingly good at manag- also trying to keep my career moving forward made ing time. Those two attributes have made me more me realize that we cannot have it all. It is simply not efficient, which has benefited both business and humanly possible. Nevertheless, simple changes family life. would have made it easier—not just for me, but for all mothers. This support includes longer parental THE POWER OF TEAMWORK leave and greater flexibility in the workplace. If we Building reliable support networks at work, want more women to be in the workplace and to and also closer to home, has been equally essential. ascend the career ladder, women should not have These networks enable me to delegate and trust the to make tough compromises. right people for the right jobs. As a leader, know- The current business arena is set up without ing that I have a team capable of handling even the such support, and so there will always be many in- small details gives me the total confidence to make stances where I am forced to miss out on important the best decisions for the company. milestones, either in my child’s life, or in my career. It is true that it is challenging to go against the I could miss my toddler’s first word because I had tide of cultural expectations a meeting. Or I could miss out on a work opportu- Once I broke free about motherhood, and I nity or a client because my child is sick and needs from the shackles of have seen so many talented attention. Beating myself up about such things is women leave jobs they love to futile. I have learned to let go of attempting to make expectations, I had raise their children. And yet, every moment perfect and memorable. Even full- to perfect the art of it is ultimately about man- time mothers cannot live up to such unrealistic compromise. aging the emotional energy expectations. tied to your home, just as you Once I broke free from the shackles of expecta- would for work. As my career tions, I had to perfect the art of compromise. To- continues to evolve, the realization that I am not just morrow there is always a chance to compensate for working for myself, or my future self, but also for my what was missed today. I do what it takes—even if child, the next generation, gives me extra drive to it means moving my schedule around to wake up push ahead in this greatest of adventures. earlier or stay up later, or working overtime—to Zeina Zeidan Maalouly, PhD, is chair of the board ensure I can enjoy a long weekend of quality time at Royal Financials sal.

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How Lebanese mothers can transition back to work

