Arab British Chamber of Commerce Newsletter 3 by Distinctive Media Group Ltd

Arab-British Business Volume 35 Issue 3 October 2012 Monthly bulletin of the Arab British Chamber of Commerce

Growth in the GCC Hospitality Sector Report pages 10 & 11

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Burj Al Arab, Dubai

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CHAMBER NEWS

Monthly bulletin of the A-BCC 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 d.morgan@abcc.org.uk (English Editorial)

OPPORTUNITIES IN LIBYA This is an exclusive event hosted by the Arab British Chamber of Commerce in partnership with the UKTI, the Federation of Libyan Chambers of Commerce and the Embassy of Libya. The event is designed to provide delegates with a unique platform for dialogue and discussion concerning trade with and investment in Libya. The event will take place between 3.30 â&#x20AC;&#x201C; 6.00 pm on Wednesday 21st November 2012, during which time attendees will have the opportunity to listen to experts on aspects of the Libyan economy and discuss prospects for UK businesses with their Libyan counterparts.

The event will be followed by a networking reception, where delegates will be able to meet key stakeholders, make worthwhile contacts and establish strategic partnerships. The Arab British Chamber of Commerce is a partner for growth and wishes to see the development of stronger business ties between the United Kingdom and Libya achieved through increased trade and investment. For further information see the ABCC website: http://www.abcc.org.uk/Opportunities-in-libya

y.husein@abcc.org.uk (Arabic Editorial) www.abcc.org.uk

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Business Events and Trade Fairs

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Disclaimer 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 0958-8116

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CHAMBER NEWS

ABCC HOLDS AMBASSADORIAL ROUNDTABLE ON EGYPT’S ECONOMIC OUTLOOK The Arab British Chamber of Commerce hosted an Ambassadorial Roundtable on Egypt’s economic outlook on the morning of 16 October. His Excellency Mr Hatem Aziz Seif El Nasr, the Egyptian Ambassador, was the guest of honour at the meeting.

Welcoming H E Hatem Aziz Seif El Nasr to the ABCC, Dr Afnan Al Shuaiby remarked on the considerable challenges that Egypt had been facing over the recent period and hoped that the discussion facilitated by the roundtable would provide answers to some of the questions being raised by potential investors.

president by a democratic process who legitimacy had not been questioned was an indication of an important new era.

Baroness Symons, who chaired the meeting, set out some of the key issues of interest to the business community, such as how Egypt was opening up to investors and the importance of enhancing trade.

The country was on the right path, he stated, although more steps were being taken to consolidate the progress made, including agreement on a new constitution and establishing the infrastructure required.

The meeting was attended by senior representatives from some key business sectors with an interest in Egypt, such as healthcare, education, transport, oil & gas, banking and financial services.

Delivering a detailed presentation on the theme of Egypt’s “post-revolution challenges and opportunities”, the Ambassador stated that he was impressed by the attention being shown to Egypt’s plans for economic development.

The banking sector, for example, remained resilient and continues to show profitability.

Representatives from UKTI and the EgyptBritish Business Council also joined the discussion along with Directors of the ABCC.

He expressed the hope that the roundtable would lead to an informed conversation about the prospects for Egypt and the wider region.

The “fantastic turnout” for the discussion was seen as a reflection of the high level of interest among UK investors in doing business in Egypt and its plans for future economic development.

Outlining some basic points of fact, the Ambassador said that the country had emerged from a prolonged period of uncertainty and was achieving a sustained recovery; the election of the first civilian

Relations between the UK and Egypt have been traditionally strong and in terms of investment the UK was the largest single foreign investor in the country, delegates were informed. Delegates to the roundtable heard how Egypt was looking to strengthen its investment and trade relations with the UK as it set out to revive its economy following recent changes in the country.

Egypt was seeing the democratisation of its institutions and remained committed to a free market open economy which would ensure a level playing field for investors.

Negotiations on securing an IMF loan were progressing and successful realisation of this would bolster confidence in the economy. The Ambassador moved on to point out that Egypt was increasing the productivity of its agricultural sector which was enabling it to reduce its imports of wheat. Nevertheless, Egypt’s needs were numerous, particularly regarding the transfer of technology and knowhow. The new government had adopted a strategy to boost its economic prospects setting priorities to reduce the deficit by gradual reductions in subsidies and public spending. Increased efficiency, corporate tax reforms and measures to attract more investment were being adopted, he said. In future, the state would become a facilitator of economic development and the private sector would play a much greater role, the Ambassador indicated.

H E Hatem Aziz Seif El Nasr, the Egyptian Ambassador, addressing the roundtable, with Baroness Symons (right)

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Foreign Direct Investment was seen as crucial to securing the finance that the country requires to carry out its plans and it was now receiving funds from several international sources.

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CHAMBER NEWS

H E Hatem Seif El Nasr stressed that the function of the Embassy was to help ensure that the commitments that Egypt had given were being put into effect on the ground. Egypt was securing international investment to implement development projects in such areas as water and sanitation, agri-business, renewable energy, transport and the financial sector. Referring to new mega projects, he stressed that Egypt wanted these to be developed through Public Private Partnership agreements as this was a way of attracting investment. Reflecting on the status of Egypt-UK commercial relations, the Ambassador said that the UK was the largest foreign investor with investment valued at $20bn and more than one thousand UK companies were operating in the country. The greater proportion of the UK’s investment was in the oil and gas sector and currently there was a new focus on renewable energy. The UKTI viewed Egypt as an attractive market and activities were under preparation at governmental level to improve trade relations. H E Mr Hatem Seif El Nasr, the Egyptian Ambassador, outlining the opportunities for doing business in his country.

It had received and was expecting to receive a total of $11 billion, which would consist of $4.8bn from the IMF, $0.65bn from the European Union, $2bn from Qatar and $1.5bn from Saudi Arabia. He stressed that Egypt’s prospects were positive and expressed confidence that the country would be able to secure the financial support from the international community that it required to move ahead with its economic recovery. The country was determined to pursue a policy of liberalisation to realise the full potential of its economy in the medium to long term. Its strategy to boost investment embodied in its 2012/2013 plan had set an investment budget of $45bn to be achieved from FDI and investment from domestic sources. Egypt aims to reduce the public sector’s contribution to the budget to 40%. The Ambassador outlined the key sectors with greatest potential for development such as tourism, health, education and new technology. In recognition of the important role played by SMEs in the economy, additional technical support was to be provided to enable them to flourish.

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Turning to the reforms that Egypt was adopting in order to make its economy more attractive to investors, H E Hatem Seif El Nasr mentioned that the new government was streamlining the procedure for registering foreign companies and reducing the period from six months to three days. Similar important reforms were being implemented for the registration of a foreign representative office in the country. Investors would be able to make use of one-stop shop services and more offices of the General Investment Authority were being opened in different governorates around the country, he said. The Ambassador explained to delegates to the roundtable how Egypt was improving the efficiency of the dispute settlement mechanisms which would satisfy concerns of potential investors that possible conflicts arising could be more speedily resolved. The mechanisms involved a range of measures and bodies with responsibilities including Investor Protection Schemes, a Dispute Settlement Centre, the Investment Disputes Resolution Committee and Contracts Committee. The latter was responsible for looking into already existing contracts agreed with the previous administration.

UK Trade Minister Lord Green was scheduled to visit Egypt in November in preparation for a large British trade mission in 2013. In addition, Scottish Development International was also seeking closer cooperation with Egypt. The Ambassador nevertheless pointed to a shortfall in trade with the UK since only 5% of Egypt’s external trade was contributed by the UK market. Egypt expected that the UK’s forthcoming presidency of the G8 in 2013 would see significant progress on the Deauville Partnership. The Ambassador welcomed an announcement from UK Foreign Secretary William Hague of plans to organise events to boost its partnership with Egypt. Summing up the message to British business, Baroness Symons stated that while UK investment in Egypt was strong there was a need to boost the trade part of the relationship. In conclusion, Ambassador H E Hatem Aziz Seif El Nasr was thanked by Dr Afnan AlShuaiby and Baroness Symons for delivering his wide ranging presentation on the challenges and opportunities in Egypt. In response, the Ambassador commended the ABCC for its valued work and said that he welcomed the opportunity to engage in such an informed discussion. He also welcomed the thoughtful and constructive feedback that he had received.

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CHAMBER NEWS

ABCC HOSTS PALESTINIAN AMBASSADOR AND PRIVATE SECTOR DELEGATION FROM PALESTINE

On 25th September, the Chamber was pleased to host H E Professor Manuel Hassassian, the Palestinian Ambassador to the UK, accompanied by a high-level delegation from Palestine for an Ambassadorial Business Roundtable. The main purpose of the meeting was to discuss the forthcoming Jerusalem Business Forum scheduled to be held on 29-30 November, an international business conference designed to attract private sector investment into East Jerusalem. Participants in the discussion included member companies of the Chamber with an interest in Palestine from a variety of sectors as well as members of the Chamberâ&#x20AC;&#x2122;s Board of Directors.

Dr Afnan Al-Shuaiby warmly welcomed the Ambassador and Palestinian delegation on behalf of the Chamber and pledged continuing support for the economic development of Palestine. For his part, the Ambassador expressed strong appreciation on behalf of the Palestinian people to the Chamber for its generosity and strong role in facilitating trade and investment with Palestine.

Chairing the roundtable discussion, Baroness Symons stated that she detected a renewed enthusiasm in the UK for doing something to boost trade with Palestine. In his opening address, H E Professor Hassassian ranged widely over the issues that were impeding the achievement of peace, security and the social and economic development of Palestine.

H E Professor Manuel Hassassian, the Palestinian Ambassador, speaking at the roundtable with Baroness Symons (right).

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CHAMBER NEWS

H E Professor Manuel Hassassian, Palestinian Ambassador, Rt Hon Baroness Symons, ABCC Chairman and Mr Mazen Sinokrot, former Palestinian Minister of National Economy and head of the business delegation which was visiting the Chamber.

The forum was designed to rally the support of the international community for new projects, the details of which would be unveiled at the event. The business forum was being organised in cooperation with the office of the Quartet on the Middle East, representatives of which were present at the roundtable. The delegation had been travelling to selected countries seen as key markets for attracting investment into the Palestinian region, and these included Jordan, Turkey, Saudi Arabia as well as the UK, Mr Sinokrot said.

