Economic Focus 2

ECONOMIC FOCUS

ISSUE 2 VOL 7 AUTUMN 2012 MAGAZINE OF THE ARAB-BRITISH CHAMBER OF COMMERCE

The Shard

> REPORTS IN ENGLISH AND ARABIC

> SOCIAL MEDIA AS A BUSINESS TOOL

> FOCUS INTERVIEW

> SETTING UP BUSINESS IN QATAR

> RELOCATING TO THE UK

> CHAMBER ACTIVITIES

> LIBYA OPPORTUNITIES

> GCC HEALTH SECTOR INNOVATION

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Celebrating 30 years in business

Badley Ashton and Associates Limited was established in 1982 as a high quality geoscience consultancy, providing specialist reservoir description and prediction advice to the oil and gas industry worldwide. Thirty years on, our emphasis on quality remains the same today, with a progressive ethos always informed by continuous scientific excellence.

Badley Ashton’s business in the Middle East and North Africa continues to grow and we are delighted to be a new member of the Arab-British Chamber of Commerce.

Offices located in the UK, Abu Dhabi, Muscat and Houston. www.badley-ashton.co.uk

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ARAB-BRITISH CHAMBER OF COMMERCE

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Economic Focus is an Arab-British Chamber of Commerce publication.

Editorial Team Abdeslam El-Idrissi 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

Production & Design Distinctive Publishing 6th Floor Aidan House Sunderland Road Gateshead NE8 3HU

CONTENTS Focus Reports Setting Up Business in Qatar

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Social Media as a Business Tool

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How the GCC Can Lead Innovations in Health Research and Services

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Relocating to the UK

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Opportunity Libya

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Focus Interview: A Lawyer Who Never Looks Back

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ewan.waterhouse@distinctivepublishing.co.uk

Quarterly Economic Survey

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Disclaimer

Chamber News

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New Members

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Arabic Section

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Tel: 0845 884 2385 www.distinctivepublishing.co.uk Arabic pages designed by Andrew Smith www.bellow-creative.com

Advertising Distinctive Publishing Tel: 0845 884 2340

Distinctive Publishing or Arab-British Chamber of Commerce cannot be held responsible for any inaccuracies that may occur, individual products or services advertised or late entries.

No part of this publication may be reproduced or scanned without prior written permission of the publishers and Arab-British Chamber of Commerce.

ISSN No: ISSN 1751-4339

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ECONOMIC FOCUS

SETTING UP A BUSINESS IN QATAR

As currently the fastest growing economy in the world, Qatar is becoming a top overseas destination for UK businesses to set up shop.

As currently the fastest growing economy in the world, Qatar is becoming a top overseas destination for UK businesses to set up shop.

According to the International Monetary Fund, Qatar is now also the world’s richest nation.

With its pro-business environment, rapidly growing economy and close relations with the UK, Qatar presents especially attractive opportunities for British businesses wanting to supplement their home markets.

After completing major gas projects, Qatar has recorded consistent double-digit GDP over the past decade. In 2010, the Gulf country’s growth shot up 16.3 per cent and real GDP in 2011 reached 14 per cent, according to the Qatar Statistics Authority. With plans to develop $140 billion worth of major projects in the lead up to the 2022 FIFA World Cup, Qatar presents a myriad of investment prospects for UK companies looking to capitalise on lucrative opportunities.

Qatar’s economic diversification and investment in human capital, in accordance with its National Vision 2030 economic strategy, is also helping to generate opportunities for UK businesses across a wide range of sectors including construction, energy and environment, transport, infrastructure, education, training, as well as financial and professional services.

So the time is certainly right to set up a

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5. Unincorporated joint venture; 6. Shareholding companies, also known as joint stock companies (public of private); 7. One proprietorship company (single-person company); 8. Holding company.

Limited Liability Company

By Wayne Merrick

As the UK economy enters a double dip recession, it is no secret the country is feeling the pinch. Youth unemployment is at a record high of almost one million – three per cent higher than during the same period in 2011 – and there is a bleak growth outlook for UK companies. With little growth prospects and opportunities for development at home, UK companies are increasingly looking to expand abroad into high growth markets.

4. Limited partnership with shares;

business in Qatar. However, in order to have a successful business in the country, there are some important steps and factors to be considered before establishing a proper market presence.

If you are looking to have full access to the Qatari market and enjoy the freedom to work on an unlimited amount of projects, then the best option would be to incorporate a limited liability company (LLC). As a more flexible and long-term option, having an LLC allows you to remain independent and complete an unlimited number of projects.

Under an LLC you are required to appoint a local partner that holds a minimum of 51 per cent of the corporation’s shares. Finding the right local partner – be it an individual or a company – is critical to the success of any business. With years of experience, The Links Group, for example, can act as a local corporate partner, providing you with advice and inside tips to best fit your business needs from the beginning.

l Incorporating a local entity under the

LLCs are popular among foreign investors as they require a relatively small amount of capital and can be established reasonably quickly. The minimum paid up capital requirement is QR200,000 (£35,332), which is rather appealing for anyone looking to set up a business. The amount of shareholders in an LLC must be two at minimum and a maximum of 50 – another appealing feature for foreign investors. You are allowed to set up an LLC in almost all sectors except banking, insurance and investment fund activities.

l Obtaining a license for a branch office or

Single-Person Company

The most important decision you will need to take when kick-starting your business plan is choosing the kind of legal presence you will set up in Qatar. In order to conduct business on a regular basis, foreign investors are required to establish a legal commercial presence on the ground. Currently, there are several options that companies can choose from:

Commercial Companies Law; trade representative office;

l Entering into a commercial agency

relationship;

l Setting up a free-zone entity within the

Qatar Science and Technology Park (QSTP);

l Incorporating or registering with the

Qatar Financial Centre (QFC).

It is important to note that not all of these options allow you to trade freely, and ownership requirements for Qatar-based entities differ between each structure. It is therefore paramount to seek advice from company formation specialists to ensure that your business is established correctly from the outset.

Under the Commercial Companies Law, there are eight types of legal entity structures you can set up in Qatar: 1. Limited Liability Company (LLC); 2. General partnership; 3. Simple limited partnership;

Another type of company you can set up in Qatar is a single-person company. The Qatari government has identified ‘priority sectors’ in which foreign investors are allowed to own more than 49 per cent and up to 100 per cent of a single-person company. These 12 priority sectors are: agriculture; business consulting; cultural projects; development and exploitation of natural resources; distribution services; energy and mining; health; industry; information technology; sports and leisure services; technical services; and tourism.

Like an LLC, a one-person business requires a minimum start-up capital of QR200,000.

While the shareholder of the capital manages the company, they are also permitted to appoint one or more managers to represent the company in business transactions. A single-person company is dissolved upon the death of the shareholder, unless the shares of the heirs are held by one person or their heirs decide to continue the company by restructuring it into another kind of entity.

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ARAB-BRITISH CHAMBER OF COMMERCE

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Simple Limited Partnership The third kind of local business you can set up is a simple limited partnership, which can be formed by two or more Qatari nationals.

These individuals are personally and equally responsible for the company’s liabilities. This structure does not have a minimum capital requirement.

General Partnership A general partnership is a local entity made up of two types of partners: joint partners and trustee partners. The latter are those who contribute to the company’s capital without being responsible for its liabilities, except to the value of their shares in the capital. Trustee partners are not permitted to be involved in the management of the organisation. Joint partners are empowered to direct the affairs of the business and are held responsible for the company’s liabilities.

Similar to an LLC, this setup requires a Qatari partner possessing a minimum of 51 per cent of the capital – however, unlike an LLC, there is no capital requirement.

Limited Partnership with Shares The fifth type of company under the Commercial Companies Law is a limited partnership with shares. This structure is formed by two groups; joint partners – made up of one or more partners, who are personally liable for any company debts; and trustee partners – comprising a minimum of four shareholders, whose liability is limited to the value of shares held in the capital. The capital requirement is high compared to LLC and single-person structures, coming in at QR1,000,000 (£177,169). It is important to note that joint partners must be Qatari nationals, whereas for trustee partners, Qatari nationals must hold a minimum share of 51 per cent.

Unincorporated Joint Venture Dissimilar to a limited partnership company, an unincorporated joint venture (JV) does not require a minimum capital to set up. Two or more people can form a joint venture, where the allocation of liability between JVs is set forth in the company memorandum. Since a joint venture is not a separate legal entity, third parties only have the right of action against individuals in this type of entity. Like most of the structures, an unincorporated joint venture must have a local partner hold at least 51 per cent of the capital.

Joint-Stock Company – public or private A joint-stock company, be it public or private, must have a minimum of five shareholders

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ECONOMIC FOCUS

where the foreign investors cannot own more than 25 per cent of the company between them. The minimum capital requirement must be sufficient to accomplish the organisation’s objectives; for a public jointstock company capital cannot be less than QR10m and QR2m (£349,072) for a private joint-stock.

Holding Company The eighth type of company that can be set up under the Commercial Companies Law is a holding company, which can be incorporated as a joint-stock, LLC, or a single-person entity. This entity financially and administratively controls one or more companies. As the parent company, the holding company is required to hold at least 51 per cent of the shares in each company under its umbrella. These entities can be joint-stock, LLCs or one-person companies.

A holding company’s total capital cannot fall below QR10,000,000 (£1,745,364).

Under the Commercial Companies Law, there are other options available to you too. For example, if you as a foreign investor would like to enter the market with a large-scale enterprise, you can do so under a Qatari Shareholding Company (QSC). A QSC is also used for investment projects, insurance and banking companies, established by a Ministerial Resolution issued by the Minister of Business and Trade, between at least five shareholders. This type of entity’s capital is divided into transferable shares of equal value, where the shareholders are not liable for the company’s obligations, except with the amount of nominal value of the shares for which they subscribe.

The Companies Law recognises three variants of a QSC: a public QSC, whose shares can be traded on the Qatar Exchange (QE) with a minimum capital requirement of QR 10m (£1,745,364); private or closed QSC, with a capital of no less than QR 2m (£349,072); and a QSC incorporated under Article 68 of the Companies Law. An Article 68 Company is a QSC set up either by the Qatari government, other public corporation or authorities in which the government holds at least 51 per cent of the share capital – either alone or with one or more local or foreign shareholders.

This kind of entity is subject to the provisions of the Commercial Companies Law, and includes the same registration steps and requirements as a QSC or an LLC. It is common for Article 68 companies to be used as joint venture vehicles for large government sponsored projects, especially in infrastructure and the oil and gas sectors.

While the Qatari government has set specific ownership requirements for the above companies, the Ministry of Business and Trade has recently softened its position on local ownership of foreign companies by identifying priority sectors (explained above).

Acknowledging the importance of attaining foreign expertise to achieve Qatar’s National Vision 2030, the government also provides other

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ownership structure options for foreign investors to maintain 100 per cent of their business.

Foreign investors can set up a trade representative office, a branch office or appoint a commercial agency – all of which are not regulated by the Companies Law. Establishing a foreign branch requires approval from the Ministry of Business and Trade. A company looking to establish a foreign branch must award a contract with the Qatari government or a quasi-governmental entity that would facilitate the performance of a public utility or service; however, it does not require a local partner. Foreign branches are subject to the Qatari income tax law, unless they receive special exemption.

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ARAB-BRITISH CHAMBER OF COMMERCE

Similar to a foreign branch, a representative trade office (RTO) is an exception to the investment rule of Qatar. The RTO acts as a platform to introduce and promote its parent company in Qatar. It is important to note that RTOs cannot conduct financial transactions related to its parent company’s commercial activities in Qatar, and its activities are limited to marketing and administrative functions. In essence, RTOs are ‘shop windows’ to source business for its parent company. The remaining options are incorporating your business into the financial and technology zones – the Qatar Financial Centre (QFC) and the Qatar Science and Technology Park (QSTP).

Currently, all financial service institutions

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must be registered and regulated by the QFC. Within the QFC’s jurisdiction, foreign entities retain 100 per cent ownership of their businesses. Investors are allowed to fully own their business in the QSTP as well – the only other free zone in the country.

Taxation Under the 2009 Income Tax Law No. 21, Qatar imposes a flat rate of 10 per cent on taxable income to corporations. Qatari and GCC companies are exempt from this tax; however, foreign investors in Qatari LLCs are subject to this tax on their distribution of profits.

Companies without a permanent presence in Qatar are subject to a withholding tax of five

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ECONOMIC FOCUS

per cent of the gross amount of royalties and technical fees, or seven per cent of the gross amount of interest, commissions, directors’ fees, brokerage fees, attendance fees and any other payments for services carried out in Qatar.

A tax exemption can be granted for a period of up to six years for major projects, pending approval from Ministry of Economy and Finance.

Probably the best news for UK and other expatriates working in Qatar is that their salaries are not taxable. This is definitely a great incentive for UK nationals to seek employment in Qatar.

Labour and Immigration Laws Qatar has a population of just 1.87 million, 80 per cent of whom are expatriates. All foreigners must be sponsored by their employers, who are responsible for them as long as their contracts are valid. The implementation of the labour law is heavily connected with the immigration law. The only employees excluded from the application of the labour law are those employed by ministries, public institutions or bodies that are subject to specific employment regulations, such as employees of Qatar Petroleum or the QFC. In order to obtain the desired number of employment visas, foreign companies must apply for a labour quota. Companies should disclose the number of visas required, nationality, gender, and professional title of each employee it plans to sponsor. It is worth noting the Qatari government’s plan of Qatarisation – an initiative to increase the proportion of nationals in the public and private sectors. This gives employment preference to locals over foreign workers.

Such employment restrictions can be frustrating for foreign companies, especially the restrictions on entry and exit visas imposed on expatriates.

This is definitely where experience and connections of a local corporate partner can really help you to get things done efficiently.

Complete thorough due diligence and find out what relationships your local partner has with relevant government entities to better understand just how much they can help you.

Ultimately, having a presence on the ground in Qatar rather than working from abroad reaps many benefits for your business. Establishing a legal and physical presence such as an LLC, will not only give you the freedom to participate in an unlimited amount of projects, but it will give you an advantage over international companies bidding from abroad for local projects, as your business will be viewed as a serious, reliable, and trustworthy organisation that is committed to contributing to the growth of the Qatari market. This in itself will gain you respect among your local industry peers, and in the long-term, it will win you more business.

Wayne Merrick is the General Manager in Qatar for The Links Group of Companies

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Photo Credit The photographs of Qatar that accompany this article are taken from the book Qatar: Sand, Sea and Sky published by Bright Sky Press. The images were taken by Henry Dallal.

A man who has managed to pursue two successful careers, Dallal is a financial advisor and property consultant as well as a prominent photographer. He works as a senior consultant with London based real estate investment and private equity group, Evans Randall, a member company of the Arab British Chamber of Commerce.

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ARAB-BRITISH CHAMBER OF COMMERCE

SOCIAL MEDIA AS A BUSINESS TOOL

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Mark Flanagan (MF): Since the rise of social media – even just over the last three or four years – you can’t just make your big corporate announcements two or three times a year and then disengage. Because the danger is that other people, competitors, opponents or, indeed, customers will fi ll the void. Do you want your case to be presented?

Or do you want to leave a vacuum?

JL: One of the things we discuss quite a bit with our clients is the relationship between social media and search. If lots of people are talking about you and your brand on social networks, that affects search and will help make sure that your site shows up on the front page of Google. And if you’re not on the front page of Google, you’re nowhere.

How should big companies and organisations use social media? Two of the UK’s leading experts in the use of digital communications discuss the best way for corporations to embrace the online world.

Why should companies get on social media?

Jimmy Leach (JL): Looking at it from a different angle, the question is ‘What happens if you don’t?’ Everyone is going on Twitter and most reputational crises now will begin on Twitter.

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If you’re not on social media, you’re dislocated from your markets. And if you’re dislocated, you’re not part of the conversation. And if you’re not part of the conversation you can’t infl uence your own reputation because you’re subject to other people’s opinions of your corporation.

What are the risks of being on Twitter and social media?

JL: Doing it badly is always a risk. But it’s the same with any kind of communication. If you misjudge the tone – if you misjudge your reaction to any given situation, then you’ve got a problem.

If you demonstrate your lack of understanding of these tools by the way you use them – only using them for broadcast, not for conversation; tweeting nine times on one day, not tweeting again for two weeks and then tweeting nine times again – it obviously refl ects badly on you and your company.

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ECONOMIC FOCUS

MF: You’ve got to add value in some way.

There are people on Twitter who just retweet or tweet links to articles and don’t do anything else – and that’s fine to an extent if you’re acting as a newsfeed but to never add any comment or insight of your own, from a corporate point of view that’s not going to win you any followers. And you’ll soon lose the followers that you have built up.

culture. At the moment, we’re conducting some research into how key influencers across the Middle East are engaging with each other on Twitter and we’ll be publishing our results in the next few months.

What do you think are the barriers to companies using social media?