I had been working in childcare for two years old babies in the care of others as they head back before I became a mom. As a founder of Jaleesa, an to work. I look at photos of my baby at that age—he online platform to find babysitters and nannies in was so vulnerable and small. How could I have gone Lebanon, I have spoken to hundreds of parents— back to work? How could I have concentrated for a mainly moms—about the challenges of work and whole day on anything but him? It seems impossi- childcare. Parents have helped us to define a carer’s ble—but I did it, just like thousands of other moms. main role: to keep the kids safe, clean, and fed— And I was able to do it because I had a childcare plan and to support their development. in place that I trusted was good for my baby. But now I am a parent myself, I realize this is Designing a childcare plan is not just about just the beginning. Another key role of childcare is solving a practical problem, it is an emotional is- to relieve the pressure on parents. For the wellbeing sue. We are looking for peace of mind and the best of the whole family, there has to be a good child- for our kids. We also need to know that things are care plan in place when mom returns to work. sorted at home, so we can concentrate at work. This Maternity leave is not generous in Lebanon; is not an easy task, the lack of accessible childcare new mothers find themselves leaving their 70-day- is one of the greatest barriers moms face when 70 executive-magazine.com hoping to return to work. A 2017 OCED Gender nanny will be very expensive, but combining a full Equality Report found that the most common re- or part-time nanny with support from grandma, sponse—cited by 23 countries—when asked for daycare, and flexible working can actually save the the three most effective ways to tackle barriers to family money. female employment was “making childcare more Hiring your own childcarer or nanny also helps accessible.” relieve some of the avoidable stresses of returning When parents return to work, they have to to work. Childcare is the clear priority, but when weigh their options. Most people’s childcare plans the baby’s sleeping my nanny is so proactive that combine one or more elements from the available sometimes I feel I have a sitter, home helper, and options: daycare, a family member, a domestic PA all in one. She is not just part of my baby’s daily worker, and a nanny. schedule, but also supports our parenting choices and helps to manage challenges like tantrums, FINDING THE RIGHT FIT weaning, and sleep routines. Jaleesa hand-picks There are some truly excellent daycares in Leb- childcarers through an extensive vetting, interview, anon, and this can be a cost effective part of a work- and training process, designed to find people who ing parent’s childcare plan. Daycare is a chance for are trustworthy, professional, experienced, and kids to learn to socialize, which they start to need who love kids. at around 13-23 months according to the American A big part of me was happy to return to work— Academy of Pediatrics. Before this age, babies are perhaps in part because I work for my own com- interested in other babies, but their brains are not pany, and we are extremely parent-friendly. My yet developed enough to make friends with their nanny could bring the baby to the office at lunch- peers, so socialising is more about learning to trust times so I could feed him, and my team have been other adults and caregivers. Parents have to antici- v e r y open-minded pate that their children will pick up illnesses while “Childcare is not just about this (though their immunity develops, and that can impact on our auditors found it parents’ ability to work productively. Flexibility can about liberating our time for to be quite a shock). also be a challenge: worrying about getting through productivity, it is about freeing We have all gotten traffic to fetch the kids is a stress working parents up our brain-space so we can used to the growl of do not need. be fully present at work.” the breast pump in In some families, when a new baby is born, teta the office twice a day. steps in as a childcarer. For those who have this op- However, it has not tion it is fantastic; nobody is better qualified to all been smooth. Some days, I start later and finish teach young babies how it feels to be loved, nur- earlier than I would like. Not everyone can enjoy tured, and looked after than those who raised us. so much flexibility, but with the right support at But with our parents enjoying their health, and home, hopefully other mothers can find their re- working later before retiring, this is not an op- turn to work less stressful too. tion for everyone. My mom would love to spend Childcare is not just about liberating our time more time with her grandson, but in her mid- for productivity, it is about freeing up our brain- sixties she is still busy with her own work, com- space so we can be fully present at work. Having mitments, and travel. a plan, even one concocted from several options, Some families decide to put their domestic is the first step toward a smooth transition back. worker in charge of childcare, although this is not a Of course there are always hiccups along the road. choice I would make. I want my carer to be 100 per- My baby bumped his head for the first time be- cent focused on the baby, not worrying about other cause I was checking work emails on my phone. household tasks at the same time. And while many I feel guilty about that, of course. But I absolutely families still do have a live-in domestic worker, not do not feel guilty about going back to work, be- all newlyweds can afford a big enough home to cause my baby is well looked after by a nanny I share with employees—if they even want to share trust. To offer that peace of mind to more families, their private space at all. my plan is to keep working as long and hard—and A nanny can be the main solution, she (or flexibly—as I can. he) can be the glue that holds the childcare plan Angela Solomon is co-founder of Jaleesa, together. Some people fear that a professional an online platform for babysitting services in Lebanon. 71 March 2019 BUSINESS ESSENTIALS

