Private pleasure boats are charging up to 800 euros (1,200 dollars) to ferry people into Lebanon from Cyprus, but officials say that shipping law forbids unlicensed craft being used for commercial purposes for safety reasons.

"A directive has been given to marine police that private boats can't take passengers to Lebanon," Cyprus merchant shipping department senior inspector Yiannis Karitzis told state television.

"Pleasure boats for private use are exploiting the situation and charging Lebanese and other nationals... It's not just a question of exploitation... We monitor issues of safety," he added.

For the past week, Lebanon has been rocked by sectarian fighting in which at least 65 people have died after a government move against Hezbollah prompted the Shiite militant group to block access to Beirut airport, halting nearly all flights.

Karitzis said those bringing people to Cyprus from Lebanon was not an issue because it came under the jurisdiction of the Lebanese authorities.

More than 300 people, including the Saudi ambassador in Beirut, have fled Lebanon's violence for the safety of the Mediterranean holiday island, which is part of the European Union and just 130 miles (210 kilometres) away.

Since Saturday, 34 private yachts or speed boats have docked at Larnaca marina on the island's south coast while more people are expected if the conflict worsens.

In 2006, a devastating 34-day summer war between Israel and Hezbollah prompted Western governments to undertake a mass evacuation of tens of thousands of nationals through Cyprus but so far there has been no repeat.

The fighting between supporters of the Western-backed government and the Iranian- and Syrian-backed opposition is nonetheless Lebanon's worst sectarian violence since the 1975-90 civil war.

Some of the boats were dropping people off before going back for more, while other people were docking at the marina for a short period in their luxury yachts.

On Monday, Saudi ambassador to Lebanon Abdul Aziz al-Khoja and his family arrived at marina and were escorted directly to the nearby Larnaca international airport.

Cyprus says it is closely monitoring the unrest in Lebanon and has drawn up contingency plans in the event that a new mass evacuation is required.

Civil defense and other officials met on Wednesday to review the island's preparations to deal with a new influx of evacuees. In 2006, more than 55,000 flooded the island.

Photo: A Lebanese private yacht is seen from Larnaca marina after arriving from Lebanon, Monday, May 12, 2008. Private yacht owners making illegal earnings out of people desperate to return to strife-stricken Lebanon in the absence of normal flights. What a shame !!! Photo courtesy AP

``It is a disaster because we were preparing ourselves for a promising season in spite of the political problems,'' Joe Sarkis ( pictured) said in an interview from Beirut today. ``If things do not go back to normal immediately, as we are now in the middle of May, it means that we are going to lose another seasonal year.''

Fighting between gunmen allied with the Hezbollah-led opposition and supporters of the government of Prime Minister Fouad Siniora erupted on May 7. The clashes came after the government fired the security chief at Beirut's international airport following the discovery of an electronic surveillance system used by the Shiite Hezbollah group to monitor aircraft.

Hezbollah leader Hassan Nasrallah, whose group fought a 33- day war against Israel in 2006, said its telecommunications system is needed to protect Lebanon from an Israeli invasion. The government yesterday revoked its ban on the telephone network and airport surveillance system.

Lebanon has lost revenue because of the closure of the airport, suspension of flights and the cancellation of reservations by tourists, Sarkis said. The airport is still closed.

No Normal Season

``In normal times we can consider the income generated from tourism and related investment at about $4 billion a year,'' Sarkis said. ``Since the July 2006 war with Israel we haven't had a normal tourism season.''

The 2006 conflict began after Hezbollah seized two Israeli soldiers in a cross-border raid. The war left 1,100 Lebanese dead and 163 Israelis.

Economic progress in the country has also been hurt by an 18- month political stalemate between the ruling pro-Western governing coalition and the Syrian-backed opposition. Lebanon has been without a head of state since Nov. 23, when Syrian-backed Emile Lahoud left office at the end of his term. Lawmakers have failed to elect a new president on 19 occasions.

The economy grew as much as 4 percent last year, Finance Minister Jihad Azour said in March 2 interview. The economy stalled the year before and grew 1 percent in 2005, when former Prime Minister Rafiq Hariri was assassinated.

