,
2012 Annual Report
Table of Contents Message from the President........................................................................3 Who We Are.........................................................................................................4 Mission .................................................................................................................4 2012 by the Numbers.........................................................................................5 ABC Highlights of 2012
Arab Health Breakfast.................................................................................7
Explore Ras Al Khaimah.............................................................................8
Emirati Alumni Celebration.........................................................................9
I.D.E.A.S. Business Forum............................................................................10
Affiliations
US Chamber of Commerce.....................................................................11
Dubai Chamber of Commerce & Industry.............................................11
US Mission in the UAE................................................................................11
MECACC.....................................................................................................12
Doorknock Washington, DC....................................................................12
Publications
Membership Directory..............................................................................13
Quarterly Newsletter.................................................................................13
Website.......................................................................................................13 ABC Events..........................................................................................................14 2012 Board of Directors.............................................................................15 Thank You to our Supporters...................................................................16 Financial Statements
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Statement of Comprehensive Income...................................................17
Statement of Financial Position...............................................................18
Statement of Cash Flows..........................................................................19
Statement of Retained Surplus................................................................20
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2012
Message from the 2012 President Dear Members, In 2012 the American Business Council of Dubai & the Northern Emirates (ABC) launched a strategic realignment plan in which ABC focused its traditional strengths and renewed its commitment to providing members with substantive programs. These programs enabled ABC to become the voice of American (and American-inspired) businesses in Dubai and the Northern Emirates. The 2012 strategic realignment plan included substantive aspects such as: • Introduction of the Business Visa Interview Facilitation Program in conjunction with the US Embassy in Abu Dhabi and the US Consulate in Dubai – a key business-enabler • Leading a Delegation to Ras Al Khaimah to meet with His Highness Sheikh Saud Al Qasimi and senior Ras Al Khaimah officials at Al-Dhait Palace – in order to strengthen our ties to the Northern Emirates • Participating in numerous business roundtables, particularly with US and UAE government officials including: The US Assistant Secretary of Commerce for Export Enforcement, The Director of the US Bureau of Industry and Security’s Anti-Boycott Compliance Office, and The Mayor of Houston • Hosting the annual reception honoring UAE Alumni of US Universities – His Highness Sheikh Saud Al Qasimi’s keynote address at the event will resonate with me for a long time to come – and the ABC continues to cultivate the natural linkages between American business and UAE nationals educated in the US (through this annual reception that was revived in 2010) • Continuing a tradition of continuously expanding networking opportunities with other business councils In the autumn of 2012, ABC welcomed The Honorable Robert Waller, the new US Consul General in Dubai. The ABC remains deeply indebted to the loyal support of the US Mission to the UAE, in particular: The Honorable Robert Waller; The Honorable Michael Corbin, US Ambassador to the UAE; and Robert Bannerman (Principal Commercial Officer at the US Consulate in Dubai). I am honored to have served as President of the organization in 2012 and continue to be inspired by the commitment of the professional ABC staff, as well as the members of the ABC Board of Directors and all of its members.
John Podgore John Podgore President 2012 American Business Council
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Who We Are The American Business Council of Dubai & the Northern Emirates operates under the auspices of the Dubai Chamber of Commerce & Industry and functions as a Chapter of the US Chamber of Commerce. Since its founding in 1985, the American Business Council has supported US business interests in Dubai & the Northern Emirates and acts as a liaison between government and commercial enterprises. The American Business Council is a 500 plus member-driven organization. Fortune 500 companies and key business leaders are well represented among the members of the American Business Council. The American Business Council provides a forum for understanding and interaction between the local business community and members of the American Business Council. Members are supported through a robust calendar of informational programs, round-table discussions, and business networking opportunities.
Mission We exist to: Act as the catalyst of American Business in Dubai & Northern Emirates. Be the consolidated voice of the American business community. Coordinate networking among Americans and with regional business communities. Drive knowledge sharing and information distribution to facilitate and improve American business.
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$
Numbers
g f
o t h e r
the
f u n
f a c t s
Total trade between the US and the UAE reached a record-high of $24.80 billion in 2012, making the UAE the largest trading partner regionally with the US.
2012
by
a n d
There are nearly 2,000 flights in and out of the UAE per day.
5
1 th 4
The US is the UAE’s number
trading partner for the In January of 2010 the Burj Khalifa, opened. The building stands 163 floors tall and is currently the tallest building in the world.
year straight.