MF: We also often hear the argument, “I’m too busy”. But some of the most active and high profile people on social networks are also some of the busiest – heads of state, business people. It’s something you can build naturally into your day. The worst thing you can do is try to handle social media in a bureaucratic way. There are lots of companies where it takes ten days to clear a tweet and that’s clearly not going to work.

JL: One of the early mistakes that a lot of organisations make is to think that social media – and Twitter in particular – is just for the youth. In fact, Twitter’s figures show an average age of 39 – about ten years older than Facebook’s users.

So how can a company use social media? What roles can it fulfil?

MF: Actually, in many of the advanced markets, Twitter certainly started as the province of media and the political elite. It’s only in the second half of its life that it became much more ubiquitous and mainstream.

JL: It’s important that you don’t take a one size fits all approach to social media and understand how each channel is used in different markets. We’ve done a lot of work researching how Twitter is deployed in various parts of the world and there are big differences depending on technology, connectivity and

JL: Along with making announcements and releasing reports, one of social media’s best uses is to promote your best people. Make your organisation a repository of expertise rather than just a corporation. Those people then become spokespeople for their industry, making them the go-to people for the press.

But these people need to know what they’re doing and that’s where things like training and social media guidance come into it.

MF: Press office and customer service functions are also getting more popular

on platforms like Twitter. Twitter is fundamentally about conversations so it lends itself to this kind of work. For major corporates and big brands, Twitter is more and more often the choice for dealing directly with customers. I don’t think it will ever replace call centres and face-to-face contact but it’s perfect for quick questions, basic information and linking back to the website or an FAQ page.

Where does a company start if it wants to build its presence online?

MF: The first place to start is always running some sort of audit. Audit your own channels, your own sites – and those of competitors – before you start setting up Twitter accounts and Facebook pages.

Many companies are very focused on tactics and don’t necessarily take the time to think about audiences, which channels are appropriate, what content is appropriate for Facebook versus Twitter, and how you organise yourself internally to run these channels.

What companies really need to do is to step back and look at what their overall business and communications objectives are in the first place. You need a solid strategy. You need to know where your audiences are and what you want to achieve before you start

Mark Flanagan (front), Jimmy Leach (behind) and colleagues.

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out. If you don’t do this, you shouldn’t be entering social media.

JL: And once the channels are set up, you have to work to build your followers, build your audience. Because if you leave it until you have a crisis, you’re shouting into an echo chamber – nobody’s listening. You can’t suddenly decide when it suits you to communicate – you’re constantly on.

How do you make sure that social media is used properly once the channels are set up?

MF: Embedding it in the organisation is extremely important. You need to integrate it into your wider business, and certainly into all your communications. There’s been a good move away from seeing social media as a bolt on and having the intern in the corner tweeting for the company. Companies are now expecting senior people to be able to use these tools.

There’s no silver bullet for creating a digital-friendly culture. You have to attack it from different angles. Is the company willing to have two-way conversations with its audiences? Are the people at the top, the people at the bottom and everyone in between willing to get on board? You have

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ARAB-BRITISH CHAMBER OF COMMERCE

to open people’s eyes to how the world is changing, then give them the training and support they need to get involved. Let people try it out and see what works.

Is any particular network better for corporations?

MF: It’s still mainly about Twitter and Facebook. Twitter is the fastest growing but Facebook is still dominant. Twitter has been one of the main outlets for corporations but organisations are starting to see the benefit of being on Facebook as well.

JL: Facebook can be a strong corporate tool. It’s all about content – links, photos and videos. One of the biggest mistakes that corporations make is thinking that Twitter and Facebook are the same, just repeating their tweets on the Facebook page. In its most basic terms, Twitter is better for conversations and commentary, and Facebook is better for content.

Finally, the big question - is social media here to stay?

JL: Social media is basically just a reflection of the fundamental need to connect. The need for human beings to connect with other human beings isn’t going anywhere

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anytime soon – it’s just a question of how those connections take shape.

On LinkedIn, it’s about business connections. On Facebook, it may be more about friendships and sharing content. On Twitter, it’s conversations. It’s a question of where it’s going to take us as opposed to how long it will be with us.

MF: Of course, the genie is out of the bottle and the question for all business people and leaders is how you utilise social media not whether to use it in the first place.

Mark Flanagan, is a Digital Partner with Portland, a strategic communications consultancy based in London. He previously served as Head of Strategic Communications at 10 Downing Street.

Jimmy Leach is a Senior Adviser with the company. He previously served as Head of Digital Diplomacy at the Foreign Commonwealth Office where he ran its global 40-language, 250-site web platform and was responsible for the FCO’s distinctive social media presence, including a growing number of blogging Ministers and Ambassadors around the world.

Portland is a strategic communications consultancy which advises a range of corporate, NGOs and Government clients around the world on their digital and social media strategies. The company is a member of the Arab British Chamber of Commerce.

10/10/12 13:46:52

ECONOMIC FOCUS ADVERTORIAL

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Manage your foreign exchange exposure with expert advice from our currency exchange specialists.

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Omnis FX prides itself on its individually tailored advisory service. Once your designated business consultant has discussed and evaluated your business’s foreign exchange requirements, they can regularly update you with relevant market news and industry forecasts.

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A forward contract allows an exchange rate to be fixed for delivery up to 24 months. This protects the business from future adverse currency movements. Forward contracts are ideal for companies who agree sales prices in

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Fix competitive exchange rates to hedge future currency risk.

These are the two common types of market order used in currency risk management: Stop Loss Order – Enables a business to set a minimum rate at which the desired currencies are exchanged. Stop loss orders are used by businesses to lock in a worst case exchange rate, whilst still benefiting from any favourable currency movement.

Stop orders can be monitored closely and amended as the market moves.

Limit Order – Enables a business to set a target exchange rate at which point, if reached, currency will be purchased. A limit order is used by businesses that regularly transfer funds, and wish to capitalise on currency movements.

Combining Orders In order to effectively manage currency exposure, a stop order is often combined with a limit order to produce a range with an upper and lower currency level. This allows a company to make its currency transactions more predictable as the exchange rate is guaranteed to be within these parameters.

Optimisation of this strategy requires flexibility. The order levels are monitored constantly and in conjunction with client input amended when necessary.

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ARAB-BRITISH CHAMBER OF COMMERCE

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ECONOMIC FOCUS

HOW THE GCC CAN LEAD INNOVATIONS IN HEALTH RESEARCH AND SERVICES

By Jane Pittaway and Bleddyn Rees

The Arab World generally and the GCC in particular spend a fortune each year on healthcare.

In common with the rest of the world, health budgets have had to keep increasing just to keep pace with technology, new drugs and populations with high burdens of chronic disease such as diabetes. Traditionally, a large part of their healthcare budgets has been spent abroad, including in the UK, under their International Patient Care programmes.

With non-communicable diseases (NCDs) and chronic illness already a greater challenge than infectious diseases, health authorities across the Gulf region are looking at pioneering and innovative ways to improve the health of their populations in a cost-effective fashion.

Methods of doing so vary from monitoring, managing long-term conditions and prevention through to developing the healthcare provision available in the GCC including, for example, through the establishment of healthcare cities in free zones which normally offer 100% foreign ownership.

The establishment of healthcare cities represents an opportunity for British healthcare businesses in particular – they can establish facilities in a healthcare city in the GCC and thereby replace lost income in the UK with income generated in the Gulf.

NHS entities are looking to globalise their business and the GCC represents an important and immediate opportunity to do this given the historic trading links between Britain and the Arab region. This involves both research and development as well as clinical services.

However, the true paradigm shift may come from the GCC.

One response to the challenge By way of an example, let’s take a closer look at the response of the Health Authority Abu Dhabi (HAAD).

According to HAAD statistics report for 2010, the Emirate has high rates of chronic diseases related to lifestyle such as obesity, diabetes and cardiovascular diseases. These latter accounted for more than a quarter of deaths in 2010.

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In response, HAAD has developed a unique total population screening and intervention programme named ‘Weqaya’.

The Weqaya model combines individual screening with individual, group and populationlevel planning and action. The delivery of Weqaya interventions is through two streams: the healthcare sector; and health guardians such as employers and schools. Its success relies on the delivery of both healthcare and societal responses in a coordinated manner.

To date, more than 95% of the adult Emirati population have been screened and a Personal Health Report is delivered to each participant.

The report provides an evidence-based assessment of the risk of that individual suffering a heart attack or stroke within the next ten years. All screened individuals were required to provide their informed consent when they were screened, which also included consent to the confidential use of data for research and follow up, including disease management programmes.

The results from the Weqaya screening demonstrated a very high burden of cardiovascular risk factors in the Abu Dhabi Emirati population. They confirmed international data suggesting that the UAE has the world’s second highest rate of diabetes, and added detail of high rates of obesity and pre-diabetes.

Individuals thought to be at high risk of cardiovascular disease are then seen by doctors as required. Participants will now be monitored on a regular basis to determine the effectiveness of the programme – which helps drive continuous improvement and innovation (for example, HAAD has partnered with AstraZeneca and Lilly on patient education and the better use of drugs).

Bahrain’s Health Promotion Council and Oman’s Nizwa Healthy Lifestyle Project (NHLP) are similarly working on programmes to address NCDs. Interestingly, these initiatives and in particular the Weqaya whole population screening programme and data disease management

programme opportunities in the region will contribute to the global development of disease management and the methodologies employed here will be exported around the world. The GCC can lead the way in innovation in the management of long-term conditions and NCDs.

e-Health/m-Health As a further development, a Memorandum of Understanding was signed by Etisalat, the leading telecoms provider in the UAE and HAAD, setting-out a pioneering collaboration between the two organisations.

Under the memorandum, Etisalat and HAAD will share ideas, expertise and know-how to design and implement targeted applications to deliver secure, confidential, accurate Weqaya personalised health data and information to patients across Abu Dhabi. They will provide specific, individual advice for living a healthier life.

The collaboration will also work towards designing and implementing disease management programmes for the population at risk to effectively help prevent cardiovascular diseases, the nation’s number one cause of morbidity and mortality.

Commenting on the strategic alliance, Mr Jamal Al Nuaimi said: “It is critical for telecom leaders to harness the benefits that mobile technology can bring to healthcare, in both sociological and economic terms. Our collaboration with HAAD will progressively aim to build on each other’s skills in analyzing and interpreting the Weqaya data, and eventually design and implement a holistic patient support programme, which will encompass proactive patient reminders, disease information sharing, patient awareness and medical education solutions through innovative m-Health and e-Health applications.”

According to H E Eng Zaid Al Siksek, CEO of HAAD, HAAD is endeavouring “to develop innovative m-Health and e-Health solutions towards enabling preventive care and proactive disease management. HAAD aims to create a well-knit and integrated Patient Care ecosystem that combines critical elements such as patient education, healthcare support systems and timely healthcare delivery.

Many international bodies are keen to see how the processes in Abu Dhabi can be used as

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examples of global best practice. Emerging and relatively unconstrained health markets such as Abu Dhabi offer tremendous opportunities for innovation that can be adopted by older, often more constrained markets such as the UK and US.

What is e-Health/ m-Health?

The World Health Organisation has adopted the following broad definition of e-Health: “The overarching term for the range of tools based on information and communication technologies used to assist and enhance the prevention, diagnosis, treatment, monitoring and management of health and lifestyle”. m-Health was defined at the Foundation for the National Institutes of Health’s 2010 m-Health Summit as “the delivery of healthcare services via mobile communication devices”.

It is much more than using mobile phones for the delivery of healthcare services. It involves the combining of products and services from device manufacturers, telecommunications companies and software producers with some healthcare aspect to provide increased services for: Health professionals (such as mobile devices for doctors/nurses, for example, scanners and mobile access to health information and clinical system); Health management (through data collection, tele-assessment and remote monitoring); Prevention and well-being education and awareness, personal emergency alarms and tracking).

So, who is interested in e-Health? Those interested in e-Health/m-Health include: l Healthcare & social care providers l Healthcare & social care commissioners l Regulators l Software/IT businesses l Device manufacturers l Telecommunication companies

It is staggering to think that 76% of the Fortune 500 companies are now involved in the health industry in one way or another. The market for e-Health is huge.

ARAB-BRITISH CHAMBER OF COMMERCE

Underlining the significance of these legal and regulatory issues, our Head of Healthcare, Bleddyn Rees, has been appointed a nonexecutive director of Europe’s largest connected health organisation, European Connected Health (ECH) Alliance. This is a new body, dedicated to supporting and promoting the adoption of e-Health solutions.

One of the alliance’s major focus areas is setting up 'ecosystems' - large populations of people into which e-Health solutions can be rolled out. The first of these is already underway in Manchester and Bleddyn is one of four board members helping to set it up. Once in place it will join up health, social care and housing services providers to deliver co-ordinated and innovative services to Manchester’s 3.4 million people. This will give us a unique insight into the issues and enable us to actively participate in identifying and implementing the solutions.

The legal issues these technological advances raise include: Is an e-Health/m-Health service or product a clinical service? If so what type of licences should the provider hold?

Does an e-Health/m-Health service or product constitute a medical device? If so, to what extent with the regulatory bodies which are concerned with the manufacture, distribution and licensing of medical devices need to approve it?

What additional protections should be put in place in relation to patient consent for data transmitted electronically?

How is any relevant clinical information incorporated into the patient’s records?

Who owns such data/clinical records? As this information is becoming increasingly valuable, the answer to this question becomes increasingly important.

There is a complex fragmented regulatory market for e-Health in Europe. The European Union is planning this year material changes to the Data Protection Directive (officially Directive 95/46/EC on the protection of individuals with regard to the processing of personal data and on the free movement of such data) as it approaches its 20th anniversary.

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Accordingly, it is hardly surprising that the position is even more unclear in the GCC which is still playing “catch up” on data protection generally.

However, in some ways, this gives the GCC the opportunity to leapfrog Europe and put itself firmly into the lead globally in the regulation of e-Health/m-Health. That will take determined and visionary leadership in the healthcare sector. H E Dr Tawfiq Al Khoja, Director General of the Council of GCC Health Ministers, has previously emphasised the homogeneity of the GCC states and recommended a unified approach to address the challenges of the future.

Oliver Harrison, Director of Public Health and Policy at HAAD, sums it up, “As the challenges of global health evolve from acute to chronic, and from infectious to behaviour-related diseases, it is critical that healthcare changes, too.”

“The opportunities today are unparalleled.

IT and mobile devices are changing the way we live, socialise, make money, and educate ourselves. Data systems have the ability to transform healthcare. Yes, there are challenges around ethics, data ownership, and controls.

And yes, there are technical challenges, too. We believe that the challenges can be met, and that the opportunities for improving health, and for healthcare innovation compel us to face these challenges head-on.

“The emerging health challenges are global, and it may well be that emerging markets can lead the way in implementing a new kind of healthcare, bringing benefits to all. Abu Dhabi is actively seeking partnerships to realise these benefits.”

The proof of the pudding is in the eating. We’ll have to wait and see if the GCC rises to this particular and very modern challenge.

Jane Pittaway is managing partner, Wragge & Co Legal Consultants LLC in the UAE and Bleddyn Rees is a partner and head of healthcare, Wragge & Co LLP in the UK. This article may contain information of general interest about current legal issues, but does not constitute legal advice. For further information contact Kathryn Hobbs, head of corporate communications, Wragge & Co LLP: www.wragge.com

Understanding the legal issues Whether one calls it e-Health or m-Health, one thing is clear – this new area of healthcare raises a whole host of legal issues which have not previously needed to be addressed.

Regulators the world over are grappling with the changes they need to make to their legislative framework in order to protect patients and their families. At the same time, they must facilitate and enable governments and health authorities to take the radical steps needed to improve the health of their populations.

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ARAB CHAMBER OF COMMERCE

DOING BUSINESS IN SAUDI ARABIA

BY MORRIS DEFEO, HEAD OF CROWELL & MORING’S MENA PRACTICE

19

available in all circumstances; certain commercial activities can only be undertaken by certain investment vehicles.

In the next issue, we will look in more detail at these different types of Saudi investment vehicles currently available.

Crowell & Moring has been working in the Middle East, specifically Saudi Arabia, for many years. We have more than a dozen lawyers located in Cairo and Riyadh. In Saudi Arabia, we operate in collaboration with Al-Enizy & Associates, one of the leading local law firms.

Through our association with Al-Enizy, we understand both the legal and cultural issues associated with business ventures in Saudi Arabia.

This is the second in a series of articles looking at the legal and cultural issues associated with operating a commercial venture in Saudi Arabia.

In this article, we examine the incentives available to foreign investors in both the Saudi public and private sectors, as well as the different types of Saudi investment vehicles available. Please note that this describes current processes for doing business in Saudi Arabia. The Kingdom is currently in the midst of revising its corporate and commercial laws, so there may be a number of changes in the future.

