What is the TSEZ Authority mandated to do?
The TSEZ Authority is mandated to plan, administer, develop and regulate the zone. One of the primary functions of the TSEZ Authority is to issue licenses, permits, work authorizations and ensure the continued compliance of tenants in the zone. The board of directors is the highest governing body of the TSEZ Authority. It is currently made up of a president and six members from the private sector. The board is committed to good corporate governance, best international practices and sound and transparent working mechanisms.
What are the TSEZ’s unique selling points compared to other SEZ in the region?
The only such economic zone situated in Lebanon for companies wanting to establish a presence in the country Substantial financial and nonfinancial incentives that compare favorably with those of other SEZs in the region Market access to regional trade blocs such as the Pan Arab Free Trade Agreement ( PAFTA), the EU Association agreement and the free trade agreement with Turkey Strategic geographical location providing easy access to the Arab region through Syria to Iraq, Turkey and the Gulf; only 80km from the Beirut International airport Situated in the second largest city in Lebanon thus leveraging human resource and raw material capacities in Tripoli and in its peripheral areas Promising platform for the establishment of upstream and downstream companies for future oil and gas exploration off the Lebanese shores Adjacent to the newly expanded Port of Tripoli that is strategically located only 30 km from the Syrian border (relatively low berthing, cargo, storage and terminal handling fees; quay depth of 15 m with a plan to increase to 17 m; containerized cargo handling by Gulftainer) Availability of skilled and highly creative and multilingual labor force Attractive Lebanese culture and lifestyle for expatriates Entrepreneurial dynamic private sector and free market economy Attractive investment promotion law that can be leveraged
Is the land in the TSEZ based on purchase or rent?
All land in the zone is based on rent with a 30-year lease.
Can foreign investors establish projects in TSEZ?
Foreign investors can establish projects in TSEZ without the need for local partners. In fact, 100 percent foreign ownership is permissible in the zone.
What are the companies that can establish in the TSEZ?
All types of manufacturing and service companies can invest in the zone except for tourism-related companies.
When was the TSEZ established and how large is it?
The TSEZ law (law number 18: Development of the Special Economic Zone in Tripoli) was ratified by Parliament on September 5, 2008. All related implementation decrees were subsequently issued in 2009. the board of directors was appointed in April 2015. The TSEZ is around 50 hectares or 550,000 square meters in area.
How strong is the Government’s support of TSEZ?
The focus of the Government is on long term economic development of the country and specifically of the north of Lebanon as opposed to short term financial gains. The project has gained the approval of all political stakeholders in the country and is regarded by all parties to be the gateway for creating much needed job opportunities and improving the livelihood of Tripoli and the North.
What is the development plan of the TSEZ and when is it expected to be completed?
The area specified for the TSEZ is currently being reclaimed. Expected completion of the reclamation works is mid 2017. Thereafter, infrastructure works on the zone will begin and completed in early 2020.
What industrial sectors is the TSEZ focusing on?
The TSEZ is open to all types of manufacturing and industrial activities. It is particularly attractive in various sectors such as agro food, chemicals, plastics, electronics, furniture, metal fabrication and warehousing, to name a few.
What incentives does the TSEZ offer?
Financial incentives 100 percent exemption on imported raw materials Duty free export of finished goods Duty free import of construction material, equipment, office machinery and spare parts Exemption from dividend tax for tenants 100 percent exemption on local sales and excise tax for goods and services destined for export 100 percent exemption on profit tax and salary tax 100 percent exemption on building permit fees and built property tax Total capital and profit repatriation Unrestricted currency conversion Exemptions of securities (bonds and shares) from all taxes and duties Non financial incentives 100 percent foreign ownership permissible Up to 50 percent foreign labor No limitation on local market sales as a percentage of production No nationality conditions for board of directors representation Equal treatment between foreign and local investments No restrictions (export licenses) for local suppliers selling products to firms in the zone