Arab British Chamber of Commerce - Economic Focus by Distinctive Media Group Ltd

ECONOMIC FOCUS

ISSUE 1 VOL 7 SPRING 2012 MAGAZINE OF THE ARAB-BRITISH CHAMBER OF COMMERCE

> REPORTS IN ENGLISH AND ARABIC > RIYADH - A PROSPEROUS CITY > RAS AL KHAIMAH FREE TRADE ZONE > KIZAD – CORNERSTONE OF ABU DHABI’S VISION 2030 > BRAND BRITANNIA > LONDON REAL ESTATE MARKET > UK AND THE ARAB WORLD – PARTNERS FOR PROSPERITY > CHAMBER NEWS > ABCC 35TH ANNIVERSARY CELEBRATION

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

Production & Design

CONTENTS

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

Focus Reports

Saudi Aramco’s New Business Development

Tel: 0845 884 2385

Kizad – Cornerstone of Abu Dhabi’s Vision 2030

www.distinctivepublishing.co.uk

Brand Britannia – Will 2012 Bring Another Wave of Cool Britannia?

Arabic pages designed by Andrew Smith www.bellow-creative.com

London 2012 Olympic Games – The Prestige Hospitality Programme

The Global Investor Window 2012

Advertising

The Only Way to Buy- central London real estate market

Distinctive Publishing

Qatar Health & Wealth Creation

Tel: 0845 884 2340

London Central- a New Asset Class for Islamic Investors

ewan.waterhouse@distinctivepublishing.co.uk

Addressing Iraq’s Demand for New Housing

UK and Arab World – Partners for Prosperity

Quarterly Economic Survey

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 1751-4339

Riyadh- a Prosperous City

Ras Al Khaimah Free Trade Zone- a Decade of Success

Chamber News Chamber Activities

ABCC 35th Anniversary Celebration

New Chamber Members

Arabic Section

ECONOMIC FOCUS

RIYADH - A PROSPEROUS CITY Riyadh has been one of the world’s fastest-growing cities and is rapidly approaching the population of London, New York or Hong Kong. After Istanbul, Cairo and Tehran, Arriyadh is now the fourth largest city in the Middle East. In the 10 years to 2010 the metropolitan population has boomed from two million to an estimated seven million. It is also one of the world’s richest and most financially liquid cities, with high disposable incomes generating an ever-rising demand for goods and services. Despite the sheer pace of the Saudi capital’s growth, a combination of careful planning and judicious investment by the city’s Arriyadh

Development Authority (ADA) has enabled infrastructure to expand to accommodate the many new demands. There are 15 municipalities divided up into 130 different districts. In addition, there is the Diplomatic Quarter, generally referred to as the “DQ”. Here are found the majority of the 55 foreign embassies as well as the headquarters of the ADA and international organisations.

The two city centre districts are Al-Bathaa and Al-Dirah. Besides being the most historic part of Arriyadh, Al-Dirah’s old buildings are complemented by new structures, which follow the traditional style. The district is also home to commercial markets such as Al-Mu’eiqilia and the capital’s striking Grand Mosque, arguably the most impressive of the 4,300 mosques in the city.

For all its historical connections, Arriyadh is a young city in which fully 34% of its people are under the age of 15, hence the bustling schools and busy playgrounds to be found in virtually every neighbourhood. It is also an extremely prosperous city, as evidenced by the large number of up-market shopping malls, many of which can compete with London’s Bond Street or New York’s Fifth Avenue in the sheer range and extent of goods they have on sale. It stands to reason therefore that Arriyadh has a wealth of up-market retailers, along with high class restaurants serving cuisine from around the world. Since this is a major Arab capital, every part of the city has a wide offering of Middle Eastern food. There is also a huge range of international brand fast food outlets as well as many coffee shops, the traditional Arab meeting place for both friends and businessmen. Even so, the opportunities for foreign providers of goods and services to expand their presence in Saudi Arabia’s leading city remain considerable. Many international brand names, such as fast food outlets, work globally on a franchise basis. Until recently, investment by overseas retailers was always done with Saudi partners. However, important changes to the Kingdom’s investment rules mean that stand-alone operations can be established by leading international retailers, anxious

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to take advantage of the capital’s strong purchasing power. The retail market for fast moving consumer goods is still clearly substantial. There are currently some 774,000 households with an average size of 6.2 individuals. The numbers in a family are slated to decline in the next dozen years, but the ADA is expecting the number of households to rise to 1.1 million.

Population The population of Arriyadh is made up of some 60% Saudi citizens with the remainder foreigners. The greatest number of foreign citizens comes from Bangladesh, India, Pakistan, Indonesia and the Philippines. There are also workers from other Arab countries, principally, Egyptians, Lebanese, Syrians, Sudanese and Yemenis. What with European, North American, South Africans, Russian, Antipodean and now Chinese foreign personnel engaged on the vast range of new infrastructural projects, as well as working in established fields and organisations, Arriyadh has become one of the most international cities in the Arab world. This is reflected in the diverse range of cuisine that can be found in the city’s many eateries and the fact that two flourishing national English language newspapers, the Arab News and the Saudi Gazette, compete for readers.

The total employed labour force in Arriyadh is in excess of 1.7 million, almost a million of whom are Saudis, including 164,000 females. This reflects the ongoing “Saudisation” drive by the authorities, which seeks, wherever possible, to replace foreign employees with equally well-qualified or better qualified locals. The government has moved to smooth out the consequent labour cost differential by offering employers grants towards creating jobs for Saudi citizens. Contrary to the view sometimes held outside the Kingdom, the role of Saudi women in society and indeed, in the workforce, has been changing in recent years. Though many are employed in all-female surroundings, such as fashion stores or retail bank branches dedicated for the exclusive use of women, there is a growing cadre of female entrepreneurs, academics, medical staff, finance professionals and technologists. The Saudi education system has long offered both sexes the same high-quality schooling. This is evidenced by the high-tech, all-female Princess Nora Bint Abdulrahman University (PNU) with a capacity for 50,000 students, which was recently inaugurated by King Abdullah bin Abdulaziz. Working hours in Saudi Arabia reflect the movement in daytime temperatures. Most

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government offices open at 7:30 am and close at 2:30 pm. Private businesses tend to work from 9:00 am until 5:00 pm. Retail banks are open from 9:30 am until 4:30 pm. With the exception of an extended midday break, shops and markets tend to be open all day, only closing around 9:00 pm. Nearly all establishments will close for prayer times. On the many construction sites around the fast evolving capital, work carries on throughout the day and often takes place around the clock. Government offices are closed on Thursdays and Fridays. Some businesses only take the Friday for their weekend.

Infrastructure As befits a highly functional, busy capital, Arriyadh benefits from its excellent infrastructure, in which the business of government for a country of 28 million people is interlaced with the activities of commerce, industry, banking and finance, diplomacy and academia. Because so much of the city is of recent construction, the Arriyadh Development Authority (ADA) has been able to coordinate and plan its expansion, to ensure a modern highway system which includes the King Abdullah Road, two ring roads, the second of which, an eight-lane highway, is nearing completion. A third ring road is at the planning stage.

The city’s main artery is King Fahad Road, which runs roughly north to south alongside the older but much upgraded Al Olaya Street. Nevertheless, Arriyadh is not immune from acute and growing traffic congestion throughout much of the day. Indeed there are times, particularly during rush hours, when traffic becomes gridlocked. Drivers stuck in their vehicles may not always appreciate it, but their misfortune is a testament to the rapid success of one of the world’s fastestgrowing cities. The ADA planned for a significant expansion of urban infrastructure. However, in common with city planners the world over, it has found that traffic densities expand rapidly to fill all new road space. The ADA is committed to getting ahead of the curve. Beating the traffic challenge is a priority. Thus the city has plans for a comprehensive and integrated transport system aimed at alleviating congestion: this includes new and improved highways and traffic management as well as the 40-kilometer Arriyadh Light Rail project. In the King Khalid International Airport 32 kilometers to its north, Arriyadh boasts an architecturally striking and functionally efficient air gateway to the Kingdom. Equipped to handle 18 million passengers a

year through three of its four terminals, last year almost 14 million people came through the airport in some 135,000 flight movements by 36 international and domestic airlines. As might be expected of a capital which is host to the Arab Satellite Communications Organisation (Arabsat), Arriyadh offers powerful and cost-efficient telecommunications channels provided by genuinely competitive players. The privatised Saudi Telecom Company (STC) is a major land line supplier, now joined by Etihad Atheeb Telecom “GO”, while three mobile operators – STC, Mobily and Zain – offer complete 3G coverage throughout the capital and over much of Saudi Arabia. There are also 57 Internet service providers, 19 satellite communications companies, three airline telephony businesses and 28 vehicle tracking firms. Arriyadh’s telecommunications are supported by an advanced mix of fibre optic and high-speed copper wire connections, complemented by microwave and satellite links. Riyadh’s postal services are not quite up to the same standard. Home deliveries for standard mail are still the exception and post office boxes remain the norm. However, the government owned Saudi Post Corporation competes with international courier companies, such as DHL, ARAMEX, FedEx and UPS, to provide efficient and timely domestic and international services.

Power consumption in Arriyadh is met by the local generation capacity of 8,884 megawatts from 10 generating sets, operated by the Saudi Electricity Company (SEC) which is 81% government-owned. In spring 2011, GE Energy won a $500 million contract to undertake 480 MW expansion of SEC’s most recent plant (PP10) where in 2009 it had already installed 30 gas turbines in a $1 billion project. An eleventh power plant is due to come on stream, which is privately operated. At peak loading periods, extra power is drawn from the Kingdom’s national grid. The bulk of consumption is domestic with industry being the second largest consumer.

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This is followed by government demand, much of which comes from modern energyefficient buildings, and then commercial premises. Though power outages are rare, many of the new office blocks and commercial premises have backup systems in case of emergencies.

The rapid expansion of the city in recent years has meant major investments in sewerage treatment and wastewater disposal. There are currently over 100 separate new projects to upgrade and extend the system which are at various stages of completion.

Some 40% of Arriyadh’s water requirements are met from local artesian wells while the remainder is pumped to the capital from desalination plants on the coast at Jubail. Despite the extra expense, water remains relatively cheap, though charges are now being raised incrementally to encourage better conservation of this precious asset.

CONTACTS Arriyadh Development Authority (ADA) www.ada.gov.sa/eng/ada/index.aspx Copies of Investment in Arriyadh, of which the above is an extract, can be obtained from: ADA’s Mohammed Al-Sheikh at mohdb@arriyadh.net The publishers of Investment in Arriyadh are A-BCC members, Medina Publishing, who can be contacted below: Medina Publishing Ltd Tel: 07534422636 General enquiries: kitty@medinapublishing.com Editorial enquiries: peter@medinapublishing.com

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RAS AL KHAIMAH FREE TRADE ZONE - A DECADE OF SUCCESS

Reinforcing its reputation as the most cost-effective and one of the fastest emerging free zones in the Middle East, Ras Al Khaimah Free Trade Zone has witnessed significant growth in its portfolio and revenue during 2011. Defying a challenging economic climate, Ras Al Khaimah Free Trade Zone (RAK FTZ) achieved phenomenal growth with 2,033 new companies registering with the free zone during 2011, a 17% increase over the 1,740 company registrations in 2010. The spate of the new companies in Ras Al Khaimah will go a long way in boosting the Gross Domestic Product of the emirate. With a reputation for affordability, flexibility

and broad geographical reach, RAK FTZ is rapidly emerging as the preferred business hub in the region, from which investors can easily access and branch into the emerging markets. Established in 2010, the free zone is now home to some 5,000 active companies. The free zone has achieved growth not only in new registrations, but also has registered a significant growth in renewals, with 3,776 companies renewing their licences in 2011,

up from 3,271 in 2010 â&#x20AC;&#x201C; an increase of 16% year-on-year. The spurt in renewals reflects the confidence on the RAK FTZâ&#x20AC;&#x2122;s successful model and its growth strategy.

2011 Results l 2,033 companies register with the free

zone in 2011

l New company registrations up 17% l Renewals increase by 16% year-on-year

During the year under review, new companies registering with RAK FTZ represented a wide array of sectors. Dominant industries represented included Marketing and Management, Information Technology, Building and Construction, Food, Equipment, General Trading and Automobile, among others. Oussama El Omari, CEO of RAK FTZ, commented: “It is a matter of immense pride that RAK FTZ has achieved such an exceptional growth. That this growth comes amidst the prevalent challenging economic order reflects the investor confidence in our business model and re-emphasises the world-class standards, facilities and services on offer at RAK FTZ. Since our inception over a decade ago, we have believed in an open door economic development policy, which has gone a long way in gaining investor confidence from across the globe. “We have helped Ras Al Khaimah grow by welcoming new sectors and companies from various parts of the world, which has provided a major impetus to the capital investment into the emirate.” El Omari added: “The environment to grow and flourish has become a hallmark of RAK FTZ and is most admired by its investors, and this is reflected in the high number of licence renewals. The cumulative number of companies that are registered with RAK FTZ is 9,933, with over 5,000 active companies from 106 plus countries. Also, the fact that our client satisfaction is an exceptional 80%, reflects the concerted efforts by our marketing, sales and management teams to reach out to the potential investors across the globe and sustain them.”