I. Incentives Incentives for foreign investors are available from both the Saudi public and private sectors.

A. Public Sector The Saudi Arabian Foreign Investment Law provides that a project licensed under the Foreign Investment Law shall enjoy all the benefits, incentives, and guarantees enjoyed by a national project according to regulations and directives. These benefits, incentives, and guarantees include: (1) Incentives under the National Industries Law, which provides that industrial projects in Saudi Arabia may import machinery, tools, equipment, and spare parts free from customs duties. Semi-manufactured materials, raw materials, and packaging materials may also be imported duty-free by industrial projects, but only to the extent that such materials are not available in Saudi Arabia; (2) The ability to own the property required for the investment project and to sponsor its employees, although such ability is subject to certain conditions, including a prohibition against non-Saudis owning property in the cities of Mecca or Medinah;

(7) The exemption of export goods from storage fees for 10 days; (8) The right to apply for loans from the Saudi Industrial Development Fund (SIDF), a funding agency established to provide medium-term and long-term soft loans at modest fees substantially less than those associated with commercial loans for private industrial projects in order to help develop and enhance Saudi Arabia’s industrial base. SIDF will provide up to 50% of a project’s capital expenditure cost, including the initial working capital and pre-operating expenses; and (9) The ability to carry losses forward for tax purposes.

B.Private Sector Foreign businesses winning large government procurement contracts are often required to enter into Economic Offset Agreements whereby they commit to invest an amount equal to a defined proportion of the value of the procurement contract to establish innovative industrial and service projects in Saudi Arabia in collaboration with Saudi private sector companies.

II. Available Investment Vehicles There are six types of Saudi investment vehicles through which foreign investors may conduct business in Saudi Arabia: (a) a Saudi branch of a foreign business (a Branch); (b) an establishment;

(3) The benefits of Saudi Arabia’s double taxation treaties;

(c) a joint stock company, public or private (a JSC);

(4) Prohibitions against the confiscation of an investment project without due process;

(d) a limited liability company (an LLC);

(5) Unhindered repatriation of profits; (6) Unhindered transfer of interest in the project company;

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(e) a professional company; and (f) a technical and scientific office (a TSO).

Not all types of investment vehicles are

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ECONOMIC FOCUS

RELOCATING TO THE UK

Moving overseas to another country can be a daunting prospect, but fortunately there is an increasing pool of knowledge and resources available to make the relocation a little easier. This article explores some of the challenges people might face and offers some basic advice to assist.

Great Britain has been very much on the map in 2012 with the celebration of the Queen’s Diamond Jubilee and the Olympics. Yet it is not just exciting events like these that are attracting people from the Arab States into the UK. Greater trade links and the appeal of high quality university training are strong incentives to relocate to the UK. At the present time it is estimated that there are over 500,000 people in the UK who identify themselves as ‘British-Arab’ and more continue to arrive to seek out opportunities.

The prospect of relocating to a new country can arouse a host of differing emotions; excitement about discovering a new land; fear of how you might cope; sadness at leaving loved ones behind; or guilt about how the move might impact families and friends. You may experience some of these feelings or all of them depending on what mood you are in on a certain day. Personal circumstances can vary widely when moving abroad. You might be moving on your own, with a spouse or a family, or have the added dimension of proving yourself in a business or academic endeavour.

On top of that there are the challenges of speaking another language, experiencing a vastly different climate and culture.

Although international relocation can be an enriching and rewarding experience, there is strong evidence that it can also be very challenging psychologically. Uprooting oneself from all that is familiar and leaving behind an established reputation and status can result in vulnerable feelings and the need to rebuild one’s identity. In some cases this can lead to anxiety, stress and depression as people feel isolated and struggle to cope.

Fortunately there is support available. CiC, an Employee Assistance Programme (EAP)

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provider, has responded to some of the unique challenges that the Arab community faces in the UK by setting up an Arabic Counselling and Support Service. Like many EAPs, CiC offers services to help mitigate the personal issues that interfere with our ability to work or carry out our daily lives effectively. When members of the Arabic community contact CiC’s Arabic Counselling and Support Service freephone number they can be connected with a fully accredited Arabic speaking counsellor within 24 hours. This allows them to access immediate support on the phone or, where appropriate, structured telephone or faceto-face counselling. Counselling provides a supportive environment in which to explore unresolved emotional difficulties that may be affecting your capacity to maintain fulfilling relationships and enjoy life.

What happens on the journey According to intercultural experts Barbara Schaetti and Dave Pollack an individual passes through five stages when in transition from one place to another. Knowing what they are and what to expect can help you to be more accepting when you encounter them. What follows is an overview of these five stages, what you might experience and some suggestions for how to cope.

Involvement During the involvement stage we feel embedded within our community and enjoy an established reputation and social position. We derive a sense of security from the things that seem familiar in our life: routines, people, customs, weather and more. During this period, the

‘rules’ of our society and its culture and what is expected of us are understood. This stage is barely recognisable due to its familiarity. The feelings of involvement increase with time spent in a single geographical location.

Leaving As we prepare to leave we turn our focus from the present to the future, wondering what life will be like abroad. Friends and or family may be more attentive, with gatherings and farewells taking place. We become consciously aware that life and events will continue after our departure and may feel excluded from other people’s plans. It is tempting to withdraw to avoid painful and uncomfortable feelings but taking the time to say goodbye and acknowledge the importance of significant relationships will offer some closure, freeing you up psychologically to make a new beginning.

Tasks like packing, finding property overseas and choosing schools can feel overwhelming.

Some people like to choose particular personal belongings to take with them to help them to feel at home while others prefer to begin with a clean slate and offload as much as they can.

There is no right approach. To help alleviate the overwhelming feelings (if you can) make use of professional packing companies and relocation consultants. You may be able to access these through your work.

How the move is communicated can positively or negatively influence your experience. If you are planning on moving with a partner or family give them notice of when it will happen as early as possible.

Allow others to vent their feelings and be open about any worries or concerns. Asking them to move away from all that is familiar will inevitably raise anxieties and emotions such as anger, fear or sadness. Acknowledge their feelings. It can be helpful to remind them of other times when they have successfully made transitions to give them the confidence that they will cope.

Children and teenagers often struggle with the lack of control they have over the situation and while the decision to move might not be theirs to make they may appreciate being involved in other ways. If there is any flexibility over the timing of the move you can factor in important events such as birthday parties, sports competitions or school exams.

Transition Upon arrival in a new destination the wonder of discovery is usually accompanied by feelings of vulnerability. Familiar and simple routines now require thought and planning. Everyday things like buying a bus ticket or doing the household shopping can cause frustration and anxiety as they now require careful attention.

Our established reputation needs to be rebuilt.

It is very common to experience low selfesteem and stress as you try to work out the new rules. All of our personal resources are channelled into simple survival and there is

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little remaining for higher level thinking. Minor illnesses and tiredness are to be expected as we find ourselves in a prolonged state of high alert. This time can be particularly difficult for the partners of those who have relocated for work, as they figure out how to integrate into a new community, especially if they have given up their own careers. Those working in business or studying can benefit from the structure of work, colleagues and having a sense of purpose. For others who are at home it can require more effort to meet new people and find a satisfying routine and there is a risk of feeling more isolated. Even small steps like getting to know local shop owners or joining a fitness class can help you to feel more integrated. Most gyms and leisure centres offer women only sessions.

You may experience ‘country shock’.

Intercultural author Craig Storti warns us not to underestimate how tough it can be moving to extremely different climates. Britain is known for its changeable weather and cool, cloudy and rainy days are common. Limited daylight hours in winter can have an impact on how we live and the darker evenings of winter can make it tempting to stay indoors. All of these are things that you can get used to but it takes time.

We can become so focussed on our own experience that it is easy to miss how others are getting on, such as partners and children.

If you are moving with others remember to listen and support each other. Partners and families can be the one familiar thing in an unfamiliar setting and a huge sense of comfort. If you are on your own ensure that you stay connected with loved ones at home and take support from them.

Entering After the initial acclimatisation we consciously attempt to adjust to our new culture, form new relationships and learn social expectations. This remains a sensitive time, with highs when you make headway and lows when it feels like you have got it wrong. It is not unusual to idealise home.

Making new friends, joining groups and doing courses are just some of the ways that we can consciously begin to build a satisfying life and feel part of the wider community.

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ARAB-BRITISH CHAMBER OF COMMERCE

Re-involvement After a period of time in a new location things start to feel familiar and we regain a sense of permanence. There is no set time for how long this takes although many people who have moved abroad say that it can take up to a year or two before really feeling at home again.

Making international relocation work for you

21

If possible visit the UK in advance of your relocation to research property so that you know where you will be living when you arrive.

Make your house or flat feel like home. Many people find great comfort in having a place where they feel secure and comfortable, especially if the world outside feels confusing and unsettling. It is a place where your roots can begin to grow again.

Remember that you have dealt with similar challenges before and overcome them, perhaps not all at once and in a foreign land, but you do have the resources to come through.

Pack any important documents in your carry on luggage so you have them available as soon as you arrive. Shipments can be delayed and finding a few documents among a pile of boxes can be frustrating and time consuming.

Try to get along with the British community.

There is evidence to suggest that successful relocations depend on how well we integrate with the local people.

Research your new destination before you leave. There is much that you can find out online.

Expect misunderstandings to happen. Don’t be too hard on yourself when they do and learn from them.

Use any available support. Many organisations have access to relocation teams and can give advice on removal companies, property experts and others.

Friends and family can be helpful too.

Ask for help if you are struggling. Sometimes when things feel difficult we need to lean on others for support. Take advantage of the Arabic Counselling Support Service or talk to friends or family. Signs of stress, anxiety or depression are: l Poor concentration

Try to learn English, even if they speak Arabic in your office or the ex-pat community. You will feel empowered to cope better and will be able to play a more active role in the community.

Find a local Arabic ex-pat community, there are many across the UK. Talk to others who have relocated and find out what helped them.

CONTACTS

l Unable to feel enjoyment

For more information on CiC’s Arabic Counselling and Support Service please contact Javier Paredes at CiC.

l Irritability, tearfulness, feeling like you

Tel: 0207 938 0923

l Sleep disruption l Inability to switch off

can’t cope

l Chest pains, palpitations or panic attacks

Email: javier.paredes@cic-eap.co.uk

l Change in appetite

www.cic-eap.co.uk

l Increased usage of alcohol or other

Arabic Counselling and Support Service Freephone Number: 0800 781 7935

substances

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We love to see you smile

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ARAB-BRITISH CHAMBER OF COMMERCE

23

ADVERTORIAL

HOW TO ASSESS AND MANAGE YOUR RISKS TO AVOID COSTLY MISTAKES

In the current economic climate many companies are looking beyond their traditional markets to operate in a greater variety of countries, many of them in high risk areas. Therefore, it is advisable for companies to act more cautiously before entering any new markets and forming new business relationships by conducting appropriate risk assessments and due diligence . This approach allows a company to accurately assess any future business relationships and identify any potential risks that could be damaging both to reputation as well as fi nancially.

Page Group has more than 20 years experience in gathering information and providing enhanced due diligence and intelligence for clients in sectors such as Banking and Finance, Oil and Gas, Pharmaceutical, Energy, Real Estate and Retail. By using specialist commercial data bases, open sources and selected industry and local contacts, information can be gathered to profi le an individual or company to identify any adverse information such as previous fi nancial irregularities or unknown associations. In addition a risk assessment can help identify the political, fi nancial and physical risks to a company and its staff before it enters a country for the fi rst time.

We have an established presence in Beirut, Dubai and London as well as operating in other international locations in Europe, Africa and Asia. Having been in the Middle East for the last six years, we have operated in markets such as Libya, Yemen, Egypt, Saudi Arabia, UAE, Kuwait, Jordan, Iraq and Lebanon. With great changes taking place in a number of countries and

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ongoing confl ict in Syria and Yemen, Page Group can help reduce the risk of conducting business in these volatile markets, by producing reliable information, conducting due diligence and providing appropriate security.

It makes good business sense to conduct enquiries on an international basis to verify the background of individuals; particularly principals of companies, joint venture partners, senior hires and investors, as well as verify company activities, related shareholdings, subsidiaries and market reputation. It is particularly important to establish whether targeted companies and individuals have links to Politically Exposed Persons (PEPs) or a history of any criminal associations or related civil court actions. Enquiries also examine likely sources of wealth, verify (potentially confl icting) business interests and determine undisclosed benefi cial shareholdings and assets.

To demonstrate an appropriate level of care and safety for staff, it is wise to consider providing physical and personal security to company executives and other staff who travel to high risk locations. Page Group also provides this to high profi le and diplomatic personnel and delegations, to help ensure their safety and minimize any physical risk. This can be achieved by deploying experienced, low profi le close protection trained operatives with local knowledge who are sensitive to commercial environments. Page Group recent assignments have included assisting with the evacuation of foreigners from Libya when the confl ict fi rst started; providing protection to senior

executives travelling to West Bank and Gaza and preparation of evacuation plans for companies in Lebanon. Page Group is now assisting international fi rms to re-enter Libya and not only providing security but also due diligence on potential partners particularly to check they are not on any government watch lists excluding them from bidding for new contracts.

In the event a client’s business relationship goes wrong, Page Group also assists lawyers and companies to recover assets. This might include examining complex ownership structures, determining ultimate benefi cial ownership of assets and establishing fi nancial and corporate links between parties. This helps to provide valuable information to negotiate pre court settlements or provide litigation support.

CONTACTS Email: info@pagegroupltd.com Phone: + 44 (0)20 7930 9200 (London) Phone: +961 1957577 (Beirut)

10/10/12 13:47:13

ECONOMIC FOCUS

OPPORTUNITY LIBYA

forecast in seven priority sectors: l Oil, Gas and Power l Healthcare l Education and Skills l Technology (ICT) l Civil Security l Business and Financial Services l Infrastructure.

Libya is a country undergoing a transition with many commercial opportunities arising out of its reconstruction process.

The emerging opportunities have been designated as High Value Opportunities (HVO)

by UK Trade and Investment (UKTI).

The overwhelming characteristics of Libya as a new state with modern democratic ambitions, enormous infrastructure needs, historical ties with the UK, huge capital reserves, and a large quantity of unpumped high quality oil (and probably gas) reserves,

combine to reaffirm just what a significant opportunity the market is to UK companies with serious ambitions. The Libyan elections held in June 2012 were to elect a body responsible for drafting a new constitution.

This will prepare the way for popular elections planned for 2013 when a new government will be elected.

What follows is an overview of opportunities

In recent months, trade missions have taken place as part of UKTI's export promotion work in Libya for all these priority sectors, apart from Business and Financial Services, which is forthcoming at the time of writing.

Such activities have comprised both taking UK companies out to market, and bringing Libyan officials to the UK. The UKTI Commercial Section in Libya has grown in size with a number of UK based and locally engaged officers in place, each with specific sectoral responsibilities. Simultaneously, UKTI in London has organised a series of conferences and events and provided logistical support to the trade missions.

Oil & Gas Libya has a combination of substantial, high quality, crude oil reserves, and what is forecast to emerge as a highly significant offshore gas basin. These resources combine to confirm its position as a key regional and global exporter of fossil fuels. They also drive the Libyan economy, representing a massive proportion of Libyan GDP and providing the financial capability and cash flow to fund Libya's ambitious growth plans.

The energy sector is highly evolved and has been subject to perhaps the greatest international partnership and investment of any sector in Libya's economy.

The pervading sense in the market is that the door to international business will move from ajar to wide open once elections have taken place and a degree of bureaucratic transition has occurred. It therefore remains critical that UK IOCs and supply and maintenance companies continue to evaluate local security conditions, continue to identify local contractors with which they could potentially partner when the door does fully open, and build relationships across government, the National Oil Company and operational companies now.

There is an immediate demand for electricity and power in Libya as power stations are brought back online and oil & gas flows are increased in order to meet domestic demand, and to generate export revenues.

There are UK companies that specialise in supplying temporary power generation.

Representatives of these companies are known to be on the ground in Libya already, building local contacts and reviewing the market.

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ARAB-BRITISH CHAMBER OF COMMERCE

Long-term trade opportunities exist around supporting British IOCs and independent oil companies in winning additional Libyan E&P contracts. The Libyan oil and gas sector offers enormous opportunities to UK business, and appetite is likely to be very strong for additional E&P contracts to those already held by UK firms.

Healthcare Libya's health sector has suffered major neglect over the past 40 years, both in investment and in strategic cohesion and quality of management.

A situation has been able to develop in which doctors write prescriptions in English for nurses that speak Arabic, in which there are

25

no child psychologists, and in which many wealthier Libyans travel overseas for operations and treatment.

international models that could be drawn upon in the redevelopment of the Libyan health system.

The longer-term reform and development of the Libyan health system will be a major task, which will require significant investment and presents a major opportunity for the UK where companies are well equipped to assist in addressing urgent needs. UK clinical standards, training and expertise are held in high regard by the Libyan clinical community and there are strong links with the NHS as a large number of Libyan doctors qualified and worked in the UK, and there are approximately 3,000 Libyan doctors practicing in the NHS. The UK’s system is seen as one of several

UKTI, alongside NHS Global and the Department of Health, have been in discussions with the Libyan Ministry of Health to refine their understanding of the country’s needs, and to coordinate a response from the UK’s health sector including public and private sector organisations and universities. A number of UK organisations that took part recent trade missions have been actively following up with their Libyan counterparts and are progressing opportunities bilaterally.

