Economic Focus Autumn 2018 by BLS Media

‫تأشير‬

VISA

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VISA

If you are travelling to an Arab country and need a visa secured quickly and efficiently, then the Chamber’s Visa Section is the ideal point of contact. We can provide this service whatever type of visa you require such as a business visa, a work visa or a family visa. Please contact Mr Saleh Hasaballah for details of the terms and requirements to obtain your visa at Saleh@abcc.org.uk or 020 7659 4875

www.abcc.org.uk

ARAB-BRITISH CHAMBER OF COMMERCE

Economic Focus is an Arab-British Chamber of Commerce publication. Editorial Team Abdeslam El-Idrissi Editor in Chief Imad Chaara Cliff Lawrence David Morgan Dr Yasmin Husein Arab-British Chamber of Commerce 43 Upper Grosvenor Street London W1K 2NJ Tel: +44 (0) 20 7235 4363 Fax: +44 (0) 20 7245 6688 economicfocus@abcc.org.uk www.abcc.org.uk

CONTENTS Chamber Activities

ABCC Member Interviews

Editorial Foreword

Touchline

Members’ Networking

Sun Mark Ltd

Production/Design

Doing Business in the Middle East

GHS Global Hospitality

BLS Media London Office: Unit 5, “Hiltongrove N1”, 14 Southgate Road, London N1 3LY Tel: +44 (0) 20 7241 1589 media@blsmedia.co.uk www.blsmedia.co.uk

Briefing on Brexit and FTAs

Dundee & Angus Chamber of Commerce

ABCC Member Profiles Berkeley Engineering Consultants

Rayner Essex LLP

Royale Essance Ltd

Advertising Enquiries

Artificial Intelligence in the Middle East 18

BLS Media Sam Hussain Tel: +44 (0) 20 7241 1589 info@blsmedia.co.uk

VAT in the GCC

Al Suwaiket and Al Busaies Attorneys at Law

UAE, Home for International Investment and Talent

Our New Members

Strategic Partnership between UK and Saudi Arabia

UK Economy

New UKEF Office in Dubai

Moving to the UK

Features of the Palestine Economy

Investment Map of Iraq

Changes to the Taxation of UK Property for Offshore Investors

Construction Technologies in the Middle East

UK Quarterly Economic Survey

BLS Media and the Arab-British Chamber of Commerce cannot be held responsible for any innaccuracies that may occur, individual products or services advertised or late entries. No part of the publication may be reproduced or scanned without the prior written permission of the publishers and Arab-British Chamber of Commerce.

ISSN No:1751-4339

Focus Reports Preparation is Key to a Successful Brexit

DOCUMEN TAT ION

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ُ ‫غر‬ ‫ْ َف ُة‬

‫َ ا ِنيَّة‬ ‫يط‬ ِ‫ر‬

‫ر ة ال َع‬ ‫ر‬ ‫ب‬ ‫ي‬ َ َّ ِ ‫ة‬ َ ‫تّ َج ا‬ ِ ‫ال‬ ‫ا ِ بل‬

CHA

FCO

OF R MBE

B U S I N E S S P R E M I U M

D R O P - O F F

S E R V I C E

The Chamber provides either a standard next day service via the Milton Keynes FCO Office, or for the more urgent time sensitive requirements we can provide a same day premium service. Should you require further details, or to make use of this service please contact Mr Cliff Lawrence at cliff.lawrence@abcc.org.uk or 020 7659 4881

www.abcc.org.uk

ARAB-BRITISH CHAMBER OF COMMERCE

Editorial Foreword This edition of Economic Focus addresses some urgent and topical issues facing British and Arab businesses, who, as investors and exporters, are today compelled to operate in a global market place that is highly competitive and increasingly uncertain.

Abdeslam El-Idrissi Editor-in-Chief

The British people’s decision in 2016 to withdraw from the European Union poses major challenges and will inevitably have a major impact on the way we all do business together. The need to get the right deal is a formidable one and the outcome of the protracted UK-EU negotiations is a pressing concern for businesses as they plan ahead. The likely impact of Brexit on business is not unsurprisingly the subject of one of the lead editorials in the current issue of this magazine.

The present state of the British economy is analysed in the latest report, produced by the British Chambers of Commerce, which is included as one of our regular features.

The new rapidly expanding area of artificial intelligence is making a considerable impact on how the global economy functions and reshaping the priorities of business. AI’s potential impact in the Middle East is the subject of one of our feature articles.

The Arab British Chamber is dedicated to helping companies make the most of the wealth of available opportunities for investment and trade between the UK and the Arab States.

Elsewhere, the magazine focuses on the important emerging and developing Arab markets of Iraq and Palestine and what they offer for British companies. The strengths of Britain’s relations with the Kingdom of Saudi Arabia viewed through the prism of Saudi Vision 2030 and the implementation of this ambitious transformative programme is covered in an editorial which outlines the agreement reached between our two kingdoms in the aftermath of the official visit by HRH Prince Mohammed bin Salman Al Saud, Crown Prince and Deputy Prime Minister, to London that took place in March 2018. We highlight the continued and growing investment in the Gulf region, whose importance to the British economy is reflected in the opening of a new UKEF Office in Dubai. To introduce this initiative, we speak to UKEF officials in Dubai about what this development means for companies with interests in the Middle East.

Finally, but not least, we feature several interviews and profiles of the Chamber’s member companies enabling them to showcase their achievements and successes to the combined Arab and British business communities who comprise our core readership.

As a business support and membership organisation, the Chamber is dedicated to achieving stronger and closer relations between the UK and the Arab countries, which we achieve through the services that we provide for our members. We invite you to join the Arab British Chamber of Commerce to take advantage of the opportunities in the Arab markets by accessing the full range of support and assistance that we can provide. Our sole mission is to help you achieve success in these vital and lucrative markets. The choice of editorials in of Economic Focus is guided by this mission and we trust that readers will find much that is valuable within these pages. We hope that this magazine will prove to be an essential and interesting read. We actively invite your feedback and welcome suggestions for themes that you think we should be covering in future issues. We look forward to hearing from you.

ECONOMIC FOCUS

ABCC Members Enjoy Lively Networking Sessions ABCC members are able to take advantage of the frequent networking events that the Chamber hosts as part of its annual events programme. The informal networking opportunities where members can meet representatives from companies in similar and related fields of business always prove to be extremely popular.

ARAB-BRITISH CHAMBER OF COMMERCE

The first networking event of 2018 for ABCC members was held on 15th February. This proved a highly successful occasion, with upwards of 100 executives including representatives from member companies as well as non-members.

Mr Abdeslam El-Idrissi, Director of Trade Services & Acting General Manager, ABCC

The networking social was held in the Rose Suite at the Chamber’s premises where drinks and refreshments were served. Attendees were welcomed by Dr Afnan AlShuaiby, Secretary General and CEO, ABCC, who stressed that the Chamber was devoted to helping companies do business in the Arab world and vice versa. She remarked on the Chamber’s considerable experience, reflected in its celebration of its 40th anniversary last year. Mr Abdeslam El-Idrissi, Director, Trade Services, ABCC, then delivered a presentation on the extensive opportunities emerging across the Arab markets in various sectors and explained how the Chamber could assist companies seeking to access new contracts and tenders.

Dr Afnan AlShuaiby, former Secretary General & CEO, ABCC

He outlined the range of events and activities that the Chamber organises on an annual basis, highlighting recent major trade conferences in Qatar and Iraq, which had each attracted hundreds of potential exporters and investors. He also pointed out the numerous ways the Chamber can assist companies, such as through its raft of publications and its website, not forgetting its documentation services. The Chamber also holds various training programmes including Arabic language courses. 2ND NETWORKING EVENT The Chamber held its second members’ networking event of 2018 on Wednesday 18th April at an exclusive modern venue in the heart of London’s Mayfair. On this occasion, the reception and networking social took place in the Atrium of Grosvenor House Suites by Jumeirah Living, luxury serviced apartments overlooking Hyde Park.

Attracting more than 100 delegates from a plethora of industries representative of the diverse strengths of the UK economy, well over half of the attendees were nonmembers of the Chamber and there was keen interest in the services available through membership. The Chamber’s staff were on hand to assist with any enquiries. Mr Abdeslam El-Idrissi delivered a short welcoming speech on behalf of the Chamber during which he stressed the growing economic strength of the Arab markets and how the Chamber can help companies tap into the emerging opportunities. He thanked hosts, Grosvenor House Suites by Jumeirah Living, for offering its spectacular Atrium space to host the networking event. The company is a member of the Chamber. In his welcoming remarks, Mr Scott Hermiston, Director of Sales & Marketing, Grosvenor House Suites by Jumeirah Living, outlined the attractive services for business visitors and residents available at the exclusive Park Lane venue, which is adjacent to the famous Grosvenor House Hotel. A presentation by Rebecca Ferriday, Associate, CMS, briefed delegates on the new General Data Protection Regulation (GDPR) and explained the steps that all companies, irrespective of their size or location, will need to take to ensure their compliance with the new EU-wide legal regulations which came into force on 25th May. Drinks and canapes were served throughout the busy networking evening with conversations continuing well into the early evening.

ECONOMIC FOCUS

Abdeslam El-Idrissi

International Business Expo Doing Business in the Middle East The Arab British Chamber of Commerce, represented by Mr Abdeslam El-Idrissi, Director of Trade Services and Acting General Manager, participated in this International Business Expo held in Accrington, Lancashire on 6th September and organised by East Lancashire Chamber of Commerce, one of the ABCC’s agent chambers. “This was a fantastic event, the combined experience and level of detail shared by the speakers helped me prioritise which Middle Eastern markets our business needs to enter,” according to one delegate, Ben Ritherdon, Managing Director of Ritherdon & Co. That was the positive response from one of Lancashire’s leading manufacturers and echoed throughout the county’s thriving manufacturing community following the International Business Expo Doing Business in the Middle East. Flying in from the Middle East, fresh with the latest business opportunities to help Lancashire’s businesses maximise their potential in their chosen markets was a truly impressive line up of international speakers. Handpicked for their in-depth market knowledge and connections, the market

specialists included the former Cultural Attaché at the Syrian Embassy in London, representatives from the Iraq Britain Business Council, the Links Group (Qatar and the UAE), AEI Saudi, Aeon Gulf (Kuwait) alongside Mr El-Idrissi from the ABCC, who delivered the opening presentation. Delegates were offered compliance support from Intertek and assistance in securing finance through UK Export Finance as well as hearing from Vision Support Services who successfully export to the region. The School of Language and Global Studies at the University of Central Lancashire treated everyone to local food and clothing and explained Arabic customs. There was a highly charged buzz in the conference room and in the exhibition rooms during the networking sessions as the speakers confirmed that trade between the UK and Arab countries has tripled over the last 20 years. With a vast array of projects worth over £115 billion catering for the power, construction, transportation, hospitality, tourism, educational, aviation, technology and healthcare sectors, not forgetting of course

opportunities for all sectors in the run up and during the Qatar World Cup in 2022. Hosted and organised by the International Business Department of the East Lancashire Chamber of Commerce and sponsored by Emirates, Forbes Solicitors, Progrex it Solutions and The Cardboard Box Company, the twice-yearly International Business Expos are now firmly established as must attend events by Lancashire’s manufacturers wishing to expand existing markets or successfully enter new ones. Stef Heywood, International Business Manager at East Lancashire Chamber of Commerce said: “Growing businesses internationally is a real focal point of the Chamber and being able to bring this wealth of knowledgeable and experienced speakers to Accrington, on your doorstep, is what the Chamber is here for. It’s fantastic to see so many businesses looking at the opportunities that the Middle East can offer.” The ABCC is pleased to cooperate with business organisations across the regions to bring the message of the latest opportunities within the Arab markets.

PUBLIC AT IONS

ARAB BRITISH

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‫الـدلـيـل الـتـجـاري الـعـربـي الـبـريـطـانـي‬ 2018-2019

The new edition of the ABCC’s Arab-British Trade Directory is now available. Sent free of charge to all ABCC members, the Directory is available to non-members at the purchase price of £125.00 inclusive of p&p. The Trade Directory, produced entirely by the ABCC, has just been published in print and online editions. The volume carries data on the UK and Arab markets that should be useful to exporters and investors engaged in bilateral commercial activities.The ArabBritish Trade Directory is the only publication available that covers every single market in the Arab World from Algeria through to Yemen and from the smallest countries such as Djibouti and Comoros to Saudi Arabia and the rest of the GCC.

www.abcc.org.uk

010 ECONOMIC FOCUS

Mr Charlie Morris

Mr Abdeslam El-Idrissi

Speakers reply to questions put by the audience.

Briefing on Brexit and FTAs The Chamber hosted a business briefing on Brexit and its implications for the UK’s efforts to enhance bilateral trade with its Arab partners. The successful Briefing on Brexit and FTAs held at the premises on 27th September was attended by various Arab ambassadors, Arab commercial attaches, ABCC Board members, senior executives, officials, policy makers, journalists and representatives of Chamber member companies. Mr Abdeslam El-Idrissi, Director of Trade Services and Acting General Manager, ABCC, opened the session and welcomed attendees, conveying greetings from the Chamber’s Chairman, the Rt Hon Baroness Symons, who was unable to attend.

Mr El-Idrissi delivered opening remarks that set the scene for the speakers by remarking on the attitude of the Arab States towards Brexit and reflecting on its implications for future bilateral trade. He commented on the sheer difficulties of achieving free trade deals and stated that the ABCC was committed to helping its members deal with such challenging issues as Brexit. The briefing was designed to help resolve the uncertainties and allay some of the confusion surrounding what might happen once Britain has left the EU. Mr El-Idrissi pointed to the GCC-British Economic Forum organised by the Chamber

and held in July 2016 within just a few days of the EU referendum and at which Dr Liam Fox, Britain’s Secretary of State for International Trade, was one of the keynote speakers. Mr Charlie Morris, Head of Public Engagement for Trade Agreement Continuity, at the UK Department for International Trade (DIT), spoke on the topic of “Trade Agreements Continuity”. Mr Morris explained that in the event of a deal with the EU, the UK would be able to see new free trade deals coming into force after January 2021. The government recognised that the main concern of the business community was the uncertainty surrounding what will happen after Britain leaves the European Union.

ARAB-BRITISH CHAMBER OF COMMERCE 011

He stressed that the UK government hoped to achieve a deal with the EU that ensured no disruption to trade at the point of exit in 2019 by seeking to ensure the continuity of existing agreements.

UK was already participating in free trade arrangements with several Arab countries, namely Morocco, Algeria, Tunisia, Egypt, Jordan, Lebanon and Palestine, through the Euro-Mediterranean free trade area.

He stated that the BCC was lobbying government to ensure that the opinions of businesses as buyers and suppliers would be taken account of during the planning of future trading arrangements.

Much of the discussions held with potential future trade partners had been positive and the overwhelming impression received was that they wanted good relations to continue, he said.

Mr Morris stressed that FTAs should not be seen as the be all and end all of global trade. The UK does successful trade with many countries where no FTA exists, such as the Gulf states, who were vital trading partners for British business.

Mr Smyth looked at some key questions to which the business community still needed to receive clear answers, highlighting various questions such as: Would there be customs declarations between the UK and the EU? Would service firms have to register for VAT in every EU state where they have customers? And What would the UK’s immigration regime look like in the future?

Furthermore, Mr Morris outlined the consultations on future free trade deals that the DIT had launched in July 2018 with many countries, such as the US, Australia and New Zealand alongside talks on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). He pointed out that the

Mr Liam Smyth, Director – Trade Facilitation, British Chambers of Commerce (BCC), considered the current state of UK-EU negotiations and the preferred outcome for business and exporters.

Businesses certainly didn’t want to find that goods would be delayed at the border due to a

012 ECONOMIC FOCUS

Abdeslam El-Idrissi

Mr Liam Smyth

Ms Victoria Hewson

Mr Gareth Sean Kobrin

Mr Thomas Lake

lack of agreement over customs and they also needed the access to a skilled workforce to continue. Mr Smyth pointed out that the standards and regulations that business followed were created by industry bodies independent of the EU. British standards (BSI), he said, had been in the vanguard of international standards for decades and he hoped that this would continue after Brexit. Ms Victoria Hewson, Counsel to International Trade and Competition Unit, Institute of Economic Affairs, spoke on “Plan A+ – an Alternative Approach”. She highlighted a new report that had been published by the IEA think tank which was titled, “Plan A+ Creating a Prosperous PostBrexit UK” which argued that the government’s Chequers proposals were unworkable. As an alternative, Ms Hewson argued for a “Canada-style” trade deal which would enable the UK to strengthen its trading relationships around the world. She remarked that the UK should be free to act independently within the WTO and during its negotiations with

other countries and trade blocs; and she looked ahead to domestic reforms for greater competitiveness and protection of consumer welfare. Mr Thomas Lake, Senior Political Risk Analyst, Fitch Solutions, outlined the political risks that were associated with Brexit and explained the likeliest outcome based on the expert analysis that Fitch had undertaken. “The chances of a Brexit deal that takes the UK out of the single market and the customs union are evaporating as the government of Prime Minister Theresa May struggles to present a coherent plan amid huge divisions within her party, intransigent EU negotiators, an opposition seeking to exploit the government’s weakness, and rising public antipathy,” he stated. Faced with this situation the possible outcome was a “soft Brexit”, Mr Lake concluded, explaining that Fitch “have changed our core view on Brexit to a ‘soft’ Brexit, where the UK is tied closely into EU institutions, the single market, and a customs union.” Finally, the floor was given to the event’s sponsor, Mr Gareth Sean Kobrin, CEO,

VATGlobal, who looked at the VAT considerations of leaving the single market and the customs union. Mr Kobrin said that as a member of the EU, the UK currently complies with laws and regulations outlined in the Principal EU VAT Directive, as well as the European Union Customs Code. In addition, the European Court of Justice has jurisprudence over UK courts, meaning that its VAT rulings have direct effect on UK VAT law. It was not clear how this would change as a consequence of Brexit, but business needed to be kept well informed of the issues. The presentations were followed by questions from the audience who raised various issues such as changes to quotas and tariffs and the prospects for increased trade volumes once the UK is outside the EU. The well attended event concluded with a reception where attendees were able to engage in informal networking, a popular feature of ABCC events. The Brexit Briefing was generously sponsored by ABCC member company, VATGlobal.

LET

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Third Floor

Highlights

• Period Offices • Central Heating • Passenger Lift • Staffed reception • Shared meeting facilities by arrangement • Shared garden/courtyard area Property details

• Building type : Office • Planning Class B1 • Secondary Class B1 • Sizes : 702 to 1,817 sq ft • Lease details : New leases direct from the Landlords for up to five years. For more details, or to request a viewing please contact Mr Mark Njoroge at: 0207 659 4872 mark.njoroge@abcc.org.uk

Fourth Floor

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Dundee & Angus Chamber of Commerce welcomes increased partnership with the Arab-British Chamber of Commerce The new V&A Dundee Museum of Design

BY ALISON HENDERSON CHIEF EXECUTIVE OFFICER, DUNDEE & ANGUS CHAMBER OF COMMERCE The City of Dundee and the surrounding area is currently seeing a period of exciting and ambitious economic regeneration.

only UK destination to be included in Lonely Planet’s list of top 10 European destinations for 2018.

The Tay Cities Deal will see a significant UK & Scottish government investment in the region, backed up by public and private partnership investment to drive growth, jobs, encourage skills development and progress infrastructure such as roads, rail links, buildings and communications networks.

There are a wide array of key sectors in the region: Tourism; the Creative Industries; Digital Innovation; Health & Care; BioMedical Innovation; Food & Drink; Oil & Gas Decommissioning; Renewable Energy; Engineering as well as very strong Education & Publishing establishments.

The V&A Dundee Museum of Design opened its doors on 15th September in what is an outstanding cultural investment project at the heart of a £1 billion transformation of Dundee’s Waterfront.

The University of Dundee is listed as one of the world’s top 200 universities (Times Higher Education, 2018) and is one of only 12 in the United Kingdom to also hold a Gold Award in the Teaching Excellence Framework 2017. The university’s research is the best in the UK at influencing innovation, according to the Nature Index 2017 Innovation supplement report. It has a strong track record in spin-out companies, and there are many making great strides in their fields, such as Exscientia, an innovative company at the forefront of Artificial Intelligence (AI)-driven drug discovery and STAR-Dundee, an aerospace engineering company which designs electronic components and test equipment for spacecraft.

The museum is expected to attract more than 500,000 visitors in its first year, and the ripple effect of that will be felt across many sectors, not just in the obvious areas of the tourism, hospitality and service industries. Dundee has received many accolades recently: it was dubbed the ‘coolest city in Scotland’ by the Wall Street Journal, named one of the top places to visit in 2018 by Bloomberg and is the

Abertay University, meanwhile, is leading on many key sectors nationally such as digital and games design, food and drink innovation and cyber security. THE AL-MAKTOUM COLLEGE OF HIGHER EDUCATION Established in Dundee in 2001, the Al-Maktoum College of Higher Education is a unique, independent, research-led centre of excellence for students and staff of all religions and none. Funded primarily by the Al-Maktoum Foundation, it was the first higher educational establishment of its kind in Scotland, promoting multiculturalism and greater understanding while building bridges between communities through its promotion of Middle Eastern and Islamic Studies. The College enjoys close links with its Patron, His Highness Shaikh Hamdan Bin Rashid Al-Maktoum. Dundee & Angus Chamber of Commerce has a long-standing relationship with the college as we seek to engage the business community with their programme of activities, support their students and build closer business, cultural and investment relationships between

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Scotland’s First Minister, Nicola Sturgeon, speaks to Dundee & Angus businesses at Al Maktoum College of Higher Education.

Rt Hon Philip Hammond, UK Chancellor of the Exchequer (centre) with Dundee & Angus business leaders, including Alison Henderson, CEO, Dundee & Angus Chamber of Commerce (fourth left). the two communities. We are also working to foster closer economic relationships between Dundee and Dubai, who have been sister cities since 2004. The Chamber’s export documentation customers have many links with the Arab world – there is a thriving agricultural trade with many, many tons of seed potatoes leaving the shores of our region each year destined for Egypt, the UAE, Saudi Arabia, Qatar and Morocco to name just a few. In addition, there are of course many oil and gas trade connections into Dubai itself, and the wider MENA region. STRATEGICALLY CENTRAL LOCATION Dundee benefits from a strategically central location, with access to 90% of the Scottish population in a 90 minute drive time. This, paired with the city’s exceptional e-connectivity, means that Dundee is ideally situated to support investors and entrepreneurs. Dundee offers the conditions that businesses need to thrive, with access to: the right land, buildings, location and infrastructure; an attractive physical environment and a sensible and welcoming planning regime. The city can offer highly competitive office and industrial space that is tailored to a wide range of new and expanding companies. There are high-tech facilities to support knowledge-based businesses at specialist sites. The Central Waterfront will offer 42,000m² of Grade A office space, as well as the availability of shovel-ready development land for mixed-use developments across 18 sites. Dundee and the wider region are committed to actively supporting investors, developers and businesses – finding high quality and cost-effective solutions to enable businesses to relocate or expand within the area. DUNDEE & ANGUS CHAMBER OF COMMERCE As the leading business organisation in the region, and one of the fastest growing Chambers in the UK, the Dundee & Angus Chamber of Commerce represents over 680 business members who between them employ over 50,000 people.

Working hard to help provide members with the business connections and opportunities they need to flourish; the Chamber represents members’ views and uses that collective voice to influence opinion makers. Passionate about Dundee and Angus, key to our continued success is promoting the region as a world-class business destination, while helping the local business community to thrive. Delivering an annual events programme which sees in excess of 70 events delivered, ranging from small training sessions to large business lunches, the business community is always keen to engage in networking, learning sessions and to draw inspiration from the many tales of business success to be heard. Our business mentoring programme continues to be very well regarded, with over 50 pairings taking place each year, seeing a huge wealth of experience and support handed on from one business person to another. A number of significant Partners events also take place as part of the Chamber programme. In recent times we have hosted high-profile political and business leaders such as John Swinney, the Deputy First Minister for Scotland and Cabinet Secretary for Education and Skills, and other UK Ministers of State. The Scottish Chamber of Commerce Board, VisitScotland and Dundee University have joined us for business dinners. We hosted Lord Andrew Dunlop for a Tay Cities Deal Influencers Event and held a Business Brexit Discussion with Michael Russell, Minister for UK Negotiations on Scotland’s Place in Europe. The Summer of 2018 so far has seen Business Roundtables with Ivan McKee and Caroline Nokes MP. In 2017, Dundee & Angus Chamber of Commerce hosted The Rt Hon Philip Hammond, UK Chancellor of the Exchequer, for a Business Roundtable discussion on the economy, the future needs of business and investment for our region. The team and Board of Directors are ambitious leaders who support businesses to grow and invest at a time when many eyes are on Dundee. Developing strong relationships within our region, but also looking out to the world is a key priority as our businesses look to do the same.

Led by myself as CEO, the team of ten work across Membership, Events & Marketing and International Trade services. In addition to a very strong membership offering, the Chamber runs around 80 events each year, reaching more than 3,500 attendees. The International Trade team supports around 80 exporters and has close links with international chambers. In 2017, the Chamber team visited Beijing, Yantai and Jinan in China, Copenhagen and Aarhus in Denmark, Stockholm and Västerås in Sweden. In addition, a team of six work from our Chamber in a Scottish Government initiative: Developing the Young Workforce. This team helps young people get the right skills and experiences to move from education into employment, working to bring businesses and education closer together. This helps young people become more work ready through taking part in quality work-related activities, growing work-based learning such as apprenticeships and collaborating on a work-focused curriculum. Dundee & Angus Chamber of Commerce works closely with the Scottish Chambers of Commerce (SCC) and the British Chambers of Commerce (BCC), connecting into their respective networks of over 70 other UK-wide Chambers, representing tens of thousands of businesses across the country. SCC & BCC work hard to represent the voice of the respective business communities with the Scottish and UK governments, at a time in the UK when the voice of business, and the need for frictionless international trade, has never been more important. We continue to press government for the right environment for business to flourish, to access the workforce and talent that they need to grow and to ensure that there are the tools and investment needed in order to innovate and improve productivity. Dundee & Angus Chamber of Commerce very much looks forward to working in close collaboration with Abdeslam El Idrissi and the wider trade team at the Arab-British Chamber of Commerce. You may follow our news on social media at @dundeeandangus or visit our website www.dundeeandanguschamber.co.uk

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Preparation is the Key to a Successful Brexit BY ANASTASSIA BELIAKOVA, HEAD OF TRADE POLICY, BRITISH CHAMBERS OF COMMERCE

With months to go until the UK leaves the European Union, the clock is ticking for government and businesses to get themselves ready. For too long, the political noise around Brexit meant that companies couldn’t make heads or tails of the UK government’s position, let alone figure out how it would impact them. There is still a lack clarity on some of the government’s ambitions, notably on the future customs relationship with the EU. In the meantime, the debate is dominated by terms that mean very little for most people not closely following the negotiations. Firms are far more concerned about logistics than labels. Talk of models such as Norway plus or Canada minus mean little to most people. Instead, the questions we hear from businesses are firmly focused on the practicalities. Will goods be subject to customs checks and paperwork? Will there be delays at borders? Who does VAT get paid to? Who can be hired from abroad, and for how long? PLANNING AHEAD Across UK business communities there are, of course, diverging views of the preferred nature of the future relationship with the EU, but regardless of ideologies, all firms need to be thinking about how a new relationship will affect them. Despite the mantra of UK and EU negotiating teams that “nothing is agreed until everything is agreed”, the recent endorsement of both sides of a transition period at least means

that firms across the UK and EU can make investment and hiring decisions over the next three years with some confidence. However, the deadline of the end of the transition period in December 2020 means that companies can’t afford to be complacent about planning for the future – there just isn’t the time. The trouble is that companies have not only been waiting to enact expansion and investment plans – many have also been ignoring preparations for Brexit altogether. Firms need to be looking now at how different scenarios will impact their operations, and how they’ll respond. This is understandably a burden on energy and resources, but time spent thinking through changes now can yield real dividends in the future and avoid unnecessary disruption. Large, well-resourced firms may have both the time and the capacity to analyse and plan for the ups and downs of the negotiations, as well as to put contingency plans in place – but what about SMEs? When you are a business with 50 employees, focused on making a profit at best or making ends meet at worst, you will be dealing with issues as and when they arise. Over the last two years, many firms have had to simply absorb higher input costs due to the depreciation of sterling. Most are just getting on with their day-to-day job, with any ‘extra’ time being spent on trying to fill gaps in staffing – the most pressing issue for UK businesses of all sectors and sizes.

Only a minority have started thinking about administrative costs related to border checks, potential exposure to regulatory changes, and increased VAT burdens. While we have not had much clarity yet on the future UK-EU relationship, we know that we are leaving the EU VAT area, and that we will no longer be in a Customs Union. Our recent research with the Port of Dover found that a third of companies that will be affected by the implementation of new customs procedures between the UK and EU still aren’t planning for it. Many traders across the UK rely on a justin-time model, depending on the immediate delivery of material and components. These firms can’t afford for their goods to be stuck at borders or left sitting at ports because the necessary preparations weren’t made. To prepare for the changes, firms will need to find more working capital, apply for guarantees from their banks, make new arrangements with freight forwarders, and even potentially decide to move some of their operations to the EU. All of this takes time, money, as well as a thorough review of their existing arrangements. This means that transition is not ‘extra’ time – it is the minimal time necessary to prepare for the changes ahead. In what will be a time of significant change for many, we don’t want a scenario where companies are caught on the back foot. Customs processes, regulatory compliance, standards checks and VAT payments are all facets of operations planning that businesses can’t afford to leave until the last minute.