Company Bulletin

After the jury of local experts OMD Worldwide, an Omnicom Byblos Bank issued the results selected the winners of the 2018- Media Group Agency, has been of the Byblos Bank Real Estate 2019 Startupper of the Year by Total named Global Media Agency of Demand Index for the fourth quarter Challenge in Lebanon, they were the Year by Adweek. In selecting of 2018. The results show that the presented with their awards at an OMD, Adweek cited the company’s index posted a monthly average of official ceremony held on March 1 at impressive turnaround performance 51.2 points in the fourth quarter of Liza Beirut restaurant. following a very challenging 2017. 2018, nearly unchanged from 51.4 Adweek’s story details the comeback points in the third quarter of 2018 IFC, a member of the World that took place during 2018—a and increasing by 14 percent from Bank Group, signed a memorandum journey that saw OMD win or retain 44.9 points in the fourth quarter of understanding with FFA Private over $2.6 billion of business. of 2017. The fourth quarter results Bank, a leading private bank in the constitute the 20th lowest level in Middle East and North Africa, on Byblos Bank and the USAID Leb- 46 quarters. February 20 to help improve infra- anon Enterprise Development project structure services in Lebanon and collaborated to organize the first of In a ceremony held on January the wider Levant region. a series of themed workshops at the 30 at BLOM Bank’s Headquarters, bank’s headquarters in Ashrafieh. BLOM BANK was awarded the The Hublot Geneva Days 2019 “Excellence in Risk Management” Roadshow ended its journey in The BMW Group has started 2019 award by Visa as Saad Azhari, Chair- the Middle East with its last stop, with a positive sales result: global man and General Manager of BLOM Beirut, after having passed through deliveries of the company’s three Bank, received the award from Dubai, Bahrain, and Kuwait. On premium automotive brands increased Marcello Baricordi, general manager February 27, David Tedeschi, re- by 0.5 percent in January, with a total of Visa in the Middle East and North gional director Hublot Latin America of 170,463 BMW, MINI, and Rolls- Africa. and the Caribbean, Middle East and Royce cars delivered to customers. Africa, and Mher Atamian, managing This is the company’s strongest-ever RYMCO, the official distributor director of Ets. H. Atamian, present- start to a year, achieved despite the of INFINITI cars in Lebanon, an- ed Hublot’s first set of new watches current headwinds affecting the nounced the release of the INFINITI for the year. industry in several markets. Driver’s Guide, a new, free mobile app supported by augmented real- MINI is among the winners in this The Brave Heart Fund launched ity technology, which completely year’s “Best Cars 2019” competition. its annual congenital heart disease transforms the experience of driving The class victory in the readers’ vote awareness campaign in line with INFINITI cars. held by car magazine auto, motor und world heart month at a press confer- sport once again demonstrates the ence under the auspices of the Min- BBAC set out to upgrade its core high level of popularity still enjoyed by istry of Public Health to bring more banking solution—paving the way the original in the premium small car attention to the devastating impact for digital innovation while ensur- segment in its 60th year. of congenital heart defects on ing full compliance with regulatory infants, children, and their families standards. BBAC has modernized its The new Mercedes-Benz Vans and to raise awareness about the core banking infrastructure with a Sprinter is the latest edition of the need for more education, commu- seamless upgrade to the latest ver- global bestseller vehicle segment to nity support and funding to sustain sion of Fusion Equation, integrated officially launch in the Middle East the mounting number of congenital with Fusion Teller. and North Africa. heart disease patients who are in need of financial aid. Bang & Olufsen presents a new Byblos Bank held a ceremony powerful wireless speaker for the at its headquarters in Ashrafieh to Banque Libano-Française home that completely reimagines hand out Certificates of Completion opened two new branches in Kfarh- how we live with sound. Created to students who took part in the bab and Tyre-Hoch, bringing the in collaboration with globally ac- 2018 Internship Program. number of its local branches to 60. claimed designer Michael Anastassi-

