When Foreign Minister George Lillykas goes to Beirut on Thursday to meet his Lebanese counterpart, he will undoubtedly be showered with words of praise from the Lebanese government for Cyprus’ rapid response and humanitarian support provided during the whole crisis these past six weeks.
However, once the diplomatic chit-chat is over, the two sides should look to some serious discussion with a view to cooperation to help rebuild Lebanon’s shattered infrastructure, that had only recently returned to normalcy after the 15-year civil war that plagued our neighbouring country.
Being a shrewd businessman, Lillykas is bound to take a whiff of what’s cooking and what the potential is for state-owned Cypriot corporations as well as private enterprises.
Although the conflict has delivered a serious blow to trade, tourism, construction and real estate development, that had been the main pillars of economic growth in recent times, the quick reopening of Beirut’s Rafiq Hariri airport should help start a wave of potential investors taking the 22-minute flight to snap up some bargains.
Opportunities had been available for the past few years in the tourism, telecom, hi-tech and services sectors, even in the utilities and recently consolidated banking sector, but few dared to venture with many fearing uncharted territory ahead.
There are many jewels to be had in Lebanon as its society is a consumer-driven cosmopolitan one that can survive on minimal earnings but with lavish spending.
Though the trading sector and micro-industries have been overcome with Asian imports, the volume of goods and the land transport connections to the greater Middle East and Gulf area alone should be seen as opportunities for Cypriot companies.
Partnerships and synergies are also credible areas of cooperation, as Cyprus companies can now expand beyond the traditional boundaries of the Greek market, that in turn opened up opportunities in the Balkans.
We have often written in comments in the past that Cyprus should also offer some of its infrastructure to Lebanese companies, while also becoming the stepping stone for European investors headed to Lebanon or the Middle East.
Cypriot businesses could contribute to Lebanon’s rapid reconstruction, but only if the conditions are right. Fuad Siniora’s government should seriously consider offering incentives and investment securities so that the handful of Cypriot businessmen that have put their money in Lebanon may soon grow to a large community of cash-rich and knowledgeable foreign direct investors.
The Lebanese are determined to pick up the pieces and continue from where they left off in rebuilding their nation. It is now up to others to decide if they want to join.