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downturn. The fact that they also have smaller operational costs and the potential to grow has made it easier for them to weather the downturn,” he added. During the year, RAK FTZ won numerous industry accolades and awards. fDi Magazine rated RAK FTZ as the fourth best Middle East Free Zone of the Future and rated third for Best Economic Potential across the Middle East, in the 2011-2012 ranking, out of 115 free zones in the region. RAK FTZ has previously won Best Website Award during World Free Zone Convention in 2010, Middle East Logistics Awards for Best Emerging Free Zone, for three consecutive years, and Supply Chain and Transport Awards for Industrial Area of the Year. The free zone is extremely bullish about the growth potential on offer in 2012 and beyond. “We have a business model that works and this is the reason why we are growing. Hence, our plan is to continue to improve our systems and services. We will continue our programmes to achieve our goals, and most importantly, to contribute to the GDP of Ras Al Khaimah. We are also focusing on researches and studies on how to improve the processes and share the best practices, especially with the other free zones around the globe,” said El Omari. RAK FTZ is also the first and only free zone to set-up offices and promotion centres in the UAE (Dubai and Abu Dhabi) and internationally

(India, Turkey, Germany and the USA), a facet unmatched by any other free zone in the region. During the year, the free zone organised numerous seminars and road shows, and participated in various exhibitions to attract investment into Ras Al Khaimah. “Through our satellite offices in various countries, we make it easier for companies to enter the region and do business with us,” said El Omari. As an organisation, RAK FTZ is committed to the cause of Corporate Social Responsibility (CSR). RAK FTZ demonstrates its ongoing commitment by promoting, supporting, organising and participating in the activities that nurture the community spirit, promote a balanced lifestyle and help preserve the emirate’s cultural and natural heritage. RAK FTZ follows an environmentally-active business model and specialises in green businesses, such as natural wastewater treatment, solar energy and environmental impact consultation. Also, the free zone is committed to the cause of Emiratisation and its UAE National Empowerment Programme has been specifically designed to attract, recruit and develop the next generation of talented UAE nationals, and provide them with the opportunity to experience the free zone’s professional working environment and nurturing business community, thus empowering the national cadre.

RAK FTZ has a firm focus on Small and Medium-sized Enterprises (SMEs), which is reflected in the industries that are represented at the free zone. “RAK FTZ provides a range of business set-up solutions that cater to the needs of the different types of clients. It offers many aspiring entrepreneurs and business owners’ ideal solutions to enter the Middle East market. In fact, our economic model has helped small and medium businesses to grow even during the

CONTACTS Cleo Eleazar Public Relations and Media Officer Ras Al Khaimah Free Trade Zone Authority (RAK FTZ) Tel: +971-7-2077173 Email: c.eleazar@rakftz.com Or learn more about RAK FTZ by visiting: www.rakftz.com

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CATALYST FOR CHANGE - SAUDI ARAMCO’S NEW BUSINESS DEVELOPMENT

Moving beyond mega projects, Saudi Aramco’s New Business Development is embarking on a major initiative to create more value by “teaming” foreign investors with Saudi companies for partnerships that can serve as global platforms for manufacturing and supply chain management.

Chemical Company, and Petro Rabigh are “well on their way,” Ma’ashouq says the next imperative of NBD’s strategy is to help create an oil and gas services sector in Saudi Arabia that can compete globally. Part of that strategy is to identify emerging opportunities including in the areas of technology research and development.

Eight years ago, foreseeing the need for diversification in Saudi Arabia’s economy, Saudi Aramco established New Business Development (NBD), an administrative area under its Engineering and Project Management business line, tasked with enhancing the company’s potential to increase commercial revenues and to support the Kingdom’s goals of maximising economic and social benefits from its natural resources. The goal of NBD was to identify opportunities that would help the Kingdom’s shift from an oil-based economy to areas of manufacturing and production, and raise the proportion of the non-oil sector’s contribution to the Kingdom’s GDP.

A key driver for NBD is Saudi Aramco’s Accelerated Transformation Programme (ATP), unveiled earlier this year. The programme allows NBD to become a greater enabler of opportunities in the Kingdom with potential for a global footprint. Ultimately, the key to success is to identify and encourage participation in commercially viable programmes, and create the right environment for growth between local and foreign partners.

NBD’s mission is two-fold: to help maximise the level of local content in the production of goods and services procured by Saudi Aramco by enabling the establishment and growth of manufacturing and service enterprises in the Kingdom; and to promote business opportunities, attract potential investors, and facilitate localisation by helping investors to overcome the challenges they face when considering coming to Saudi Arabia. “The role of New Business Development is to have a meaningful impact qualitatively and quantitatively and our guiding principle is to identify commercial opportunities that directly contribute to economic and social development,” said Motassim Ma’ashouq, vice president, New Business Development, Saudi Aramco. “In the past we focused on mega projects in refining and downstream integration enabling industrial development and we were successful in our Petro Rabigh refinery-petrochemicals integration joint venture with Japan’s Sumitomo Chemical.” As Saudi Aramco’s mega projects such as the Sadara joint venture with the Dow

For that to happen, he says an ecosystem concept is necessary to create the desirable economies of scale. NBD has collaborated with major companies to highlight opportunities and help to facilitate their entries into Saudi Arabia. In February 2011, Siemens revealed plans to establish a manufacturing and service facility for gas turbines and rotating equipment in the Eastern province of the Kingdom. The manufacturing facility will include the local production of equipment, a repair workshop and service facilities for the Saudi Arabian and Middle East market. The facility will be a centre of excellence for engineering and will create up to 1,000 jobs at the new factory and as many as 3,000 indirect jobs. The factory, which would make gas turbines and rotating equipment, will begin operations 18 months following government approvals and permissions. Two specific initiatives targeted to support the growth of the Kingdom’s manufacturing base are the Local Manufacturing Development Programme (LMDP) and the Saudi Aramco Entrepreneurship Centre (Wa’ed). The first programme targets enhancing local content in manufacturing specialty products, and seeks to bring new local manufacturing capability to the Kingdom.

Wa’ed, a fully-owned subsidiary of Saudi Aramco, will provide leadership in entrepreneurship to support economic growth, diversification and social development in Saudi Arabia. It will be the link facilitating opportunities between entrepreneurs and small to medium-sized opportunities, and provide support for business development, funding and growth. “The ultimate aim of Wa’ed is to ensure the sustainability of small and medium-sized businesses, the expansion of the Kingdom’s pool of entrepreneurs, and the development of an entrepreneurial ecosystem,” Ma’ashouq said. For investors and companies in the United Kingdom, Saudi Aramco’s NBD can be the gateway to Saudi Arabia and potentially the vast Arabian Gulf region. “With our Accelerated Transformation Programme, we are shifting into higher gear and we want to make sure we identify opportunities and deliver on them with the right partners, and ensure our business models are sustainable for long-term growth and success for Saudi Aramco and for the partners with whom we do business.” Ma’ashouq said.

CONTACTS To contact Saudi Aramco’s New Business Development, please email: NBD-L&C@aramco.com

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KIZAD - CORNERSTONE OF ABU DHABI’S VISION 2030

Abu Dhabi’s Economic Vision 2030 maps out the future structure and prosperity of the Emirate. Within the overall plan, the Khalifa Industrial Zone Abu Dhabi (Kizad), located within Khalifa Port, is to be one of the means by which that vision will be achieved. The aim is simple: to invest for the good of all businesses and citizens of Abu Dhabi and to add value to the Emirate’s GDP. Kizad is set to become one of the world’s largest industrial zones due to easy access to markets and lower operational costs and greater ease of doing business. Meeting these aims requires diversification of the emirate’s industrial base and Kizad can be seen as a statement of intent by the Government of Abu Dhabi. As an industrial development of unprecedented scale, ambition and vision stretching over an extraordinary 417 km2, Kizad is positive proof of the Government’s determination to create a wealth of opportunities for all who wish to take part. It offers local and international businesses efficient access to local, regional and international markets in a low operating cost environment designed to make doing business easy. Kizad is expected to transform expectations of what an industrial zone can achieve and deliver. Combining world-class infrastructure, multimodal connectivity, including proximity

to one of the world’s most advanced ports, and a wide range of features aimed at improving business efficiency, such as vertically integrated industry clusters, Kizad will contribute significantly to the future prosperity of Abu Dhabi and the United Arab Emirates as a whole. Locating in Kizad will enable businesses to fully participate in the opportunities created by Abu Dhabi’s Economic Vision 2030.

‘Ahead of Construction Schedule’ According to Khalid Salmeen, executive vice-president of Abu Dhabi Port Company (ADPC), the Khalifa Port and industrial zone is “ahead of its construction schedule.” Quoted by Arab News on 30 January 2012, Salmeen confirmed that, “the port is 90 per cent done, while Phase One of the Khalifa Industrial Zone Abu Dhabi is 78 per cent complete.” Khalifa Port is due to open in the fourth quarter of the year.

Kizad and Abu Dhabi Economic Vision 2030 From the outset, Kizad has been a cornerstone of Abu Dhabi’s Economic Vision 2030. It is the means by which a number of ambitious, long-term targets will be delivered, and marks a substantial drive towards diversification of the economy in pursuit of sustainable growth, with less dependency on the oil and gas industries. Its purpose is, in part, to create the range of opportunities necessary to recruit, retain and develop local and skilled expatriate talent to build a sustainable knowledge economy whilst reducing reliance on unskilled labour. One of Kizad’s foremost objectives is to increase the number of highly skilled jobs available in Abu Dhabi, across a range of sectors and over the long term. It is intended that these will be high quality jobs, drawing in expertise from around the world to create opportunities for Emiratis and expats living in the country in a drive to develop the skills

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and expertise required to flourish on a world stage. The economic benefits are obvious: by 2030, Kizad is expected to contribute around 15% of Abu Dhabi’s non‐oil GDP. It will be a powerful magnet for foreign direct investment, with global business locating large‐scale primary and downstream manufacturing facilities in the industrial zone.

also directly connected to the wider Middle East through the UAE’s excellent highway network. Abu Dhabi International Airport, Al Maktoum International Airport and Dubai International Airport are all less than 40 minutes away, while the emerging freight and passenger rail networks will link tenants at Kizad to the far corners of the Arabian Peninsula and beyond.

Kizad’s strategy is to attract world‐class companies and to establish international industry best practices throughout the zone. Kizad will set new standards for industrial zone infrastructure, environment and operation, reinforcing Abu Dhabi’s global competitive advantage.

Low Operating Cost Environment

Strategic Advantages Kizad offers the following strategic advantages to businesses setting up in the zone:

Easy Access to Markets Abu Dhabi is the ideal location for businesses to tap into huge regional and global markets. Its strategic location means businesses in the industrial zone can tap into a market of more than 4.5 billion consumers within four time zones of Abu Dhabi. Kizad tenants will benefit from excellent access by sea through its ultra-modern deepwater seaport, Khalifa Port. Kizad is

Abu Dhabi offers utilities at some of the lowest rates in the world and land lease costs are also benchmarked against regional competitors. Vertically integrated clustering brings primary, midstream and downstream producers together creating economies of proximity and increased productivity. Kizad includes clusters for aluminum, steel, engineered metal products, petrochemicals, pharmaceuticals, paper, print & packaging, food and trade & logistics.

they can choose 100% foreign ownership and avoid duties on imported goods kept in bonded status in the industrial zone and re‐exported from the UAE.

Ease of Doing Business Kizad offers a number of features that help tenants do business. Kizad’s long-term bankable agreement can be used to help raise finance for projects for example. Kizad has launched a One Stop Shop service aimed at helping businesses speed up the process of obtaining the necessary permits, licences, approvals and clearances from the government bodies and licensing authorities. Kizad also offers workforce accommodation, warehousing, and a business park which will provide offices, commercial showrooms, a business hotel, training and research facilities, and associated retail. Taken together these cost benefits ensure that businesses at Kizad are well positioned to be competitive in their industries and to drive growth in Abu Dhabi for the long term.