72 executive-magazine.com ades, Beosound Edge is yet another On January 31, Saradar Bank Netherlands and under the patron- thoughtful design from the Danish launched S17 in Beirut, a new bank age of Prime Minister Saad Hariri. luxury audio brand that transforms branch concept unique to Lebanon. the everyday mundane to musical Located in Sodeco, S17 combines touch, managed by Zain Group, mastery and adds aesthetic value to the comfort of a café, the conveni- has announced a partnership with the home. ence of a co-working space and the IOTree, Lebanon’s first wireless practicality of a digital bank. network of smart traps for harmful Johnnie Walker has always been pests, at the Agri-Food Innovation a champion of progress, creativ- adidas Running unveiled the all- Day held at New Biel on February 5. ity, and hope for a better tomorrow. new adidas Ultraboost 19, the most Keep Walking Lebanon has been responsive, energy-charged version of Ericsson has launched its criti- celebrating the resilience of the the iconic running silhouette to date. cal communications broadband port- Lebanese at large and their posi- folio for service providers. This will tive spirit for years now. This year, touch, managed by Zain Group, enable service providers to meet the Johnnie Walker specifically gave the has collaborated with Huawei business-critical and mission-critical opportunity to university students to Consumer Business Group to issue needs of industries and public interpret “Keep Walking Lebanon.” a special bundle package dedicated safety agencies as digitalization and to the Huawei Y7 Prime 2019, the modernization of land mobile radio T. Gargour & Fils Mercedes-Benz newest device release from Huawei. communications increases. Lebanon ranked number one in the luxury car market, an achievement On a festive night held at the Under the patronage and in the reflecting the excellent level of cus- Cadillac House in Badaro, IMPEX, presence of the Lebanese Minister of tomer loyalty, trust, and satisfaction. the exclusive Cadillac dealer in Tourism Avedis Guidanian, Hospital- Lebanon, launched the Cadillac ity Services held a press conference On February 7, USAID cel- model the XT4, in the presence of on March 1 at Eau de Vie, Phoenicia ebrated the launching of its award Cadillac Middle East Executives, Hotel Beirut, to launch the 26th edi- with Nudge Lebanon, a local NGO VIPs, clients, media representatives tion of HORECA Lebanon, the region’s focusing on low cost interventions and brand’s aficionados. premier hospitality and foodservice that improve lives through better event, which takes place at Seaside decision-making. This new partner- Nestlé announced the launch of Arena from April 2-5. ship will enable greater access to a new range of coffee products under the financial system of Lebanon with the Starbucks brand to be available The annual Pikasso d’Or Awards, a focus on women. globally. The new range consists of a competition showcasing the best 24 products, including whole bean creative work in out-of-home, has While the Lebanese automotive and roast and ground coffee, as well announced its 2018 winners. market dropped 11.44 percent over- as the first-ever Starbucks capsules all in 2018, according to a report developed using Nespresso and Nes- The Huawei Mate X foldable by the Association of Automobile café Dolce Gusto proprietary coffee 5G smartphone has won GSMA’s Importers, NISSAN witnessed un- and system technologies. prestigious “Best Connected Mobile precedented growth during the same Device of Mobile World Congress period, with its sales hiking up 17 Following a remarkable demand 2019” award. percent. during the pre-order phase, Huawei Consumer Business Group an- Following a comprehensive Byblos Bank Chairman-General nounced, on February 13, that their upgrade, one of Porsche’s most Manager Semaan Bassil and Byblos latest device, the Huawei Y7 Prime popular models, the Macan, is now Bank Europe Chief Executive Officer 2019, is officially available in the available in Lebanon. Fouad Trad welcomed the Governor Lebanese market. of the Central Bank of Lebanon BBAC has opened its new branch Riad Salameh in Brussels on the QOOT, which means food and in the Northern city of Kousba, district sidelines of a forum titled “Financial sustenance in Arabic, is the first of Koura. The branch opening comes and Monetary Stability, Impact on Agri-food innovation cluster in Leba- in line with the bank’s expansion strat- the Lebanese Economy,” organized non. It was officially launched at the egy to grow its geographic footprint in by the Belgian Lebanese Business Lebanon Agri-Food Innovation Day strategic areas in Lebanon, especially Council and sponsored by Byblos 2019 organized by Berytech, with in the North Area, and serve its clients Bank Europe. the support of the Kingdom of the wherever they are. 73 March 2019 BUSINESS ESSENTIALS