Focusing on the core theme of the meeting, the Ambassador stressed the important part that the private sector was playing in order to give hope to the people by attracting new investment into East Jerusalem. The delegation of private sector representatives from East Jerusalem was seeking to attract investors and business partners into the city which had so far been neglected by previous international initiatives. Describing Jerusalem as the heart of Palestine and the key to achieving stability in the region, the Ambassador welcomed the attention that the new initiative was giving to East Jerusalem because it was the most underdeveloped area of the West Bank. H E Professor Hassassian praised the activities of Palestinian entrepreneurs in the process of development and also remarked on the successes of the Palestinian Authority (PA) in developing the economy in recent years despite heavy impediments. The business forum was important in that it would help meet the aspirations of the Palestinians for employment opportunities and improvements in their infrastructure, such as housing, education and healthcare. In response, Baroness Symons summarised the Ambassador’s strong message of the importance of peace and economic development. She said that the roundtable was an opportunity to concentrate on the practical steps that could be taken by the business community to strengthen trade and investment with Palestine. The Baroness underlined the substantial financial benefits available to investors in Palestine and stressed that the issue was certainly not one of “charity”, a point echoed by other speakers. Baroness Symons said that she was encouraged by the wide range of sectors represented around the table.

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The roundtable consisted of executives from the financial services, education, healthcare, law, IT, construction and hospitality sectors. Mr Terry Stone, a member of the Chamber’s Board with experience in the financial sector, mentioned the special relevance of “friendship through trade” with regard to UKPalestinian relations. A detailed presentation on the aims of the Jerusalem Business Forum was delivered by the head of the delegation, Mr Mazen Sinokrot, Chairman of Al Quds Holding Co and a former Palestinian minister of national economy. He stated that East Jerusalem was an important destination for trade and world culture and the private sector had taken the initiative to try to make some real improvements for the people with the support of the PA. Population growth in East Jerusalem was higher than elsewhere in the region, he said, and both social and economic indicators highlight gaps in the conditions and services available to the people. Over the next ten years, there was a need for 40 thousand new apartments, 420 new schools which need private investment. The tourism sector was an important component of the Jerusalem economy and had potential for significant growth. The heritage and holy sites could attract more visitors presenting opportunities for the hospitality sector and tour operators. There was a shortage of hotel rooms in East Jerusalem as no new hotels had been built for about 15 years, Mr Sinokrot estimated. This meant that older properties were being upgraded. There was an aim to construct new hotels with foreign investors to meet the demand from the predicted influx in tourists; visitor numbers currently reached 3.5 million, but this could be doubled, he said.

The conference would be concentrating on five major sectors: namely transport, education, real estate & housing, Information Technology and finance. He stressed that Palestinians were looking to partner with serious investors and they were adopting a flexible approach in discussions on the terms of any agreements. Participants in the roundtable found it encouraging that despite all the difficulties, the entrepreneurial aspirations of the Palestinian people were still flourishing. Baroness Symons said it was important not to lose sight of that fact that the Palestinian business community wanted to do business with us. The abilities, resilience and business acumen of Palestinians were reinforced by personal experiences shared by Michael Thomas, member of the Board of Directors at the Chamber, and Michael Parr, CEO of BACB. Antoine Mattar, Director of CCC, gave details of projects on which his company was working, such as the Moon Valley Project that aimed to bring agricultural products to UK supermarkets and a higher education scholarship initiative with the British Council which was bringing Palestinians to study at British universities. H E Professor Hassassian urged Europe to strengthen its economic partnership with the Palestinians. The roundtable heard assurances that safeguards were in place for investors and that they would receive a return on their investments. PWC had been working in partnership with the conference organisers to develop a business plan and options for investors that would be distributed at the forum. The forthcoming international business forum was aiming to attract around 130 delegates and would be a platform to show the readiness of the private sector for trade and cooperation.

More jobs were needed particularly for women and recent graduates.

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CHAMBER SERVICES

ARAB BRITISH CHAMBER OF COMMERCE OUR MAIN SERVICES TO BUSINESS

Export Documentation

FCO Service

Chamber Events

The Chamberâ&#x20AC;&#x2122;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

The Chamber organises a programme of high-level business events, roundtable discussions, briefings, seminars, conferences and receptions that take place throughout the year. These exclusive events offer a showcase for the latest projects, investment opportunities and major developments in the Arab markets.

Mr Cliff Lawrence on 020 76594881

Notary Service

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 see...

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

Visa Services 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.

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

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/Business-VisaServices

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

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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.

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NEW MEMBERS

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 that provides strategic support to multinational corporations, high-net-worth individuals and governments.

Member Update Healys LLP 76 Shoe Lane LONDON EC4A 3JB Tel: +44(0)20-7822 4000 Dir: +44(0)20-7822 4144 Fax: +44(0)20-7822 4100 Email: charles.green@heals.com; omar.shams@healys.com; marios.pattihis@healys.com Website: www.healys.com Contact: Mr Charles Green Partner Business Activity: Law firm Withers LLP 16 Old Bailey LONDON EC4M 7EG UK Tel: +44(0)20-7597 6000 Email: caroline.gallagher@withersworldwide.com; emma.copestake@withersworldwide.com Website: www.withersworldwide.com Contact: Ms Caroline Gallagher Head of Client Relationship Management Business Activity: Legal Services Associate Member Mr Richard Rainey Unwin Le Clos Fontaine Petit Sark SARK Channel Islands GY10 1SD UK Email: mainstrategy@gmail.com Real Time Inventory Management The Thorn Building Studley Castle STUDLEY Warwickshire B80 7AJ Tel: +44(0)1527-854 993 Fax: +44(0)1527-854 816 Email: ken.vidler@rtim.co.uk Website: www.rtim.co.uk Contact: Mr Ken Vidler Managing Director Business Activity: Inventory management, stock taking

ABCCNEWSLETTER 3.indd 9

Health Matters (UK) Limited Four, The Cobalt Centre Siskin Parkway East Middlemarch Business Park COVENTRY Warwickshire CV3 4PE Tel: +44(0)24-7651 6080 Direct: +44(0)24-7651 6096 Fax: +44(0)24-7630 3165/ 5316 Email: james@health-matters.co.uk Website: www.health-matters.co.uk Contact: Mr James Henson Sales Director Business Activity: Healthcare and employee wellbeing broker Emirates Gloucester Park 95 Cromwell Road LONDON Tel: +44(0)20-7808 0006 Fax: +44(0)20-7808 0061 Email: anna.edwards@emirates.com Website: www.emirates.com Contact: Mr Laurie Berryman Vice President UK Business Activity: Airline The Informed Executive Limited 944 Warwick Road SOLIHULL B91 3HW Email: bijan@sedghi.com Website: www.informedexecutive.co.uk Contact: Mr Bijan Sedghi Executive Director Business Activity: Electronic publication providing business intelligence services to senior executives and managers.

This member has notified us to update its contact details and activities. Jefferies Bache Limited 9 Devonshire Square LONDON EC2M 4HP Tel: +44(0)20-7548 4000; +44(0)20-7548 4033 (Direct) Fax: +44(0)20-7548 4023 Email: ameleka@jefferies.com Website: www.jefferiesbache.com Contact: Mr Ashraf Meleka Senior Vice President, Head of Middle East Business Development Business Activity: Global investment banking firm focused on serving clients for 50 years; a leader in providing insight, expertise and execution to investors, companies and governments. The firm provides a full range of investment banking, sales, trading, research and strategy across the spectrum of equities, fixed income, foreign exchange, futures and commodities, and also select asset and wealth management strategies, in the Americas, Europe and Asia.

COUTTS POLO AT THE PALACE Weekend international polo event 23-24 November 2012 Emirates Palace Hotel, Abu Dhabi, UAE Special offer for ABCC members: • Discount for anyone booking VIP groups up to 10 people • Pre-booked test drive of the new Maserati Gran Turismo Sport • Meet the teams in the VIP polo lounge between games Contact: Antonia Laing Sponsorship & Hospitality Executive City Events Ltd Tel: +44 (0)207 936 5282 Email: Antonia@cityevents.uk.com www.citypoloseries.com

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GCC HOSPITALITY

GROWTH IN GCC HOSPITALITY MARKET

The GCC hospitality market is anticipated to grow at an annual rate of 8.1% to $28.3 billion by 2016 compared to $19.2 billion in 2011, according to a new report.

Increased awareness amongst individual and business travellers regarding personal health and well-being coupled with rising income levels have bolstered the spa and wellness industry, a component of luxury hospitality.

Alpen Capital in its GCC Hospitality industry report estimates that occupancy rates will average around 67–73% between 2012 and 2016.

“All these factors have contributed to the steady increase in tourist arrivals which in turn has facilitated the growth of the hospitality industry in the region.”

Hotels in the GCC region are also likely to speed up redecoration and refurbishment activities in order to stay competitive as new hotels enter the market.

As business and leisure tourism continues to grow and the up-scale hotel segment account for most of the demand for hotels, the average daily rate (ADR) is likely to be around $212–$247 between 2012 and 2016.

Hotel room supply in the Gulf region, primarily in the UAE, is geared towards luxury hotels due to strong demand for such accommodation and the fact that the UAE is recognized as a premium tourism destination. Nevertheless, given the economic slowdown, the anticipated budgetary cuts by individuals and businesses and the consequent downtrading, hoteliers are strengthening their budget hotel pipeline to meet demand.

The report estimates that Saudi Arabia is likely to spend around $80 billion for the development of key infrastructure facilities. Over the period 2012-2022, investments in the country’s tourism are expected to grow at a CAGR of 6.9%.

Saudi Arabia is expected to remain the largest GCC market in terms of revenues, followed by the UAE. Qatar is expected to be one of the fastest growing markets, driven by rising business tourism and leisure tourism as the country prepares itself for the FIFA World Cup 2022, and in order to achieve its 2030 national vision.

While international players are aggressively establishing their brands in the GCC, local players like Jumeirah and Rotana hotels have made a mark not only in the GCC markets, but have made themselves known globally driven by their impressive hotel operations, the report says.

The Saudi government is investing heavily in airports, railways, and roads, which will enable increased travel and facilitate the expected growth in tourist arrivals, the report says.

Saudi Arabia is planning a new $7 billion airport in Jeddah. In addition, SCTA has also “The GCC hospitality sector is poised for launched virtual tours through e-tourism a healthy growth owing to factors such as for promoting domestic tourism sites and favourable economic conditions combined services. Alpen Capital believes these factors with infrastructure development, increased will continue to drive religious, leisure and Serviced apartments are sprouting up in the bids to host high-profile global events and business tourism in the Kingdom, which will region inBahrain, tandem the rising market number of based government support to the private sector,” contrary, contrary, Bahrain, the with the third-largest third-largest market based on on experienced experienced a 16.6% in tourist turntourist aidarrivals, thearrivals, demand for hotels.a 16.6% expatriates and business travellers visiting said Sameena Ahmad, managing director atdropdrop due due to socio-political to socio-political unrest, unrest, which which affected affected bothboth leisure leisure andand business business tourist tourist arrivals. arrivals. the GCC region. These apartments provide Alpen Capital. Hotel room supply in the country is expected the option of longer stays at cheaper rates to increase at these a CAGR of 1.5%continued over 2011–16 Tourist Tourist arrivals arrivals to Qatar, to Qatar, Oman, Oman, andand Kuwait Kuwait increased increased as as these countries countries continued to to relative to traditional hotels. from 243,117 rooms in 2011 to 262,049 in benefit benefit fromfrom the development the development of leisure of leisure andand business business infrastructure. infrastructure.