Currently in Abu Dhabi individuals and most companies are not subject to tax on their income. Furthermore at Kizad, foreign companies can choose a joint venture with a local company allowing them to claim exemption from import duties on raw materials and exemption from customs duties when goods manufactured in Kizad are exported to GCC countries. Alternatively

CONTACTS For further information please visit the Kizad website: www.kizad.com KIZAD PO Box 54477, Abu Dhabi, UAE Tel: +971 800 10 20 30 Fax: +971 2 695 2174 Email: kizad@adpc.ae

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BRAND BRITANNIA: WILL 2012 BRING ANOTHER WAVE OF COOL BRITANNIA? By Adrian Warr There is a shop opening in Piccadilly Circus that will sell nothing but iconic British products. Enticed by a Union Jack- liveried Mini hanging from the ceiling, passing tourists will no doubt come in droves to the Cool Britannia shop. It was the Bonzo Dog Doo-dah Band that coined the term Cool Britannia back in 1967 and it was revived in 1997 under New Labour. Now Cool Britannia is back. With the Olympics and Diamond Jubilee putting Great Britain in the global spotlight in 2012, VisitBritain recently launched a £100m marketing drive to build the Cool Britannia brand again. But can Cool Britannia become a meaningful brand and is that the best way to capitalise on 2012? The Games and Jubilee will be an advert for the UK. One billion people watched the Beijing Games. The Royal Wedding attracted the largest ever concurrent live streaming audience. The eyes and ears of the world will clearly be trained on us, but whether we can really bring the Cool Britannia brand to life depends on everything they see and hear. To test its viability it is interesting to look at how some of the principles of commercial branding can be applied.

Brand truth It is said that advertising is like standing up at a wedding and tapping your champagne flute with your teaspoon, while PR is about what you say when everyone turns around. Brand, then, is all of the above plus what you’re wearing – the combination of image and reputation. At the heart of any brand is a truth or promise, an incontrovertible aspect of the company or product that defines how people feel about it. In 1967, Britain really was cool. Music, fashion and film made London an international cultural powerhouse and the economy boomed.

When New Labour was born, the economy was stable, the creative industries were thriving once more, British bands dominated overseas charts again and a sense of national pride made Cool Britannia broadly credible for a time. It is hard to find evidence now that points to a rebirth of the brand. We are in the economic doldrums, spending on the arts has been cut, the X-Factor is our biggest cultural export and after a summer of riots David Cameron has made ‘Broken Britain’ our moniker of choice. Other than the apparent omnipresence of Twiggy, we couldn’t be further from 1967. Granted, there is plenty to be proud of in this country and many reasons to feel cool. But a brand that harks back to 1967, or even 1997, is surely wide of the mark right now. Cool Britannia has failed to demonstrate a brand truth.

Internal engagement In the commercial world, brands thrive when they have the buy-in of all internal stakeholders. It’s vital that employees live the brand. In the national macrocosm, this becomes a challenge of staggering proportions requiring the engagement of the whole population. Uniting a workforce can be hard enough, uniting a nation is nigh impossible. The Cool Britannia of 1997 failed here. Many felt it was narrow, London-based and not relevant to their lives. And its political roots were divisive. The failure to achieve broad national buy-in made the brand short-lived. The 2012 Cool Britannia has the potential to achieve much greater buy-in. The reaction to the Royal Wedding last year demonstrated the likely levels of support for the Queen’s Diamond Jubilee celebrations.

An ICM poll found that 63% of us think that the UK would be worse off if the monarchy didn’t exist. Moreover, it showed that nearly seven out of 10 people think the monarchy is “relevant” to life in Britain today, while 60% agree that it makes the country more respected around the world. There will undoubtedly be many who see it as irrelevant and elitist, but regardless of your stance on monarchy, it is a fact that there will be significant national support for the Diamond Jubilee. The Games are accessible like no other event. Their values, diversity and reach give them a unique popularity. With 70,000 volunteers, 8,000 torch relay runners and 6.6 million tickets in the UK, no other event can equal its level of national participation. However, the logistical reality means that many will feel excluded – for the 100m final the UK had 30,000 out of a possible 80,000 tickets. 1.3 million people applied. The public’s reaction to an additional £40m investment in the opening and closing ceremonies, as close as we’ll get to a full-on advert for Britain, shows just how divisive the Olympics could be. Together 2012’s two main events provide the opportunity for the population to unite in celebration of both modernity and history, domesticity and internationality. The potential for national engagement is enormous, but it won’t be ubiquitous. It is also important

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to note that the Games and the Jubilee risk being seen by a large proportion of the population as excessively London-focused. Even if they do achieve national stature and engagement, it’s easy to see it won’t be under a Cool Britannia banner when you consider the principle of brand consistency.

Consistent identity By far the biggest challenge facing any nation that tries to create a brand is that of consistent identity. All the best commercial brands portray a rigidly consistent image and identity, but doing so on a national scale is challenging. Capturing a single notion of what defines ‘Britishness’ or ‘cool’ is incomprehensibly complex. In a nation as diverse as ours, those notions vary in a way that can only result in a fragmented identity. VisitBritain’s campaign, featuring a panoply of Great British legends ranging from Dev Patel, to Jamie Oliver and Judi Dench, has tried to capture the variety and diversity of our culture as its unifying theme and has done so with considerable appeal. But highlighting Britain’s diffusion as a unifying theme is contradictory and can’t help establish a lasting brand. It is good advertising but not a brand-building campaign. Diversity, more than anything else, is what makes any national brand likely to fail.

Two things are clear. Firstly, the Cool Britannia brand is extremely unlikely to stick. Secondly, the concept of nation branding is flawed. But this doesn’t diminish 2012’s potential to dramatically improve international perceptions of our country. It may already be doing so. The Anholt GfK Roper Nation Brands Index puts the UK in third place this year after the US and Germany. We edged up the ranks from fourth place last year, overtaking France, a kick in the teeth for anyone who worked on the Paris 2012 bid. But focusing purely on image won’t successfully exploit the massive opportunities we have at our disposal this year. Advertising campaigns alone can only draw attention; they have to be accompanied by integrated communications to improve overall reputation – that’s how brands are built. Adrian Warr is an Associate Partner with Portland Communications. The company is a member of the Arab-British Chamber of Commerce. Portland has extensive experience of working in the Middle East, managing major communications projects in the Gulf and elsewhere in the MENA region. The firm’s London-based team, which includes Middle East nationals with fluent Arabic, has an in depth understanding of the region’s politics, economics and media landscape.

CONTACTS For more information visit www.portland-communications.com

ECONOMIC FOCUS

The Prestige hospitality pavilion is located just 70 metres from the Olympic stadium.

LONDON 2012 OLYMPIC GAMES THE PRESTIGE HOSPITALITY PROGRAMME

Equestrian events at the Olympic Games are always popular and the Greenwich Park location is magnificent.

CONTACTS Contact Prestige Ticketing below for more information about the Prestige hospitality programme for the London 2012 Olympic and Paralympic Games. Email: sales@prestigeticketing. london2012.com www.prestigeticketing.london2012.com Tel: +44 844 728 2012

Psychologists call it ‘the flash bulb moment’ when momentous events are witnessed and remain imprinted upon the mind. This will undoubtedly occur at the London 2012 Olympic Games when world records may be broken and the world once again ponders the question ‘just how fast can a human being run’ and you were there to witness it. You will never forget who was with you or gave you the opportunity to be there and see it for yourself. London 2012 will be the first time that there has been an in-venue hospitality programme that is open to all at an Olympic and Paralympic Games. It comes as no surprise that this first opportunity will occur in London which is a truly global sporting city. A recent survey by IFM Sports Marketing Surveys showed that 70% of business leaders rank London as the world’s best major events destination for providing return on investment, a further 70% of respondents felt that London’s venues are the highest quality and 58% identified the English capital as being an important means of reaching new markets. The Prestige Hospitality programme at London 2012 will be world-class. In other words it will set new standards of excellence in terms of design, innovation, quality, and customer satisfaction. Hospitality guests will experience the powerful combination of exceptional food, service and entertainment and the best category tickets available. Fast track access, exclusivity and attention to detail

are all part of the Prestige experience. The hospitality venues will be stunning and inspirational. The Prestige Pavilion at the Olympic Park for example will be located just 70 metres from the Olympic Stadium. Other Prestige Pavilions will be located on the finishing line at Eton Dorney for the rowing and adjacent to the arena in Greenwich Park for the equestrian events. Corporate hospitality is a proven business tool for cementing relationships. The memory of shared experiences can last a long time and hospitality has become a vital part of any corporate marketing mix and a key element in customer relationship management programmes. Professor Simon Chadwick of The Centre for the International Business of Sport based at Coventry University in the UK stated in recent research on the commercial value of corporate hospitality at London 2012 that:

“Corporate hospitality helps companies engage key stakeholders enabling them to build sustainable relationships that yield a commercial lifetime value.” For any company, organisation or individual doing business in the UK or mainland Europe, London 2012 presents a once-in-a-lifetime opportunity to entertain at the greatest show on earth. Whether the interest lies in the Ceremonies, athletics, swimming, show jumping, dressage, gymnastics, basketball or tennis; Prestige Ticketing hospitality advisors can create a bespoke programme to suit your individual requirements and budget. At the time of writing in January 2012 the Prestige inventory is 60% sold with the number of daily enquiries increasing since the closure of the LOCOG ticket ballots and the Games getting ever closer, so don’t leave a decision to purchase for too long as you may regret it!

ARAB-BRITISH CHAMBER OF COMMERCE

THE GLOBAL INVESTOR WINDOW 2012 16 MAY 2012 INTERCONTINENTAL PARK LANE, LONDON

UCI International invites you to the Global Investor Window 2012, a one-day event aimed at bringing together international investment experts and potential business partners, through a programme of keynote speeches, showcase presentations, one to one meetings and expert workshops. Supported by the UKTI, the Arab-British Chamber of Commerce, the Qatari Businessmen Association and the Middle East Association, and following on from the recent success of the Qatar Investor Window in November 2011, UCI is launching its 16th annual Investors meeting in London on May 16th 2012, at the glamorous InterContinental Hotel on Park Lane, London. The Global Investor Window is an annual event, organised by UCI International, a business facilitator for the international investment community formed in 1996. UCI brings together parties seeking investment or partnerships with global investors from the Gulf States and elsewhere through highprofile events as well as private meetings outside of events. As a delegate at the Global Investor Window, UCI will work closely with you to prepare you to meet some of the worldâ&#x20AC;&#x2122;s leading investors, and set you up to meet with them face to face. Also on offer will be expert-lead workshops and plenty of networking time to enable maximum

opportunities for you to meet and share practical advice and experiences with the experts. This is therefore a must attend event for you if you are seeking investment and / or a partnership in a high quality project or you simply want to hear more about the world investment climate and current investment and partnership opportunities. We do hope that you will consider joining us for this important event, and would very much like to work with you to ensure you benefit fully from what we have to offer. Investors scheduled to attend:

l The First Investor, Qatar l UDC, Qatar l Middle East Financial Investment

Company, KSA

l Abu Dhabi Investment Company, UAE l Al Mudon International Real Estate

Company, Kuwait

l Bowline Capital, UK l Blackfish Capital, UK

The conference and exhibition is open to all members of the international investment community. Registration is required for nonmedia personnel.

l Kuwait Finance House l Kuwait investment Authority l Abu Dhabi Investment Authority l Qatar Islamic bank l Qatari Diar Real Estate Investment

Company

l Barwa Real estate l Al Khabeer Capital l Islamic development Bank KSA l Al Baraka Banking group KSA l European Bank for Reconstruction and

Development (EBRD)

l Al Rajhi Investment group KSA l Brunei Investment Agency, Brunei

CONTACTS For more information on registration and sponsorship opportunities please contact UCI international in London: Tel: + 44 (0) 208 998 8890 Fax: + 44 (0) 208 998 8891 Email: ben@uciinternational.com www.uciinternational.com

ECONOMIC FOCUS

THE ONLY WAY TO BUY

There are few places that shout “prestige” more than prime central London. The city’s heritage architecture coupled with its internationally famed shops, landmarks and attractions make London an exceptionally exclusive location. But membership of London’s true elite requires residential property ownership – the ability to drive through Mayfair or Knightsbridge, point up to an imposing 18th century mansion block and say, “I own those windows”. But membership of such a lofty circle comes at a very high price – average property values in London’s most desirable areas, The Royal Borough of Kensington & Chelsea and the City of Westminster, run well in excess of £1 million. However, don’t be fooled into thinking that this will get you anything substantial. With prices purportedly reaching £7,000 per square foot in Candy & Candy’s One Hyde Park, you might get little more than a shoe box. The likelihood is that you will not be living in your property, so, given that you are going to be making a considerable investment to join this exclusive club – you need to make some money too. The good news is that if you know what you are doing, central London is probably one of the best asset classes on offer. On average, property prices appreciate at over 8% a year and double in value every eight years. This would equate to your property making over £400 a day if long term

trends continue going forward. To put that into perspective, without even having to get out of bed, you can earn over five times the median salary for 2011 in the UK! Clearly, there are myriad pitfalls for the uninitiated, but here are a few tricks of the trade to help you maximise what prime London property can do for you.