Company Bulletin

On the occasion of the Interna- pionships, as well as other sports Lebanese education system with tional Women’s Day on March 8, the activities, is now available on the a 50 million euro donation toward National Commission for Lebanese Cablevision network, thanks to an MEHE’s Reaching All Children with Women joins the international agreement signed between Alfa CEO Education (RACE) plan. campaign #BalanceForBetter, and and Chairman Marwan Hayek and reiterates the importance of balance Cablevision’s CEO Samar Khalil. In the past year, GROHE has between the roles, duties, and obli- evolved from a mere hardware gations of women and men. As part of expanding its offering manufacturer into a driving force of in the cars section, OLX announced the digital transformation within the The future of driving pleasure the launch of its new service: “Cash sanitary industry, offering its own In- is approaching fast and the BMW my Car” by OLX. The service’s aim ternet of Things products. The intel- iNEXT takes the next hurdle of its is to simplify the process of selling ligent water control system GROHE path to serial production matu- cars while ensuring each transac- Sense Guard has now arrived in the rity. With its purely electric drive, tion happens in an efficient and world of smart homes. the BMW iNEXT meets individual transparent manner and at a fair mobility needs in an especially market price. The Italian government reaf- sustainable manner. firmed its commitment to the TBWA\RAAD ranked number 8 most vulnerable children living in Believing that business can for the second consecutive year on Lebanon by contributing 1 million and should be used as a force the Contagious Pioneers 2019 list euros to UNICEF’s Water, Sanitation for good, solving critical human of Best and Bravest Agencies on the and Hygiene (WASH) programme in challenges, Changemaker gathered Planet. Lebanon. more than 1,000 students from 60 university campuses across Nestlé Middle East is aiming Arab Bank Group closed 2018 Lebanon for the Lebanon Student to further combat rampant vitamin with solid results reporting net in- Startup Forum at Beirut Digital D deficiencies across the region come after tax of $820.5 million as District, on February 23, where through an open invitation on the compared to $533 million in 2017 Lebanon’s top young entrepreneurs HENRi@Nestlé platform, offering with net income before tax reaching pitched their innovative business $50,000 to the winning applicant $ 1.1 billion. The Group’s equity ideas before leading judges. who develops a simple and econom- grew to reach $8.7 billion while the ic method for checking daily levels, return on equity increased to reach touch, managed by Zain Group, and creates an app that stores 9.5 percent. announced its partnership renewal results and provides professional with Bassma Association after the advice on how to improve them. LG Electronics Inc. announced outstanding success of the Night record full-year revenues of KRW School Program, in which 95 As part of Kempinski Corporate 61.3 trillion ($54.4 billion) in percent of students passed their Social Responsibility and falling in 2018, exceeding sales of 60 trillion 2017/2018 academic year. line with its commitment to support won for the second year in a row. the local community, Kempinski Full-year profit of KRW 2.70 trillion Careem has launched the big- Summerland Hotel & Resort has ($2.40 billion) increased nearly 10 gest rewards programme, by number launched its first Concertini, thus percent from 2017 reflecting record of users, for the wider Middle East transforming its hotel’s Lobby profitability from appliances and region: Careem REWARDS. Lounge into a stage for young art- home entertainment products. ists to demonstrate their talent and Alfa, managed by Orascom TMT, impress audiences. Ford has appointed ANB Motors announced that the Alfa Sports app, sal as its new partner for the sale and the exclusive broadcaster of the Alfa The German government, service of Ford vehicles and distribu- Basketball and Volleyball Cham- through the KfW Development Bank, tion of genuine Ford and MotorCraft® has renewed its commitment to the parts in all of Lebanon.

74 executive-magazine.com 75 March 2019 BUSINESS ESSENTIALS

Events

CONFERENCES

ORGANIZERS CONTACT WEBSITE

LEBANON 2-4 Apr LEBANON INTERNATIONAL OIL AND GAS SUMMIT Global Event Partners +44 7850 025295; [email protected] www.gep-events.com 9-11 Apr SOLID WASTE MANAGEMENT EXPO LEBANON Lebanon Expo +961 76 785 855; [email protected] www.lebanonexpo.com 23-24 Apr THE ANNUAL ARAB BANKING CONFERENCE Union of Arab Banks +961 1 377800; [email protected] www.uabonline.org

DUBAI 4-5 Mar CONNECTED AIRCRAFT CONFERENCE IQPC +030 20913 274; [email protected] www.iqpc.ae 6-7 Mar GLOBAL WOMEN LEADERS CONFERENCE Datamatix Group +9714 332 6688; [email protected] www.datamatixgroup.com 12-13 Mar AIRFINANCE JOURNAL MIDDLE EAST EuroMoney Seminars +44 20 7779 8349; [email protected] www.euromoneyseminars.com 14-15 Mar INSURANCE INNOVATION SUMMIT Fleming +421 257 272 100; [email protected] www.fleming.events 20-21 Mar GCC HAPPINESS AND CUSTOMER CARE EXCELLENCE CONFERENCE Datamatix Group +9714 332 6688; [email protected] www.datamatixgroup.com 31 Mar - 2 Apr MARITIME SECURITY AND OFFSHORE PATROL WEEK IQPC +030 20913 274; [email protected] www.iqpc.ae 9-10 Apr RETROFITTECH MENA SUMMIT AND AWARDS ACM +971 4 361 4001; [email protected] www.acm-events.com 10-11 Apr SEAMLESS MIDDLE EAST Terrapinn Middle East 971 1 444 02500; [email protected] www.terrapinn.com 14-18 Apr CERTIFIED BLOCKCHAIN PROFESSIONAL TRAINING Fleming +421 257 272 100; [email protected] www.fleming.events 14-15 Apr ATD MIDDLE EAST Informa Middle East +971 4 407 2528; [email protected] www.informa-mea.com 15-16 Apr GLOBAL INFRASTRUCTURE CONGRESS IQPC +030 20913 274; [email protected] www.iqpc.ae 16-17 Apr MEGA CITY INFRASTRUCTURE WEEK IQPC +030 20913 274; [email protected] www.iqpc.ae 21-25 Apr GCC SMART GOVERNMENT AND SMART CITIES CONFERENCE Datamatix Group +971 4 332 6688; [email protected] www.datamatixgroup.com 23-24 Apr MIDDLE EAST INVESTMENT SUMMIT Terrapinn Middle East +971 1 444 02500; [email protected] www.terrapinn.com 28 Apr - 2 May STRATEGY EXECUTION AND INNOVATION FORUM Informa Middle East +971 4 407 2528; [email protected] www.informa-mea.com 29 Apr - 1 May FUTURE PROCUREMENT LEADERS IQPC +030 20913 274; [email protected] www.iqpc.ae