Exhibit Exhibit 3: Tourist 3: Tourist arrivals arrivals break break down down by country by country 2011 2011 Kuwait Kuwait 1% 1%

+9.4% 18.018.0+9.4% 15.015.0

Bahrain Bahrain 15% 15%

+10.4% +10.4%

Saudi Saudi Arabia Arabia 44% 44%

million

12.012.0

million

Oman Oman 5% 5% QatarQatar 5% 5%

Exhibit Exhibit 4: GCC 4: GCC international international tourist tourist arrivals arrivals 2001-11 2001-11

9.0 9.0

+7.4% +7.4%

6.0 6.0

+17.7% +17.7% +10.5% +10.5%+13.0% +13.0%

3.0 3.0

UAE UAE 30% 30%

0.0 0.0 Saudi Saudi UAEUAEBahrain BahrainQatar QatarOman OmanKuwait Kuwait Arabia Arabia 20012001

2011 2011

Source: Source: UNWTO,WTTC, UNWTO,WTTC, AlpenAlpen Capital Capital

Leisure Leisure spending spending drives drives region’s region’s growing growing tourism tourism receipts receipts

ABCCNEWSLETTER 3.indd 10

Tourism Tourism receipts, receipts, which which include include expenses expenses incurred incurred on on hotels, hotels, restaurants, restaurants, travel travel andand communication, communication, increased increased at aatCAGR a CAGR of 12.3% of 12.3% during during 2002-11, 2002-11, higher higher than than thethe global global 30/10/12 average average of 7.4%. of 7.4%. ThisThis can can be ascribed be ascribed to atostrong a strong riserise in leisure in leisure spending, spending, thethe largest largest contributor contributor to the to the region’s region’s tourism tourism receipts receipts (71.6% (71.6% of total of total receipts receipts in 2011). in 2011). Leisure Leisure

16:52:49

on and attract

GCC HOSPITALITY

Jumeirah Beach Hotel, Dubai.

2016. In anticipation of expected increase in the tourist arrivals, hotel operators in Saudi Arabia are expanding to meet the resultant rise in demand for hotels. Currently, there are 69 properties in the planning, or under construction phase; these are expected to come online during the period to 2016. While hotel supply is expected to rise, we believe the demand for hotels will increase at a faster pace, which will strengthen occupancy levels from 67.5% in 2011 to 74.2% in 2016. This will also benefit the ADR which is expected to grow at a CAGR of 3.3% during the forecast period.

a year for the next four years, dramatically outpacing growth in the overall economy, the report says. Revenues from the hotel and hospitality market will reach $4.9 billion (Dh17.99bn) this year, up from $4.5bn last year, and will eventually grow to $7.5bn by 2016 as tourists continue to flood into the country, according to the Alpen Capital report. The growth in the UAE hospitality market will also outpace the overall GCC market, which is expected to increase at 8.1% per year until 2016. The predicted growth in the hospitality market in the UAE is three times as high as

The hotel and hospitality market in the UAE is forecast to grow at more than 10%

Exhibit 26: GCC tourist arrivals as a % of global tourist arrivals 4.5% 3.8%

4.0%

2.5%

4.1%

3.4%

3.5% 3.0%

3.8%

2.5%

2.7%

2.0%

the expected growth in the overall economy, according to the IMF, which predicts the UAE to expand between 2.8% and 3.6% each year until 2016. Alpen believes tourist arrivals in the UAE will grow at 5.3% each year, keeping pace with hotel supply, which will increase from 96,992 hotel rooms in Dubai and Abu Dhabi to 125,383 in 2016. It expects the average price of a room to rise from $183 last year to $220 by 2016. “[The] UAE Government’s investment in infrastructure is likely to emerge as a huge positive,” said the report. “These factors are likely to enhance tourism activities in the country, which in turn would boost hotel demand.” Tourism is one of the key pillars of Abu Dhabi’s Economic Vision 2030 and has been one of the crucial drivers of Dubai’s economy this year. All factors point to a flourishing hospitality market after hotels in Dubai welcomed 10% more guests in the first six months of the year compared with the same period last year, according to the Department of Tourism Commerce and Marketing in Dubai. Revenues at hotels jumped 22% to Dh9.7 billion ($2.64bn) in the first half as guests stayed longer in Dubai and were encouraged to spend more.

1.5% 1.0% 0.5% 0.0% 2002

2005

2010

2011

2012F

2022F

Source: World data bank, WTTC, Alpen Capital

Meetings and exhibitions organized in the region have boosted business tourism, which has emerged as the primary business tourism driver for countries like the UAE and Qatar. Governments are taking initiatives like road shows and events to showcase their conference and exhibition facilities to encourage business travel. The UAE has hosted events over the years, making it the top ABCCNEWSLETTER 3.indd 11 MICE destination in the Middle East. Oman’s USD1.8 billion convention and

For the full report see: http://www.alpencapital.com/downloads/ GCC%20Hospitality%20Fourth%20 Draft_04October_Final.pdf

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BUSINESS & PROJECT NEWS

HIGH-TECH STARTUPS IN UAE TO BOOM

The report found that there were 55 venturecapital firms investing in the Mena region, such as Citadel Capital, Swicorp and EFG Hermes. Many Mena start-ups still find it difficult to source funding, the report said. Abdul Baset Al Janahi, the chief executive of Dubai SME - which helps to develop small and medium-sized businesses as part of the Department of Economic Developmentunderlined the importance of SMEs to the economy. “Ninety-five per cent of the [businesses] in the UAE are small and medium enterprises,” he said.

About 96 technology-focused start-ups were expected to launch from the Emirates this year, and this was forecast to rise to 185 each year over the next three years, according to a report by Dubai Internet City and the consultancy Frost & Sullivan. That growth rate is set to outpace that of the broader MENA region, where about 520 tech start-ups are expected to launch this year, growing to 880 in 2015. There are now eight times as many technologyfocused start-ups launching annually in the Mena region than in 2005. Of all the start-ups to emerge in the Middle East during the past six years, 17% were launched in

the UAE. Success stories include the classifieds website Dubizzle and the e-commerce portal Souq.com, both founded in Dubai. The most popular market for high-tech launches during that same period was Jordan, which attracted 32% of the start-ups, followed by Lebanon, which pulled in 20%, according to the report.

“We think there are more and more [information communications technology] companies that will start in this region,” he said. Aside from start-ups, Dubai has also attracted some of the world’s largest high-tech businesses.

“It’s easier to do business throughout the GCC starting your company in Dubai, than it is starting your company in Jordan or Lebanon,” a Foster & Sullivan research analyst said.

Both Facebook and LinkedIn launched regional offices at Dubai Internet City this year.

Algeria is expected to invest $71 billion in the energy sector over the five coming years, becoming thus the third largest investor in the sector in the MENA (Middle East and North Africa) region.

With the amounts it is expected to inject in the sector, Algeria will rank ahead of Iraq and Qatar, according to Apicorp forecasts.

Mr Al Janahi said more smaller businesses in the UAE were focusing on the technology sector.

The UAE was set to take the lead partly because of the ease of doing business there, the report said.

ALGERIA TO INVEST $71BN IN ENERGY SECTOR BY 2017 According to a report by the Arab Petroleum Investments Corporation (Apicorp), with its $71 billion worth investments in the energy sector over the 2013-17 period, Algeria will hold the third rank after Saudi Arabia with investments totalling $165 billion and the UAE with a $107 billion investment.

“They contribute around 46% of the GDP, and close to 45% of the workforce. So the opportunity is really, really big.”

As to the total energy capital investment by MENA oil producing countries, it is expected to amount to $740bn for the five-year period 2013-17. Gas producing countries are expected to inject a total investment of $140bn in the energy sector during the same period. Compared to past assessments, which have been consistently revised to fully reflect adjustments in the power sector, investment appears to be on the rise again, Apicorp said.

The National, 18/10/2012

SAUDI CAR MARKET EXPANDS DRIVEN BY ROBUST ECONOMY Recent studies have revealed that new-car sales in Saudi Arabia are expected to cross one million units in 2018, fuelled by the market stability and robust growth of the Saudi economy. Moreover, the Kingdom's rapidly growing young population made Saudi Arabia the largest importer of vehicles and automotive parts in the Middle East in 2011, with the pace seen accelerating in the medium term, the National Commercial Bank said recently in a separate report. According to market analysis, the Kingdom's automotive sector is expected to see sustained growth over the coming years, given the major development projects and expansion initiatives being undertaken in several Saudi cities. Saudi Gazette, 29/09/2012

Saudi Gazette, 13/10/2012

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BUSINESS & PROJECT NEWS

BRITISH UNIVERSITIES RECEIVE GULF FUNDING Financial assistance from the Gulf to universities in the UK is an important income stream for the education sector. Oxford University has been the largest British beneficiary of financial support from Saudi Arabia. In 2005, Prince Sultan, the late crown prince, gave £2 million (SR12 million) to the Ashmolean Museum. In 2001, the King Abdul Aziz Foundation gave £1 million (SR6.1 million) to the Middle East Centre. There are many other donors. Oxford’s £75 million (SR454.6 million) Islamic Studies Centre was supported by 12 Muslim countries. The Ruler of Oman, Sultan Qaboos bin Said, gave £3.1 million (SR18.8 million) to Cambridge to fund two posts, including a chair of Arabic. The Ruler of Sharjah, Sheikh Sultan bin Mohammed Al-Qassimi, has supported Exeter’s Islamic studies centre with more than £5 million (SR30 million) since 2001. Trinity St David, part of the University of Wales, has received donations from Abu Dhabi’s Sheikh Khalifa bin Zayed Al-Nahyan. While Islamic studies are the most popular recipients for donations, support is certainly not restricted to this area. The Saïd Business School at Oxford University was set up by Wafic Said, a Syrian-Saudi businessman, with a £23 million (SR139.4 million) initial donation. Donations are not the only financial links to the Gulf. According to the Observatory for Borderless Higher Education, of the 200 branch campuses opened by universities around the world, 37 are in the UAE and 10 are in Qatar. University College London has an archaeology campus in Qatar. Bolton, Heriot-Watt, the London Business School, Manchester Business School, Cass Business School and Middlesex all have bases in Dubai or neighbouring Ras Al-Khaimah, according to the Financial Times. Arab News, 30/09/2012