Tourism

Occupancy at Beirut hotels was down to 38 percent in 2007 from 48.6 percent in 2006, according to a survey of the Middle East hotel industry by Deloitte & Touche.

``Tourism is very important as its one of the main sources of foreign currency earnings,'' said Nassib Ghobril, head of research at Byblos Bank. ``It will take time to rebuild confidence as the recurring uncertainties might make even Lebanese expatriates hesitate this time.''

Before the outbreak of Lebanon's 1975-1990 civil war, tourism represented about 20 percent of the country's gross domestic product, Sarkis said.

``I hope with the effort by the Arab league representatives in Lebanon now, we get positive aspects and can come back and save the summer season,'' Sarkis said.

A delegation of the 22-member Arab League is in Lebanon trying to defuse the conflict by pressing all parties to return to dialogue and to order their supporters to shun violence.

The credit ratings agency said on Friday that Lebanon's "B3" rating, the lowest possible for governments that are not in default, remains with a stable outlook.

"Given that the government of Lebanon is not in default, Moody's believes that the country's low ratings already encapsulate the risk of severe political turmoil," Tristan Cooper, sovereign ratings analyst at Moody's said in a statement.

Lebanon's government has never defaulted on its debt, despite experiencing many destabilizing political shocks, including a 15-year civil war between 1975 and 1990 and a devastating month-long war between Hezbollah and Israel in 2006, the statement said.

The agency said it recognizes the country's poor state of public finances, however the central bank still has a large stock of foreign currency reserves, $10.8 billion in February, or about 45 percent of gross domestic product. While legally constrained from being sold, central bank gold reserves worth $8.9 billion in February also acts as a source of reassurance.

In addition, Lebanon's domestic banking sector has over the years been tolerant of domestic political turmoil while the government benefits from "committed support of powerful donors that include the US, major EU countries and Saudi Arabia."

Moody's said that while these factors have made the government resistant to political shocks it remains concerned about current developments and is monitoring the situation.

"We would be particularly concerned if political chaos or a change in the composition of the government deterred donor support or altered the government's willingness to service its obligations," Cooper said

He said in 2006-07 over all trade volume was around 40 million dollars, which is much less than the existing potential between the two countries. The ICCI president said both the countries should exchange trade delegations, which will provide opportunities to businessmen of Pakistan and Lebanon to understand each others market. Abbassi said businessmen could also participate in the trade exhibitions in the respective countries to develop business linkages with the respective counterparts. He said market study should also be carried out to find out the opportunities of business in the areas of common interest.

The ICCI president said economies of various countries of the world, are under pressure, due to rise in the fuel prices. He said Pakistan had to face great economic challenges, due to changing world scenario but however, great investment and trading opportunities are available for foreign investors and traders. He said countries should work for economic might, and should avoid spending money on defense.

He invited business delegation of Lebanon to visit Islamabad Chamber of Commerce & Industry for meetings with the business community and suggested that a Memorandum of Understanding should also be signed between the chambers of both the countries, which will help in accelerating the trade and investment activities between Pakistan and Lebanon. He said that since Lebanon is good in the agriculture, therefore, both countries could cooperate with each other in this sector as well and suggested for the cluster development in collaboration with its companies .

The ambassador also gave the information on CD about Lebanon entrepreneurs and it was agreed that a Memorandum of Understanding should be signed in near future between Islamabad Chamber of Commerce and Industry and Chamber of Commerce and Industry and Agriculture of Beirut and Mount Lebanon.

Rehaime said quality of electric generators of Lebanon was very good and because of this reason Pakistan is importing generators from Lebanon. He said Pakistan could also import other quality products from Lebanon.

