NNA - Caretaker Minister of Economy and Trade, Amin Salam, currently on a working visit to Washington, held a meeting at the American Chamber of Commerce with representatives of the American private sector, with the participation of 30 of the largest companies operating in the energy, water, and transportation sectors.
The meeting was devoted to reviewing the situation in Lebanon in light of the exceptional circumstances it is going through.
Addressing the attendees, Salam said, “The difficult economic and financial conditions do not negate the existence of many areas and opportunities in which the American private sector can invest," and encouraged taking this step for the benefit of both countries. "The best example is French and other investments in the field of energy, marine facilities, and other basic sectors," he added.
However, Salam regretted the absence of comprehensive legislative reforms in Lebanon, which preferably should be part of the International Monetary Fund program, due to sharp political differences and the struggle for power for narrow, non-national interests. “If political parties do not take a quick decision to save the country, Lebanon’s economic and financial future in the near and medium term will be bleak, impacting its potential as a destination for foreign investment,” cautioned Salam.
He considered that the matter depends on how the long-awaited economic and governance reforms are implemented, attracting international aid and foreign investment, stabilizing the exchange rate, recapitalizing the financial sector, and restructuring the banking sector.
"These are basic reforms that require seriousness and time, but they can be accompanied by huge investments in basic infrastructure such as energy, water, transportation, health, and the environment,” Salam underlined, noting that Lebanon still enjoys the legal foundations of a free market economy, a highly educated and diverse workforce, and limited restrictions on investors.
Salam continued to indicate that “the most attractive sector is the energy sector, especially in terms of renewable energy production, and oil and gas exploration, despite the still-existing challenges due to corruption and lack of transparency."
He also pointed to the historical attraction towards the tourism, information technology, and communications sectors in the country.
Finally, Salam stressed continuous contact with international investors in an effort to maintain a positive future vision, especially with Lebanese expatriates who are considered major potential investors at the national level. Yet, he highlighted the need to address some areas of concern for investors in Lebanon, such as excessive regulation, arbitrary licenses, outdated legislation, ineffective courts, high taxes, weak infrastructure, and a deteriorating banking system. "These are reforms that can be worked on quickly to attract Lebanese expatriate investors in the first stage of the development and recovery process,” Salam asserted.
==========R.Sh.