Location, Location, Location This is an old adage, but one that still holds true. “Product quality” is of paramount importance, but never more so than when global economies are in a state of flux. Look for good views, good buildings and good streets. Get a foothold in the best area you can afford – cheap does not mean good value. This means that you have to know your market.

Know Your Market To extract the most from any purchase you have to know the market. Understand what each of the ‘villages’ that make up prime central London offer, from the hubbub of Portobello Road in Notting Hill to the leafy squares of South Kensington; research different architectural styles; find the next hot-spot that has upside potential. Most importantly, be aware that “small is beautiful”

Small is Beautiful The trophy status of owning an enormous penthouse overlooking Hyde Park is undeniable, but if you really want to make money from your purchase, go small. One and two bedroom flats are where you want to be. Most tenants are brought in by the major corporates and are given budgets by their HR departments for their accommodation.

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Investors are invited to acquire a share in the company, which will invest in around 50 flats which match the checklist above. They will all be interior designed and let to corporate tenants. Investor members will have the benefit of delegating all the day to day property management hassle, whilst enjoying the virtues of a diversified investment portfolio. Full details of all the properties, refurbishments, interior design schemes and corporate tenancies will be posted on a dedicated website, making the membership tangible and ownership as real as holding the keys yourself.

If your property is too big and hence too expensive, you will suffer extended voids and considerably lower yields. Think of a boutique hotel suite – both in terms of style and size and you probably have the right idea. On the subject of looks, stand out from the crowd. Go for outside space, garden squares, duplex apartments. This will not only appeal to the rental market, it will also have greater re-sale potential. Avoid ‘bread and butter’ investments – for long term returns you want something extra special.

Target the Scarce Resource With limited land development potential and a conservation order on most of London’s top addresses, properties in these areas will always be in high demand. Throw into the mix an ever-expanding population of wealthy investors around the world and prices are set to go on rising. This means that...

Ageism Stops Here Remember that the many new developments in Canary Wharf, Docklands and along the Thames not only command a premium price but that newness has built in obsolescence. There is the scope to build more and more. The result: a chronic over supply and softening prices. Many new developments are bought into by overseas investors, which can lead to a fiercely competitive rental market and a restricted resale market. So go for the old. Flats and houses in London’s classical terraces and quaint mews are difficult to find but can offer much greater long-term potential. The good news is that this enables you to add immediate value. Given the limited new-build potential in central London, much available property is ‘tired’. This is good news for investors. You can benefit from the uplift in value through refurbishment, rather than paying a premium for it. You can also present the property to meet the exacting style demands of professional tenants. Good interior design pays dividends and, whilst on the subject of money, make sure you do your sums.

Do Your Sums For those ‘in the know’, weekly rents can be estimated to within just a few pounds and yields can be quantified to within point one of a percent – the market is that precise. If you know what rent you will get and what yield the market should deliver, you can easily calculate exactly what a property is worth. But a word of caution – get your sums wrong and will pay the price! Overestimating your rent by just £25 per week would mean over-paying for your property by over £27,000. If all of this seems to be too much of a headache, too complex and too time consuming, there are other ways you can join the exclusive prime central London property club. A syndicate has recently been set up for people who are cash rich, time poor and happy to delegate to the real experts.

London Central London Central Apartments Ltd is a property investment company specifically tailored at those trying to marry exclusivity with investment. It combines the lifestyle statement of direct real estate ownership in places like Mayfair, Knightsbridge, Kensington and Chelsea, with the hardheaded financials required to make a successful investment as well.

Naomi Heaton, CEO of London Central Portfolio, the company which has launched London Central Apartments (LCA) on the back of their 22 years’ experience in the market says,” Residential property in the heart of prime central London has genuine trophy status, but the shrewd investor can make a great return at the same time. London Central Apartments provides HNW delegators with the perfect opportunity to access this market. As the first Shariah compliant residential property company in the UK, it is also truly globally available.” The new investment company aims to generate returns in excess of 10% per annum over 5 years and it is a perfect place to store and preserve wealth during a period of considerable volatility across global equities and other traditional asset classes. However, perhaps just as importantly, London Central Apartments confers club membership; the ability to pride yourself on making it into the elite group of globally high net worth individuals who can claim ownership of some of the world’s premier real estate.

ECONOMIC FOCUS

QATAR - HEALTH & WEALTH CREATION The Origination of the Idea In April 2010, Keith Hackett, a key member of the team, found himself in the Gloucestershire Royal Hospital with a temperature of 106; a severely swollen left leg and a consultant telling him that “...if your temperature doesn’t come down in the next 36 hours, we’re going to have to remove the leg below the knee...”; a sobering piece of information to receive at the best of times! 36 hours later Keith’s temperature was a modest 103 and a week later he was released from hospital, but didn’t return to work for another two months. Over the next six months Keith went through a battery of tests and for quite a while it was suspected that the underlying cause of his illness was Diabetes Mellitus (DM). Thankfully, by December 2010 the final conclusion was that his blood and all his organs were in great shape and that he didn’t have DM in any form. In the intervening period he had undertaken his own research into DM which both frightened and angered him. A global disease growing at a phenomenal rate, the prevalence of which, in his opinion, could be reduced with the right information going to the right people, at the right time. He envisaged a solution driven both by personal choice and national intelligence, enabling one-on-one clinical management and providing real-time data to initially

inform, and eventually drive national health policy. The ultimate outcome being a virtuous circle of data and intelligence providing the right service at the right level: national, regional, local and individual. Keith recognised that a unique combination of cultural and motivational elements would have to exist to realise that vision. It would have to be introduced at a national level and in an environment which suffered from the problem yet possessed the means, the motivation and the drive to make change happen. This country would ideally have a population size and distribution that could experience change quickly; possess a single major provider of health services; be technologically astute and led by a Government which welcomed new, value-based ideas. A tall order! Yet from Keith’s own personal experience, one country seemed to fit the criteria: the Gulf State of Qatar.

A Model of Health Improvement and Economic Growth (“Convenience Health”) Almost 12 months after Keith shared his ideas with trusted friends and colleagues, and following a serious number of conversations, discussions and planning, a business model is starting to take shape.

The essence of the model can be viewed as a tripartite integrated system, summarised as:

1. Social Value a. Community based educational programmes (National Certification) producing local Community Advocates whose responsibility it will be to educate their immediate and known local community (residential neighbourhood, community school, extended family) with respect to healthier lifestyle choices/ opportunities: diet, activity, etc. b. A ground-up approach engaging and involving local people: Community Advocates most likely to be women whose influence is greater within the health-at-home environment than men and whose influence upon the lifestyle choices of younger generations (i.e. from birth – 12 years) is more direct, resulting in a generational change of perceptions and choices.

2. Economic Value (two inter- dependent/influencing systems) a. Commercial, retail and health data driven / developed internal food-supply chains which create new economically positive service systems. Built upon and expanding existing food retail commerce and logistics; directly influenced by, initially, an identified (nation-wide)

ARAB-BRITISH CHAMBER OF COMMERCE

healthy lifestyle option (Convenience Health) which changes / develops as the data which is produced (health, commercial retail, activity) influences the initial identified healthy lifestyle option; this is a dynamic process. b. External / Global food-supply chains can be influenced by that which drives the internal market. In-so-doing, influencing (perhaps changing) Qatar Government strategy with respect to overseas landlease / food production arrangements as well as providing evidence in terms of crop choice for the planned for agricultural hubs. i. Significant economic value can be achieved both in terms of new internal commercial enterprise and external riskreduction with regard to relations with other food producing nations. ii. The success of the model can be franchised on a global basis.

3. Health Value = Social Value + Economic Value a. Aim is to focus the Convenience Health model upon; initially; a single chronic disease which has been shown to be directly influenced by lifestyle choice – Diabetes. b. Using smart-data mining and management technologies to aggregate and analyse data from existing multiple sources (primary and acute health; commercial retail; financial services) to build a current health economic picture of the Qatari population. c. Linking health history; single-disease genetic profiling and commercial (retail) buying behaviour could (unproven) provide both general future population health risks whilst enabling the reduction of such risks, through commercially generated, lifestyle choices.

Model Outcome Aims 1. Enabling the achievement of the “healthy population” goals set out in Qatar National Vision 2030; National Health Strategy 2011-16 and Qatar Development Strategy 2011-16: a. Nationwide behavioural change with respect to increased healthy food consumption. b. Measurable awareness improvement with respect to impact of food choices upon long-term health and well-being (for the individual; community and country population). c. Measurable improvement of the health of the population, specifically with regard to reduction in reported occurrence of Type 2 diabetes, within a three year timescale.

2. Creation and on-going development of new economic sectors (accurate data informed): a. Health and well-being (wholesale and commercial retail) food production. b. Health and well-being education and physical activity. c. Agriculture: i. Internal – Design and development of (planned for) Agricultural Cities. ii. External – Accurate information led and internal market driven, overseas agricultural production / land-lease etc.

3. Improved national security as a consequence of reduced reliance upon importation of food resources (production; wholesale; retail) a. Demand driven rather than supply led.

4. Business Model as Income Generation: a. Extended to include neighbouring GCC partners. b. “Duplicated” and “franchised” (full Business Model; elements of Business Model).

Model Realisation through Commercial Application While the most obvious aspect of the proposition would centre on a improving diet through introducing a new ‘better’ brand of ‘fast and convenience food both in the home and out’ the key underlying this is even more centred on understanding the retail customer and market data in addition to health data. A key element of the ‘Convenience Health’ proposition is “Rewarding Healthy Choices”; to reinforce and build good health behaviours by rewarding the better health options through schemes such as a ‘health loyalty scheme’ and recognition programmes – already proven in other commercial sectors. This is a loyalty card type scheme, understanding behaviours and choices made, building up data and using behavioural data from other sources to design products and services that encourage the right decisions to be made, but to encourage them through a desire to participate (through the right brand and positioning etc.) rather than adopting a top-down, central Government driven strategy of “because its good for you” which is a message that globally we have seen, just doesn’t work. The supply chain diagrams help bring this into focus showing how the system works with data flows etc. What perhaps the diagrams don’t show is the importance of how the data driven elements (Economic

Value) and educational / knowledge awareness elements (Social Value) combine in order to enable the Health Value to be achieved. In today’s world individual health is often not given priority. Competing pressures through the day lead to poor health choices. To tackle this quickly and make a demonstrable change in Qatar, individual healthy choices on diet and exercise must be made to be the easy and desirable option. The “Convenience Health” initiative will: Make Health Easy – it will put health options in the day-to-day life of everyone, making it simple to choose a healthy alternative for a meal, snack or exercise; Make Health Desirable –it will make the healthy food and lifestyle options attractive through how they are packaged, presented and branded, to compete equally in the marketplace; and Reward Healthy Choices – reinforce and build good health behaviours by rewarding the better health options through schemes such as a ‘health loyalty scheme’ and recognition programmes. The “Convenience Health” proposition is a range of related initiatives, all designed to support good and easy health choices. These include: Health On the Go – A key aspect of the Convenience Health initiative is to put health ‘fast food’ options where they can easily be accessed and they can compete against existing less healthy fast food outlets. Options for this include: Establishing a healthy fast food chain potentially based on a fast food franchise model. Such franchises are already emerging and could be adapted or encouraged; Working with existing fast-food outlets to become part of the Convenience Health scheme through provision of new options and participation in the ‘Health Loyalty’ schemes; Encouraging more traditional restaurants to participate in the Convenience Health initiative by ensuring every menu has Qatar Health approved options, potentially linked to reward schemes; and Simple and consistent health information for all food options to inform consumers and support good decision making. Health at Home – Ensuring that a healthy diet is maintained at home is essential. With today’s modern life ensuring a good balanced diet at home is increasingly difficult. The Convenience Health initiative could introduce services and support to help the family make good health choices at home through:

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Healthy Food Planner – a service that helps families plan a choose a balanced and healthy diet for everyone, with ideas and approaches to make eating healthily desirable; Healthy Food to the Door – Through linking the planner to grocery retail and delivery services, healthy weekly food shopping becomes easy, with a meal plan and groceries, along with recipes and ideas delivered to the home; On-line services to plan, order and track home diets. Such a service could be through a new Convenience Health offering or by working with existing retailers. Again, by linking products to the loyalty scheme and providing transparent health information individuals and families can easily make the healthy choice. Health Loyalty – A scheme or combination of schemes that allow individuals to become part of their own health programme, offering access to range of rewards, such as access to sporting events etc. and communities to encourage further participation in health related activities, such as sport or exercise. The Health Loyalty scheme: Makes Health Desirable – It encourages individuals to continue with healthy choices and rewards them for doing more; and Acts as source of health data – providing invaluable insight into individual behaviours and trends, and uptake of services so that the Convenience Health intuitive can adapt and change. Health Community – Making health choices often requires help and support of your family or community. The Convenience Health initiative will look to build communities of health both through innovative digital and online means, such as the loyalty scheme, and also through linking and supporting local groups and clubs into the broader initiative. Through crosspromotion and access to loyalty schemes, individuals and families can be encouraged to participate more with community health schemes and exercise, such as sports clubs. Digital health communities will also allow and encourage the creation of tailored ‘activity

plans’ for an individual or family. The aim of such plans is to increase the exercise taken by an individual in a way most suitable to them that can be linked to goals and rewards. Promote Health – The health choice must also be a desirable choice. The Convenience Health initiative will require significant and persistent promotion though all forms of media. For example the use of local and regional sports personalities, renowned chefs and media (such as support through Al Jazeera). The aim will be to build a consistent desirable consumer brand linked to health ad driven through loyalty. Promotion can also be in the form of national and local community level health competitions, such as ‘the biggest loser’. Such competitions provide good promotion and also encouragement to those participating. Building a consumer brand takes time, imagination and agility. The Convenience Health initiative will be required to adapt and change as the market needs, yet it must demonstrate early results. It must: Start Quickly – Start Now. The initial stages must be able to be commenced quickly and start to demonstrate the potential results. Social media and the underlying mechanics of the health loyalty scheme offer good opportunities to start an early ‘buzz’ for Convenience Health, which must be quickly followed by tangible examples for the individual to get involved;

Start Simple – Be Agile. The success of the Convenience Health initiative will be dictated by its adoption. Where aspects don’t work or the reaction or progression is different from plan and agile approach is required to change the approach; Grow Rapidly – Once started the initiative must be seen to continue to grow and expand, encouraging the early adopters of the schemes to continue and to attract more participants through greater reach and range. Start with the individual – and build to the system. While the longer term goal is a healthier Qatar nation supported by a modern, intelligence driven health service that is a leader not only regionally but globally, the first step is to change the thinking and behaviour to make encourage healthy choices. The Convenience Health initiative, which includes Intellego Ltd and a group of other countries, ensures that the programme starts with the individual, making real change happen quickly, but it also lays the foundations for a broader revolution in healthcare through an intelligence centred and driven, vision. Intellego Ltd, incorporated and registered in England, is a member of the Arab-British Chamber of Commerce. A management services company, it provides C-Level Executives and Subject Matter Experts to UK Central Government agencies, healthcare trusts and private business.

ECONOMIC FOCUS

LONDON CENTRAL - A NEW ASSET CLASS FOR ISLAMIC INVESTORS

London Central residential can offer a powerful new asset class to Islamic investors. So what do we mean exactly by London Central? A crucial plank of LCP’s business strategy. We are not talking about the area bounded by the M25, which is Greater London. This is home to 10% of the UK population and is a domestic market affected by all the current issues on the economic landscape – job losses, austerity measures, static house prices. We are not talking about the East End, home to the Olympic village and an area targeted for urban regeneration. Again, this will benefit from a domestic agenda but it cannot offer the exclusive locations that the international investor is seeking. It is not Canary Wharf, home of the multi-nationals and subject to swathes of new developments. The almost limitless land development potential means an over supply of units and an under supply of rental tenants, leading to a long term softening of prices. It is not even the City, home of the Bank of England, a place abuzz during the working week but deadly quiet at weekends. What we are talking about is a tiny six square mile area around Hyde Park. It is the West End, home to the most famous department store in the world. We call it the bull’s eye of the capital and it includes the most prestigious and best known postcodes – traditional areas such as Knightsbridge and Mayfair, and the more cutting edge areas of Marylebone and Notting Hill. It is made up of numerous villages, each with their own character and style.

Firstly, we buy properties that appeal to the mainstream corporate rental sector; that is tenants working for blue chip companies, generally singles or professional couples, located to London for up to three years. We target all the trophy addresses, the historic buildings that London Central is so famous for, but we seek out small units, under a 1,000 square feet and target one and two bedroom flats. This is because 65% of the tenants in London Central are looking to rent for under £1,000 per week. Bigger flats, or more bedrooms, will not be affordable and as a result such flats will either remain empty or achieve lower yields. In this market, small is beautiful. l Sub £1,000 per week l £1,000 -£3,0000 per week l Sub £1,000 per week

LCP also seeks to buy opportunistically, looking for the best deals and the most competitive prices per square foot. We can identify first rate property for under £1,500 per square foot. This is a far cry, in price terms, from One Hyde Park, which purportedly markets at £7,000 per square foot. We also look for potential to add value through reorganisation and renovation. Not only does the investor benefit from an immediate uplift in value but the property will let quickly and achieve top rents, maximising occupancy and providing consistent capital appreciation. As a result of the business model that LCP has employed, we have seen price growth in our actively managed portfolios outperform average market growth by over 50% on actual realised returns.

This is an area where the average price of a property is over £1 million, compared with the rest of the UK which sits at below £¼ million. It is the playground of the rich and famous.

London Central Portfolio is also the only asset manager to have successfully launched two closed end funds, exclusively targeting prime London Central. Our third fund, London Central Apartments Ltd (LCA), recently opened for investment, will now give Islamic investors an opportunity to access this exclusive market.

So what is the unique business strategy that LCP has developed over the last 20 years to maximise rental returns and capital growth?

London Central Apartments Ltd is the first Sharia compliant residential fund to be launched in the UK. It is the first to invest in a

The Bull’s Eye of London Central

portfolio of absolute prime London corporate let residential property in the most exclusive areas. The base case scenario is a return on equity of 10% IRR over five years, with an upside of 13%. Not only will the properties be among the icons of the capital, they will be investment in the sought after heritage architecture that everyone identifies with London Central – the Victorian red brick mansions, the Georgian white stucco fronted houses and the quaint mews houses in their cobbled streets, originally built to accommodate the domestic staff and the horses, serving the ‘big house’. London Central Apartments will provide investors access to a portfolio of around 50 individually selected properties. It will generate returns through a combination of buying opportunistically, generating uplift through renovation, delivering capital appreciation and rental income. It will provide a professional way for the sophisticated investor to add high performing London Central residential to an investment portfolio. Now, some investors will wish to buy their own property, either to use it for themselves and their family or simply because they want to have exclusive possession. However, for many, the benefits of collective investment significantly outweigh the emotional desire to own a property yourself. Acquiring shares in a property investment company that invests in a large portfolio of property gives you diversification: a spread of properties in all the best addresses, in all the micro markets of London Central; a spread of tenants, meaning that cash flow and void periods can be properly managed. Being part of a collective investment vehicle means that you can benefit from the ‘buying power’ it brings and from the commercial rational decision making of the asset manager. Leverage, which magnifies the capital returns that London Central residential offers, is pre-arranged, removing the headaches that so many investors now encounter. LCA has been structured to be

tax efficient, minimising any exposure to capital gains, income tax or inheritance tax. It is eligible for UK residents as well as UK non-residents and non-doms. Participation in the fund requires only the decision to invest. The investor can then sit back and enjoy the benefits of professional representation – the skills, expertise and track record of LCP. It is possible that you are asking why London Central residential is an asset class you should consider. However, I suspect that all the media coverage firmly placing London Central residential as a safe haven asset class has not passed you by. It is an asset class where you are unlikely to lose the shirt off your back, and have the prospect of considerable capital upside. Why? It is globally desirable, housing some of the best real estate in the world. It is an international centre, geographically, culturally, financially and increasingly for many foreign investors, educationally. There is an extraordinary shortage of stock. Unbelievably in one of the world’s major capital cities, there are only around 100 transactions a week. Why is this? There is almost no land development potential and the irreplaceable heritage architecture continues to increase in price due to its rarity value. The market also has a very low dependence on the UK economy as it attracts international investors and tenants. Indeed, a weak UK economy can make London Central even more attractive by offering low interest rates and attractive currency benefits. London Central demonstrates consistent capital growth. Values since 1970 have increased over 50 times. That means prices have doubled on average every eight years. This is in stark contrast to UK commercial property, which has shown capital growth of just five times, offering, as is widely known, an income play rather than a capital play.

UK Commercial Capital Growth London Residential Capital Growth London Central has proven itself to be a safe haven. It is much more closely allied to the other safe haven perennial, gold, than the more volatile equity markets. As the market outlook improves globally, London Central will continue to benefit, whilst gold is likely to fall away. Since 1995 the FTSE 100 has grown by just 71%. London Central has grown by 377%. In the short term, London Central has also shown a significantly better performance than the FTSE 100. During the credit crunch, prices fell in London Central by 7% from mid-July in 2007. The stock market fell by 40%. London Central is now way above its pre-credit crunch peak, whilst the FTSE 100 is still 19% down.

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Income In addition to all of this, residential property offers major tax benefits for offshore investors. Unlike UK commercial property where capital gain represents less than 10% of its total return, for residential property the figure is more like 80%. The income from commercial property will be liable to UK income tax, which can be up to 50% but the offshore investor is exempt from tax on capital gain from residential property. Investing in residential can provide a significant advantage to the net return that the investor actually sees in his hand. Whilst commercial property is projected to flatline, residential property is projected to benefit from capital gain, and leverage can magnify that gain for the investor. A 50% gearing could increase an investor’s return on equity by up to 50%. So there are compelling reasons for the investor to look at coming into London Central residential – particularly right now. It is a way of adding a new asset class to traditional investments. It is asset backed, transparent and tangible in a volatile investment environment. It is a hedge against inflation and it is a safe haven investment. And it is not only LCP who are projecting strong growth over the next five years. Market commentators, Jones Lang LaSalle and Savills, predict respectively growth of 48% and 36% by 2015. LCP’s base case is 39%, based on growth over the last 15 years, including the credit crunch and 54% based on the effect of the downturn being completely wiped off the map. As I mentioned earlier, LCP is the only company to have successfully launched two closed end collective investment companies targeting prime London Central. Our first fund, London Central Portfolio Property Fund was fully invested by April 2008. To date, it has outperformed the market by over 14% and is 26% over the original purchase prices. It is running at a 97% occupancy rate. Our second fund, London Central Residential Recovery Fund was launched in April 2010. To date it has outperformed the market by over 11% and is 20% above the original purchase prices.

LCP’s property fund track record So, to round off this presentation, why London Central Apartments Limited and what are its key features? It is the first Sharia compliant residential collective investment platform in London Central providing important diversification and capital growth generation. It is regulated by the Jersey Financial Services Commission and is listed on the Channel Islands Stock Exchange. It will acquire about 50 properties, which it will renovate and interior design specifically to appeal to the discerning corporate rental market.

Given the limited stock available in London Central it will be a boutique fund of around £50m, wholly Sharia compliant with a Sharia board supplied by Yasaar Limited. I am sure many of you are familiar with Majid Dawood, who organises this. The fund’s administrator will be Volaw in Jersey and I know all of you are familiar with Trevor Norman, one of the fund’s directors, who kindly gave the IREF awards away last year and I understand has been nobbled into doing it again tonight! Structured finance will be restricted to 40% of the purchase price, in line with both investor and bank sentiment and will be provided by way of a commodity Murabaha. The fund will target capital gains of 10-13% IRR over 5 years and will use the rental income to pay for the cost of the structured finance. Gains will be achieved through opportunistic buying, renovation uplift and leverage growth and it is intended that the properties will be divested as a portfolio to institutions hungry to access this small but very valuable market. The fund will be open to investors until April of this year, or until fully subscribed, at which point it will start acquiring the very best property that London Central can offer. London Central Portfolio (LCP) was established over 20 years ago. It has exclusively approached prime London Central residential as an alternative asset class with an important role within a balanced portfolio. LCP has over 100 years’ market experience in its senior management team and has acquired in excess of half a billion pounds’ worth of property. Unlike UK real estate agents we have nothing to sell. Rather, LCP acts in the buyer’s interest providing a convenient and accountable one stop service. This extends from property identification and acquisition to refurbishment and furnishing for corporate lets through to full letting and rental management. It is all handled in house, based on a proven financial and business model to maximise the investor’s profit opportunity in prime London Central.

