Al Bawaba

The cumulative value of outward greenfield foreign direct investment (FDI) from Lebanon totaled $7.2 billion between January 2003 and May 2015, according to figures released by fDi Markets.Lebanon was the seventh largest source of greenfield FDI in nominal terms among 19 Arab countries during the covered period, behind the UAE ($297.4 billion), Bahrain ($68.4 billion), Kuwait ($66.5 billion), Qatar ($47.5 billion), Saudi Arabia ($41.4 billion) and Egypt ($19.8 billion).

The value of outward greenfield FDI from Lebanon accounted for 1.3 percent of total greenfield FDI projects from Arab countries between January 2003 and May 2015, as reported by Lebanon This Week, the economic publication of Byblos Bank.

The FDI figures cover cross-border greenfield projects that lead to the direct creation of jobs and capital investment. They include joint ventures when these transactions lead to a new physical greenfield operation, but exclude mergers and acquisitions and other equity investments. Owned by the Financial Times Group, fDi Markets is a database that tracks cross-border greenfield investments across the world.

On a country level, Iraq was the main destination of greenfield FDI from Lebanon with $3.7 billion or 51.8 percent of the total, followed by the UAE with $1.17 billion (16.2 percent), Syria with $283 million (3.9 percent), Sudan with $228 million (3.2 percent), Egypt with $163 million (2.3 percent), Jordan with $146 million (2 percent), the United Kingdom with $137 million (1.9 percent), Albania with $130 million (1.8 percent), Turkey with $125 million (1.7 percent) and China with $ 111 million (1.5 percent) as the top 10 destinations of Lebanese investments.

Further, Lebanese firms invested in 159 greenfield projects outside Lebanon between January 2003 and May 2015. Lebanon was the seventh largest source of greenfield FDI projects among 19 Arab countries, behind the UAE (2,456 projects), Saudi Arabia (526 projects), Kuwait (412 projects), Qatar (301 projects), Bahrain (206 projects) and Egypt (164 projects).

Also, the number of greenfield FDI projects from Lebanon accounted for 3.4 percent of such projects from Arab countries over the covered period. In parallel, 77 Lebanese companies invested in 114 greenfield FDI projects in Arab countries between January 2003 and May 2015 for a total of $6.1 billion. Iraq, the UAE and Syria accounted for 51 percent of the number of projects and for 85.4 percent of their value.

Make Oil AG was the top Lebanese firm investing in greenfield investment projects outside Lebanon with $3 billion or 41.7 percent of the total between January 2003 and May 2015. It was followed by Solidere with $753 million (10.5 percent), Al-Murad Company with $500 million (6.9 percent), Byblos Bank with $292 million (4.1 percent), Investcom Holding with $272 million (3.8 percent), Blom Bank with $266 million (3.7 percent), Bank Audi with $200 million (2.8 percent), Bank of Beirut with $179 million (2.5 percent), Patchi with $170 million (2.4 percent) and Seyouri Group with $146 million (2 percent); while other Lebanese companies invested $1.4 billion (19.8 percent) in 96 greenfield projects outside Lebanon over the covered period.