CITY OF LONDON AND CASABLANCA FINANCE CITY SIGN PARTNERSHIP AGREEMENT

TheCityUK and the Moroccan Financial Board signed a formal partnership agreement at the Mansion House that will bring London and Casablanca financial centres closer together. A delegation from Morocco was in London to attend the signing ceremony and take part in a business visit from the Kingdom to The City. The agreement was signed by Mr Chris Cummings, CEO of TheCityUK, and Mr Said Ibrahimi, CEO of Moroccan Financial Board, was attended by HRH Princess Lalla Joumala Alaoui, the Moroccan Ambassador to London, Alderman David Wootton, Lord Mayor of the City of London, a Moroccan delegation of high representatives from the capital market, insurance and banking sectors, and leaders of major UK-based financial and professional institutions.

tolerance, free enterprise and openness to the outside world. “Under the leadership of His Majesty the King, Morocco has significantly deepened and accelerated this reform process to foster democratic norms and the Rule of Law, expand rights and freedoms, deal with social disparities and upgrade the economy. “Particular attention has been given to the economy as a lever for human development. Morocco has worked tirelessly to promote competitiveness, boost infrastructure networks, improve the business climate and further open its market to the outside world.” Said Ibrahimi, Chief Executive of Moroccan Financial Board said:

In addition to traditional areas of cooperation, including mutual exchange of information, joint organization of seminars and business delegations to both countries, cooperation between TheCityUK and Casablanca Finance City is to be focused on the following specific areas:

“Casablanca Finance City will help British businesses and financial institutions to access growth in North and West Africa at a time when developed economies, particularly in the Eurozone, are seeking new opportunities. Through collaboration with TheCityUK and other financial centres around the world we can help investors access untapped potential in an emerging Africa.”

l Development of the derivatives market

Chris Cummings, CEO of TheCityUK, said:

in Casablanca, including the development of products and the establishment of an attractive legal framework for those products; l Implementation of globally recognised training programmes and professional qualifications; l Strengthening the competitiveness of the Moroccan insurance industry. HH Princess Lalla Joumala Alaoui praised the “thriving economic relations” between the two countries which she said was “made possible thanks to a wider context of positive social and political transformations that provided us with a foundation of shared values and principles on which to build a solid partnership.”

“The recognition of Casablanca as a developing international financial centre is due to Morocco’s growth as a hub for financial and professional services in North Africa and francophone West Africa. TheCityUK and the Moroccan Financial Board share the common goals of ensuring the Moroccan financial services sector continues to be well regulated, transparent and competitive in a global market. “This agreement will further strengthen our relationship and provide export opportunities for businesses in both nations. As a leading financial hub, Casablanca will also help to open up opportunities for businesses across the whole of North Africa.”

“Since its independence in 1956, Morocco embarked upon a sustained course of comprehensive reforms, based on a set of constant fundamentals: political pluralism,

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BUSINESS & PROJECT NEWS

MINISTER BACKS TUNIS FINANCIAL HARBOUR Gulf Finance House’s (GFH) Tunis Financial Harbour (TFH) project has been backed by Tunisian Investment and International Cooperation Minister Riadh Bettaieb. The commitment came as a high profile delegation from GFH, the Bahrain-based Islamic investment bank, comprising acting chief executive Hisham Alrayes and TFH chief executive Lutfi Alzaar met the minister. Mr Bettaieb reiterated his support for TFH and expressed his government’s commitment to ensure its development according to the plan, side by side with GFH.

“The expected benefits of TFH are extraordinary for Tunisia, GFH and our investors,” said Mr Alrayes. “We are committed to seeing the project through and realise the returns for the country and our investors. TFH, with its unique location overlooking the Mediterranean, will become an unparalleled destination for business and leisure travellers. “Tunisia offers investors high potential for growth, government support, attractive investment terms, security, proximity to Europe, an educated population, a beautiful

climate and well maintained public infrastructure,” he added. “I see Tunisia becoming the leading financial and business centre in North Africa once development of TFH has been completed.” The delegation also met contractors and developers and discussed plans to speed up work on the development and construction of key buildings. The team specifically discussed the development strategy for TFH, and a plan to focus initially on completing work on the retail district, golf course, sample villas and residential units as well as a marketing campaign to attract interest from outside and within Tunisia. The TFH project will be North Africa’s first offshore financial centre. It will focus on attracting local, regional and international banks and financial institutions as well as leading regional Islamic banks and Islamic investment funds to the region. It will offer world-class commercial infrastructure, an array of modern waterfront living and state-of-the-art office space for financial institutions seeking access to opportunities offered by Tunisia as a strategic gateway between Europe and Africa. Gulf Daily News, 08/10/2012

QATARI BANKS URGED TO TAP OVERSEAS OPPORTUNITIES

GCC 11% OF $600BN PETROCHEMICALS INDUSTRY

Qatari banks have “enormous” growth opportunities in the overseas markets, especially in those which have synergies with the Gulf and Asia. They should go for select acquisitions and have specific strategy for exit and recovery of assets, according to Doha Bank Group CEO R Seetharaman.

The Gulf petrochemicals industry continues to be the largest producer and exporter in the world accounting for 11% of the $600 billion global petrochemical industry, said a study.

“The growth opportunities are enormous in the international markets but at the same time it also brings in the underlying risk. Therefore, Qatari banks have to exercise due care in building international business,” Seetharaman told a Meed Qatar Banking Summit.

Over the next five years, the Gulf's market share will jump to over 17%, according to the industrial study.

products are also helping absorb the surge in production of plastics and petrochemicals by fast-expanding GCC manufacturers, he stated.

The mammoth Gulf petrochemicals industry continues offloading the majority of its output to more than 150 countries worldwide, said Satish Khanna, the general manager of Al Fajer Information and Services, the coorganiser of the ArabPlast 2013 trade show to be held in Dubai in January.

"The Gulf is the leading export hub of plastics raw material to the world, thanks to companies from the UAE, Qatar, Oman, Kuwait and Saudi. Leading petrochemical companies in the Gulf do not depend on the Middle East market because they export to more than 150 countries worldwide,” Khanna added.

“The GCC is truly the centre of gravity for the Gulf petrochemical industry, with huge local and external investments and global major players partnering with local companies projecting to increase the share of GCC region in the production of petrochemicals,” he remarked.

The petrochemical industry in the GCC began to evolve with the establishment of Qapco in 1980. Saudi established Sabic Methanol in 1983, Bahrain launched GPIC Methanol in 1985 and it was fuelled with Borouge Petrochemicals in 2002 and Oman Methanol Sohar in 2005.

Rising demand from Asia and increasing European appetite for Middle Eastern

Trade Arabia, 18/10/2012

Suggesting specific strategy for exit and recovery of assets and select acquisition as an option to grow in global markets, provided pricing is correct; he said there existed opportunities for Qatari banks in acquisitions since multinational banks were offloading their assets due to corrections in international markets. Gulf Times, 09/10/2012

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BUSINESS & PROJECT NEWS

OMAN INSURANCE, LEASING SECTORS POST SUBSTANTIAL GROWTH Rising liquidity in the economy, easy access to funds and focused approach of the managements have helped the Omani corporate sector to achieve across the border growth. While the banking sector continues to be a major trend setter for growth, other sectors like leasing and insurance too have made substantial gains. The Sultanate’s State General Budget for 2012 projected a record high public expenditure of RO10 billion and total revenue of RO8.8 billion, estimating a deficit of RO1.2 billion.

However, during the first seven months of the year itself, the Sultanate recorded total revenue of RO 8.75 billion against an expenditure of RO 6.71 billion and a surplus of RO 2.04 billion as at the end of July 2012 compared to a surplus of RO 0.44 billion for the same period last year, according to latest data available Statistics Department of Ministry of Finance.

The government sees an impressive growth this year with the budget surplus expected to reach RO2.5 billion in 2012, according to a government economic planning official. The Omani corporate sector has capitalised well on this growth. “The government spending on infrastructure and oil and gas projects, along with rising disposable income of the people, have led to a healthy demand for products and services”, says Suresh Kumar, Head of Research at Al Maha Financial Services. Oman Observer, 08/10/2012

MOBILE TELEPHONY STEALS THE SHOW IN MOROCCO

PROJECTS BOOM FUELLING SAUDI STEEL DEMAND

A low fixed-line penetration of 11.1% is driving mobile growth in Morocco, especially, in remote areas where mobile telephony services are easier to access than fixed-line telecom services, said a survey.

Saudi Arabia is on the way to maintain its position as the leading projects market in the region, with more than $ 58 billion worth of contracts already awarded in 2011, according to Mohamed H. Zakaria, CEO and general manager of Saudi Steel Profile Company.

Mobile telephony's increasing prevalence, along with young users' demand for valueadded services and broadband, will encourage operators to provide innovative applications and content such as mobile lotteries and short message service (SMS) quizzes, according to a new analysis from Frost & Sullivan.

operating margins,” Zelba noted.

The mobile telephony market earned revenues of $6.32 billion in 2011 and by 2018 the figure is likely to reach $7.42 billion, said the research and consulting firm in its report.

Morocco could leverage its advantageous geographic location, as many large companies from Europe (especially France) view it as a viable outsourcing destination, the report added.

“Obviously, the current boom for project development continues to be a combination of high oil prices, demographic and economic growth, and a political commitment to invest in domestic infrastructure,” Zakaria told Khalil Hanware of Arab News in an exclusive interview.

“The Moroccan telecom market will also benefit from the advanced regulatory environment, which fosters competitive conditions,” said Frost & Sullivan senior research analyst Jonas Zelba.

“These investors will be looking to outsource their production, customer service and call centres to reduce costs,” noted Zelba. “Telecom operators can gain additional revenue streams by providing them with call centres and becoming a third-party service provider.”

“On the other hand, intense competition is stoking price wars and thereby, slashing

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Mobile revenue growth is expected to be lesser than subscriber growth, mostly due to reduced tariffs and the addition of low-income subscribers, which decreases the average revenue per user.

“Demand for steel continues to grow. Though a number of products that used to be made only of steel has been switched to aluminium and plastics, the demand for steel is continuously rising, from a mere 28 million tons annual consumption in the year 1800 to 1.60 billion tons today and continues to grow.” Arab News, 01/10/2012

Trade Arabia, 18/10/2012

30/10/12 16:52:52

SAUDI AVIATION

AVIATION SECTOR INTEGRAL PART OF THE SAUDI ECONOMY

The sector accounts for 1.8% of the Kingdom’s GDP and provides some 152,000 jobs, a new report shows. Commercial aviation is a critical component of the Saudi Arabian economy, contributing some 1.8% of the Kingdom’s GDP or SR30.2 billion annually, a study commissioned by the International Air Transport Association (IATA) and completed by Oxford Economics, has revealed. The study was presented to Prince Fahad AlAbdullah, President of the General Authority for Civil Aviation (GACA) and Chairman of the Board of Saudi Arabian Airlines, by Tony Tyler, IATA’s Director General and CEO who was visiting the Kingdom.

the full implementation of e-Freight in the Kingdom. “Aviation is a critical component of the Saudi economy. Saudi Arabia’s 27 airports handle over 54 million passengers annually, and the numbers are growing at double-digit pace. The aviation investments made in the Gulf region in recent years shows the vital role aviation can play in building and diversifying economies,” he continued.

