INVEST IN THE MEDIA

IDALWho we are, what we do

ABOUT IDAL

ESTABLISHED IN 1994 with the aim of promoting Lebanon as a key investment destination, and attracting, facilitating and retaining investments in the country

GOVERNANCEIDAL reports to the President of the Council of Ministers who exercises a tutorial authority over it. It has �nancial and administrative autonomy

INVESTMENT LAW NO.360 was enacted in 2001 regulating investment activities in Lebanon IDAL is tasked with 2 Mandates:

– Investment Promotion. IDAL is an investment promotion agency which provides investors with a range of incentives and business support services

– Export Promotion. IDAL is also entrusted with the active promotion and marketing of Lebanese exports including agricultural and agro -industrial products.

THEINVESTMENT

DEVELOPMENTAUTHORITY

OF LEBANON(IDAL)

THE NATIONAL INVESTMENTPROMOTION AGENCY OF LEBANON

1

IDAL | 2015

INVESTMENT PROMOTION

• Provide economic, commercial and legal information of relevance to investors

• Identifies business opportunities across various economic sectors

• Provide in depth analysis of sectors

• Grant fiscal exemptions and fees reduction to investment projects

• Facilitate issuance of permits and licenses

• Provide on-going support for investment projects

• Actively promotes Lebanon as key investment destination

EXPORT PROMOTION

• Provide data on external markets

• Support companies in selected sectors in accessing external markets

• Provide promotional materials

• Subsidize participation in foreign fairs

• IDAL currently has in place 2 export promotion programs:

AGRI PLUS (2004): Which provides subsidies and support to exporters of agricultural products

AGRO MAP (2012): Which subsidizes the participation of agro food companies in foreign fairs licenses

OUR MANDATES 2

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IDAL Offers Investors a Range

of Services Throughout Their

Different Stages of Operation

1 Pre-Investment Stage MARKET INTELLIGENCEInformation on investment opportunities. Data on economic sectors with growth potential.Legal, financial, industrial information. Data on investment climate. Business Matchmaking support

2 Financing Stage

PACKAGE OF INCENTIVESFiscal incentives: Exemptions from corporate income tax generated by the project which can go up to 100% exemption for 10 years

Financial incentives:Fees reductions such as reduction on land registration fees

Non-Financial Incentives: Employees for the project are granted work permits with the support of IDAL

3 Licensing and after-care StageONE STOP SHOPIDAL serves as a One Stop Shop for Investors.We supersede all public administrations, authorities and municipalities in issuing administrative permits and licenses except those granted by the Council of Ministers. We follow up with investors after the start of their operations

Why focus on the Media sector

WHY THE MEDIA SECTOR1

Turnover of $ 1 billion

Constitutes 2.53% of GDP

Around 400 companies

Employing

2.11% of the workforce

Added Value of 55.3% MAJOR

CONTRIBUTOR TO THE

LEBANESE ECONOMY

Identifed here as the core copyright based industries which comprise of: Press and literature, music and theatricalproduction, motion pictures and video, radio and television, photography, software and databases, advertising.

IDAL | 2015

Media industry spans across several fields 2

Television Broadcasting

• Well-developed

• 10 terrestrial channels

• Penetration rate 93.4%

• Dominant advertising platform, nearly 38% of total ad spend, equivalent to USD 57.2 million

• Lebanon an ideal location to broadcast to the region and Arab Diaspora

Advertising

• Expenditure among highest in the region • Regional provider of media support services

• More than 150 agencies operating in country

• Online advertising growing steadily and is highly promising

Production and PostProduction

• 70 production companies operating in Beirut working at an average of 1000 shootings per year

• Around 20 pos-production facilities

• TV programs

• TV and Music Videos

• Film Production

IDAL | 2015

Media industry spans across several fields 3

Digital Media

• Most widely expanding within industry

• Main areas of specialty; animation, visual effects, digital games, digital publication, interactive designs

Publishing

•Home to one of the most dynamic publishing sectors in MENA

• 200 active publishing houses surpassing Egypt, Syria, and Jordan

Music

• Music recording and publishing industry consists of 1237 operators

• Employs 2,400 workers

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Why now?4

Why is there potential

• Mobile phone internet usage is 94% in the MENA and internet penetration rate is 40.2%, higher than the global average of 34.3%

• Surge in internet advertising expenditures, signaling great opportunities for content creation in web and mobile. Arab digital ad spending account for 9 % of total Arab ad revenues amounting to around USD 495 million and projected to reach USD 1Billion in 2017

Where are the opportunities

• The Opportunity to grow Arabic content: Arabic content presents the biggest opportunity for growth in the Middle East production market but this potential remains untapped

• Digital content is expanding rapidly: demand for arabic content largely outweights supply, less than 3%of content in the Arab region is in Arabic whereas more than 60% of users prefer Arabic content.

