issue number 120 |July 2012 JUSTICE COUNCIL HALF OF THE LEBANESE ARE NATURALIZED “THE MONTHLY” INTERVIEWS EMILEI HAYEK www.iimonthly.com # Published by Information International sal FOREIGN ACQUISITION OF PROPERTY 65 THOUSAND NON-LEBANESE OWN OVER 34.8 MILLION M2 Lebanon 5,000LL | Saudi Arabia 15SR | UAE 15DHR | Jordan 2JD| Syria 75SYP | Iraq 3,500IQD | Kuwait 1.5KD | Qatar 15QR | Bahrain 2BD | Oman 2OR | Yemen 15YRI | Egypt 10EP | Europe 5Euros July INDEX 2012 4 FOREIGN ACQUISITION OF PROPERTY 8 JUSTICE COUNCIL 14 ELECTORAL REALITY AT THE QADA’A OF KOURA DISTRICT 17 HALF OF THE LEBANESE ARE NATURALIZED 18 THE LOST TRUTH BETWEEN USD 11 BILLION AND LBP 8900 BILLION 20 CENTRAL ADMINISTRATION OF STATISTICS P: 42 P: 26 22 LBP 110 MILLION FOR THE CAR OF THE MINISTER OF FOREIGN AFFAIRS 23 POST-TRAUMATIC INTERCOSTAL NEURALGIA: DR. HANNA SAADAH 24 THE FULL CONTROL OF THE SECRET OF LIFE: ANTOINE BOUTROS 25 EATING DISORDERS: WHEN NUTRITION AND PSYCHOLOGY COME TOGETHER: DR. MICHEL NAWFAL 26 INTERVIEW: EMILE HAYEK P: 20 28 VIDEO GAMES 29 NOBEL PRIZES IN MEDICINE (2) 42 QUARRIES OF THE FATTOUSH FAMILY 32 MAKHZOUMI FOUNDATION 43 MAY 2012 HIGHLIGHTS 34 POPULAR CULTURE 46 SYRIAN PEOPLE’S ASSEMBLY ELECTIONS 35 DEBUNKING MYTH #59: HYPNOSIS 47 REAL ESTATE PRICES IN LEBANON - MAY 36 MUST-READ BOOKS: ME, MODERNITY AND A 2012 SHE’IR MAGAZINE 48 FOOD PRICES - MAY 2012 37 MUST-READ CHILDREN’S BOOK: “NEGLECTED ADVICES” “FORGETFUL DONKEY” 50 LARGEST NUMBER OF ENERGY CONSUMPTION AROUND THE WORLD 38 LEBANON FAMILIES: NAQASH FAMILIES 50 BEIRUT RAFIC HARIRI INTERNATIONAL 39 DISCOVER LEBANON: AIRPORT - MAY 2012 40 CIVIL STRIFE INTRO (5) 51 LEBANON STATS LEBANON 2012 4 | LEADER FOREIGN ACQUISITION OF PROPERTY 65 THOUSAND FOREIGNERS WITH OVER 34.8 MILLION M2 \ from the community. The Christian Zu’ama feel threatened by this phenomenon as most of the property sold is of “Christian ownership” while the majority of investors are “Muslim Arabs”, which plunges the matter into a religious and political sphere. MP Boutros Harb proposed a draft law banning Lebanese nationals from selling land to their counterparts from different religions. As Muslim Zu’ama remain silent and express no concerns over this subject, the Maronite Patriarch and other Christian leaders are urging Christians to preserve their land for fear of losing their identity. In compliance with the recommendations of the highest Christian authorities, the bishops and monasteries formed a committee of Christian investors to purchase the property of prospective Christian sellers. However, this move failed to curb sales to non-Christian and non-Lebanese investors, especially since they pay substantial amounts of money that defeat all spiritual and religious appeals soliciting Christians to retain their land. Although the Lebanese law has not, so far, placed any Foreign property acquisition faded later with only restrictions on the acquisition of land by Lebanese 1 million m2 set aside between September 1, 2010 nationals from different religious groups, Law No. and February 18, 2011. The decline manifested itself 11614 dated January 4, 1969 and its subsequent [ amendments, notably Law No. 296 dated April 3, thousand m2, and this trend continued to linger in the 2001 have governed the foreign ownership of property [ according to the following: It is prohibited to grant real estate rights to Decreased land acquisitions in 2011 and early 2012 are individuals who do not hold the nationality of a attributed to: recognized state and to all other individuals if their The unrest in Syria and other Arab countries and its acquisition of property contradicts the constitutional spillover on Lebanon provisions regarding naturalization. This legal The dramatic rise in prices in the Lebanese real text aims, according to the Lebanese legislator, at !!! banning the Palestinians from acquiring land in The concern raised every now and then in protest of Lebanon in order to prevent naturalization. foreign acquisition of property Foreigners have the right to acquire up to 3000 m2 The decline in the areas suitable for construction of land across the Lebanese territory. Acquisition of due the purchasing operations and the expansion in a larger area entails a Cabinet decree that is usually construction issued in a spontaneous and regular manner after The resignation of the government in early 2011 [ and the delay in the formation of a new government Foreign real estate property shall not exceed 3% of the total surface of the Lebanese territory, with a cap Status quo of foreign acquisition of property of 3% of the surface of a particular Qada’a and 10% Table 2 highlights the following matters: of that of the Beirut Mohafaza. The total area owned by the non-Lebanese to date amounts to 35 million m2, which