A glimpse of light for some businesses in Lebanon as they cope with coronavirus
January 15, 2021, 10:58 am

A glimpse of light for some businesses in Lebanon as they cope with coronavirus

Ali Hammoud, the founder of Mounet Em Jamal, focuses his business on homemade jams, labneh, olives, pickles and olive oil, all of which are prepared by his mother. (Supplied)

Lebanon's severe economic crisis, along with the coronavirus pandemic, has provided challenging conditions for businesses to survive. Still, some have been able to find light during these rough times after an outpour of community support for local businesses and talents.

As Lebanon rang in the New Year, putting 2020 behind its back was not an easy task, given that the consequences of the chaotic events that unfolded last year are still felt today.

Lebanon was hit by Covid-19 and by an economic crisis that saw triple-digit inflation and the Lebanese pound depreciating by almost 80 percent since the nationwide anti-government protests, which broke out on Oct. 17, 2019.

The currency had been pegged to the US dollar since 1997, at 1,507.5, as Lebanon was and still is highly dependent on imported goods.

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This was exacerbated by the devastating Port of Beirut explosion last August and that destroyed half of the city, crushing many businesses that were already struggling to keep their doors open.

The World Bank estimated that the massive blast caused between $3.8 billion and $4.6 billion in damages.

In a statement released this week, The World Bank estimated that around 1.7 million people in the country are expected to fall under the poverty line. Of those, approximately 840,000 people will be under the food poverty line.

An opportunity for local businesses

Despite the difficult situation, some local and home-based businesses saw increased support for their work.

Layal Khaled is one of those.

“This I received a lot of feedback from customers saying that they were buying my products because they wanted to support local artists due to the situation,” Khaled, who works with wires to create different art products, told Al Arabiya English.

The 29-year-old artist showcases her products on her Instagram page, Smiles for Miles, which she started in 2017 as a source of extra income.

Initially, she did this in the summers, but during her maternity leave in December 2019, she decided to take on working on her art.

In comparison to when she first started, Khaled said that she had seen an increase in purchases over the past year.

In addition to people’s willingness to support local products, the coronavirus pandemic also contributed to the increased number of clientele in Khaled's case.

“Previously, people would have preferred to see items live themselves before buying them, but with the coronavirus and the lockdown, they were … forced to buy online.”

Despite the ongoing crises and the risks that come with it, others saw in the worsened economic situation a possibility to start their own small business.

For 29-year-old Ali Hammoud, the founder of Mounet Em Jamal, the economic situation and the need for an extra source of income to support his parents pushed him to embark on this journey last July.

Hammond’s business focuses on homemade jams, labneh, olives, pickles and olive oil, all of which are prepared by his mother.

“Since the Lebanese pound has depreciated, this means that not everyone can afford to buy imported products,” Hammoud, who has been living in France for 10 years, said.

“Hence, the initiative was based on the equation of benefitting ourselves and others providing quality products at affordable prices.”

Hammoud said that they started slowly with limited quantities until people were more encouraged to try their products. With the help of social media, Mounet Em Jamal soon became popular.

Although Hammoud and his parents are relatively new to the business, he said he could “sense support” from the community for his initiative given the country’s economic situation.

“The economic collapse encouraged people to try to find an opportunity during these times to produce locally,” he said, noting that if the collapse worsens, it will also affect the sustainability of these businesses.

Consumer and community support

Nour Hakim, 30, has been buying local products from small businesses for the past year.

As a consumer and a client, Hakim said that her purpose was to support these businesses during tough times.

“I am supporting them, and at the same time, in return, I am getting very good quality products with good customer service and delivery,” Hakim said. “I am going to continue this year for sure.”

The community support was also felt by former banker Gisane Yamak, who, along with a group of friends, launched an initiative ahead of the holidays to encourage people to buy from small businesses.

The initiative focused on donating gifts to children across Lebanon, and those willing to contribute would make purchases from local businesses.

Yamak, 45, resorted to social media platforms to share posts about the products they provide, something she was already doing since November as a personal initiative.

“The target was to reach 1,000 gifts. But, we exceeded that target to reach 2,200 gifts, supporting between 20 and 25 businesses selling different items,” she told Al Arabiya English.

Yamak said she hoped that this encouragement among business owners and clients would continue despite the ongoing crises and the challenges facing businesses with no online presence to promote their work.

“Such initiatives are to tell people that these will pass if we act together,” she said.

source: Ghinwa Obeid

Levant

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.