ABU DHABI 1-2 Apr GLOBAL FORUM FOR INNOVATIONS IN AGRICULTURE One Communications and Marketing group +971 2 234 8400; [email protected] www.InnovationsInAgriculture.com 16-18 Apr CITYSCAPE ABU DHABI CONFERENCE Informa Middle East +971 4 407 2528; [email protected] www.informaexhibitions.com 29-30 Apr THE DIGITAL TRANSFORMATION IN THE BANKING SECTOR Union of Arab Banks +961 1 377800; [email protected] www.uabonline.org

SAUDI ARABIA 5-6 Mar SAUDI DOWNSTREAM FORUM BME Events +2 02 2 5644116; [email protected] www.thebmegroup.com 17-19 Mar SAUDI WATER FORUM Exicon intl group +966 11 460 2332; [email protected] www.exicon-specialist.com 23-24 Apr FUTURE WORKFORCE KSA Informa Middle East +971 4 407 2528; [email protected] www.informa-mea.com 76 executive-magazine.com ORGANIZERS CONTACT WEBSITE

EGYPT 2-3 Mar EGYPT INVESTMENT FORUM Al Iktissad Wal Aamal +961 1 740173/4;[email protected] www.iktissadevents.com 30 Mar-1 Apr CHIEF RISK OFFICEERS IN ARAB BANKS FORUM Union of Arab Banks +961 1 377800; [email protected] www.uabonline.org 17-18 Apr WATER DESALINATION CONFERENCE Exicon intl Group +966 11 460 2332; [email protected] www.exicon-specialist.com 1-3 May COMBATING ANTI-MONEY LAUNDERING AND TERRORISM FINANCING - -; - -

KUWAIT 18-21 Mar ANNUAL CRISIS AND RISK MANAGEMENT SUMMIT IQPC +030 20913 -274; [email protected] www.iqpc.ae 16-17 Apr THE NEW KUWAIT SUMMIT Global Event Partners +44 7850 025295; [email protected] www.gep-events.com

BAHRAIN 18-21 Mar MIDDLE EAST OIL AND GAS SHOW AND CONFERENCE Informa Middle East +971 4 407 2528; [email protected] www.informaexhibitions.com

JORDAN 5-6 Mar FINTECH INNOVATION AND THE FUTURE OF BANKING SERVICES Union of Arab Banks +961 1 377800; [email protected] www.uabonline.org

OMAN 15-17 Apr OMAN DOWNSTREAM Oman Expo +968 24660124; [email protected] www.omanexpo.com 22-24 Apr OMAN ENERGY AND WATER Oman Expo +968 24660124; [email protected] www.omanexpo.com

EXHIBITIONS ORGANIZERS CONTACT WEBSITE

LEBANON 2-5 Apr HORECA LEBANON Hospitality Services +961 1 480 081; [email protected] www.hospitalityservices.com.lb 10-13 Apr SMARTEX INNOVATION’S PLATFORM MICE Lebanon +9611 384 791; [email protected] www.smartexlebanon.com 11-15 Apr E-MOTOR SHOW e Ecosolutions +961 9 856565; [email protected] www.e-motorshow.com 30 Apr - 4 May BEIRUT BOAT IFP +961 5 959 111; [email protected] www.ifpexpo.com