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The same applies to governments both in the UK and the EU – if we are to have a ‘minimal friction’ system of customs checks in the future, then physical infrastructure such as inland clearance, and IT systems for quick risk assessments must be implemented as soon as possible. But above all, governments need to start preparing people: educating companies in doing customs declarations, as well as making sure there are enough customs officers ready to support businesses. Failure to do so could risk leaving tens of thousands of SMEs that trade across the Channel unprepared when the transition period comes to an end. The sheer volume and speed of trade between the UK and EU reinforces how vital it is for both government and business to be clear on a delivery timetable for the necessary infrastructure and systems to be put in place. FACING THE FUTURE Change is not to be feared – but it must be met head on, with shared business interests and realities always in the front of our mind. Aside from the framework for the future relationship, it is this practical preparation – unsexy and administrative, but absolutely

critical – that must be the priority for the UK government for the year ahead.

calling for an open and responsive migration system post-Brexit.

UK businesses are eager to discover new opportunities in growing markets further afield, such as across the Middle East, but need clarity about the status with Europe to be safe in the knowledge that their supply chains will continue to operate efficiently in the future.

Businesses tell us that they will accept that there will be some form of registration in future for European workers, but that they must be able to access skills and talent from the Continent with minimal costs, barriers and delay after Brexit – irrespective of the final settlement between the UK and the EU.

Fundamentally, until the UK government decides how close its regulatory relationship will be with the EU in the future, everything else remains up in the air for businesses. Which agencies and regulators UK businesses will need to adhere to after Brexit is also a crucial question that remains unanswered. This discussion is still being postponed – but at a certain point, there will be no more prevaricating – as there are real, practical issues that need to be addressed.

If we are to maintain a flexible migration system, costs must be brought down to make it easier for firms to hire when they simply cannot find the skills at home. Ultimately, for the UK to make a success of Brexit and be ready to take advantage of new opportunities, neither government nor business can afford to stick its head in the sand and hope for the best.

Government and business must work together to determine where it is actually necessary to create new regulatory agencies, striking the right balance between the desire to repatriate regulatory powers and maintaining market access to the EU. There is also the fundamentally important question of future immigration policy, which unlike many Brexit-related topics, isn’t conditional on negotiations with Brussels, but is firmly in the hands of the UK government alone to deliver. Skills shortages are currently at critical highs, and at a time of virtually full employment, business communities are

There is no denying that a lot remains up in the air when it comes to Brexit, but businesses can cope with, and indeed, embrace the change. As they have for centuries, firms must adjust to their new trading environment – or become history themselves. Many companies may face real headwinds over the coming years – yet by capitalising on change, our businesses communities can forge ahead, as new firms emerge, and existing firms grow and evolve. Anastassia Beliakova can be contacted at www.britishchambers.org.uk/about-the-bcc/ our-people/international-trade/anastassiabeliakova.html

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Potential Impact of Artificial Intelligence in the Middle East Artificial Intelligence is a source of both huge excitement and apprehension. In this article, PwC considers AI’s potential economic impact in the Middle East. In our broad definition, Artificial Intelligence (AI) is a collective term for computer systems that can sense their environment, think, learn, and act in response to what they’re sensing and their objectives. Forms of AI in current use include digital assistants, chatbots and machine learning among others. Types of AI include: Assisted intelligence: Helping people to perform tasks faster and better. Automated intelligence: Automation of manual/cognitive and routine/non-routine tasks. Augmented intelligence: Helping people to make better decisions. Autonomous intelligence: Automating decision-making processes without human intervention. As humans and machines collaborate more closely, and AI innovations come out of the research lab and into the mainstream, the transformational possibilities are infinite. CHANGING THE GAME AI is going to be a big game changer in the global economy, and much of the value potential is up for grabs. We estimate that AI could contribute up to $15.7 trillion to the global economy in 2030, more than the current output of China and India combined. Of this, $6.6 trillion is likely to come from increased productivity and $9.1 trillion is likely to come from benefits to consumers. In the wake of the fourth industrial revolution,

governments and businesses across the Middle East are beginning to realise the shift globally towards AI and advanced technologies. They are faced with a choice between being a part of the technological disruption, or being left behind. When we look at the economic impact for the region, being left behind is not an option. We estimate that the Middle East is expected to accrue 2% of the total global benefits of AI in 2030. This is equivalent to $320 billion. In absolute terms, the largest gains are expected to accrue to Saudi Arabia where AI is expected to contribute over $135.2 billion in 2030 to the economy, equivalent to 12.4% of GDP. In relative terms the UAE is expected to see the largest impact of close to 14% of 2030 GDP. The annual growth in the contribution of AI is expected to range between 20-34% per year across the region, with the fastest growth in the UAE followed by Saudi Arabia. The magnitude of the impact expected in these two economies is unsurprising given their relative investment in AI technology compared to the rest of the Middle Eastern region – both countries place within the top 50 countries in the world on the Global Innovation Index 2017 in terms of their ability to innovate and the outputs of their innovation. HOW CAN THE REGION PLAY TO WIN? The world is moving towards AI and in these early stages of development, there is an opportunity for the region to become a key player in the global agenda. Our ‘$320 billion scenario’ takes into account what the region is doing now. However, there are greater,

untapped opportunities that could increase the impact of AI on the region’s economy. THE CURRENT STATE OF PLAY Parts of the region have already embraced AI and the new digital age. Analysis conducted by the International Data Corporation (IDC) estimates that spending on cognitive and AI systems in the Middle East and Africa (MEA) region will grow from $37.5 million in 2017 to over $100 million by 2021, representing a growth rate of 32% a year. The UAE, Saudi Arabia and Qatar especially have demonstrated strong commitment towards the development and implementation of AI technologies. Businesses in these parts of the region have been investing heavily in new technology, supported by governments as early consumers of the technology. Outside the Gulf economies, however, adoption has been slower. The differences in adoption levels are driven by differences in, for example, infrastructure and access to skilled labour, key enabling factors for AI development. It is important also to note that whilst the volatility in oil prices is taking its toll on the economic prospects of the region, it is creating the need for governments to seek alternative sources for revenue and growth. The development of non-oil sectors through investment in AI technologies could strategically position the region for the years to come. UNITED ARAB EMIRATES In the UAE, AI is at the forefront of the government’s strategic plans. In October 2017, the government launched its strategy for AI,

ARAB-BRITISH CHAMBER OF COMMERCE 019 models and to ultimately reduce the country’s dependence on oil revenues through a diversification of the economy. Strategic objectives as part of this vision include for example: • To improve the efficiency and effectiveness of the healthcare sector through the use of information technology and digital transformation. To achieve this, it has set itself a target to increase the percentage of Saudi citizens who have a unified digital health record from 0 to 70% by 2020; • To provide citizens with knowledge and skills to meet the future needs of the labour market. To achieve this, it has set itself a target to increase the percentage of internet users in Saudi from 63.7% to 85% by 2020.

demonstrating its commitment towards the technological enhancement of the nation. Alongside this strategy, HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, appointed HE Omar Bin Sultan Al Olama as the first Minister of State for AI. Within the UAE, Dubai is leading the way with AI. The Emirate’s strategies include, among others: • A Smart Dubai strategy which aims to transform the city through innovation and digital transformation, launching an AI smart lab in 2017 focused on training public and private sector employees in implementing AI in their fields; • A Dubai 3D Printing Strategy, targeted at the construction, medical products and consumer products sectors with a goal of having 25% of buildings in Dubai constructed using 3D printing technology by 2030; • A Dubai Autonomous Transportation Strategy, which aims to cut transportation costs by 44%, carbon emissions by 12% and accidents by 12% by transforming 25% of all transportation in the city to autonomous modes by 2030.

While there is some investment in AI in Saudi Arabia, supported by a commitment by the government to digitally transform the country, investment is currently largely driven through domestic sources; by the country’s Sovereign Wealth Fund in particular. To maintain momentum in the pace of technological advancement in the country, there is a need for it to attract more foreign investment which is currently constrained by the challenges in the business environment; in 2017, the country ranked 92 out of 190 countries in the World Bank’s Ease of Doing Business index. Addressing concerns raised by the business community will allow it to attract external investment which will bring with it skills and expertise to upskill the local population. This will also allow it to reduce the considerable youth unemployment placing a burden on the economy, which has increased from 24.1% to 32.6% between 1991 and 2017, by generating high-skilled employment opportunities. AI AT THE INDUSTRY LEVEL The potential for AI adoption varies by industry. Research conducted by the International Data Corporation (IDC) finds that the biggest opportunity for AI in the Middle East and Africa region is in the financial sector where it is estimated that 25% of all AI investment in the region predicted for 2021, or $28.3 million, will be spent on developing AI solutions. This is followed by the public services, including education and healthcare, and the manufacturing sector. The potential gains at the industry level are likely to depend on two broad factors:

Saudi Arabia has adopted a clear vision for the future which points towards the development of AI-based technologies.

1. The ability to automate processes: labourintensive sectors, such as retail and health, with greater scope for automation, are likely to see the largest initial gains from AI. These industries are expected to see significant labour productivity benefits from AI adoption.

Saudi’s Vision 2030 and its National Transformation Programme 2020 identify digital transformation as a key goal to activate economic sectors, to support industries and private sector entities, to advocate for the development of public-private business

2. Sector-level use cases for product enhancement: sectors with compelling use cases in AI applications are more likely to innovate in early stages of AI development. PwC’s Data Analytics team in the US have developed an AI Impact Index through

KINGDOM OF SAUDI ARABIA

conducting a qualitative assessment to estimate the scale of product enhancements we will expect to see by 2030. The analysis assessed almost 300 use cases to identify the scope for product enhancements through personalisation, product quality, and time savings for consumers as well as scope for increased variety in products. The index indicates the highest potential for product enhancements in the health, automotive and financial services sectors. Despite the greater potential for direct gains in specific sectors, the gains are unlikely to remain concentrated in these sectors which develop and adopt AI technologies. As these sectors experience growth through the direct effects of AI, their demand for inputs from other sectors of the economy will also grow. Similarly, the increased wages associated with higher labour productivity in these sectors will also increase consumer demand in all sectors of the economy. These indirect and induced impacts of AI are likely to be felt by firms and consumers throughout the economy and will add to the total economic impact of AI. ENDLESS OPPORTUNITIES AWAIT As our analysis underlines, AI has the potential to fundamentally disrupt markets in the Middle East through the creation of innovative new services and entirely new business models. We have already seen the impact of the first wave of digitisation. With the eruption of AI, some of the market leaders in ten, even five years’ time may be companies you have never heard of. Tomorrow’s market leaders are likely to be exploring the possibilities and setting their strategies today. As we have noted throughout our findings, in its current scenario, the region is able to take their cut of the AI phenomenon and inject $320 billion into the region. If governments and businesses nurture and mature AI to its fullest extent, there is so much more ‘up for grabs’ and endless opportunities await. CONTACTS Stephen Anderson Middle East Clients & Markets Leader, PwC stephen.x.anderson@pwc.com Richard Boxshall Middle East Senior Economist, PwC boxshall.richard@pwc.com Hamish Clark Partner, ME Health Industries, PwC hamish.clark@pwc.com Ali Hosseini Middle East Digital Services Leader, PwC ali.hosseini@pwc.com Shivangi Jain Economics Consulting, PwC shivangi.w.jain@pwc.com

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ARAB-BRITISH CHAMBER OF COMMERCE 021

VAT in the GCC Marks the Beginning of a New Era BY GARETH SEAN KOBRIN CHIEF EXECUTIVE OFFICER, VATGLOBAL

VAT ISSUES IN THE GULF The implementation stage of any strategic project is always the most complicated. Whether installing a simple piece of software or a complex new tax regime, there are bound to be various issues. These pitfalls can range from poor planning to the lack of sufficient resources, but in almost all cases the common thread for an unsuccessfuL execution is inadequate communication. Having had hands-on experience in the introduction of various VAT-related initiatives, I believe there are certain key areas which require critical focus. In analysing the lessons I personally learned from the implementation of VAT in Mauritius in the late 1990s and the error-ridden launch of the online submission portals for crossborder VAT claims in the European Union, I hope we can shed some light on the current status of VAT in the GCC and possibly predict where things might go wrong.

So this is where we are: the VAT regime is now in force in the United Arab Emirates (UAE) and in the Kingdom of Saudi Arabia (KSA). Even as recently as the end of 2017 there were rumours that the UAE and KSA might delay its introduction, partly to allow businesses more time to prepare given the late publication of the legislation and partly because of a fear of a competitive disadvantage with the GCC countries that were not introducing VAT. So far both countries appear to be coping fiscally. Communication from both the public and private sectors has been very good. Prices in the regions do appear to have increased by approximately 5% as would be expected – and our phones and website are not as frantic as they were towards the end of last year, which seems to imply that most businesses have coped well enough with VAT’s arrival. The amount generated from VAT revenue in the UAE alone is expected to be between AED8 and AED12 billion in 2018 – and

such a high value project should always be managed in stages. According to Younis Al Khoury, Undersecretary at the UAE’s Ministry of Finance, the implementation of VAT was always intended to take place in several phases. (VAT registration in Phase 1 was obligatory for UAE companies that generate an annual revenue of AED3.75 million and above. For UAE businesses with an annual revenue of between AED1.87 and AED3.75 million, VAT registration is optional). PHASE 2 With the roll-out of Phase 2, the registration will become obligatory for all businesses and this will hopefully coincide with similar Phase 1’s in the other GCC countries. So let’s examine some of the key considerations in this crucial next chapter. CHANGE IS INEVITABLE There was always a lot of speculation as to

022 ECONOMIC FOCUS exactly what ‘type’ of VAT regimes would be implemented across the GCC. At the moment, it appears that the UAE in particular has applied a model most similar to that of New Zealand. The New Zealand model comes closest to resembling the ideal as it is levied at a single rate and is based on a relatively broad consumption of goods and services, extending through the retail stage of the economy with minimal exclusions. Most jurisdictions have adopted a European VAT model, however, which is marked by multiple rates and varying degrees of exemptions. In practice, no two VAT systems look exactly alike but show differences in rates, thresholds, exemptions, refunds and coverage. I think it is safe to say that the legislation that is in place today will not exist forever, and the inevitable changes could come at a number of levels. If the legislation fails in any way at a micro-level, the Federal Tax Authority (FTA) and courts may be able to interpret it in a way that results in a fairer, more just outcome. If that is the case, it is important that these interpretations are well disseminated, and consistently applied. It would be detrimental to the rule of law, and in turn to the business environment, if rules are applied inconsistently. After a few practical examples or cases, we may discover that the wording of the legislation is not sufficiently clear to ensure a simple judicial solution. In this instance, the tax authorities must be open-minded to the option of amending the legislation itself. That will give rise to questions of whether any desired amendment is consistent with the mandated approach outlined in the Unified VAT Agreement. If not, that will give rise to some difficult policy decisions on the part of the GCC countries – whether to keep the legislation as it is, whether to seek an amendment to the Unified VAT Agreement, or whether to change the law and sort out the inconsistencies with its international obligations later. A decision would also need to be made about whether any such corrective changes should be retrospective or not. If so, significant VAT refunds may in theory arise, but this is again not an entirely straightforward point. The final point on change is more of a social and political one. The legislation may work as intended, but that intention may change. The local authorities may determine some supplies that are currently zero rated should, say, be exempt. Or some supplies that are currently standard-rated should be zero rated. Changes in tax policy are sometimes criticised, but often there are good reasons for amending the scope and incidence of a tax. INCONSISTENCY ACROSS MEMBER STATES The four remaining GCC states are now in the spotlight as they prepare to implement VAT as well. Bahrain, Kuwait, Oman, and Qatar were all also due to start collecting VAT in 2018, and

ARAB-BRITISH CHAMBER OF COMMERCE 023 since the countdown began in January, these four states have broadcast mixed messages. None have so far published final versions of the necessary legislation or regulations, or begun registering potential taxpayers. As far as I am aware, there have been no formal announcements of any specific dates, although there have been plenty of rumours. Bahrain is reportedly next in line (October 2018) while Oman has shifted expectations to early 2019. Kuwait and Qatar have been tight-lipped on the matter. There have certainly been no laws released yet. By April 2017, the UAE and the KSA had already made announcements, revealed their timelines, and engaged the business community. Although Bahrain indicated it would start VAT in October, the authorities there have now appeared to push the date back to the end of the year. Kuwait’s Cabinet approved draft VAT bills in August 2017, but the legislation is still before the country’s parliament. Oman’s draft VAT law, approved by its consultative assembly in November 2017, is under discussion by the government. And Qatar’s Cabinet passed a draft VAT law and executive regulations in May 2017, but a political dispute erupted with the other GCC states while the plans were awaiting approval, prompting speculation that Qatar might withdraw from the tax scheme altogether. In February 2018, the UAE newspaper, The National, reported that the IMF was convinced that the four countries would need until mid-2019 to prepare for VAT. What I found quite perplexing on my various visits to the UAE in 2017 is that there was a sense of denial among the local business community. Several business leaders I spoke with doubted whether VAT would actually be implemented at all, and therefore there was a clear delay in preparation. It is unlikely this denial will be repeated in the other GCC countries since it is now a reality in the UAE and the KSA; in fact, this could aid a much swifter introduction. The one current difficulty is how to treat supplies between the GCC countries until they have all implemented VAT. It is clear the other governments will have to follow the GCC framework agreement, so we are advising our clients based on the framework and the existing Saudi and UAE regulations. Many businesses in the region have operations in the other GCC markets, so many of the larger firms that had to be compliant for their dealings in the KSA and the UAE should have context when the VAT regimes are finally introduced. The most interesting issue for me will be whether any of the other states deviate from the GCC framework in any way. We have seen this happen in the EU where one member state decides to interpret a directive differently – and it can have anticompetitive and legal implications.

NON-COMPLIANCE, FRAUD AND EVASION Evasion and fraud are important issues in the administration of VAT. The hard part has been done in the UAE and the KSA, but keeping up with what remains a vast paper trail of invoices is a formidable task. In most EU countries we estimate the ‘VAT gap’ to be in the region of tens of billions each year. That is the difference between tax actually collected and the tax that would have been paid if all individuals and companies complied with both the letter of the law and the tax authorities’ interpretation of the intention of government in setting the law. At 5% of the potential revenue yield, this is clearly a cause for concern. Not all of the VAT gap represents outright fraud: a significant part of it reflects innocent error or legal tax avoidance, for example. But illegal evasion is significant. In general terms, evasion falls into two main categories: • Traders understating taxable sales and/or overstating creditable inputs; • Traders disappearing without paying a VAT bill they owe. The first category involves a range of different practices. These include working cash-inhand and not recording sales that ought to be taxable, or failing to register for VAT despite being liable. Invoices or input purchases can be faked, or it is possible to claim that sales are zero-rated (for example, by faking export invoices) when they should not be. Evaders can also exploit the different rates of VAT on different forms of transaction, taking advantage of the difficulty in policing borderlines between different activities: for example, consumption versus business expenditure; inputs to exempt versus nonexempt activities; inputs from registered versus unregistered suppliers; taxable versus zerorated inputs. Some of these problems are inherent to a VAT system, though many are concrete and expensive examples of the consequences of the complexity created by deviations from uniformity. The way VAT works does limit the scope for evasion because it is harder to understate sales when the buyer wants an invoice with which to reclaim input VAT and, correspondingly, it is harder to overstate inputs when one needs an invoice from the seller. Other aspects of VAT policy, such as the choice of the registration threshold, the speed with which payment is demanded and refunds are given, and the sheer level of resources devoted to the tax office’s enforcement activities, could also have an impact on evasion, though of course there are also other considerations involved in each of these choices. The second form of evasion mainly arises when individual traders have large net VAT liabilities. The fractional nature of VAT is designed precisely to deal with this problem:

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the VAT liability on a final consumption sale is divided across the supply chain so that no individual trader gains that much by disappearing. Of course, where a single trader genuinely creates significant value added, there is still a substantial incentive to disappear, but much less so than under a retail sales tax. And the very fact that the value added is genuine must reduce the incentive to sacrifice the long-term benefits of remaining active for short-term fraudulent gains. Those traders with the biggest incentive to evade VAT in this way are those with large liabilities relative to their turnover. There is not much scope for this in a purely domestic context because most zerorated items are final consumption goods. But, as we shall see, the zero-rating of exports does create significant opportunities for fraud. RELIANCE ON EXPERTS The UAE and KSA authorities have done well to ensure that most of the practical elements of the VAT implementation can be dealt quite easily by businesses. The registration processes are simple enough and the guidance that we have read about concerning how the VAT returns will be filed online seems pragmatic and clear. Thus far there have not been any technological issues as well, which can often happen in large-scale introduction of online platforms that need to be accessed by thousands of businesses. Having said that, there are still several areas where there is no clarity at all; and these are mostly in the technical arena where material financial impact can occur if mistakes are made. I would certainly encourage businesses to seek advice on all matters where the VAT treatment or practical application of the legislation is not immediately clear. I would go as far as to recommend that businesses find an external advisor to help with both the practical aspects (filing the VAT returns)

and technical issues (when to charge VAT etc). Certainly for the first financial year outsourcing of the VAT function will ensure that major errors are avoided. It is not clear how stringent the fiscal authorities will be in response to administrative errors (like filing a VAT return late) or compliance issues (incorrect invoices or VAT treatment), but I think it is safe to assume they will seriously consider punitive action and issue significant penalties in order to set an early precedent. If your business has registered for VAT in the UAE or in the KSA and have not yet considered the implications of the isues outlined below, I would suggest seeking advice sooner rather than later: • Corporate policy on the conflict between digital and physical audit. Although the VAT returns are filed electronically, there are requirements in the framework that need to be considered. (Data protection around online filing, keeping original invoices, supporting documentation etc.); • The VAT refund procedure. There has been no guidance on what the process will be to claim back VAT when businesses are in refund positions. The credits can certainly be carried and offset in future periods, but if you expect your inputs to consistently exceed your outputs, you will need to understand the refund mechanisms available to you to avoid cash flow issues; • Trade within and between free zones. Much like bonded warehouses in the EU, the concept of tax-free zones within a VAT regime can cause serious complexities. If you are trading within one of the predetermined free zones or intend to transact with partners based in these designated areas, it is crucial that you understand the VAT and compliance legislation.

The introduction of VAT in the GCC marks the beginning of a new era. I believe ultimately it will be good for both businesses and citizens, but so much depends on the work done in these initial phases. If the newly formed tax offices can work together, communicate efficiently and be practical and adaptive, I am confident the VAT regime can yield success. Similarly, if businesses are cognisant of the potential pitfalls and seek the right advice over the coming months, the implementation will not only be seamless, but will ultimately also boost the economy in the region. CONTACT VatGlobal Tel: +971 0440 19120 Email: info@vatglobal.com www.vatglobal.com

ABOUT THE AUTHOR Mr Gareth Sean Kobrin is Chief Executive Officer, VATGlobal and Director, VATit Consultant Gulf Ltd. Gareth has more than 10 years of VAT industry experience. As CEO for VATGlobal, he is leading the most dynamic team of global VAT and GST Experts; he has spearheaded the company from a loss running enterprise when bought in 2013 and turned it into profitable venture by 2017. He increased the team strength from three individuals initially to a strong team of 40 comprising VAT subject matter experts. Under his stewardship, VATGlobal has expanded its footprint in New York, Poland, Italy, Hungary and the United Arab Emirates. Senior level client relationship management, business growth scalability and innovative technological advancement within VAT industry are his areas of expertise.

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UAE, Home for International Investment and Exceptional Talent BY MARTIN AMISON AND JOHANNES EISSER PARTNERS, TROWERS & HAMLINS LLP

His Highness Sheikh Mohamed bin Rashid Al Maktoum, Ruler of Dubai and Prime Minister of the UAE, on 20 May 2018 announced two significant changes agreed by the UAE Cabinet relevant to the UAE’s economic development. The UAE will change its investment laws to allow 100% foreign ownership of companies and its immigration laws to allow longer term visas; notably 10year visas for investors, scientists, doctors, engineers, entrepreneurs and innovators and 5 or exceptionally 10-year visas for students. These measures are designed to support the UAE’s growing economy, providing the best environment for international investment and exceptional talent. FOREIGN SHARE OWNERSHIP The UAE has previously only allowed 100% foreign ownership of companies in its many Free Zones. For onshore companies (i.e. companies not incorporated in one of the Free Zones) Article 10 of the Commercial Companies Law currently contains the general rule that requires that UAE nationals hold at least 51% of the share capital of a company. For other GCC nationals it has been possible to hold 100% ownership of a company provided that no non-GCC nationals participate, but if they do, the rule reverts to 51% ownership by a UAE national. The mandatory 51% UAE

shareholding requirement has long been viewed as a disincentive to international investment in the UAE. Common arrangements and packages of interrelated forms of side agreements have grown up to allow effective control and beneficial ownership whilst more or less complying with the letter of the law. However, for many the cost, complexity and the contingency that such ownership arrangements may be challenged has certainly been a significant disincentive. A whole market sector has grown up around the provision of local sponsorship under which a fee is paid effectively for nominee services, with all dividends ceded to the foreign investor. Clearing the way to move to direct and open share ownership will be welcome. It is worth mentioning that this has been proposed before. In 2009 there was a flurry of excitement when an announcement from the Ministry of Economy indicated that 100% foreign ownership would be permitted in certain sectors (notably industrial) under a new law which was thought to be imminent. The new Commercial Companies Law which eventually came into force in 2015 did not in fact contain the expected provisions to allow any increase in foreign ownership.

On this occasion the Cabinet has made a clear statement and the UAE’s Ministry of Economy has been tasked with implementation. It is due to report to the Cabinet in the third quarter of 2018 with the Cabinet decision due to be implemented also in the third quarter. No mention has been made of any restricted, or excluded, sectors. FREE ZONES The UAE has many Free Zones and whether these will remain relevant and attractive once 100% foreign ownership is allowed in the market as a whole will depend upon what extra incentives the Free Zones offer. Each Free Zone is slightly different in its requirements and regulations. The Free Zones guarantee freedom from corporate income tax but whilst laws for these are on the books, they have been suspended and no such tax is charged in the UAE, except in the oil and banking sectors (in the latter on banks with foreign ownership). It should be recognised that the establishment of new companies in the UAE is subject to an approval process which requires a licence to conduct its activities. Licensing authorities in the relevant Emirate of establishment will need to be satisfied both as to fixed logistical matters (such as registration in the commercial register,

ARAB-BRITISH CHAMBER OF COMMERCE 027

The UAE will change its investment laws to allow 100% foreign ownership of companies and its immigration laws to allow longer term visas

leases of premises, appointment of resident managers etc.) as well as having discretion to approve the proposed activities of the company (and companies may only undertake activities specifically approved by their individual licence). There is a formal process for submission of constitutive documents with specified verification. As elsewhere in the Gulf region, there is no â&#x20AC;&#x153;off-the-shelfâ&#x20AC;? general purpose company formation. RESIDENCE VISAS A change in residency rules to encourage investment and social stability has been discussed at the Abu Dhabi Executive Council and at the Cabinet with an announcement on 20 May 2018. The intention is to provide an environment of stability that will grow a pool of highly skilled professionals, specialists, entrepreneurs and investors who will add value to the economy of the UAE. New regulations are expected within weeks. Longer term visas for students, workers and retirees are anticipated. We are told to expect a new 10-year visa for investors, scientists, doctors, engineers, entrepreneurs and innovators. For students, there will be 5-year visas and in exceptional cases 10 years may be granted. For retirees 10 years may also be permitted. Regulations and practice have yet to be determined.

EFFECTS Of course, with only the bare bones of an announcement, many things are as yet unclear. Unknowns include whether the company shareholding changes will apply to all sectors; whether government fees will be higher for companies without a UAE shareholding and of course people will speculate on whether there will be any connection to the perennial question of the ending of the suspension on corporate income tax. In terms of visas, the regulations are naturally still to be drafted and it remains to be seen what the criteria will be for these new longer-term visas; how they will be issued in practice, on what conditions and what fees will apply. An immediate potential effect may be the lifting of the real estate markets across the UAE. These markets are currently in somewhat of a malaise, with excess supply (fuelled both by construction growth and the contraction of many businesses in the wake of the oil price collapse in 2015 and its effects on regional markets) causing rents and prices to drop. A rebounding oil price (Brent approaching $80 a barrel), and these investor and immigrant friendly measures, may reverse this unwelcome trend. The UAE has already made itself an investment hub within the region. These measures seem likely to reinforce that status and attract serious

investors, global players and talented individuals to boost the economy further. There are many company formation specialists who have set up to provide a service that includes acquisition of a commercial licence and company formation with local sponsorship i.e. meeting the 51% UAE national requirement. That market sector will likely face a significant upheaval when this decision is implemented, though the formation and licensing services will remain relevant, as will the inevitable questions of whether to establish in a Free Zone, or onshore and if a Free Zone, then which one. These measures are very welcome, and we look forward to the detail and the implementation. CONTACTS Martin Amison heads the UAE business of Trowers & Hamlins LLP, currently based in Dubai and has spent his career with the firm since 1981, working variously in Oman, Bahrain, the UAE and London. Email: mamison@trowers.com Johannes Eisser, a corporate partner in Trowers & Hamlins LLPâ&#x20AC;&#x2122;s Abu Dhabi office, has been with the firm in Abu Dhabi since 2005 advising on a broad range of corporate, commercial and employment matters. Email: jeisser@trowers.com

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Prime Minister Theresa May and HRH Mohammed bin Salman, Crown Prince of the Kingdom of Saudi Arabia, outside Number 10 Downing Street.

