Business

BAGHDAD — Iraq is becoming a land of opportunity for Lebanese job-seekers fleeing a deep economic crisis back home.

Akram Johari is one of thousands who fled Lebanon's tumbling currency and skyrocketing poverty rates.

Last year, he packed his bags and boarded a plane from Beirut to Baghdad, using social media to search for opportunities.

"I didn't have enough time to look for a job in the Gulf," the 42-year-old said, explaining why he eschewed the more traditional path for those seeking economic opportunities in the region.

With its relative proximity and visas on arrival for Lebanese, the Iraqi capital seemed a good option.

"I had to take quick action, and so I came to Baghdad and began searching for work on Instagram," Johari said, speaking in a restaurant he has run for about a month.

Lebanon is grappling with an unprecedented financial crisis that the World Bank says is of a scale usually associated with war.

Beirut's crisis, driven by years of endemic corruption, has seen Lebanon's currency lose more than 90 per cent of its value against the dollar.

Lebanon's 675,000 pound monthly minimum wage now fetches around $30 on the black market, and about 80 per cent of the population now lives in poverty, according to the UN.

When he left Beirut, Johari was earning the equivalent of about $100 per month. In Iraq, he earns enough to support his family back home, he said.

Thousands flock to Iraq 

More than 20,000 Lebanese citizens arrived in Iraq between June 2021 and February 2022, excluding pilgrims visiting the Shiite holy cities of Najaf and Karbala, according to the Iraqi authorities.

Lebanon's ambassador in Baghdad, Ali Habhab, said that movement from Lebanon to Iraq "has recently multiplied".

There are more than 900 Lebanese businesses now operating in Iraq, the majority of them in the restaurant trade, tourism and health, Habhab said. 

In particular, there have been "dozens of Lebanese doctors who offer their services" in Iraqi hospitals, he said.

Iraq's decades of conflict — from the Iran-Iraq war of the 1980s, to the US-led invasion of 2003 and subsequent sectarian conflict, and on to the rise of Daesh in 2014 — means that Baghdad might appear to be an unlikely magnet for those seeking to build a new life.

But since the country declared victory over Daesh in 2017, Iraq has slowly started to recover its stability.

Today, streets in Baghdad that once witnessed atrocities are buzzing with shops lining main thoroughfares and cafes open late into the night.

According to Iraqi economic expert Ali Al Rawi, many Lebanese companies came to Iraq because they "know the investment environment well", while many foreign companies from other countries "fear investing" because of its violent past.

"There is a lot of space for Lebanese enterprises in the Iraqi economy," he said.

But Iraqis themselves have seen their fair share of economic hardship.

In a country where 90 per cent of revenues come from oil sales, roughly a third of the population lives in poverty, according to the World Bank. 

In 2019, nationwide protests erupted across Iraq, driven by anger over rampant corruption, the absence of basic services and unemployment — similar factors behind protests in Lebanon that erupted around the same time.

Lebanese firms flourish 

Lebanon was once a prime destination for medical tourism, as Iraqis flocked to better equipped medical centres in Beirut and other cities.

But, as with other sectors, Lebanon's economic crisis has hit healthcare.

The Beirut Eye & ENT Specialist Hospital was once popular with Iraqi patients, but an official at the hospital, Michael Cherfan, said that "many doctors had left Lebanon".

The hospital responded to the crisis in the way many Lebanese have — by opening a branch in Baghdad, sparing Iraqis the trip to Beirut.

"Our doctors come on a rotating basis," Cherfan said. "Every week, one or two doctors come and do consultations and surgeries, earn some money and then return to Lebanon, which helps offset some of their losses."

For Johari, while the money he earns in Iraq supports his family, it comes with a bitter taste. He flies home once a month, but he misses his family.

"It saddens me a lot that I can't watch my two-month-old daughter grow up," he said.

MADRID — Marta Ortega on Friday took the reins of Zara-owner Inditex, the group founded by her father, and faces an immediate challenge after the fashion giant closed shops in Russia, its second biggest market.

With neither fanfare nor ceremony, the 38-year-old daughter of multibillionaire Amancio Ortega took over the world's biggest fashion retailer and its 6,500 shops. 

"I begin this stage...with a deep sense of responsibility," Ortega wrote in a letter to the 174,000 employees of the group, which has eight brands including Massimo Dutti, Bershka and Stradivarius. 

"I ask for your support and patience while I continue to learn from everyone every day," she added.

The youngest of Ortega's three children, she was in charge of design and product launches across all of Inditex's brands before becoming chairwoman on Friday, taking over from Pablo Isla who had run the group since her father retired in 2011. 