Generators, UPS sales up to offset loadshedding

Sale of generators and UPS batteries have increased in the country as people are going for alternative mode of electricity to offset massive loadshedding. "Children are preparing for their exams and loadshedding has made our lives miserable that is why we are purchasing UPS", a mother said while talking to a local news channel. UPS is in high demand as 99 out of 100 electricity consumers are trying to buy a UPS to cope with loadshedding. They are ready to pay in advance but the commodity is not available in the market. About 3-4 tube lights and ceiling fans can function for about 6 hours with one UPS of Rs 15,000. UPS components, especially batteries have also become more expensive. A salesman said," We manufacture 5 or 6 UPS systems in a day but there is shortage of UPS components in the market and we are therefore working below our capacity.

Lebanon is a major manufacturer and user of UPS ( uninterrupted power supply) systems , because of the power blackouts and could easily meet the demand for Pakistan

IMF monitoring, which would likely be under a follow-up IMF emergency loan program that expired in 2007, would allay donor and investor concerns about Lebanon's economy.

An IMF report on Tuesday said the Lebanese economy is likely to grow well below potential this year at between 2 to 3 percent.

Lebanon is embroiled in its worst political crisis since a 1975-90 civil war and has left the country without a president since November, paralyzing government bodies and prevented the government from carrying out economic reforms.

It has also caused donors to withhold the release of funds pledged at an international conference on Jan. 25, 2007. The "Paris 3" conference drew $7.6 billion in donor pledges to help the government deal with a massive $41 billion public debt and also to boost the economy shattered by a war between Israel and Hezbollah in 2006.

The IMF approved a $77 million loan for Lebanon in April 2007 under the IMF emergency post-conflict assistance, or EPCA, which was required before donors would hand over funding to Lebanon.

The IMF said on Tuesday the Lebanese authorities were likely to request a follow-up EPCA to succeed the previous EPCA that expired at the end of 2007.

The IMF said Lebanon had limited scope for fiscal policy actions in the absence of a parliament, and the tax increases envisaged in the "Paris 3" reform agenda for 2008 have been put on hold.

The IMF said the government faces substantial financing needs in 2008, including over $4.5 billion in foreign currency.

It also said expected donor support of $800 million is crucial to cover some those needs. In addition the government can use its foreign exchange revenues of around $1 billion a year, the fund added.

For the remainder, the government could rely on market financing, with commercial banks expected to roll over the 2008 Eurobond maturities of $2.5 billion, the IMF said.

"Notwithstanding pressures for increases in subsidies and the minimum wage, the government plans to maintain strict expenditure control, and expects to realize savings from a hiring freeze and a reassessment of priorities in capital spending and transfers," the fund said.

The Hezbollah statement said the protests should be an "outcry against the programmed collapse caused by this government."

The statement said Hezbollah leader Hassan Nasrallah would hold a press conference on Thursday to comment on the government decision to eliminate Hezbollah's communications network and a disciplinary measure adopted against commander of airport security Brig. Wafiq Shoqeir over the party's monitoring of the facility.

In a meeting on Tuesday the government decided to fire Shoqeir from his current position at the airport for colluding with Hezbollah

The government has also threatened to eliminate the private Hezbollah communications network

The minimum wage was increased in a cabinet meeting on Tuesday from 300,000 LL ( $200) to 500,000 LL( $333) a 67 % increase , the highest wage increase ever in Lebanon, which the unions are labeling as modest

The GFLU has demanded increasing the minimum wage from 300,000 LL ( $200) to LL 960,000 ( $640), a pay raise of 220%

The anti-Syrian Labor Salvation Authority, that opposes Ghassan Ghoson's leadership of GFLU , boycotted the strike and declared Wednesday a day of normal work.

Lebanon's bank employees union also boycotted the strike and said Wednesday is a normal working day, noting that the pay raise adopted by the government on Tuesday meets their labor demands.

PICTURE: Hezbollah supporter burning tires during January 2008 labor strike /protest

for displaying exceptional PR results by utilizing effective & innovative methods during 2007.

LG annual regional forum was attended by 11 agencies representing LG Electronics in the Gulf, Jordan, Iran, Saudi Arabia, Tunisia, Morocco, Turkey, Nigeria, South Africa, Kenya and Pakistan. Ginandin of Nigeria and Algeria LG office were also recognized for impressive brand-building campaigns.