constitutes 0.335% Decline in acquisitions of the total Lebanese territory and remains far from Table 2 shows that the total property that has been the limit set by the law at 3%. It is noteworthy acquired by foreigners from January 4, 1969 until April however, that the foreign owned property is in its 5, 2006 stands at 15.8 million m2 against 18 million entirety suitable for construction and investment m2 in the four years between 2006 and 2010, which and might represent over half of the total Lebanese exceeds the total amount of property acquired in 37 land appropriate for such purposes years. issue 120 | The Monthly is published by Information International s.a.l. LEADER | 5 The highest acquisition rate in the Aqdiyah reaches Table 1, one decree was passed in 2011 entitling nearly the maximum limit allowed in Baabda the Kuwaiti ambassador to Lebanon to divide the (2.629%) and Aley (2.148%) and in the Mohafaza property he had acquired by virtue of a previous of Beirut where 6.724% out of the 10% set by the decree into small estates. law are acquired by foreigners. Land acquisitions in the rest of the Aqdiyah are still at minimum levels. From the beginning of this year until late April, there were 8 decrees allowing foreign ownership of Whereas foreign acquisition of property registered !/* lower rates in a number of Aqdiyah such as Nabatieh, decrees were the ruler of the United Arab Emirates, Western Beqa’a, Zahle, Koura and Chouf last year, !;!!<; \!#$!& = ' + # / ! '*+#'!'* largest acquisition operation (18,378 m2), which was approved in the Cabinet during a session held on Foreign ownership of Lebanese property has January 25, 2012. The draft decree stated that Araya reached 64,590 owners compared to 25,793 in 2006. is located in the Qada’a of Aley, but it turned out it The average size of an acquired property dropped belongs to the Qada’a of Baabda, so the Cabinet re- from 614 m2 to 540 m2. approved the property acquisition decree on February 28, 2012 after correcting this error. The concerned There were no decrees authorizing foreign parties assert the error was inadvertent, while others acquisition of property in 2011 (properties over 3000 argue that it was deliberate as licensing foreigners m2) and the operations covered only small areas. '*! * ! especially that the foreign property acquisition rate is Foreign acquisition of property decrees in 2011 approaching its limit there (3%). However, a certain until late April 2012 compromise managed to decrease the rate in Baabda A number of decrees allowing foreigners to acquire from 3% to 2.7%, thus allowing the correction of cadastral rights in Lebanon were issued in 2011 until the decree and the licensing of property acquisition late April 2012. Such decrees are necessary to approve there rather than in Aley where 2.148% of property is the acquisition of an area over 3000 m2 or of several acquired by foreigners. areas, with a total exceeding 3000 m2. As shown in Foreign acquisition of property decrees Table 1 2 Name and nationality of land Date and No. of the decree Location Area m owners Kuwait’s Ambassador to 7186 Joun- Chouf 22,973 Lebanon Abdul Al Suleiman 16-12-2011 Qta’i- Kuwaiti 7404 923 (in addition to 2792 m2 Salman Hammoud As-Salman 19-01-2012 Hammana- Baabda acquired previously) Al-Sabah- Kuwaiti 7436 Mtayleb- Matn Mohammad Bin Khalifa Al-Thani- 25-01-2012 Kfardebian- Kessrouan 1942/67 Qatari 7473 440 (in addition to other areas Khalifa Bin Zayed Bin Sultan al 06-02-2012 Saqiyit Misk- Bhersaf- Matn acquired previously) Nahyan- Emirati 7516 08-02-2012 Ashrafieh- Beirut 212 Rizk Hospital Co. 7517 08-02-2012 Ras Beirut- Beirut 805 LAU 7713 Hekmat Bin Abdul Hamid al- 12-03-2012 Ain Sawfar- Aley 3,057 Zai’im 7756 Araya- Baabda 18,378 Falah Bin Jasim Bin Jabr Bin 15-03-2012 Mohammad Al Thani- Qatari 7983 Dlebta- Kessrouan 7,700 Muqren Bin Abdul Aziz Al-Saud- 14-04-2012 Saudi Source: Official Gazette issue 120 | July 2012 6 | LEADER Evolution of the foreign acquisition of real estate rights in Lebanon from January 1, 1969 until January 11, 2012 Table 2 No. of foreign owners No. of foreign owners and No. of foreign owners and and respective property respective property area respective property area area from 1-1-1969 from 6-4-2006 until 31- from 1-9-2010 until 18- until 5-4-2006 8-2010 2-2011 Mohafaza Qada’a Qada’a area m2 # Area (m2) # Area (m2) # Area (m2) Bint Jbeil 325,000,000 1 1,014 - - - - Marjeyoun 330,000,000 2 5,558 89 1,325,678 19 3,540 Nabatieh Nabatieh 270,000,000 70 62,482 135 184,353 -1 6,240 Hasbaya 290,000,000 - - 9 18,840 1 2,423 Hermel 381,665,497 11 65,765 41 407,561 - - Western 480,000,000 67 80,869 131 403,374 4 -5,541 Beqa’a Beqa’a Baalbeck 2,412,000,000 195 298,270 254 1,382,967 -4 30,487 Rashaya 530,000,000 14 19,305 62 80,176