CONTACTS Tel: +44 (0) 207 723 1733 www.londoncentralportfolio.com

Tripoli airport needs to be upgraded to meet the demands of increasing volumes of international business.

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ABCC-EF2.indd 27

10/10/12 13:47:37

ECONOMIC FOCUS

Education and Skills A significant proportion of foreign educated Libyans have been taught in the UK, often through one of the numerous Libyan government-funded scholarship schemes. In addition to higher education, the combination of both an established network of English language training centres in Libya, and the vocational training and knowledge transfer that many UK companies include in their business offer when working in Libya, reinforce the UK's strengths in this sector.

A number of UK companies were active in the Libyan education market before the revolution, including education consultancies, equipment supplies, English language tuition, and many UK universities had established scholarship links through the Libyan Ministry of Higher Education.

Prior to the conflict the British Council had partnered with Tripoli University (TU) on a five-year programme to teach English in a number of Libyan universities, leading to the establishment of ten regional teaching centres. This programme had been very successful, and TU's English Language Faculty are very keen to expand the programme to include teaching at secondary school level. This area presents excellent opportunities for UK universities and commercially run educational organisations.

There are also significant opportunities in the vocational training sector. It was increasingly common in the past for the Libyan government to place contractual requirements on foreign companies to provide vocational training to local workers co-delivering major projects. There are particularly strong demands for vocational training in the oil and gas, healthcare, and telecoms sectors.

The Open University and the Arab Open University (AOU) have been affiliated for a number of years. Opportunities stem from the AOU's plans to significantly expand its curriculum into health and social care, English language tuition, and computer engineering. The provision of distance learning courses is anticipated to resonate well in Libya, not least while the education

sector recovers, providing initial capacity and upskilling to a nation with immediate plans for economic development and diversification.

Technology (ICT) Libya has ambitious plans for creating an advanced economy, modelled on its European partners. This necessitates some state-of-the-art communications infrastructure. At present, Libya's ICT infrastructure is dated and unreliable.

For example, only some European mobile networks have roaming deals with the Libyan (state owned) networks, in itself a barrier to international business. Internet access is very slow even in Tripoli, and slower or nonexistent elsewhere. Internet access stands at around 6% - 7% countrywide although there is an ambitious government target of 100% by 2015. The technology underpinning operations outside of the pure ICT sector are equally dated; for example, banking systems are in desperate need of modernising, and medical technology in public hospitals requires investment.

However, there is a growing view that Libya may have a future as a regional technology centre.

Education in Libya is a prestigious issue, and many of the country’s university educated middle classes have medical or engineering degrees. Increasingly, ICT-related degrees in computer sciences and other applicable subjects are being considered viable alternatives to these traditional staples. If this trend continues, Libya will have an increasingly large population of highly skilled ICT professionals, which in turn will influence the evolution of Libya's economy into a modern digital state.

Due to the significant spending required for many of the national ICT infrastructure projects, it is unlikely that the Libyan government's strategy will be clear until after the elections.

Civil Security Libya's successful future is fundamentally reliant on its sustained stability. But there

is a significant risk that without both immediate investments in civil security, alongside economic growth and employment opportunities in other industrial sectors, Libya will not achieve its great promise to emerge as a regional success story.

The scale of opportunity in this sector is huge and the potential value of the sector is comparable only with oil and gas in terms of absolute values. UK companies are keenly aware of this, and many are conducting market visits.

As Libya’s oilfields are reactivated and foreign companies return to the country to continue with production and exploration activities, there will be a renewed demand for oilfield protection services from the security industry.

Equally, there is an ongoing need to protect power plants, ports, and government buildings.

Libya has a huge and largely unprotected border. Securing it is of critical national importance and priority. There are major opportunities for UK companies to help supply the solution to this problem.

Immediate opportunities are in relatively low technology answers, including patrol vehicles. However, it is likely that these immediate approaches will be supplemented by high technology solutions in the long term, including biometric visa control.

There is a pressing need to ensure that police officers have been trained in modern policing techniques, that the Libyan police force is organised effectively and transparently in order to build trust with the population which it polices, and for modern equipment and hardware to support this.

Business & Financial Services Without agile and robust financial services, underpinned by updated regulations, Libya is likely to encounter great difficulty in underwriting and administering its multi-billion dollar nationwide infrastructure investment programme. The financial services sector was subject to reform during the past 5-10 years, including liberalisation of domestic ownership rules for retail banks. This led to an increase in the number of foreign banks operating in Libya, led by institutions such as the British Arab Commercial Bank.

However, reforms were not sufficiently far reaching. The current administration in Tripoli has publically announced that it plans to tackle regulation of the sector to enable the levels of foreign investment required to meet Libya's growth plans. This is expected to be through updating the 2005 banking law which first opened the market up to foreign banks, and changing the existing national banking structure.

British companies established in the market include asset management such as Barclays Capital and RBS; Commercial banking, namely ABC International, British Arab Commercial

ABCC-EF2.indd 28

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Bank and Standard Chartered; retail banking, HSBC; and business services where KPMG, E&Y, PWC and the Law Society are active.

A new opportunity was identified in providing advisory services to the Libyan government on banking reform and regulation. A clear need has been expressed by the government and a willingness to assist was expressed by UK industry.

Infrastructure Libya's infrastructure needs remain acute as is reinforced by travelling to Tripoli. The old airport is dated and not fit for servicing increasing volumes of international business.

The roads are full with traffic, and short distances take a long time to cover. There is no public bus system, or metro, so the roads are bursting with traffic leaving people with no alternative means of reaching a destination.

Waste management is minimal, though that is likely to improve as services are reintroduced.

Market entry for UK firms extends beyond winning prime contracts, or supplying UK companies at or near the top of the supply chain. There are huge opportunities in partnering with foreign primes from, for example, Tunisia, Malta and Turkey amongst other major players.

There is an opportunity for British architecture and town planning consultancy firms to help masterplan Libya's growth, and

ABCC-EF2.indd 29

ARAB-BRITISH CHAMBER OF COMMERCE

subsequently for Britain's highly capable engineering consultancy industry to oversee the implementation. Building relationships with the key decision makers and influencers in the NTC, ministries and Libyan business early on will be critical to the UK's competitive advantage in future competitions for this work, and for gathering intelligence about the Libyan government's strategic ambitions for the sector.

Benghazi Infrastructure Benghazi was deliberately sidelined by the previous regime and suffered underinvestment. Some recent investment is known to have taken place such as airport rebuilding as part of the wider airport rebuild strategy. A number of opportunities have been highlighted through UKTI office in Tripoli via "Team Maghreb" in Benghazi.

Market Summary Libya is a market that has not yet been exploited by UK companies. The UK’s prerevolution market share of Libyan imports was very low. There are a number of likely causes for this, including very significant barriers to entry, and issues with transparency of business transactions. However, the business context has now changed and Libya's new government is championing equitable business, and is slowly but surely tackling the obstacles to international investment that it inherited from the previous regime.

29

Libya is cash rich, with billions of capital reserves in savings, and a rich supply of highly valuable prime oil (and likely gas too). The country has extensive needs, and strong ties with the UK. Thus there is a huge opportunity for growth in UK exports to Libya. These exist across the spectrum of business outlined above. Particularly valuable opportunities exist in energy, healthcare, civil security and infrastructure. However, notable opportunities exist elsewhere too, including for UK Small and Medium Enterprises (SMEs) to enter the supply chains for major projects.

Business in Libya requires commitment and patience. What some have perceived as slow progress in opening to business since the Libyan revolution is in itself an opportunity to prepare for the widespread tendering of major investment projects by the new Libyan government. It is critical that UK companies with an interest in entering this exciting market invest now in visiting Libya, building relationships, meeting key players in government, administration, and business, and then returning to sustain these relationships.

Making that investment now is likely to lead to valuable and sustainable business in one of the world’s most ambitious and wealthy nations and one that is only a few hours from the UK by air.

This article is based on information contained in the report published by UKTI, High Value Opportunities in Libya.

10/10/12 13:47:39

ECONOMIC FOCUS

A LAWYER WHO NEVER LOOKS BACK

Economic Focus speaks to leading business lawyer Mr Bijan Sedghi who has never looked back after joining Wragge & Co at the start of his impressive legal career.

We asked Bijan to share some of his experience of doing business in the Middle East and the Gulf in particular.

A high proportion of Bijan’s professional time is spent engaged in work that is related to MENA activities, developing relationships and promoting clients and prospective business contacts to each other and vice versa. “I have dealt with the GCC since 1992 and have acquired a sound knowledge base and a high level of business connections, many of whom have now become very good friends,” he explains.

ABCC-EF2.indd 30

Concerning his initial entry into the legal field, Bijan says, this occurred “more by accident than by design”. Having launched into his A levels one year early and intending to embark on a science-based future, he was initially setting out to become a medical doctor. But, he continues: “Physics (and my complete dislike for the subject) put paid to that and I changed to arts-based subjects and

then became enthused to read law but without any final focus on what I would do with my law degree. By the third year of my law course, I realised that a career as a solicitor appealed.

I applied to Wragge & Co (which was then the pre-eminent law firm outside London) and was fortunate enough to be offered a training contract. After graduating and joining Wragge & Co, I did not look back.”

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ARAB-BRITISH CHAMBER OF COMMERCE

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Make the effort to speak the local language. Respect the religious views and practices.

Observe local customs and traditions. Be sensitive to the people in the Gulf because they will show you the utmost in hospitality and courtesy.

Bijan Sedghi

Describing the factors that continue to drive and motivate him in his career, Bijan explains that: “My key motivation has been to acquire and enjoy a superlative reputation for the highest quality of client service both in terms of legal and commercial advice. My key influences have been my father for his work ethos and integrity; a former senior partner in law called John Wardle, who encouraged me to take on Plc directorships at the age of thirty; and Jack Ormerod, a former Plc Chairman who persuaded me to join his Board and embark on an industrial career, too.”

As a lawyer, Bijan’s reputation rests on his expertise in providing business advice. As he says, “My area of expertise lies in building

ABCC-EF2.indd 31

businesses as a principal and also as an adviser. I have built businesses in: l The law (building the largest insolvency

practice outside London in the early 1980s);

l Industry (building a quoted international

engineering group listed on the London Stock Exchange);

l Rebuilding a distressed engineering

group quoted on the LSE at the request of its Board and financial advisers;

l Re-entering the law and building new

practice areas and new strategic relationships.

“My strengths lie in seeing the bigger commercial picture and not becoming immersed in the minutiae – being able to ‘move the needle’ on the speedometer of any organisation”.

Bijan further elaborates on his role: “As an operator and manager of businesses at Chairman and CEO level, public and private, I tend sit with the client on his or her side of the table, understanding the business and what they really need to achieve and then devising the best means to produce a successful outcome.”

Reflecting on his main achievements to date, Bijan points to how, at the age of

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ECONOMIC FOCUS

twenty-eight, he became a partner in a large commercial law firm and before the age of thirty three, he had become Chairman of two engineering groups quoted on the LSE. He is proud of the fact that he has received recognition for his work and points out that at the age of 37, he was included in “The Top 40 under 40” by Business Magazine.

“I combined these achievements with working also for government (the Department of Trade and Industry and the Department of Health) and universities (Aberystwyth and Aston University) and simultaneously serving the private and the public sector,” he explains.

“I was embarrassed to be described by a prominent venture capitalist as ‘the most commercial lawyer I have ever met’ – and by the CEO of a family office as ‘the best British-based lawyer in London’ – neither of which quotations modesty permits me to endorse – they must be referring to someone else, I say!”

We asked him for his views on the main challenges and opportunities facing corporate lawyers in today’s business environment. “Today’s business environment in the UK is tough for all of the reasons we appreciate – lack of liquidity in the banking system, austerity measures, recovery from near economic ‘meltdown’, global recessionary pressures and the continued migration of manufacturing to lower cost bases elsewhere in the world,” he observes.

Inevitably, this situation is having an impact on how law firms operate, Bijan explains.

“So, law firms find themselves competing for work and at a lower cost. Additionally, regulatory controls or restrictions become further necessary as the ‘light touch’ approach may be considered to have failed those whom it was meant to protect. So, with legal fees under pressure in a market which has seen fewer deals, the challenge for the lawyer is to stand out from the competition in order to win the work at a fair price.

Other factors now become important, such as adding value to the client and the client’s business through commercial introductions, innovation and quality enhancement – and having a global offering.”

Wragge & Co has been based in Birmingham since the 1830s and is currently the largest private sector employer in the city centre.

Bijan started work in the city in 1975.

Birmingham “offered a low-cost, wellpositioned hub from which to operate not just nationally but internationally”. But nowadays Bijan works mostly outside the city; he retains a desk in Birmingham which is his corporate HQ but he is based in London for almost four days a week – as well as travelling abroad.

We asked Bijan how he would advise a company seeking to do business in the Gulf

ABCC-EF2.indd 32

for the first time: What are the key legal pitfalls that a company should look out for when doing business in the region? “Always exercise humility and patience in that order.

Do not under-estimate the business acumen of GCC nationals, many of whom have enjoyed the highest levels of education and are extremely sophisticated,” Bijan says.

“Remember that (through extreme politeness) the word ‘No’ is rarely used but that there are varying shades of ‘Yes’. Do not be pushy. Do not pressurise. Be entirely respectful. Talk family before business and build a foundation of trust and confidence before finance and money.”

His advice continues, “Make the effort to speak the local language. Respect the religious views and practices. Observe local customs and traditions. Be sensitive to the people in the Gulf because they will show you the utmost in hospitality and courtesy. Do not try to take advantage. Take professional advice as to where you set up and how – and view the relationship as long-term and mutually beneficial.”

Ending with a note of caution, Bijan says, “Try not to be the stereotypical “expat”. Try to think as if you are a local but don’t ever pretend to be local. Take a long-term view.

Enjoy but don’t rush. Say “Shukran” with sincerity when you succeed. Don’t assume things will always happen as it will depend upon God’s will.”

Looking ahead to the pathways that his career will take him in the immediate and long term future, Bijan says, “My long-term career ambitions are to serve my clients, my partners, my government (and my family and friends) for as long as I can effectively do so, God willing.”

Wragge & Co is a member of the ArabBritish Chamber of Commerce and Bijan is keen to recommend its services and activities. “The Arab-British Chamber of Commerce is a most effective forum through which businesses and individuals can transact with the MENA region and the UK. The membership fee should not be regarded as a cost but as an investment – and it is one of the best investments I have made, being a member via The Informed Executive and also via Wragge & Co.” Bijan ends with a strong endorsement of the work of the Chamber and the support services it provides to business: “I recommend strongly that anyone seeking to do business in the MENA should join the Chamber and participate actively. Through its highly professional team capably led by its CEO and Secretary-General, Dr Afnan Al-Shuaiby and its Board astutely chaired by The Rt Hon Baroness Symons, the Chamber offers a very powerful and supportive voice for its members.”

The Informed Executive – www.informedexecutive.co.uk Wragge & Co – www.wragge.com

10/10/12 13:47:47

ARAB-BRITISH CHAMBER OF COMMERCE

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ARAB BRITISH CHAMBER OF COMMERCE OUR MAIN SERVICES TO BUSINESS

Export Documentation

FCO Service

The Chamber’s unique Export Documentation service is an important asset to Arab-British trade. With our extensive experience, we are ideally positioned to assist exporters entering the substantial and sophisticated Arab market, encompassing all your certification and legalisation needs.

ABCC provides a 24 hour service for FCO. To make use of this service please call Mr Cliff Lawrence on 020 76594881

Notary Service

Read more‌

ABCC offers this unique service within 48 hours. To use this service please call

http://www.abcc.org.uk/ExportDocumentation

Mr Cliff Lawrence on 020 76594881

Translation Services

Venue Hire

ABCC specialises in Arabic/English and English/Arabic translation for over 35 years.

ABCC offers clients a contemporary venue to suit a variety of different events and meetings.

To see the business and conference facilities that the Chamber can provide.

Read more... http://www.abcc.org.uk/Translation-Service

Read more...

Visa Services

http://www.abcc.org.uk/Venue_Hire

ABCC visa service is available to UK firms and firms with offices in the UK. If you are travelling on business to any Arab country and need a visa secured quickly and efficiently, then the Chamber's Visa Section is the ideal point of contact.

Chamber Events

Read more... http://www.abcc.org.uk/Business-VisaServices

ABCC-EF2.indd 33

The Chamber organises a programme of prestigious events, business roundtables, briefings, seminars, conferences and receptions taking place throughout the year.

These events offer a showcase for the latest projects and major developments in the Arab economies.

Read more... http://www.abcc.org.uk/Events

Become a Member The benefits of becoming a member are considerable: joining the Chamber puts you in contact with a wide business network in the UK and the Arab World.