The Strategic Partnership between UK and the Kingdom of Saudi Arabia Following the visit to the UK by His Royal Highness Mohammed bin Salman, Crown Prince of the Kingdom of Saudi Arabia, in March 2018, the UK confirmed its strong support for the Saudi Vision 2030. The UK and Saudi Arabia agreed a goal of £65 billion in mutual trade and investment in coming years during a meeting between Prime Minister Theresa May and the Crown Prince. His Royal Highness Mohammed bin Salman, the Crown Prince of the Kingdom of Saudi Arabia, paid an official visit to the United Kingdom from 6th to 9th March 2018 at the invitation of the Government of HM Queen Elizabeth ll. The visit was the occasion for the UK to confirm its strong support for the Saudi Vision 2030. In a Joint Communiqué marking the visit, Saudi Arabia and the United Kingdom confirmed

and reinforced the relations between the two countries and committed themselves to developing a deeper and more strategic partnership to enhance mutual interests. Her Majesty Queen Elizabeth II welcomed His Royal Highness the Crown Prince at the start of his visit and invited him to lunch at Buckingham Palace. His Royal Highness extended to Her Majesty the regards of the Custodian of the two Holy Mosques, King Salman bin Abdulaziz Al Saud, the King of the Kingdom of Saudi Arabia.

diversity and social reform. Saudi Arabia will be transformed into a pioneering investment power and a strategic partner for the Middle East, serving as a focal point for dialogue with the rest of the world.

STRATEGIC PARTNERSHIP AND SUPPORT FOR VISION 2030

The skills and potential of the Kingdom’s human capital will also be improved, releasing the capabilities and possibilities of all citizens of Saudi Arabia. The UK is committed to delivering expertise to support Saudi Arabia in these vital reforms. Saudi Arabia confirmed that the UK is a strategic partner in Vision 2030, acknowledging the advanced expertise and capabilities of the public, private, and non-profit sectors of the UK, in key sectors including:

The UK confirmed its strong support for Vision 2030 and the Kingdom of Saudi Arabia’s programme for achieving economic

Education, healthcare, culture, entertainment, financial services, technology, life sciences, innovation, energy, security, and defence.

ARAB-BRITISH CHAMBER OF COMMERCE 029 UK-SAUDI STRATEGIC PARTNERSHIP COUNCIL The Crown Prince and the Prime Minister launched on 7th March 2018 the annual UK-Saudi Strategic Partnership Council as a key mechanism for discussing and developing all aspects of the bilateral relationship, including UK support for Saudi Arabia’s Vision 2030; on security, defence and international humanitarian assistance; and on regional and international issues. Both countries committed to a detailed plan to deliver this agenda with further meetings in 2018. The UK and Saudi Arabia committed to a long-term partnership to support delivery of Vision 2030 covering a range of fields including evaluating mutual investment opportunities in and through the UK by the Public Investment Fund, bilateral trade, and public procurement with UK companies in Vision 2030 priority areas, including on: education, training and skills; financial and investment services; culture and entertainment; healthcare services and life sciences; technology and renewable energy; and the defence industry. Taken together these opportunities are expected to amount up to $100 billion over a 10-year period, from which PIF will aim to target direct investments amounting to $30 billion.

confidence in the leading role and deeprooted experience that distinguishes the United Kingdom in the creative, cultural, and entertainment industries. A Memorandum of Understanding was signed between the two sides for Digital, Culture, Media, and Sport. The two sides signed an agreement on cultural cooperation, which will work to preserve tradition and expand cooperation in developing and protecting cultural content. The UK undertook to support Saudi Arabia’s investment in new cultural and entertainment projects across the country. The UK welcomed Saudi Arabia’s goal, under Vision 2030, of promoting and reinvigorating social development to build a vibrant society, including strengthening families and providing proper education for all children. The UK welcomed and agreed to support Saudi Arabia’s goal of increasing the number of women and young people participating in the workforce – including in science, technology, engineering, maths, and digital sectors. The UK reaffirmed its support for the recent reforms and announcements empowering women. TRADE, INVESTMENT AND THE PRIVATE SECTOR

The KSA paid tribute to the expertise and experience of the UK in different education sectors, from kindergarten to primary and secondary education, all the way through to higher education, as well as technical vocation training. An agreement was concluded on shared cooperation in the different fields of education, including bringing the benefit of British skills and expertise in supporting early years development.

The UK recognised the substantial potential for Saudi Arabia as a global investment powerhouse and committed to work with Saudi Arabia to meet Saudi objectives on industrialisation and human capital development. The Public Investment Fund recognised the UK as a highly attractive investment location and a gateway to the world, with London as a global city unrivalled in its international reach. The Public Investment Fund agreed to work closely with the British side to identify mutually beneficial inward investment opportunities in the UK and beyond, consistent with Saudi Vision 2030 and the UK’s own investment priorities.

A Memorandum of Understanding that will enable a partnership in developing educational curricula and capacity building was also signed between the two countries and the UK appointed Sir Anthony Seldon as its Education Special Representative to support Vision 2030.

The United Kingdom and Saudi Arabia further agreed to establish co-chaired Private Sector Groups to support the expansion of the key sectors identified in Vision 2030, including on privatisation and corporatisation, asset management, real estate, life sciences and technology.

The KSA acknowledged the extent of British expertise in healthcare and the two countries agreed to reinforce cooperation in this field through a Memorandum of Understanding. This will reinforce cooperation in the fields of training, primary healthcare, health investment, digital healthcare, and others that the two nations agreed. The UK appointed Sir Mike Richards as its Special Representative on Healthcare to support Vision 2030.

FINANCIAL SERVICES

EDUCATION, HEALTH, CULTURE AND ENTERTAINMENT

The UK has shown its interest in becoming involved with the large opportunities which have resulted recently from positive changes in the fields of culture and entertainment. The KSA confirmed its

The UK and Saudi Arabia recognised the importance of a successful listing of Saudi Aramco as part of the Kingdom’s economic reform agenda. The UK underlined its support for the development of Saudi Arabia’s financial services industry and Saudi Arabia praised the UK’s support for plans to increase the size, depth and development of the Kingdom’s capital markets, affording the Saudi stock exchange, Tadawul, the international status it deserved. Saudi Arabia endorsed the status of London as the premier global financial centre, providing unparalleled access to the global investors and expertise

The UK welcomed Saudi Arabia’s goal, under Vision 2030, of promoting and reinvigorating social development to build a vibrant society, including strengthening families and providing proper education for all children.

030 ECONOMIC FOCUS

The two countries reaffirmed their commitment to enhanced co-operation between the UK and Gulf Cooperation Council; and the implementation of the joint communique agreed between the UK and GCC States in December 2016. in financial and related professional services. The London Stock Exchange Group agreed with Tadawul on a programme of capacitybuilding and training measures to assist in developing the exchange. ENERGY AND INDUSTRY The UK and Saudi Arabia launched the first Ministerial United Kingdom-Saudi Arabia Energy and Industry Dialogue. A Memorandum of Understanding on clean energy was signed, with Saudi Arabia recognising the UK’s experience and expertise in clean growth. The UK expressed strong interest in Saudi Arabia’s giga-project NEOM, and Saudi Arabia and the UK agreed to work together to identify ways to use British expertise and innovation, including from the private sector, to develop NEOM and build incountry skills, capacity and expertise in Saudi Arabia. The UK and Saudi Arabia agreed to share British expertise on growth hubs and business accelerators, with Saudi Arabia recognising the investment potential and opportunities from entrepreneurs and innovators in both countries, as well as the opportunities offered by investment in Saudi Arabia.

The UK and Saudi Arabia welcomed the significant number of major new commercial deals that were agreed during the visit expected to total over $2 billion, creating and securing jobs and prosperity both in Saudi Arabia and the United Kingdom. SECURITY AND DEFENCE The UK and Saudi Arabia reiterated the importance of the defence and security relationship for mutual security and regional stability. They celebrated a defence partnership of over half a century of cooperation on issues such as countering terrorism, developing joint capabilities and strengthening regional security. Both countries stressed the importance of continuous strong collaboration in defending their national security and fighting terrorism and its funding as well as on areas of defence. They affirmed that this co-operation was decisive in saving lives in the two countries, as well as in other areas of the world, and they pledged to deepen their co-operation and broaden their partnership in facing new challenges. This would include strategic co-operation in areas of cyber security, where a framework agreement on strategic co-operation in cyber security between the two countries was signed.

INTERNATIONAL ISSUES The two countries agreed to continue to co-operate closely on international security, national development, and humanitarian issues. The United Kingdom and the Kingdom of Saudi Arabia signed cooperation agreements to enable the strengthening of responses to regional and global humanitarian and development challenges. As part of this partnership, the two sides pledged £100 million of joint funding to support livelihoods and economic prosperity in the Horn of Africa and East Africa. The two countries reaffirmed their commitment to enhanced co-operation between the UK and Gulf Cooperation Council; and the implementation of the joint communique agreed between the UK and GCC States in December 2016. Edited extract from the United KingdomSaudi Arabia Joint Communiqué, FCO, released on 10th March 2018. The full communiqué can be found here: www.gov.uk/government/news/unitedkingdom-saudi-arabia-joint-communique

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032 ECONOMIC FOCUS

New UKEF Office in Dubai

the department. However, if the way to support these companies is to find projects that they can supply to, then it makes the proposition even more compelling. I think it’s important to note that while the team on the ground is new, UKEF has been an important partner for our key stakeholders in the region for a long time. Having a physical permanent presence in the same location and time zone can only enhance our offering to these parties in the region. We are really very excited about the opportunities here and are working closely with the rest of the DIT team to engage with them on various projects. Hannah and I are new to government but there is a wealth of experience within the DIT teams in the region so I think we are able to complement each other very well. Does the office cover projects in the entire GCC? David: Absolutely, but at present our main focus is the UAE – not just the prime markets of Dubai and Abu Dhabi, but the Northern Emirates of Sharjah, Ras Al Khaimah, Fujairah and others as well. Our ambition for the UAE is to optimise the full worth of UKEF in this market, where we have £5 billion capacity with an additional £4 billion for Dubai. The issue is that many overseas buyers don’t understand what UKEF is. We want to change that.

Economic Focus spoke to UK Export Finance’s Richard Simon-Lewis, Head of Origination, Client Coverage, Marketing and Communications and David Moleshead, Senior Counsellor, about the opening of the new UK Export Finance office in Dubai and what this means for companies with interests in the Middle East. Dubai is now the host to a new UK Export Finance (UKEF) team. Can you explain the background to the decision to open this office? Richard Simon-Lewis: When the government published the UKEF Business Plan for 2017-20 last year, it set a whole new level of ambition for the support the UKEF can provide for UK trade. We want to be taking a more proactive role in bringing business to the UK, and providing endto-end support for exporters as they build their overseas business. To achieve this, we identified 20 priority markets, and we also committed to building a new international network for UKEF, putting frontline finance experts on the ground to grow our presence. Several of these markets are in the GCC region, and the Gulf has always been a key market for us – in the 2016/17 financial year we provided some £2 billion in support for exports to the region – so Dubai was a natural choice as location for one of our first international teams.

Can you introduce the office to our readers? David Moleshead: Hannah Greenwood and I make up the UKEF team based in the British Embassy in Dubai. Hannah is an ex-private banker with experience in this region, and has most recently been working in the City. I’ve been based here in the Middle East for the past 18 years in various roles. I came to the region as Managing Director for Investment Banking at HSBC where I was involved in leading the financing for a number of projects and the development of the debt capital markets. Following my retirement I founded a business angels company so I have continued to remain associated with the financial sector in the region. The past few years have seen many changes in the industry, so when the opportunity to join UKEF came up I couldn’t say no. UKEF has fantastic products which benefit both UK companies as well as government and project owners. To date the focus has been to support the UK companies, and that remains the mission of

There is a growing appreciation in the commercial marketplace that UKEF support is a huge advantage for borrowers, banks and contractors if it can be applied, but many people still don’t quite know what it is. Some shy away because they think it’s complex and can take a long time to put in place but in fact, once clients have actually used export finance, they become very strong advocates and recurring partners. Outside the UAE we have been involved in other financings involving such names as Saudi Aramco and we will be exploring other projects in the GCC over the coming months. Can you describe examples of recent projects in the region that UKEF has supported? Richard: If you look at the Dubai skyline you can see some of them for yourself! We’ve supported some of the city’s most iconic projects – the recent expansion at the Dubai World Trade Centre, Bluewater Island, the Dubai Arena, and in next-door Sharjah we backed the construction of Bee’ah’s incredible new “green” headquarters building, which is designed to be powered by 100% renewable energy by 2021. In the wider GCC region, we’ve played a significant role in the petrochemicals industry, having supported the Liwa Plastics Industries Complex in Oman and the Sadara petrochemicals plant – a Saudi Aramco and Dow Chemical joint venture – in Saudi Arabia. As for other countries in the region, for example Iraq, we have provided support for key utilities projects to improve the lives of Iraq’s citizens, in particular through provision of water and power. What sectors are the office’s priorities? David: Traditional UKEF sectors include

ARAB-BRITISH CHAMBER OF COMMERCE 033 infrastructure, aerospace and energy, so we will continue this strand of work. However, we are increasingly seeing a demand for a diversity of British goods and services, particularly reflected in the Gulf region’s diversification agenda – education, healthcare, life sciences, renewable energy, transportation and technology. All of these sectors are growing and there is an appetite for the UK’s expertise in these areas. In fact, there isn’t a commercial venture in this part of the world where the UK can’t play a part. And we want to support the region in delivering their projects, meeting the ambitious targets that they have. We believe these ambitions will become more achievable if they use cutting-edge companies and services like those that we have in the UK. To be able to offer attractive financing related to these activities provided by UK Export Finance is our main priority. How are these priorities projected to change in the future? David: Our aim is to develop a partnership with all key stakeholders so that we are alert to all new opportunities whether that be emerging market sectors or new methods of arranging our financial support, for example through capital markets or Islamic finance. At the same time, we are conscious of the important role that SMEs play in this region and also in the UK, so we want to develop more opportunities for them to be involved. What are the kinds of projects that UKEF is prepared to support? Richard: We pride ourselves on UKEF’s innovative and flexible approach to finding the right financial structure – we know it’s vital to the success of a project. We can offer UK businesses and their overseas buyers a range of tailored solutions for a project; project financing, Islamic finance, a loan from the UK Government or a guarantee on a bank loan in any of a number of Middle Eastern currencies, from the UAE dirham to the Qatar riyal. We also have billions of pounds worth of capacity to support projects across the Middle East. So essentially, the offer is that we can work with you to find the right support for any project in any sector – provided it meets our risk, environmental and compliance due diligence. What is on offer in terms of Islamic finance? Richard: UKEF is one of the more proactive export credit agencies in the Islamic finance space, and we have a track record. In 2015, we supported our first sukuk structure, an Islamic bond issued by Emirates airlines, which was the largest ever ECAbacked capital markets offering in the aviation sector at $913 billion. It’s all part of our commitment to providing a really tailored structure based on what customers want. Islamic finance could be used for a very large range of transactions, of different sizes and sectors. And if you look at sectors where Islamic finance has traditionally been very relevant, like utilities and energy, it’s a very close match with our areas of strength.

What are you doing to draw the attention of UK business to emerging opportunities across the Gulf markets? Richard: I’m really pleased that you asked – this is something that we’re really keen to be doing more proactively as there’s a huge opportunity here. We’re seeing that, more and more, finance will guide procurement decisions; project sponsors will procure based on where the finance is coming from. But it can also be difficult for project procurement teams to build a supply chain in a different country. At the same time, it’s difficult for UK companies to know where those opportunities are and, especially if they’re newer to exporting, to have the confidence to bid for projects in a new market. That’s why we are offering to matchmake international projects looking for finance from UKEF with the UK supply chain. We can do this by co-hosting an exporter fair, working with industry associations to map the UK supply chain and recruit the right suppliers, and introducing them to the project’s procurement team. This promotes international projects to UK companies, expedites procurement from the UK to help the sponsors meet the eligibility requirements for UKEF support, and spreads the benefits of that support among UK exporters. To date, we have used this approach on projects in Iraq, Oman and Bahrain, and it’s bringing opportunities worth hundreds of millions to the UK.

Richard Simon-Lewis Richard Simon-Lewis is Head of Origination, Client Coverage, Marketing and Communications at UK Export Finance. He is responsible for seeking and securing global opportunities for UK exporters, helping to connect UK capability with international demand, raising awareness of UKEF’s support among exporters and overseas buyers, and generating new business both at home and abroad. Richard joined UKEF after gaining 20 years’ experience in leading specialist teams in project and structured finance, including five years at ‘Global Top 5’ Project and Export Finance institutions. He has a particular specialism in the renewable energy sector, having acted as financing lead or adviser to low carbon projects since the mid-1990s. Other previous positions include Head of Energy & Utilities project finance at Lloyds TSB and Senior Director of the Renewable Energy division at Lloyds Banking Group.

Which companies qualify for support and what criteria do they need to meet? How can UK exporters access the funding services that are available? Richard: We can help UK companies of any size, and in any sector, exporting goods, services and intangibles like intellectual property. I think there’s a perception that we’re mainly there for bigger companies – but in reality, nearly 80% of the companies we support are SMEs, and last year the smallest contract we supported was under £10,000. And as of last year, we can also provide trade finance support to companies that aren’t yet exporting themselves, but are supplying to an exporter, which means that if you are a smaller company selling to a contractor on a larger overseas project you can qualify for UKEF support to help you be part of international supply chains. UKEF provides support where the commercial finance sector is not able to do so, and it operates at no net cost to the UK taxpayer, so we charge a premium and only provide support where it meets our risk criteria. If you’re a UK company and interested in finding out more about UKEF’s support, you can contact our customer service team on customer.service@ukexportfinance.gov.uk. Alternatively, get in touch with David and the team in Dubai.

David Moleshead In his role as Senior Counsellor at UKEF, David is responsible for leading the UK Export Finance activities in the Middle East region, Afghanistan and Pakistan with regard to the origination of new opportunities where the provision of support will assist UK exporters to win business at no net cost to the UK taxpayer. A former investment banker, David has led teams which have advised on and arranged financing totalling billions of dollars in export and project finance, capital markets and syndicated lending in Europe, Asia and the Middle East where he has been based for the past 18 years. David’s previous roles include Chairman of the Export Finance Committee for the Foreign Banks Association in London, and Managing Director, Investment Banking, HSBC Middle East. He is also familiar with the SME segment having founded the longest standing business angels network in the Middle East. David can be contacted on: David.Moleshead@fco.gov.uk

034 ECONOMIC FOCUS

Main Features of the Palestine Economy We take a look at the country’s strengths sector by sector.

TEXTILES AND GARMENTS SECTOR The textiles and clothing industry in Palestine is the second largest industrial employer in the country. It is an industry composed of hundreds of small enterprises operating out of individual homes. 70% of the registered companies are considered to be sole proprietorships, while the remaining 30% are registered as partnerships. The highest concentration of garment and textile factories in the West Bank is in Nablus where 362 factories are located. Some 760 factories are in Gaza, with the balance of 578 factories distributed throughout the West Bank’s towns and cities. The dominant segment of the industry (50%) is made up of micro-establishments constituting between one to four employees. Only 1% of sector companies employ over 50 workers. The remaining 49% of garment and textile factories in the West Bank and Gaza employ between 5 and 49 employees. DISTRIBUTION & MARKET SHARE An increasing number of Palestinian companies export directly to the US, Europe and the surrounding Arab markets.

CONSTRUCTION AND REAL ESTATE SECTOR Construction is one of the most important economic sectors in Palestine, due to its role of income generating, employment, providing housing and economic activities. There are 140 thousand houses that need to be reconstructed in the Gaza Strip alone. The government is working towards the implementation of infrastructure projects through privatisation and in partnership with the private sector which is leading to a rising demand for building materials and cement. Although there is growth in the construction sector, there is still a gap between supply and the demand for products. The sector is characterised as follows: by its ability to produce high quality cement; annual demand of approximately 2.5 million tonnes; the availability of colourful stones and raw materials; the availability of labour at competitive prices; and competition within real estate investment with the possibility of significant income and short recovery period.

TOURISM SECTOR Tourism in Palestine is continuously growing, in the context of all the significant elements that guarantee economic success and prosperity. The sector successfully attracts foreign and domestic investments and can appeal to investors by its cultural and religious diversity, as well as its environmental and natural wealth. Palestine’s natural geography is composed of a coastal and mountainous landscape. The oldest city on earth, Jericho, lies within Palestine, as well as the Dead Sea, with its wealth of minerals and the potential for investors in the tourism sector, but it is still under developed in terms of health spas and recreational facilities. Palestine, home to the world’s three major religions, is rich in Islamic and Christian holy monuments that attract a huge number of tourists each year. Recreation and tourist facilities can be found across Palestine. Conference facilities are readily available for use by business people. Tourism is important not only due to its financial importance as a sector that can employ large numbers of people and improve their income, but because

ARAB-BRITISH CHAMBER OF COMMERCE 035 are key reasons why leading names such as IDS, Oracle, 3Com and Timex have chosen to establish offices, R&D operations, or links in Palestine. TYPES OF IT COMPANIES: •

Application Software Companies;

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Professional IT Consulting Service Providers

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Professional Network Service Suppliers

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Software and Solution Development Companies

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Internet Service Providers

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Professional and Technical Training Providers

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Suppliers of Computing & Telecommunications equipment.

PALESTINIAN INFORMATION TECHNOLOGY ASSOCIATION (PITA) The Palestinian Information Technology Association (PITA) was founded in Ramallah in early 1999 as a not-for-profit, membership-based organisation for locally registered companies working in the IT sector. It represents more than 150 companies from various sub-sectors. CHARACTERISTICS OF THE ICT SECTOR

it can serve as a conduit through which Palestinians can project their rich culture and distinctive identity to the world. TOURISM SECTOR INDICATORS •

The estimated contribution of the tourism sector to Palestine’s GDP is 6%;

•

The estimated contribution of the sector is about $348,917 million;

•

Tourism sector establishments are 6,258, and the total sector employs 33,319;

•

Annual sector production in Palestine $586,570 million;

•

According to PCBS statistics, 432 thousand tourists visited Palestine in 2015.

ICT SECTOR ICT is the fastest growing sector in Palestine. The existence of an educated labour force and its proximity to high technology centres are two key factors that have greatly contributed to the sector’s fast growth. Palestinian universities are capitalising on the worldwide shortage of IT specialists by providing a strong emphasis on IT training. Sun Microsystems, for example, has donated laboratories to three Palestinian universities to enable them to train students in IT skills.

HOTEL INDICATORS

Various Palestinian universities have established IT units with the objective of providing a specialised curriculum that emphasises areas that will be critical to the emerging Palestinian state. These units seek to educate students already well versed in the special demands of ministries, municipalities, telecommunications companies, as well as in banking and finance.

Palestine is currently implementing a hotel classification system in line with international standards.

A commitment to international quality standards, such as CMM and ISO, and supportive international trade agreements,

The privatisation of the sector can be seen as one of the country’s success stories because it has proven the ability of the Palestinian private sector to succeed, grow and develop. A careful look at the activities and achievements of the telecommunications and information technology sectors reveals the following characteristics and indicators illustrating how Palestine possesses all the basic elements required for the development of a flourishing IT sector: •

100% digital telecommunication infrastructure entirely developed by the local private sector;

•

Palestine hosts more than 250 specialised ICT companies;

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The IT sector contributes around 5-7% of the total Palestinian GDP;

•

$600 million is the net contribution of the ICT sector to the Palestinian market;

•

The market has over three million mobile phone subscribers, over 400 thousand fixed-line subscribers, in addition to 100 radio stations and local television stations, and 17 companies operating in the field of telecommunications and the Internet.

036 ECONOMIC FOCUS CLIMATE, GEOGRAPHY AND AGRICULTURE Geographical and climate diversity in Palestine facilitates the cultivation of a wide range of agricultural produce. Although the agricultural area is relatively small, the diversity of its climate is high, making it suitable for the production of vegetables all-year round. In addition, the high level of mechanisation particularly in green houses, land preparation irrigation and in pesticide spraying, improves production efficiency.

AGRICULTURAL SECTOR LIVESTOCK, FORESTRY AND FISHING The country’s agricultural land covers approximately 1.834 million acres cultivated with all kinds of vegetables and field crops, in addition to groves of fruit trees. The number of livestock varies from one year to another and from one season to another. The country’s unique location with the presence of many human civilisations on its soil led to its rich biodiversity, where most types of natural vegetation and wildlife can be found.

The warm winter months in the Ghor area enable the cultivation of winter vegetables, while the moderate summer climate in the mountains and coastal areas enables the production of vegetables. The use of greenhouses enables allyear round vegetable production.

The coastal plain zone (Gaza Strip) extends from the North to South on the South-eastern shores of the Mediterranean Sea and is dubbed the “Fish Basket” of Palestine;

•

The semi-coastal zone (the NorthWestern corner of the West Bank), which includes the governorates of Jenin, Tulkarm and Qalqiliah, receives the most annual rainfall;

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The middle elevation zone extends from Jenin in the North to Hebron in the South;

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The steppe zone extends from Eastern Jenin to the Dead Sea in the south and is considered a range or rangeland;

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The Ghor (Western Jordan Valley) zone.

The food and beverages sector has been one of the fastest growing areas of the Palestinian economy. The Investment Encouragement Law eased restrictions on new businesses in 1998 enabling the sector to become a major investment attraction. The Palestinian Territories offer a businessfriendly environment in which to start, or expand, a business in the food and beverages industry for several reasons: •

Strategic location in the region;

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An Investment Encouragement Law

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providing generous incentives to facilitate the growth and expansion of businesses;

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Availability of an experienced workforce;

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The implementation of international treaties and free trade agreements with major industrial countries.

SALES AND MARKET SHARE This sector is evolving rapidly and is working to export many products such as medicinal plants, which witnessed a growth spurt, and are a significant addition to citrus, olives, tomatoes, spices and fruits as well as roses and strawberries that are important export products and which are destined particularly for the European market.

According to the classification of the Ministry of Agriculture, Palestine comprises five agroecological zones: •

FOOD AND BEVERAGES INDUSTRY

Most of the manufacturing plants are semi or fully automated and a large percentage of the existing food and beverage manufacturing plants are ISO-certified. MARKET SHARE

DOMESTIC AND INTERNATIONAL MARKETS Agricultural trade patterns for Palestine represent a unique case in the local economy. While imports are still higher than exports, the latter remain a significant contributor to the total Palestinian market. Some producers are shifting production lines to higher value-added products such as flowers, strawberries and cherry tomatoes, to become more competitive in the global market place. Strawberries are available as early as November. The highest prices in the European market for strawberries occur during the months of November to January. The production of cut flowers is a relatively new industry, introduced in 1990, but it has grown significantly since then. It is primarily found in the Gaza Strip. By 1996, annual production exceeded 70 million stems, all of which were exported to the European market. The cultivation of flowers contributes about $25 million annually to national income, while the jobs created in this sub sector are around 4,500. The number of agricultural holdings in the Palestinian territories is 105,238 possessions in a total cultivated area of 1,034.9 thousand dunums.

The market share of Palestinian-made food products has increased dramatically during the past few years. In 2012, the food and beverage market share was 62.7%. The increase has been due, in part, to aggressive government policies to encourage local investment and a marketing campaign to promote Palestinian manufactured food and beverages. PROFITABILITY The food and beverage manufacturing industry is dependent, as are other manufacturing industries, on the strength of the local market. 87.7% of all sales are directed to the West Bank, with the remainder going to Gaza. 89% of exported products are sold in the Israeli market; while the rest are sold in the Middle East and Europe.

ARAB-BRITISH CHAMBER OF COMMERCE 037 STONE AND MARBLE Stone and marble represent 4.8% of the Palestinian GDP with average annual sales of the sector at approximately $600 million. Technology in use is mostly semiautomatic for 85% of the sector, with some automatic equipment for the remaining 15%. 95% of the raw materials come from local sources. The Middle East region is a strong market with increasing potential supported by existing distribution systems. Some leading companies have successfully penetrated the US and European markets. Overall, Palestinian stone has high export potential and resembles the marble currently exchanged in world markets with its variety of colours and quality. INDICATORS AND IMPORTANT FEATURES: •

1,124 facilities, directly employs 25,000 workers;

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Productivity is around $600 million annually;

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Added value of the stone and marble industry is 54% of the production value, or $33 million annually;

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Palestine is characterised by the presence of high-quality natural stocks that are high in quality and come in multiple types;

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Palestine ranked 12th globally in the stone industry.

UNION OF STONE AND MARBLE Established in 1996, the Union of Stone and Marble (USM-Palestine) is an independent, non-governmental and non-profit membershipbased organisation dedicated to promoting the goals and protecting the needs of Palestinian stone and marble producers. The USM has been the leading representative of the industry since it was founded and currently has three regional offices in Hebron, Nablus and Jenin, while its headquarters are in Bethlehem.