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

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ADDRESSING IRAQâ&#x20AC;&#x2122;S DEMAND FOR NEW HOUSING By Adrian Creed Adrian Creed, Clyde & Co, outlines a summary of how Public Private Partnership (PPP) might be structured in Iraq for the delivery of new housing. The UK Approach With the current very high demand for housing in Iraq, it may now be an appropriate time to look at new housing solutions that do not rely upon the public sector alone. The UK faced similar challenges in the past and decided to implement a number of policies to dramatically change the basis upon which housing solutions are delivered. The philosophical shift is that the UK Government has moved to a more limited role of policymaker and regulator in the sector. It also provides certain grants, financial support and subsidies to make the sector appealing to private sector developers and lenders. It does not, however, get involved directly in the design, procurement, construction and project management, financing and delivery of new housing facilities. This responsibility has largely been passed onto the private sector.

Housing in the MENA Region Most MENA governments have already started to move away from the traditional procurement model in sectors such as power, water, waste and transportation. The BOO/BOT/BOOT/BTO models that we now see being used for infrastructure and utility projects can also be extended for use in the housing sector, although there are a number of important differences that must be recognised and built into a housing concession. Infrastructure assets and public utilities are fundamentally different from somebodyâ&#x20AC;&#x2122;s home. Bahrain will shortly complete its first affordable housing PPP, and we are aware of a number of other MENA governments that are now considering some pilot PPPs in this sector. An example of the sort of project to which this structure could apply is one for the delivery of housing for government

employees. In any such arrangement the government is looking for quality housing built on time and then well managed and maintained. The private sector contractor (Contractor) looks for certainty as to what it is being required to deliver both in terms of works and services; a predictable income stream; and a strong covenant in relation to payment of that income stream.

Key Requirements for a MENA Housing PPP Specification; output rather than input To ensure that quality accommodation is delivered on time there are a number of key features to be incorporated into the PPP documentation. It is fundamental that a clear specification is produced. Such a specification must clearly set out the governmentâ&#x20AC;&#x2122;s requirements in a way that can be measured objectively. We would expect the specification to be drawn up on an output rather than an input basis. Ultimately, signoff of the dwellings on practical completion will be dependent upon meeting these output requirements.

Monitoring, review and approval of the works Whilst the government is not directly employing the building contractor, it is necessary to have the ability to monitor the works as they progress. This will enable problems during construction to be picked up at an early stage. Equally however, given the nature of the project structure, one would not expect the government advisors to be on site on a regular basis. As practical completion is reached independent signoff against the specification requirements is key. An independent certifier should be appointed i.e. not a professional employed by the Contractor. Such an independent professional needs to owe a duty of care to the government.

Payment triggers, liquidated damages and compensation To ensure that the project is delivered to the appropriate standard, payment for the delivery of the service only commences once that service is available i.e. when the dwellings are practically complete and signed-off as meeting the specification requirements. If there is a delay in construction the government should consider whether it is appropriate to levy damages (both for delays and underperformance). The Contractor is already incentivized to deliver the project because payment only commences when the project is complete. It may be, however, that there is a need for the accommodation to be delivered by a certain date, perhaps linked to vacation of another property. That might make levying damages appropriate. In the MENA utility sector, there tends to be a very heavy liquidated damages regime on PPPs because of the critical and time sensitive need for power and water. If problems emerge during the construction period and these relate to the standard of construction, the periodic inspections and potential opening up of works ought to identify them. That should give the government the opportunity to require remedial action to be taken during the construction process. If that remediation is not tackled adequately, or if the Contractor runs into solvency difficulties, then a right to terminate the arrangement needs to be built into the documentation. If the project is terminated part way through construction, consideration needs to be given as to whether any compensation will be paid to the Contractor. The Contractor will be looking to ensure that the government does not seek to benefit from a windfall through the termination of the project. It may be appropriate to incorporate compensation perhaps along the lines adopted in the UK for PFI projects. This works on the basis that the Contractor is paid the value of the remaining term of the contract. Bidders are sought

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Offtake Arrangements Consideration needs to be given to the appropriate party to take the risk of demand continuing for the accommodation. It is unlikely that the private sector will wish to take this demand risk or, if they do, they will charge a significant risk premium for doing so. Accordingly, it is likely to be appropriate for the government to undertake to pay for the dwellings whether they are occupied or not but only, as indicated above, where the dwellings are to the appropriate standard.

and whatever a bidder is prepared to pay to take on the project is passed across to the Contractor. This type of compensation arrangement may result in no payment at all. As a consequence, the Contractor’s funders will typically require a right to “step in” prior to the final termination of the concession. This is likely to be of assistance to the government as it avoids having to take on a partially completed project and pass it onto a third party. The funder is incentivised to act because that is a way of preserving the project cash flows and ultimately, therefore, repayment of debt.

Operational Phase Once practical completion is achieved the housing will be let and operational responsibility will sit with the Contractor. The concern here will be to ensure that the property is managed and maintained to appropriate standards. As with the construction phase, it is essential that a service specification is drawn up which defines what is required. That service specification should be one against which performance can be monitored. Under a PPP contract one would expect payment to be made only where services are provided to the requisite standard and for deductions from payment to be made where standards slip. A payment mechanism sits alongside the services specification. That translates failure into financial deductions. If services are completely unavailable because, for example, the premises have been destroyed by fire, then no payments are made until reinstatement is achieved. This of course means that the Contractor is taking the insurance and reinstatement risk. In the UK, measurement of performance against the standards is normally undertaken by the Contractor on a self-monitoring basis, audited periodically by the government or its advisors. It is unlikely that this would be the preferred approach in the MENA region and assuming that this is the case, the government could undertake monitoring itself but this will have obvious cost implications.

In relation to the power, water and waste PPPs that have already been implemented in the region, there is always a single government offtaker that takes full demand risk by entering into a “take or pay” contract for the full output of the facility. On the other hand, transportation projects in the MENA region have sought to pass on some of the demand risk to the concessionaire. For the first MENA housing PPPs, the regional utility model (rather than transportation model) is the preferred starting point from a bankability perspective.

Early Termination If there is failure during the operational phase this may be a failure of service delivery or a solvency failure. As with the construction period, the government needs the right to terminate the contract. Funders will wish to have the right to step in to preserve the concession cash flows. If the contract is ultimately terminated we would suggest that compensation payments are appropriate but that as with the construction period, these should be geared to the value of the remaining project term. We have referred to termination of the concession in circumstances where the Contractor has defaulted. Other bases for termination also need to be considered. The government may wish to bring the concession to an end early. If the government fails to pay or is otherwise materially in breach the Contractor may wish to be able to terminate. Force majeure may result in the concession ceasing to operate. In all of these scenarios termination compensation will be expected by the Contractor. Where the government is at fault or wishes to terminate early that compensation is likely to be of an amount sufficient to pay off lenders, subcontractors and equity returns.

Land Issues In the UK, dealing with land issues is reasonably straightforward. In the MENA region, it is important to make sure the basic platform for all rights necessary to (i) undertake the concession, and (ii) provide appropriate security to the lenders are in place. If the land is owned by the government, a long lease/usufruct agreement will need to be given for the

duration of the concession. If the land is privately owned, arrangements will need to be made to ensure that the interests of all members of any housing consortium and lenders are properly protected (given the restrictions on foreign ownership and the constraints on being able to grant long leases in many jurisdictions).

Ownership of the Asset Consideration needs to be given to ownership of the asset being developed. The asset may be owned by the government and the Contractor may build and manage under licence. Much here depends upon whether the government’s intention is to retain the asset in the long term or whether it is willing for the Contractor to take the property once the project term ends. If the government is prepared to leave the asset with the Contractor then it ought to be possible to factor in the residual value benefit to the Contractor thus lowering the periodic payments to be made under the concession agreement. The government can retain the option to repurchase the asset. The government may also wish to consider retaining an interest in an uplift in value at some point in the future. For certain strategic assets, the government may be reluctant to allow the asset to be owned by the private sector. This was the case on the Hajj airport BTO project, where the Government of Saudi Arabia felt that the Hajj airport was a national and religious asset of the country that should not be owned by the private sector. This meant that the transaction had to be structured on a BTO basis (i.e. build, transfer, operateso that as each stage of the construction was completed it was handed over to the government). Whilst this did create serious challenges in making the project bankable because the traditional project finance security package, including a mortgage or charge over the assets could not be given, the deal did eventually reach financial close. Other likely provisions in a PPP structure of this type will include the following; a right for the government to vary the contract but with the Contractor being left in a ‘no better no worse’ position; risk sharing in relation to changes in law during the concession period; refinancing provisions allowing the government to share in refinancing gains; change of control clauses ensuring the ownership of the Contractor does not change too early or become vested in a body the government regards as unacceptable; and clauses allowing for the Contractor to be afforded relief from termination or payment deductions in certain limited circumstances arising from events beyond the Contractor’s control. Adrian Creed is based in Clyde & Co’s Abu Dhabi office where he is a projects partner, principally focusing on energy and infrastructure projects.

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DOING BUSINESS IN SAUDI ARABIA - BY MORRIS DEFEO, HEAD OF CROWELL & MORING’S MENA PRACTICE This is the first in a series of articles which look at the legal and cultural issues associated with operating a commercial venture in Saudi Arabia. For the fifth consecutive year, Saudi Arabia was ranked as the best place to do business in the entire Middle East and the Arab World according to the International Finance Corporation (IFC). An increasing number of companies are now looking to establish business operations in the Middle East, and the Kingdom of Saudi Arabia is one of the preferred locations as a result of economic reform and a desire on the part of the Saudi government to attract foreign investment. The following describes current processes for doing business in Saudi Arabia. We note that the Kingdom is currently in the midst of revising its corporate and commercial laws, so there may be a number of changes in the future. As with any entry into a foreign market, it is relevant to understand the regulatory environment that will affect your business operations. The Saudi regulatory environment consists primarily of three elements: Islamic law as enforced in Saudi Arabia (Shari’ah), Saudi legislation (Legislation), and regulators’ policies and practices.

1.Shari’ah Shari’ah consists of a collection of fundamental principles derived from a number of different sources, including the Holy Quran, the Sunnah (sayings of the Prophet Mohammed) and the works of Shari’ah scholars. Shari’ah is the supreme law of Saudi Arabia, and all Legislation and regulators’ policies and practices must be consistent with Shari’ah. With certain exceptions, Shari’ah is not a codified set of laws in Saudi Arabia (though codification has been proposed by King Abdullah), but consists largely of general principles. These principles are interpreted and applied by a court in the context of each individual case. As a result, Shari’ah is in many respects extremely flexible and able to deal with unique fact situations without amendment or update. While this flexibility allows Shari’ah to be very responsive, it does not always offer

certainty. Such uncertainty is magnified by the fact that as Shari’ah is not codified, different Saudi courts may apply Shari’ah principles differently and obtain different results.

2.Legislation Saudi Arabia is a monarchy ruled by a king, currently King Abdullah bin Abdul-Aziz bin Al Saud. The king is advised on the formulation of general policy by a Council of Ministers and a consultative “Shura” Council, both of which are appointed by the King. The Councils also generally direct activities of the growing government bureaucracy. There are no officially recognized political parties. Periodically, the Saudi government issues Legislation to supplement Shari’ah. Legislation will typically take the form of Royal Orders, Royal Decrees, Council of Ministers Resolutions, Ministerial Resolutions, and Ministerial Circulars. Legislation is at all times and without exception subordinate to and subject to Shari’ah. Legislation is typically (but not invariably) published for public reference in the Saudi Arabian Official Gazette, otherwise known as the Um Al Qura. However, at present, the Official Gazette can only be searched manually. Accordingly, in practice, Legislation is not always publicly accessible and is subject to amendment and repeal.

3.Policies and Practices Saudi regulators have developed practices and policies that enable them to address issues (typically procedural) that are not anticipated by and not addressed by Legislation. These policies and practices are often unpublished and are subject to amendment and repeal without prior notice. Arabic is the official language of Saudi Arabia and the operating language of the Saudi government. Accordingly, all Legislation, policies, practices, documents and correspondence issued by the Saudi government is issued in Arabic. In some cases, materials issued by the Saudi government may

be issued in a bilingual format, with Arabic and another language. However, in all cases, the Arabic version will be the governing version. Similarly, all correspondence and documents submitted to the Saudi government must be in the Arabic language. If correspondence or a document being submitted to the Saudi government or judiciary is originally in a language other than Arabic, the document must be translated into Arabic by a certified translator in Saudi Arabia. The Saudi regulatory environment can be very fluid and is not always as accessible or transparent as foreign investors might wish. Parties entering into contracts governed by Saudi law may face levels of uncertainty as to the enforceability of certain terms to which the parties agreed. In part because of this, though Saudi Arabia ranks highly for overall ease of doing business within its borders, the World Bank ranks Saudi Arabia 138th out of 183 countries with respect to the enforcement of contracts. In the next issue, we will look at the incentives available to foreign investors looking to invest in Saudi Arabia, in both the Saudi public and private sectors, as well as looking at the different types of Saudi investment vehicles through which foreign investors may conduct business in Saudi Arabia. Crowell & Moring has been working in the Middle East and specifically Saudi Arabia for many years. We now have more than a dozen lawyers on the ground in Cairo and Riyadh. In Saudi Arabia, we operate in collaboration with Alenizy & Associates, one of the leading law firms in Saudi Arabia, based in Riyadh. Our lawyers are well versed in the procedures necessary to ensure compliance with Saudi law and with the full range of issues associated with cross-border transactions and the management of disputes involving Saudi Arabia. Through our association with Alenizy, we understand not only the legal issues, but also the cultural issues associated with any business venture in Saudi Arabia.