Find out more... http://www.abcc.org.uk/Members_Benefits

NEW SERVICES COMING SOON

The Chamber will soon be able to offer the following services: Letter of Credit Management Service Pre-shipment Inspection Service Further details will be released in due course.

10/10/12 13:47:47

ADVERTORIAL

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pumping stations, bulk crude handling and storage facilities, prefabrication of piping spools, pipe supports and structural assemblies), oil loading and off-loading terminals, fabrication of platforms for offshore facilities.

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ARAB-BRITISH CHAMBER OF COMMERCE

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69K:GIDG>6A 69K:GIDG>6A ADVERTORIAL

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ALL EYES ON QATAR FOR THE FIFA WORLD CUP

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partnership with engineering firm ECM Group Polska to offer combined expertise in water industry asset management to Polish water companies.

And in the Canadian province of Alberta, Scottish Water International was engaged to provide training to the water industry, building on the parent company’s experience of providing water services in a mix of geographical areas – especially rural communities – as well as advising on drinking water safety plans.

The three contracts to date are a natural fit for Scottish Water’s collective skills and experiences and the organisation is looking for further opportunities to share expertise and help create sustainable systems.

The eyes of the world will be on Qatar in a decade when one of the world’s biggest sporting spectacles, the FIFA World Cup, lands in the Gulf State.

With preparations already underway a team from Scottish Water is supporting efforts to deliver world-class infrastructure. In one of the first contracts of its kind, Scotland’s publicly-owned water utility is working as a subcontractor to MWH Global to support Qatar’s Drainage Asset Management Programme.

The contract was a major coup for Scottish Water International, the utility’s overseas business established last year to export the vast skills, experience and knowledge built up in Scotland’s water industry over the last 10 years.

ABCC-EF2.indd 35

Formed in 2002, Scottish Water has transformed itself into a financially strong business delivering first-class services to its customers.

The utility has slashed its operational costs with highly-engaged and motivated staff spearheading a raft of innovations in procedures and systems that have enhanced customer service and drinking water quality.

Having established a reputation for excellence the utility is now offering its services internationally using the worldclass expertise of its engineers and scientists and their ability to help the world harness its water resources effectively.

With many nations looking closely at the future management of water, Scottish Water International is open for discussions with other countries and potential private sector partners about how it can play its part in meeting the challenges and opportunities facing the global water industry.

For more information email SWIntl@ scottishwater.co.uk or visit https://www. scottishwater.co.uk/business/international

As well as the link-up in Qatar Scottish Water International is working in

10/10/12 13:47:51

Work-based learning from Anglia Ruskin University BA (Hons) Management This Bachelors degree is for busy professionals who wish to take their career to the next level.

It takes three years to complete, and you will study key areas of management including Marketing, Finance, Planning, Decision Making, Leadership, Change Management and Project Management Start dates: September 2012 & January 2013

MA Leadership Our MA Leadership is aimed at mid-career managers moving into strategic roles. It will guide you through the complexity of organisations, the challenges involved, strategic visioning, motivating and inspiring workforce, and producing transformational change. The diversity and richness of delegate experience on the course contributes to valuable learning.

Start dates: September 2012 & January 2013

MBA (Global Leadership) This MBA has been developed in partnership with Schouten University in the Netherlands and is aimed at senior executives who wish to acquire the expertise to make a real impact on business. The advanced MBA offers rounded content on Strategy, Organisation, Operations and Supply Chain, Corporate Finance, Innovation and Project Management.

www.anglia.ac.uk/abcc

Start dates: September 2012 & January 2013

FdA Professional Practice International Trade With the new Professional Practice International Trade foundation degree there is now a practical, industry recognised way to equip staff with the technical and management skills to transform changes in international markets into business opportunities.This course has been created and is delivered in partnership with the Institute of Export.

Start dates: September 2012 & January 2013 www.anglia.ac.uk/abcc

ABCC-EF2.indd 36

10/10/12 13:47:54

ARAB-BRITISH CHAMBER OF COMMERCE

37

ADVERTORIAL

STUDY FOR A BRITISH DEGREE ANYWHERE IN THE WORLD

Anglia Ruskin University, based in Cambridge in the UK, are leading the way in the provision of workbased distance learning education to companies around the globe.

With a unique offering of courses to suit all industries and skill sets we are able to meet the training requirements of any company and provide staff the qualifi cations needed to become great managers, all without the need to take time out of work or visit our campuses.

“The key thing I would credit Anglia Ruskin University with is their openness and their willingness to be innovative and think of new ideas. We wanted to create a world class sales course and Anglia Ruskin was really open to exploring what this qualifi cation could be.”

We have partnered with the Arab British Chamber of Commerce to offer a great range of courses to members, which cover subjects such as Management, Leadership, International Trade and much more. You can obtain qualifi cations which start at entrylevel Certifi cates and go right through to Master Degrees and MBAs.

Work-based learning differs from traditional higher level education in that it involves actively using the workplace as a learning environment. Work-based programmes focus on developing skills, knowledge and understanding and the application of this learning to achieve specifi c individual, team and organisational objectives.

Karen Springett is currently studying with us for an MA in Leadership. She says; “I am fi nding the course rewarding, this is a liberating way to study. I can work when I want to, I can get everything out of the way and in the quiet of the evening I can concentrate. Having instant access to the other students’ ideas and postings is a great help. I can correspond with them all when I am ready to and read their contributions at leisure.

“The support I have received has been wonderful. Quick and effi cient replies to my contributions or requests and simple instructions offered to get me moving again .”

We also work with a number of leading international brands, including Harrods, RasGas, Specsavers, Timberland, Barclays, UPS, the Royal Air Force and Volvo, to deliver bespoke in-house training that meets their exacting requirements.

Arkin Salih is Learning and Development Manager at Harrods, and he says;

ABCC-EF2.indd 37

Through our innovative online Virtual Learning Environment (VLE) students are able to access a wide range of learning facilities, including our digital library, discussion forums, videos and podcasts of lectures, wikis and blogs. We provide everything you need to study with us wherever you might be in the world.

We can also work with you to organise summer schools or residential study weeks at our campus in the beautiful and historic city of Cambridge, When you visit our campus you will fi nd we have fantastic modern facilities at our two locations in the UK including a modern Business School and a state if the art Post Graduate Medical Institute. Both of these locations are available for any of our 30,000+ students to use whenever they wish.

We have partnered with leading institutions to offer the best choices and opportunities for anyone wishing to study with us. Our partners include the Arab British Chamber of Commerce, the Institute of Export, RDI, the Chartered Institute of Housing, Schouten University, Excelsior College and many more.

CONTACTS We are taking applications now for our September 2012 intake. Please visit our website www.anglia.ac.uk/ abcc, call +44(0)845 196 6707 or email higherskills@anglia.ac.uk to find out more and to apply.

10/10/12 13:47:56

ECONOMIC FOCUS

QUARTERLY ECONOMIC SURVEY

The British Chambers of Commerce Quarterly Economic Survey for the 2nd Quarter 2012 received nearly 8,000 business responses. The respondents cover the entire United Kingdom, and were surveyed by postal and online questionnaires over the period 21 May to 13 June.

In the manufacturing sector 2,056 firms, employing approximately 250,000 people, responded. 1,358 (66%) of manufacturing respondents were exporters. In the service sector 5,749 businesses with approximately 730,000 employees responded. Of the service sector participants, 2,499 (43%) were exporters.

While the majority of respondents employ fewer than 500 people, the sample included 209 large businesses. Total responses are weighted according to the actual distribution of companies by size within each region, and each region is similarly weighted within the national aggregates to ensure that the sample provides a truly representative picture of UK commerce and industry. The survey is the largest and most representative of its kind in the UK. In total, the Q2 2012 results suggest that the UK economy is stable, but its growth performance is still disappointing.

However, the results show a surprisingly good improvement in exports. For both manufacturing and services, the export balances are now slightly above their average pre-recession levels in 2007. But most other key Q2 2012 national balances have recorded little net overall change compared with Q1 2012. Almost all the Q2 key balances are in positive territory, across both sectors, and are stronger than their average levels in the 2008-09 recession. But, with the exception of exports and manufacturing employment, all the key balances are still below their pre-recession levels in 2007. The cashflow positions are weak, with a very low positive manufacturing balance, and a service sector balance still in negative territory. Plans to raise prices have eased further in Q2, and are now below their long term historical averages for both manufacturers and service firms. But inflation remains a significant reported concern for businesses in both sectors, despite easing price pressures.

ABCC-EF2.indd 38

Domestic Market The Q2 national domestic balances recorded small movements in both directions, but there was little net overall change compared with Q1. Though higher than in the 2008-09 recession, the Q2 balances remain below their pre-recession levels in 2007. The manufacturing balance for home deliveries fell three points, to +9%; the manufacturing home orders balance edged up two points, to +8%, the strongest level since Q2 2011. The service home deliveries balance remained unchanged in Q2, at +10%. The service home orders balance fell two points, to +5%. The service balances remain weak by historical standards.

Export Market The national export balances improved further in Q2, for both manufacturing and services. The manufacturing balance for export deliveries rose seven points, to +31%, the strongest level since Q4 2010. The manufacturing balance for export orders

increased four points, to +24%, the highest level since Q1 2011. The service export deliveries balance rose eight points, to +24%, the strongest level since Q3 2007. The service export orders balance rose seven points, to +19%, the equal strongest level since Q4 2006. The manufacturing export balances remain stronger than the service export balances, but the gap has narrowed.

Employment The Q2 employment balances recorded divergent movements. The manufacturing employment balance was unchanged, at +16%, the equal strongest level since Q4 2010. The manufacturing employment expectations balance fell two points, to +13%.

The service employment balance increased six points, to +10%, the highest level since Q1 2008. The service employment expectations balance edged up one point, to +12%, the equal strongest level since Q1 2008. Both service balances remain below their 2007 pre-recession levels.

10/10/12 13:47:56

ARAB-BRITISH CHAMBER OF COMMERCE

ECONOMIC SUMMARY

39

Capacity Utilisation and Cashflow The percentage of manufacturing firms operating at full capacity rose three percentage points, to 39%. In services, the proportion of firms operating at full capacity edged up one point, to +36%, the strongest level since Q2 2011.

The cashflow balances remain weak in both sectors. The manufacturing cashflow balance rose one point, to +2%. Services cashflow rose three points, to -1%, still negative.

Prices Investment

Business Confidence

The investment balances recorded divergent movements in Q2. The balance of manufacturing firms planning to increase investment in plant & machinery fell six points, to +11%. Manufacturing intentions to invest in training rose one point, to +18%, the best level since Q1 2008. The balance of service firms planning to increase investment in plant & machinery was unchanged, at +5%. Service sector intentions to invest in training were also unchanged, at +13%. Both service balances are still at relatively weak levels.

In manufacturing, the confidence balances rose in Q2. In services, turnover confidence was unchanged, and profitability confidence fell marginally. All the confidence balances are still below their 2007 pre-recession levels, and most are weak by historical standards.

Manufacturers’ turnover confidence rose seven points, to +44%, the strongest level since Q4 2010. Manufacturers’ profitability confidence increased three points, to +24%, also the strongest level since Q4 2010. The service sector’s turnover confidence balance was unchanged, at +30%, the equal highest since Q1 2011. Service profitability confidence edged down one point, to +13%.

Intentions to raise prices have weakened in both sectors, mostly in manufacturing. The balance of manufacturing firms reporting pressure to increase prices plunged 17 points, to +9%, the lowest since Q1 2010. The balance of service firms expecting to raise prices fell six points, to +18%, the equal weakest result since Q3 2009.

The Q2 2012 results suggest weak and inadequate, but still positive, UK growth. The economic outlook is difficult and uncertain.

With the Diamond Jubilee reducing the numbers of days worked in Q2, and early estimates showing renewed falls in the erratic construction sector, there is a distinct possibility that official figures for Q2 may show negative UK GDP growth for a third

Albert Dock, Liverpool

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10/10/12 13:47:57

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10/10/12 13:48:01

ARAB-BRITISH CHAMBER OF COMMERCE

41

ADVERTORIAL

HOW TO MAXIMISE THE VALUE OF YOUR BRAND

A significant part of the value of a company is its brand in other words its identity, name, reputation, standing, products and services. As the brand is often the dominant asset of most companies it thus becomes capable of becoming the primary collateral in a variety of situations.

Pension deficits, for example, have driven a market for alternative financing solutions including the use of intangible assets such as brands as security for pension schemes. Also in the absence in the modern age of tangible assets e.g. land and buildings on which to lend financial institutions have become more willing in recent times to lend on intangible assets and the value of any company in a sale situation is boosted by the worth of a good brand. Indeed many sales take place on the basis that the purchaser wishes to acquire the vendors brands not the actual business itself.

The key to the use of brands in any of these scenarios is a robust valuation that can be relied upon by the Lender, Pension Trustee or potential Purchaser. It is for this reason that following or in tandem with Trade Mark and Patent Attorney due diligence, valuation can follow the tried and tested process as adopted for International Financial Reporting Standards, particularly on intangible asset purchase price allocation. IFRS 3 approaches provide those people relying on the valuation with methodologies accepted by regulators and audit firms. Also it cannot be assumed that there is one right answer Trustees, Bankers and Financiers will often request various valuation scenarios; for example, going concern, orderly disposal and forced sale.

Valuation Methods Any robust valuation will adopt internationally well-known methodologies.

The Income Approach, as applied using the Discounted Cash Flow Method, measures the value of an asset by the present value of its future economic benefits. These benefits can include earnings, cost savings, tax deductions, and proceeds from disposition. When applied to brand valuations, value indications are developed by discounting expected cash flows

ABCC-EF2.indd 41

to their present value at a rate of return that incorporates the risk-free rate e.g. return on domestically held short dated government bonds, the expected rate of inflation, and risks associated with the particular investment (e.g. a brand). The discount rate selected is generally based on rates of return available from alternative investments of similar type and quality as of the date of valuation. An alternative, capitalisation of earnings may be applied exclusively if a DCF approach is not tenable, or used as a cross-check.

In establishing the cashflows to be used for the DCF in a brand valuation scenario the valuer could adopt the royalty relief technique to drive out the expected cashflows. Royalty relief hypothesises the scenario that if you did not already own the brand what license fee would you be willing to pay to be able to use it.

An alternative is the Market Approach, which measures the value of an asset through the analysis of recent sales or offerings of comparable property. The two primary market approach methodologies are the market multiple method and the similar transaction method. The Market Multiple Method focuses on comparing the subject asset to guideline publicly traded IP and similar IP owning companies. The Similar Transactions Method utilises valuation multiples based on historical change of control transactions that have occurred in the subject companyâ&#x20AC;&#x2122;s industry or related industries to arrive at an indication of value.

Whichever methodology the valuer adopts it must always be informed by financial reality and common sense. Valuation is an art not a science and no valuer should just slavishly follow a financial model. Although the valuer will always adopt internationally accepted valuation methodologies that are trusted worldwide they will still be required to use their own professional judgement.

CONTACTS For more information about Marks & Clerk Consulting services please contact Nigel Higgins at nhiggins@ marks-clerk.com

This article has been written by Ian Brewer, Marks & Clerk Consulting

10/10/12 13:48:04

ECONOMIC FOCUS

ECONOMIC CLIMATE

09 recession; but the home balances remain below their pre-recession levels in 2007, for both sectors. The service sector balances remain disappointingly weak by historical standards. Overall, the results indicate continued weak and inadequate growth in Q2 2012.

The manufacturing sector’s net balance for domestic deliveries fell slightly, from +12% in Q1 to +9% in Q2. The net balance for manufacturers’ home orders rose from +6% in Q1 to +8% in Q2, the strongest level since Q2 2011. Micro manufacturers recorded the weakest Q2 net balances, for both domestic deliveries and orders.

The Regional Perspective The Q2 manufacturing balances for home deliveries were in negative territory in two regions, two regions were at 0%, while eight regions were in positive territory. In the case of home orders, three regions were in negative territory in Q1, one region was at 0%, while eight regions were in positive territory. Comparing the manufacturing sector’s domestic performance across the various regions, the weakest Q2 net balances were in the East Midlands for domestic sales, at -10%, and in the North West for home orders, at -16%. At the other extreme, the best manufacturing net balances in Q2 were in the Wales, at +39% for home sales, and at +38% for home order.

Export Orders and Sales Q Excluding seasonal variation, export sales (export orders) over the past 3 months are: quarter in a row. If this happens, it would be at variance with our survey results. One immediate priority is to ensure that official statistics, which may yet be revised long after they are initially published, do not damage confidence unnecessarily. The real challenges still facing our economy are vast. Businesses must plan for relatively low growth in the next few years, as fiscal austerity restores stability to our public finances and the eurozone’s problems create a challenging environment for our exports.

But UK businesses are resilient, and have huge untapped potential. To empower them, the government must act radically and decisively to support growth. More forceful deregulation, increased infrastructure investment, and the creation of a new business bank will help businesses create jobs and drive growth.