Hamad Malik, Regional Marketing Manager at LG Electronics said:

"One of the defining reasons for Polaris to get the award was through the successful PR Program that it has implemented during the last year. Rewarding our agency partners is an important way to motivate the whole team and encourage higher performance standards across the board. Polaris has already exceeded its targets for the year in terms of presence for LG in the target media, and it has also worked impressively in coordination with the local office and LG Media Club in building a strong image for LG in the region."

Polaris Beirut, which began working for the South Korean multinational in 2005, also picked up at the same forum, and for the second consecutive year, another award for achieving the PR target and demonstrating outstanding performance during 2007.

Polaris PR's Spokesperson said: "We are honored that industry leaders recognize one more time Polaris' commitment to delivering advanced and innovative methods. Wining gold to go with the other trophies already earned from LG Electronics is the best endorsement of Polaris' work and its reputation in the market". He added: "This was not to happen without the support of the media members, and more precisely LG Media Club members."

During the last year, Polaris has successfully focused its efforts for LG on media relations and tactical support for major product launches, such as the launch of the world's first Time Machine TV with a built-in digital video recorder, the world's first SolarDOM light oven, and the first in the company's Design Art series, the latest LB9 LCD TV range in Lebanon; as well as high-profile consumer events like the LG Digital Music Festival; and ongoing corporate social responsibility work.

The demonstration's march line, as announced by Ghoson, raises fears of possible confrontation with supporters of the March 14 majority alliance because it penetrates their traditional strongholds, especially areas controlled by supporters of Saad Hariri's Mustaqbal Movement and Walid Jumblatt's Progressive Socialist Party.

A similar opposition-sponsored strike on Jan. 23, 2007, led to serious confrontations between the Iranian and Syrian backed Hezbollah-led opposition and the March 14 majority that almost sparked civil unrest.

Ghoson, addressing a press conference, also pledged that the demonstration would only be "the beginning of serial protests, including general strikes, demonstrations and sit-ins aimed at putting at end to controlling our present and future."

However, the anti-Syrian Labor Salvation Authority, that opposes Ghoson's leadership, boycotted the strike and declared Wednesday a day of normal work.

Lebanon's bank employees union also boycotted the strike and said Wednesday is a normal working day, noting that a pay raise adopted by the government before dawn Tuesday meets labor demands.

Farmers unions, industrialists and residents of districts that the demonstration would go through also expressed opposition to the move.

Meanwhile, the union of civil aviation employees said it would abide by the strike, bringing Beirut Airport activity to a standstill from 9 a.m. to 3 p.m. on Wednesday.

General Ashraf Rifi, commander of the Internal Security Forces, declared that very tight security would be applied throughout Lebanon on Wednesday to maintain law and order.

The minimum wage was increased in a cabinet meeting on Tuesday from 300000 LL ( $200) to 500,000 LL( $333) a 67 % increase , the highest wage increase ever in Lebanon, which the unions are labeling as modest

The GFLU has demanded increasing the minimum wage from 300000 LL ( $200) to LL 960,000 ( $640), a pay raise of 220%

The minimum wage was increased in a cabinet meeting on Tuesday from 300000 LL ( $200) to 500,000 LL( $333) a 67 % increase , the highest wage increase ever in Lebanon, which the unions are labeling as modest

GFLU said the strike would witness sit-ins and possibly closure of the airport.

The GFLU has warned the government it would go on strike if the cabinet did not approve a pay raise of 220%. The GFLU has demanded increasing the minimum wage from 300000 LL ( $200) to LL 960,000 ( $640).

The private sector was apparently split over the salary issue. While some favored a modest pay raise, others argued that they prefer to lay off their employees than heed the demands of the GFLU.

Fears ran high that Wednesday's strike could be a replica of what has become known as "Black Tuesday" when at least 29 people were wounded in riots between anti and pro-government factions Jan. 23, 2007 as a general strike called by the GFLU developed into a bloody confrontation.

The daily An Nahar said Finance Minister Jihad Azour warned the government during its marathon meeting on Tuesday that he would resign when the cabinet suggested to raise the monthly salary to over LL 500,000, saying such a move would hurt the treasury.

