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Lebanon peace key to luring investment - Slim

18 March 2010

BEIRUT: The World’s Richest Man, Carlos Slim, told an assembly of government ministers and Lebanese economic leaders on Tuesday that “peace in Lebanon is essential for future investment.”

Slim, 70, was addressing a conference of delegates organized by Minister of State Adnan Kassar on the subject of Lebanese investment opportunities and the development of some of its service industries.

Slim also urged the Lebanese officials in attendance to “make water, electricity and telecoms accessible to 100 percent of the population of Lebanon.”

“It helps [Lebanon’s investment hopes] that Lebanon is such a beautiful place,” Slim said. “But first it is so important to have a good power system. Power should be available to all, and we should unite to ensure this happens in a way that doesn’t harm the environment.”

Slim also indicated how a strong water system could benefit Lebanon’s electricity issues.

“Water is very important; it is a renewable and recyclable resource. The problem is with investment, investment in water and electricity,” the tycoon said.

Slim stressed the importance of a cheap and competent water supply and was critical of Lebanon’s lack of water plants.

“It cannot be that water only comes from one water plant; you see banks on every street but there is only one water plant,” Slim said.

The telecoms magnate also offered some practical advice to ministers on how such a system could be implemented.

“Water should be subsidized after 30 liters, for example, and the rest of the cost should be cheaper and more competitive.”

Once initial government investments have been made, Slim believes private investments will then follow.

“The government can be making investments in water and electricity as well as education and creating subsidies for these services,” said Slim.

“This can then bring private investors that will then bring competition and the situation will only get stronger,” Slim said.

With telecommunications being Carlos Slim’s field of expertise, he was insistent on an improved telecoms industry.

“Communications needs to be cheaper, more competitive and more modern. These challenges should be universal, it is very important that 100 percent of the population has access to these services, not 50 percent but at least near 100 percent,” said Slim, adding that “broadband and fiber-optics should be used to improve the telecoms service in Lebanon.”

Tax generation and usage was rarely off the agenda with Slim even offering advice for profiting from Beirut’s traffic problems.

“The roads should be tolled as a way raising taxes for the improvements. The subsequent taxes can then go to retirement and benefit systems.”

Slim’s visit the country has been hailed by many Lebanese as a vote of confidence in the country’s economic future.

The son of a Lebanese immigrant who fled to Mexico in 1902, Slim has amassed what is now the greatest personal fortune in the world, owning so many companies he has “lost count” although the figure is believed to be over 200.

Slim remained coy throughout on the issue of investing his wealth in Lebanon, although this did not deter Adnan Kassar, who expressed his confidence in a forthcoming windfall.

“I am confident if he finds that it is in his interests [he will invest], we are businessman,” Kassar told The Daily Star. “I believe we will find ways and means but I’m sure he will find a project that brings him benefit.”

Ironically, the conference was constantly disturbed by cellular signals interfering with the buildings public address system and often tested the patience of the delegates and guest of honor.

© Copyright The Daily Star 2010.