The National Perspective

Up/Same/Down

The Q2 2012 national domestic balances recorded small movements in both directions, but there was little net overall change compared with Q1 2012. The modest improvement recorded in Q1 2012 was mostly maintained, and the domestic balances are higher than their average levels in the 2008-

The National Perspective The Q2 2012 national export balances improved further for both manufacturing and services. All the export balances are considerably stronger than the home balances. In both manufacturing and services

Home Orders and Sales Q Excluding seasonal variation, domestic sales (domestic orders) over the past 3 months are: Up/Same/Down

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10/10/12 13:48:06

ARAB-BRITISH CHAMBER OF COMMERCE

43

The National Perspective In the manufacturing sector the investment in plant and machinery balance fell from +17% in Q1 2012 to +11% in Q2 12, the lowest figure since Q4 2011. The investment in training balance edged upwards to +18%, from +17% in Q1 2012. This is the strongest result since Q1 2008.

In the service sector there was no change on either indicator, as the investment in plant and machinery balance remained at +5% and the investment in training balance stayed at +13%.

While the plant and machinery balance is the joint strongest since Q1 2008, it is very weak by historical standards. The investment in training balance is the joint strongest since Q2 2008.

The Regional Perspective the export balances are now slightly above their average 2007 pre-recession levels. But export growth must strengthen further, given the challenge of rebalancing the economy towards net exports.

The net balance for manufacturing export deliveries rose from +24% in Q1 to +31% in Q2, the strongest level since Q4 2010.

The manufacturing balance for export orders improved from +20% in Q1 to +24% in Q2, the highest level since Q1 2011. The manufacturing sectorâ&#x20AC;&#x2122;s export balances remain stronger than the service export balances, but the gap has narrowed. Micro manufacturing firms recorded the weakest Q2 export balances, for both deliveries and orders.

The improvement in the service export balances in Q2 2012 was slightly larger than for manufacturing. The service export deliveries balance rose by eight points in Q2, to +24%, best level since Q3 2007. The service export orders balance increased by seven points in Q2, to +19%, the equal strongest level since Q4 2006. The Q2 service export balances were broadly similar across various firm sizes.

one region, one region was at 0%, while ten regions were in positive territory. In the case of service export orders, one region was in negative territory in Q1, two regions were at 0%, while nine regions were in positive territory. Comparing service sector export performance across the various regions, the weakest Q1 net balances were in the London, at -2% for export deliveries, and at -2% for export orders. At the other extreme, the strongest Q1 service balances were in Eastern region, at +63% for export deliveries, and at +64% for export orders.

Investment Q Over the past 3 months, what changes have you made to your investment plans: a) For Plant and Machinery: Revised upwards/Revised downwards/No change b) For Training: Revised upwards/Revised downwards/No change

In the manufacturing sector the investment in plant and machinery balance saw only Scotland (-18%) record a negative balance. The next weakest was Northern Ireland at (+3%). The strongest results were recorded in the North East (+26%) and Yorkshire and Humber (+25%).

The investment in training balance witnessed the lowest result in the South West (0%) and the highest in Wales (+45%).

In the service sector, Scotland (-16%), East Midlands (-1%) and Northern Ireland (-4%) recorded negative results for the investment in plant and machinery balance.

The strongest positive balance was recorded in the East of England at +23%. The investment in training balance recorded one negative balance at -1% (Scotland), and the strongest result at +28% (East of England).

Business Confidence Q Do you believe that over the next 12 months: a) Turnover will: Improve/Remain the same/ Worsen b) Profitability will: Improve/Remain the same/Worsen

The Regional Perspective The Q2 2012 manufacturing sectorâ&#x20AC;&#x2122;s net balances for export deliveries were in positive territory in all the twelve regions.

In the case of export orders, eleven regions were in positive territory in Q2, while one region was in negative territory. Comparing manufacturing export performance across the various regions, the weakest Q2 balance were in the West Midlands, at +6% for export sales and at -2% for export orders. At the other extreme, the strongest Q2 service balances were in the South East, at +66% for export deliveries, and at +63% for export orders.

The Q2 2012 service sector balance for export deliveries was in negative territory in

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10/10/12 13:48:07

ECONOMIC FOCUS ADVERTORIAL

DUBAI MEANS BUSINESS

“Starting a business is a huge amount of work, requiring a great deal of time, so you better make sure that you enjoy what you are about to do or just don’t do it at all.

Adrian Oton, Senior Partner Commercial Division, Europe Emirates Group – Dubai Offi ce, commented: “I am often asked how you create a leading Premium Brand and the truth is there is no secret to it. It is sheer dedication a passion to succeed and appointing a Senior Management Team that do not work just 9 to 5.

“When I started Europe Emirates from an initial idea, I did not set out to build a the best service provider organization in the UAE, the initial idea was that it would cover expenses and a little profi t, there was little strategy and little thought but a lot of passion and an engrained determination to doing it professionally and above all doing it right.

“This is the secret of how Europe Emirates became the Leading Corporate Services Provider in Dubai, by delivering a fi st class service.

We are a service company and we provide the best service at value for money prices and this is what sets us above from the Crowd.

“We do not provide a so-called Luxury Service at exorbitant pricing, we provide a Premium Service at a reasonable price and our service is equal or above what others who describe themselves as luxury.

Another important ingredient to our success is we specialise and endorse that in today’s market place, a one-hat fi ts all quick fi x is neither what the client pays for nor what the clients expects.

With our strong commitment to the UAE we provide a One Stop Concept for Individuals & Businesses wanting to set up in the UAE, our services are to lengthy to list in this article however visit our web page www.uae-eu. com .

Dubai Means Business Thanks to the EU Savings Directive of 2003 and recent US-EU initiatives to wipe out tax havens, the U.A.E has become the better place to incorporate offshore companies for various reasons and purposes.

UAE looks set to reap the rewards of a recent EU and US ruling under which banks are now forced to reveal information to tax authorities. Financial institutions in the EU and US are now obliged to either disclose tax and bank information to the relevant tax authority, or charge client a hefty withholding tax.

Though the new directive specifi cally affects EU residents, a number of banks in ‘tax havens’ have also agreed to exchange customer information, including Jersey, Guernsey, the Isle of Man, the Cayman Islands, Switzerland, Liechtenstein, Monaco and San Marino.

The United Arab Emirates has long enjoyed a reputation as a secure, tax-free jurisdiction for international banking and company incorporation. With this latest development from Europe and the US, UAE company

ABCC-EF2.indd 44

registration and corporate and personal banking options are becoming more popular with international businesses and high net worth individuals.

Since the UAE are neither a signatory to the relevant directive, nor agreeing to cooperate with the Organisation of Economic Cooperation and Development (OECD), Dubai is the prefect Jurisdiction for 21st Century Business.

CONTACTS The Fairmont Dubai Office 508, 5th Floor PO BOX 75671 Sheikh Zayed Road Dubai, United Arab Emirates Tel: +9714 311 6547 Fax: +9714 332 8810 adrian@uae-eu.com www.uae-eu.com

10/10/12 13:48:09

ABCC-EF2.indd 45

10/10/12 13:48:13

ECONOMIC FOCUS

Humber Bridge

The National Perspective In Q2 2012, the confidence balances improved for manufacturing and remained broadly unchanged for services. The balances are much stronger than their average levels in the 2008-09 recession, but are still weak by historical standards, particularly for services.

The confidence balance that manufacturing turnover will improve in the next 12 months rose from +37% in Q1 to +44% in Q2, the strongest level since Q4 2010. The confidence balance that manufacturing profitability will improve in the next 12 months increased from +21% in Q1 to +24% in Q2, also best level since Q4 2010. Micro manufacturing firms recorded the weakest Q2 confidence balance for both turnover and profitability.

ABCC-EF2.indd 46

The confidence balance that service sector turnover will improve in the next 12 months was +30% in Q2 2012, the same level as in Q1 2012. The confidence balance that service sector profitability will improve in the next 12 months fell marginally from +14% in Q1 to +13% in Q2. The service confidence balances are not only much weaker than their prerecession levels in 2007, but also below their long-term historical averages. Large service firms recorded the weakest Q1 confidence balances for both turnover and profitability.

positive territory in all twelve regions. In the case of profitability confidence, one region was in negative territory in Q2, while eleven regional balances were in positive territory.

Comparing manufacturing confidence across the various UK regions, the weakest Q2 confidence balances were in Northern Ireland for turnover, at +20%, and in Scotland for profitability, at -7%. At the other extreme, the strongest Q2 manufacturing confidence balances were in London, at +67% for turnover, and at +43% for profitability.

The Regional Perspective

In the service sector, the Q2 2012 balances for turnover confidence were in positive territory in eleven regions, while one region was in negative territory. In the case of profitability

The manufacturing sectorâ&#x20AC;&#x2122;s Q2 2012 net balances for turnover confidence were in

10/10/12 13:48:17

ARAB-BRITISH CHAMBER OF COMMERCE

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Canary Wharf, London

confidence, we find the same pattern: eleven regions were in positive territory in Q1, while one regional balance was negative.

Comparing service sector confidence across the regions, the weakest Q2 balances were in Scotland, at -23% for turnover and at -36% for profitability. At the other extreme, the strongest Q2 service sector balances were in Eastern region for turnover confidence, at +47%, and in the West Midlands for profitability confidence, at +36%.

Capacity Utilisation and Cashflow Q Are you currently operating: At full capacity/Below full capacity Q During the last 3 months how has your cashflow changed: Improved/Same/Worsened

Capacity Utilisation The National Perspective In the manufacturing sector the capacity utilisation result increased by three percentage points, rising from 36% in Q1 2012 to 39% in Q2 2012. This is the second strongest result since Q3 2010, following a result of 44% in Q4 2011. Q2 2012 is the fourth strongest result since Q2 2008.

In the services sector the percentage of firms stating that they were operating at full capacity edged up by one percentage point to reach 36%, the highest result since Q2 2011. Since the 2008/09 recession ended there has only been one result that has been higher than this, which was 38% recorded in Q2 2011.

The Regional Perspective In the manufacturing sector the highest proportion of firms reporting that they were operating at full capacity was recorded in London (56%). This was followed by Wales

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(48%). The region with the lowest capacity utilisation figure was in the East Midlands (18%).

In the services sector the region reporting the highest capacity utilisation figure was Yorkshire and the Humber (47%). The lowest figure was recorded in the North East (30%).

Cashflow The National Perspective In the manufacturing sector the cashflow balance edged up one point to reach +2%.

This result is the third quarter in a row that a positive result has been returned, something that has not happened since the final three quarters of 2007. Nevertheless, it is still incredibly weak and this balance has only been in double digit positive territory once since the final three moths of 2007.

In the service sector the cashflow balance rose by three points, reaching -1%. This is the highest result since Q4 2010. This balance has not been positive since the first three months of 2008, with the highest balance being achieved a result of 0% in Q4 2010.

The Regional Perspective In the manufacturing sector Scotland (-7%), West Midlands (-7%), Wales (-2%), Northern Ireland (-14%), East of England (-17%) and the South East (-22%) were the regions recording negative cashflow balances. Of the remaining regions, London (+43%) recorded the strongest result.

St Pancras, London

In the services sector, Scotland (-10%), the North East (-7%), Northern Ireland (-6%), South East (-7%) and London (-3%) were in negative territory. Of those in positive territory the East of England (+9%) returned the strongest result.

Published with the permission of the British Chambers of Commerce, from whom the full report can be obtained.

10/10/12 13:48:20

ECONOMIC FOCUS CHAMBER NEWS

BUSINESS ROUNDTABLE WITH SAUDI MINISTER OF COMMERCE & INDUSTRY The Chamber was pleased to have been able to host His Excellency, Tawfiq Al-Rabiah, the Minister of Commerce and Industry for the Kingdom of Saudi Arabia for a ministerial business roundtable on 22 March.

The Minister was formally welcomed to the Chamber by Dr Afnan Al-Shuaiby, Secretary General & Chief Executive Officer of the A-BCC, who stated that the special roundtable discussion would highlight the many new opportunities for trade and investment between the United Kingdom and Saudi Arabia.

The high-level meeting was attended by specially invited guests, including senior government officials, former ministers, Directors of the Chamber and leading executives from the business and finance sectors.

The two countries were key strategic partners whose bilateral links were becoming increasingly diversified.

The roundtable highlighted the enormous opportunities that are opening up for exporters and investors in today’s booming Saudi economy in a wide range of sectors from new infrastructure developments to education, IT, training and healthcare.

Chairing the discussion, Baroness Symons, Chairman of the A-BCC, welcomed the increased government-led bilateral activities over the past 18 months aimed at stepping up trade and investment between the two countries.

Trade between the two countries was increasing. According to UK Trade & Investment, Saudi exports to the UK market increased by 39% to in 2010 to reach $1.5 billion and over the same period UK exports of visible goods to the Kingdom increased by 16% to reach $4.6bn.

In addition, UK exports of services are estimated to account for a further $3bn, as well as exports via ports in the UAE, which are not included in the figures.

The UK was the second largest foreign investor in the Kingdom after the United States with UK companies investing up to £20bn. Leading players in the market such as Shell, HSBC and BAE Systems, were all major employers of Saudi nationals. In addition, there were currently around 200 UK-Saudi joint ventures of a total estimated investment value of around $17.5bn.

The Minister expressed his deep appreciation of the Chamber for holding the event and paid tribute to its work on behalf of facilitating improved cooperation between Saudi Arabia and the UK. He mentioned the improved growth achieved by the Saudi economy and said that British firms were making positive contributions.

The Saudi Minister for Commerce and Industry also stressed the need for more partnerships with local firms and invited more UK companies to invest in the Kingdom.

UK firms had a good reputation for expertise and were highly respected in the Kingdom.

Dr Afnan Al-Shuaiby delivered a presentation outlining the role of the Chamber and its numerous business services. Her presentation also focused on the many activities carried out by the Chamber which have been aimed at promoting Saudi-British business relations and the Saudi market.

HRH Prince Mohammed bin Nawaf, the Ambassador of Saudi Arabia to the UK, underlined the importance of British-Saudi business links.

Edward Oakden, Managing Director, Strategic Trade, UTI and a former British ambassador, emphasised the key strategic partnership between the UK and the Kingdom, explaining that the UK was aiming to have Saudi Arabia as one of the top five countries with which it is doing business.

Other participants in the discussion which touched on a wide range of sector opportunities included Chris Innes-Hopkins, Head of UKTI in Riyadh, former UK minister for security Lord West of Spithead and Mr Terry Stone OBE, a Director of the Chamber and retired senior partner of Ernst & Young.

Second right: His Excellency, Tawfiq AlRabiah, the Minister of Commerce and Industry for the Kingdom of Saudi Arabia

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H E Tawfiq Al-Rabiah was appointed Saudi Arabia’s appointment as Minister for Commerce and Industry in December last year. Before this he was director general of MODON, the Saudi Industrial Property Authority, and previously worked for SAGIA as Director General of the Information and Communications Technology sector.

10/10/12 14:15:07

ARAB-BRITISH CHAMBER OF COMMERCE

JORDAN AMBASSADORIAL ROUNDTABLE On 22 March the Chamber was pleased to host an Ambassadorial Roundtable with His Excellency Mr Mazen Kemal Homoud, Ambassador of the Hashemite Kingdom of Jordan to the United Kingdom.

Welcoming the Ambassador to the Chamber, Dr Afnan Al-Shuaiby opened the discussion on opportunities in Jordan by pointing to the strong relations that the Kingdom enjoyed with the UK. The Chamber was working to help companies to achieve success in the Jordanian market and welcomed the deepening of the partnership between the two countries, she said.

Baroness Symons remarked that Jordan was an important factor for stability in the region and as a country it deserved support.

H E Mazen Kemal Homoud, the Ambassador, said he was passionate about what his country had to offer and urged outside investors to seriously consider the market opportunities.

He outlined some of the key factors that made Jordan an attractive market for investors such as market access, security of investment and its laws and infrastructure.

The Jordanian economy, he said, was one where there were few restrictions on investors and doing business.

Jordan had long enjoyed fully operational

H E Mr Mazen Kemal Homoud, Ambassador of the Hashemite Kingdom of Jordan to the UK

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free trade agreements with major economies such as the US which meant there were no barriers on entry into these markets for Jordanian products. Similar trade agreements were in place with the GCC, Egypt, Turkey and Singapore, the Ambassador stated.

The Kingdom provided a base for UK companies seeking to access the wider Arab markets and up to one billion consumers worldwide.

The Ambassador stressed that Jordan had received support from the European Union and the US to upgrade its legal system in line with international standards to deal with business law cases.

Solid infrastructure was in place to support investors and companies seeking to set up in Jordan receive help to avoid risks and carry out market research.

The efficiency of the business infrastructure was shown in the growth in exports over the years.

Jordan’s approach to attracting investment was achieving results: for example, between the

49

years 2000 and 2011, the value of exports to the US had increased from $15 million to $1.2 billion, the Ambassador said.

