Why Beirut can expect another exodus of big-name brands next year

  • Date: 24-Nov-2020
  • Source: Arabian Business
  • Sector:Retail
  • Country:Lebanon
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Why Beirut can expect another exodus of big-name brands next year

Beirut is losing its franchise appeal in favour of Dubai, as 42 international brands have closed their branches in Lebanon since October 2019, with more brands planning to flee the country next year, according to Yahya Kassaa, president of the Lebanese Franchise Association (LFA).

The fashion, luxury and restaurant sectors were the most affected, as they saw a slew of big-name exits over the past 12 months.

Speaking to Arabian Business, Kassaa revealed that "many international companies are considering withdrawing over the next year".

Beirut Traders Association warns 50% of Lebanon's shops and businesses could close by the end of 2020

He said: "With the completion of budgets by the end of 2020, many companies have postponed the decision to withdraw to the year 2021. We hope during this time that positive changes will occur, at least in terms of forming a new government, which will help us persuade companies that are candidates for withdrawal to stay."

He added: "The biggest problem facing foreign companies now in Lebanon is the absence of a future vision and political and financial instability, which made them operate in a foggy atmosphere that contradicts the minimum requirements for the prosperity of any business. Franchise owners prefer a liberal economic