$22.55 US exports to the UAE in 2012 totaled
In 2012, every state in the US as well as the District of Columbia, Puerto Rico, and the Virgin Islands exported goods to the UAE.
billion
The UAE was the
17
th
largest export destination for US goods worldwide in 2012.
The UAE is featured
more than
100 times in the new Guinness World Records.
The US was the third country to establish diplomatic relations with the UAE after its creation.
one thousand There are over
US firms in the UAE.
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AB C H ig hl igh ts of 2012
ABC Hosts Annual Arab Health Breakfast, Keynote Speaker CEO of American Hospital Dubai On January 24, ABC hosted industry leaders from healthcare and pharmaceutical companies, Arab Health exhibitors, local representatives, and government officials at the annual Arab Health Breakfast. The event welcomed a large crowd, including: Keynote speaker Mr. Thomas J. Murray, CEO of American Hospital Dubai; The Honorable Michael Corbin, US Ambassador to the UAE; The Honorable Justin Siberel, US Consul General; and Danny Sebright, President of the US-UAE Business Council. The breakfast highlighted Arab Health 2012 and the work of the ABC Health Sector Taskforce, co-chaired by Zeydan Abuissa and Dr. Hazem Al Madi. The Taskforce was charged with reviewing US health-related business engagements in the UAE. ABC President, John Podgore, opened the program with welcoming remarks and by introducing the keynote speaker, Mr. Murray, who has over 37 years of experience in integrating operations, planning, and program development within a variety of healthcare environments. During Mr. Murray’s tenure as CEO of American Hospital Dubai, the following areas have been added to the hospital’s scope of service: The Radiation Therapy Department - the first in Dubai; Transitional Care; Outpatient Rehabilitation. As CEO of Mount Nittany Medical Center in State College Pennsylvania, Mr. Murray spearheaded efforts to position the Medical Center for growth as a regional leader in healthcare. With Penn State University, he developed collaborative projects, added specialty services, and began the incorporation of the Medical Center Foundation. While in Lexington, he expanded the role of the Saint Joseph Hospital Foundation and facilitated the purchase of the St. Joseph East facility. At the University of Missouri, he developed the Children’s Hospital and was responsible for merging the Ellis Fischel State Cancer Hospital into the University Health System. The event was sponsored by Kallman Worldwide.
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A B C H ighlights of 20 1 2
ABC Delegation Meets With Ras Al Khaimah Officials to Explore Commercial Ties On March 25, a delegation of ABC members headed by President John Podgore; US Ambassador, The Honorable Michael Corbin; and US Consul General, The Honorable Justin Siberell, traveled to the Emirate of Ras Al Khaimah (RAK) to explore ways of further strengthening commercial ties between the US and Ras Al Khaimah. The ABC delegation met with His Highness Sheikh Saud Bin Saqr Al Qasimi, Ruler of Ras Al Khaimah, His Highness Sheikh Mohammad Bin Saud Al Qasimi, Crown Prince of Ras Al Khaimah, and senior officials from Ras Al Khaimah local government, including from the Ras Al Khaimah Free Trade Zone (RAK FTZ) and the Ras Al Khaimah Investment Authority (RAKIA). His Highness Sheikh Saud Bin Saqr Al Qasimi hosted a luncheon at Al Dhait Palace that was attended by senior executives from US businesses in the UAE, including IBM, Fedex, ExxonMobil, Yahoo, Fulbright & Jaworski, Petrofac, Dewey & LeBoeuf and Centerhouse. Attendees gained clear insight as to business opportunities in Ras Al Khaimah through the remarks of His Highness Sheikh Saud Bin Saqr Al Qasimi and in conversations with attendees from the Ras Al Khaimah business community. Following the luncheon, the ABC delegation visited the RAK Free Trade Zone. During the visit, the RAK Free Trade Zone Authority CEO, Oussama El Omari, noted that 2,033 new companies registered with the RAK FTZ during 2011, signifying a 17% increase over new company registrations in 2010. Members of the Ras Al Khaimah community stressed the high level of education among UAE nationals residing in Ras Al Khaimah; as well as His Highness Sheikh Saud Bin Saqr Al Qasimi’s interest in further developing both its physical and social infrastructure. As economic relations between the US and the UAE continue to develop, Ras Al Khaimah’s role in this relationship will continue to develop.