Aviation is a quality employer, providing work for some 152,000 people in the Kingdom, the study said, adding that the productivity of these jobs is 1.8 times higher than the average.

“The new King Abdulaziz International Airport project is a good example of such important investment. It is essential that the Saudi government continue with those policies to support the efficient development of connectivity by avoiding unreasonable taxes and onerous regulation, and building sufficient infrastructure,” said Tyler.

In addition, aviation-enabled tourism into the Kingdom employs a further 139,000 people and supports some SR23.6 billion of economic activity annually, the report said.

During his visit, Tyler also met with Saudi Arabian Airlines Director General, Eng. Khalid Almolhem, executives of Saudi Arabian Airlines, and government officials.

In total, aviation and aviation-enabled tourism accounts for 3.2% of Saudi Arabia’s GDP and 3% of employment, the study noted.

Topics under discussion included further liberalisation of airspace and the development of Saudi Arabian Airlines and aviation in the Kingdom.

“Aviation is a force for good in our world. The industry has turned our planet into a global community by connecting people to business, bringing products to markets, facilitating journeys of discovery and uniting families and friends. This has a significant economic impact. Globally, aviation provides employment to some 57 million people and supports $2.2 trillion in business. And in Saudi Arabia, aviation and aviation-enabled tourism supports 3.2% of the Kingdom’s GDP and 3.0% of the workforce,” said Tyler. IATA’s Director General and CEO also noted the intention by the government of Saudi Arabia to enable an e-customs platform, and hoped that this could lead to a phased implementation and eventually facilitate

ABCCNEWSLETTER 3.indd 16

The IATA also concluded agreements to accredit Saudi Arabian Airlines’ training centres as authorised training centres of the IATA Training and Development Institute. This is seen as a significant step for the development of aviation’s human capital in the region. Meanwhile, the possibility that Saudi Arabia could open its domestic market to other airlines in the Gulf Cooperation Council (GCC) might lead to the liberalisation of the skies in the Middle East. Earlier this year, Saudi authorities announced that they were seriously considering a move to allow other carriers from within the GCC access to operate services in the Kingdom’s domestic market.

Over the past decade, the gap between growth rates in Middle East long-haul and intra-regional traffic has widened. Between 2000 and 2010, intra-regional and domestic traffic in the Middle East expanded about 150%, compared with a 179% increase in international traffic, with the bulk of the latter accountable to the Gulf carriers, full service and low-cost carriers (LCCs). This trend is expected to continue. Over the next 20 years, intra-regional and domestic traffic is expected to expand at about 5-5.1% p/a, well behind the overall forecast traffic growth of 6.4-6.6% p/a. Domestic and intra-regional growth rates in the Middle East are expected to be roughly in line with average global traffic growth, despite the fact regional economic and population growths are expected to grow substantially above world averages. Intra-regional traffic will be driven by increasing regional prosperity, the high labour mobility between Arab countries and young local populations. One positive sign is the regional fleet outlook. Wide-body aircraft have dominated aircraft ordering in the Middle East over the past decade, but in recent years, substantial numbers of short-haul aircraft have been added to regional order books. Much of this has been driven by the arrival and expansion of LCCs, as well as smaller Middle East carriers adopting new operational niches. LCCs today still only supply a little more than 11% of Middle East intra-regional capacity, yet account for more than one-third of the region’s narrow-body orders. Saudi Gazette, 17/10/2012

30/10/12 16:52:52

BAHRAIN ENERGY

BAHRAIN IN PUSH FOR ALTERNATIVE ENERGY

development of a large-scale liquefied natural gas import terminal. Tatweer’s success in increasing fossil fuel production is likely to ensure the role of fossil fuel as the most cost-effective power source at the consumer level for some time to come. Secondary obstacles to an alternative energy segment include high real estate prices and the lack of a legal framework. Land is limited on the 765-sq-km island, and renewable energy projects, particularly solar, require sizable areas for development. Bahrain also lacks formal legislation that would better facilitate sector development, such as tax incentives or the re-selling of carbon dioxide no longer being used back to the state’s electric grid network. Similarly, there is an absence of legislation regarding a formalised process for integrating electricity output from renewable plants to the grid. Although the obstacles to wide-scale renewable energy remain significant, the market conditions for renewable technology are continually improving. “In just the past two years, the cost of producing 1 MW of solar energy using American technology has dropped to $2m from $3m,” Rob Sobhani, the president of Caspian Energy Consulting, told CNN in mid-August. “The price of smart grid technology has fallen to $5m per MW from $6m per MW.”

The Kingdom of Bahrain has edged one step closer to developing a viable alternative energy infrastructure with its implementation of a solar energy project in the Awali Township of Manama. The 5MW, utility-scale photovoltaic solar facility was arranged as a joint venture between the National Oil and Gas Authority (NOGA), the Bahrain Petroleum Company (BAPCO), Caspian Energy Holdings and Petra Solar. The project marks one of the Gulf region’s first tendered utility-scale solar projects.

The Kingdom currently meets its domestic electricity demand exclusively with fossil fuels – 85% from natural gas and 15% from oil. Vision 2030, a comprehensive plan for economic development through 2030, includes a benchmark for 5-7% of installed capacity to stem from renewable sources.

The pilot venture is currently in the developmental phase, with the facility’s functionality and cost-effectiveness within the macro energy sector yet to be determined. Pending proper execution, however, the project may serve as a pioneer for the establishment of a local renewable energy market.

Yet cost-effectiveness remains a crucial factor for fully integrating an alternative energy infrastructure. Bahrain currently enjoys an adequate supply of natural gas – 1.7bn standard cu feet per day – to meet its industrial, manufacturing and domestic electricity demands. Although the government has moderately raised the price of gas to $2.25 per million British thermal units, an energy subsidy continues to keep the price low, which inhibits the development of a sizable market for alternative energy.

According to Abdul Hussain Ali Mirza, Bahrain’s minister of state for electricity and water affairs, “Following a successful implementation of this pilot project, we expect other projects to follow in the near future. Through strategic alliances with technologically advanced partners, NOGA aims to diversify the energy supply sources that will help achieve the goals of Bahrain Vision 2030.”

ABCCNEWSLETTER 3.indd 17

In addition to the subsidy, the Kingdom is actively engaged in increasing its oil and gas supply through various enhanced oil recovery (EOR) techniques, undertaken by the government’s upstream exploratory company, Tatweer, as well as through the

Another policy trend linking to smart technology is Bahrain’s e-Government initiatives, which aim to apply smart grid technology to several components of infrastructure, such as street lighting, parking meters, automated management systems, and perhaps electric vehicles. The increasingly more affordable technology used for the Petra Solar project may have an important ripple effect for public service systems across Bahrain. “By conservative estimates from private and government experts, countries in the Middle East plan to invest around $500bn in solar energy over the next two decades,” said Sobhani. With high solar energy performance indicators (a global horizontal irradiance of 2160 kWh per sq metre per year and a direct normal irradiance of 2050 kWh per sq metre per year), growing electricity consumption rates, a renewed debate on subsidy reduction, and uncertainty regarding future domestic energy production and foreign gas suppliers, Bahrain possesses strong potential to develop a viable renewable energy market, with solar energy in particular key to potential future success. OBG, 11/10/2012

30/10/12 16:52:55

EGYPT SUEZ PROJECT

EGYPTâ&#x20AC;&#x2122;S SUEZ CORRIDOR PROJECT

The country sees huge potential in the project to regenerate its economy and attract overseas investment. Straddling one of the world's great sea routes, the Suez Canal corridor is set to become a bridge connecting Africa with Asia if a grand plan by Egypt's new government comes to fruition. President Mohamed Mursi's administration is reviving and expanding a series of projects first initiated in the late 1990s to turn the banks of the Suez Canal into a world trading and industrial centre, hoping it will earn billions of dollars and create new employment opportunities.

The plan aims to transform the corridor along the 100-mile length of the canal from an area of mostly flat, empty desert into a major world economic zone. The waterway, the main thoroughfare for the transport of cargo between Asia and Europe, is a vital source of revenue for Egypt. But Egyptian planners believe the country has yet to maximise the potential of its location at the crossroads of two continents, something they wish to address by expanding transit facilities and reducing red tape for investors.

Goods worth $1.6 trillion a year pass through the Suez Canal, or 10% of the world's total shipped goods, said Ashraf Dowidar, a consultant who has been studying the project. "We're only getting $5.4 billion of this, through the tolls of the ships going through." "Ships don't want to stop to do anything here. So this is the lost opportunity we have. If they can make them stop, at least do maintenance, do repair - a logistics area - then the whole thing will move," said Dowidar, who until recently worked for the Ministry of Trade and Industry. The government is targeting annual revenue of $100 billion from the canal in several years' time, as new projects come on stream and old ones are expanded, he said. Suez, at the canal's southern end, is now a depressed industrial town. Egypt began developing an industrial and port complex at the northern end of the canal near Port Said in the late 1990s, and a second at the southern end. The government will soon create a single authority for the corridor's development to cut through its own red tape, said Walid Abdelghaffar, a government coordinator for the corridor project. The authority's chairman will have the rank of deputy prime minister and report directly to the President. Once established, the authority will quickly start drawing up a master plan to combine all the various elements around the canal under one administrative entity to make it easier for investors and to implement policy without excessive bureaucracy. "We dream that the whole of Egypt might become a logistics centre and I think the ministers have this vision," Abdelghaffar said. The government is also putting the final touches to the first highway connecting the country with Sudan and another highway across the Nile Delta that connects Port Said with Alexandria and beyond to Libya. The canal, which opened in 1869, is operated by the Egyptian government through the Suez Canal Authority. Revenues from the waterway linking the Red Sea with the Mediterranean rose 3.6% to $5.2 billion in the financial year ended June 30 and are a key source of foreign currency for Egypt's economy, along with tourism, oil and gas exports and remittances from Egyptians living abroad. Pledges of support for the Suez Canal corridor project are already flowing in. Qatar last month promised $8 billion for gas, power, and iron and steel plants at the northern end of the canal over the next five years. Reuters, 17/10/2012

