Investment Opportunities in Nabatieh 2017
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INVESTMENT OPPORTUNITIES IN NABATIEH 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 Lebanon (Nabatieh, Hasbaya, Bint Jbeil, & 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 Nabatieh district 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 Ebel, 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