DRUGS AND PHARMACEUTICALS SECTOR The pharmaceuticals industry is unique and distinctive. As an industry it began actual production in 1969 in small quantities and capabilities. By the midseventies, the number of operators had reached nine, driven by the increasing demand for drugs and the high financial returns on investment. As a result, the number of patented drugs reached 691 in 1983 and increased to 800 in 1995. The number of pharmaceutical companies that manufactured medicines for human consumption was six, in addition to another six that manufactured veterinary medicines. Four of the human pharmaceutical factories were certified for good manufacturing practice, while the rest of the factories, laboratories, and private factories for veterinary medicines are undergoing a rehabilitation process to obtain this certificate. CURRENT MARKET PLACE Palestinian pharmaceutical companies have expanded their production capacity and product lines at a rate of 7-10% per annum over the past 25 years. Product lines are focused on meeting the needs of the domestic market. There are currently six major Palestinian companies with approximately $45 million in capital investment. All are members of the Union of Palestinian Pharmaceuticals Manufacturers (UPPM). 70% of local producers are based in the West Bank. The remaining companies operate in the Gaza Strip, and are distributed as follow: 60% for the Israeli market, 25% for the local market and 0.15% for the Arab market and exported to other countries.

INDUSTRIAL SECTOR The industrial sector, a main pillar of the Palestinian economy, massively contributes to the process of national economic and social development. Even though the sector is facing multiple obstacles, it has never ceased to grow, especially in recent years. This growth results from the development of sub-sectors and the formation of cluster chains; which is evident in the leather and shoes, as well as textiles and clothing. In turn, this enriches Palestinian exports. NUMBER OF INSTITUTIONS: The industrial sector, preceded by the service sector, is the second highest sector in the number of institutions and forms up to 13.5% of the total number of institutions in Palestine. With up to 18,059 institutions by the end of 2015, there has been a 5% growth in the number of institutions between 2014 and 2015. NUMBER OF EMPLOYEES AND TECHNICAL EFFICIENCY: In terms of the number of employees, preceded by foreign trade and services, the industrial sector comes in third place with 22% of total employment numbers in Palestine. With a 5% percentage of growth between 2014 and 2015 and a number reaching up to 91 thousand Palestinian employees by the end of 2015, this sector has clearly helped in minimising the unemployment gap. EXPORT CAPACITY AND COMPETITIVENESS: The industrial sector is the leading sector in terms of export capacity. According to a PBS report on exports in Palestine, the industrial sector dominated the top 7 highest value commodities, namely: stone, marble, plastic bags, cigarettes, shoes, sponge mattresses and furniture. With up to $958 million, the export value for these commodities reached 35% of the total commodities’ export values in Palestine in 2015.

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THE PALESTINE SECURITIES SECTOR The Palestine Securities Sector launched its first trading session at Palestine Exchange (PEX) on 18 February 1997. The securities sector is supervised by the Palestine Capital Market Authority (PCMA) which was established in 2005 under Securities Law No 12 and Capital Market Authority Law No 13 of 2004, to regulate, oversee, and develop the securities sector along with other nonbanking financial sectors. The sector includes shares of companies listed on the PEX, the majority of which are profitable. They are classified into five economic sectors: banking and financial services, insurance, investment, industry and services. Shares trade in Jordanian dinars and in US dollars. Eight licensed brokerage firms offer their services to investors and four banks act as authorised custodians of securities on behalf of foreign investors. The Palestine Exchange focuses on promoting investment in listed companies’ stocks and on attracting a wide range of regional and global investors including from the Palestinian Diaspora. It leverages the latest technology and international best practice to ensure transparency, integrity and investor protection. The sector is a multi-currency trading market, with no capital gains tax, and benefits from a robust banking system operating to international best practice. Furthermore, the listed companies comply with International Financial Reporting Standards (IFRS) and the presence of international accounting companies in Palestine helps improve the quality of financial reporting. The Palestine Capital Market Authority is a member of the International Organisation of Securities Commissions (IOSCO) and the Palestine Exchange is classed as a “Frontier Market” by FTSE Russell and as a stand-alone country within both MSCI and S&P indices. PEX is a full member of the World Federation of Exchanges (WFE), the Federation of Arab Stock Exchanges (AFE), and the Federation of Euro-Asian Stock Exchanges (FEAS), the Forum of Islamic Stock Exchanges (OIC), the Africa & Middle East Depositories Association (AMEDA) and the Association of National Numbering Agency (ANNA). HOW TO INVEST 1. Open an account with one of the licensed local brokers; 2. Set your buy /sell order through the broker either via phone, fax or email; 3. Internet trading is available. Check with your broker.

RENEWABLE ENERGY SECTOR Energy security is one of the major challenges that Palestine faces today and is considered a critical obstacle towards realising sustainable political and economic independence, the sector is almost fully dependent on electricity imports, the majority of which come from neighbouring countries. Electricity prices in Palestine are the highest in the MENA region, forming a large portion of household disposable income. Today Palestine has the highest price incentive in the region, as the country fully relies on imports of its energy needs. The government’s energy sector strategy has a strong emphasis on efficient and green power generation, where the vision is to build an integrated Palestinian National Energy System, which will be capable of securing energy from various sources, and will be sufficient to meet local consumption needs as well as comprehensive and sustainable development, targeting local generating of 50% of electricity needs by 2020, out of which 10% would be from renewable energy sources (approximately 130 MW). The 2015 Renewable Energy and Natural Resources Law promotes the exploitation and development of renewable sources, and seeks to increase the proportion of its contribution to the total energy mix, and regulates power purchase agreements with carriers. Recently the Palestinian Council

of Ministers approved a unique renewable energy incentive package to move Palestine towards Green Energy within the Palestinian Investment Encouragement law. INCENTIVES Utility scale projects, more than 1 Megawatt/h power generation: Stage 1: 0% income tax for seven years starts from operations Stage 2: 5% income tax following stage 1 for five years Stage 3: 10% income tax following stage 2 for three years Feed in projects with less than 1 Megawatt/h power generation: A. Current projects that enjoys incentives receive additional extinction if they generate power as follow •

20 Kilowatt/h power generation receives extension for one year

•

40 Kilowatt/h power generation receives extension for two years

•

60 Kilowatt/h power generation receives extension for three years

B. Projects never received incentives or their incentives period expired and generates 40 Kilowatt/h subject to 5% income tax for two years.

ARAB-BRITISH CHAMBER OF COMMERCE 039

INTERNATIONAL TRADE AGREEMENTS International Trade Agreements to which Palestine is signatory: PARIS ECONOMIC PROTOCOL The Paris Protocol (PP) is an economic trade agreement concluded on 9 April 1994 in Paris between the Palestinian Liberation Organisation (PLO) and the government of the State of Israel stating the basic principles of free trade between the two parties. GREATER ARAB FREE TRADE AREA (GAFTA) GAFTA is a multilateral trade agreement between 18 out of the 22 Arab League states aiming to fully liberate the trade in goods between Arab nations. The trade agreement adopts the method of gradual reduction in taxes and customs (10% per annum) eliminating customs and non-tariff barriers on goods traded among 18 Arab countries, namely: Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, the United Arab Emirates and Yemen. Interim Agreement on Trade and Cooperation with the European Union (IAA) The Interim Association Agreement was signed on 17 February 1997 between the PLO and the European Commission to the benefit of Palestine. This agreement came as an outcome of the Barcelona Process that was launched by Euro-Mediterranean Foreign Ministers in November 1995 to strengthen relations between Europe and other Mediterranean countries. This process formed an innovative alliance based on the principles of joint ownership, dialogue and cooperation. AGADIR AGREEMENT (AA) The Agadir Agreement (AA), a free trade agreement aiming to establish free trade between Arab-Mediterranean counties, was signed in 2004 by Egypt, Jordan, Morocco and Tunisia. The agreement aims to develop economic activities and improve living standards within the member countries, and to create economic integration. Agadir is in harmony with the Greater Arab Free Trade Area (GAFTA), the Barcelona Process (EuroMediterranean Free Trade Area). INTERIM AGREEMENT WITH EFTA STATES This agreement was signed between the EFTA States (Iceland, Liechtenstein, Norway, and Switzerland) and the PLO for the benefit of Palestine on 30 November 1998 and entered into force on 1 July 1999. It gives duty-free treatment for industrial product, fish and marine products. With reduced tariffs on processed agricultural products. Note that the EFTA Rule of Origin is the same as the Rule of Origin applied by the European Union. Interim Agreement on Trade with Turkey

This trade agreement between Turkey and the PLO was signed in July 2004 in Istanbul to establish a free trading area between the two parties eliminating tariff and non-tariff barriers in bilateral trade.

to trade. Imports and exports between the two parties are duty free for the following goods: •

Instruments and items specified for montage and repair;

DECLARATION OF FREE TRADE BETWEEN THE US AND WB AND GAZA STRIP

•

Equipment and instruments specified for undertaking experiments and scientific research;

This declaration was signed in 1996 to potentially open the door for Palestinian exports to enter a larger market. It was intended to provide duty free treatment to all Palestinian products entering the United States and vice versa. Traded products must meet the American Rule of Origin. However, the Israeli impediments on movement of goods and discrimination against Palestinian products in Israeli ports along with the lack of capacity of local producers resulted in a minimal utilisation of this important agreement.

•

Articles for demonstration during fairs and exhibitions;

•

Containers and similar packages utilized in international trade on a return basis.

FRAMEWORK ON ECONOMIC COOPERATION AND TRADE BETWEEN PALESTINE AND CANADA This framework was signed in 1999 between Canada and the PLO to give Palestinian products the potential to enter a larger market. The arrangement states that Canada will support a programme of economic development in the Palestinian areas, and it focuses on reciprocity in liberalisation of markets for products of both sides taking into consideration that Palestine needs to protect its newly established industries. The agreement aims to eliminate and reduce tariffs on industrial products, agricultural products and processed food pursuant to a quota system, as long as the products meet the Canadian Rule of Origin. FREE TRADE AGREEMENT WITH MERCOSUR This Free Trade Agreement was signed in 2011 between Palestine and the Southern Common Market (MERCOSUR), whose members are Argentina, Brazil, Paraguay, Uruguay and Venezuela. To date, the agreement has not entered into force. FREE TRADE AGREEMENT WITH EGYPT The Palestinian-Egyptian Trade Agreement was signed in 1994 granting duty free entrance of Palestinian products to Egypt as long as they meet the Egyptian Rule of Origin (the production cost of industrial products of national origin should consist of a minimum of 40% of local input) and Egyptian products of lists A1, A2 and B of the Paris Protocol are exempted from customs when entering Palatine.

FREE TRADE AGREEMENT WITH JORDAN The agreement between Jordan and the PLO signed in July 1998 provides preferential tariffs for goods traded between Palestine and Jordan. Goods in Lists A1, A2, and B entering the WBGS and the agreed upon products entering Jordan are duty free, provided that the import volume does not exceed the pre-determined quota. Products exported to Jordan must meet the Jordanian Rule of Origin (a product should be wholly obtained, i.e. grown, produced or manufactured. If not wholly obtained, the product should at least have 35% of the value added produced locally either in WBGS or Jordan).

USEFUL CONTACTS Some useful contacts for anyone seeking to do business in or with Palestine. PALESTINE MISSION IN THE UK Economic & Commercial Counsellor 5 Galena Road Hammersmith London W6 0LT Tel: 020 8563 0008 Email: trade@palmissionuk.org Website: http://www.palmissionuk.org BRITISH CONSULATE GENERAL PO Box 19690 The Occupied Palestinian Territories Tel: +972 (02) 541 4100 Email: britain.jerusalem@fco.gov.uk www.ukinjerusalem.fco.gov.uk PALESTINE TRADE CENTRE (PALTRADE) Website: www.paltrade.org PALESTINE INVESTMENT PROMOTION AGENCY Website: www.pipa.gov.ps PALESTINE CAPITAL MARKETS AUTHORITY (PCMA) Website: www.pcma.ps

AGREEMENT ON COMMERCIAL COOPERATION BETWEEN PALESTINE AND RUSSIA

PALESTINE EXCHANGE (PEX) Website: www.pex.ps

Russia and Palestine have extended “most favoured nation” status to one another in regard

The ABCC thanks the Palestine Mission in the UK for assistance in this editorial.

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Investment Map of Iraq Possessing the world’s second largest oil reserves and with its huge reconstruction needs, Iraq provides investment opportunities in almost all sectors.

Iraq has stated that it needs $88 billion to $100 billion for its reconstruction. It reportedly raised $30 billion during an International Conference for the Reconstruction of Iraq held in Kuwait on 1214 February 2018. The international investors’ conference heard that the Iraq market was open for investment. During the event, more than 200 projects, ranging from oil refineries to housing and transportation, were unveiled by Dr Sami al-Araji, chairman of Iraq’s National Investment Commission. “Iraq is open for investors,” he has declared. In addition to the 200 large projects, the country’s investment potential includes some medium-sized projects in the central and southern provinces. Turkey announced it will allocate $5 billion to Iraq in the form of loans and investments. The Kingdom of Saudi Arabia will give $1 billion in the form of investment projects and an additional $500 million to support Iraqi exports. Qatar pledged $1 billion in loans and investments, while Kuwait will provide $2 billion in loans and investments for reconstruction efforts. The United States, meanwhile, said the US Export-Import Bank

had agreed to loan Baghdad about $3 billion. Iraq’s vision to increase oil production creates opportunities for gas flaring, refineries and oil pipelines. There exists great growth potential across all non-oil sectors with unlimited investment opportunities on offer in reconstruction, services and light industries, enabled by local integration and international connectivity.

KEY HIGHLIGHTS Critical non-oil infrastructure needs to be rebuilt, including the energy sector, transport, housing and ICT. The country’s reconstruction can be a catalyst for private sector growth.

Iraq possesses strong communications and enjoys a privileged geo-strategic location. Investment in transport and logistics can boost domestic and foreign trade connecting Asia to Europe. After oil, ICT is the largest private-sectorled contributor to Iraq’s GDP. There is much scope for growth in the telecoms market as the country has one of lowest rates of mobile and fixed broadband adoption within the MENA region. Iraq needs investment in gas infrastructure and opportunities exist in expanding gas-topower generation to reduce environmentally damaging and costly gas flaring.

Opportunities are available in the service industries and light manufacturing.

Iraq plans to triple refining capacity by 2021 to reduce reliance on refined product imports.

Religious and cultural tourism attracts millions of visitors each year to Najaf, Karbala, and other areas.

Iraq expects to expand its crude production from a capacity of about 4.5 billion barrels per day today to 6 billion barrels in 2020.

High food imports indicate potential in agribusiness (such as horticulture) and light manufacturing, such as food processing. Chemicals, particularly petrochemicals, have attracted FDI and domestic investment.

An Iraq-Jordan pipeline is envisaged to eventually connect Basra with Jordan’s Red Sea port of Aqaba, with plans for another Northern pipeline project.

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• • •

uba field for petroleum products Aziziya field for petroleum products Samara field for petroleum products.

INDUSTRIAL SECTOR 30 PROJECTS CEMENT FACTORIES • Rehabilitation of a cement factory in Fallujah • Rehabilitation of a cement factory in Anbar • Rehabilitation of a cement factory in Mosul. CHEMICAL AND ENGINEERING PLANTS • Rehabilitation and development of engineering plants • Caustic soda project • Sodium carbonate project • Sodium sulphate project • Acid and alkaline factories. PETROCHEMICALS PLANTS • Petrochemicals plant in Al Faw • Polypropylene production plant • Petrochemicals plant in Basra.

INVESTMENT PROJECTS IN DIFFERENT SECTORS What follows are details of the projects in various sectors that have been identified for their potential for investment as presented by the National Investment Commission to the International Conference for Iraq Reconstruction:

OIL SECTOR 11 PROJECTS REFINERIES • New refinery in Al Faw – 300 thousand bpd • New refinery in Anbar – 150 thousand bpd • New refinery in Thi Qar – 150 thousand bpd • Rehabilitation of Doura • Rehabilitation of Basra. SEA WATER SUPPLY • Sea water supply project in Basra. TANK FARMS • Bin Omar field for crude oil • Mosul field for petroleum products

GLASS FACTORY • Rehabilitation and development of glass factory in Ramadi • Float glass factories in Karbala and Muthana provinces (2 projects). FERTILISER FACTORIES • Rehabilitation of existing fertiliser plant in Baiji • Reconstruction and development of fertiliser plant in Abu Al Khaseeb • New production lines for fertiliser plant in Khor Al Zubair • Rehabilitation and development of phosphate plant in Qaim • Production and processing of certified seeds project in Duhok. FOOD PROCESSING • Fruit juice factory in Halabja city • Tomato paste factory in Duhok • Grape juice factory in Duhok • Vegetable oil factory in Erbil • Vegetable oil factory in Sulaymaniyah • Vegetable oil factory in Duhok. DAIRY • Dairy products and ice cream factory in Erbil • Dairy products and ice cream factory in Sulaymaniyah • Dairy products and ice cream factory in Duhok. AUTOMOTIVE • Bus and mini bus assembly in Erbil city • Farm tractor and agriculture machines assembling in Sulaymaniyah city. PHARMACEUTICALS • Pharmaceutical production (different capacity for variable drug) in Sulaymaniyah city.

POWER SECTOR 5 ELECTRICITY PROJECTS & 7 SOLAR PROJECTS POWER STATIONS • Biji Station • Biji 2nd Gas Station • North Station • Hartha Commercial Station • Salaheldin steam Station. SOLAR PV STATIONS • Solar PV: Al – Hay • Solar PV: Diyala University • Solar PV: Abu Gharib • Solar PV: Haditha • Solar PV: Heet • Solar PV: Fallujah • Solar PV: Jissan.

TRANSPORT SECTOR 23 PROJECTS AIRPORTS • Rehabilitation and development of Mosul International Airport • Rehabilitation and development of Nasiriya International Airport • Air Cargo logistic project (150,000 ton capacity) in Erbil. RAILWAYS • New railway line (Baghdad–Basra) • Rehabilitation of the existing line (Baghdad–Basra) • Construction of railway line (Musaib– Semawa) • Construction of Basra–Iran line • Construction of railway line (Baghdad– Mosul) and branch line (Baquba Khanaqeen–Munthiriya–Iran). TRAMWAY • Tramway project in Erbil • Tramway project in Sulaymaniyah • Tramway project in Duhok. PORTS • Grand Port of Al Faw • Al Faw Port Economic Zone. HIGHWAYS • Rehabilitation and development of the 580km Baghdad–Basra highway • Rehabilitation and development of the 570km Baghdad–Mosul–Rabeea Feshkhaboor highway • Rehabilitation and development of the 180km Baghdad–Baquba–Iranian border (Al Munthiriya) highway • Construction of the 250km Baghdad– Kirkuk highway • Rehabilitation of 25km Bismaya– Baghdad Muhamed Al Qasim highway. METRO • Baghdad Metro

042 ECONOMIC FOCUS

• • •

Baghdad Mono Rail Mono Rail in Holly Karbala Province Basra Metro.

REAL ESTATE SECTOR 4 PROJECTS RESIDENTIAL • Investment Housing Project (various locations) • The New Karbala City Project • Dhifaf Karbala Project. HOTELS • Project to establish hotels in Baghdad or Basra.

HEALTH AND EDUCATION SECTOR 18 PROJECTS UNIVERSITY HOSPITALS • Karbala University Hospital • Mosul University Hospital • Ibn Sina University Hospital • University Hospital in Anbar province • Build a 400-bed teaching centre in (Kirkuk, Wasit al-Muthanna) • Build a cyclotron for cancer therapy • Build a University Teaching Hospital in Babylon Province • Build a University Teaching Hospital in Baghdad. PRIVATE HOSPITALS • Build Hospital with 400 bed capacity – Waist • Build Hospital with 400 bed capacity – Haditha • Build General Hospital with 100 bed capacity in Baghdad • Build General Hospital with 100 bed capacity – with furniture and equipment – Baghdad • Establish specialised hospital with furniture and equipment – Wasit • Build 400 beds hospital in Diwanya.

RESEARCH CENTRES • Building a research and manufacturing centre specialised in solar cells • An integrated agricultural incubator (for research purposes) • Advanced technological incubator for internationally developed technologies. PUBLIC HOSPITAL • A project to establish a public hospital; no further details available.

ECONOMIC ZONES 4 PROJECTS •

• • •

Huteen zone/Babylon Province for medium and heavy engineering manufacturing Mid Euphrates zone in Dewaniya Fine Machining zone in Nineveh (Al Kindi Co, site or Jabir Bin Hayan Co site) Baghdad zone (near BIAP) for advance technologies (Smart city).

TOURISM SECTOR 10 PROJECTS

COMMERCIAL SECTOR 12 COUNTRYWIDE PROJECTS

HOTELS & RESORTS • Recreational zone in Diyala (the old camp near Al Khalis, Himreen, and Udhaim lakes) • Rehabilitation and development of Habaniya resort, and build a new resort in Razaza Lake • Modern Tourism Complex according to general master plan of Board of Tourism in Erbil • Modern Tourism Complex according to general master plan of Board of Tourism in Sulaymaniyah • Modern Tourism Complex according to general master plan of Board of Tourism in Duhok • Airport 5-star hotel in Erbil • Airport 5-star hotel in Sulaimaniyah • Tourism Hotel and Restaurant (5+ stars) in Erbil • Tourism Hotel and Restaurant (5+ stars) in Sulaimaniyah • Tourism Hotel and Restaurant (5+ stars) in Duhok.

•

Construction of (12) Silos (grain storage) with flour mills in different provinces with a storage capacity of 60 thousand ton to 100 thousand ton each noting that there are special areas allocated for this purpose.

AGRICULTURE SECTOR 88 PROJECTS • •

Agriculture Projects Countrywide investment Projects (86 Sub-Projects) in agriculture in Nineveh, Saladin, Anbar, Wasit, Holy Najaf, Dewaniya, and Thi Qar, provinces for strategic crops. Total area is around 1.5 million donum for local needs and the rest for export.

LIVESTOCK • Cows breeding project in Sulaymaniyah • Cows breeding project in Duhok.

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INVESTMENT BY REGION The Investment Map of Iraq was prepared by the country’s National Investment Commission for the purpose of providing a detailed presentation about the available investment opportunities in Iraq’s Provinces and Government Ministries. The country consists of eighteen Provinces, three of them, Al Sulaimanyah, Erbil, and Duhouk, constitute the Kurdistan Region, whereas Basra, Mosul, and Erbil are considered the principal Provinces due to the large areas and large number of population they comprise. Iraq’s main resources are oil, natural gas, sulphur, phosphates, iron, red mercury, kaolin clays, bauxite, limestone, gravel and sand.

PROVINCE OF BAGHDAD

The most important activities within the Province of Baghdad are concentrated in the following fields: Oil refining, light industries, financial services, food manufacturing, tobacco, furniture, printing, construction, chemical and plastic material production, and electric devices. The capital Baghdad is the centre of the main and commercial activities, including where the most important oil industries are concentrated. Among these industries is Eastern Baghdad Oil Field which includes the biggest fixed reservations, in addition to many innovated and traditional industries among which are leather, textile, cement, and tobacco industries. Baghdad is also a vital and crucial centre for financial and banking exchanges through its financial and banking sector (state and private). The most important specialised universities, schools, specialised institutes, state and private hospitals are located here, in addition to a wide network of roads, international and local transport lines.

PROVINCE OF DIYALA

The economic activities within this province are concentrated in agriculture because of being situated on two main sources of water, Diyala River, a main affluent of the Tigris, and Uthaim River. A large proportion of the manpower is employed in agriculture. Oranges are widely grown in its orchards. Date palm trees are concentrated around Mouqdadiyah and run north towards Kifri. Olive, wheat, barley, and dates planting are common. Diyala Province is also famous for cattle breading, poultry, honey heaves, and fisheries.

PROVINCE OF SALADIN

The main economic activities of the province are cattle breading, agriculture, oil refinery, animal feed and the drugs industry. Tourism in this historic province is important with the ruins of the ancient city of Samara acting as a key visitor attraction.

PROVINCE OF KIRKUK

Kirkuk is famous for its shrines, mosques and ruins and antiquities. The Castle of Kirkuk is one of the main tourist attractions of the province. Kirkuk occupies an important commercial location situated at a key geographical point within that part of the country linking north Iraq to its middle regions. Its main economic activities are crude oil, cement production and agriculture.

PROVINCE OF NINEVEH

The province is noted for the city of Nineveh which is regarded as one of the most historically important cities in the country as it was the capital of the Assyrian Empire. Mosul is now the provincial centre and stands as the second biggest city in Iraq, after the capital, Baghdad. The main economic activities are agriculture, oil, asphalt, textile, sugar, dairy products and cement. There are numerous tourist attractions in Nineveh such as the Mosque of the Prophet Younus, the Mosque of Khidhr, Hadba Minaret, Noumroud, and Bashtabiyah Castle. The city is famous for its touristic woods, the Mosul Dam, as well as many sacred places and religious shrines.

PROVINCE OF IRBIL

Arbeel or Irbil, the capital of Iraqi Kurdistan, is the fourth largest city in Iraq after Baghdad, Basra, and Mosul. Irbil is a major commercial centre equipped with an international airport. Its tourist attractions include the Caste of Irbil which dates back to Assyrian times. The province is also noted for its scenic waterfalls.

PROVINCE OF DUHOK

Duhok is famous for its landscapes, the Duhok Dam and its ancient city. Its wide plains are rich in agricultural resources while its high mountains dominate the border with Turkey. It is a strategic commercial centre and international transport route for trade and linked to the oil route from Kirkuk to Turkey.

PROVINCE OF SULAIMANIYAH

Sulaimaniyah is a border province which has significant commercial relations with Iran. Its infrastructure includes Sulaimaniyah International Airport. It is noted for its mountainous landscape.

PROVINCE OF ANBAR

A large province rich in raw materials, Anbar has approximately 53 trillion cubic feet of

natural gas in addition to the natural minerals, such as gold, phosphate, iron, uranium, sulphur, and silver. It enjoys water resources embodied in the River Euphrates as well as lakes and reservoirs of groundwater valuable for irrigation in the western desert and arable fertile soil. The main activities are planting grains, cattle breading, dates production, fertilisers, cement manufacturing, ceramics and glass.

PROVINCE OF WASIT

The province’s centre is the city of Kut, 172km to the south of Baghdad. The province is famous for its minerals, natural resources and huge reservations of oil (in, for example, the oil fields of Ahdab at Ahrar District and Badrah field). Reserves of natural gas are linked to the oil reservations. Raw materials for the construction industry, such as cement, gypsum and brick are also available in large quantities. The province is also distinguished by its agricultural lands and produces high quality strategically grown plants such as wheat, barley, corn, cotton, sunflower, dates, vegetables and fruits production. Finally, tourism thrives because of the presence of many historic and religious sites.

PROVINCE OF BABYLON

The province is one of the country’s main areas of agricultural production and is rich in historical sites. There are many investment opportunities in the province among which are religious, archaeological and cultural tourism, cattle rearing and agricultural projects. Textiles production, grain and dates are important economic activities. Industrial activity as another important activity of the province, including various industries such as the State Company for Automobile Manufacturing at Alexandria which produces vehicle bodies and assembles automobiles, the State Company for Mechanical Industries, the Hilla textile factory, Al Forat State Co, a Cornflour and dextrin plant, Al Sada Cement Plant and a disposable syringes plant. The historic site of Babylon, located north of the city of Hilla, was the most famous city in the ancient and modern worlds and the miracle of the ancient world, particularly after its growth during the Babylonian’s King Nebuchadnezzar. Babylon’s walls and Hanging Gardens were noted among the Seven Wonders of the World.

PROVINCE OF HOLY KERBALA

The Holy City of Kerbala contains the shrines of Imam Hussein and the shrine of his brother, AlAbbas, which are major attractions for religious tourism. The province enjoys has soft pure land surrounded by dense orchards irrigated by the River Euphrates. Its main industrial activities are tourism, oil refining, dates, citrus, agriculture and canning factories.

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PROVINCE OF THI QAR Thi Qar, one of Iraq’s southern provinces, has as its centre the city of Nasiriyah. Historical evidence indicates that the name can be traced to the oldest period of human civilisation. Important historical sites, such as the ancient city of Ur, are located in the province. Main activities include agriculture, engineering and textile industries, oil and gas production, cattle breeding and fishing. The province is connected by the railway which links Basra to Baghdad.

PROVINCE OF MAYSAN

PROVINCE OF HOLY NAJAF

Najaf is one of the country’s important commercial, agricultural, cultural and religious centres. Tourism, commerce, cattle breeding and agriculture are the province’s main activities. The province boasts the international airport of Imam Ali, whose tomb is the province’s most important site for religious tourism.

PROVINCE OF MUTHANNA

The province is characterised by the availability of natural and human resources for investment. In this regard, especially notable is the industrial sector. Muthanna province is rich in raw materials whose extraction and production are of low cost, such as, limestone which is used in the cement industry, sedimentary compounds of sodium and chlorine used in salt production.

ARE YOU INTERESTED IN INVESTING IN IRAQ? For general information about investment opportunities in Iraq or about how to get an investment license, please visit the National Investment Commission’s website at the following link: www.investpromo.gov.iq or use the email info@investpromo.gov.iq Provincial Investment Commissions Each province possesses its own Investment Commission and their websites are:

The province is also boasts many date palm orchards and distinctive tourist sites near the Lake of Sawa. UNESCO designated the historic Al Warkaa as an international heritage site which has enhanced the province’s international reputation.