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TRADE SERVICES

ARAB BRITISH CHAMBER OF COMMERCE www.abcc.org.uk

FOREIGN OFFICE SERVICE

ABCCNEWSLETTER 3.indd 19

30/10/12 16:52:56

LEGAL

LIBYA’S GENERAL ELECTRICITY COMPANY (GECOL) ASKS COMPANIES TO FOLLOW UP ON CONTRACTS

All companies with an existing contract or order with GECOL must contact GECOL by 27 October 2012 to resolve legal situation of their contracts. On 27 September 2012, the General Electricity Company of Libya (GECOL) published a statement on its website requesting all firms with existing contracts or orders to contact the GECOL within 30 days “to resolve the legal situation of their contracts”. According to the statement, the requirement to contact GECOL also applies to those projects which had not yet started, or which had been halted in October 2011. Failure to contacting GECOL may result in cancellation of contracts or allocation of previously-awarded work to other companies. It is extremely important for foreign companies that are subject to this requirement to: review the background to the negotiation and conclusion of their contracts with GECOL; have a clear understanding of their rights and obligations under the existing contracts prior to contacting GECOL; contact GECOL prior to the deadline; and interact with GECOL during the contract review process with utmost transparency and honesty. The GECOL review appears to be part of the Libyan Government’s corruption probe which officially began after the National Transitional Council (the predecessor to the Libyan General National Congress) announced the inception of an Oil Committee in October last year with the aim of reviewing oil contracts concluded under the previous regime. The expressed mandate of the Oil Committee was to identify malpractice in deals struck under the previous administration, with the Committee having

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the power to end, amend or renegotiate current contracts if deemed necessary. Subsequently, in December 2011, Mr Abu Shagur, the Prime Minister of Libya (then the deputy Prime Minister) stated that Libya would review all contracts signed with foreign companies by the Gaddafi regime “to ensure its best interests are guaranteed”. Considering that the terms of reference of the GECOL review have not been published as at the date of this article, and that the GECOL statement does not specify what is involved in the review process, it is unclear whether the scope of investigation will be limited to corrupt transactions, or it will entail a wider review of the general suitability of the contracts to the policies of the new Libyan Government. In the past, oil companies in Libya were forced to renegotiate extensions to their oil deals with the NOC in 2008 and to agree to taking lower revenue shares and committing to large upfront costs. While the intention and purpose of the current review seems to be different to those in 2008, it would be advisable for foreign energy companies to approach GECOL with a practical strategy to ensure that both parties can (depending on the circumstances of each contract) maintain the benefits arising from an existing agreement and at the same time reach a fair balance between their respective rights and obligations under the existing arrangements and the political incentives of the Libyan Government in carrying out the contract reviews. The deadline for contacting GECOL head office in Tripoli or its regional branches is 27 October 2012. Clyde & Co, October 2012

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LEGAL

REGULATION OF QATAR INSURANCE SECTOR BY DAVID SALT AND MICHAEL EARLEY, CLYDE & CO

The Qatar Financial Centre (QFC) Regulatory Authority (QFCRA) recently announced that it is a signatory to the International Association of Insurance Supervisors (IAIS) Multilateral Memorandum of Understanding (MMoU). The IAIS represents insurance regulators and supervisors from 190 jurisdictions and issues global insurance principles, standards and guidance papers for supervisors on insurance supervision. Becoming a signatory to the MMoU is a significant development for the QFCRA, as it will enable the QFCRA to exchange supervisory information globally with other insurance supervisors potentially strengthening its already considerable governance and enforcement structures. Pursuant to the terms of the MMoU, the QFCRA will have a formal basis for cooperation and information exchange with other "Signatory Authorities" in

relation to the supervision of insurance companies where cross-border issues arise (the term "Signatory Authorities" is defined as "any insurance industry supervisor who is an IAIS member or is represented by an IAIS member"). The scope of the MMoU extends to not only issues relating to the supervision of insurance companies (such as licensing, ongoing supervision, and winding-up procedures), but also includes the supervision of insurance intermediaries and AML / CFT matters. Although the MMoU clarifies that it is not intended to create legally binding obligations or to modify or supersede any jurisdictional law, nor to affect any provisions under multilateral or bilateral agreements, the Signatory Authorities are expected to provide one another with the "fullest" assistance possible (consistent with their regulatory functions).

Confidentiality The Signatory Authorities may only make information requests where they have a legitimate interest in the information they are seeking. The implementation of confidentiality in respect of information, and the prerequisite of having a legitimate interest in the information being sought assists in eliminating "fishing expeditions" by Signatory Authorities seeking information in other jurisdictions, and ensures that sensitive information relating to insurance companies is not made available for wider dissemination. If as a requirement of local, federal, or international law the Requesting Authority is required to share the confidential information of a Requested Authority with third parties, the Requesting Authority will be required to first notify the Requested Authority, obtain consent from that authority, and ensure that each recipient agrees to maintain the confidential status of the information provided that it has the legal authority to do so. If consent from the Regulated Authority is not given, the Requesting Authority is required to use all reasonable legal means to "resist" the demand to disclose the confidential information. The model of the QFC (and more specifically the QFCRA) has been designed generally to reflect the UK Financial Services Authority (FSA) and other similarly regulated environments. As a signatory to the IAIS MMoU, the QFCRA has direct information sharing access to not only the FSA, but regulators in Australia, Hong Kong, Singapore, the UAE and DIFC, and many others thereby ensuring that the QFCRA keeps abreast of significant developments in other jurisdictions which may impact its supervisory capacity in the QFC.

UPDATE ON ARAB TRADEMARK AND IP LAWS IRAQ Draft Trademarks and Geographical Indications Law The Iraqi authorities are currently seeking views of IP experts and lawmakers on the newly drafted Trademarks and Geographical Indications Law in the country. The proposed draft was published among IP professionals and is being discussed so that a general opinion including all the relevant details may be formed. This helps the Iraqi authorities ensure that the proposed draft meets its regulatory objectives and does not have unintended consequences. Once the draft is finalized, a committee of experts will review the latest amendments introduced during the legislative process in order to issue the final comprehensive Law.

LIBYA Trademark Office

In fact, a number of attempts were made by us in the past to achieve this purpose. However, the trademark registration procedure in Libya was not streamlined and clear cut given the precarious situation the country was going through over the last year.

Furthermore, QICCA is considered the only arbitration centre in the Gulf to adopt UNCITRAL rules. The main purpose of these rules is to reach final resolution of conflicts in the most cost efficient manner.

It is also worth noting that another important structural change has taken place in the country following the recent events, which is basically related to the Libya-Switzerland relations.

The expert arbitrators settle all disputes on a high level of professionalism and transparency.

Switzerland recently established formal relations with the Libyan Transitional Government after a 3-year breakdown of the diplomatic relations. The implication of this is that it will be possible to file new trademark applications for Swiss applicants in Libya once the Libyan Trademark Office is operational. The Office is still not functioning at a normal pace. It is currently only examining pending applications. All new applications and search requests are kept on hold until further notice.

The arbitratorsâ&#x20AC;&#x2122; names are kept in a specialized list in the centre; however, the parties may appoint arbitrators from outside the centre. The awards rendered by the arbitrators are final and not subject to an appeal.

SAUDI ARABIA Accession to Patent Cooperation Treaty The government of Saudi Arabia announced back in 2009 its approval of the countryâ&#x20AC;&#x2122;s accession to the Patent Cooperation Treaty. It is now expected that the Saudi authorities will deposit their instrument of accession to the PCT at the World Intellectual Property Organisation (WIPO) by the end of this year.

For the first time since 1977, the Libyan Trademark Office has started issuing trademark certificates of registration.

QATAR

The first batch included trademarks filed by our associates. This development is an explicit recognition by the authorities in Libya of the growing importance of trademark protection.

The Qatar International Centre for Conciliation and Arbitration (QICCA) declared that a new set of arbitration rules was adopted as of May 1, 2012.

The countries from the Arab region that are members of the PCT are as follows: Algeria, Bahrain, Egypt, Libya, Morocco, Oman, Qatar, Sudan, Syria, Tunisia and the United

By way of background, the new UNCITRAL arbitration rules are set by the UN General Assembly as revised in 2010.

Arab Emirates.

This means that the registration certificates of all pending trademark applications (that have been accepted and published) are expected to be issued in the near future.

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New Arbitration Rules

SABA IP Bulletin, September 2012

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ARABIC SECTION

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ARABIC SECTION

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ARABIC SECTION

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ARABIC SECTION

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Opportunities in

LIBYA

Wednesday 21st Nov 2012 3.30 – 6pm

Followed by a networking reception

ARAB BRITISH CHAMBER OF COMMERCE

43 Upper Grosvenor Street London W1K 2NJ

Keynote speaker:

Lord Marland Parliamentary Secretary for Business, Innovation and Skills (BIS)

Federation of Libyan Chambers

Embassy of Libya

of Commerce, Industry & Agriculture

Designated High Value Opportunities by UKTI, with one of the fastest growing GDP in the world, substantial capital reserves from the petroleum sector and a production capacity returning to its pre-2010 levels, Libya has managed to bounce back from the political turmoil of the last year. The potential opportunities are abundant for UK companies seeking to trade with and invest in Libya as the country moves forward with its reconstruction and becomes more integrated within the global economy. UK companies wishing to take advantage of the commercial opportunities emerging from Libya's plans for growth need to begin building relationships with decision makers in the country’s public and private sectors. Business in Libya is based on trust and transparency and UK companies should expect to meet contacts several times before gaining a foothold in the market. With Lord Marland: Parliamentary Secretary in the Department of Business, Innovation and Skills (BIS), and Chairman of UK Trade & Investment’s British Business Ambassador’s Group, as the keynote speaker, the Opportunities in Libya event will provide delegates with a platform for dialogue and discussion, facilitating partnerships with Libya as it moves ahead with its ambitious plans to modernise its infrastructure and diversify its economy.

TO REGISTER PLEASE GO TO WWW.ABCC.ORG.UK/OPPORTUNITIES-IN-LIBYA ABCC members £10 (inc. VAT). Non-members £40 (inc. VAT) / per person. Limited spaces available.

For more information please contact Ralph Taha at the Arab British Chamber of Commerce Tel: 020 7659 4897 Email: ralph@abcc.org.uk

ABCC operates an advance payment policy. All payments must be received at least one week prior to the event date.

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EGYPT TRADE TENDERS MISSION

27 27

Following the first democratic elections in June 2012, the newly elected President of Egypt, Mr Mohammed Morsi, came to Brussels on one of his first overseas trips, indicating EU to be the major economic partner for the post-revolution Egypt. Against this backdrop, the EU remains strongly committed to the historic transition in the Egyptian economy. Under the leadership of the Rt Hon Catherine Ashton, all European small and mediumsized enterprises (SMEs) are invited to participate in the Trade Mission to the EU-Egypt Task Force taking place on 13-14 November 2012 in Cairo. Bringing together economic and political leaders from both sides of the Mediterranean, the EUEgypt Task Force aims to boost investment, open up markets, revive tourism, create jobs and offer new opportunities for the cooperation between EU and Egyptian companies.

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Why Join Us?

How to Join?

Egypt is the second biggest market in Africa with the largest consumer population in the Middle East (83 million). It is the home of the Suez Canal worth ÂŁ2.5 billion of annual revenue, and a well-established consumer of British goods, railways and capital projects.