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AB C H ig hl igh ts of 2012
ABC and US Mission to the UAE Honor Emirati Alumni of US Universities On October 15, the ABC, in association with the US Mission to the UAE, honored UAE Nationals who have studied at US universities. The event highlighted the strong bonds that exist between the UAE and the US, while highlighting the role that higher education can play in bringing communities closer together. During the 2010-11 academic year, more than 1,800 Emirati students studied in the US, a 13% increase over the preceding year, continuing the trend seen in recent years of double-digit year-on-year growth. His Highness Sheikh Saud Bin Saqr Al Qasimi, Member of The Supreme Council and Ruler of Ras Al Khaimah studied economics at the University of Michigan – Ann Arbor. HH Sheikh Saud Bin Saqr Al Qasimi presented a keynote address stressing the importance of education, calling it a, “critical tool for building the future.” US Ambassador to the UAE, The Honorable Michael Corbin; US Consul General, The Honorable Robert Waller; and President of the American Business Council, John Podgore echoed his sentiments on the importance of education for further strengthening bilateral ties. Guests included UAE National alumni from US universities, representing 60 alumni groups, as well as young UAE National students seeking the opportunity to study in the United States. Representatives from Georgetown University - Qatar, Hult, International Horizons College, New York University - Abu Dhabi and the University of Denver were also on hand to showcase their universities to the next generation of UAE Nationals contemplating studying at US universities. With attendance for this event increasing annually, it is clear that a shared understanding in the importance of education is a crucial element of the strong bilateral relationship between the UAE and United States. The American Business Council was able to hold this complimentary event for ABC members and UAE National alumni thanks to the gracious support of Boeing, Inc. and the American Hospital Dubai.
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A B C H ighlights of 20 1 2
ABC Hosts Inaugural I.D.E.A.S. Business Forum On November 19, the ABC joined more than 100 senior level business leaders from the US and the UAE to discuss pressing business issues and solutions at the inaugural I.D.E.A.S. Business Forum, held at the Meydan Hotel in Dubai. The forum consisted of two parts: the firsthalf of the program centered around an expert panel discussion regarding the panelists’ experiences doing business in the UAE and the region; the second half of the program involved eight sector-specific roundtables that focused on industry specific groups for collaborative issue-spotting and brainstorming for solutions. The expert panel discussed the thriving bilateral trade relationship between the US and the UAE and how previous challenges to the relationship had been overcome, while the industry roundtables focused on identifying challenges and harnessing potential synergies for individual sectors. The panel was moderated by ABC President, John Podgore and consisted of the following panelists: • David Harris, Director of Logistics Investment Support for the Department of Economic Development • Jeffrey Johnson, President of Boeing Middle East • Thaddeus Malesa, Senior Executive at the Dubai Chamber of Commerce & Industry • Thomas Murray, Chief Executive Officer of American Hospital Dubai • Ahmed Nassef, Middle East Vice President/Managing Director of Yahoo! Maktoob The roundtables were facilitated by industry leaders and included participants from banking and finance, education, health, hospitality, infrastructure, oil and gas, professional services, technology and small to medium enterprise industry sectors. The keynote address was delivered by US Ambassador to the UAE, The Honorable Michael Corbin. Following the meeting, a document was drafted containing a summary of key issues identified and recommended actions. The event was sponsored by DynCorp and Yahoo! Maktoob, with additional support from Hult International Business School, International Herald Tribune and the Khaleej Times.
