INVESTMENT OPPORTUNITIES IN 2017

investinlebanon.gov.lb NABATIEH I. BASELINE ANALYSIS OF NABATIEH The Nabatieh governorate is divided into 4 districts which are among the largest in South (Nabatieh, , , & Marjeyoun)

LEBANON’S 8 GOVERNORATES NABATIEH GOVERNORATE’S 4 DISTRICTS

IDAL 2017 BASELINE ANALYSIS It covers a total area of 1,058 km2, with Nabatieh accounting for 29% of the governorate’s total area size

AREA SIZE OF DISTRICTS IN NABATIEH GOVERNORATE DISTRIBUTION OF NABATIEH AREA SIZE BY DISTRICT

NABATIEH TOTAL AREA SIZE = 1,058 KM² % OF TOTAL LEBANESE TERRITORY = 10.1%

Source: LocaLiban IDAL 2017 BASELINE ANALYSIS However, it is the least populated governorate in Lebanon with accounting for 54% of the governorate population

DISTRIBUTION OF THE LEBANESE POPULATION DISTRIBUTION OF NABATIEH POPULATION BY DISTRICT % I 2016 % | 2016

NABATIEH TOTAL POPULATION = 276,285

Source: LocaLiban, IDAL’s Calculations IDAL 2017 BASELINE ANALYSIS The governorate is home to only 9% of poor households in Lebanon, which could be explained by the high incidence of external migration & remittances

CONCENTRATION OF POOR HOUSEHOLDS PER GOVERNORATE LEBANESE EXPATRIATES SEEKING A JOB ABROAD % | 2014 % I 1991-2000

Source: World Bank.National Poverty Targeting Plan, 2015 Source: Information International, 2001 IDAL 2017 BASELINE ANALYSIS This emigration also explains the low unemployment rate of 6% in Nabatieh below the national average of 6.4%

UNEMPLOYMENT RATE BY GOVERNORATE % | 2009

Source: The Labour Market in Lebanon - Najwa Yacoub, Lara Bdre 2011 IDAL 2017 BASELINE ANALYSIS II. COMPETITIVE ADVANTAGES OF NABATIEH The competitive advantages of the district will be assessed along 4 dimensions

DIMENSIONS FOR ASSESSING NABATIEH

1. ACCESS TO RESOURCES 3. ACCESS TO MARKETS Natural Resources Infrastructure Economic Activities ACCESS TO HUMAN CAPITAL Export Activities ACCESS TO FINANCE Technical & Vocational Schools Banks & Financial Institutions Universities 2. Labor Pool 4.

IDAL 2017 COMPETITIVE ADVANTAGES 1 The governorate is mostly composed of agricultural and natural areas…

MAP OF LEBANON’S DOMINANT LAND USE MAP OF NABATIEH DOMINANT LAND USE

Main agricultural area Mixed rural area Natural area Urbanized area Area of large agglomeration

Source: Council for Reconstruction & Development, 2005 IDAL 2017 COMPETITIVE ADVANTAGES 1 …And has access to water resources with 3 rivers spanning the region rendering the agriculture sector the 3rd employer in the region

MAJOR RIVERS IN NABATIEH GOVERNORATE DISTRIBUTION OF LABOR FORCE IN SOUTH LEBANON & NABATIEH % SHARE I 2007

Source: Fanack Source: Central administration of statistics, 2007 IDAL 2017 COMPETITIVE ADVANTAGES 1 Around 85% of the cultivated land in Nabatieh are used for the cultivation of olives

NABATIEH PERMANENT CULTIVATED LAND PER PRODUCE AGRICULTURAL MAP OF LEBANON (%) % | 2015 % | 2010

NABATIEH TOTAL PERMANENT CROP PRODUCTION = 12,875 HA % OF TOTAL LEBANESE PERMANENT CROP PRODUCTION = 10%

Source: Ministry of Agriculture IDAL 2017 COMPETITIVE ADVANTAGES 1 25% of olive oil mills are located in South Lebanon and Nabatieh region which produce around 21% of the Lebanese olive oil

DISTRIBUTION OF OLIVE OIL MILLS DISTRIBUTION OF OLIVE OIL PRODUCTION % | 2016 % | 2016

Source: IDAL IDAL 2017 COMPETITIVE ADVANTAGES 1 26 cooperatives in the region are benefiting fromL’Olio de Libano project that aims at developing the olive oil value chain in 11 districts in Lebanon

