Freed from a gilded cage, a famed Saudi investor returns to the markets

by cnbc.com --Kate Kelly -- Saudi Arabia's best-known investor is back in the market. Prince Alwaleed bin Talal, a longtime investor in international businesses including Citigroup, Twitter, Lyft and the Four Seasons hotel chain, announced a $270 million transaction with the French music-streaming company Deezer on Thursday. The Deezer investment is the prince's first big international deal since January, when he was released from a three-month detention at the Riyadh Ritz-Carlton hotel by Saudi government officials. That lockup, from which the prince emerged grayer and thinner, was part of what Saudi officials called an anti-corruption crackdown that ensnared many of the kingdom's elites. Saudi officials said at the time that they had reached a settlement with the prince allowing his release. Prince Alwaleed maintained he was innocent, saying his detention was the result of a "misunderstanding." Under the terms of the deal, the prince will receive shares of Deezer in exchange for exclusive audio and video content from the Saudi media company he controls, Rotana Group. In a statement, Prince Alwaleed said the agreement "represents one of the many premium investments that we have always sought for our shareholders."

The deal was made through the prince's investing vehicle, Kingdom Holding Company, whose business he had said he was able to conduct during his stay at the Ritz. Still, his detention raised sharp questions about Prince Alwaleed's future autonomy, including whether he could continue to invest freely in international companies and property. The prince has made an effort to show a warm rapport with Saudi officials since his release. In February, he announced a $500,000 investment in local soccer clubs. Visitors to Kingdom's website, which says it manages $12.5 billion in assets, are now greeted with a disclaimer that the government "is in full confidence" of Kingdom Holding Company. Going forward, Prince Alwaleed is primarily interested in investments in media and technology, said Kacy Grine, an investment banker and adviser to the prince. "I think the next step for the prince would be to do the same on the TV and movie side," Mr. Grine said, adding that Netflix or Amazon were potential deal partners. The Deezer deal, Mr. Grine said, is "by definition a comeback, compared to the situation a few months ago." Prince Alwaleed could not be reached for comment.

Lebanese PMI survey shows rapid private sector contraction

Reuters BEIRUT: Activity in Lebanon’s private sector shrank at its fastest rate since October 2016 in July, as efforts to form a new government three months after parliamentary elections made no headway, a survey of companies showed on Friday. The seasonally adjusted Blom Purchasing Managers’ Index (PMI), compiled by IHS Markit, fell to 45.4 in July from 46.0 in June. The index has been below 50 — signalling contraction — since mid-2013, but has shrunk at varying rates. In a note accompanying the survey, its authors said the results meant “we can assume that the implied GDP growth in Q3 2018 could be lower than one per cent”. The central bank has said it expects a rise in gross domestic product of two per cent this year and the International Monetary Fund has forecast 2018 growth of 1-1.5 per cent. Two former pillars of the economy, Gulf Arab tourism and high-end real estate, have suffered in Lebanon. The country’s public debt stood at more than 150 per cent of GDP at the end of 2017, one of the highest in the world. The survey’s authors said businesses had cited the uncertain political landscape, combined with cash flow issues as weighing heavily on demand in July. After the May 6 parliamentary election — the first in nine years — Saad Al Hariri was designated to stay on as prime minister and form a new government. But despite pleas for Lebanon’s rival parties to agree on a new cabinet quickly to settle economic nerves and embark on the reforms called for by the IMF, there is no sign of progress. Surveyed companies were pessimistic about future output prospects, the PMI said.

‘Chicken coop’ thwarted at Lebanon’s electricity company

by english.alarabiya.net -- Lebanon’s electricity company known as “Electricite du Liban” announced Thursday that it will take “disciplinary measures” against a staff member who was breeding chicken at the company’s Beirut headquarters, after the incident went viral on social media amid mounting criticism of the authority which is riddled with corruption. EDL said in a statement that “the necessary measures have been taken against the employee” who was breeding chicken in a coop in one section of the building , adding that “other administrative measures will be taken to avoid the repeat of such actions which tarnish the institution’s image.” The statement comes days after pictures of chicken cages at EDL offices went viral on social media, with many Lebanese making sarcastic jokes out of this miserable reality where electricity hardly comes. Many took to tweeter to vent their dissatisfaction, while some made fun of the situation.

The company stressed that the subject received more attention than it deserved and caused “significant moral damage to the institution.” Lebanese media reported that a video had circulated on social media showing wooden cages and electrical egg incubators on the third basement floor near the parking area of EDL’s main building. The cages contined of chickens, quail chicks and eggs. A group of inspectors from the Central Inspection Department later discovered the coop. The birds, whose noise could be heard from the building’s entrance, indeed were benefiting from 24-hour electricity, light, warmth, and appropriate nutrition, according to a report by local news channel MTV.