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Af f il iat ions
US Chamber of Commerce The United States Chamber of Commerce (USCC) is the world’s largest business organization representing the interests of more than three million businesses of all sizes, sectors, and regions. Members range from mom-and-pop shops and local chambers to leading industry associations and large corporations. The Chamber is staffed with policy specialists, lobbyists, and lawyers. Politically, the Chamber is generally considered to be a conservative organization. The Chamber is one of the largest lobbying groups in the US, spending more money than any other lobbying organization on a yearly basis. The US Chamber of Commerce was created on April 22, 1912 by President Taft and celebrated it’s 100th anniversary in 2012. www.uschamber.com
Dubai Chamber of Commerce & Industry Dubai Chamber of Commerce & Industry is a leading chamber of commerce in the Middle East and has kept pace with the rise of the Emirate of Dubai as one of the fastest growing cities in the world. This apex facilitator of business serves over 100,000 members with world-class services and helps the business community develop its commercial activities and compete in the global market. Dubai Chamber’s mission is to represent, support, and protect the interests of the business community in Dubai, while, its strategic objectives are to create a favorable business environment, support the development of business, and promote Dubai as an international business hub. The Chamber plays a significant role in enhancing competitiveness, voicing, and influencing policies of interests to its members and to local, regional and international authorities. Dubai Chamber established 24 business groups representing different economic sectors in Dubai, 39 business councils which represent the Dubai-based foreign companies according to nationality, and 70 trade centers for a number of countries. www.dubaichamber.com
US Mission in the UAE In 2012, the US celebrated 41 years of diplomatic relations with the United Arab Emirates. Working in cooperation with public and private partners across the UAE, the US Consulate General in Dubai, along with the US Embassy in Abu Dhabi, supports a range of programs reflecting the depth and breadth of the US-UAE diplomatic relationship.
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The new Consulate General is a LEED-certified green building, with facilities that dramatically enhance its abilities to serve the public in Dubai and the Northern Emirates. The Consulate General hosts a public educational advising center, a service of the global EducationUSA advising program; each year, EducationUSA assists thousands of students in the UAE who are considering study at one of the more than 4,000 accredited colleges and universities in the US.
A ffiliation s
MECACC In recent years, the Middle East Council of American Chambers of Commerce (MECACC) has established itself as the voice of American business in the vital Gulf Region. An affiliate of the United States Chamber of Commerce, the MECACC comprises ten American chambers of commerce (AmCham) operating in the region. MECACC was officially established in 1989. Since its inception, this voluntary, nonpartisan, and nonprofit organization has actively fostered improved economic relations between the US and the GCC countries through trade and investment, as well as cross-cultural exchange and mutual understanding. The MECACC is widely recognized for its contributions in these areas, both in the US and the Gulf, and it continues to play an instrumental role in building economic, political and cultural bridges between the two regions. Together with its AmCham members, the MECACC has also worked hard to assist US companies competing for a share of the region’s lucrative export market. Many of America’s competitors have developed sophisticated export strategies which provide strong, direct government support for their citizens and companies in overseas markets. The MECACC, working closely with the US Government, is committed to leveling the playing field for American companies and going head-to-head with global competition. www.mecacc.org
Doorknock Washington, DC Every year a “Doorknock” delegation from ABC and MECACC visits Washington, DC and the US Chamber of Commerce to represent American business interests. In 2012 MECACC continued their everlasting work to educate Congress and their staff about the Foreign Earned Income Exclusion (FEIE) in the context of job creation, exports, trade and economic growth. This effort remains a defensive play as well as an attempt to level the playing field for Americans living and working abroad. MECACC’s presence on the Hill again reinforced the message: Americans Abroad = US Exports = Jobs at Home MECACC also added their evolving position on the Foreign Account Tax Compliance Act (FATCA) to their legislative agenda. Just a week after MECACC’s Door Knock, their message was re-enforced by a massive lobbying push, conducted by a powerful array of special interests, and targeted at Congressional Leaders and the Department Of The Treasury. The Council organized a US Public Affairs Committee (USPAC) to represent the membership views on this and the FEIE.
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P u bl ic at ions
Membership Directory As a valuable benefit to our members, the ABC publishes an annual membership directory, both in hard copy and with current updates online at www.abcdubai.com. The directory includes detailed information about members, both business and individuals, important information on doing business in the UAE, as well as contact information for regional AmChams and US Government offices. This directory has proven to be an invaluable resource for business professionals, dignitaries and other interested parties within the UAE and around the world.
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MEMBE
RSHIP D
IR EC TO
RY 2013
Quarterly Newsletter ABC’s quarterly online newsletter includes relevant business topics, a calendar of events, US Chamber of Commerce news and corporate news from ABC member contributors. The newsletter has a wide circulation including members, local and US Government offices, friends of the ABC and regional AmChams. Advertising opportunities are available.
Website The ABC website is the best resource for getting the most out of the ABC. The website gives the opportunity to join, generate business, raise awareness, create value, network, set up alliances and work together. The ABC creates valuable benefits to the membership through the online directory, business resources, advertising opportunities, member rewards, and event payment and registration. The ABC continues to enhance the site with the members in mind. www.abcdubai.com
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ABC EVENTS The American Business Council actively represents US business interests in Dubai and the Northern Emirates, while maintaining strong ties with the leaders of the communities in which their members live and work. The ABC holds regular meetings, luncheons and events to facilitate networking and collaborations among members throughout the year. These pictures depict some of the diverse activities and special events organized by the American Business Council in 2012.
