no opportunity

Lebanon is packed. The airport, the ground border crossing, the streets, the tourist attractions, the restaurants, the clubs, the pools and beaches; all packed. Lebanon is such a vibrant country. So full of life and beauty. However, the energy of the place in the summer belies the true economic state of the country. Regardless of whom you speak to, the conversation often reverts back to the same statement, "there's no opportunity here."

Out at dinner with some friends, I couldn't help but notice, as people sat with elbows on the table, the row of designer watches on both men and women: Cartier, Rolex; Tag Heurer was the low-end. Wine constantly flowing, vodka bottles bottomless, I had to wonder, "where is all of this money coming from ?!" Rooftop bars and restaurants are the "in" thing in Beirut. I think the Lebanese are so numbed by the wars they have been through that demolished buildings simply fade into the nighttime skyline. But to me, things look different. I've never seen a contrast as striking as a beautiful glowing bar against a backdrop of destruction:

So where is all of the money coming from? How is it that the food and alcohol and designer watches are in such abundance while so many buildings remain destroyed and people continuously claim, "there is no opportunity?"

Standing at a rooftop bar, I leaned over and asked a friend, "How many of these people are NOT living in Lebanon?"

"90%," he responded. "Most of them are Lebanese, but very few actually live here."

Most of the money in Lebanon is coming from outside of the Country - the US, Europe, and the Gulf. Many beach clubs and real estate developments are actually owned by people from the Gulf. Some are owned by a handful of traditionally wealthy Lebanese and Syrian families. But largerly, the self-made Lebanese made himself outside of Lebanon.

This same friend told me that a recent college graduate is doing very well if he earns $1,000 per month. That's less than 1/4th of what a U.S. college graduate who is "doing very well" earns. However, the major cost of living components are very high. Apartments in Beirut cost $300-$400 per square foot - you can't buy anything decent for less than half a million dollars. Gas and cars are more expensive than in the U.S. And private school education is essentially required if one wants to go to college.

The people are generally very well educated. But industries are small and there's little opportunity to build a business beyond family money. There is virtually no venture capital - Building Block Equity Fund is the only real venture fund I could find.

While electricity is out 3 hours per day in Beirut and 12 hours per day in the South, politicians are busy playing to sectarian interests rather than working to fix the Country's problems.

Having a drink at the rooftop bar, enjoying the energy of the place and the stunning Beirut skyline, my friend said, "Lebanon is such a rich and beautiful country. I love it!" He paused and continued, "If only there was opportunity here, I would come back."