BEIRUT: Chairman and general manager of the Investment Development Authority of Lebanon (IDAL) Nabil Itani on Wednesday said a portion of the massive remittances from Lebanese expatriates should be invested in real projects not just deposited in banks. “Lebanon ranks as one of the first countries in the Middle East and North Africa (MENA) region in terms of remittances received from expatriates and only 10 percent of the money is used for investments in projects while the rest are used for covering other personal expenses,” he said. 

His remarks came during a press conference held at the Chamber of Commerce, Industry and Agriculture in Beirut for the launching of Planet Lebanon 2010. 

Also known as the sixth world conference of the Lebanese International Business Council (LIBC), Planet Lebanon 2010, will witness the largest gathering of elite local and expatriate Lebanese and Arab businessmen. 

It will take place on June 29-30, 2010, at Beirut International Exhibition and Leisure center (BIEL) under the patronage of President Michel Sleiman. 

Itani said that the objective behind this event is to strengthen the Lebanese economy by attracting expatriates to their country as investors and not just as tourists.

Ghazi Koraytem, president of the Chamber of Commerce, Industry and Agriculture in Beirut and Mount Lebanon, said that Lebanese expatriates’ remittances contribute to 25 percent of GDP. “They also contribute to strengthening ties between Lebanon and other countries in addition to the great role it plays in preserving the economic and social security in the country,” he said. 

According to Byblos bank’s Lebanon this week, the World Bank estimated remittance inflows to Lebanon at $6 billion in 2008, constituting an increase of 4 percent from $5.77 billion in 2007 and compared to $5.2 billion in 2006 and $4.9 billion in 2005. It added that Lebanon was the third-largest recipient among 12 countries in the MENA region coming behind Egypt and Morocco. 

Head of the research department at Byblos bank Nassib Ghobril said that 65 percent of demand in the real-estate market in Lebanon comes from expatriates. “Lebanese expatriates contribute to 75 percent of tourism activity in Lebanon, 80 percent of foreign direct investments and constitute the key driver for the increase in deposits in the Lebanese banking sector,” he said. 

Another report issued by Byblos bank also states that remittances account for 27 percent of Lebanon’s current account receipts, the highest such share in the region. 

It added that a significant decline in expatriates’ remittances to Lebanon would hurt its current account balance the most among remittance dependant economies in the MENA region, according to a study by Standard and Poor’s. 

Tourism Minister Elie Marouni said that the contribution of Lebanese expatriates to the tourism activity in the country is sufficient for the success of the Lebanese tourism sector. 

“There are so many projects that are [in the works] in Lebanon like schools, and a lot of expatriates are spending money in the aim of developing their areas,” Marouni said. 

On the other hand, Itani’s comments were echoed by the chairman of the Lebanese International Business Council (LIBC) Nassib Fawaz, who argued that the public sector must move forward with critical improvements in the economy at large. 

He cautioned that, while many business connections were made at previous Planet Lebanon gatherings, and more connections will likely be made at this year’s gathering, many steps must be taken to improve the business climate. 

“Even for the Diaspora, a person does want to move funds to a place unless you know that there is some stability, some possibility for profit,” he said. 

While the private sector is very active and there is a lot of interest from the Diaspora to invest in the Lebanese economy, “the government is also important, to create stability, and an environment where people want to come and invest,” said Fawaz. 

Fawaz also asked for the establishment of a strong and well-structured expatriates ministry in addition to allowing Lebanese citizens throughout the world to participate in Lebanese elections from their countries of residence.