Lebanese banks return Saddam's hidden millions to Iraqi authorities

by thenational.ae --The head of Lebanon’s Association of Banks said on Thursday that the country’s financial sector had returned to Iraqi authorities nearly all money hidden in Beirut banks by officials under former dictator Saddam Hussein. The announcement came the day after the head of Lebanon’s General Security branch, Maj Gen Abbas Ibrahim, said that a joint operation with Iraqi authorities had prevented a $1 billion fraud scam targeting Iraqi branches of major Lebanese lenders. He announced that some suspects had been arrested. Joseph Torbey, the head of the banking body that represents the major Lebanese lenders, said during a media conference on Thursday that the network had exploited the history of Iraq with its recent change of regime and targeted the Lebanese banking sector "within a framework of organized crime." Lebanese investigators claim that the Iraqi network brought Iraqi individuals who share the same names as members of the former Saddam regime to the Lebanese banks and requested access to millions of dollars in deposits from before 2003. Some of the members supplied forged documents to support their claims.

Lebanon's Tyre, Sidon sea proved suitable for swimming: media

BEIRUT, (Xinhua) -- Sidon's sea in South Lebanon is clean, safe and suitable for swimming, according to tests conducted by American University of Beirut, reported the National News Agency (NNA) on Wednesday. "The Environmental Core Laboratory at the university took three samples from different areas in Sidon's sea to conduct the tests," said the statement, quoting head of Sidon's municipality Mohammad As Saudi. As Saudi said that Sidon's municipality conducts tests every six months and the results always turn to be in conformity with international standards. Earlier this week, head of Tyre municipality Hassan Dbouk said that Tyre's sea is also free of contamination, adding that "the rumors aimed at destroying tourism in this city." The remarks came after a series of reports released about the coastal water pollution, the first being published by Al-Akhbar newspaper in June, saying that no region in Lebanon is free from pollution and advising people not to swim in the sea anymore. These reports were confirmed by head of the Lebanese Agricultural Research Institute (LARI), Michel Efram, who said earlier in June that Lebanon's water is mostly contaminated in varying degrees. "The pollution is bacterial and chemical, with significant ratios of heavy metals, particularly mercury," he said, pointing out that the institute has conducted a survey on the quality of water across Lebanon and reached an outcome: 100 percent pollution. Meanwhile, Mouin Hamze, Secretary General of the National Council for Scientific Research, launched a report on July 19, saying that 16 locations out of 25 on the Lebanese coast are clean and suitable for swimming. Water activities in four locations were classified as acceptable and five areas as very contaminated and cannot be used for swimming.

Lebanese Army celebrates 73rd anniversary

The Daily Star BEIRUT: Lebanon’s top brass gathered at the Shukri Ghanem Barracks in Fayyadieh Wednesday morning to celebrate the Lebanese Army’s 73rd anniversary, at a ceremony where a new class of officers graduated. Army chief Gen. Joseph Aoun led the proceedings, which were attended by President Michel Aoun, Speaker Nabih Berri and Prime Minister-designate Saad Hariri. At the event, President Aoun issued the graduating class of officers their sabers. He announced that the class will be named the class of “Fajr al-Joroud,” referring to the operation roughly a year ago that saw militants pushed out of Lebanon’s northeastern outskirts. The militants, including Daesh (ISIS) and Jabhat Fatah al-Sham – formerly known as the Nusra Front – had been holed up in the rugged area since briefly overrunning the northeastern border town of Arsal in 2014. During a speech, the president praised the Army as the country’s most stable bulwark. “In times of war, the Army defends the borders, preserves the land, restores dignity and sovereignty and repairs the holes in the wall of national unity and coexistence,” he said. “In times of peace, the Army has to shoulder the responsibility of preserving security, the gains of stability as well as the aspirations of the Lebanese citizens.” The president went on to call for continued cooperation with the United Nations peacekeeping force in Lebanon to protect the country. “Your role is always paramount in protecting our south from Israel’s covetousness,” he said.

The president also commended the Army for “safeguarding Lebanon’s commitments, including the implementation of [United Nations Security Council] Resolution 1701, while Israel continues to violate this resolution and still occupies part of our territories.” Hariri weighed-in on the festivities on Twitter, saying, “On this day and every day, we commemorate our military martyrs and the sacrifices of every individual in our armed forces so that Lebanon may remain free and sovereign.” Later in the day, the Army chief visited the president at Baabda Palace with a military delegation. He thanked the president, who himself had formerly headed the Army, for his unwavering support. “We promise you that we will continue to carry out the required operations ... until the ship that you lead arrives at the safe shore,” the Army commander said in remarks to the president. The Army was founded on Aug. 1, 1945, under the command of former President Gen. Fouad Chehab, two years after the country gained independence from France. A version of this article appeared in the print edition of The Daily Star on August 02, 2018, on page 2.