Upon the initiative of the Chairman of the Lebanese Chambers Mohamed Choucair, the Lebanese – Saudi Business Council (LSBC) was re-established in October 2017 and resumed its activities in the aim to enhance the economic relations between Lebanon and Saudi Arabia Kingdom in line with its mission and within the planned activities for the year 2018.

Presided by Mr Raouf Abou Zaki, the LSBC Board comprises the following prominent Lebanese figures in the Saudi business arena: Nehme Tohme and Samir Al Khatib as Vice Presidents, Fawzi Farah as Treasurer, Rabih Sabra as General Secretary, Jihad Arab, Saad Azhari, Wajib Bizri, Fadi Gemayel, Salah Osseiran, Henri Sarkissian, Motaz Sawaf and Nizar Younes.

With President Aoun at Baabda Palace

A delegation from SLBC in the presence of Lebanon’s ambassador in Saudi Arabia Mr. Fawzi Kabara, the President of CCIAT Mr. Toufic Dabousi and Vice Pesident of CCIABML Mr. Mohamed Lamaa visited President Michel Aoun at Baabda Palace on March 23^rd and discussed issues pertaining to the advanced relations between Lebanon and Saudi Arabia, the upcoming visit of the Lebanese economic delegation to Saudi Arabia, as well as the Saudi-Lebanese Economic Forum to be held in Beirut in 2018. During the meeting, President Aoun stated that “ the Lebanese-Saudi relations are very positive”, reassuring the Lebanese-Saudi Business Council, that “nothing could disrupt the relations between the two countries”, emphasizing on the strategic and fraternal ties that have historically linked Lebanon and Saudi Arabia and expressing Lebanon's openness to all forms of mutual collaboration at all levels. President Aoun added that the first official visit following his designation as President of the Republic was conducted to Saudi Arabia to express appreciation to this country and its leaders.

Abou Zaki, noted that relations between the two countries will witness positive developments in the near future as the Lebanese Saudi official High Committee has been convened to meet soon, predicting “a promising summer with regard to Saudi and Gulf visitors to Lebanon.” “We are at the beginning of a period of breakthrough with the Kingdom, at a time when Saudi Arabia is undergoing important structural reforms and huge investment opportunities in infrastructure projects will be accessible to Lebanese enterprises,” Abou Zaki added that the current stability and the series of legislations that were endorsed by the government under Aoun’s leadership shall provide a favorable environment for the Cedar conference and encourage Arab and international investments in the foreseen infrastructure projects.”

President Michel Aoun with the LSBC delegation at Baabda Palace

With the Chargé d’Affaires of the Saudi Embassy Mr. Walid Bukhari

An extended delegation of the LSBC met with Mr. Walid Bukhari the Chargé d’Affaires at the Embassy of Saudi Arabia in the presence of the Lebanese ambassador in Saudi Arabia Mr. Fawzi Kabara, the MOET DG Mrs. Alia Abbas, the Customs DG Mr. Badri Daher, the President of CCIAT Mr. Toufic Dabousi and other representatives from the business community.

During the meeting, Bukhari stated that the economic cooperation between KSA and Lebanon would soon witness important developments that would restore the “golden age” of bilateral relations.
The Saudi-Lebanese High Joint Committee is expected to convene in June 2018 to discuss around 27 draft agreements laying the formal frameworks for bilateral relations in various fields namely trade, transport, customs, culture, defense and other.  He also considered that these agreements would constitute a qualitative turning point in the formal structure of relations, adding, "This shall be accompanied by visits whether at the level of the public or private sectors."

Bukhari underlined that “This meeting comes at a time when the Saudi economy is entering into a positive stage with the implementation of the Saudi Vision 2030. The aim is to diversify the economy, enhance the role of the private sector and launch a new phase of sustainable development, which will be full of opportunities for Lebanese and Saudi investors alike,” Bukhari said, noting that businessmen would be required to pursue efforts to strengthen these relations, particularly through the Lebanese-Saudi Business Council.

For his part, Abou Zaki stressed that the kingdom has always been alongside Lebanon and appraised the efforts put by Al Bukhari in order to boost bilateral relations. He applauded the instrumental role deployed so far by the kingdom in hosting and backing up more than 300 thousands Lebanese expats living, working and investing in Saudi Arabia. He also called upon the Saudi Arabia to support Lebanon investment program at the Cedar 1 conference on April 6^th in Paris. Abou Zeki added: “Lebanon looks to investment partnerships with KSA particularly in the infrastructure, oil and gas sectors underlying the LSBC intent to organize a Lebanese business delegation to Saudi Arabia”.

Chargé d’Affaires Walid Bukhari with the delegation of the Lebanese-Saudi Business Council

LSBC Survey highlights

Within its mission to enhance the Lebanese – Saudi bilateral economic relations, SLBC conducted an opinion online survey late 2017 among 700 targeted Lebanese enterprises that deal with the Saudi market in order to identify challenges and recommend the related measures. Some 80 companies answered the survey hence representing a response rate of 11.4% and the main results came as follows:

1.       General Info

-        88% of the total respondents were industrial exporters and consider that the KSA market is strategic to Lebanon.

-        59% had an annual turnover above 1 million US dollars.

-        95% of the surveyed companies were located in Beirut and Mount Lebanon.

-        Exporters of agro food products represented 30% of total no. of respondents whereas industrial equipment 26%, pharmaceutical and cosmetics 14% and services 13%.

-        86% considered that the private sector and LSBC are the two concerned parties to boost the bilateral relations.

-        75% of responses agree on the high cost of freight (sea and air) to the KSA markets.

2.       Hurdles

-        Obstructive administrative and legal procedures are ranked the highest in this category, followed by the costly fees, restrictive conditions and time constraints to obtain Saudi visa.

-        44% of responses confirmed that the political factors directly affect the bilateral economic relations.

3.       Expected Role of LSBC

Responses are ranked by order of importance:

-        Ensuring info about the Saudi market and companies comes the highest in this category

-        Resolving the obstacles faced by the Lebanese businessman

-        Facilitating terms of access to visa

-        Facilitating exchange of business visits and exhibitions.

Cadre 1- LSBC Goals

-        Developing and consolidating by all means the relations between the business communities of Lebanon and The Kingdom;

-        Promoting exports, exchange of goods, services and investment opportunities available to both countries ;

-        Facilitating exchange of information, reciprocal exhibitions and business delegations in both countries;

-        Lobbying with authorities of both countries to improve the investment and cooperation climate

-        Assisting in overcoming every obstacles faced by businesses from both sides;

-        Encouraging and promoting the establishment of joint business and investment projects in both countries ;

-        Encouraging the signature of bilateral agreements serving the economic interest of Lebanon and the Kingdom

-        Settling through ADR the commercial disputes that may arise among businessmen in both countries.

Cadre 2-LSBC members