Solidere : the battle for Beirut's Central District

Abstract

The Beirut Central District was destroyed during the Lebanese Civil War which extended from 1975 to 1990. Unable to reconstruct the center itself, the Lebanese government turned to a private Real Estate Holding Company (REHCO), known by the acronym Solidere, to take over the task of rebuilding. In 1991 Solidere was granted expropriation rights over the Beirut Central District area, a space of approximately 150 hectares. The government's decision to mandate such a large private-to-private transfer was a controversial one that was unprecedented in Lebanese development history. Solidere has been characterized by two very different views. The company's proponents attributed the reconstruction of the city center solely to Solidere. The opposition denounced the firm as an illegal assault on property rights. This thesis traces the company's history. Its survival strategies, in terms of securing government endorsement and gaining public approval, are discussed. Solidere is examined through the lens of secular property rights, evaluating the firm in terms of the two conditions of contribution to the "public benefit," and the compensation provided to the original property owners. Solidere's case is also explored in the context of Islamic property rights, focusing on the concept of waqf. The thesis concludes by abstracting from Solidere to the broader concept of a REHCO, and begins to ask the necessary questions to develop a framework for the successful implementation of this development model.