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2012 Board of Directors
John Podgore President
Dana Salloum Executive Vice President
John Lancia Board Member
Jimmy Larsen Board Member
Vacant Vice President of Programs
Katie Shaver Vice President of Membership
Anne Jafery Board Member
Stephanie Fisher Board Member
Katherine D’Arcy Vice President Financial Affairs & Treasurer
Ramsey Jurdi Vice President of Legal Affairs & Secretary
Frank Kemnetz Board Member
Robert Bannerman Principal Commercial Officer US Consulate Dubai
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John C. Boehm Jr. Ex-Officio
Cara Nazari Executive Director
Thank You to Our Supporters President’s Club 2012
Vice President’s Club 2012
Strategic Partners
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Statement of Comprehensive Income For the year ended in 31 December 2012
17
2012 AED ───────
2011 AED ───────
Membership fees Special events Interest income Gain on disposal of equipment
1,906,013 758,011 5,243 13,000 ─────── 2,682,267 ───────
1,579,088 848,879 7,142 ─────── 2,435,109 ───────
Staff costs Administrative expenses Special events Rent Depreciation
1,066,830 605,742 674,028 224,175 7,822 ─────── 2,578,597 ─────── 103,670
977,682 555,248 673,132 204,509 13,664 ─────── 2,424,235 ─────── 10,874
───────
──────
103,670
10,874
═══════
═══════
Statement of Financial Position For the year ended in 31 December 2012
2012 AED ───────
2011 AED ───────
Equipment
15,410 ───────
12,207 ───────
Accounts receivable and prepayments Cash and cash equivalents
76,246 2,024,925 ─────── 2,101,171 ─────── 2,116,581 ═══════
148,172 1,562,458 ─────── 1,710,630 ─────── 1,722,837 ═══════
750,677 ───────
647,007 ───────
143,723 ───────
102,540 ───────
1,222,181 ─────── 1,365,904 ─────── 2,116,581 ═══════
973,290 ─────── 1,075,830 ─────── 1,722,837 ═══════
Non-current asset
Fund balance Retained surplus Non-current liability Employees’ end of service benefits Current liability Accounts payable and accruals Total liabilities
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Statement of Cash Flows For the year ended in 31 December 2012
Profit for the year Adjustments for: Depreciation Provision for employees’ end of service benefits Gain on disposal of equipment Interest income
Working capital changes: Accounts receivable and prepayments Accounts payable and accruals Cash from operation Payment of employees' end of service benefits Net cash from operating activities
Proceeds from sale of equipment Purchase of equipment Fixed deposits maturing after three months Interest income received Net cash (used in)/ from investing activities
(DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents at 1 January
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2012 AED ───────
2011 AED ───────
103,670
10,874
7,822 50,563 -13,000 -5,243 ─────── 143,812
13,664 40,637 -7,142 ─────── 58,033
71,926 248,891 ─────── 464,629 -9,380 ─────── 455,249 ───────
22,977 -28,240 ─────── 52,770 -7,611 ─────── 45,159 ───────
13,000 -11,025 -600,001 5,243 ─────── -592,783 ───────
-1,581 7,142 ─────── 5,561 ───────
50,720 1,562,458 ─────── 1,424,924 ═══════
1,511,738 ─────── 1,562,458 ═══════
Statement of Retained Surplus For the year ended in 31 December 2012
AED Balance at 31 December 2010 Total comprehensive income for the year
636,133 10,874 ───────
Balance at 31 December 2011
647,007
Total comprehensive income for the year
103,670 ─────── 750,677 ═══════
The complete set of 2012 financial statements including notes to the accounts and the auditor’s report are available for viewing by members at the American Business Council of Dubai & the Northern Emirates registered office.
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The American Business Council o f
D u b a i
&
t h e
N o r t h e r n
E m i r at e s
Chapter, U.S. Chamber of Commerce
PO Box 37068, Dubai, UAE Tel: +971 4 379 1414 • Fax: +971 4 379 1515 www.abcdubai.com • info@abcdubai.com