Lebanon offers a wide range of financial support schemes ranging from commercial loans at preferred rates to VC Funds for investors looking to finance their business:

• COMMERCIAL BANKS LOANS

  Commercial Banks are the main providers of capital for SMEs. Lebanon boasts one of the highest ratios of commercial branches to population among regional and international peers.

• KAFALAT FUNDING SCHEME

  Kafalat is a company that provides guarantees for loans granted by commercial banks to SMEs engaged in the following economic sectors: Industry, Agriculture, Tourism, Traditional Crafts and Technology. www.kafalat.com.lb.

• VC FUNDS

  The Lebanese landscape has recently witnessed the surge of Venture Capital firms, investing in the early stages of innovative companies to grow their business.

• ISME WORLD BANK FUND

  A USD 30 million fund recently allocated by the World Bank to the Lebanese government to finance seed and early growth companies. www.worldbank.org

• FARO LEBANON FUND

   

• A seed capital development and orientation fund to help SMEs that provide innovative products or services. www.ccib.org.lb

• IDAL INCENTIVE SCHEMES

  IDAL offers investors operating in the fields of Industry, Agriculture, Agro-Industry, Tourism, Information Technology, Technology, Telecommunication, and Media a set of financial incentives to encourage investments. www.idal.com.lb

Investments in Lebanon benefit from insurance against political risks provided by The National Investment Guarantee Corporation (NIGC), ensuring new investments by Lebanese or foreign commercial companies against political risks, civil strife, riots, confiscation and expropriation.

Other main investment insurance programs operating in Lebanon include:

• Multilateral Investment Guarantee Agency (MIGA): A member of the World Bank Group, MIGA provides guarantees to investors and lenders. It protects investments against non-commercial risks and can help investors obtain access to funding sources.
• Overseas Private Investment Corporation (OPIC-US): Delivers finance innovations that help U.S. businesses successfully enter, grow and compete in emerging markets.
• COFACE (France): Offers companies a full and modular range of products with the aim of optimizing their trade receivables management: credit insurance, factoring, services of business information, debt collection and invoice management.
• Export Credits Guarantee Department (ECGD- UK): Complements the private market by providing assistance to exporters and investors, initially in the form of insurance and guarantees to banks.
• Hermes Kreditversicherungs-AG (HERMES-Germany): Provides tailored solutions for risk management and problems of turnover control and security.
• Istituto per i Servizi Assicurativi e il Credito all'Espotazione (SACE-Italy): In addition to credit insurance, SACE provides integrated credit management solutions.
• Inter-Arab Investment Guarantee Corporation (IAIGC): Offers insurance coverage for Arab and non-Arab investments in Lebanon and all its member countries against non-commercial risks.

A scheme mainly designed for small and medium-sized projects, to support projects located in regions with the highest levels of socio-economic challenges.

The criteria used to determine an investment project's eligibility for this scheme include:

• The project's geographic location
• The project’s investment size (capital investment)
• The project’s sector type.

Through this scheme, an investor mainly receives the following incentives:

• Exemptions from corporate income tax which can run up to (100%) for a period up to 10 years.
• Exemptions from project dividend taxes which can run up to (100%) for a period up to 10 years.
• Obtaining the immediate issuance of work permits in all categories.

A scheme mostly for large scale projects which have a high impact on employment.

The criteria used to determine an investment project's eligibility for this scheme include:

• The project’s investment size (capital investment)
• The number of jobs created
• The project’s sector type

Through this scheme, an investor receives the following incentives:

• (100%) Exemption from corporate income tax for a period that can run up to 10 years.
• (100%) Exemption from project dividends taxes for a period that can run up to 10 years.
• (100%) Exemption from Land Registration Fees.
• Up to (50%) Reduction on Work and Residency Permit Fees.
• Up to (50%) Reduction on Construction Permit Fees.
• Obtaining the immediate issuance of work permits in all categories.