PROVINCE OF DIWANIYAH Diwaniyah is characterised by its fertile lands which qualify it as the food basket for the people at the area in specific, and for Iraq, in general. The main activities carried out in the province are agriculture (rice in particular), food stuffs industries, textiles, rubber (car tyres), cattle breeding, poultry breeding and eggs, brick factories and oil industry, notably the Dewaniya Oil refinery.

The province is a commercial centre for agricultural crops, fish, and cattle. Maysan is linked to the Provinces of Basra and Wasit by a 200km main road; and with the Province of Thi Qar through another road. An oil pipeline passes through the eastern part of the province and extends down to Basra and Fao to the south. Main activities consist of oil, cattle breeding, agricultural industries, sugar and paper production.

PROVINCE OF BASRA Basra is the third largest province in Iraq in terms of population and is considered to be the economic capital of the country, the location for its only port overlooking the Arabian Gulf and its main sea outlet. Basra has all six Iraqi ports, including the country’s deep port. Basra is rich in oil fields such as Rumaila, Shi’aiba, western Qurna and Majnoun. Due to its location on the plains of the Al Rafidain Valley, it is one of the best locations for the planting of rice, barley, wheat and millet. It is also famous for cattle breeding. The province, home to many religious shrines and historical sites, has a thriving tourism sector.

Baghdad Investment Commission www.baghdadic.gov.iq

Wasit Investment Commission www.wasitic.gov.iq

Muthanna Investment Commission www.misic.org

Diyala Investment Commission www.invesdiyala.com

Holy Karbala Investment Commission www.krinves.com

Diwaniya Investment Commission www.investdiw.gov.iq

Saladin Investment Commission www./investsalaaddin.org

Babylon Investment Commission www.bic.gob.iq

Basra Investment Commission www.investbasrah.com

Kirkuk Investment Commission www.investkirkuk.com

Holy Najaf Investment Commission www.investnajaf.net

Kurdistan Region Investment Commission www. kurdistaninvestment.org

Nineveh Investment Commission www.mosulinvestment.org

Thi-Qar Investment Commission www.thiqarinvest.gov.iq

Anbar Investment Commission www.anbarinvest.net

Maysan Investment Commission www.misic.com

Source: National Investment Commission, Iraq

ECONOMIC FOCUS 045

Installation of typical Hollow Core Slab

Introducing Unique Construction Technologies into the Middle East BY JOHN DURHAM, CEO, HOLLOW CORE SYSTEMS (MID-EAST) LTD John Durham is the CEO of Hollow Core Systems (Mid-East) Ltd and TermoDeck International Ltd. His career spans 60 years. In the late 1950s he trained as a civil engineer working on UK construction projects, particularly specialising in precast concrete technologies. He was approached in the early 1970s to introduce precast concrete into buildings into Saudi Arabia, where at that time speed of construction, particularly villas, was very slow due to traditional construction methods. This article explains the difficulties of establishing the first precast plant in Jeddah and the ultimate success (35,000,000mÂ˛ of floors over 35 years) and goes on to describe the ability to harness energy stored in structures using precast concrete. This has the effect of dramatically reducing power requirements for heating and cooling of buildings. A truly symbiotic relationship between concrete and the energy saving technology known as TermoDeck. Hollow Core Systems (Mid-East) Limited (HCSME), was started in 1974 to promote the introduction of pre-cast concrete floors into the Middle East.

The product, known as Hollow Core slabs, well established in America and Europe, with the reputation of being a high-quality flooring system with a capacity for casting spans up to 20m, together with being 35% lighter than the equivalent traditional cast in situ concrete slab. Installation also accelerated when compared to conventional construction; for example, five men can install up to 500mÂ˛ per day, with no waste or detritus. Hollow Core slabs also have a smooth soffit which when painted becomes a finished surface, for all the world creating the appearance of a high quality traditional plastered/painted ceiling. Naturally with all these advantages and the longer the spans the cheaper the overall cost of a typical structural floor would be.

However, the process of introducing such a product into the Middle East market was fraught with difficulties. Not least of which building contractors in those days made the majority of their profits from the construction of floors and were reluctant to incorporate new technology. In the 1970s a typical floor span was rarely more than 7-8m and would take all of 12 days to complete. OVERCOMING BARRIERS But the real barrier to introducing the Hollow Core concept was the requirement for a large dedicated factory which inevitably had to be placed well away from urban areas because of its size. In 1975 HCSME signed a technical management agreement with Saif Noman Said & Partners (SNS) to construct the first Hollow Core plant in the Middle East in Jeddah. Land was secured halfway between Jeddah and Makkah; then the real difficulties started. Not only was SNS a new partnership, which meant that the company had no workforce, but as there were very few industries in Jeddah at the time; steel fabricators and mechanical equipment

046 ECONOMIC FOCUS technology. It is hardly surprising that nobody in Saudi Arabia believed it.

Hollow Core Slab Hollow Core Slab painted

suppliers that exist today were not available. This meant that every single item for the factory starting with the specially-designed casting shed, overhead cranes etc, right down to the last nut and bolt, had to be shipped from the UK.

to design many of the university campuses, hospitals etc and fortuitously the consultant for the new students housing complex for the King Abdul Aziz University in Jeddah specified Hollow Core slabs, 120,000m²; SNS’s first major contract.

In 1975 major industrial investment programmes were underway in the Jeddah area. Inevitably this meant that the old Jeddah port rapidly became clogged. Waiting times for cargo ships to unload stretched to six months rendering planning of a new factory complex difficult. As an example, cement cargo ships would arrive in Jeddah and in order not to delay unloading the only way to bring the cement bags onto dry land was to use helicopters carrying pallets each weighing 3 tons, to-ing and fro-ing, from the ship; 340 round trips using four helicopters to unload one ship as an example.

ENORMOUS BENEFITS

To avoid the port blockage, SNS decided that the entire factory complex had to be fabricated in the UK and shipped by road from Manchester to Jeddah, all of 4,100 miles. This involved 120 semi-trailers and took over 10 months. Each trip would take anything between 10 days to three months. Three months duration meant something had occurred to the truck en route, but in those days there were no mobiles and communications from countries like Turkey, the former Yugoslavia or Syria back to base were not easy.

Nevertheless, the factory was completed within 18 months with freshly recruited Pakistani labour. There was then the problem of persuading the local construction industry to use the end product. At that time, international consultants were employed

Slowly the construction market realised the enormous benefits of Hollow Core slabs and many contractors and consultants specified the product. In 1979 SNS built a second factory in Riyadh and by the mid-80s Hollow Core slabs were being used throughout the Kingdom. By 2000, there were over 15 Hollow Core plants in Saudi Arabia with more being built. Hollow Core slabs were used in a majority of new projects, but it had taken all of 20 years to become such a ubiquitous product.

At a conference in 1979 in Sweden with other European Hollow Core manufacturers, the Swedish host gave a lecture on energy conservation using the thermal mass of a building to heat or cool it. The technology known as TermoDeck used as its ‘energy transfer medium’ the standard Hollow Core slab, the same product already used as a structural floor. What better building to use it as the first example in the Middle East than the office building for the Riyadh factory under construction. However, SNS rejected the concept. So what could TermoDeck achieve? A 50% reduction in the air conditioning (AC) requirement with up to 10% reduction in the capital cost compared to conventional

Between 1979 and 1990 we met several Saudi building owners and their consultants to try to persuade them to incorporate TermoDeck in their new buildings, all to no avail. It was only with the advent of the Gulf War in 1990, when there was no work, that we decided to reconvert the original SNS office building in Riyadh into a TermoDeck building. Ten months later the conversion was complete, with an AC package unit on the roof supplying chilled air to the Hollow Core slabs and replacing 22 individual window AC units. The result was a 52% reduction in AC power.

MASSIVE SAVINGS We invited the chief engineer of York to visit the factory. Within 10 minutes he had left never to be seen again; and why was that? He realised the massive savings the technology could bring to the market and of course he was not remotely interested. His role was to maximise profits, not reduce them.

We invited a prominent building owner to visit the reconverted factory and he was so impressed that he immediately instructed his consultants to incorporate TermoDeck into his new building; the Gulf Centre in Jeddah in 1995, a 31,000m² building requiring 2,200 tons of conventional cooling but reduced by 55% to just 750 tons with 250 tons on standby. The original structure had to be redesigned to incorporate Hollow Core slabs, to provide the radiant cooling. There were no need for false ceilings in the rooms to incorporate conventional AC branch ducts. A simple main supply duct fed chilled air into the individual slabs from the corridor through branch ducts. Eliminating false ceilings reduced the building height (the Hollow Core slab is the structural floor) allowing the building owner to add an additional floor within the original building height, not forgetting the reduced capital cost and speed of installation. The standby generators have never been used even in the height of summer.

ARAB-BRITISH CHAMBER OF COMMERCE 047

According to the Saudi Electricity Corporation (SEC) what actually happened was that in 1998 there were 20,000MW of installed power in the Kingdom; and in 2016, 18 years later, there were already 74,300MW of installed power, representing 3000MW increase per year as opposed to 2000MW as originally planned. So serious are the energy investment requirements that electrical authorities are now planning dramatic increases in the cost per Kw/ hour of energy, during the critical peak load period, in order to incentivise the construction industry to save energy.

Prospective Project: Mall

Location: Dubai

Size: 150,000 m2

HVAC CapEx Saving:

Dhs 64.5m

430 Dh/m2

Annual Electricity Saving:

Dhs 15.6m

104 Dh/m2

Savings over 30-years (current tariff):

Dhs 529m

3,526 Dh/m2

Savings over 30-years (increased tariff):

Dhs 679m

4,528 Dh/m2

Prospective Project: Hospital

Location: Abu Dubai

Size: 80,000 m2

HVAC CapEx Saving:

Dhs 24m

297 Dh/m2

Annual Electricity Saving

Dhs 3.2m

40 Dh/m2

Savings over 30-years (current tariff):

Dhs 111m

1,388 Dh/m2

Savings over 30-years (increased tariff):**

Dhs 141m

1,770 Dh/m2

** If Abu Dhabi tariff reach Dubai levels in 30-years, savings reaches Dhs 215m

Impact of Air Conditioning in the GCC: The Numbers ˜70% of all power produced in the GCC is for AC (10%: Annual Electricity Demand Growth)

149 GW of power in GCC ➔˜103 GW for AC

2026

Aramco to double gas output to 23 bcf raising share of gas in power production to 70% 2015

By 2018, the energy market in the GCC countries expanded way beyond the expectations of all governments and electricity authorities, more or less entirely due to the power requirements for AC, known to consume around 70% of all the power generated. In Saudi Arabia, the government’s 25-year electrification plan (1998-2023) cost projections anticipated a total investment in power generation, transmission and distribution of US$90 billion (SR338 billion) to implement the target 2000 MW per year or 40,000 MW over 20 years representing an annual investment of US$4.5 billion (SR16.90 billion).

enormous use of oil and gas to generate power together with massive subsidies. Is it any surprise that dramatic increases for the end user for power prices are planned in the GCC?

Saving Examples in CapEx and OpEx * (UAE)

Power

TermoDeck is not limited to the servicing of office spaces. In 2004 we completed an installation in the Lulu Hypermarket, in Muscat, Oman, which covered a total area of 20,000m². After more than one complete year of operation, the client confirmed that it had saved both in capital investments and day-to-day operations. Bjorn Ostbye, project development manager for the Emke Group, confirmed: “We have saved approximately $640,000 (AED2,35 million) on investments. The operational costs are around $150,000 (AED560,000) lower on an annual basis due to 30% less electricity charges and reduced maintenance.” Ostbye also reported a reduced cooling load using the system: “We installed 510 tons and 170 tons standby instead of the normal 950 tons plus 340 tons standby, and until now we have not required the standby chiller to be started up due to maintenance or additional capacity requirement.”

Finally, how is the power generated in the GCC? The interesting statistics below show the

Oil & Gas

The combination of the cost-saving Hollow Core slab as a structural element and energy store creates unique advantages. Perhaps the most important being that by using TermoDeck we can reduce peak power demand during the hot summer months by 90% simply by switching the chillers off between midday and 5pm. We realised this was possible after a major power cut in Dubai in 2005 and the occupants of the GAC Building (a TermoDeck building) were unaware of the power cut as the internal temperature of the building remained constant during the power shut down.

specific projects in Dubai and Abu Dhabi we are currently negotiating.

AC will need ˜70GW New capacity. CapEx: $140 billion (70GW consume ˜70 million tons LNG/year or $25-30bn per year)

˜3.3 mpbd (oil equivalent): quantity of oil consumed directly by AC in GCC ˜2.4 bfc/d: quantity of natural gas used in Abu Dhabi for AC (> Dolphin) By 2030: Forecast natural gas supply gap may exceed 600 million cubic metres GCC energy subsidy $160 bn/yr (Dhs 588 bn) or 10% of GDP

Subsidy

UNIQUE ADVANTAGES

Dhs $16.3 bn/yr: Abu Dhabi Govt cost for producing power specifically for AC Abu Dhabi: Dhs $17.5 bn subsidy on power/water. Larger than Dhs $14.4 bn Federal Education & Health budget.

Expensive & Unsustainable to Continue to Consume More Energy Simply to Satisfy AC! Sources: World Bank, IMF, AD Exec Council, AD RSB, Gulf News, The National, PWC, MEES, Apicorp, IRENA

The one product that eliminates peak load power economically by 92% is TermoDeck, not only saving capital expenditure but also massive operational costs. Today savings of energy are the main reason for clients wanting to use TermoDeck; see examples below for two

CONTACT Hollow Core Systems (Mid-East) Limited Tel: + 44 20 7821 5066 Email: jd@termodeck.com www.termodeck.com

048 ECONOMIC FOCUS

Speakers at Touchline’s How to do good book tour.

MEMBER INTERVIEW: TOUCHLINE

‘Our Work Makes Me Tremendously Proud’ From Vision magazine to Expo 2020 and the Museum of the Future, Dubai-based strategic content agency, Touchline, has played a pivotal role in some of the emirate’s most visionary projects. As the company prepares for an exciting rebrand, Chief Executive Officer Waleed Gubara describes the honour of being entrusted with telling some of Dubai’s most inspirational stories. Touchline has been established in the UAE for almost a decade. What have been the highlights? Our first major engagement was Vision magazine – a project that cemented our credentials in the UAE. To be entrusted with something so important, at such a challenging time, was incredible.

Vision, which reported on business, culture and innovation in the emirate, was integral to the positioning of Dubai following the global financial crisis. It was tremendously gratifying to play a leading role in developing and articulating that message worldwide. And, of course, our work with Vision led to our involvement in the successful Expo 2020 bid, which I regard as our signature project.

It gave us the opportunity to showcase all our capabilities – content, communications and creative, across print and digital – and delivered us one of our proudest moments when H E Reem Al Hashimy, Minister of State and Director General of the Expo Bureau, sent us a letter of thanks for our work, and called us a ‘true partner’ whose support they have always been able to rely on.

ARAB-BRITISH CHAMBER OF COMMERCE 049 Since then, doors have opened to us across myriad government ministries. We worked with the Prime Minister’s office on their Vision 2030 website. And we’ve done some really exciting branding projects, such as the Museum of the Future. I can’t help but smile when I drive down Sheikh Zayed Road and see the museum coming to life and the logo we created for it, so beautiful and prominent, and 100 per cent representative of the brand. It makes me tremendously proud. Much of Touchline’s work centres around the philanthropy sector. Tell us more about this and why it has special resonance in the region? Charity is an important part of the Islamic faith and of Arabic culture, so launching our magazine Philanthropy Age in the region made perfect sense. Philanthropy Age is a non-profit project that we pitched to the Bill & Melinda Gates Foundation. They came on board as a founding sponsor because of the magazine’s premise of advocating intelligent, sustainable giving. Since launching Philanthropy Age, we have seen a noticeable shift in the regional mentality towards the kind of giving that has a far greater, more measurable impact. Our work has seen us interview government figures and high-net-worth individuals in the region, and we’ve showcased exemplary work from many different foundations. The breadth and depth of our reporting, and the publication of reports such as The Arab Giving Survey, have helped us carve out an important and influential advisory role in the non-profit sector, which has led to further engagements, such as being a content partner for The Arab Giving Network and, most recently, the King Khalid Foundation in the Kingdom of Saudi Arabia. Touchline started life in London almost 20 years ago. Tell us about the company’s history and why it decided to establish a presence in the UAE. Touchline began as a small group of incredibly talented and creative editors and designers who all used to work for the same company and decided that they could do something more visionary themselves. When Touchline started, our primary focus was on sport, thanks to a major engagement with the International Olympic Committee (IOC) – a relationship that lasts to this day. Over the decades, that client roster has expanded and diversified, taking in international bodies such as the World Trade Organisation, technology accelerators and arts organisations. In 2008 we decided to set up a company in the UAE because we felt we had a lot to offer the region. The timing was really interesting, because it was directly after the financial crisis. We spent the first two years travelling in and out, exploring the market and carving a unique position for ourselves. In 2010 we

where we are today. You only have to look at our portfolio of clients, and the scope of our work, to see how far we’ve come. Down the years, the content landscape and deliverables have shifted dramatically, and we have stayed ahead of these trends every step of the way. Today we have a multi-disciplined team of designers, editors, videographers, programmers, illustrators and animators. And we have delivered many innovations, such as our bespoke app platform Enjoy. decided to officially set up Touchline. By then our mind was made up; this was a great country, full of opportunity, and we had to be a part of the story. How would you describe Touchline’s philosophy? Historically, companies used to try and engage with their customers through advertising. But then audiences started getting turned off and businesses began to realise that what they needed to do was tell their stories better. Even though so-called ‘content marketing’ is a new kind of thinking for many organisations, it’s who we’ve always been and what we’ve always done. Our philosophy has consistently been to use the art of storytelling to communicate clients’ most important messages. With each client project we also adopt the approach of being a partner, not a supplier. This is especially the case for our UAE projects because we are so invested in the region. Our international team have moved their families and lives to be here, and we care deeply about this place that we now call home. Over the past decade we are honoured to have shared the UAE’s journey. 2018 is an exciting year for Touchline, with a rebrand in the offing. Tell us more. We have evolved tremendously as an organisation, from where we were in 1999 to

So, there’s an old Arabic saying, ‘The carpenter’s door is loose’, which means, you are so focused on providing your professional expertise to others that you neglect to apply it to yourself. Basically, we’ve been doing amazing work telling our clients’ stories, but perhaps forgot to tell our own. Now it’s time to take a fresh look at our own branding in a way that reflects our progress as a company. So, the new Touchline branding pays tribute to what we’ve been doing for the last 20 years and puts it within a contemporary context. It doesn’t pigeonhole us as simply a publisher, or a content agency; it stresses that we are storytellers, regardless of the medium. Whether it’s video, print or digital, the delivery mechanism doesn’t matter; it’s all about crafting and telling beautiful stories for our clients that allow them to engage, inspire and connect with their audiences. Basically, the new branding and messaging will be bold. After two decades of crafting our clients’ stories with precision, care and creativity, we’re finally extending the same courtesy to ourselves. CONTACT Touchline FZ LLC Office 412, Loft Office 2B, Dubai Media City, PO Box 502034, Dubai, UAE Tel: +971 (0)4 568 3650 (Dubai) London: +44 (0)20 3034 4000 Email: info@touchline.ae www.touchline.ae

050 ECONOMIC FOCUS

The then Prime Minister of the UK, Rt Hon David Cameron MP, presenting an unprecedented fifth consecutive Queen’s Award for Enterprise in International Trade to Dr Rami Ranger.

‘We only succeed when our customers succeed’ Economic Focus speaks to ABCC member, Dr Rami Ranger CBE, Managing Director of Sun Mark Ltd. Your personal story is both fascinating and inspirational. Please tell us about the background and heritage that made you who you are. I am a posthumous child and was born two months after the assassination of my illustrious father who opposed the breakup of India in 1947 on the basis of religion. My father could foresee the consequences of religious disharmony and pleaded with the then Muslim leaders not to cut and run as they were not only dividing India but also the Muslims of India and would render them weak forever. He further stressed that after independence, India would be a secular and democratic country with one person, one vote and as a result, together we would make our destiny. The fanatics could not appreciate his vision of a united India free from rivalries and assassinated him when he was trying to save some students who had got caught up in communal riots. The students were saved

though my father lost his life for the sake of Hindu-Muslim unity in India and so became a martyr. You are Managing Director of Sun Mark Ltd. Tell us about the company, the landmarks in its history and its rapid growth over the years. In particular, please mention your business activities in the emerging markets and the Arab world. Sun Mark Ltd was set up in 1995 to market British FMCG – fast moving consumer goods – in emerging markets, especially in the Middle East and Africa. We saw a gap in the market where there were not many affordable quality products at a price that was right. Branded products attract huge costs in terms of advertisement and marketing and as a result, only top end customers can afford them. Sun Mark Ltd offers similar products at least 30% to 40% cheaper as it does not have those huge expenses normally associated with branded

products. The logic is simple: not everyone can afford a Chanel bag, for example, but people still need a good quality bag. That’s where we come in by offering quality products at affordable prices. As a result, our sales have grown and grown, and, in just 20 years, they are touching £200 million. You are also Chairman of Sea Air and Land Forwarding Limited. Please describe this company’s activities and explain how the two companies work together. Sea Air & Land Forwarding is a logistics company providing transport of commercial and personal effects worldwide by sea, air or land. Sun Mark came about because of Sea, Air & Land’s customer base who wanted British FMCG products. Through Sun Mark Ltd, customers of Sea, Air & Land could buy various products from one source and as a result, could eliminate many profit centres. They say you make profit whilst buying. If

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Her Majesty The Queen greeting Dr Rami Ranger CBE, Chairman of Sun Mark Ltd, and winner of the Queen’s Award for Enterprise from 2009 to 2113 in International Trade, at Buckingham Palace. Rt Hon Theresa Villiers MP, then Secretary of State for Northern Ireland, opens the Dr Rami Ranger CBE Centre for Graduate Entrepreneurship at London South Bank University. mentoring, giving talks at events and also through sponsorships. Dr Rami Ranger FRSA receiving an MBE for services to British business and the British Asian community from HRH Prince of Wales in 2005.

our buying is right, then selling automatically becomes right. By keeping inhouse shipping, we can offer customers competitive prices. Sun Mark Ltd and Sea Air and Land Forwarding Limited are both highly successful British companies recognised by government and many business and trade bodies. Would you like to give some examples of the prestigious awards that you and your companies have received over the years? Both the companies have been recognised by Her Majesty The Queen for their contribution to the British economy. Sea, Air & Land received the Queen’s Award for Export in 1999 and Sun Mark received an unprecedented five consecutive Queen’s Awards for Enterprise in International Trade for connecting Britain to 130 countries through trade. No other British company has received this accolade to date. How would you define your philosophy of life and your business vision? Our philosophy is very simple and can be summed up as, ‘We only succeed when our customers succeed’. We work hard to ensure the success of our customers which in turn becomes our own success. Our promise to our customers is that all profit is for them and every loss is for us. If in the unlikely event of a customer ever suffering a loss, we make that loss good. Money can always be earned back but if we lose a customer, we may never get that customer back.

What are the main sources of your inspiration? Our main source of inspiration is to be the best amongst the rest. We endeavour to go that extra mile for our suppliers, our customers and our staff. When suppliers, staff and customers are in sync then nothing can stop the growth of a business. Our self-respect is paramount and in order to maintain it, we are highly motivated. You are dedicated to building bridges between different communities in the UK. Can you please tell our readers about this work and why it is important to you? I was born in Pakistan and then due to the partition of India I moved to India. There is so much in common between the peoples of both the countries and, as a result, they should be close to each other rather than being rivals. Besides, in Britain we have one country and Queen and as a result have become one. People’s rivalry can damage social cohesion with dire consequence for us all. I believe we need to make conscious efforts to build bridges between these two British communities for the greater good of mankind. You are a great supporter of youth and realise the value of education. Explain what you have been doing to assist young people to realise their ambitions to become successful entrepreneurs. Our youth are our future and, as a result, we should try and help them realise their aspirations and dreams. I help them through

The UK government has appointed you to be an Apprenticeship Ambassador. Please explain what this work involves. This is a flagship programme of the British government. It is designed to eliminate the skills gap in the country by training people accordingly. More importantly, under the apprenticeship programme we can train people for real jobs and, in addition, as we want them to be trained. They can learn and earn at the same time. The programme is open to people of all ages and offers training from shop floor to the boardroom. I am a great champion of this approach. You are noted benefactor of many charities and good causes. Would you like to tell us about some of these activities? I believe giving is good. Those who give derive enormous satisfaction and those who receive timely help can transform their lives. Besides, government cannot do everything. By getting involved in worthy causes, we can bring a human touch to these worthy causes and foster more goodwill within our society from the individual level. Do you have any final message for our readers? I would like to encourage people to become more publicly and politically spirited by encouraging them to take part in the democratic process of our country. It is important that we take an interest in politics and public affairs and also try to have a role in it if we are to build a society that we want not just for the present but also for our future generations. Rami Ranger has recounted his own remarkable story in his autobiography, From Nothing to Everything, first published in 2014. For more on Sun Mark Limited see: www.sunmark.co.uk

052 ECONOMIC FOCUS

Address Dubai Marina

Hospitality Goes Global BY CLAIRE FARRINGTON, PR & PARTNERSHIPS MANAGER, GHS GLOBAL HOSPITALITY

GHS Global Hospitality joins the Arab British Chamber of Commerce with over 170 independent hotels, including Emaar Hospitality Group in Dubai, the Official Hotel and Hospitality Partner of Expo 2020 Dubai. Dubai’s gargantuan transformation from a small Gulf port to a world-famous destination in the space of a single generation is nothing short of remarkable. Now, with Expo 2020 Dubai glinting on the horizon, the city prepares once again for a building boom of blockbuster developments. GHS, a sales and marketing representation company for independent hotels worldwide, represents 13 properties in the City of Gold which is firmly established as one of the world’s top tourist destinations and global business hubs. GHS Global Hospitality is delighted to join the Arab British Chamber of Commerce, bringing with it an extensive selection of hotels in over 100 locations across the globe, offering ABCC members amenities and services for business and leisure travel, as well as extensive event and conference facilities.

Gergana Halatcheva, Senior Vice President for GHS, explains why a global choice of hotels and destinations is key: “GHS Sales and Marketing focus is unique – ensuring that each hotel partner’s distinct brand identity is enhanced and reaches every corner of the globe. The GHS portfolio of carefully selected independent hotels has something to offer to every traveller – with a range of exclusive properties in key city centre locations such as Paris, Milan, Barcelona, Dubai, New York, Chicago, Sao Paulo, to resorts with pristine beaches such as Lily Beach in the Maldives. “Our aim is to add new destinations with properties offering new and authentic guest experiences with the finest services and amenities and reveal to our clients and friends hidden gems which they can personally explore. Dubai is a hugely

important destination to have in our portfolio – tourism has boomed there over recent years and with attractions such as the Dubai Opera, Burj Khalifa and Dubai Parks and Resorts, plus the anticipated projects such as Dubai Creek Harbour and Dubai Hills Estate, Dubai is fast-becoming one of the best cities in the world.” Only recently, Emirates Airline celebrated the inaugural flight of its new daily service from Dubai to London Stansted, becoming the seventh UK airport from which Emirates operates, bringing the total number of daily flights between Dubai and the capital to ten. Dubai International Airport (DXB) is, not unsurprisingly, the busiest in the world: having overtaken Heathrow with 78 million passengers last year, with 150 airlines flying direct to 280 destinations.

ARAB-BRITISH CHAMBER OF COMMERCE 053 projects – both operational and upcoming – together offering more than 25,000 rooms and residences, the group’s new accolade of Official Hotel and Hospitality Partner of Expo 2020 Dubai is well deserved. “We are extremely proud to be working closely with and representing Emaar Hospitality Group and to bring all of its properties to the members of the ABCC,” Gergana Halatcheva, of GHS, added.

Address Boulevard

By offering three brands, Emaar Hospitality Group is able to appeal not only to highnet-worth individuals desiring the ultimate in luxury hospitality but also to millennial travellers wanting a more, contemporary place to stay. Indeed, with Dubai attracting more young entrepreneurs and start-ups than ever, Rove Hotels is fulfilling the city’s growing demand for mid-scale hospitality. Address Boulevard

ABCC members can also take advantage of any of GHS’s extensive global portfolio of hotels and resorts to fulfil their travel needs. Far-flung destinations that can offer a blissful sanctuary away from the modern hustle and bustle such as the all-inclusive resort award-winner, Lily Beach, in the Maldives, prove popular. This stunning resort is famous for its pristine, white sand beaches, exotic house-reef, luminescent, turquoise ocean surroundings, luxurious spa, numerous dining options and worldclass accommodation.

