From bust to boom: Lebanese fashion houses spy unlikely opportunity amid economic crisis


Gareth Browne
  • English
  • Arabic

In a factory overlooking the Mediterranean coast, a petite model glances over her shoulder as a camera shutter clicks away.

After holding her pose for a moment, a team of designers rushes in to fix the swimsuit she is wearing, brushing off the faintest blemishes.

Scenes like this were once common in the Lebanese capital. But the five-star hotels have closed and the high-rise apartments that straddle Beirut’s Corniche no longer provide the backdrop for music videos.

Lebanon’s glamorous past life barely exists outside of memories.

As a punishing economic crisis continues to push people into poverty, a handful of businesses are trying to get ahead of the curve. Amid the turmoil, Lebanon has become a very cheap place to manufacture luxury clothing.

“You will be astonished how many factories are opening now in Lebanon,” says Elie Hourani, CEO of Diamony Group, one of the country’s biggest fashion houses.

“The trade deficit for years was $17 billion or $18bn. Now, it’s down to $10bn or $11bn. Within two or three years, there will be no deficit,” he says.

The godfather of Lebanese lingerie

If you were to label one man the godfather of Lebanon’s lingerie industry, it would be Mr Hourani.

“I started selling lingerie by mistake,” he jokes, recalling how he bought a discounted batch of lingerie at the height of the country’s fifteen-year civil war, and then found himself in the fashion business.

“I did a law degree in 1977, but there was war and no law back then,” he says, with a wry smile.

Within a few years, he was sponsoring the annual Miss Lebanon beauty pageant. Diamony manufactured the winners’ tiara — the brand name was, quite literally, stitched on to the country’s fashion scene.

Elie Hourani, CEO of Diamony Group. Oliver Marsden for The National
Elie Hourani, CEO of Diamony Group. Oliver Marsden for The National

The financial crisis is forcing the country to wean itself off an unhealthy reliance on imports and become more independent.

As the economy has collapsed, foreign goods have become unaffordable.

Major brands from Coca Cola to Victoria's Secret are abandoning the market, but there is also opportunity.

For years, Diamony Group has imported fashion brands to Lebanon, now, it is producing for them.

In 2017, Mr Hourani’s daughter Carol founded Room 24, a high-end fashion label with outlets in London and Rome. She began producing lingerie, loungewear and swimwear from a factory in Italy, but rising production costs forced a rethink and, in the summer of 2019, just months before popular protests erupted, they moved production to Lebanon.

“Economically, as a business, it just made sense,” she says.

“It is super beneficial to the economy to create something locally, which we can export, it's good for the reputation of the country, you are supporting the local economy by supporting local families.”

With the backing of her father, she opened a factory in Kaslik, from which they can now produce up to 3,000 garments a month — and plans to produce for other brands are also in the works.

The swimsuits retail online for anything upwards of $200, and with exports flying out to more than 15 countries across Europe and to the US — the demand for Lebanese lingerie is booming.

A new workforce

They are training hundreds of seamstresses in Lebanon, developing a whole new workforce.

All their operators are women, and salaries are raised every month to address the lira’s continuing devaluation.

Beyond the cheap manufacturing costs, there are other factors enticing businesses to set up shop here. There are no customs fees on imports of goods and machinery for industry.

One company recently brought in $6 million dollars worth of pasta-making machinery for a factory in Jbeil.

Women attend training at the Diamony Group academy on the factory floor of the headquarters in Kaslik, Lebanon. Oliver Marsden for The National
Women attend training at the Diamony Group academy on the factory floor of the headquarters in Kaslik, Lebanon. Oliver Marsden for The National

Significant challenges remain, however.

As the fuel crisis peaked in the summer, staff were often unable to make it to work.

Meanwhile, with the banking sector largely insolvent, those who need to pay for imports must have a bank account abroad. Exporting or importing without one is practically impossible.

Recent weeks have further demonstrated just how precarious exporting from Lebanon can be.

Last month Saudi Arabia banned all imports from Lebanon following comments by Information Minister George Kordahi.