As her father's right hand, Isla oversaw Inditex's massive international expansion over the past decade. 

Marta Ortega's promotion has been on the cards for several years but was only announced at the end of November as part of a reorganisation engineered by her father, now 86.

"We've been preparing for this transition for a while," said Isla at the time. "Marta has been working in the company for 15 years... she knows it very well".

Described as discreet and reserved, Marta Ortega was born on January 10, 1984 to the billionaire and his second wife Flora Perez, growing up in La Coruna in north-western Spain with her half-sister Sandra and half-brother Marcos.

After attending a Swiss boarding school and graduating in 2007 from the European Business School in London, she briefly worked on the shop floor at a Zara store in the British capital to understand how things operate.

Although she never said she was the Inditex owner's daughter, her colleagues told El Pais newspaper they quickly figured it out after noticing her Rolex watch.

"The first week, I thought I was not going to survive. But then you get kind of addicted to the store" she told The Wall Street Journal in a rare interview in August 2021. 

When her appointment was initially announced in November, it caused concern in the business community, triggering a fall in the company's share price but such fears appear to have evaporated. 

Although she has never held an executive role at Inditex, she is "well prepared" and will be "surrounded by good people" said Alfred Vernis, professor at Spain's ESADE business school and a former Inditex executive.

Working with her is Oscar Garcia Maceiras, who recently took over as chief executive of Inditex barely a year after joining the group from Spanish banking giant Santander.

"He will be the one who takes executive decisions," said Vernis. 

Difficult moment 

The change at the top comes at a pivotal time for the Galicia-based company which has chalked up record profits in recent years but is now facing one of its most difficult moments. 

Worth some 62 billion euros, Inditex nearly tripled its profits last year to 3.2 billion euros, but its outlook for 2022 has been overshadowed by Russia's invasion of Ukraine. 

At the start of March, the retail giant suspended all retail activity in Russia, its biggest market after Spain, shutting its 502 shops and suspending all online transactions. 

The move is likely to have a significant impact on its results, with the Russian market accounting for nearly 10 per cent of sales. 

"The current financial year promises to be very complex, due to Inditex's exposure in Russia and the rest of Europe" and "rising production costs" caused by record inflation, Credit Suisse said in a note.

Founded in 1985 by Amancio Ortega, Inditex must also strengthen its online offering in the face of stiff competition from other retailers. 

Above all, it must step up its "green transition" in order to reduce its environmental impact, which is huge. 

"Pablo Isla was doing it but not enough," said Vernis, indicating such an essential step "would cost" the company. 

Shares in Inditex closed up 1.67 percent at 20.11 euros.

AMMAN – Chinese technology company Huawei ranked ninth on Brand Finance’s list of the world’s top 10 most valuable brands in 2022. 

“It is a testament to the brand's sustained recognition and influence in global markets,” said Huawei Vice President of Global Communication Karl Song.

During a media round table on Monday, Song said that the company had maintained “solid operations” throughout the past year.

Song added that Huawei achieved $99.9 billion in revenue in 2021, and $17.8 billion in net profits, an increase of 75.9 per cent year-on-year. 

The company’s R&D expenditure reached around $22.38 billion in 2021, representing 22.4 per cent of its total revenue, and bringing its total R&D expenditure over the past 10 years to over $132.5 billion. 

Song added that the company also plans to continuously increase investment in R&D.

According to Song, in 2021, Huawei generated a net profit of $17.8 billion with a net margin of 17.9 per cent. Cash flow from operating activities grew by 69.4 per cent, and the company now has “plenty of cash on hand”, he said. 

Song added that Huawei’s liability ratio dropped from 62.3 per cent in 2020 to 57.8 per cent in 2021, further improving the capital structure.

“Last year, Huawei's carrier business remained stable,” Song added.

He stated that Huawei has worked with carriers and partners around the world to advance over 3,000 industrial 5G applications, and provided the best 5G user experience in 13 countries, including Switzerland, Germany, Finland, Holland, South Korea and Saudi Arabia. 

“Our enterprise business experienced steady growth,” said Song.

He noted that Huawei launched 11 scenario-based solutions for key sectors such as transportation, finance and energy. As well as established multiple integrated teams, including a Coal Mine Team, a Smart Road Team, and a Customs and Port Team.

Song stated that Huawei continued to see steady sales growth in smart wearable’s, smart screens, and Huawei Mobile Services throughout the year. In total, HarmonyOS was used on over 220 million Huawei devices and has attracted 1,900 eco-system partners.