Lily Beach, Maldives

Furthermore, Dubai moved into the top ten destinations globally for international meetings, according to the 2017 report from the Union of International Associations (UIA), which ranked 1,157 cities globally based on the total number of international meetings that took place during the year. And the momentum keeps rolling as the UAE behemoth is metamorphosing once more for Expo Dubai 2020 and its goal of welcoming a staggering 20 million visitors per year. “With Dubai firmly consolidating its position as the fourth most visited city globally, we remain confident that our performance, backed by the continued strength of our partnerships across government and private sector stakeholders, will enable us to successfully attain our goals of becoming the #1 most visited city as well as being the most recommended with the highest number of repeat Dubai loyalists,” said Helal Saeed Almarri, director general, Dubai Tourism. Great cities at some point in their history deliberately create themselves and Expo 2020 Dubai, the first World Expo to take place in the Middle East, Africa or South Asia, sees the emirate’s entire skyline undergoing a rapid change, with projects worth billions of dirhams already under way. Emaar is spearheading this transformation with its much anticipated and most ambitious project to date: Dubai Creek Tower, a superstructure which will stand higher than Burj Khalifa, currently the

world’s tallest building. A joint venture with Dubai Holding, the tower’s design, inspired by a budding lily flower, was selected following a highly competitive pitch from some of the world’s most recognisable architects. Renowned Spanish-Swiss architect Santiago Calatrava Valls was chosen as the design mastermind behind the project. The tower is part of a larger ambitious development, Dubai Creek Harbour, a substantial waterfront development that combines ecological sustainability with financial viability and stunning architecture, also developed by Emaar and Dubai Holding. Its marina will boast spectacular views of the Downtown Dubai skyline as well as Dubai Creek and will be home to 81 berths for yachts and superyachts: the new Riviera of the Middle East. As the city’s natural harbour, Dubai Creek was the epicentre of Dubai trade, fishing and pearling. The development nods to its heritage whilst securing the city’s reputation for innovation, futuristic architecture and sheer scale. Dubai Creek Harbour will be twice the size of Downtown Dubai when completed. GHS represent Emaar Hospitality Group’s three distinctive brands: Address Hotels + Resorts, a premium luxury hotel and residences brand; Vida Hotels and Resorts, an upscale lifestyle hotel and residences brand and, most recently, Rove Hotels, a contemporary midscale hotel brand. Now with a robust portfolio of 50 hospitality

For all-inclusive plans, Lily Beach Resort’s Platinum Plan is one of the most complete in the Maldives, offering a fantastic array of quality services, including an unlimited beverage bar with over 80 types of imported premium drinks, including Frenchselected Taittinger champagne, fine dining experiences, two excursions including coral garden snorkeling and a sunset cruise and Airport Team assistance on arrival and departure with free access to the VIP lounge in the seaplane terminal. Ideal for families with children as well as couples and honeymooners, Lily Beach are delighted to welcome ABCC members to stay and enjoy a complimentary 30 minute massage in the spa, in addition to all that is offered in the package. With one of the world’s most exotic and beautiful destinations such as the Maldives and the futuristic, global metropolis that is Dubai on offer, GHS brings a truly unique collection of independent hotels to the chamber, ideal for leisure or corporate business. Please email bookings@g-h-s.com for any booking enquiries and visit www.g-h-s.com for the full portfolio of hotels. CONTACT Claire Farrington Partnerships and PR Manager GHS Global Hospitality Email: claire.farrington@g-h-s.com www.g-h-s.com/en/brochure.html

054 ECONOMIC FOCUS

Mr Abdullah Al-Subaiyyal, President & CEO of YASREF, (centre) visiting the offices of Berkeley Engineering Consultants.

ABCC Member Profile

Berkeley Engineering Consultants Mr Abdullah Al-Subaiyyal and Mr Irteza Piracha. Berkeley Engineering Consultants, a UK based global engineering consultancy, was proud to welcome Mr Abdullah Al-Subaiyyal, President & CEO of the Yanbu Aramco Sinopec Refining Company (YASREF), and Mr Ahmed Al-Ruwaithi, to one of its project offices in Reading in April 2018. Joining Berkeley Engineering Consultants on the prestigious event were Mr Andrew Brewer and Mr Jonathon Alms from the Department of International Trade. Discussions between the companies involved ways to further strengthen the partnership between YASREF and Berkeley Engineering Consultants (BEC) and how to create more opportunities to support YASREF in optimising production. It was also an honour to have members of the former UKTI share their initiatives to encourage the expansion of ties between the two kingdoms. UKTI, now DIT, have been a real source of encouragement to the company and have been helpful in the growth of BEC worldwide. Berkeley Engineering Consultancy is an engineering and management consultancy with its head office in Mayfair, London. BEC has created its organisation with the aim of assisting clients in the execution of projects in the upstream oil and gas, refining and petrochemicals sectors, as well as urban development and town planning.

It is a unique engineering consultancy which has grown from strength to strength. The company has implemented the ethos to be located close to its clients and as such offices around the world have been established. BEC has been particularly successful in its expansion in the Kingdom of Saudi Arabia, a sentiment that was shared by Mr Al-Subaiyyal. Following the visit, Mr Al-Subaiyyal wrote a letter of appreciation to thank BEC’s Irteza Piracha for his “outstanding support and hospitality”. The letter indicated that YASEF was “looking forward to having a strong business relationship” with BEC in future projects and optimisation studies. It further commended Mr Piracha for his “hard work, inspiring capabilities, continued pursuit of excellence and dedication to YASEF”. BEC has been privileged to have been awarded long form engineering contracts for major refineries and petro chemical facilities. Company CEO, Mr Irteza Piracha, says, “We would like to thank all of our prestigious clients for their tremendous support as always and we will continue to make our company stand proud and increase its services to its clients”. The growth mentality of Berkeley Engineering Consultants and its adaptability has led it to adjust its business model to meet the current challenges faced by the oil and gas

and petrochemical sectors. The increased focus on controlling costs and optimising production and plant operations are areas of expertise of BEC and the company has accordingly provided services to ensure these two initiatives can be met. The company’s steering team comprises of a core working group of highly experienced individuals with backgrounds in process and engineering design and project management. The diversity of our core working group gives us the flexibility to pursue challenging projects and the strength to satisfy the needs of the client. We have gained experience with plant requirements and priorities in this current challenging and competitive environment. We have organised project execution teams for expert delivery of projects, and have provided specialist engineering and management services. In all cases, the roles and responsibilities are very much tailored to suit both the client’s need and the project structure. Berkeley Engineering Consultants continues to pursue its philosophy to expand its operations and now has implemented low cost engineering cost centres to compliment its team of industry specialist from its offices in the UK. More information about the company can be found on the website www.berkeleyeng.com.

ARAB-BRITISH CHAMBER OF COMMERCE 055

ABCC Member Profile

Rayner Essex LLP Chartered accountants and business advisors, Rayner Essex, has been established since 1967 with offices in Central London and St Albans. The ABCC member company has eight partners and around 70 staff with the range of skills needed to provide clients with the solutions they need. Rayner Essex recently promoted Laith Hilfi to a Partner. As part of the partnership team, Laith is supporting the company’s Middle Eastern, international and domestic private clients and companies, advising on residence and domicile issues. Welcoming the news, Mark Moore, Rayner Essex Tax Partner, remarks: “Laith has a strong and loyal client base, is a highly capable individual and a pleasure to work alongside. His progression within the firm has been rapid and I have no doubt that he will be an invaluable member of our senior management team.” Laith joined Rayner Essex in April 2016 and has proved integral in developing the firm’s private client and international capability. Prior to joining Rayner Essex, he worked at Hazlems Fenton LLP from 1998 to 2016 where he developed their Middle East practice. Laith comments: “I was initially attracted to Rayner Essex as a result of its mix of professionalism, a genuine meritocratic culture and a distinctive and supportive style of working. I was warmly welcomed when I joined and am delighted that I have been offered this opportunity so early in my career with the firm.”

Laith is a fellow of the Association of Chartered Certified Accountants and has a Bachelor of Engineering in Telecommunications from Queen Mary, University of London. Rayner Essex provides accountancy and tax solutions and advice in the most no nonsense, practical, transparent way possible. Expert professional advice is delivered on time, in a language the clients understand and with a transparent billing process. Its clients range from all fields of business, industry, the professions, arts and the entertainment world. They include large corporates operating nationally and internationally, privately owned businesses of every size, professional practices, partnerships, sole traders and self-employed individuals. The company has an extensive knowledge of overseas corporate financial matters and is a member of INPACT, an international network of independent professional accountants with member firms operating in more than 60 countries around the world. Clients value the service and expertise they receive from Rayner Essex which provides them with technical and business advisory skills associated with those delivered by much larger firms. More information on Rayner Essex can be found at www.rayneressex.com

Laith Hilfi

“I was initially attracted to Rayner Essex as a result of its mix of professionalism, a genuine meritocratic culture and a distinctive and supportive style of working. I was warmly welcomed when I joined and am delighted that I have been offered this opportunity so early in my career with the firm.”

056 ECONOMIC FOCUS

ABCC Member Profile

Royale Essance Ltd Royale Essance Ltd is an innovative fragrance company, which created a brand called RoyalĂŠ Scentric to deliver air care solutions to various industries. Here at Royale Essance Ltd we believe the power of scent can drive sales and change the mood in the room. This is why we created a robust Air Scent Device that can pump out a delicate mist of fragrance to create the perfect aroma in the air. We know how much your business means to you and how important it is to maintain a high level of customer service. Welcoming your customers with a pleasant scent not only leaves a long last impression but also leaves a memory within the customers mind. Your staff are one of the main keys that drive your business, this is why all of our Air Scent Devices are scientifically tested to enhance the mood in your work environment to achieve great results. Test results have proven that the power of scent can increase your sales revenue by maximum 20% in the first year. Our Air Scent Deviceâ&#x20AC;&#x2122;s work based on the size of the room (m2), from there we choose the most efficient device. We then go through the fragrance selection, where we have the most enchanting fragrances for you to choose from; however, if you feel you want something bespoke for your business, we can also offer this.

Contact Royale Essance to arrange your free consultation on

+44 (0) 1582 283138 / +44 (0) 73911 44466 customercare@royaleessance.com | www.royaleessance.com

ARAB-BRITISH CHAMBER OF COMMERCE 057

ABCC Member Profile

Al Suwaiket and Al Busaies Attorneys at Law Al Suwaiket and Al Busaies, Attorneys at Law, (S&B) aims to provide clients with highly professional legal services by qualified and experienced lawyers collaborating to implement client business strategies.

INFORMATION TECHNOLOGY

The firm is incorporated in the Kingdom of Saudi Arabia with its headquarters at Al-Khobar, Eastern Province, a branch in Riyadh and an affiliated office in the Kingdom of Bahrain. See below for contact details for the offices.

The firm offers legal assistance, proactive legal services and the latest reliable legal solutions to the technology sector from large companies to SMEs and even emerging companies. ENERGY SERVICES

The firm co-operates with specialised expert firms worldwide in the areas of its practice which include but are not limit to: Provision of legal advice and consultations in the fields of company set-up and formation, foreign investment, trade law, freight, maritime, banking and finance law, drafting and reviewing contracts, labour and employment laws, intellectual property, insurance, oil and energy, taxation, dispute settlement, liquidation, litigation and arbitration, and representing clients before all kinds and levels of courts and judicial bodies.

LABOUR & EMPLOYMENT LAW Employment relation is one of the most important aspects of a client’s business and the firm’s lawyers work efficiently to meet the client’s needs in the sector. REAL ESTATE SERVICES

Foreign Investments and Company Set-up These services include:

S&B provides fully effective real estate services to its clients.

• Guiding clients to choose the suitable legal entity for their business activities. • Advice at all stages of the regulatory and licencing process. • Arrangements related to establishing and licensing all types of companies, local, GCC, mixed and foreign company; • Drafting legal agreements such as agreements that precede establishment of joint ventures, letters of intent, Articles of Association, agreements, shareholders resolutions and other similar agreements; • Licence and open all types of company branches; • Mergers and acquisition procedures.

INSURANCE LAW

LITIGATION AND ARBITRATION S&B’s practice in litigation is complementary to other professional practice areas; lawsuits are handled by professional lawyers with highly expertise in attorney and litigation before all courts and committees. FAMILY BUSINESS SERVICES Our Family Business legal practice is the market leader and dedicated for building the legal structure for business entities and binding understandings necessary to insulate family controlled businesses and assets from external threats and internal family dialogue debates.

S&B operates a specialist insurance practice to cater to all aspects of the Middle East’s insurance industry, including major regional and international insurers, brokers, third party administrators and reinsurers. DUE DILIGENCE Due diligence services involve conducting careful and thorough research into business decisions before acting. Typically, due diligence involves assessing historic financial information, as well as determining whether a company or entity has presented accurate information on working capital and cash flow.

S&B provide a full range of services for corporate and regulatory matters affecting the petroleum sector and energy including trade, privatisation, mergers and acquisitions, joint ventures, environmental regulation, litigation, and arbitration in both domestic and international markets. TAXATION Services cover domestic and international corporate tax planning, counselling and representing them in litigation in tax related issues. S&B is specialised in preparing of appeals against zakat and tax assessment to the competent committees. BANKING SERVICES S&B represents clients in large banking and commercial transactions, as well as meeting their needs in regulatory, public policy and enforcement areas. Clients include asset managers, building societies, capital markets and their participants, investment banks, national regulators, private banks, private equity firms, professional services organisations engaged principally in financial services and retail banks. ATTESTATION SERVICES

MERGERS AND ACQUISITIONS

The firm can verify documents such as academic certificates, IDs and passports and witness signatures as genuine.

Expertise in corporate structuring and restructuring.

CONTACT

INTELLECTUAL PROPERTY S&B’s worldwide resources along with our active and regular presence in seminars on IPR issues allows it to provide IP services such as documentation, licencing, client counselling on patent strategy for product development and its protection covering the biotechnology, chemical, electronic, and mechanical field.

Headquarters (AL Khobar) Tel: +966 13 887 7512 Email: info@sb-lawyersweb.com Branch (Riyadh) Tel: +966 11 484 7188 Bahrain Branch (Affiliate Office) Tel: +973 3958 2483 Email: hassanhhahmed@yahoo.co www.sb-lawyersweb.com

058 ECONOMIC FOCUS

New Members Fahad Al Suwaiket and Bader Al Busaies Attorney at Law

Al Salah Tower Level 8 Suite # 806 PO Box 4732 Al Khobar 31952 SAUDI ARABIA Tel: +966 1 3 887 7512 Contact: Dr Bader Al Busaies, CEO Email: dr.bader@sb-lawyersweb.com Business Activities: Legal advice and consultation in the fields of company set-up and formation, foreign investment, trade law, freight, maritime law, banking and finance laws, drafting and reviewing contracts, labour and employment laws, intellectual property, insurance, oil and energy, taxation, dispute settlement, liquidation, litigation and arbitration; providing representation for clients before courts and judicial bodies.

Capplex

Ely Place Chambers 13 Ely Place LONDON EC1N 6RY UK Tel: +44(0)20-7400 9600 Contact: Mr Michael Patchett-Joyce, Principal Email: mpatchett-joyce@elyplace.com Business Activities: Barrister, providing professional services consultancy

Glob Marketing Limited

Maple House High Street POTTERS BAR Hertfordshire EN6 5BS UK Tel: +44(0)20-3129 7718 Contact: Mr Christian Hami, Marketing Manager Email: info@globmarketing.com Business Activities: Trading in dairy products, meat and cleaning materials

Froneri International plc

Richmond House Leeming Bar Industrial estate Leeming Bar NORTHALLERTON DL7 9UL UK Tel: +44(0)1677 423 397 Contact: Mr James Turner, International Business Development Email: James.turner@uk.froneri.com Business Activities: Ice Cream Manufacturers

Alium Medical

7 Capital Business Park Manor Way BOREHAMWOOD Hertfordshire WD6 1GW UK Tel: +44(0)20-8238 6770 Contact: Mrs Khilood Jamal, Middle East Account Manager Email: enquiries@aliummedical.com Business Activities: Clinical Trial Supplies, International Sales and Unlicensed Medicines and Specials. The company also helps customers facing product shortages or discontinuations. Products are sourced either from validated and approved suppliers or directly from manufacturers for clinical trials.

Proelium Law LLP

35 New Broad Street LONDON EC2M 1NH UK Tel: +44(0)20-3875 7422 Contact: Mr Adrian Powell, Partner Email: apowell@proeliumlaw.com Business Activities: Full spectrum of corporate, commercial and litigation advice to clients working in the UK, Iraq, Afghanistan, Syria and Yemen to name but a few.

Expatriate Tax Advisory Service Limited

Deerleap Cottage Sutton Place Abinger Hammer DORKING Surrey RH5 6RL UK Tel: +44(0)130-673 1012 Contact: Ms Karen Worcester, Director Email: karen@expatriatetax.co.uk Business Activities: Providers of UK and US tax advice and tax preparation services to UK, US and other expatriates and employers

RABG Academy

151 Askew Road LONDON W12 9AU UK Tel: +44(0)7018 5148 Contact: Mrs Rula Alousi, CEO Email: rula@rulezaviation.co.uk Business Activities: British education and training provider; academic services; online training

Eskan Electronics Limited

P O Box 1786 LEICESTER Leicestershire LE5 5ZE UK Tel: +44(0)116-273 8228 Contact Name: Mr Yusuf Aboobakar, CEO Email: Yusuf@Halalce.com Business Activities: Halal Certification of Food, Cosmetic and Pharmaceuticals

Unit 3B Kelvin Industrial Estate Long Drive GREENFORD Middlesex UB6 8WA UK Tel: +44(0)20-8813 0776 Contact: Mr Andy Williams, Executive Director Email: andy.williams@eskan.com Business Activities: Manufacture and supply of security and defence equipment

Eurl Bouamer Service Des Vehicules

Trinity College London SELT Ltd

TMFB Ltd (T/A Halal Certification Europe)

BP 265 ZELFANA GHARDAIA 47007 Ghardaia ALGERIA Tel: +213 292 64540 Contact: Mr Bouamer Mohammed, Director Email: stabzelfana@yahoo.fr Business Activities: Import and Export of vehicles spare parts

Ingenious 3 Limited (T/A Moneywallah)

Freemans House 127a High Street HUNGERFORD Berkshire RG17 0DL UK Tel: +44(0)163-528 2993 Contact: Mr Richard Prosser, CEO Email: richard.prosser@fultech.co.uk Business Activities: E-Money Remittance & E-Wallet (Fintech)

Touchline Publishing Limited

83-85 Paul Street LONDON EC2A 4NQ UK Tel: +44(0)797-424 3784 Contact Name: Mr John Yetton, Partner & head of UK strategy Email: john@touchline.com Business Activities: An international strategic content and communications agency with offices in London, Dubai and Geneva; Touchline includes strategists, editors, journalists, designers, animators, film-makers, photographers, illustrators, project managers, social media analysts and developers.

Cambridge Training College Britain Limited

83 Baker Street LONDON W1U 6AG UK Tel: +44(0)776-822 5666 Contact: Prof Nabil Hegab, CEO Email: hegab@ctcbritain.com Business Activities: High-quality training service for people seeking to obtain high skills as well as respected awards; it offers various learning options such as home learning; students in the Middle East can study at one of the Collegeâ&#x20AC;&#x2122;s many affiliated study centres. GOLD MEMBER

VATGLOBAL

1st Floor - Omni House 252 Belsize Road LONDON NW6 4BT UK Tel: +44(0)20-3929 2137 Contact: Mr Mohammad Taiyyab Sajid, VAT Manager Email: taiyyab.sajid@vatglobal.com Business Activities: VAT Advisory and International VAT tax recovery consultant with 60 global offices and strong team of 500 experts working for 8000 International clients

Recycling Lives Building 1a Essex Street PRESTON Lancashire PR1 1QE UK Tel: +44(0)746-941 2310 Contact: Ms Deborah Morgan, SELT Account Coordinator Email: deborah.morgan@trinitycollege.co.uk Business Activities: Trinity provides Secure English Language Tests (SELTs) across the UK approved for applications to UKVI for visas, British Citizenship and Leave to Remain

Food Matters Global

Unit 410 Metal Box Factory 30 Great Guildford Street LONDON SE1 0HS UK Tel: +44(0)20-3735 5960 Contact Name: Ms Briony Mansell-Lewis, CEO Email: briony.mansell-lewis@foodmatterslive.com Business Activities: Cross-sector event bringing together the food and drink industry, retailers, foodservice providers, government and those working in nutrition, to enable collaboration and innovation to support a sustainable food landscape for the future.

Eckert & Ziegler Environmental Services Ltd

3A Didcot Park Churchward DIDCOT Oxfordshire OX11 7HB UK Tel: +44(0)123-551 4310 Contact: Mr Peter Swann, CEO Email: peter.swann@ezag.com Business Activities: Isotope technology for medical, scientific and industrial use: Radiation Therapy, Isotope Products and Radiopharma.

HNS Pharma Limited

Unit 4 Forest Hill Industrial Estate Perry Vale Forest Hill LONDON SE23 2LX UK Tel: +44(0)20-8699 8944 Contact: Mr Nilen Patel, Managing Director Email: nilen@hnspharma.co.uk Business Activities: Global pharmaceutical exports, sourcing products from verified UK manufacturers

ARAB-BRITISH CHAMBER OF COMMERCE 059 GOLD MEMBER

Oman Air

Axiom Stone Solicitors

177 Hammersmith Road LONDON W6 8BS UK Tel: +44(0)20-3829 7436 Contact Name: Mr Kelpesh Patel, Sales Manager UK & Ireland Email: kelpesh.patel@omanair.com Business Activities: Global Middle East Airline with double daily connections from London and daily connections from Manchester to Oman. Connecting to over 50 destinations worldwide.

1 Spring Villa Road Edgware EDGWARE Middlesex HA8 7EB UK Tel: +44(0)20-8951 6989 Contact: Mr Toby Matthews, Solicitor Email: tm@axiomstone.co.uk Business Activities: Solicitors service to all clients including both residential and commercial property, litigation, private client, employment, corporate and commercial and family law.

D J Byers Security Solutions

Falcon Commodity Services Limited

Velco House The Square Ferrybridge KNOTTINGLEY West Yorkshire WF11 8ND UK Tel: +44(0)197-767 0987 Contact: Mr Patrick Byers, Technical Director of Defence Systems Email: patrick@djbyersdefence.com Business Activities: Engineered Advance Defence Technologies to the International and Homeland Defence Markets. Utilising the very latest in technology combined with over 35 years experience, enables our company to deliver bespoke solutions to meet end user requirements.

Atticus Energy Ltd

4 Station Court Girton Road Cannock Staffordshire UK Tel: +44(0)777-932 7970 Contact: Mr Kenneth Chia, Director Email: ken@atticusenergy.com Business Activities: Engineering Services and Consultancy

Maybourne and Russell Limited

Unit 5 Leigh Green Industrial Estate Appledore Road TENTERDEN Kent TN30 7DE UK Tel: +44(0)158-076 3264 Contact: Mr Naji Kassir, CEO Email: Naji.kassir@mandrgroup.com Business Activities: Electrical and Mechanical Contractors

Constantine Limited

20-26 Sandgate Street LONDON SE15 1LE UK Tel: +44(0)20-7732 8123 Contact: Mr Paul Williamson, Commercial Director Email: Paul.Williamson@const.co.uk Business Activities: Fine art logistics for private collectors, museums and galleries worldwide; family owned for four generations, combining unrivalled knowledge and experience in transportation with the latest technical innovation in secure art storage, expert project management and logistics by air, road and sea.

8-10 South Street EPSOM Surrey KT18 7PF UK Tel: +44(0)1306 644 652 Contact: Mr John Wharton, Chairman Email: jpwharton@falconcommodityservices.co.uk Business Activities: Brokers in facilitating Islamic Finance transactions

Dr Khalid Altwayan Attorneys & Counsellors at Law

Kindergarten Street Altanhat Al Zahraa District 12812 Al Riyadh SAUDI ARABIA Tel: +966 11 475 0101 Contact: Dr Khaled Al Tawyan, Principal Partner Email: info@twayan.com Business Activities: Dispute settlement (arbitration, mediation and claims); criminal cases; insurance and Insurance disputes; Zakat and tax; work and social security issues; technology, communications technology and E-commerce; legal services to banking & finance; protection of investments in agriculture, real estate, energy & natural resources; mergers and acquisitions. Legal services locally and internationally.

ELEMARA UNITED

Said Ameen Street Albrathya District Basra IRAQ Tel: +964 780-029 1000 Contact: Mr Salih Elemara, CEO Email: salih.elemara@elemaraunited.com Business Activities: Contracting, construction management, design-build; civil, electrical, mechanical and chemical engineering solutions; importing oil & gas, construction and industrial machinery; consulting services to the oil & gas, equipment, construction, metal and machinery sectors; general trading.

Royale Essance Limited

1a Ludlow Avenue LUTON Bedfordshire LU1 3RW UK Tel: +44(0)158-228 3138 Contact: Ms Aroosa Ali, Director Email: aroosa.ali@royaleessance.com Business Activities: Retail business for Perfume, Cosmetics and Air Care solutions as well as a private label manufactures

Ultimotive Limited

4 Altbarn Close Wyncolls Road COLCHESTER Essex CO4 9HY UK Tel: +44(0)120-685 5232 Contact: Ms Jemma Lancaster, CFO Email: jemma@ultimotive.com Business Activities: Automotive manufacture, sales and distribution

Gulfvisa Limited

17 Hanover Square Mayfair LONDON W1S 1HU UK Tel: +44(0)20-3371 1554 Contact: Mr Soufyan Abbas, Director / Owner Email: soufyan@gulfvisa.com Business Activities: Visa services include stamping of personal and commercial documents from Solicitors, Notary Public, British Foreign Office (FCO) and embassies in London; translations of personal and commercial documents from English into Arabic and vice versa. Helping British people to obtain a second British passport (for the frequent business traveller), renewal of passports

Just Visas Limited (T/A Prince Visa Services)

Ground Floor 142 Buckingham Palace Road LONDON SW1W 9TR UK Tel: +44(0)20-7730 1207 Contact: Mr Sultan Ali, Director Email: sultan.ali@princevisa.com Business Activities: Consular Services; Visa and Passport Renewal; Document Legalisation; Government, Consulate and Embassy Assistance; Business, Tourist, Residency and Work Visa Specialists.

Visa Medical Services Ltd

117a Harley Street LONDON W1G 6AT UK Tel: +44(0)20-7224 2843 Contact: Ms Beverley Hudson, CEO Email: bev.kee@visamedicalservices.com Business Activities: Visa processing on behalf of clients medical health screening

BFC Bank Limited

9th Floor South Quay Building 189 Marsh Wall LONDON E14 9SH UK Tel: +44(0)20-8181 3677 Contact: Mr Mark Garrity, Senior Relationship Manager Email: mark.garrity@bfcbank.co.uk Business Activities: BFC Bank is part of BFC Group Holdings WLL Bahrain; global money transfers, currency exchange and wholesale currency services. BFC Group operates five international exchange houses across Bahrain, Kuwait, the United Kingdom, India and Malaysia.

Regent Visa Service Limited

Office 325 Linen Hall 162-168 Regent Street LONDON W1B 5TE UK Tel: +44(0)20-7039 0152 Contact: Mr Darren Scholte, Director Email: darren@regentvisas.com Business Activities: Central London office located close to all main Embassies enabling quick services for last minute visa and passport requirements.

Action Visas (UK) Limited

5 Market Yard Mews 194-204 Bermondsey Street LONDON SE1 3TQ UK Tel: +44(0)20-7939 8100 Contact: Ms Asha Patel, Accounts/Finance Email: apatel@cornhillgroup.com Business Activities: Visa, Passport and Consular services

Universal Visa Services Ltd

G11 Davina House 137-149 Goswell Road LONDON EC1V 7ET UK Tel: +44(0)20-7490 0091 Contact: Mr Irfan Khan, Compliance Manager Email: irfan@universalvisas.com Business Activities: Passports Visas Legalisation

St James Court Hotel Ltd

51 Buckingham Gate LONDON SW1E 6AF UK Tel: +44(0)20-7963 8389 Contact: Mr Tomas Luko, Director of Sales Email: tomas.luko@tajhotels.com Business Activities: 5-star luxury hotel in London SW1 with a wider choice of suites and residences of between one and six bedrooms offering space and flexibility to accommodate families, state delegations or travelling business executives.

060 ECONOMIC FOCUS Memery Crystal LLP

165 Fleet Street LONDON EC4A 2DY UK Tel: +44(0)20-7242 5905 Contact: Ms Kate Ewings, Head of Marketing & BD Email: victoria.savory@memerycrystal.com Business Activities: Specialist international law firm, based in London.

ALDAR ALKABIRA

Amer Bin Malek Street Building 71 Khalda Amman JORDAN Tel: +962 6554 2157 Contact: Mr Hatem Al Zoubi, CEO Email: hatem@aldarjo.com Business Activities: Specialised in distributing electrical materials, like lighting from bulbs to switches and electrical appliances.

DJB Passports & Visas

2 Long Street LONDON E2 8HQ UK Tel: +44(0)20-7684 6242 Contact: Mr Lee Rayment, Director Email: lee@djbvisas.com Business Activities: Passport and Visa agency, sourcing business, tourist, work visas. The company also process UK, Irish and USA Passports renewals and 2nd applications. Also organises legalisations and translations services.

Corporate Business Services (CBS)

Office 1402 48 Burj Gate Sheikh Zayed Road Down Town 34938 Dubai UNITED ARAB EMIRATES Tel: +9714 404 8787 Contact Name: Mr. Ayman Al Awadhi, CEO Email: ayman.alawadhi@cbs-uae.ae Business Activities: Business setup and company formation solutions; advice to large international corporates, small and medium-sized enterprises (SMEs) and entrepreneurs. efficiently.