L’OLIO DE LIBANO PROJECT OLIVE OIL COOPERATIVES DISTRIBUTION OF COOPERATIVES OF L’OLIO DE LIBANO PROJECT

Source: L’olio de Libano, Italian Agency for Development Cooperation IDAL 2017 COMPETITIVE ADVANTAGES 1 More than 586 companies are available in Nabatieh with the majority operating in the services sector

DISTRIBUTION OF FIRMS PER SECTOR IN NABATIEH 2015

TOTAL = 586 % OF SERVICES - RELATED COMPANIES = 58% % OF TOTAL NUMBER OF COMPANIES IN LEBANON = 29%

Source: Ministry of Finance, IDAL’s Calculations IDAL 2017 COMPETITIVE ADVANTAGES 1 On the industrial front the majority of the firms are located in Nabatieh district …

DISTRIBUTION OF INDUSTRIAL FIRMS PER DISTRICT IN NABATIEH 2016

*This source only considers firms with at least 8 employees. Source: Directory of Exports & Industrial Firms in Lebanon, 2015-2016, IDAL’s Calculations IDAL 2017 COMPETITIVE ADVANTAGES 1 …In addition to the pottery making industry in Rachaya Al Fekhar, the only region in Lebanon specializing in handmade pottery crafts…

POTTERY CRAFTS IN RACHAYA AL FEKHAR

Rachaya Al Fekhar is home to workshops that specialize in the production of douaks—traditional Lebanese drinking pitchers—which are decorated with geometric designs. POTTERY CRAFTS Rachaya Al Fekhar Cooperative (RFCP) support by USAID project LIVCD aims at enhancing pottery production in the region and becoming a center for training and recreational activities for youth in the area.

Source: Live Love Lebanon IDAL 2017 COMPETITIVE ADVANTAGES 1 …and which can serve as artisanal cluster in Lebanon

SWOT OF POTTERY/CERAMICS CLUSTER IN RACHAYA AL FEKHAR

STRENGTHS OPPORTUNITIES

More than 200 qualified skilled artisans Globally growing segment of handmade crafts Availability of raw materials Global presence of Lebanese expatriates Heritage of this profession since 100 years who have interest in importing handmade Proximity of all the agents in the value chain craft from their home country in the same district Rising demand among local young Crafts are able to suit Gulf & European taste generation for simple but eccentric design Access to finance throughKafalat Crafts Considerable number of fairs & exhibition loans (up to USD 200,000) venues which provide additional retail opportunities Arrival of more than 1.6 Million tourists, one of the largest buyer segments of handicrafts in Lebanon

Source: IDAL IDAL 2017 COMPETITIVE ADVANTAGES 1 Nabatieh’s Districts also offer endless opportunities of cultural and eco tourism activities…

MAP OF LEBANON’S TOURISTIC ATTRACTIONS MAP OF NABATIEH’S TOURISTIC ATTRACTIONS

Ecological tourism

Summer health, thalassotherapy

Ski resorts

Cities supporting tourism development Picturesque village

Cedars corridor

Regional park

Source: Council for Reconstruction & Development, 2005 IDAL 2017 COMPETITIVE ADVANTAGES 1 …With more than 138 natural and eco-touristic attractions

NON EXHAUSTIVE ECO-TOURISTIC ATTRACTIONS IN NABATIEH’S DISTRICTS

NUMBER OF SITES Spring Al Khawabi, Al Hamam Cave, Spring Al Horriya, Ain Mkadous, Ain Yazoun BINT JBEIL Pine Woods Reserve of , Ain Mizrab, Al Khan Spring 46 Al Wadi wal Jazira Cave

Al Hir Valley Al Aqabeh Well HASBAYA Khalet Al Maghara Al Hasbani Cascade 20 Old Village Fountain

Spring Al Saghira Ain Al Fawwar MARJEYOUN Ain Al Balad, Ain Al Habathira, Ain Al Mafariq, Ain AL Tineh, 22 Ain Sibil, Al Hafour Spring, Wadi Al Hujair

Spring Al Dahab Al Roueiss Vineyards NABATIEH Al Saltaoun Spring, Al Jilkheh river, Loulakh 50 Spring, Al Zahrani river, Al Boustan Spring

Source: Live Love Lebanon IDAL 2017 COMPETITIVE ADVANTAGES 1 However, the region offers a limited number of hotels to cater for an active eco-tourism activities leaving significant opportunities to develop new hotels chains

DISTRIBUTION OF 3 TO 5 STARS HOTELS IN LEBANON (% SHARE I 2017)