• Arabic film and TV production represent only 0.03% of GDP* in the MENA region way below other comparable markets. The Middle East contributed to just 0.72% of the films produced in the world between 2005 and 2010

• Digital gaming: Digital game sales expected to grow at 29% in the Arab World, while growing at a rate of 17% worldwide.Rise of mobile tv and webdrama

* based on Oliver Wyman study

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Mission Impossible 2

Braveheart

Pride and Prejudice

Troy

Captain Correlli’s Mandolin

Harry Potter

Lord of the Rings

Sense and Sensibility

Caramel, Where Do We Go Now

Australia

Scotland

England

Turkey

Greece

England

New Zealand

England

Lebanon

200%

300%

150%

73%

50%

50%

40%

39%

?

LOCATION

AVERAGE: 113%

TOURISM IMPACT OF FILM LOCATION*

Source: Walaiporn Rewtrakunphaiboon “Film-induced Tourism: Inventing a Vacation to a Location”Oxford Economics, “The Economic Impact of the UK Film Industry,” (June 2010), p.67; Oliver Wyman analysis.

Impact the film industry alone can haveon our economy

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What can IDAL offer

1OUR INCENTIVES

1- REGION & SECTOR BASED INCENTIVE 2- JOB CREATION BASED INCENTIVE

• Also called Investment Projects by Zone (IPZ) incentives

• Provided to projects based on: (1) Geographical location across 3 Zones: A, B, C (2) Investment size (3) Sector

Incentives Provided

• Up to 100% tax exemptions for 10 years for projects located in remote areas (Zone C)

• Work Permits granted

• Also called Package Deal Contract (PDC) incentives

• Provided to projects based on: (1) Investment size (2) Number of jobs created (3) Sector

Incentives Provided

• 100% exemption of Income Tax• 100 % exemptions on Taxes on Project Dividends for up to ten years• Up to a 50% reduction on Work and Residence Permit Fees• Up to a 50% reduction on Construction Permit Fees• Full exemption from Land Registration Fees

TWO TYPES OF INCENTIVE SCHEMES

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A- REGION AND SECTOR BASED INCENTIVE FOR THE MEDIA

Beirut

2

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ZONE C

100% income tax exemption for 10 years+ work permits granted

Minimum Inv. SizeUS$ 200,000

Media

IDAL | 2015

ZONE B

50% income tax exemption for 5 years+ work permits granted

Media Minimum Inv. SizeUS$ 200,000

100% income tax exemption for 2 years*+ work permits granted

Media

ZONE A

* Provided that 40% of stocks are listed on Beirut Stock Exchange

100% income tax exemption for 2 years*+ work permits granted

Minimum Inv. SizeUS$ 200,000

IDAL | 2014

IDAL | 2015

B- JOB CREATION & SECTOR BASED INCENTIVE 3

Sectors Minimum Inv.Size US$

Tourism 15,000,000

Industry 10,000,000

Agro-Industry 3,000,000

Agriculture 2,000,000

Technology, ICTand Media

400,000

200

100

60

50

25

MinimumJob Creation

4

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B- JOB CREATION & SECTOR BASED INCENTIVE 4

50%up to

Reduction on Workand Residence Permits

100%Exemption on IncomeTax for up to 10 years

100%Exemption on Taxes on ProjectDividends for up to 10 years

Land Registration Fees50%up to

Reduction on ConstructionPermit Fees

categories

Obtaining WorkPermits of

ZERO

ALL

CONTACTUS

INVESTMENT DEVELOPMENTAUTHORITY OF LEBANON

IDAL | 2015

Lazarieh Tower, 4th Floor, Emir Bechir Street, Riad El-Solh, Beirut, LebanonP.O.Box: 113-7251www.investinlebanon.gov.lb

T + 961 (1) 983306/7/8 F + 961 (1) 983302/3

invest@idal.com.lbexport@idal.com.lb

@Invest_Lebanon

/investmentdevelopmentauthorityoflebanon

/InvestInLebanon

/InvestInLebanon

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