GHS Global Hospitality Limited

10 Greycoat Place LONDON SW1P 1SB UK Tel: +44(0)20-3766 0074 Contact Name: Ms Claire Farrington, Partnership Manager Email: claire.farrington@g-h-s.com Business Activities: A hotel representation company with a portfolio of over 150 hotels in 100 destinations. We look after independent hotels and hotel chains ranging from resort hotels in the Maldives, to 12 luxury hotels in Dubai to boutique hotels in key city centres.

A1 VISA SERVICES LTD

Berkeley Square House 2nd Floor Berkeley Square LONDON W1J 6BD UK Tel: +44(0)796-000 1550 Contact Name: Mr Yeti Yetnayet Debalke, CEO Email: info@a1visaservices.com Business Activities: Visa services and documents

Safina Projects CIC

7 Empress Mews Kenbury Street LONDON SE5 9BT UK Tel: +44(0)7919038778 Contact: Mr Rashad Salim, CEO Email: rashad@safinaprojects.org Business Activities: Art and cultural research projects that explore the craft traditions of Iraq and ancient Mesopotamia, seeking to protect and revitalise an endangered heritage. Fieldwork. Working in partnership with universities and museums. Reconstruction of traditional and ancient Mesopotamian boats, documented through photography, video and oral history recordings, presented as an online museum, The Ark Re-imagined.

ICCGI International for Investment Plc

Suite 400 282 Harrow Road LONDON W2 5ES UK Tel: +44(0)7448 899 937 Contact Name: Dr Rafid Al Nawas, CEO Business Activities: Accountancy, audit and tax services

TASIS The American School In England

Coldharbour Lane EGHAM Surrey TW20 8TE UK Tel: +44(0)193-258 2316 Contact: Mr Simon Fitch, Director of Student Recruitment and Admissions Email: sfitch@tasisengland.org Business Activities: Co-educational, independent school educating over 600 day (ages 3-18) and boarding (ages 14-18) pupils located 18 miles southwest of London, and 8 miles from Heathrow; International Baccalaureate Diplomas and a broadbased American curriculum with Advanced Placement (AP) classes, which follow American College Board standards.

Hydro-C Ltd

126 Stanley Street Suite 4C GLASGOW Lanarkshire G41 1HJ UK Tel: +44(0)141-582 1213 Contact: Dr Hasan Heshmat, Directror Email: director@hydro-c.co.uk Business Activities: Oil & Gas procurement services

Northolt Training Consultancy Centre Ltd

18 Buttercup Close NORTHOLT Middlesex UB5 5TS UK Tel: +44(0)770-750 6065 Contact Name: Dr Khalil Al-Kanaani, CEO Email: alkanaani@hotmail.com Business Activities: Education and training consultancy

Hanza Global Limited

Sidikies 1 Sun Street LONDON EC2A 2EP UK Tel: +44(0)793-1278 439 Contact: Ms Carmen Hubble, Marketing Manager Email: carmen@ex1cosmetics.com Business Activities: Cosmetics retail

Oxford Medpharma Ltd

Eastfield Pyle Hill WOKING Surrey GU22 0SR UK Tel: +44(0)148-339 9006 Contact: Ms Sara Jane Sarkaz, Director Email: jane.sarkaz@oxfordmedpharma.com Business Activities: Pharmaceuticals

PLATINUM MEMBER

Dar Al Teeb Ltd

47-49 Park Royal Road LONDON NW10 7LQ +44(0)744-4111 777 aziz@daralteebkw.com Contact: Mr Abdulazeez Al Thefeeri, Director Business Activities: Perfumes are our passion. From our earliest memories of classic Arabic fragrances that remind us of our childhood or those delightful aromas, discovered on our travels around the world we, as the founders of Dar Alteeb are dedicated to providing our discerning customers with exceptional international quality perfumes, created to the highest international standards, and showcased in uniquely designed boutiques. We strive to expand and enrich the experiences of our customers through the development of new lines of perfumes, offering more choice and more quality than any other fragrance brand. We hope and are wholly confident that Dar Alteeb will become a key player in the international fragrance industry, bringing enjoyment to millions more customers.

CHANGE OF COMPANY DETAILS

Middle East Consultants

The Old Coach House Castle Eden Durham TS27 4SU Tel: +44 (0)1429 839247 Email: john.cartmell@achieveforum-middleeast.com www.achieveforum.com Management consultancy and leadership training

ARAB-BRITISH CHAMBER OF COMMERCE 061

Moving to the UK Just Got Easier BY THE ORGANISERS

FINDING A PROPERTY

Whether you are relocating for the long term, just visiting London for a few weeks in the summer or perhaps your child is moving to study at a British university, you are all in the same situation. How best to do this when you don’t know the area, you don’t know the suppliers and you want to recreate your lifestyle quickly and with the minimum of fuss?

Whether it is a new home or a temporary stay, The Organisers team are on hand to find a property to meet all of your requirements.

It is so difficult to know whom to trust, who will look after you with the attitude that no task is too small, and who will be your local ‘Fixer’ and make you feel at home straight away.

Once you have chosen, they advise and make the offer for you and ensure you have all the correct documentation and payments are made as needed.

The Organisers, a multiple award-winning company based in London, have moved countless families and individuals over the years and they know how to find you the best home and get everything in your new UK life running smoothly straight away.

For those coming longer term, finding the perfect education choice for your child can be difficult. Whether you want to send them to one of London’s high-performing day schools, install them in a suitable boarding school or even arrange home schooling with tutors, The Organisers can manage the entire process for you and will advise you every step of the way.

Their Property & Relocation division takes care of all the headaches, from finding you the right home in the right area, to arranging the driver to collect you from the airport. They meet you at the home, their HomeMaker service arranges all your unpacking and setting up of the house and before you know it, you feel just as if you have your own team around you. We asked a family who used their services what they were good at, and it seems the answer is … Everything! “I have been so impressed with The Organisers not once have you said no to me and you always deliver.” So, to make your relocation go smoothly this year, we thought it would be useful to set out some of the ways that The Organisers awardwinning services can help you and your family have a stress-free relocation this year.

They will check and shortlist all the homes and arrange viewings for you if you can come in advance; if you are not available to attend, the team will carry these out on your behalf and report back and talk through each property.

FINDING A SCHOOL

your clothes, you can walk into your new home with everything in the correct place. The team will even complete your food shopping and have dinner on the table for when you walk through the front door – now that is service! YOUR NEW UK LIFESTYLE If you are staying in London for a while you may need a nanny to help with the children or a housekeeper to keep your property to a high standard. The Organisers’ extensive database of candidates will provide the ideal person to keep your household as it should be. To help you adapt to your new home The Organisers will provide you with an area guide detailing the local area from the best shops, restaurants, transport options and health clinics. Once the house is sorted out and all the staff installed, let’s think about fun! You will want the family to experience all the exciting events and activities that the UK has to offer. The Organisers concierge division can arrange all your tickets and events for you to enjoy all the culture that you can.

Managing Director, Mrs Katie Shapley, knows just how challenging it can be to ensure you have the right option for your child. Consequently, she is pleased to offer an initial free-of-charge consultation to talk through the various options and make sure you are aware of how schooling works in the UK.

The Organisers have been members of the Arab-British Chamber of Commerce since 2014.

MAKE YOUR HOUSE A HOME

CONTACT

Whether you are wanting to import all your furniture or just some smaller items for your trip, The Organisers will assist with the logistics.

If you would like to chat through your move with Managing Director, Mrs Katie Shapley, and hear what you can expect from the UK, please do contact her on +44(0) 20 7078 7554 or team@theorganisers.com and have a noobligation conversation about the lifestyle there. www.theorganisers.com

They will not only arrange for the removal company to ship your items but will also unpack them into your new home. From making sure your bed is in the right place to hanging and colour coordinating

Our award-winning services can make all the difference to families coming over to the UK.

062 ECONOMIC FOCUS

Changes to the Taxation of UK Property for Offshore Investors BY KYRA MOTLEY PARTNER, BOODLE HATFIELD LLP Following a consultation released alongside the last Autumn Budget, on 6 July 2018 the UK government published draft legislation which will herald a significant change to the UK property tax regime for offshore investors. Under the current regime, non-resident individuals, trustees, partners and close companies (which are, broadly speaking, companies owned by five or fewer shareholders, together with their connected persons) are taxable to non-resident capital gains tax on gains made on disposals of UK residential property. Some corporate vehicles, both UK and non-UK resident, which own UK residential property and which

pay the Annual Tax on Enveloped Dwellings (ATED), pay ATED related CGT on any such gains. Otherwise, disposals of UK land by non-residents are generally exempt from UK gains taxes. Conversely, disposals of all land – whether it is situated in the UK or not; whether it is residential or commercial land; and whether disposed of directly or indirectly – by UK residents are subject to UK taxes. The government now wishes to “level the playing field” between UK residents and nonresidents and to this end, the proposals for expanding the UK’s tax base for disposals of UK property by non-residents on or after 6 April 2019 are as follows:

• Non-resident capital gains tax will be extended to cover disposals of all UK land, including commercial real estate; • Widely held companies will be within the scope of tax on disposals of both residential and commercial property, effectively bringing all corporate owners into the scope of tax on gains on all UK real estate; • All corporate owners disposing of UK land will be subject to corporation tax rather than capital gains tax. ATED related CGT will be abolished; and • Indirect disposals of UK land (e.g. a sale or gift of shares in a company) will attract a

ARAB-BRITISH CHAMBER OF COMMERCE 063 charge if a non-UK resident is disposing of an interest in a “property rich” vehicle, unless the land itself has been used for UK trading purposes.

be possible to make an election to use another calculation method if preferable. Professional advice should be taken this aspect of the rules.

INDIRECT DISPOSALS

Companies which now become UK resident will retain the ability to rebase at April 2019 in order not to disincentivise “on-shoring”. The retention of rebasing will not, however, apply to those chargeable to capital gains tax (i.e. individuals/trusts) who relocate to the UK.

An entity will be “property rich” if at least 75% of its gross asset market value is derived from UK land. The UK tax authority, Her Majesty’s Revenue and Customs (HMRC), will publish guidance in due course on the matters required to assess this test. Market value may be traced through any number of companies, partnerships, trusts or other entities or arrangements (whether UK or non-UK). The charge will only apply where the disposing owner holds more than a 25% investment (directly, or through a series of other entities) in the property rich vehicle at any time in the two years prior to disposal. In assessing whether this threshold is met, the interest of the person making the disposal is taken together with interests held by their connected persons, such as their spouse, their children, companies the persons control and trustees of any trust the person has established. It is not yet clear how these two thresholds will apply in practice, particularly where there is a chain of companies, each owning a variety of assets. The government will produce technical guidance on this later. Following responses received during the consultation process, there will be a trading exemption to these rules. The reaction from the industry was that, without such an exception, the reforms would operate unfairly towards real estate-based trades, such as the hotels and retail sector. The effect of this is that on a disposal of an interest in a property rich entity, which is trading both before and after the disposal, and the land in question is used in that trade, the rules on indirect disposals will not apply to any gain enjoyed. There is an anti-avoidance rule that applies to arrangements concerning indirect disposals entered into on or after 6 July 2018, where one of its purposes is to obtain a tax advantage as a result of the provisions concerning indirect disposals applying or not applying. If the rule applies, any tax advantage obtained will be counteracted. Therefore elaborate re-arrangements of ownership, for instance to try and ensure that the 75% property richness test and/or the 25% investment test are not met, will probably not produce a tax saving. There is clearly a grey area in how far auditing your affairs and making adjustments to minimise your tax exposure in the light of the changes will be caught by the rule. REBASING The impact of these new rules will not necessarily be felt immediately as assets will generally be rebased as at their market value on 6 April 2019. Alternatively, it may

COMPLIANCE At current rates, corporation tax on disposals by companies will be payable at 19%, and capital gains tax on other disposals at the maximum rates of 28% for residential property and 20% for commercial property. From April 2019 the deadline for filing and submitting payment will generally be 30 days from completion for all disposals of UK land, including indirect disposals, where the gain is taxable to capital gains tax. Nil returns may also need to be filed even if no actual gain is realised. For the 2019/20 tax year taxpayers disposing directly of UK residential property will, however, continue to be able to pay the tax by their usual self-assessment deadline. We are awaiting clarification of what the reporting and payment requirements will be for corporation tax purposes.

“Investors in UK land should think about undertaking an ‘audit’ of their property holding structures in light of the changes. We recommend that nonresident owners of UK residential or commercial property affected by the new rules should seek advice at the earliest available opportunity.”

Kyra Motley Partner, Private Client & Tax, Boodle Hatfield

It is worth noting that corporation tax will apply to gains from non-UK property businesses from April 2019 (under these rules) but to income of non-UK property businesses from April 2020 in accordance with separate rules also contained in the draft Finance Bill.

Shaima Jillood Partner, Residential Property, Boodle Hatfield

NEXT STEPS The legislation is still a work in progress and there are many details to be concluded. The draft provisions are open for consultation until 31 August and the Finance Bill 2019 will be officially published shortly after the 2018 Autumn Budget. However, even when the legislation is complete, there are likely to be various issues on which the interpretation and application to real-life scenarios remain unclear. To that end HMRC will be preparing detailed official guidance. In the meantime, investors in UK land should think about undertaking an ‘audit’ of their property holding structures in light of the changes. In particular: • Be aware of which entities are likely to be “property rich” or close to the threshold, and, subject to the aforementioned antiavoidance rule, consider whether any reorganisation might be possible; and • For properties with planning proposals, assess whether it is possible to trigger any planning related gains prior to April 2019, so as to benefit as far as possible from the tax base uplift.

Dennis Ko Partner, Commercial Property, Boodle Hatfield Boodle Hatfield LLP is a highly successful law firm which has been in business since 1722. The firm acts for wealthy individuals, families, property owners and businesses in the United Kingdom and internationally. We are proud to offer a genuinely full service to Middle Eastern clients, with Arabic speakers across our core practice areas. Our team are not only highly dedicated and commercially astute, they are also attuned to cultural and religious sensitivities and the applicable domestic legal and tax framework within which our clients operate. We would be happy to speak with anyone affected by the changes who needs advice, either in person at our London Mayfair office or by telephone for those in the region. Boodle Hatfield LLP is a member of the ABCC. www.boodlehatfield.com

064 ECONOMIC FOCUS

ISSN 2398-4406 ISSN 2398-4406

BCC BCCECONOMICS ECONOMICS BCC British ECONOMICS Economic

Survey

BRITISH CHAMBERS OF COMMERCE BRITISH CHAMBERS Key Finding Q2 2018 OF COMMERCE BRITISH CHAMBERS OF COMMERCE

ISSN 2398-4406

QUARTERLY ECONOMIC SURVEY Q2 2018 QUARTERLY ECONOMIC SURVEY Q2 2018 The British Chambers of Commerce (BCC) Quarterly Economic Survey – Britain’s largest and most QUARTERLY ECONOMIC SURVEY Q2firms 2018 The British Chambers of Commerce (BCC) –Quarterly Survey Britain’s largest and most the authoritative private sector business survey based onEconomic more than 6,000 –responses from across

authoritative private business surveyremain – based on more than 6,000 responses from and firms across in the UK – suggests that UKsector economic conditions sluggish, despite a modest improvement in most activity The British Chambers of Commerce (BCC) Quarterly Economic Survey – Britain’s largest UK – suggests that UK economic conditions remain sluggish, despite a modest improvement in activity in the second quarter of 2018. authoritative private sector business survey – based on more than 6,000 responses from firms across the the second quarter of 2018. UK – suggests UK economic conditions remain sluggish, despitetoa oil modest improvement in activity in Amid growing that international uncertainty, from escalating trade disputes price rises, the UK economy the second quarter of 2018. continues to grow at a sluggish rate. Brexitfrom is a key factor –trade but long-standing issues areeconomy also Amid growing international uncertainty, escalating disputes to oilstructural price rises, the UK

““ “

holding companies’ growth back. continues to grow at a sluggish rate. Brexit is a key factortrade – butdisputes long-standing structural issues also Amid growing international uncertainty, from escalating to oil price rises, the UKare economy holding companies’ growth back. continues to grow at on a sluggish rate.a Brexit a key factor – butthat long-standing structural issues are also Business needs clarity Brexit, and strongisdomestic agenda creates a ‘Brexit hedge’ as we navigate holding companies’ growth back.and turbulence over the next few years. Big,a bold action is needed for that the UK to buck the current Business needs clarity on Brexit, strong domestic agenda creates a ‘Brexit hedge’slow-growth as we navigate trend – with major new incentives for business confidence-boosting infrastructure and turbulence over clarity the next years. bold investment, action is needed for thecreates UK to buck the hedge’ currentprojects, slow-growth Business needs onfew Brexit, andBig, a strong domestic agenda that a ‘Brexit as we navigate a trend concerted effort to slash the up-front cost of doing business, which is putting consumer-facing businesses – with major new incentives for business investment, confidence-boosting infrastructure projects, and turbulence over the next few years. Big, bold action is needed for the UK to buck the current slow-growth especially under intense pressure. a concerted effort to slash the up-front cost of investment, doing business, which is putting consumer-facing businesses trend – with major new incentives for business confidence-boosting infrastructure projects, and especially under intense pressure. a concerted effort to slash the up-front cost of doing business, which is putting consumer-facing businesses

“ “ “

Dr Adam Marshall Director General, British Chambers of Commerce especially under intense pressure. Dr Adam Marshall Director General, British Chambers of Commerce

AT AT A A GLANCE GLANCE AT A GLANCE

Positive balance (+) = growth | Negative balance (-) = contraction

Domestic Sales Domestic Domestic Sales Sales

Dr Adam Marshall Director General, British Chambers of Commerce 0%

-25%

-25% -50%

+25%

-50%

-75%

-100% -75%

+50% +75% +75% +100%

+75%

...of manufacturers reported -100% improved domestic sales in Q2 +100% ...ofup manufacturers reported 2018, from +17% in Q1 2018 improved domestic sales in Q2+100% -100% ...of manufacturers reported 2018, up from +17% in Q1 2018 improved domestic sales in Q2 2018, up from 0% +17% in Q1 2018

-25%

-75%

+24% +24% +24%

-50%

-75% -100% -75%

-25%

-25% -50%

+50% +75%

-50%

-75%

-50%

-75% -100% -75%

-75%

+75%

-75%

+75%

-100% -75%

+25%

-25% -50%

+50%

+25%

+18% +18% +18%

+75% +100%

+75%

...of manufacturers reported an increase in their workforce in Q2 +100% -100% 2018, from Q1 2018 an ...of unchanged manufacturers reported increase in their workforce in Q2 +100% -100% ...of manufacturers reported an 2018, unchanged from Q1 2018 increase in their workforce in Q2 2018, unchanged from Q1 2018

40% 20% 0%

+50% +75%

20% 0% -20%

1.0% 1.5% 0.5% 0.5% 1.0% 0.0% 0.0% 0.5% -0.5%

Balance of firms reporting improved export sales

+25%

40% 50%

Balance of firms reporting improved export sales

+25%

30% 40% 50%

0% +25%

+50%

20% 30% 40%

+50%

10% 20% 30%

+50% +75%

0%10% 20%

-10% 0% 10% +75% +100%

+25%

Balance of firms that grew their workforce

30% 40%

+25% 0% +50%

+25%

+14% +14% +14%

-20% -10% 0% QES % Balance -30% -20% -10% 2006 QES % 2008 2010 2012 2014 2016 2018 Balance Manufacturing Sector QES Service Sector QES -30% -20% 2006 2010 2012 2014 2016 2018 QES % 2008 Service Sector QES -30% Balance Manufacturing Sector QES Balance of firms2008 that grew2010 their workforce 2006 2012 2014 2016 2018 40% Manufacturing Sector QES Service Sector QES

+75%

-25% -50%

+50%

+50% +75%

+50%

1.0%1.5%

+75%

+15% +15% +15%

-25%

20%

+50%

...of service firms reported -100% improved export sales in Q2 2018, +100% ...of service up from +13%firms in Q1 reported 2018 improved export sales in Q2 2018, +100% -100% ...of firms upservice from +13% in reported Q1 2018 improved export sales in Q2 2018, 0% up from +13% in Q1 2018

-25% -50%

...of manufacturers reported -100% improved export sales in Q2 2018,+100% ...of manufacturers reported down from +30% in Q1 2018 improved export sales in Q2 2018, +100% -100% ...of manufacturers down from +30% inreported Q1 2018 improved export sales in Q2 2018, down from0% +30% in Q1 2018 -25%

+25%

-50%

+50%

+100%

+25% 0%

1.5%

-0.5% 0.0% -1.0% 0% -20% -40% -1.0% -0.5% -1.5% GDP % QES % +100% -100% -75% +75% -20% Growth (ONS) -40% ...of service firms reported -1.5% -1.0% -60% Balance -2.0% GDP % -100% improved domestic sales in Q2 +100% 2006QES % 2008 2010 2012 2014 2016Growth2018 (ONS) Balance -40% ...of service firms reported -60%GDP Growth -2.0% 2018, up from +20% in Q1 2018 -1.5% Service Sector QES Manufacturing QES % QES % 2008 improved domestic sales in Q2+100% -100% 2006 2010 2012 2014 2016 GDP 2018 Growth (ONS) ...of up service 2018, fromfirms +20%reported in Q1 2018 -2.0% GDP Growth Service Sector QES Manufacturing QES -60% Balance improved domestic sales in Q2 2006 2008 2010 2012 export 2014 2018 Balance of firms reporting improved sales 2016 2018, up from 50% GDP Growth Service Sector QES Manufacturing QES 0% +20% in Q1 2018 -25%

+25%

+23% +23% +23%

-75%

+25%

+50%

improved domestic sales UK GDP growth and QES balance of firms reporting 60% improved domestic sales 40% UK GDP growth and QES balance of firms reporting 60% improved domestic sales 40% 60%

-25%

-50%

+25%

-25% -50%

-75%

-50%

-25%

-50%

+50%

+22% +22% +22%

-50%

+50%

Positive balance = growth Negative balance (-) = contraction UK GDP (+) growth and QES |balance of firms reporting

-25%

Employment Growth Export Sales Employment Employment Growth Growth Export Export Sales Sales

Positive balance (+) = growth | Negative balance (-) = contraction

+50%

Balance of firms that grew their workforce 20% 30% 40% 10% 20% 30% 0% 10% 20%

-10% 0% 10% -20% -10% 0% -75% +75% -30% -20% -10% QES % +100% -100% -40% -75% +75% -30% Balance ...of service firms reported an -20% -50% increase in their workforce in Q2 +100% -100% -40% QES % 2006 2008 2010 2012 2014 2016 2018 -30% Balance 2018, from +12% Q1 2018 an ...ofup service firmsin reported Manufacturing Sector QES Service Sector QES -50% increase in their workforce in Q2 +100% -100% -40% QES % 2006 2008 2010 2012 2014 2016 2018 Balance ...of service firms reported an 2018, up from +12% in Q1 2018 Manufacturing Sector QES Service Sector QES -50% increase in their workforce in Q2 2006 2008 2010 2012 2014 2016 2018 2018, up from +12% in Q1 2018 Manufacturing Sector QES Service Sector QES

-75%

-50%

+50% +75%

www.britishchambers.org.uk | @britishchambers

ARAB-BRITISH CHAMBER OF COMMERCE 065

BRITISH CHAMBERS OF COMMERCE BRITISH CHAMBERS OF COMMERCE BRITISH CHAMBERS OF COMMERCE

LOOKING LOOKING AHEAD AHEAD LOOKING AHEAD BRITISH CHAMBERS OF COMMERCE LOOKING AHEAD

The Quarterly Economic Survey (QES) examines business sentiment on a range of forward looking indicators, including The Quarterly Economic Surveyconfidence, (QES) examines business sentiment a range of forward looking indicators, including investment intentions, turnover and prices. In Q2 2018, a on number of these indicators point to a subdued investment intentions, turnover confidence, and prices. In Q2 2018, a number of these indicators point to a subdued outlook. A smaller proportion of firms revised investment upwards compared to Q1, and the proportion of businesses The Quarterly Economic Survey (QES) examines business sentiment on a range of forward looking indicators, including outlook. Athat smaller ofconfidence, firms revised investment upwards compared to Q1, and thedifficulties proportion ofa businesses confident theirproportion turnover will increase over the next In 12 Q2 months eased.of Recruitment continues to be a investment intentions, turnover and prices. 2018,also a number these indicators point to subdued confident that their turnover will increase over the next 12 months also eased. Recruitment difficulties continues to be a concern for businesses, and while the proportion expecting output prices to rise has fallen, it is still high bybusinesses historical levels. outlook. A smaller proportion of firms revised investment upwards compared to Q1, and the proportion of concern for businesses, and while the proportion expecting outputalso prices to rise has fallen, looking itdifficulties is still indicators, high by historical levels. The Quarterly Economic Survey examines business oneased. a range of forward including confident that their turnover will(QES) increase over the next 12 sentiment months Recruitment continues to be a Firms facingindicators pressures to point raise prices to investment confidence, and prices. In Q2output 2018, aprices number of these toby a due subdued concern for intentions, businesses,turnover and while the proportion expecting to rise has fallen, it is still high historical levels. the following factors: to raise prices due to 0% 0% facing pressures outlook. A smaller proportion of firms revised investment upwards comparedFirms to Q1, and the proportion Manufacturing of businesses Sector the following factors: +25% +25% -25% 0% -25% 0% Firms facing pressures to raise prices due to to confident that their turnover will increase over the next 12 months also eased. Recruitment difficulties continues be a Manufacturing Sector Service Sector +25% +25% -25% -25% 65% factors: 0% concern for businesses,0%and while the proportion expecting output prices to the risefollowing has fallen, it is still highManufacturing by historical Service Sector Sectorlevels. -50%

+25%

-25%

-50% -50% -25%

Employment Employment Employment Expectations Expectations Expectations Expectations Confidence Confidence Confidence ConfidenceEmployment Investment Investment Investment Investment Prices Prices Prices Prices

-75%

+31% +31% +31% 0%

-75% -50% -75% -100%

+50%

-50%

+50%

-50%

+50% +25%

-75%

+75%

-75%

+50% +75% +100%

...of manufacturers expect their+100% prices to increase, down fromtheir +41% ...of manufacturers expect in Q1 2018 +100% -100% -75% prices to increase, down from +41% +75% ...of manufacturers expect their in Q1 2018 prices to increase, down from +41% in Q1 2018 -100%

+31% 0%

-100%

-50%

-25%

-75%

+19% +19% +19% 0%

-50%

-75% -50% -75% -100%

+25%

+50%

-50%

+50%

-50%

+50%

-50%

+75%

-75%

+75%

-75%

+19%

+100%

...of manufacturers increased +25% -25% 0% investment in training in Q2 2018, down +25% -25% from +22% 0%in Q1 2018 -50%

+25%

-25%

-50%

-25%

-75%

+29% +29% +29% 0%

-50%

-75% -50% -75% -100%

+25%

-50% -50%

+50%

-50%

+75%

-75%

+75%

-75%

+29% 0%

+100%

-25% 0% ...of manufacturers expect to+25% grow their workforce over the next three months, +25% -25% 0% down from +30% in Q1 2018 -50%

+25%

-25%

-50% -50% -25%

-75% -75% -50% -75% -100%

+47% +47% +47% 0%

-75%

+75%

-75%

+100%

+75% +50% +75% +100%

+100%

+50% +50%

+40% +40% +40% 0%

-25%

-50% -75% -100%

+25%

-25%

-50%

+75%

...of manufacturers are confident turnover will increase in the next 12 months, down from +48% in Q1 2018

+75%

+25% -25% 0% ...of service firms expect to grow their workforce over the next three months, +25% -25% 0% up from +22% in Q1 2018

-50%

+50% +75% +100%

+50%

+23%

-100%

+50% +25%

+75% +75% +50% +75% +100%

...of service firms are confident +100% -100% turnover will increase the next 12 ...of service firms areinconfident months, down from +42% in Q1 2018 -100% turnover will increase in the next+100% 12 +75% -75% ...of service confident months, down firms from are +42% in Q1 2018 turnover will increase in the next 12 months, down from +42% in Q1 2018

+40%

-100%

17%

38% 37% 15% 14% 38% 37% Other overheads Other overheads Other overheads

+100%

...of service firms are confident turnover will increase in the next 12 months, down from +42% in Q1 2018

Pay settlements

Raw materials Financial costs

Other overheads

20% 30% 10% 50%

10% 20% 0% 40% 0% 10% -10% 30%

+50% +25%

20%

Balance of firms increasing investment in training

-10% 0% -20% 20%

...of service firms expect to grow their +100% -100% workforce the next three months, ...of serviceover firms expect to grow their up from +22% in Q1 2018months, +100% -100% workforce over the next three -75% +75% ...of service firms expect to grow up from +22% in Q1 2018 their workforce over the next three months, up from +22% in Q1 2018

-50%

+47%

-100%

-50% -75% -100%

+50%

...of manufacturers are confident +100% -100% turnover will increase in confident the next 12 ...of manufacturers are months, down from +48% in Q1 2018 -100% turnover will increase in the next+100% 12 +75% -75% ...of manufacturers are confident months, down from +48% in Q1 2018 turnover will increase in the next 12 months, down from +48% in Q1 2018