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UK AND THE ARAB WORLD: PARTNERS FOR PROSPERITY

CONTACTS Carl Jayasekera - Senior Manager Middle East, UAE, Oman, Lebanon & Syria, UKTI Email: carl.jayasekera@ukti.gsi.gov.uk Phil Dowrick - UKTI Business Specialist for the Gulf States Email: phil.dowrick@pera.com A full list of the UKTI commercial officers who took part in Partner ME can be found here: www.partnerme.ukti.gov.uk/content/ public/main/ViewProfiles.aspx

British companies are being urged to become much more active in their attempts to win new business in the Middle East in order to benefit from the numerous real and extensive opportunities that are now emerging across the region. And as the UK enjoys certain clear advantages as a result of its close relations with the Arab states over many decades, this should help firms achieve success in these markets. This strong message was delivered at the recent Partner ME 2012, described as a “Gateway to the Dynamic Middle East Market”, which offered expert advice and insider opinion on a wealth of new and emerging business opportunities in some of the key dynamic markets of the Middle East. A series of briefings and roundtable discussions were targeted at UK companies seeking to boost their exports to these markets and to take advantage of the region’s investment potential. Organised by UK Trade & Investment in partnership with the Arab-British Chamber of Commerce, Partner ME was launched with a full programme of seminars and one-to-one discussions on 5 March at the government Conference Centre 1 Victoria Street, Westminster. The launch event in the capital was followed up with similar presentations and discussions to regional businesses in Cambridge and Manchester later in the same week. The primary emphasis throughout the threeday event was on projects identified by British commercial officers as those most likely to

present the best opportunities to UK firms based on their experience and observations of the local markets taking into account the expertise and strengths of British business. The event, then, presented a wealth of “high value opportunities” in the following carefully selected sectors: l l l l l l l

Airports; Rail & Metro; Construction; Low Carbon and Renewables; Water; Healthcare; and Education.

While some common themes emerged, such as the emphasis being placed on education, training and job creation all over the region, the diversity of the markets in respect of their resources and their levels of development was clearly apparent. Discussion focused on new projects and the prospects for partnership with the Arab markets seen as offering most potential for UK involvement such as the UAE, Saudi Arabia, Iraq, Oman, Kuwait, Bahrain,

Qatar, Lebanon, Jordan, Libya and Egypt. The seminars consisted of speakers from the UKTI commercial offices based in the countries concerned teaming up with experienced representatives from some important private sector firms with extensive experience of the markets at various levels, such as HSBC, Trowers and Hamlins and Clyde & Co. The message to British business was loud and clear: the Middle East remains one of the most dynamic and potentially rewarding regions in the world to do business. It is becoming an increasingly important global trade, transport and services hub thanks to its strategic geographical location for exporting to the wider Middle East, to East Africa and Southeast Asia. Governments across the Arab world are also continuing to diversify their economies away from hydrocarbons, and investing their oil and gas wealth in ambitious new infrastructure projects and in the expansion of the education and training programmes designed to meet the needs of their fast-growing populations and future generations.

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British companies, it was explained, have the technology, skills, experience and know-how to offer excellent support for these developments. However, although Britain had traditionally performed strongly in the Middle East, helped by its long-standing UK-Middle East political and trading links, competition was becoming fiercer from new competitors such as China and India. In response to this challenge, British firms needed to step up to the mark and renew their efforts if they wanted to win new business in the region as it was no longer possible to simply depend on loyalties based on old friendships, delegates to Partner ME were told. Nevertheless, the widespread use of English in business circles and the increasing appreciation of its importance as a global language, means that UK firms enjoy a considerable advantage. To this should be added the respect of Arab people for UK goods and services which are widely admired and have a strong reputation for quality and reliability. UK brand recognition is also an important asset for making inroads into the markets. Opening the event, Nick Baird, Chief Executive of UKTI, highlighted the diversity of opportunities in the Middle East and the advantages that UK goods and services still had in these markets. There was a strong basis for increasing UK exports which was an essential requirement at a time of constraints in the domestic market. The Middle East region offers opportunities for UK companies in virtually all sectors, but significantly in Airports, Rail & Metro, Construction, Water, Healthcare and Education, delegates to the event were told. In 2011, bilateral trade between the UK and the Middle East topped £25 billion. The Middle East was the UK’s sixth largest export market globally – which put it on a par with China and India combined - with exports of around £13 billion, Baird said. In addition, UK exports of services to the Middle East brought in over £8 billion worth of income to the country in 2010. Baird said that the Gulf economies stood out as a “bright spot” in current global economic circumstances pointing out that the combined GDP of the GCC amounted to $1.2 trillion. The good news was that UK exports to the region were increasing and for example had doubled to Saudi Arabia and Qatar in the last five years, Baird stated. UK business enjoyed a reputation for quality and innovation which was a considerable advantage. The region offered scope for more SMEs from the UK to extend their business contacts. The major reconstruction efforts underway in Libya and Egypt presented huge potential for new business with the investment focus on sectors such as power, rail and construction. Citing evidence of the prominent British presence in North Africa, the UKTI Chief Executive mentioned the possible return soon of BP and Shell to Libya and the landmark gas agreement signed between BP and Egypt in 2010.

UAE The roundtable meeting on the UAE was hosted by the Chamber and chaired by Abdeslam ElIdrissi, Director of Trade Services at the ABCC, who opened the discussion by referring to a quote from His Highness Sheikh Maktoum Bin Rashid Al Maktoum, the Ruler of Dubai, who said that “trust and respect” were the basis for the enduring relationship between the UK and the UAE. Dave Wells, Deputy Director of Trade & Investment, Dubai and his counterpart Robert Kelly, Deputy Director of Trade & Investment, Abu Dhabi, were the two principal speakers at this roundtable which given the importance of the market attracted a capacity audience. Wells pointed out that trust and respect could never be taken for granted and that the past 18 months had seen decisive government action from the UK side to reinvigorate relations with more ministerial visits. In excess of 50 ministerial visits had culminated in an official visit to the UAE by H M The Queen in 2010.

by UK’s Foster + Partners. He stated that 20 companies were in the bidding for work including three from the UK with the prime contract scheduled to be awarded by the end of the year. Actual building work would begin in 2013. Meanwhile, Saudi Arabia was planning some 27 new airports and major upgrades. UKTI stresses that it has good links with regional airport authorities which could be of use in assisting UK companies seeking to get involved in work on aspects of these projects. With regards to plans for new railways in the region, the following major projects were flagged up: UAE Rail, Oman Railway, Kuwait Rail and Metro and the Saudi Railway Programme as offering partner potential for UK firms. Oman Rail was described as a $7bn project about to get going and certainly “one to watch”.

Success would be achieved once a company got itself known in the local market which demanded multiple visits. The UAE offered a safe business environment and it was relatively easier to set up, delegates were told.

Another major Gulf rail project that should attract attention is the UAE’s Etihad Rail project, formerly the Union Railway, which will become the 1,200km national rail network across the UAE. The initial section is to cater for freight, but the completed network will eventually also consist of passenger services. The civil and track works contract for the first stage of the railway network awarded in October 2011 will link the Western Region cities of Habshan and Ruwais by 2013 and then Shah and Habshan by 2014. The contract was awarded to a consortium comprising Italy’s Saipem, Tecnimont and UAE-based Dodsal Engineering and Construction PTE.

The range of opportunities available in the UAE emerged during the discussion which prompted specific questions on vocational education, aerospace and engineering, advanced technology and the creative industries.

The Etihad Railway will not only eventually connect the entire emirates but will link the UAE to Saudi Arabia via Ghuweifat in the west and to Oman via Al Ain in the east. The project is being completed in three phases:

Given their attempts to construct a sustainable society, companies able to offer more opportunities to local people would gain real advantage.

l Phase I of the project incorporates the

While there existed goodwill for UK goods and services in the UAE, there was still a need to continue to build trust. Companies entering the market needed to seek out good legal advice before signing any contract or business agreement.

Sector Opportunities An enormous number of new high value business opportunities offering real potential for UK involvement at various levels were identified and discussed in detail during workshop sessions which focused on different areas such as healthcare and transport. This was an especially valuable aspect of the event as the information released concerned projects that were at an early stage of development and some of the business leads came with practical advice to help companies prepare to get involved.

Transport In the transport sector, high value opportunities were coming available in the planned construction and upgrade of airports across the region to meet its increasingly important role as a transport hub. Mentioned in particular was Kuwait Airport which was described by Phil Dowrick, UKTI Business Specialist responsible for the Gulf, as an “exciting project” designed

Shah-Habshan-Ruwais route;

l Phase 2 involves the construction of the

remainder of the Abu Dhabi Emirate Network and a connection to Dubai, covering areas such as Mussaffah and the Khalifa and Jebel Ali ports; and l The final phase covering the rest of the network in Sharjah, Ras Al Khaimah, Ajman, Umm Al Quwain and Fujairah. In Saudi Arabia, there were currently six major rail projects at stages of construction including the Landbridge which was now in its third bidding process. The Qatar Metro was another important project with contracts for tunnelling work soon to be released. UKTI anticipates that major opportunities for SMEs would be emerging in these projects.

Urban Development & Infrastructure A session on urban development and infrastructure highlighted the huge and diverse potential for partnerships in delivery of the Saadiyat Island project in the UAE and in Kuwait’s Boubyan Island. The UAE island, planned as a leading cultural centre and

tourism development, was open to UK input and opportunities were emerging in stages. The Kuwait project, meanwhile, was designed to be a major seaport and transport hub complete with a special economic zone, as well as extensive recreational and residential infrastructure. There was potential here for the UK to win contracts in the field of urban planning where Britain had considerable expertise. Significant opportunities for UK private and public healthcare companies were emerging as Saudi Arabia implemented an ambitious healthcare development programme which will see the construction of many hospitals and care centres over the next five years. There was a high level of ministerial engagement with this project and the UK model of public-private cooperation was the basis for how Saudi Arabia wanted to proceed in the delivery of the project. Healthcare, finance, education, skills, & training, infrastructure, energy, civil security and ICT were all essential development areas receiving attention and funding in Libya under the reconstruction programme.

The Levant Lebanon Speaking in a discussion on the Levant, Paul Khawaja, the UK’s Head of Trade and Investment eadin Beirut, stated that the Lebanese economy was an open market and welcomed UK investors. UK Lebanese trade witnessed a 3% increase in 2011 and UK exports currently stood at about £410 million. British involvement is particularly welcome in the country’s ongoing reconstruction programme while an ambitious privatisation programme of power, water, telecommunications and aviation should offer many more opportunities. There are many business opportunities in different sectors from construction to healthcare, consumer goods to oil & gas and in the service sectors with financial services and insurance, consultancies, tourism and leisure, and education all worth examining. Building and construction is one of Lebanon’s most active sectors as a result of a high level of foreign private sector investment attracted to the potential of the real estate and infrastructure development in the country and its needs for new hotels, tourist resorts, commercial and residential buildings. In addition, the government is implementing a reconstruction and development programme. Lebanon’s pharmaceutical and healthcare market is worth over $600m a year and constitutes the largest market in the Arab Levant. Demand is continuing to expand at a rate of 6-7% a year. Around 96% of the pharmaceutical products used in the country are imported and many of these products were supplied by UK companies. Nevertheless, the country remains a regional leader in healthcare generally, with world class hospitals and a burgeoning health tourism and cosmetic surgery sector. Lebanon spends a remarkable

ARAB-BRITISH CHAMBER OF COMMERCE

11% of its GDP on healthcare, which is the highest rate in the MENA region. The Hydrocarbon Law, ratified in August 2010 is expected to pave the way for exploration of major natural gas reserves off the Lebanese coast. There was British involvement in the sector with a UK company taking part in the surveying of the potential for offshore gas development. International firms are expected to join the bidding for exploration rights soon. Turning to Lebanon’s banking and financial services sector which is arguably the strongest and most dynamic part of the economy. The consolidated assets of banks stand at around $110 billion, more than three times the size of GDP. The sector has developed over more than a century and benefits from effective regulation provided by the Central Bank, a loyal and wealthy customer base and one of the strongest secrecy laws in the world. This combination of strengths has enabled Lebanese banks to weather the challenges and uncertainties of recent years. Other opportunities for investors that Paul Khawaja wanted to bring to the attention of UK investors were emerging in the power sector resulting from the country’s generation shortage and the attempts to increase capacity. In addition, Lebanon had adopted a master plan for addressing the water shortages stemming from a leakage rate of up to 60%. The plan is to renovate the water network and build new dams. New projects to the value of $5.7 billion are awaited. Finally, Lebanon is also focusing on the development of renewable energies and plans to build wind farms and expand hydro-electricity capacity.