For a detailed agenda click here

The Trade Mission will be an opportunity for British companies to have bilateral meetings with Egyptian ministers and officials, as well as network with potential Egyptian business partners. Participants will also have an opportunity to meet senior representatives of the European Investment Bank and the European Bank for Reconstruction and Development.

http://www.abcc.org.uk/Pages/ DocumentManager/Bulletin/AGENDA%20 -%20EU%20Egypt%20Task%20Force%20 Business%20Tourism%20Summit%20 13-14%20November.pdf For more information or to take part in this trade mission, please contact Mr Omar Bdour at the Arab British Chamber of Commerce on E: omar@abcc.org.uk T: 020 7659 4860

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TENDERS

QATAR SOFTWARE AND SERVICES FOR BASIN MODELLING SOFTWARE

Tender No: GT12112800

EGYPT The Egyptian Railways Maintenance & Services Co. (ERMAS) has announced its tender 27/ external/2012 for the supply of:

1,000 Semi-finished Mono Block Wheels for Locomotives Offers should be submitted to the company in two envelopes as follows: 1st Envelope (Technical Offer) enclosing all the information and documents required according to the tender document as well as the amount of the required security deposit being Euro 20,000 2nd Envelope (Financial Offer) containing details of prices, total offer and position regarding taxes and stamps duties. Tender Document: A copy can be obtained from the above address at LE5,000 + postage Contact ERMAS Al Sabtia Street, Rod El Farag, Cairo, Egypt, Tel: +202 2576 8035, Fax: +202 2576 1318 Deadline: 04/11/2012

KUWAIT Roads, Bridges and Infrastructure

Kuwaitâ&#x20AC;&#x2122;s Central Tenders Committee has approved the award of four infrastructure contracts worth a total of $433 million (KD121.9m). The largest project approval is for the construction of roads and intersections in Kuwait City which is valued at KD34.9m. AlAhmadiah Contracting & Trading Company will carry out the work. The second largest contract in this round is to build the roads, bridges and rainwater drainage systems for the Second Ring Road and Damascus St valued at KD34.4m. This is awarded to the Kuwait Company for Process Plant Construction & Contracting.

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Contact Qatar Petroleum PO Box 3212, Doha, Qatar Tel: (974) 4440 2000; Fax: (974) 4483 1125 www.qp.com.qa Deadline: 18/11/2012

Scope of Work: Purchase of Basin Modelling software for QP Research and Technology Department. This purchase shall include 4 years M&S after guarantee period expires, user training and consultancy services. In order to make provision for consultancy services as required, this shall be a calloff contract. There are two vendors with solutions that have the required functionality. Therefore this will be a classified tender.

Diagnostic Workstation For Radiologist

Bid Bond: QAR300,000 Contact Qatar Petroleum PO Box 3212, Doha, Qatar Tel: (974) 4440 2000; Fax: (974) 4483 1125 www.qp.com.qa Deadline: 18/11/2012

UAE

Field Trial Of Hydrocyclone Technologies In Dukhan

Tender No: 2121200044 Tender Document Cost: AED Contact Dubai Electricity & Water Authority Office of the Contracts Manager, Zabeel East, PO Box 564, Dubai Tel: (9714) 3244444 Fax: (9714) 3248111 Email: contracts@dewa.gov.ae www.dewa.gov.ae Deadline: 15/11/2012

Tender No: LT12112600 Bid Bond: QAR50,000 Document Cost: QAR200.00 Scope of Work: The main objective of this project is to compare various advanced hydro-cyclone technologies available in the market which suits the Dukhan operations requirement of OIW content in the produced water. Contractor shall carry out field trial of various Hydro-cyclone technologies including supply of all material and equipment. Contact Qatar Petroleum PO Box 3212, Doha, Qatar Tel: (974) 4440 2000; Fax: (974) 4483 1125 www.qp.com.qa Deadline: 11/11/2012 Miscellaneous PC Software

Tender No: LTC/LT12MT0034 Bid Bond: QAR 8,000 Document Cost: QAR500 Contact Qatar Petroleum PO Box 3212, Doha, Qatar Tel: (974) 4440 2000; Fax: (974) 4483 1125 www.qp.com.qa Deadline: 04/11/2012 Ecs For Mic Emergency Management Plans

Tender No: LT12112800 Bid Bond: QAR45,000 Scope of Work: QP-MIC intends to appoint a Contractor to carry out Engineering Consultancy Services (ECS) to prepare and present the Emergency Management Plans for MIC. The plans shall address all hazards that may result in a major incident affecting more than one industry or the Community Area.

Tender No: STC/ST12MT0296 Bid Bond: QAR9,000 Document Cost: QAR 100 Contact Qatar Petroleum PO Box 3212, Doha, Qatar Tel: (974) 4440 2000; Fax: (974) 4483 1125 www.qp.com.qa Deadline: 12/11/2012

Consultancy Services for Groundwater Studies including Aquifer Storage and Recovery, and Development of an Integrated Ground Water Management and Protection Policy in the Emirate of Dubai

Construction of Garage (Auto Workshop) - Distribution Equipment Workshop and Associated Facilities on Plot No. 8140180 at Al Ruwaiyah, Dubai

Tender No: 2131200075 Tender Document Cost: AED2000 Contact Dubai Electricity & Water Authority Office of the Contracts Manager, Zabeel East, PO Box 564, Dubai Tel: (9714) 3244444 Fax: (9714) 3248111 Email: contracts@dewa.gov.ae www.dewa.gov.ae Deadline: 29/11/2012 Consultancy Services for Reviewing and Upgrading Fire Protection Design Specification

Tender No: 2121200054 Tender Document Cost: AED500 Contact Dubai Electricity & Water Authority Office of the Contracts Manager, Zabeel East, PO Box 564, Dubai Tel: (9714) 3244444 Fax: (9714) 3248111 Email: contracts@dewa.gov.ae www.dewa.gov.ae Deadline: 05/12/2012

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GULF CONSTRUCT ION

CONSTRUCTION PROJECTS IN THE GULF

Water Recycling Plant Project Value: $5 bn Completion Date: Q2-2014 Urjuan Mixed-Use Development Project Value: $10 bn Completion Date: Q3-2014 Qatar Entertainment City Project Value: $3bn Completion Date: 2015 Contact Qatar Entertainment City http://www.ecqat.com/en/contact-us.html Barzan Gas Development Project Value: $9.4bn Completion Date: Q3-2016

In the last issue of this bulletin we published details of new and ongoing construction projects in Bahrain, Kuwait and Oman. This report concludes the survey with Qatar, Saudi Arabia and the UAE.

Retail Sector

QATAR PROJECTS

Barwa Al Doha Mall

Qatar is planning for the World Cup 2022 and by that time it should have implemented the following: -$35 billion rail plans; -The number of hotels will be increased to 240, with over 90,000 rooms; -12 stadiums will have been constructed to seat over half a million people; -The $4 billion Qatar-Bahrain causeway will be completed; -Over $20 billion to be spent on building and expanding the country’s roads. Doha Cultural Village (KATARA) Project Value: $82 million http://www.katara.net/english/ Doha Festival City Project Value: $1.7bn Completion Date: Q4-2014 http://festivalcitydoha.com/Contact.html Education City Project Value: $6.6bn Completion Date: Q2-2012 http://www.myeducationcity.com/ Lusail Mixed-Use Project Value: $33bn Completion Date: 2018 Msheireb Project Value: $5.5bn Completion Date: Q4-2017 New Doha Int’l Airport Project Value: $11.1bn Completion Date: 2015 Contact http://www.ndiaproject.com/

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New Doha Port (Phase I) Project Value: $7bn Completion Date: Q1-2016 Contact New Port Project Steering Committee http://www.npp.com.qa/Current%20Tenders.html Qatar National Museum Project Value: $434 mn Completion Date: 2014 http://www.qnm.8m.com/ Pearl Qatar Project Value: $5bn Completion Date: Q3-2013 http://www.thepearlqatar.com/ Sidra Medical and Research Centre Project Value: $7.9 bn Completion Date: Q4-2012 Qatar National Convention Centre Officially opened in December 2011 http://www.qatarconvention.com/ Museum of Islamic Art http://www.mia.org.qa/ Solar Power Complex Project Value: $1 bn Completion Date: Q3-2018 Qatar National Railway System (Phase I) Project Value: $35 bn Qatar Railways Development Company German rail operator Deutsche Bahn agreed a €17bn contract with Qatar Railways Company (RAIL) to set up a joint corporation to build and operate passenger and freight rail services in Qatar. Qatari Diar, the real estate arm of Qatar Investment Authority, is the majority shareholder in Qatar Railway Development Company (QRDC). The entire project will be completed by 2026, but the sections required for visitors to the 2022 World Cup will be completed by 2020.

Marina Mall Project Value: $275 mn Completion Date: 2014 GLA: 57,605 sqm

Project Value: $824 mn Completion Date: 2014 GLA: 271,000 sqm Doha Festival City Project Value: $1.7 bn Completion Date: Q4-2014 Contact http://festivalcitydoha.com/contact.html

Hotels Mandarin Oriental Hotel Project Value: $80 mn Completion Date: Q1-14 Capacity: 160 rooms Planet Hollywood Hotel Entertainment City Project Value: $0.1 bn Completion Date: Q4-2014 Capacity: 300 rooms Four Seasons Hotels and Resorts Project Value: $150 mn Completion Date: Q2-2014

Healthcare Hamad Medical City Project Value: $1.1 bn Completion Date: Q2-2013 Capacity: 1,340 Beds

Energy QEWC / KAHRAMAA – Ras Laffan IWPP Expansion Project Value: $3.0 bn Completion Date: Q3-14 Capacity: 4,200 MW Contacts Qatar Electricity & Water Company (QEWC) http://www.qewc.com/ Qatar General Electricity & Water Corporation (KAHRAMAA) http://www.km.com.qa/en/Pages/home.aspx

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GULF CONSTRUCTION

KAHRAMAA - Solar Power Complex

Transport

Al Raha Beach Complex

Project Value: $1.0 bn Completion Date: Q3-18

Current infrastructure projects include airport renovations and a number of massive rail developments, such as the Mecca monorail, Haramain High Speed Rail, the Land Bridge and the North-South Mineral Line.

$18.5bn mixed-use hospitality development involving reclaimed land; comprising 50 highrise and a number of low-rise buildings for about 120,000 people.