Song stated that Huawei, along with their partners, have supported the digital transformation of more than 20 industries, including ports, manufacturing, coal mining, steel production, and chemicals. “To date, we have signed more than 3,000 commercial contracts for industrial 5G applications worldwide,” he said.

“We've also integrated digital, power electronics, energy storage, and heat technologies to more effectively manage watts with bits,” Song noted.

He added that Huawei aims at helping customers conserve energy and cut emissions. 

By the end of 2021, Huawei’s digital power solutions had helped customers generate 482.9 billion kilowatt-hours of green power and save 14.2 billion kilowatt-hours of electricity, Song said.

These efforts have resulted in a reduction of 230 million tonnes of CO2 emissions, the equivalent of planting 320 million trees, he added.

WARSAW — Poland on Wednesday urged the EU to tax Russian energy imports and said it planned to end its own purchases this year, calling dependence on Moscow a "stupidity".

The EU has so far avoided following the United States in banning Russian oil and gas, with Germany opposed as it relies heavily on supplies from the country.

"We don't want this dependence, but others use these raw materials, without worrying about the cruel war, the Russian aggression against Ukraine and blackmail," Polish Prime Minister Mateusz Morawiecki said at a press conference.

"We can no longer return to this stupidity, this bad and criminal policy which turned [countries] dependent on Russia," he said.

Morawiecki said it was crucial to "take this blackmail tool, this war tool away from Putin" as Russia used proceeds from energy exports to "build a war arsenal and be able to attack its neighbours".

The EU has announced plans to slash its imports of Russian gas by two-thirds this year.

Around 40 per cent of the EU's gas supplies came from Russia last year.

Before the Ukraine war, Germany imported 55 per cent of its natural gas from Russia, half its coal and around 35 per cent of its oil.

Morawiecki said an EU tax was necessary because Germany and other European countries were unwilling to stop buying Russian energy products, which tended to be cheaper, and the levy would "equalise energy prices in all of the European Union".

"Today I call on the European Commission to establish a tax on Russian hydrocarbons so that commerce and economic rules in the single European market can function in an equitable manner," Morawiecki said.

"I will strongly push for this idea in the European Union so that the situation is equitable from the point of view of market competition," he said.

The prime minister said Poland was hoping to wean itself off Russian oil and gas by the end of the year.

Morawiecki said legislation proposed by the government to ban Russian coal imports could come into force in April or May.

Climate Minister Anna Moskwa said Poland was technically ready to give up Russian sources of energy thanks to its network of pipelines and storage facilities.

Germany, meanwhile, raised the alert level under its emergency gas plan on Wednesday as fears rose that Russia could cut off supplies if Western countries refused to make payments in rubles.

AMMAN — The value of investment agreements and announcements secured on day two, Monday, at the Global Entrepreneurship Congress (GEC) in Riyadh reached almost $8 billion.

Announcements on the second day included $3.2 billion from the Small and Medium Enterprises Bank to finance new businesses, according to a statement from the organisers.

Saudi Arabia’s Ministry of Investment also announced licensing for international companies to enter the country’s domestic market, along with investments estimated at almost $1 billion.

Monsha’at, Saudi Arabia’s General Authority for Small and Medium-Sized Enterprises, signed a cooperation agreement with Al Rajhi Bank worth $533 million, and another agreement with the same bank to launch point-of-sale and fleet financing products.

Meanwhile Monsha’at signed cooperation agreements with the Saudi National Bank, one to support innovation worth $700,000, and another on financing products worth $266 million.

Governor of Monsha’at, Saleh Ibrahim Alrasheed, said: “We’ve had yet another successful day bringing forward investment for entrepreneurs at GEC to help nurture Saudi Arabia’s economy.”

“GEC 2022 marks the entrepreneurial rise of the Middle East, and of Saudi Arabia’s potential as an innovation hub for the region,” he added.

Monshaat signed an agreement with the Saudi Organisation for Auditors and Accountants and THIQAH Company to provide advice to entrepreneurs and launch the new "Etkal" platform.

The Ministry of Investment signed memoranda of understanding with SDAIA to support and encourage the SMEs and entrepreneurs. The Prince Sultan bin Abdulaziz Fund for Development signed a cooperation agreement to launch a business accelerator in the Eastern Province, and provide training programmes and workshops through Monshaat.

Albilad Bank signed an agreement to provide financing products in total of $520 Million. Also, the Arab National Bank launched a credit card for SMEs and other financial products and programs worth some $293 million.

This year’s GEC is being co-hosted in Riyadh by Monsha’at and the Global Entrepreneurship Network (GEN) under the slogan “Rethink, Reboot, Regenerate".