DUBAI 5-7 Mar AGRAME Informa Middle East +971 4 407 2528; [email protected] www.informaexhibitions.com 5-7 Mar MIDDLE EAST ELECTRICITY Informa Middle East +971 4 407 2528; [email protected] www.informaexhibitions.com 8-9 Apr MIDDLE EAST SPECIAL EVENT AND EXHIBITION SHOW Informa Middle East +971 4 407 2528; [email protected] www.informaexhibitions.com 11-13 Apr MIDDLE EAST FILM AND COMIC CON Informa Middle East +971 4 407 2528; [email protected] www.informaexhibitions.com 14-15 Apr ATD MIDDLE EAST Informa Middle East +971 4 407 2528; [email protected] www.informa-mea.com 17-19 Apr GULF EDUCATION AND TRAINING EXHIBITION Informa Middle East +971 4 407 2528; [email protected] www.informaexhibitions.com

77 March 2019 BUSINESS ESSENTIALS

Events

ORGANIZERS CONTACT WEBSITE

ABU DHABI 25-26 Mar FUTURE LANDSCAPE AND PLAYSPACES ABU DHABI Advanced Conferences & Meetings +971 4 563 1555; - ww.acm-events.com 25-27 Mar IBTM ARABIA REED +971 2 491 7615; [email protected] www.reedexpo.com 9-10 Apr ANNUAL RETROFITTECH MENA SUMMIT AND AWARDS Advanced Conferences & Meetings +971 4 563 1555; - ww.acm-events.com 16-18 Apr CITYSCAPE ABU DHABI Informa Middle East +971 4 407 2528; [email protected] www.informaexhibitions.com

BAHRAIN 18-21 Mar MIDDLE EAST OIL AND GAS SHOW AND CONFERENCE UBM +973 17 550033; [email protected] www.meos19.com 23-25 Apr INTERIORS EXPO Hilal Conferences & Exhibitions +973 17 299123; [email protected] www.hilalce.com

EGYPT 19-21 Mar EG MEDIA TECH BME Events +2 02 2 5644116; [email protected] www.thebmegroup.com 27-30 Mar CITYSCAPE EGYPT Informa Middle East +971 4 407 2528; [email protected] www.informaexhibitions.com 31 Mar - 2 Apr AFRICA FOOD MANUFACTURING Informa Middle East +971 4 407 2528; [email protected] www.informaexhibitions.com

QATAR 29 Apr -1 May PROJECT QATAR IFP +961 5 959 111; [email protected] www.ifpexpo.com

SAUDI ARABIA 18-21 Mar SAUDI BUILDING AND INTERIORS EXHIBITION Al Harithy Exhibitions +966 2 654 6384; [email protected] www.acexpos.com 26-29 Mar SAUDI FOOD, HOTEL AND HOSPITALITY Al Harithy Exhibitions +966 2 654 6384; [email protected] www.acexpos.com 5-7 Apr CITYSCAPE JEDDAH Informa Middle East +971 4 407 2528; [email protected] www.informaexhibitions.com 14-16 Apr INTERSEC Al Harithy Exhibitions +966 2 654 6384; [email protected] www.acexpos.com 29-30 Apr KSA MANUFACTURING AND INDUSTRIAL TECH SHOW Advanced Conferences & Meetings +971 4 563 1555; - ww.acm-events.com

OMAN 17-19 Mar COMEX - IT, TELECOM AND TECHNOLOGY SHOW OITE +968 2465 6000; [email protected] www.oite.com 15-17 Apr OMAN DOWNSTREAM Oman Expo +968 2466 0124; [email protected] www.omanexpo.com 16-18 Apr GLOBAL HIGHER EDUCATION EXHIBITION AND CONFERENCE OITE +968 2465 6000; [email protected] www.oite.com 22-24 Apr OMAN ENERGY AND WATER Oman Expo +968 2466 0124; [email protected] www.omanexpo.com 25-27 Apr OMAN REAL ESTATE EXPO Oman Expo +968 2466 0124; [email protected] www.omanexpo.com

78 executive-magazine.com 10 – 13 MARCH MADINAT JUMEIRAH DUBAI

BUILDING BETTER CREATIVE STRATEGY: SAY GOODBYE TO A SHORT-TERM MINDSET

CREATIVITY TRANSFORMS. FIND OUT WHAT THAT MEANS FOR THE INDUSTRY AT DUBAI LYNX. dubailynx.com #dubailynx