KAHRAMAA - Facility D IWPP Project Value: $2.0 bn Completion Date: Q4-15 Capacity: 2,000 MW Ras Laffan Polysilicon Plant Project Value: $1bn Completion Date: Q2-13 QEWC / KAHRAMAA - RasLaffan IWPP Expansion Project Value: $3bn Completion Date: Q3-14 Capacity: 235 mmgpd

SAUDI ARABIA PROJECTS New Economic Cities Value: $110bn http://www.sagia.gov.sa/Why-Saudi-Arabia/ Economic-cities/ Education Projects The 2012 Saudi budget has set aside $45bn for the education sector, with the construction of 742 new schools and 40 new colleges planned. Princess Noora University Value: $13bn This will have capacity for 26,000 students. 1,000m high skyscraper as part of Jeddah’s Kingdom City Value: $10bn Housing Programme A budget of $67bn has been set aside for the construction of 500,000 housing units. The first of these housing projects was awarded in November 2011 when the Saudi government announced it had set aside $22bn for projects in 11 regions around the country. Jabal Omar (Mecca) residential and office towers with commercial centre and 6 luxury hotels Value: $33bn Faisaliah Tower Complex Value: $450mn Expansion of tower complex in Riyadh with construction of retail space and luxury hotel Al Rajhi Tower Project, Riyadh Value: $500mn Project includes offices, retail outlets and luxury hotel

Railway Development Programme Value: £3.2bn The Kingdom plans six major rail developments over the next five years which means a total of 3,000km new track. The North-South railway is near completion; the Haramain High Speed Rail is under construction; all others are at the planning stages. Next to be launched will be the flagship Saudi Landbridge Project. Sadara Petrochemicals Complex Value: £17bn Opportunities are coming available as the Kingdom plans this world-scale integrated petrochemical complex in Jubail Industrial City. Healthcare Development Programme Value: £70bn The Ministry of Health is seeking to construct 138 new hospitals, 2,000 primary care centres and 12 new medical cities over the coming five years. The project will create a total of 22,000 additional hospital beds across the country and requires significant input from foreign partners to complete. Airport Developments Value: £3bn The Saudi General Authority for Aviation (GACA) is planning to replace and upgrade 27 regional airports and increase the capacity at three international airports, Riyadh, Jeddah and Medina. Seaports Opportunities include ports construction and operations in King Abdullah Economic City and Jizan Economic City, the development & administration of a Logistics Park adjacent to Yanbu Commercial Port, and a 2nd Container Terminal in Jubail Commercial Port. Water, Waste and Desalination Value: £4bn Extensive investment is being made in the country’s water and sewerage, desalination and related infrastructure.

UAE PROJECTS Khalifa City Masterplan budget: $40 billion Comprises buildings for all federal ministries, local government offices and embassies. Completion Date: 2030 Yas Island Development

Value: $667mn This project consists of villas, apartments and luxury hotel

$39 billion tourist development; it includes residential accommodation, hotels, beaches, marinas, retail space, golf and equestrian facilities. Aldar Properties http://www.aldar.com/welcome_to_aldar.en http://www.yasisland.ae/

Sudair City Development

Burooj Properties Real Estate Project

Value: $40bn Sudair city is mixed use development including residential, commercial, entertainment and educational facilities. The city will span an area of 258 million m2 north of Riyadh. Scheduled Completion: 2015

$24 billion real estate community project includes 11 residential towers, offices, four hotels and a shopping mall. http://www.burooj.ae/en/projects.asp

Half Moon Bay resort, Eastern Province

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Al Reem Island Development $7.8 billion mixed-use community next to the bridge connecting Al Reem Island to Abu Dhabi city; Several 40 and 50 storey towers will form the central business district. It will include two 80storey buildings and house approximately 80,000 people. http://business.abudhabi.ae/egovPoolPortal_WAR/ appmanager/ADeGP/Business?_nfpb=true&_pag eLabel=P6800317491243425964701&did=115606& lang=en Sheikh Mohammed Bin Zayed City $6.5bn masterplan budget; it will have 374 residential and commercial buildings as well as the associated infrastructure and entertainment facilities. Main Consultant: Keo International Consultants Main Consultant Architect: Daniel Weinbach & Partners Completion Date: Q4 2012 Abu Dhabi Light Rail Project Value: $3bn. Rail project involves 350km of track. 18 km of the Metro lines and 40 km of the light-rail transit system will be designed in the first phase of the project. Most of the proposed network is expected to be underground. Rail line will serve Central Station, North Island, Al Wahda, Adnec, and Zayed Sports City. Abu Dhabi Department of Transport Completion Date: 2015 http://abu-dhabi-metro.com/ MGM Grand Hotel Value: $3bn. The MGM Grand project will have two branded luxury hotels and more than 1,200 rooms. It will also feature a 12,000 seat arena, retail, restaurants, waterfront residences and private yacht berths. LNG (Liquefied Natural Gas) Bunker Station in Fujairah The new station is to be built by an alliance of the International Petroleum Investment Company (IPIC) and Mubadala. Contact: Abu Dhabi Gas Industries Ltd (GASCO) North Wathba Residential Housing Project One of the largest housing projects to date, covering an area of 4,178 hectares and 13,150 new homes. Abu Dhabi Executive Council School Projects 24 new schools are to be built along with the construction of six special-needs rehabilitation centres, including new autism centres in Abu Dhabi and Al Ain. In addition, ten existing schools are to be refurbished. Healthcare Projects Healthcare projects include Mubadala Healthcare’s Abu Dhabi Cleveland Clinic on Sowwah Island, which will be a 364-bed facility.

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BUSINESS EVENTS

TRADE FAIRS, CONFERENCES AND EXHIBITIONS Algeria Future Energy: Unleashing Algeria’s Energy Potential – Renewables, Unconventionals and Upstream Oil & Gas 4-6 November 2012 Algiers, Algeria Contact CWC Group Tel: +44 20 7978 0000 Email: enquiries@thecwcgroup.com www.thecwcgroup.com/contact/ Future Retail A brand new event providing the latest technologies, models and strategies for increasing sales, driving profits and inspiring innovation across the retail globe 5-7 November 2012 Jumeirah Beach Hotel, Dubai, United Arab Emirates Contact Lucy Keenan Marketing Manager Tel: +971 4 407 2568 Fax: +971 4 335 1891 Email: lucy.keenan@informa.com Islamic Banking Summit Africa 6-7 November 2012 Djibouti Palace Kempinski Hotel, Djibouti Contact Abdul Muhsin Head Marketing & Media Megaevents Email: abdul@megaevents.net Saudi Build 2012 Scale to New Construction Heights 11-14 November 2012 Riyadh International Convention & Exhibition Centre, Riyadh, Saudi Arabia Contact Riyadh Exhibitions Company (REC) Tel: +966 1 2295604; Fax: +966 1 2295612 Email: info@recexpo.com Winning Business Through International Tendering 14 November 2012 Hilton London Tower Bridge Hotel, 5 More London Place, Tooley Street, London SE1 2BY Contact: UK Trade & Investment London International Trade Team Email: events@uktilondon.org.uk

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Dubai Women Establishment (DWE) to host the Third Arab Women Leadership Forum 19 – 20 November 2012 Grand Hyatt, Dubai, UAE Contact Samar Al Marri DWE Tel: +971 4 4504562 Email: Samar.AlMarri@dwe.gov.ae Gulf Traffic Keeping the Middle East on the Move 19-21 November 2012 Abu Dhabi National Exhibition Centre, UAE Contact Informa Exhibitions Tel: +971 4 4072694; +971 4 4072710 Email: hotels@informa.com www.gulftraffic.com 3rd PPPs in Emerging Markets Summit & Workshop 25-27 November 2012 Hyatt Regency, Dubai, UAE Contact KW Group Tel: +603 76626888 Email: jennifer.tay@kwg.com.sg www.kwppp.com PE Partners Private Equity Saudi Arabia 2012 26-27 November 2012 The Ritz Carlton, Riyadh, Kingdom of Saudi Arabia Contact Janet D’Souza Tel: +971 4 335 2437 Fax: +971 4 335 2438 Email: register@iirme.com http://www.iirme.com/ pepartnerssaudi/contact-us Gulf Solar Energy Congress & Exhibition 27-28 November 2012 Dubai, UAE Contact Green Power Conferences Email: samantha.coleman@ greenpowerconferences.com www.greenpowerconferences.com/ GSEC

Saudi Water and Power Forum 2012 Gateway to the Kingdom’s power and water industry 2-4 December 2012 Hilton Jeddah, Saudi Arabia Contact CWC Group Tel: +44 20 7978 0000 Email: CWCConferences@ thecwcgroup.com http://ksawpf.com/enquiries/ EPC Sphere Middle East 2012 Engineering Procurement Construction Conference 3-4 December 2012 Hilton Abu Dhabi, UAE Contact Chander Kant Verma Email: ck.verma@cerebralbusiness.com Tel: +91 95409 91011 www.cerebralbusiness.com/epcmiddleeast/ Natural Gas Investment in Qatar: Assessing post-moratorium opportunities 6 December 2012 Central London, UK Contact Andrew Gibbons Tel: +44 (0) 20 7827 6156 Email: agibbons@smi-online.co.uk www.smi-online.co.uk/qatar-gas.asp Food Security 2012 Sustainable intensification: miracle or mirage? 10-11 December 2012 Chatham House, London, UK Contact Zuzana Feachem Chatham House Tel: +44 (0)20 7957 5755 Email zfeachem@chathamhouse.org Floating Liquefied Natural Gas (FLNG) Master-class held in association with: Energy and Power 14 December 2012, Central London, UK Contact Teri Arri Tel: +44 (0) 20 7827 6162 Email tarri@smi-online.co.uk www.smi-online.co.uk/floating-lng.asp

The Hospitality Show 2013 The UK’s largest foodservice and hospitality show 21-23 January 2013 NEC Birmingham Contact Keterina Albanese Event Co-ordinator Tel: +44 (0) 207 886 3066 Email: keterina.albanese@ freshmontgomery.co.uk http://www.hospitalityshow.co.uk Middle East and North Africa Energy 2013 Adapting to new resource realities 28-29 January 2013 Chatham House, London, UK This conference will explore the intersection of energy, security, and international politics in the Middle East and North Africa and ask how changing global and regional dynamics are affecting the energy industry in the region. Speakers include: HE Mohamed bin Dha’en Al Hamli, Minister of Energy, United Arab Emirates Contact Conference Unit Chatham House Email: conferences@chathamhouse.org Tel: +44 (0)20 7957 5729 Green Growth: Transforming economies for competitiveness and resilience? 25-26 February 2013 Chatham House, London, UK Contact Chatham House Email: conferences@chathamhouse.org www.chathamhouse.org Project Qatar 2013 10th International construction, building, environmental technology and materials exhibition 6-9 May 2013 Doha Exhibition Centre, Qatar Contact Al Sraiya Group building Ibn Seena Street, Al Muntazah Area, PO Box 22376, Doha, Qatar Tel: +974 44325693 Email: info@ifpqatar.com www.projectqatar.com Solar Maghreb Conference 21-22 May 2013 Casablanca, Morocco Contact Green Power Conferences Email: samantha.coleman@ greenpowerconferences.com www.greenpowerconferences.com/ GSEC

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