Fortunately, the country’s lingerie exports are not entirely reliant on the market in the kingdom, yet the threat to any business is obvious.

Exporting lingerie will not solve Lebanon’s economic crisis, but for Carol, a future of manufacturing is imperative for the country.

“We need to come to terms with the situation. We are not a service economy any more. We cannot rely on tourism any more,” she said.

“We need to pivot to a manufacturing-exports economy. That, I think, is the only way out of this mess.”

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ESSENTIALS

The flights

Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.

The hotels

Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.

The tours

A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages. 

At a glance

- 20,000 new jobs for Emiratis over three years

- Dh300 million set aside to train 18,000 jobseekers in new skills

- Managerial jobs in government restricted to Emiratis

- Emiratis to get priority for 160 types of job in private sector

- Portion of VAT revenues will fund more graduate programmes

- 8,000 Emirati graduates to do 6-12 month replacements in public or private sector on a Dh10,000 monthly wage - 40 per cent of which will be paid by government

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The specs

Engine: 1.5-litre turbo

Power: 181hp

Torque: 230Nm

Transmission: 6-speed automatic

Starting price: Dh79,000

On sale: Now

Ferrari 12Cilindri specs

Engine: naturally aspirated 6.5-liter V12

Power: 819hp

Torque: 678Nm at 7,250rpm

Price: From Dh1,700,000

Available: Now

Pad Man

Dir: R Balki

Starring: Akshay Kumar, Sonam Kapoor, Radhika Apte

Three-and-a-half stars

BMW%20M4%20Competition
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Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

7.

Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea

UAE currency: the story behind the money in your pockets
KEY%20DATES%20IN%20AMAZON'S%20HISTORY
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Results

Stage 5:

1. Jonas Vingegaard (DEN) Team Jumbo-Visma  04:19:08

2. Tadej Pogacar (SLO) UAE Team Emirates  00:00:03

3. Adam Yates (GBR) Ineos Grenadiers

4. Sergio Higuita (COL) EF Education-Nippo 00:00:05

5. Joao Almeida (POR) Deceuninck-QuickStep 00:00:06

General Classification:

1. Tadej Pogacar (SLO) UAE Team Emirates 17:09:26

2.  Adam Yates (GBR) Ineos Grenadiers 00:00:45

3. Joao Almeida (POR) Deceuninck-QuickStep 00:01:12

4. Chris Harper (AUS) Team Jumbo-Visma 00:01:54

5. Neilson Powless (USA) EF Education-Nippo 00:01:56

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Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Who has been sanctioned?

Daniella Weiss and Nachala
Described as 'the grandmother of the settler movement', she has encouraged the expansion of settlements for decades. The 79 year old leads radical settler movement Nachala, whose aim is for Israel to annex Gaza and the occupied West Bank, where it helps settlers built outposts.

Harel Libi & Libi Construction and Infrastructure
Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.

Zohar Sabah
Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.

Coco’s Farm and Neria’s Farm
These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.

Indoor cricket World Cup:
Insportz, Dubai, September 16-23

UAE fixtures:
Men

Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final

Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final

ADCC AFC Women’s Champions League Group A fixtures

October 3: v Wuhan Jiangda Women’s FC
October 6: v Hyundai Steel Red Angels Women’s FC
October 9: v Sabah FA

UAE currency: the story behind the money in your pockets
SOUTH%20KOREA%20SQUAD
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Gothia Cup 2025

4,872 matches 

1,942 teams

116 pitches

76 nations

26 UAE teams

15 Lebanese teams

2 Kuwaiti teams

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Total eligible population

About 57.5 million people
51.1 million received a jab
6.4 million have not

Where are the unvaccinated?

England 11%
Scotland 9%
Wales 10%
Northern Ireland 14% 

UJDA CHAMAN

Produced: Panorama Studios International

Directed: Abhishek Pathak

Cast: Sunny Singh, Maanvi Gagroo, Grusha Kapoor, Saurabh Shukla

Rating: 3.5 /5 stars

Herc's Adventures

Developer: Big Ape Productions
Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
Rating: 4/5

UAE currency: the story behind the money in your pockets
Where can I submit a sample?