+23% +23% +23%

30% 40% 20%

+75%

+50% 0%

17%

15% 14% 20% Pay17% Raw materials Financial costs 15% 14% settlements Pay Raw materials Financial costs settlements Balance22% ofPay firms increasing investment in training 20% Raw materials Financial costs 17% 50% 15% 14% Balancesettlements of firms increasing investment in training 22%

+50% +75% +100%

+100%

+25%

-25%

+50%

+50% +25%

+75%

...of service firms increased investment +25% -25% 0% in training in Q2 2018, down from +18% +25% -25% in Q1 0%2018

+50%

+50% +75% +100%

+50%

+16% 0%

20%

50%

...of service firms increased investment +100% -100% in training Q2 2018, downinvestment from +18% ...of serviceinfirms increased in Q1 2018 -100% in training in Q2 2018, down from +100% +18% -75% +75% ...of service firms increased investment in Q1 2018 in training in Q2 2018, down from +18% in Q1 2018 -100%

22%

40% 50% 30%

+50% +25%

38% 37% Service Sector

65% 22%

40% Balance of firms increasing investment in training

+50%

-50% -75% -100%

+50%

...of manufacturers expect to grow their +100% -100% workforce over theexpect next three months, ...of manufacturers to grow their downover fromthe +30% inthree Q1 2018 +100% -100% workforce next months, -75% +75% ...of manufacturers expect to grow down from +30% in Q1 2018 their workforce over the next three months, down from +30% in Q1 2018 -100%

+100%

+25%

+16% +16% +16%

38% Manufacturing Sector 37%

+50% +75% +100%

-25%

Service Sector 65% to raise prices Firms facing pressures due to the following factors:

+75%

-25%

65%

+75%

...of service firms expect+25% their -25% 0% prices to increase, down from +31% +25% -25% in Q10%2018

+50% +75% +100%

+50% +25%

+27%

-100%

...of manufacturers increased +100% -100% investment in training in increased Q2 2018, down ...of manufacturers from +22% in Q1 2018 +100% -100% investment in training in Q2 2018, down -75% +75% ...of manufacturers from +22% in Q1increased 2018 investment in training in Q2 2018, down from +22% in Q1 2018 -100%

+27% +27% +27%

...of service firms expect their+100% prices to increase, down from +31% ...of service firms expect their in Q1 2018 +100% -100% -75% prices to increase, down from +31% +75% ...of service expect their in firms Q1 2018 prices to increase, down from +31% in Q1 2018 -100%

+100%

+25%

-25%

-50% -75% -100%

...of -25% manufacturers expect+25% their 0% prices to increase, down from +41% +25% -25% in Q10% 2018

-50%

+50% +50%

-50%

+75%

+25%

-25%

QES % -20% -10% Balance -30% 10% QES % 2006 2010 2012 2014 2016 Balance 2008 -30% -20% Service Sector QES QES % Manufacturing Sector QES 0%2006 2008 2010 2012 2014 2016 -30% Balance Manufacturing Sector QES Service Sector QES -10% 2006 2008 2010 2012 2014 2016 Balance of firms expecting to grow their workforce Manufacturing Sector QES Service Sector QES -20% 50% Balance of%firms expecting to grow their workforce QES 50% Balance 40% -30%

Balance of firms expecting to grow their workforce 2006 2008 2010 2012 2014 2016

2018 2018 2018

2018

40% 30% 50%

Manufacturing Sector QES Service Sector QES 30% 20% 40% 20% 10% 30% Balance of firms expecting to grow their workforce 10% 0% 50% 20% 0% -10% 40% 10% -10% -20% 30% 0% -20% -30% 20% -10% QES % -30% -40% 10% -20% Balance QES % -40% -50% 0% -30% Balance 2006 2008 2010 2012 2014 2016 -50% -10% QES % Manufacturing Sector QES -40% Service Sector QES 2006 2010 2012 2014 2016 Balance 2008 -20% -50% Manufacturing Sector QES Service Sector QES 2006 2008 2010 2012 2014 2016 -30% UK GDP growth and QESSector balance confident Manufacturing QESof firms Service Sector QES 80% QES % their turnover will increase -40% UK GDP growth and QES balance of firms confident Balance 80% their turnover will increase -50% 60%

UK GDP and QES balance of firms2014 confident 2006 growth 2008 2010 2012 2016 60% 80% their turnover will QES increase Service Sector QES 40% Manufacturing Sector 40% 60% 20%

2018 2018 2018 1.5% 1.5% 1.0% 2018 1.5% 1.0% 0.5% 1.0% 0.5% 0.0%

UK GDP growth and QES balance of firms confident 20% 40% 0% 80% their turnover will increase

0% 20% -20% 60% -20% 0% -40% 40% -40% -20% -60% QES % 20% Balance -60% -40% -80% QES % 0%2006 2008 Balance -80% QES % -60% GDP Growth 2008 -20%2006 Balance -80% GDP Growth 2006 2008 -40% GDP Growth -60% QES % Balance -80% 2006 2008

0.5% 0.0% 1.5% -0.5% 0.0% -0.5% 1.0% -1.0%

GDP % Growth (ONS) GDP % 2010 2012 2014 2016 2018 Growth (ONS) % Service Sector QES 2010 2012QES 2014Manufacturing 2016 GDP 2018 Growth (ONS) Service Sector QES Manufacturing QES 2010 2012 2014 2016 2018 Service Sector QES

2010

2012

Manufacturing QES GDP % Growth (ONS) 2014

2016

2018

-0.5% -1.0% 0.5% -1.5% -1.0% -1.5% 0.0% -2.0% -1.5% -2.0% -0.5% -2.0% -1.0% -1.5% -2.0%

GDP Growth Service Sector QES Manufacturing QES www.britishchambers.org.uk | @britishchambers www.britishchambers.org.uk | @britishchambers

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066 ECONOMIC FOCUS

BRITISH CHAMBERS OF COMMERCE BRITISH CHAMBERS OF COMMERCE BRITISH CHAMBERS OF COMMERCE In Q2 2018, the balance of service planning to increase investment in training stood at +16%, down BRITISH CHAMBERS OFfirms COMMERCE

SERVICE SERVICE SECTOR SECTOR TRAINING TRAINING INVESTMENT INVESTMENT In Q2+18% 2018,in the ofB2C service firmsfirms, planning to increase investment training stood SERVICE SECTOR INVESTMENT from Q1balance 2018. For service theTRAINING balance stood at +8%, ain fall from +18% in at Q1+16%, 2018. down The from +18% in Q1 2018. For B2C service firms, the balance stood at +8%, a fall from +18% in Q1 2018. The heat map below shows the breakdown of this indicator for the service sector as a whole by UK nation SERVICE SECTOR TRAINING INVESTMENT In Q2 2018, the balance of service planning to increase investment in training stood at +16%, down BRITISH CHAMBERS OFfirms COMMERCE heat map below shows the breakdown of this indicator for the service sector as a whole by UK nation and region: from +18% Q1balance 2018. For service the balance stood at +8%, a in falltraining from +18% in at Q1+16%, 2018. down The In Q2 2018,inthe ofB2C service firmsfirms, planning to increase investment stood and region: heat map below shows the breakdown of this indicator for the service sector as a whole by UK nation from +18% in Q1 2018. For B2C service firms, theTRAINING balance stood at +8%, a fallINVESTMENT from +18% in Q1 2018. The SERVICE SECTOR and heatregion: map below shows the breakdown of this indicator for the service sector as a whole by UK nation In Q2 2018, the balance of service firms planning to increase investment in training stood at +16%, down and region: from +18% in Q1 2018. For B2C service firms, the balance stood at +8%, a fall from +18% in Q1 2018. The heat map below shows the breakdown of this indicator for the service sector as a whole by UK nation Scotland North East and region:

+20% Scotland +20% Scotland +20% +20% Scotland +20% Scotland

North West North West

+12% +12% +12% Yorks & Humber +12% Yorks & Humber North East Yorks &+16% Humber +16% +12% Yorks &+16% Humber +16% Yorks & Humber +16% East Midlands East Midlands +27% East+27% Midlands East+27% Midlands +27% East Midlands East of +27% East of

North East

North East North East

+21% North West +21% North West +21% +21% North West +21% Northern Ire Northern Ire +12% Northern +12% Ire Northern Ire +12% +12% Northern Ire +12% Wales Wales England +23% England East of Wales +23% +23% East of England +23% Wales +23% England +23% +23% East of London Wales +23% LondonEngland West Midlands +8% West Midlands +23% London +8% +18% +23% West Midlands +18% London +8% West Midlands South West South East +18% +8% South West South East London +18% +10% +21% West Midlands South West South East +10% +21% +8% South West South East +18% +10% +21% +10% +21% South West South East The regions and nations which saw the largest percentage balance of service sector firms +10% +21% The regions and nations which saw the largest percentage balance of service sector firms reporting increased investment for training were the East Midlands (+27%), and Wales and the

reporting increased investment forThe training were East Midlands (+27%), and Wales and the East of England at +23%). regions andthe nations which saw the fewest service The regions and (both nations which saw the largest percentage balance of service sector firms firms East of England (both at +23%). The regions and nations which saw the fewest service firms reporting increased investment investment for intentions were London the South and West (+10%), and reporting increased training were the East (+8%), Midlands (+27%), Wales andfirms the The regions and nations which saw the largest percentage balance of service sector reporting increased investment intentions were London (+8%), the South West (+10%), and Northern Ireland and the North East (both at +12%). East of England (both at +23%).for The regions andthe nations which saw the fewest service firms reporting increased investment training were East Midlands (+27%), and Wales and the Northern Ireland and the North East (both at +12%). reporting increased investment were West service (+10%),firms and East of England (both at +23%).intentions The regions andLondon nations(+8%), which the sawSouth the fewest The regions andand nations whichEast saw(both the at largest percentage balance of service sector firms Northern the North +12%). reporting Ireland increased investment intentions were London (+8%), the South West (+10%), and reporting increased investment for training were the East Midlands (+27%), and Wales and the Northern Ireland and the North East (both at +12%). East of England (both at +23%). The regions and nations which saw the fewest service firms reporting increased investment intentions were London (+8%), the South West (+10%), and www.britishchambers.org.uk | @britishchambers Northern Ireland and the North East (both at +12%). www.britishchambers.org.uk | @britishchambers www.britishchambers.org.uk | @britishchambers www.britishchambers.org.uk | @britishchambers

ARAB-BRITISH CHAMBER OF COMMERCE 067

BRITISH CHAMBERS OF COMMERCE BRITISH CHAMBERS OF COMMERCE BRITISH CHAMBERS OF COMMERCE BRITISH CHAMBERS OF COMMERCE

ABOUT THE QES ABOUT THE QES ABOUT THE QES BRITISH CHAMBERS COMMERCE ABOUT THE OF QES ABOUT THE QES

The Quarterly Economic Survey is the flagship economic Methodology The Quarterly Economic is theofflagship economic survey from the British Survey Chambers Commerce. It is Methodology QES results are generally presented as balance figures The Quarterly Economic is the survey from tool the British Chambers offlagship Commerce. It is a prominent used toSurvey measure the state ofeconomic business Methodology QES results are of generally presented asan balance figures the percentage firms that reported increase minus The Quarterly Economic Survey is the flagship economic survey from the British Chambers of Commerce. It is a prominent tool used to measure the state of business sentiment and is monitored by a range of national and Methodology QES results are generally presented as balance figures the percentage of firms that reported an increase minus that reported a decrease. If the figure isa prominent tool used toChambers measure the state of business survey fromand the of Commerce. Itand is sentiment is British monitored by a range of national international organisations, including the Bank of England, the percentage of firms that reported increase minus QES results are generally presented asan balance figures that reported a activity decrease. If the figure isa plus it indicates expansion of and if the figure sentiment and is European monitored by isa the range of national and aThe prominent tool used toSurvey measure the state of business international organisations, including the Bank ofeconomic England, Quarterly Economic flagship HM Treasury, and Commission. Methodology the percentage that reported a decrease. If the figure is the percentage of firms that reported an increase minus a plus it indicates expansion of activity and if the figure is a minus it indicates contraction of activity. A figure international including the Bank of England, sentiment andorganisations, is European monitored by a range of national and HM Treasury, and Commission. survey from the British Chambers of Commerce. It is a plus it indicates expansion of activity and if the figure the percentage that reported a decrease. If the figure isis a minus it indicates contraction of activity. A figure QES results are generally presented as balance figures above 0 indicates growth, while a figure below 0 indicates Treasury, and European Commission. international including the Bank offrom England, aHM prominent tool used tomade measure state business The BCC Q2organisations, 2018 QES is up ofthe responses more is a minus it indicates contraction of activity. A figure a plus it indicates expansion of activity and if the figure above 0 indicates growth, while a figure below 0 indicates the percentage of firms that reported an increase minus contraction. The BCC Q2 2018 QES is made up of responses from more HM Treasury, andisEuropean Commission. sentiment monitored by UK. a range national and than 6,000and businesses across the Firms of were questioned above 0 indicates growth, while a of figure below indicates a minus it indicates contraction activity. A0figure contraction. the percentage that reported a decrease. If the is The BCC Q2 2018 QES is made ofFirms responses from more is than 6,000 businesses across theup UK. were questioned between 21 May 2018 and 11 including June 2018. In the manufacturing international organisations, the Bank of England, For example, if 50% of firms told us their sales grew and 18% contraction. above 0 indicates growth, while a figure below 0 indicates a plus it expansion of activity and if the figure than 6,000 businesses across the UK. Firms were questioned between 21 May 2018 and 11 June 2018. In the manufacturing The BCC Q2 2018 QES is made up of responses from more sector, 1,605and firms responded, employing approximately HM Treasury, European Commission. For if 50% ofthe firms told usfor their grewwould and 18% saidexample, they decreased balance thesales quarter be contraction. is a minus it indicates contraction oftheir activity. A figure between 21businesses May 2018 and 11 June 2018. In the manufacturing sector, 1,605 firms employing approximately than 6,000 across the UK. Firms were questioned 172,000 people. 65%responded, (1,043) of manufacturing respondents For example, if 50% ofthe firms told usfor grew and 18% said they decreased balance thesales quarter would be +32% (an expansion). above 0 indicates growth,balance while a figure below 0 indicates sector, 1,605 firms responded, employing approximately 172,000 people. 65% (1,043) of up manufacturing respondents between 21 2018 and 11 June 2018. In the manufacturing The BCC Q2May 2018 QES is services made of responses from more were exporters. In the sector, 4,432 businesses said they decreased thesales quarter would be +32% (an expansion). For example, if 50% ofthe firms told usfor their grew and 18% contraction. 172,000 people. 65% (1,043) of manufacturing respondents were exporters. In responded, the services sector, 4,432 businesses sector, 1,605 firms employing approximately than 6,000 businesses across the UK. Firms were questioned responded, employing approximately 702,000 people. Of said +32% (an expansion). they decreased the balance for 33% the quarter would be If 32% told us their sales grew and said they fell the were exporters. In participants, the services sector, 4,432 businesses responded, employing people. Of +32% 172,000 people. 65% (1,043) of manufacturing respondents between 21 May 2018 andapproximately 11 June 2018. In702,000 the manufacturing the services sector 37% (1,633) were exporters. If 32% told us their sales grew 33%sales saidgrew they and fell 18% the (an expansion). balance would be -1% (a contraction). For example, if 50% of firms told and us their responded, approximately 702,000 people. Of the services sector (1,633) were exporters. were exporters. In participants, the services 37% sector, 4,432 businesses If 32% told us be their grew and said they fell the sector, 1,605employing firms responded, employing approximately balance would -1%sales (a contraction). said they decreased the balance for33% the quarter would be the services sector participants, 37% (1,633) were exporters. responded, employing approximately 702,000respondents people. Of balance would be -1%sales (a contraction). 172,000 people. 65% (1,043) of manufacturing If 32% told us their grew and 33% said they fell the +32% (an expansion). This report has been prepared by the British Chambers of Commerce. Further information about the services participants, 37% (1,633) were exporters. were exporters. theprepared services sector, 4,432 businesses balance would be -1% (a contraction). This report has In been by the British of Commerce. Further information about any of the sector region and nation surveys may be Chambers obtained from the following: responded, approximately people. from Of any of the employing region andprepared nation surveys may be Chambers obtained the following: This report has been by the702,000 British of Commerce. Further information If 32% told us their sales grew and 33% said they fell the National South Eastabout East Midlands the services participants, 37% (1,633) were exporters. any of the sector region and nation surveys may beChambers obtained from the following: National Eastabout East Midlands balance would be information -1%South (a contraction). Coordinator: David Bharier Coordinator: David Bharier (BCC); Coordinator: Chris Hobson This report has been prepared by the British of Commerce. Further National South East David East Midlands Coordinator: Davidand Bharier Coordinator: Bharier (BCC); Coordinator: Chris any of the region nation surveys mayChris.Hobson@emc-dnl.co.uk be obtained fromHobson the following: d.bharier@britishchambers.org.uk Contributing Chambers: Coordinator: David Coordinator: David Bharier (BCC); Coordinator: d.bharier@britishchambers.org.uk Contributing Chambers: Chris.Hobson@emc-dnl.co.uk National South Eastabout East Midlands British Chambers ofBharier Commerce, Kent Invicta, Hampshire, Surrey, Sussex, East MidlandsChris Chamber (Derbyshire, This report has been prepared by the British Chambers of Hobson Commerce. Further information d.bharier@britishchambers.org.uk Contributing Chambers: Chris.Hobson@emc-dnl.co.uk British Chambers of Commerce, Kent Surrey, East Midlands Chamber 65 Petty France, SW1Hsurveys 9EU may Isle ofInvicta, Wight,Hampshire, MiltonBharier Keynes and Sussex, Coordinator: DavidLondon Bharier Coordinator: David (BCC); Nottinghamshire &Hobson Leicestershire) Coordinator: Chris any of the region and nation be obtained from the (Derbyshire, following: British Chambers of Commerce, Kent Hampshire, Surrey, East Midlands Chamber (Derbyshire, 65 Petty France, SW1H 9EU Isle ofInvicta, Wight, Milton Keynes and Sussex, Nottinghamshire & Leicestershire) (020 7654 5800)London Thames Valley (0116Midlands 204 6606): d.bharier@britishchambers.org.uk Contributing Chambers: Chris.Hobson@emc-dnl.co.uk National East South East 65 Petty France, London SW1H 9EU Isle of Wight, Milton Keynes and Sussex, Nottinghamshire & Leicestershire) (020 7654 5800) Thames Valley (0116 204 6606): Contributing Chambers: Derbyshire, British Chambers ofBharier Commerce, Kent Invicta, Hampshire, Surrey, East MidlandsChris Chamber (Derbyshire, Coordinator: David Coordinator: Hobson Coordinator: David Bharier (BCC); (020 7654 5800) Thames Valley (0116 204 6606): Contributing Chambers: Derbyshire, Scotland South West Chambers: Nottinghamshire && Leicestershire) Leicestershire, 65 Petty France, London SW1H 9EU Isle of Wight, Milton Keynes and Nottinghamshire d.bharier@britishchambers.org.uk Chris.Hobson@emc-dnl.co.uk Contributing Contributing Chambers: Derbyshire, Scotland South West Nottinghamshire & Leicestershire, Coordinator: Shane Taylor Coordinator: David Bharier (BCC); Northamptonshire, Lincolnshire, (020 7654 5800) Thames Valley (0116 204 6606): British Chambers of Commerce, East Midlands Chamber (Derbyshire, Kent Invicta, Hampshire, Surrey, Sussex, Scotland South West David Nottinghamshire & Leicestershire) Leicestershire, Coordinator: Shane Taylor Coordinator: Northamptonshire, Lincolnshire, staylor@scottishchambers.org.uk Contributing Chambers: Contributing Chambers: Derbyshire, 65 Petty France, London SW1H 9EU Nottinghamshire & Isle of Wight, MiltonBharier Keynes(BCC); and Coordinator: Shane of Taylor Coordinator: David Bharier (BCC); Northamptonshire, Lincolnshire, staylor@scottishchambers.org.uk Contributing Chambers: Scottish Chambers Commerce Business West, Dorset, Cornwall, West Midlands Scotland South West Nottinghamshire (020 7654 5800) (0116 204 6606): & Leicestershire, Thames Valley staylor@scottishchambers.org.uk Contributing Chambers: Scottish of Commerce Business West, Dorset, Cornwall, West Midlands (0141 204Chambers 8337) Somerset, and Devon Coordinator: Thomas Byrne Coordinator: Shane Taylor Coordinator: David Bharier (BCC); Northamptonshire, Lincolnshire, Contributing Chambers: Derbyshire, Scottish Chambers of Commerce Business West, Dorset, Cornwall, West Midlands (0141 204 8337) Somerset, and Devon Coordinator: Thomas Byrne thomasbyrne@blackcountrychamber.co.uk staylor@scottishchambers.org.uk Contributing Chambers: Scotland Nottinghamshire & Leicestershire, South West (0141 8337) of Commerce Somerset, and Devon Coordinator: Thomas Byrne thomasbyrne@blackcountrychamber.co.uk Black Country Chamber of Commerce North204 East London Scottish Chambers Business West, Dorset, Cornwall, West Midlands Coordinator: Shane Taylor Northamptonshire, Lincolnshire, Coordinator: David Bharier (BCC); thomasbyrne@blackcountrychamber.co.uk Black Country Chamber of Commerce North East London (01902 912319): Coordinator: Jonathan Walker Coordinator: Thomas (0141 204 8337) Somerset, and Devon Wagemaakers Coordinator: Thomas Byrne staylor@scottishchambers.org.uk Contributing Chambers: Black Country Chamber of Commerce North East Jonathan Walker London (01902 912319): Coordinator: Coordinator: Thomas Wagemaakers Contributing Chambers: Coventry & Jonathan.Walker@neechamber.co.uk twagemaakers@londonchamber.co.uk thomasbyrne@blackcountrychamber.co.uk Scottish Chambers of Commerce Business West, Dorset, Cornwall, West Midlands (01902 912319): Coordinator: Jonathan Walker Coordinator: Thomas Wagemaakers Contributing Chambers: Coventry & Jonathan.Walker@neechamber.co.uk twagemaakers@londonchamber.co.uk Warwickshire, Birmingham, Black North East England Chamber of London Chamber Of Commerce and Black CountryThomas Chamber of Commerce North East London (0141 204 8337) Coordinator: Byrne Somerset, and Devon Contributing Chambers: Coventry Jonathan.Walker@neechamber.co.uk twagemaakers@londonchamber.co.uk Warwickshire, Birmingham, Black & North East England Chamber London Of4444) Commerce and Country, Staffordshire, Shropshire, Commerce (0191 3861133) IndustryChamber (020Thomas 7248 (01902 912319): Coordinator: Jonathan Walker of Coordinator: Wagemaakers thomasbyrne@blackcountrychamber.co.uk Warwickshire, Birmingham, Black North East England Chamber of London Chamber Of Commerce and Country, Staffordshire, Shropshire, Commerce (0191 3861133) Industry (020 7248 4444) Herefordshire & Worcestershire Contributing Chambers: Coventry & Jonathan.Walker@neechamber.co.uk twagemaakers@londonchamber.co.uk Black Country Chamber of Commerce North East London Country, Staffordshire, Shropshire, Commerce (0191 3861133) Industry (020 7248 4444) Herefordshire & Worcestershire North West Northern Ireland Warwickshire, North East England Chamber London Chamber Of Commerce and (01902 912319):Birmingham, Black Coordinator: Jonathan Walkerof Coordinator: Thomas Wagemaakers Herefordshire & Worcestershire North West Northern Ireland Wales Coordinator: Alex Davies Coordinator: Christopher Country, Staffordshire, Shropshire, Commerce (0191 3861133) Industry (020 7248 4444)Morrow Contributing Chambers: Coventry & Jonathan.Walker@neechamber.co.uk twagemaakers@londonchamber.co.uk North West Alex Davies Northern Ireland Wales Coordinator: Coordinator: Christopher Morrow Coordinator: Elgan Morgan Black Alex.davies@gmchamber.co.uk Christopher.Morrow@ Herefordshire &Birmingham, Worcestershire Warwickshire, North East England Chamber of London Chamber Of Commerce and Wales Coordinator: Alex Davies Coordinator: Christopher Morrow Coordinator: Elgan Morgan Alex.davies@gmchamber.co.uk Christopher.Morrow@ Elgan.Morgan@southwaleschamber.co.uk Greater Manchester Chamber northernirelandchamber.com North West Northern Ireland Country, Staffordshire, Shropshire, Commerce (0191 3861133) Industry (020 7248 4444) Coordinator: Elgan Morgan Alex.davies@gmchamber.co.uk Christopher.Morrow@ Elgan.Morgan@southwaleschamber.co.uk Greater Manchester Chamber northernirelandchamber.com South Wales Chamber of Commerce of Commerce (0161 237 4045): Northern Ireland ChamberMorrow of Wales Coordinator: Alex Davies Coordinator: Christopher Herefordshire & Worcestershire Elgan.Morgan@southwaleschamber.co.uk Greater Manchester Chamber northernirelandchamber.com South Wales Chamber of Commerce of Commerce (0161 237 4045): Northern Ireland Chamber (01633 242721); Contributing Commerce (028 9024 4113)of Coordinator: Elgan Morgan Alex.davies@gmchamber.co.uk Christopher.Morrow@ North West Chambers: St Helens, Northern Ireland South Chamber ofSouth Commerce of Commerce (0161West 237 4045): Northern Ireland Chamber (01633Wales 242721); Contributing Chambers: St Helens, Commerce (028 9024 4113)of Contributing Chambers: Wales, Liverpool, North Lancashire, Elgan.Morgan@southwaleschamber.co.uk Greater Manchester Chamber northernirelandchamber.com Wales Coordinator: Alex &Davies Coordinator: Christopher Morrow (01633 242721); Contributing Chambers: Helens, Commerce (028 9024 4113) Contributing Chambers: South Wales, Liverpool, North & West St Lancashire, West Cheshire and North Wales East Lancashire, Greater Manchester, South Wales Chamber of Commerce of Commerce (0161 237 4045): Northern Ireland Chamber of Coordinator: Elgan Morgan Alex.davies@gmchamber.co.uk Christopher.Morrow@ Contributing Chambers: Liverpool, NorthCheshire, & West Lancashire, West Cheshire and NorthSouth WalesWales, East Lancashire, Greater Manchester, Cumbria, South (01633 242721); Contributing Chambers: St Wirral Helens, Commerce (028 9024 4113) Elgan.Morgan@southwaleschamber.co.uk Greater Manchester Chamber northernirelandchamber.com Westof Cheshire and North Wales East Lancashire, Greater Manchester, Cumbria, South Cheshire, Wirral East England Contributing Chambers: Wales, Liverpool, North & West Lancashire, South Wales Chamber ofSouth Commerce of Commerce (0161 237 4045): Northern Ireland Chamber of Cumbria, South Cheshire, Wirral East of England Coordinator: David Bharier (BCC); Yorkshire & the HumberSt West Cheshire and North Wales East Lancashire, Greater Manchester, (01633 242721); Contributing Chambers: Helens, Commerce (028 9024 4113) East of England Coordinator: David Bharier (BCC); Yorkshire & the Humber Contributing Chambers: Bedfordshire, Coordinator: David Bharier (BCC); Cumbria, Wirral Contributing Chambers: South Wales, Liverpool,South NorthCheshire, & West Lancashire, Coordinator: David Bharier (BCC); Yorkshire & the Humber Contributing Chambers: Bedfordshire, Coordinator: David Bharier (BCC);& Cambridgeshire, Essex, Hertfordshire, Contributing Chambers: Barnsley East England Westof Cheshire and North Wales East Lancashire, Greater Manchester, Contributing Chambers: Bedfordshire, Coordinator: David Bharier (BCC); Cambridgeshire, Essex, Hertfordshire, Contributing Chambers: Barnsley & Norfolk and Suffolk Rotherham, Doncaster, Sheffield, Hull & Coordinator: David Bharier (BCC); Yorkshire & the Humber Cumbria, South Cheshire, Wirral Cambridgeshire, Essex, Hertfordshire, Contributing Chambers: Barnsley Hull & & Norfolk and Suffolk Rotherham, Doncaster, Sheffield, Humber, West & North Yorkshire, Contributing Chambers: Bedfordshire, Coordinator: David Bharier (BCC); and East of England Norfolk and Suffolk Rotherham, Doncaster, Sheffield, Hull Humber, West & North Yorkshire, and & Mid Yorkshire Cambridgeshire, Essex, Hertfordshire, Contributing Chambers: Coordinator: David Bharier (BCC); Yorkshire & the HumberBarnsley & Humber, West & North Yorkshire, and Mid Yorkshire Norfolk and Suffolk Rotherham, Sheffield, Contributing Chambers: Bedfordshire, Coordinator:Doncaster, David Bharier (BCC);Hull & Mid Yorkshire Humber, WestChambers: & North Yorkshire, Cambridgeshire, Essex, Hertfordshire, Contributing Barnsley and & Mid YorkshireDoncaster, Sheffield, Hull & Norfolk and Suffolk Rotherham, Humber, West & North Yorkshire, and www.britishchambers.org.uk | @britishchambers Mid Yorkshire www.britishchambers.org.uk | @britishchambers www.britishchambers.org.uk | @britishchambers