Business models of attracting foreign investment in Lebanon

Abstract

Lebanon remains a country of openness to foreign direct investment and the Lebanese economy still has sufficient solvency to attract investment. But from the other hand Lebanon is considered one of the top that refer to corruption in its economy, in addition the monopolism, a high rate of inflation, and high rate of unemployment. Many steps should be taken into consideration to change the situation as increasing productivity and efficiency, or public sector reform and decentralization: a modern and flexible government, fiscal policy: a new tax policy should be settled, and adopt a public-private partnership investment type. There is described the types of public-private partnership in the article according two basics: allocation of risks and responsibilities and commercial control over assets. PPP projects are characterized based on the following parameters: type of asset involved; functions the private party is responsible for (design, build or rehabilitate, finance, maintain, operate) and how the private party is paid. Thus, the author summarized three models of attracting foreign direct investment in Lebanon and suggested new model the essence of which is a creation of a new company (public party and investor) that provides all services and project each specialized in domain (building, operation, infrastructure and ect.).