Volunteers can now submit DNA samples at a number of centres across Abu Dhabi. The programme is open to all ages.

Collection centres in Abu Dhabi include:

  • Abu Dhabi National Exhibition Centre (ADNEC)
  • Biogenix Labs in Masdar City
  • Al Towayya in Al Ain
  • NMC Royal Hospital in Khalifa City
  • Bareen International Hospital
  • NMC Specialty Hospital, Al Ain
  • NMC Royal Medical Centre - Abu Dhabi
  • NMC Royal Women’s Hospital.
Company%C2%A0profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ELeap%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EMarch%202021%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Ziad%20Toqan%20and%20Jamil%20Khammu%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%0D%3Cbr%3E%3Cstrong%3EFunds%20raised%3A%3C%2Fstrong%3E%20Undisclosed%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3ESeven%3C%2Fp%3E%0A

Indoor Cricket World Cup - Sept 16-20, Insportz, Dubai

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

If you go

The flights Etihad (www.etihad.com) and Spice Jet (www.spicejet.com) fly direct from Abu Dhabi and Dubai to Pune respectively from Dh1,000 return including taxes. Pune airport is 90 minutes away by road. 

The hotels A stay at Atmantan Wellness Resort (www.atmantan.com) costs from Rs24,000 (Dh1,235) per night, including taxes, consultations, meals and a treatment package.
 

 

Rock in a Hard Place: Music and Mayhem in the Middle East
Orlando Crowcroft
Zed Books

Company profile

Name: Infinite8

Based: Dubai

Launch year: 2017

Number of employees: 90

Sector: Online gaming industry

Funding: $1.2m from a UAE angel investor

Leaderboard

63 - Mike Lorenzo-Vera (FRA)

64 - Rory McIlroy (NIR)

66 - Jon Rahm (ESP)

67 - Tom Lewis (ENG), Tommy Fleetwood (ENG)

68 - Rafael Cabrera-Bello (ESP), Marcus Kinhult (SWE)

69 - Justin Rose (ENG), Thomas Detry (BEL), Francesco Molinari (ITA), Danny Willett (ENG), Li Haotong (CHN), Matthias Schwab (AUT)

SPEC%20SHEET%3A%20NOTHING%20PHONE%20(2a)
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MOUNTAINHEAD REVIEW

Starring: Ramy Youssef, Steve Carell, Jason Schwartzman

Director: Jesse Armstrong

Rating: 3.5/5

Sonchiriya

Director: Abhishek Chaubey

Producer: RSVP Movies, Azure Entertainment

Cast: Sushant Singh Rajput, Manoj Bajpayee, Ashutosh Rana, Bhumi Pednekar, Ranvir Shorey

Rating: 3/5

Pari

Produced by: Clean Slate Films (Anushka Sharma, Karnesh Sharma) & KriArj Entertainment

Director: Prosit Roy

Starring: Anushka Sharma, Parambrata Chattopadhyay, Ritabhari Chakraborty, Rajat Kapoor, Mansi Multani

Three stars

The specs
  • Engine: 3.9-litre twin-turbo V8
  • Power: 640hp
  • Torque: 760nm
  • On sale: 2026
  • Price: Not announced yet
Company%20Profile
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The bio

Favourite book: The Alchemist by Paulo Coelho

Favourite travel destination: Maldives and south of France

Favourite pastime: Family and friends, meditation, discovering new cuisines

Favourite Movie: Joker (2019). I didn’t like it while I was watching it but then afterwards I loved it. I loved the psychology behind it.

Favourite Author: My father for sure

Favourite Artist: Damien Hurst

MATCH INFO

Uefa Champions League last-16, second leg:

Real Madrid 1 (Asensio 70'), Ajax 4 (Ziyech 7', Neres 18', Tadic 62', Schone 72')

Ajax win 5-3 on aggregate

Updated: November 12, 2021, 10:51 AM`