H E Mazen Kemal Homoud went on to describe some of the leading mega projects currently being developed in Jordan and explained the opportunities that existed for investors.

One important project was the Red-Dead Sea Canal Project which was becoming more important to meet the water challenge that Jordan was facing.

The construction of the canal, which was supported by the World Bank, was opening up the prospect of a whole new infrastructure of desalination and power plants.

Another mega project was the plans for Jordan’s rail network which would link in to the Arab rail network connecting the Arab world to Turkey and Europe.

The nuclear power industry was another mega project which had emerged with the discovery of uranium deposits in Jordan and offered a solution to the Kingdom’s future energy needs.

Finally, there was a plan for the construction of a LNG terminal in Aqaba.

In conclusion, the Ambassador pointed to the new economic dialogue between the UK and Jordanian governments which aimed at improvements in trade, investment and job creation for mutual benefit.

MEMBERS’ NETWORKING EVENT The Chamber earlier in the year held a networking event for new members to enable companies to familiarise themselves with the office resources, staff and services of the Chamber.

The event, which took place on the morning of 9 March, proved to be extremely successful as it was very well received by the members who were present judging by the positive feedback that was received.

The event provided each member with an opportunity to deliver a short presentation on their company, their services, products and business activities. There was ample time for networking enabling everyone to interact with each other in an informal setting.

It also provided an opportunity for members to meet the Chamber’s staff who are responsible for delivering the services that they use.

10/10/12 13:48:25

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10/10/12 13:48:38

ECONOMIC FOCUS CHAMBER NEWS

CHAMBER ANNUAL DINNER 2012

The Arab British Chamber of Commerce held its 2012 Annual Dinner on the evening of 2nd July at the prestigious London Hilton, Park Lane.

The Chamber was delighted with the high attendance at the event which was an indication of the wide level of respect for the organisation among the business community.

The dinner was a celebration of the work of the Chamber and an opportunity to thank its members and business partners for all their support.

Attended by many distinguished guests and members of the Chamber, the evening was presided over by Dr Afnan Al-Shuaiby and Baroness Symons of Vernham Dean.

The Chamber was privileged to be joined by Baroness Ashton of Upholland, the European Union High Representative for Foreign Affairs and Vice President of the European Commission, who was the special guest of honour and who delivered a keynote speech broad ranging in scope.

The specially invited guests included many of the senior decision makers, ministers, diplomats and chief executives who work have closely with the Chamber over the past year.

Baroness Symons of Vernham Dean

Dr Afnan Al-Shuaiby

She also spoke about the important role played by the Chamber in the strengthening of this enduring Anglo-Arab partnership.

Baroness Symons said the Chamber was now in good shape and had ambitious plans for the future.

In a wide-ranging keynote address Baroness Ashton reflected the perspective of the European Union countries on the main challenges facing the Middle East in the light of the “Arab Spring” and highlighted the importance of cooperation.

Baroness Ashton of Upholland

Dr Afnan Al-Shuaiby said that the Chamber, as “a dynamic forward-looking organisation”, was determined to offer the best assistance to its members by ensuring that its services remained relevant to today’s business needs.

Each of the speakers struck the right balance between lightness of touch and reflections on the more serious issues and they were all very well received by the guests in what was a highly enjoyable occasion for everyone.

The event provided an opportunity for the Chamber to thank and acknowledge the invaluable support it has receives from strategic partners in both Britain and the Arab world.

Dr Afnan Al-Shuaiby emphasised the Chamber’s deep appreciation to the Arab Ambassadors, for their ongoing support without which the Chamber would not be able to perform its duties and fulfil its functions.

Dr Afnan stressed that the evening was also an opportunity to celebrate the dynamic and enduring partnership enjoyed by Britain and the Arab World which she described as a “mutually advantageous relationship”.

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From the left: H E Mr Abdulrahman Ghanem Almutaiwee, the UAE Ambassador, H E Mr Amar Abba, the Algerian Ambassador, Dr Afnan Al-Shuaiby, the Rt Hon Baroness Ashton of Upholland, European Union’s High Representative for Foreign Affairs and Security Policy, H E Dr Samuel Moncada, Venezuelan Ambassador, H E Mr Abdulaziz Abdullah Al Hinai, Oman Ambassador, H E Mr Ivan Romero-Martinez, Honduran Ambassador and the Rt Hon Baroness Symons of Vernham Dean.

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Dr Afnan Al-Shuaiby, H E Mazen Homoud, the Jordanian Ambassador, and Mrs Cherie Blair.

Dr Afnan Al-Shuaiby, Baroness Ashton of Upholland and Baroness Symons of Vernham Dean

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10/10/12 13:48:45

ECONOMIC FOCUS CHAMBER NEWS

SAUDI LAW & JUSTICE FORUM

From left: Dr Afnan Al-Shuaiby, Baroness Scotland, former Attorney General for England and Wales, Dr Mansour Bin Saleh Khunaizan, Chairman Bin Saleh Law Firm, H E Dr Muhammad bin AbdulKareem Al-Issa, Justice Minister of the KSA, Lord Falconer, former Lord Chancellor of the UK, and Baroness Symons of Vernham Dean.

The Arab-British Chamber of Commerce was pleased to host a forum with the Saudi Justice Minister, His Excellency Dr Muhammad bin Abdul-Kareem Al-Issa on the evening of 25 April.

Presided over by Dr Afnan Al-Shuaiby and Baroness Symons, the Saudi Law & Justice Forum attracted more than 150 delegates comprising senior members of the legal profession and business executives from various sectors.

Joining the panel discussion were Lord Falconer, the former British Lord Chancellor and Baroness Scotland, former Attorney General for England and Wales.

The event held at the prestigious Four Seasons Hotel in London’s Park Lane was sponsored by the Bin Saleh Law Firm whose Chairman, Dr Mansour Bin Saleh Khunaizan, completed the panel of speakers.

The forum addressed all aspects of the Saudi legal system including commercial law and the potential for enhancing partnership between Britain and the Kingdom of Saudi Arabia in the legal field.

AIWF CONFERENCE IN SHARJAH Dr Afnan Al-Shuaiby undertook an official visit to Sharjah in May 2012 to participate in the annual conference organised by the Arab International Women’s Forum (AIWF).

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The international conference was formally opened by His Highness Sheikh Dr Sultan Bin Mohammad Al Qassimi, Supreme Council Member, Ruler of Sharjah and President of American University of Sharjah.

The Ruler of Sharjah thanked Mrs Haifa Fahoum Al Kaylani, Chairman of the AIWF and the conference organisers, for their efforts and wished them success.

Taking as its theme, "Emerging Economies, Emerging Leaderships: Arab Women and

The Minister stressed that the Kingdom adopted the principle of an independent judicial system over a hundred years ago and that judges remained fully independent and operated free from interference of outside authorities.

The Justice Minister commended His Majesty King Abdullah’s support for the legal system and pointed out that the introduction of new technology and computerisation would improve the efficiency of the decision making process in the courts.

Youth as Drivers of Change," the two-day conference, held on 16 and 17 May, brought together Arab and international global leaders to the University of Sharjah (AUS), which is recognised as one of the leading centres of academic excellence in the Arab world.

During the conference, eminent guest speakers and high profile participants examined the role of women and youth as drivers of change in emerging economies.

Dr Afnan delivered one of the keynote speeches at the conference on the subject of “Innovators and Entrepreneurs in Emerging Economies”.

As well as exploring strategies to implement policy recommendations already identified at the AIWF's 10th anniversary conference held in London in May 2011, the conference sought to identify enablers for job creation in emerging economies, taking the unique opportunities presented within the Arab World to help shape future policy, reinforcing the message that gender equality is vital for sustainable development.

The Chamber has a MOU with the AIWF and works closely with the organisation to pursue common objectives of improving cooperation between businesswomen in the UK and the Arab World.

10/10/12 13:48:50

ARAB-BRITISH CHAMBER OF COMMERCE

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ADVERTORIAL

STEWART GEDDES INTERNATIONAL BUSINESS CONSULTANT This is where Stewart Geddes comes in After a successful career in Commercial banking, Stewart (50) who is also a qualified management accountant, has launched an exciting new service for companies who are looking to cash in on the booming Brazilian economy.

Stewart Geddes

When people talk about Brazil, many people think first of football, then Carnival in Rio de Janeiro with the famous beaches of Copacabana and Ipanema as well as the famous statue of Christ the Redeemer. You might also think of coffee and perhaps Brazil nuts.

It’s unlikely that you will realise that Brazil is an advanced industrial country manufacturing passenger jets, advanced jet trainers for the RAF not to mention a huge automotive industry as well as vast exports of iron ore, beef and orange juice.

Brazil recently overtook the UK as the worlds 6th largest economy and offers huge opportunities, with a population of 204 million people and a rapidly emerging middle class hungry for high quality goods and services.

No one thinking of doing business in Brazil should underestimate the challenges facing the entrepreneur.

Firstly you have to understand that although the Brazilians are largely of Southern European descent, warm and hospitable you will not succeed if you turn up shake a hand and expect to talk about business straight away.

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The key to successful business in Brazil is relationships. You have to get to know your business partners. Time spent over dinner and lunch is not wasted because it is by taking that time that you show that you are interested in getting to know them and to build the trust essential to doing business.

Secondly you need to understand the legal and bureaucratic requirements. Brazil’s bureaucracy is legendary and there is no way round the rules and regulations. Anyone who suggests otherwise is kidding you and themselves so it’s worthwhile hiring a good lawyer to guide you through the processes from the outset.

Thirdly get support. UKTI should be the first call. They know the requirements and can introduce you to business contacts and lawyers.

A native Portuguese speaker who grew up in the North of Brazil, Stewart not only speaks Portuguese but he understands the culture and how to build the relationships so vital to doing business there. He can help you to build bridges. Exactly how this happens will depend on the client but it can range from sitting quietly in a meeting and briefing you on what was actuallysaid later on to fronting a team and translating conversations.

Stewart can also be your eyes and ears on the ground and an interface with local agents.

So, if you want to do business in Brazil or if your business in Brazil is not going as well as you would like give Stewart a call or drop him an email.

Stewart is based in Edinburgh but travels across the UK to work with clients.

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However what happens then? You’ve been introduced to a business contact, you have the legal arrangements.... How do you build the relationships?

10/10/12 13:48:54

Intertek - helping your exports get the green light through customs For many decades Intertek have helped companies certify their products to aid efficient customs clearance in Algeria, Bangladesh, Botswana, Ecuador, Egypt, Kuwait, Mexico, Nigeria, Qatar, Mozambique, Russia, Saudi Arabia, Tanzania, The Philippines and Uzbekistan.

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13:52:16

ARAB-BRITISH CHAMBER OF COMMERCE

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ADVERTORIAL

EXPORTING TO THE MIDDLE EAST

The Public Authority for Industry of the State of Kuwait (PAI) has implemented guidelines to verify the conformity of all ‘Regulated Products.’ These guidelines are diligently enforced, and form the Kuwait Conformity Assurance Scheme (KUCAS).

The scheme is a group of procedures carried out

by PAI to verify the conformity of all ‘Regulated Products’ to Kuwait’s Technical Regulations on imported and domestic products.

The scheme in brief: All consignments of imported goods which contain regulated products must be accompanied by a Technical Inspection Report (TIR).

This is the first in a series of articles which look at the legal and cultural issues associated with operating a commercial venture in Saudi Arabia.

How to comply with export and import standards and achieve smooth customs clearance.

Conformity Programme through the Ministry of Commerce and Industry (MoCI).

Many countries within the Middle East have put stringent requirements in place to ensure their consumers are protected from substandard products and goods.

Exporters are required to obtain a Certificate of Conformity (also referred to by exporters as a SASO Certificate). The PCP is mandatory for all goods exported to Saudi Arabia except for:

Conformity Assessment Programmes have been implemented to verify safety and performance of goods.

l Medical equipment

Traders exporting to these countries need to be fully aware of the requirements since failure to comply with them can be costly, leading to potential delays in Customs clearance, financial penalties or even goods being returned to the port of origin.

Intertek has been working in the region for many years and as an Accredited Certification Body we have been assessed and approved by the applicable government departments in the importing countries meaning that we are competent to test and certify your shipments and our certificates are recognised and trusted by Customs.

The Kingdom of Saudi Arabia is one such country that has implemented a Product

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l Medical products l Food l Military products

The Saudi Food & Drug Authority has recently announced that all mouthwash and similar products containing alcohol are banned.

New vehicles also require a Certificate of Conformity .

Various labelling requirements apply such as Country of Origin, Energy Efficiency and language requirements for instructions.

Electrical regulations include acceptable voltages with 127V products being banned from 21 May 2012, mandatory criteria also apply to plugs and sockets.

The Saudi Arabia programme is stringently enforced.

The TIR is required to ensure smooth Customs clearance of shipments in Kuwait.

The TIR confirms that the products comply with the relevant Kuwait technical regulations and approved international/ regional/national standards.

The authorities in Kuwait may take random samples from imported consignments to verify compliance.

Regulated products include, but are not limited to, electrical toys, domestic and commercial electrical products, vehicles, melamine dinnerware, chemicals and building materials.

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Qatar The Government of the State of Qatar, has issued strict rules regulating the import and sales of Vehicle Spare Parts and Vehicle Tyres. Vehicle tyres and spare parts now require a Certificate of Conformity to be cleared through Customs. Intertek has been accredited to issue these certificates.

Having issued more that 1.5 million test reports and certificates to exporters worldwide, Intertek is best placed to help companies ensure that they comply with both export and import requirements. For the very latest in regulatory changes and additions visit www.intertek.com/government/ regulatoryupdates

10/10/12 14:15:45

ECONOMIC FOCUS

NEW MEMBERS OF THE CHAMBER WE WELCOME THE FOLLOWING COMPANIES TO MEMBERSHIP OF THE ARAB-BRITISH CHAMBER OF COMMERCE...

Addleshaw Goddard LLP Milton Gate 60 Chiswell Street LONDON EC1Y 4AG Tel: +44(0)20-7606 8855 Fax: +44(0)20-7606 4390 Email: info@addleshawgoddard.com; claire. northcote@addleshawgoddard.com; Website: www.addleshawgoddard.com Contact Ms Claire Northcote International Development Business Activity: International law firm with expertise in Commercial Services, Corporate, Litigation, Finance & Projects, Private Capital and Real Estate.

A1 Company Services Limited Winnington House 2 Woodberry Grove North Finchley LONDON N12 0DR Tel: +44(0)20-8492 6363/ Direct: +44(0)208492 6386 Fax: +44(0)20-8492 0196 Email: simon.evans@a1companies.com Website: www.a1companies.com Contact Mr Simon Evans Secretarial Manager Business Activity: Company formation agent, also offering nominee, secretarial and legalisation services Al-Masader Al-Dualiyah for Environment and Quality Systems Co Emirates NBD Capital Building, 2nd Floor Prince Mohammed Bin AbdulAziz Street, PO Box 300297, Olaya District Riyadh 11372 SAUDI ARABIA Tel: +966 1 462 2926 Fax: +966 1 465 3560 Email: peter.smith@ri-global.com; ibrahim. shabib@ri-global.com Website: www.ri-global.com Contact Dr Peter Smith Partner Business Activity: Saudi-British joint venture that helps build successful business relationships between Europe and the Middle East by providing unparalleled access to key decision makers in a confidential and ethical business environment.

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Bin Saleh Law Office Al Ehsa Street Malaz P O Box 33580 Riyadh 11458 SAUDI ARABIA Tel: +966 1 473 5333 Fax: +966 1 473 6333 Email: mansoor@binsaleh-law.com Website: www.binsaleh-law.com Contact Mr Mansoor Saleh Al Khenyzan Managing Director Business Activity: Law firm that also deals with trade and construction BVLGARI Hotel & Residences 171 Knightsbridge LONDON SW7 1DW Tel: +44(0)20-7591 2405 Fax: +44(0)20-7581 5810 Email: zineb.faress@bulgarihotels.com Website: www.bulgarihotels.com Contact Miss Zineb Faress Senior Sales Manager Business Activity: Hotel Calcom Holdings Ltd t/a G6 Global The Old Workshop Hortham Farm Almondsbury BRISTOL South Gloucestershire BS32 4JW Tel: +44(0)1454- 610050 Fax: 0870-7622167 Email: andrew@g6-global.com; john@g6global.com Website: www.g6-global.com Mr Andrew J Clark Managing Director Business Activity: Radio and Satellite communications for Private Security and Military Companies, Close Protection, Residential Security, Surveillance Operators, Armed Protection, Oil, Mineral and Gas Exploration. Also extensive training capability both in the UK and overseas.

CiC 23 Kensington Square LONDON W8 5HN

Tel: +44(0)20-7937 6224 Fax: +44(0)20-73761914 Email: Javier.Paredes@cic-eap.co.uk Website: www.cic-eap.co.uk Contact Mr Javier Paredes Senior Account Manager Business Activity: Counselling services in Arabic and English including telephone advice lines, lifestyle support, work-life solutions, critical incident and trauma response, organisational consultancy, employee wellbeing packages, mediation and training.