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79 March 2019 LAST WORD By Rena Timsah

Bridging the gap Thirdly, the study debunks the com- Factors keeping Lebanese youth unemployed monly held assumption that the Syrian crisis has increased the unemployment On the one side are Lebanese To improve their communica- rate in Lebanon. The study focused on youths eager to work, on the other are tion skills, the report recommends recruitment trends for Palestinian and local employers looking for staff. So that Lebanese youth attend life skills Syrian youth and found that they often why are businesses—especially those courses when possible; Mercy Corps take jobs requiring intense physical la- based outside of Beirut—not recruit- currently offers such classes at its bor in the agriculture, environment, ing more local youth? This question three branches of Bussma, local youth and construction sectors—and are not was the driving force behind Mercy community centers (in Saida, Tripo- competing with locals in other sec- Corps’ Youth-led Market Assessment li, and Barja). The report also sug- tors. These sectors are shunned by lo- (YLMA) in 2018. gests that technical, vocational, and cal youth, who are pushed by societal The YLMA explored the reasons educational training institutes across pressures into careers in the banking, why youth were not penetrating the la- Lebanon include soft skills training in services, or public sectors. bor market in three areas of the coun- their curriculums. On the other hand, employers ad- try: Saida, Tripoli, and Barja (Mount Secondly, the study found that mitted to preferring to hire Palestin- Lebanon). It was conducted as part unemployed youth in Lebanon (Leb- ians and Syrians as they can do so for of a three-year Canadian-funded pro- anese, Syrian, and Palestinian) were lower wages, no benefits, and no offi- gram aimed at protecting youths’ well- pursuing careers that did not match cial contract. But these youths rarely being and providing better opportuni- market needs. Work trends in Leba- make managerial positions, and some ties, particularly in those three areas. non are geared toward industrial jobs employers stated they always hire Leb- The study interviewed 800 employers in, for example, agro-food and STEM, anese for positions in direct contact and involved 75 local youth volunteers but youths surveyed planned to pur- with customers. as researchers, as well as Remark, a sue careers in photography, design, The results of this study were shared Beirut-based research consultancy acting, dancing, and sport. Trade ca- with another 2,000 youths living in that is studying livelihood opportuni- reers in demand, such as electricians the three target areas over the last six ties for Lebanese, Syrian, and Palestin- and mechanics, are shunned in favor months, with information sessions to ian youth and their families. of accountancy or marketing studies. help them better understand how to Three main findings were gleaned Social standards can play a role here; approach labor market opportunities. from the research. Firstly, the largest a director at a vocational training in- Syrian and Palestinian youth were en- barrier to Lebanese youth employ- stitute cited a huge demand for waste couraged to seek safer jobs with better ment found was a lack of communi- management and sanitation special- legal protection of their rights. Leba- cation skills. Almost 60 percent of the ists, but said that Lebanese students nese youth were told to pay attention surveyed employers, who worked in refuse to go into this field as it is to market needs and specialize in jobs industries including retail, manufac- deemed shameful. in demand. Mercy Corps also called on turing, pharmaceuticals, services, and To break this disconnect between employers to develop an “open-door F&B, cited poor communication skills the careers in demand and the careers policy” toward youth by creating short- as a factor preventing those aged 16-25 studied, the report recommends that term internships and mentoring oppor- from being employed (compared with technical, vocational, and education- tunities. As for the government’s role, just 8 percent raising the inability to al training institutes and universities the study suggests it should invest more work under pressure, 7 percent poor provide more information to pro- in local businesses to increase job va- teamwork skills, and 6 percent poor spective students about in-demand cancies and invest in developing young time management). When asked to jobs—thought by the interviewed people’s skills to better integrate them elaborate, participants highlighted a employers to be in retail, creative in- into the labor market.

perceived inability of youths to talk to dustries (such as jewelry design and Rena Temsah is the senior communication and customers, to accept criticism, and to our craftsmanship), agriculture/ago- advocacy coordinator at Mercy Corps Youth express themselves adequately. food, and tourism. For Tomorrow program 80 executive-magazine.com THE ALL NEW 2019

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82 executive-magazine.com