TOTAL NUMBER OF HOTELS IN SOUTH LEBANON = 14 TOTAL NUMBER OF HOTELS IN NABATIEH = 3 Source: Syndicate of Hotels Owners in Lebanon IDAL 2017 COMPETITIVE ADVANTAGES 2 Nabatieh is home to 13% of the country’s public technical schools and 12% of its private technical schools…

DISTRIBUTION OF PUBLIC TECHNICAL SCHOOLS DISTRIBUTION OF PUBLIC TECHNICAL SCHOOL STUDENTS BY GOVERNORATE BY GOVERNORATE 2015-2016 2015-2016

NUMBER OF STUDENTS = 8,074 RATIO OF STUDENTS/SCHOOL = 245

Source: The Center for Educational Research & Development, 2016 IDAL 2017 COMPETITIVE ADVANTAGES 2 ...In addition to SouthBIC, the business innovation center with an outreach location in Nabatieh aiming at developing the entrepreneurship activity in the region

SOUTHBIC BUSINESS INNOVATION CENTER

CREATED IN 2013 SERVICES NUMBER OF INCUBATED COMPANIES Incubation space services Training MORE THAN Marketing services 8 COMPANIES Access to finance assistance (investment financing, HAVE BENEFITED company valuations, as well as investor matching) FROM SOUTHBIC Product development and quality SERVICES Legal clinic

Source: www.southbic.org IDAL 2017 COMPETITIVE ADVANTAGES 2 10 universities are available in South Lebanon & Nabatieh with around 51,000 registered students…

DISTRIBUTION OF REGISTERED STUDENTS IN SOUTH LEBANON & NABATIEH 2016

TOTAL NUMBER OF STUDENTS = 51,038

Source: Ministry of Education & Higher Education, IDAL Analysis IDAL 2017 COMPETITIVE ADVANTAGES 3 …with 29% graduating with a degree in Business Administration & Law and 19% in Engineering hence the need to offer opportunities to engage youth in these fields

DISTRIBUTION OF BA STUDENTS IN SOUTH LEBANON & NABATIEH PER MAJOR 2016

Source: Ministry of Education & Higher Education, IDAL Analysis IDAL 2017 COMPETITIVE ADVANTAGES 3 It is situated around 30 min away from the port of Saida, which is under development to be able to receive medium and touristic vessels

MAP OF LEBANON’S TRANSPORTATION INFRASTRUCTURE PORT OF SAIDA

CURRENTLY RECEIVES SMALL SIZE VESSELS

Source: Council for Reconstruction & Development, 2005 IDAL 2017 COMPETITIVE ADVANTAGES 3 In addition to the presence of Tebna Industrial City, 20 min away from Nabatieh

LOCATION OF TEBNA INDUSTRIAL CITY TEBNA INDUSTRIAL CITY CHARACTERISTICS

Source: IDAL IDAL 2017 COMPETITIVE ADVANTAGES 4 Nabatieh accounts for only 3% of total commercial bank branches in Lebanon which explains the region’s small share of commercial loans

DISTRIBUTION OF COMMERCIAL BANKS BRANCHES IN LEBANON DISTRIBUTION OF COMMERCIAL BANKS LOANS IN LEBANON % I 2017 % I 2015

Source: Association of Lebanese Banks, IDAL Analysis IDAL 2017 COMPETITIVE ADVANTAGES The competitive advantages of the governorate can be summarized as follow

DIMENSIONS FOR RATING NABATIEH 1. 2. 3. 4. ACCESS TO RESOURCES ACCESS TO HUMAN CAPITAL ACCESS TO MARKETS ACCESS TO FINANCE

Natural Resources: Technical and Vocational Infrastructure: access to Financing: 3% of the country’s - 3 rivers and fertile land Schools: around 13% of the the Saida seaport (30min) and commercial bank branches - 10% of Lebanese permanent countries vocational schools and proximity to Tebna industrial crop production one business innovation center zone (20 min) - 25% of total olive mills in the country Universities: 10 universities with around 51,000 students. The Economic activities: majority of students graduates in - 21% of Lebanon’s olive oil business & law, and engineering production - 29% of firms in Lebanon (58% Labor pool: are services-related) specialized in services

IDAL 2017 COMPETITIVE ADVANTAGES III. INVESTMENT OPPORTUNITIES IN NABATIEH Potential clustering options for the Nabatieh Governorate

POTENTIAL CLUSTER OPTIONS FOR NABATIEH

IDAL 2017 INVESTMENT OPPORTUNITIES