Geagea : Union does not represent the working class

Geagea on Monday attacked the General Federation of Labor Unions (GFLU) saying it does not represent the working class.

"The Ministry of labor, that sponsors the GFLU, has been presided over for nearly 15 years by ministers from the Baath Party, AMAL Movement and Hezbollah. Many unions have been formed by methods of cheating during this period, which resulted in electing the GFLU that does not represent workers," Geagea said.

The GFLU, according to Geagea, represents the Baath Party, AMAL, Hezbollah, The Syrian Social National Party (SSNP) and some other groups allied with Iran and Syria.

Geagea said the army, security forces and the judiciary would "protect citizens" if the GFLU strike on Wednesday went beyond legal limits.

In January, the Telecommunications Regulatory Authority told potential bidders that the competition would be pushed back from February to May

However, it has recently extended the management contracts of the two companies that operate the networks, raising speculation of a further delay.

Kuwaiti operator Zain and Alfa, which is majority owned by a subsidiary of Germany's Deutsche Telecom, expected their management contracts to end on 1 June. The two companies have been told they can now operate the networks until 1 December.

Kamal Shehadi, director general of the regulator, refused to comment on any further
delays.

According to Shehadi, 10 telecoms firms have expressed an interest in the operators. Five Middle East companies - the UAE's Etisalat, Egypt's Orascom Telecom, Qatar's Qtel, Saudi Telecom and Zain - have declared their interest.

When the first delay was announced in January, a government official blamed Lebanon's failure to elect a new president. This situation has yet to be resolved. "The regulator cannot do anything without parliamentary approval and a new president," says an industry source. "The government does not have the political backing to privatize the networks."

Picture: Lebanon's communications Minister Mawan Hamade

Ethiopia passed the bill after it made a detailed study of the human rights violations and domestic violence Ethiopian migrants face behind closed doors in Beirut while on duty as maids.

"Suspending the work travel to Beirut was the only solution to minimize the human rights abuses and dangers to our citizens," said Zenebu Tadesse, deputy state minister for labor and social affairs.

During the past few years, a number of Ethiopians have been killed in Beirut by their employers.

Passed human rights records show that 67 Ethiopian women have died between 1997 and 1999 in Beirut while working. Many have never been heard of again and a many others remain difficult to trace because their employers change their Christian names to let them in to the country as Muslims.

The ministry said it would take strong action against any employment agency trying to send workers directly to Beirut or through a third country.

Every year, thousands of Ethiopian women, lured by the promise of lucrative jobs and comfortable living standards , are shipped out to Middle Eastern countries but end up being trapped in prison-like conditions.

Lebanon is the most popular destination for Ethiopian domestic servants, followed by Bahrain, Dubai and Saudi Arabia.

Estimates indicate that there are over 50,000 Ethiopians working in Beirut, mainly women who work as house maids hoping to bring change to their living conditions and their families back at home, who pray continuously for their safe return. Over 100,000 Ethiopian workers are believed to be working in the Arab countries of the Middle East.

According to Ethiopian women association, Ethiopian women in the Middle Eastern countries are facing the worst kind of human rights abuses, subjected to beatings, denied earned wages, forced to toil without sleep, raped by employers, have parts of their body seared in boiling oil by wives of their employers, grilled with hot irons and thrown out of high-rise balconies." As a result, many are driven to despair and end up being mentally sick and sometimes commit suicide.

Although Lebanon is a member of the advisory committee to the the UN High Commissioner for Refugees (UNHCR), it has not signed the 1951 Geneva Convention dealing with migrant workers. Lacking the normal rights of citizens to access public forms of assistance, migrants are faced with the option of running away and becoming illegal, or coping with the daily abuse. Despite pressure from labor organizations, the Lebanese governments have done nothing to address the issue.

The real estate company, which owns most of the property in downtown Beirut, reflects the state of the Lebanese economy, which is officially forecast to grow at 4 percent this year, similar to 2007.