City Events Limited Fifth Floor One Tudor Street LONDON EC4Y 0AH Tel: +44(0)20-7936 5221 Email: rory@cityevents.uk.com Contact Mr Rory Heron Managing Director Business Activity: International event management and sports marketing agency.

Exclusive consultancy rights to sell official VIP hospitality at London 2012 Olympics Clay Rogers & Partners Limited C R House 44/45 Water Street BIRMINGHAM B3 1HP Tel: +44(0)121-212 9212 Fax: +44(0)121-212 9213 Email: advisors@clayrogers.com Website: www.clayrogers.com Contact Mr Tim Clay Executive Chairman Business Activity: Financial servicesindependent financial advisors e2S Warning Signals Impress House Mansell Road LONDON W3 7QH Tel: +44(0)20-8743 8880 Fax: +44(0)20-8740 4200 Email: stuart.mason@e2s.com Website: www.e2s.com Contact Mr Stuart Mason Export Sales Manager Business Activity: Manufacturer of warning signals for oil, gas, petrochemicals and industrial applications

10/10/12 13:48:57

Euro Art Limited 56 Standard Road Park Royal LONDON NW10 6EU Tel: +44(0)20-8453 1017 Fax: +44(0)20-8961 2791 Email: saad@ans-brass.com Website: www.ansbrass.com Contact Mr Saad Sufi Export Manager Business Activity: Importer, wholesaler of door handles and architectural ironmongery EPGI Rosebery House 4 Farm Street Mayfair LONDON W1J 5RD Tel: +44(0)20-8944 6756 Fax: +44(0)20-8944 6756 Email: andrea@epgi.com; ad@camco.ch Website: www.epgi.com Contact Ms Amar Daghestani-Barrow Business Manager Middle East Projects Business Activity: Design-led real estate development company active in residential, commercial and retail sectors.

DG510 Limited Lower Ground Floor 145-157 St John Street LONDON EC1V 4PW Tel: +44(0)20-3544 9275 Fax: +44(0)20-8392 8209 Email: deb.sidhu@dg5ten.com Website: www.dg5ten.com Contact Mr Deb Sidhu Chairman & Chief Executive Officer Business Activity: Global security risk consultancy to multinational corporations, high-net-worth individuals and governments.

Fahad Al Suwaiket and Bader Al Busaies Attorney at Law Al Salah Tower 3rd Floor, Suite 308 Prince Faisal Bin Fahad Street Al-Khobar PO Box 7432 3195 SAUDI ARABIA Tel: +966 3 887 7512 Fax: +966 3 887 7638 Email: sb@sb-lawyersweb.com Website: www.sb-lawyersweb.com Contact Dr Bader Al Busaies Attorney at Law & Managing Partner Business Activity: Services in all areas of law and shariah, Corporate International, Company set up, Draft and reviewing Contract, Liquidation, Finance & Investment, Information technology, Intellectual Property, Taxation, Insurance, Privatisation, Environmental concerns, Oil & Gas, Maritime, Real Estate, Labour and Employment, Arbitration and Litigation.

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ARAB-BRITISH CHAMBER OF COMMERCE

Firetrap Limited One Western Avenue Business Park Mansfield Road LONDON W3 0BZ Tel: +44(0)20-8753 0052 Fax: +44(0)20-8753 0001 Email: linda.cannolly@firetrap.com Website: www.firetrap.com Contact Ms Linda Lashley Customer Services Team Leader Business Activity: Casual wear designers and wholesalers Libya Business TV 12 Hallmark Trading Centre Fourth Way WEMBLEY Middlesex HA0 0LB Tel: +44(0)845-434 8284 Email: muftah@libyabusiness.tv Website: www.libyabusiness.tv Contact Mr Muftah Benomran CEO Business Activity: Media and business partners for UK and international companies wishing to partner with Libyan counterparts.

Support for companies seeking to establish business in Libya.

Mediareach Advertising 1 Fulham Business Exchange The Boulevard, Imperial Wharf Imperial Road LONDON SW6 2TL Tel: +44(0)20-7751 3333 Email: saad.saraf@mediareach.co.uk Website: www.mediareach.co.uk Contact Mr Saad Al-Saraf CEO Business Activity: Advertising, consultancy, digital, experiential, media, PR, production and lobbying Gibbs S3 Ltd SBC House Restmor Way WALLINGTON Surrey SM6 7AH Tel: +44(0)20-8773 7650 Fax: +44(0)20-8773 7651 Email: farida@gibbs-s3.com Website: www.gibbs-s3.com Contact Ms Farida Gibbs CEO Business Activity: Global staffing company for IT & business change, resource project solutions and consulting with expertise across financial services, investment banking, insurance, oil & gas, consumer goods and pharmaceuticals.

Humber Work Boats Limited North Killingholme Haven GRIMSBY North East Lincolnshire DN40 3LX Tel: +44(0)1469-540 156 Fax: +44(0)1469-540 303 Email: dsymon@humberworkboats.co.uk Website: www.humberworkboats.co.uk

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Contact Mr David Symon Managing Director Business Activity: Marine and dredging contractors and vessel builders IPD Think Tank for Development and Evolution Stratiotikou Syndesmou 14A Athens 10673 GREECE Tel/Fax: +302 1 0361 8692 Email: ipd@otenet.gr Contact Mr Nikolaos Samaras Chairman Business Activity: research ITSC Limited 9 Northfields Prospect Northfields LONDON SW18 1PE Tel: +44(0)20-8874 7282 Fax: +44(0)20-8874 7539 Email: info@itscltd.com Website: www.itscltd.com Contact Mr Nabeel Ahmed Director Business Activity: Multidisciplinary engineering and planning corporation which operates worldwide through a network of regional companies and branches.

Knox Dâ&#x20AC;&#x2122;Arcy Investment Management Limited 11 St Jamesâ&#x20AC;&#x2122;s Place LONDON SW1A 1NP Tel: +44(0)20-7495 2202 Fax: +44(0)20-7495 3303 Email: nparr@knoxdarcy.com; info-im@ knoxdarcy.com Website: www.knoxdarcy.com Contact Mr Nick Parr Investment Professional Business Activity: Private equity and investment KCS Group Europe Limited Graysted The Triangle UPPER BASILDON Berkshire RG8 8LU Tel: +44(0)1491-672 355 Fax: +44(0)1491-671 495 Email: bgroom@kcsgroup.com Website: www.kcsgroup.com Contact Mr Stuart Poole-Robb CEO Business Activity: Corporate security Mak Power UK Limited Unit 16/17 Ashley Heath Industrial Estate Ringwood Road Three Legged Cross DORSET BH21 6UZ Tel: +44(0)1202-820990 Email: stephen@makpower.co.uk Website: www.makpower.co.uk Contact Mr Stephen Vine Director Business Activity: Innovative power based products that utilise the latest technologies

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delivering tomorrowâ&#x20AC;&#x2122;s solutions today

Wastewater Treatment (Industrial & Residential) â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘

Membrane bio-reactor system MBR Containerised / Mobile MBR system Extended aeration sludge activated system Sequential Batch Reactor SBR

Desalination / Water Treatment â&#x20AC;˘ Sea Water Reverse Osmosis systems (SWRO) â&#x20AC;˘ Brackish Water Reverse Osmosis systems (BWRO) â&#x20AC;˘ Micro / Ultra filtration

ACWA Emirates LLC, Dubai Silicon Oasis, Le Solarium Building, 6th Floor, OfďŹ ces 604 to 608, PO Box 118803, Dubai, UAE T: +971 (0) 4 3821 900 E: acwa@acwa.ae www. acwa.co.uk

Design â&#x20AC;˘ Engineering â&#x20AC;˘ Air, Water & Wastewater Plants â&#x20AC;˘ Installation â&#x20AC;˘ Commissioning â&#x20AC;˘ Operation & Maintenance â&#x20AC;˘ Concessions â&#x20AC;˘ BOT â&#x20AC;˘ BOOT

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ADVERTORIAL

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DEVELOPMENTS AND TRENDS IN THE MIDDLE EAST WATER SECTOR

Gary Jackson

By: ACWA Emirates Director/General Manager, Gary Jackson

The Middle East faces considerable water and sanitation challenges, which governments across the region are acknowledging and tackling aggressively as an integral part of their development strategies.

As economies pick up, promotion of water conservation and storage, wastewater recycling and reuse and new approaches to desalination characterise regional thinking. Middle Eastern countries have exacting expectations for design, fabrication and construction, with superb quality, sustainability and cost-effectiveness required as standard. In the face of lowcost competition entrants to this market must provide customer-focused, intelligent solutions that match these needs.

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Rapid growth and high levels of water consumption characterise this waterstressed region, where water is often traditionally provided at low (or no) cost.

Sustainably fulďŹ lling the needs of residents, industry and agriculture is a sensitive and challenging task, but one that must be tackled â&#x20AC;&#x201C; predictions suggest overall water requirements are set to grow from 35 billion m3/year to 49 billion m3/year by 2020 in the GCC (Gulf Cooperation Council) area alone.

Notable among the water sector trends aimed at overcoming these formidable challenges is a drive towards public-private partnerships (PPPs), which ACWA Emirates

conďŹ rmed with the recent appointment of leading Spanish economist Luis Fernandez to provide in-depth support for the companyâ&#x20AC;&#x2122;s push into this sector.

Mr Fernandez has extensive experience of major PPP projects in the region, and believes that ACWAâ&#x20AC;&#x2122;s remarkable track record, which includes the worldâ&#x20AC;&#x2122;s largest membrane bioreactor (MBR) wastewater treatment plant at Al Ansab in Oman, means the company has the proven expertise in delivering best-in-class technologies, creating value for money and upholding operational excellence to succeed.

The companyâ&#x20AC;&#x2122;s many successes in the regional MBR market recently won it a prestigious Frost & Sullivan Enabling Technology award at the market analystâ&#x20AC;&#x2122;s 2012 Middle East Environment Industry Awards. The accolade was in recognition of the Companyâ&#x20AC;&#x2122;s remarkable achievements in the regional membrane bioreactor (MBR) market over the past ďŹ ve years.

Industrial growth in the region, intended to protect against the peaks and troughs of the oil and gas sector, will create signiďŹ cant opportunities for advanced water and wastewater treatment solutions. This market is predicted to grow rapidly, with the MBR sector in particular due to soar by over 17% per annum, according to Frost & Sullivan.

And this prediction seems to be accurate as ACWA have recently been awarded two new major contracts. An MBR Sewage Treatment Plant (STP) for the KAUST Research park located on the west coast of Saudi Arabia and another MBR-STP plus a Reverse Osmosis Plant to treat desalinated water which is destined for Abu Dhbai.

,

uk ACWAâ&#x20AC;&#x2122;s ďŹ&#x201A;agship Al Ansab wastewater treatment plant in Oman

Saudi Arabia that achieved production of ďŹ rst water in mid-June. Here, a high-efďŹ ciency RO system is an integral part of a complex treatment approach that will provide water for both irrigation and drinking on the vast, beautifully landscaped site.

ACWA sourced best-in-class solutions from around the world, as quality is of supreme importance at this landmark educational establishment. Water from the RO system will be blended with cooled, ďŹ ltered raw groundwater, and also with treated wastewater from the adjacent MBR wastewater treatment plant, to achieve a required daily irrigation capacity of 13,000m3.

Intelligent, tailored solutions such as this herald the future in this discriminating market. Skilled local knowledge, an intense customer focus and a deep understanding of the complex challenges that the region faces are all fundamental requirements for success.

CONTACTS ACWA Emirates LLC. +971 (0) 4 3821 900 www.acwa.co.uk Email: gjackson@acwa.ae

Projects also increasingly combine a creative mix of solutions to resolve multi-faceted needs, such as the ACWA Emirates project at the Princess Noura University for Women in

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for a reliable cost effective solution including Lithium and Nickel Cadmium batteries and chargers to uninterruptable power supplies and inverters; solar powered street lights, lithium battery powered (the first in the UK), to battery based mobile power units.

NJ Designs 88 South Ealing Road LONDON Ealing W5 4QB Tel: +44(0)20-8579 1096 Email: designer@nj-designs.co.uk Website: www.nj-designs.co.uk Contact Mrs Nada J-Sale Managing Director Business Activity: Architecture and interior design Oakwood United Kingdom (Part of Oakwood Worldwide) 44-48 Paul Street LONDON EC2A 4LB Tel: +44(0)20-7749 4460 Fax: +44(0)20-7749 4470 Email: eyoung@oadwood.com Website: www.oakwood.com Contact Ms Emma Young Business Development Manager Business Activity: Spectrum of housing solutions to meet the needs of business and leisure travellers worldwide.

RS Clare & Co Limited 8-14 Stanhope Street LIVERPOOL L8 5RQ Tel: +44(0)151-702 5268 Fax: +44(0)151-709 0518 Email: mfurqan@rsclare.co.uk Website: www.rsclare.com Contact Mr Muhammad Furqan Export & Logistics Co-ordinator Business Activity: Manufacturer of lubricants for rail, oil & gas, automotive, steel, marine, surface coating and traffic safety products.

Rehab Group Services Limited Lombard House 145 Great Charles Street BIRMINGHAM B3 3LP Tel: +353 1 205 7356 Fax: +353 1 205 7211 Email: angela.kerins@rehab.ie Website: www.rehab.ie Contact Ms Angela Kerins CEO - Rehab Group Business Activity: Independent, not-for-profit organisation providing training, employment, health and social care and commercial services.

Reabrook Limited Rawdon Road MOIRA Swadlincote, Derbyshire DE12 6DA Tel: +44(0)1283-222266 Fax: +44(0)1283-550963 Email: enquiries@reabrook.co.uk; rachael.

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holmes@reabrook.co.uk; ala.alhihi@ arrowchem.com Website: www.reabrook.co.uk Contact Ms Rachael Holmes International Sales Administrator Business Activity: Manufacturer of maintenance and cleaning chemicals, aerosols & solvent degreasers, supplying oil, gas, engineering, rail & aerospace industries.

Ria Al-Safwa Kinda Kufa Al Najaf IRAQ Tel: +964 78011 88274 Email: riaalsafwa@yahoo.com Contact Mr Mahmood Taqi Albosaeed General Manager Business Activity: Commercial agencies The Ritz London 150 Piccadilly LONDON W1J 9BR Tel: +44(0)20-7493 8181 Fax: +44(0)20-7493 2687 Email: jperry@theritzlondon.com Website: www.theritzlondon.com Contact Mr Joe Perry International Sales Manager Business Activity: Luxury hospitality Sawabeh Information Services Co King Fahad Road 3rd Floor, Almas Centre PO Box 69088 Riyadh 11547 SAUDI ARABIA Tel: +966 1 201 0000 Fax: +966 1 201 3003 Email: wsa@siscom.com.sa Website: www.siscom.com.sa Contact Mr Waleed S Abalkhail President Business Activity: Consulting, technology and outsourcing, consulting, design, development, software re-engineering, maintenance, technology, package evaluation, implementation and infrastructure management services.

Tatweer Company for Industrial Development Al Olya King Fahad Road Riyadh 11493 SAUDI ARABIA Tel: +966 1 4613273 Fax: +966 1 4613273 Email: sbmbn9@gmail.com Contact Mr Mansoor Saleh Al Khenyzan Director

Travelex Limited Worldwide House P O Box 36 THORPE WOOD Peterborough PE3 6SB Tel: +44(0)1733- 503799 Fax: +44(0)1733- 502751 Email: belinda.munnings@travelex.com; mark.smith@travelex.com Website: www.travelex.com Contact Mr Mark Smith Director Business Activity: Foreign exchange services Upstream Technical Consultants Limited Ravensbourne Business Centre Westerham Road KESTON Kent BR2 6HE Tel: +44(0)1689-868040 Fax: +44(0)1689-868041 Email: richard@upstream.uk.com Website: www.upstream.uk.com Contact Mr Richard Schembri Director Business Activity: Recruitment Consultancy Wrothams London Limited 2nd Floor Berkeley Square House Berkeley Square LONDON W1J 6BD Tel: +44(0)20-7118 2222 Email: tim@wrothams.com; jeremy@ wrothams.com; paul@wrothams.com Website: www.wrothams.com Contact Mr Tim Wilson Chairman Business Activity: Interior design, architecture, project management, furnishing solutions, property consultancy, property finding, refurbishment Ximax Water Solutions Limited 7 Western Gardens BRENTWOOD Essex CM14 4SP Tel: +44(0)1277-849 988 Fax: +44(0)1277-849 989 Email: info@ximaxwatersolutions.com Website: www.ximaxwatersolutions.com Contact Mr Tahir Awan Director Business Activity: Water treatment chemicals specialising in chlorine dioxide Mr Charlie Allsopp Brambletye 28 Vann Road FERNHURST West Sussex GU27 3JN Email: charlieallsopp@hotmail.com Mr Charlie Allsopp Associate Member

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