Doueidi said the Souks shopping mall, a high-profile 100,000 sq metre project in the city centre being built by Solidere, will be completed in 2009. Solidere's assets are worth some $8 billion, with 50 projects being developed by private investors who had bought land from Solidere, he added.

"This is a conservative valuation which will rise if the political situation improves," said Doueidi, referring to a protracted power struggle between the pro-American government and the Hezbollah-led opposition. Iran and Syria back the Shi'ite movement.

Former premier Rafik al-Hariri founded Solidere in 1994 to rebuild downtown Beirut after the 1975-1990 civil war and gave it a monopoly over most of the 1.8 sq km (20 million square feet) that form the centre.

Hariri, who was killed in 2005 by a car bomb metres from Solidere's boundary, was the largest shareholder in the controversial company. His political opponents accused Solidere of razing historic buildings that could have been saved to make more money.

Outside Expansion

Doueidi said Solidere had sold 2 million sq metres of built-up area (BUA) since its foundation, comprising half of the BUA it controls. He said Solidere will step up expansion abroad through Solidere International, of which it owns 37 percent.

Solidere International on Thursday announced a joint venture with one of the seven regions comprising the UAE to develop a 12 sq km project. Doueidi said the infrastructure costs will be covered from pre-sales and Solidere will not need to seek huge financing for the $60 billion project.

"This is a project over 15 years and plots will be sold to private investors to develop themselves. I do not see a huge bond issue," Doueidi said.

The company is also planning a project on the edges of Cairo and will bid for a project in Monaco, Doueidi said.

A market source said the overseas expansion could help Solidere eventually offset diminishing sales in its home market and raise its weak profits-to-assets ratio.

"They have not sold much at all in Lebanon this year," the source said. "This could be to their advantage if there is a political turnaround and prices in central Beirut spike."

The source, speaking on condition of anonymity, said power production goes down by 200 megawatts as of Friday reaching a critically low limit of only 30% of production capacity by Sunday.

"A tough power rationing program would be applied," he said.

Two tankers loaded with fuel oil for the power stations have been waiting in Lebanese territorial waters for almost two weeks pending settlement of cost by the finance ministry, the source said.

The finance ministry refuses to settle the account before receiving a transaction from the power authority covering production costs for the past three months, the source added.

The power authority, however, has not managed to collect fees for its services from areas that are not under state authority, mainly regions controlled by Hezbollah "that is why it does not have enough revenue to cover fuel oil purchases for its stations," the source explained.

A statement released by Interior Minister Hassan Sabaa said police has not been able to prevent 160 illegal construction sites in Hezbollah-controlled south Beirut.

"If police cannot prevent illegal construction, and power authority fee collectors get beaten up while trying to carry out their duties in areas where they cannot have police protection, how would the power authority be able to cover its expenses?" the source asked.

The Al Zorah development will span 12 square kilometres, Ajman said in a statement on Thursday. The project, when completed, will aim to house 200,000 residents and workers.

The initial phase will take 30 months to complete and the entire project will be completed in 15 years, a spokesman for the venture said.

Lebanon's Solidere, the country's largest company by market value, set up a Dubai affiliate last year to help it expand abroad. The developer also has a strong presence in Saudi Arabia.

Solidere , a publicly held company was founded by Lebanon's former prime minister Rafik Hariri , who was assassinated in 2005 in downtown Beirut.

Family-ruled Ajman is one of seven emirates in the UAE federation. In a bid to catch up with its neighbours, Ajman, the second-smallest member of the UAE by population, is preparing new freehold laws and regulations similar to those in Dubai. The emirate has a population of about 300,000, out of the country's 4.5 million people.

Dubai is building islands in the shape of palm fronds and the world map, and is also home to a ski slope in the desert

Azour, in a radio interview, said prime minister Fouad Siniora's ruling majority government has been considering a pay raise since the beginning of this year.

It is not the general strike called for by the General Federation of Labor Unions (GFLU) and set for next Wednesday that has led the government to consider correcting the wage schedule , Azour explained.

He accused the GFLU of seeking to topple dialogue between employers and workers by demanding tripling the minimum wage.

The government is to tackle a pay raise bill next week, he said