Jordan Tourism was also an important sector for Lebanon given the presence of some important heritage sites and the same was true of neighbouring Jordan, where the opportunities were outlined by Thomas Wigley, a lawyer with Trowers and Hamlins. Based on his more than seven years’ experience of working in the Jordanian market, Wrigley highlighted the potential for UK involvement in some of the major new projects that the Kingdom was seeking to implement such as oil share exploration, the Red Sea pipeline, the Aqaba Port and major rail projects. He described Jordan as an easy place to do business and briefly outlined the range of tax breaks and incentives in place to attract foreign investors. Although a relatively small market, it was still one where UK firms could do successful and profitable business. Wigley considered that Jordan was likely to establish a formal relationship with the GCC stopping short of full membership and that this new arrangement would see a reduction in tariffs and give a boost to Gulf investment in the country.

The Wider Gulf A roundtable on the “wider Gulf” considered three important markets, namely Bahrain, Oman and Iraq. Delegates were told that Oman remained a solid market where UK firms do

well and many major projects were currently moving ahead after a lull in activity. An $11bn budget had been allocated for transport related projects including road, rail and infrastructure. Meanwhile, in developing its tourism sector, Oman had set itself the target of expanding its capacity so that tourism revenues contributed 4% to GDP by 2020, while it presently only contributed 2%.

Iraq Iraq was very much still in the reconstruction phases of development and as such it required assistance and investment in a broad range of sectors. In addition, oil majors were now operating once again inside the country which meant that it was set for achieving serious levels of production realising its capacity as one of the world’s main oil producers. The gradual increase in its oil production was bringing in more revenues which are enabling Iraq to invest in basic infrastructure facilities, in utilities and in services such as health and education. It was said that it was still too early for UK firms to look to partnership in the educational sector although English language, higher education and technical skills for Iraq managerial personnel were an urgent necessity. It was felt that companies would benefit from being able to offer training initiatives for the local staff that they employed. In terms of the health sector, investment in hospitals, equipment and training were where the emerging opportunities could be found. The business environment in Northern Iraq differed significantly from other parts of the country; firstly, it was seen as a safer place to do business and its economy was experiencing high growth reaching 9% last year and expected to hit 12% in 2012. It was governed by a regional authority that had set itself targets for developing specific sectors namely oil and gas, construction, education, healthcare, tourism and transport. The northern region has been attracting increasing interest from British companies who were welcomed to enter the market where currently over 70 UK companies were now active.

Bahrain Bahrain was a traditional UK market in the Gulf now restored to stability and looking forward to staging the Grand Prix in April. With a GDP on $29bn, Bahrain’s strengths for investors were its financial services sector, education and training, infrastructure, oil and gas and water. A summary sheet of the new projects mentioned in this report should be available from UKTI which would welcome queries from British firms seeking to take advantage of the opportunities emerging in these leading Arab markets.

Alongside the Arab-British Chamber of Commerce, UKTI also partnered with the Middle East Association and British Expertise in the delivery of Partner ME, which attracted interest from hundreds of companies over the course of the three days.

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GET QUALIFIED WHEREVER YOU ARE IN THE WORLD Anglia Ruskin University is leading the way in the provision of work-based distance learning education to companies in the UK and around the globe. With a unique offering of courses to suit all industries and skill sets we are able to meet the training requirements of any company and provide staff the qualifications needed to become great managers, all without the need to take time out of work or visit our campuses. We have partnered with the Arab British Chamber of Commerce to offer a great range of courses to members, which cover subjects such as Management, Leadership, International Trade and much more. You can obtain qualifications which start at entry-level Certificates and go right through to Master Degrees and MBAs. Karen Springett is currently studying with us for an MA in Leadership. She says; “I am finding the course rewarding, this is a liberating way to study. I can work when I want to, I can get everything out of the way and in the quiet of the evening I can concentrate. Having instant access to the other students’ ideas and postings is a great help. I can correspond with them all when I am ready to and read their contributions at leisure. “The support I have received has been wonderful. Quick and efficient replies to

my contributions or requests and simple instructions offered to get me moving again.” We also work with a number of leading international brands, including Harrods, RasGas, Specsavers, Timberland, Barclays, UPS, the Royal Air Force and Volvo, to deliver bespoke in-house training that meets their exacting requirements. Arkin Salih is Learning and Development Manager at Harrods, and he says; “The key thing I would credit Anglia Ruskin University with is their openness and their willingness to be innovative and think of new ideas. We wanted to create a world class sales course and Anglia Ruskin was really open to exploring what this qualification could be.” Work-based learning differs from traditional higher level education in that it involves actively using the workplace as a learning environment. Work-based programmes focus on developing skills, knowledge and understanding and the application of this learning to achieve specific individual, team and organisational objectives.

to access a wide range of learning facilities, including our digital library, discussion forums, videos and podcasts of lectures, wikis and blogs. We provide everything you need to study with us wherever you might be in the world. We can also work with you to organise summer schools or residential study weeks at our campus in the beautiful and historic city of Cambridge, When you visit our campus you will find we have fantastic modern facilities at our two locations in the UK including a modern Business School and a state if the art Post Graduate Medical Institute. Both of these locations are available for any of our 30,000+ students to use whenever they wish. We have partnered with leading institutions to offer the best choices and opportunities for anyone wishing to study with us. Our partners include the Arab British Chamber of Commerce, the Institute of Export, RDI, the Chartered Institute of Housing, Schouten University, Excelsior College and many more.

Through our innovative online Virtual Learning Environment (VLE) students are able

CONTACTS Please visit our website: www.anglia.ac.uk/abcc Telephone: +44(0)845 196 6707 Email: higherskills@anglia.ac.uk.

ECONOMIC FOCUS

QUARTERLY ECONOMIC SURVEY The British Chambers of Commerce Quarterly Economic Survey for the 4th quarter 2011 received over 7,800 business responses. The respondents cover the entire United Kingdom, and were surveyed by postal and online questionnaires over the period 14 November to 5 December 2011. In the manufacturing sector 1,943 firms, employing approximately 135,000 people, responded. 1,185 (61%) of manufacturing respondents were exporters. In the service sector 5,909 businesses with approximately 710,000 employees responded. Of the service sector participants, 1,969 (33%) were exporters. While the majority of respondents employ fewer than 500 people, the sample included 192 large businesses. Total responses are weighted according to the actual distribution of companies by size within each region, and each region is similarly weighted within the national aggregates to ensure that the sample provides a truly representative picture of UK commerce and industry. The survey is the largest and most representative of its kind in the UK.

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SUMMARY

Investment The Q4 investment balances worsened for manufacturing and were mixed for services. The balance of manufacturing firms planning to increase investment in plant and machinery fell three points to +5%, the weakest level since Q1 2010. Manufacturers’ intentions to invest in training fell two points to +10%. The balance of service firms planning to raise investment in plant & machinery rose one point, to +2%, still a very weak level. Service sector intentions to invest in training fell three points to +7%.

Business Confidence The Q4 2011 results are once again disappointing and give cause for concern. For both manufacturing and services, most key balances have recorded declines and are weak by historical standards. While the balances are still stronger than at the worst phase of the recent recession, the improvement seen in recent years has mostly been wiped out. The Q4 domestic delivery balances point to stagnation in manufacturing and minimal growth in services. The home orders balances moved deeper into negative territory, and highlight risks of declines early in 2012. The Q4 manufacturing export balances, though positive, fell for the fourth quarter in a row for both deliveries and orders. Although the service export balances improved in Q4 2011, they remain weak, and the service export orders balance is still negative. Weaker confidence balances in both manufacturing and services signal risks. In spite of weak growth overall, capacity utilisation figures are still relatively high in both manufacturing and services. Inflation remains the biggest area of concern for manufacturers and service firms.

Domestic Market The Q4 2011 domestic balances are weak and most have recorded falls. The manufacturing balance for home deliveries fell three points in Q4, to 0%, the weakest level since Q3 2009; the manufacturing home orders balance fell nine points, to -13%, worst level since Q2 2009.

The service home deliveries balance rose two points in Q4, to +2%, still a weak level. The service home orders balance dropped six points to -9%, the worst level since Q3 2009.

Export Market The Q4 2011 export balances worsened for manufacturing and improved for services. The manufacturing balance for export sales fell six points, to +12%, the weakest level since Q3 2009. The manufacturing balance for export orders declined nine points, +5%, also the weakest level since Q3 2009. The manufacturing export balances remain stronger than the home balances; they are also stronger than the service export balances. The service export sales balance rose six points, to +10%. The service export orders balance rose one point, to -1%, but is still in negative territory.

Employment The Q4 employment balances declined for both manufacturing and services. The manufacturing employment balance fell three points to +6%, the worst level since Q1 2010. The manufacturing employment expectations balance plummeted 18 points, to -8%, the worst level since Q2 2009. The service employment balance fell four points, to +2%, the weakest result since Q4 2010. The service employment expectations balance fell four points, to +2%, worst since Q3 2010. All the employment balances, in both sectors, are weak.

The confidence balances recorded declines in Q4 for both manufacturing and services. Though stronger than in the worst phase of the recent recession, confidence is inadequate and signals risks. Manufacturers’ turnover confidence balance plunged 19 points, to +14%, the weakest level since Q2 2009. Manufacturers’ profitability confidence dropped seven points to +9%, also the weakest level since Q2 2009. The service sector’s turnover confidence balance fell five points to 19%, the weakest level since Q3 2010. Service profitability confidence dropped eight points to 2%, the weakest level since Q2 2009.

Capacity Utilisation and Cashflow The proportion of manufacturing firms operating at full capacity rose 10 points, to 44%. In services, the proportion of firms operating at full capacity stayed unchanged, at 34%. The cashflow balances improved for manufacturing, and worsened for services. The manufacturing cashflow balance rose 10 points, to +2%, still a weak level. Services cashflow fell two points, to -8%.

Prices Intentions to raise prices are moderate in both sectors. The balance of manufacturing firms reporting pressure to increase prices fell two points, to +29%. The balance of service firms expecting to raise prices rose two points, to +24%.

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ECONOMIC CLIMATE The Q4 QES results point to a deterioration in the economic situation. The UK recovery shows signs of stalling. Recession is still avoidable but risks of a setback have increased. The domestic delivery balances point to stagnation in manufacturing and minimal growth in services in Q4. The forward looking home order balances moved deeper into negative territory for both manufacturing and services, and highlight risks of declines in domestic activity early in 2012. The manufacturing export balances and the service export delivery balance are still positive. But the worsening international situation and the growing risks facing the Eurozone will present UK exporters with serious challenges. While the government must persevere with efforts to reduce the deficit, more must be done to support growth and jobs by reallocating resources within the overall fiscal plan. Following the positive messages in the Autumn Statement, businesses now want firm, effective and swift action in key areas such as credit-easing, cutting red tape and containing increases in business rates.

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

The National Perspective The UK recovery shows signs of stalling. Recession is still avoidable but risks of a setback have increased. The Q4 2011 domestic balances are weak and most have recorded falls. The delivery balances point to stagnation in manufacturing and minimal growth in services in Q4. The forwardlooking balances for home orders moved deeper into negative territory, for both manufacturing and services, and highlight risks of declines in domestic activity early in 2012. The manufacturing sector’s net balance for home deliveries fell from +3% in Q3 to +0% in Q4, the worst level since Q3 2009. The net balance for manufacturers’ home orders fell sharply, from -4% in Q3 to -13% in Q4, the worst level since Q2 2009.

Though both manufacturing Q4 balances are still higher than at the worst phase of the recent recession, they show a clear deterioration. Micro manufacturing firms recorded the weakest Q4 balance for home deliveries; medium-sized manufacturers recorded the weakest balance for home orders.

The Regional Perspective The Q4 manufacturing balances for home deliveries were in negative territory in seven regions, while five regions were in positive territory. In the case of home orders, eight regions were in negative territory in Q4, while four regions were in positive territory. Comparing the manufacturing sector’s domestic performance across the various regions, the weakest Q4 net balances were in the South East, at -26% for home sales and at -49% for home orders. At the other extreme, the best Q4 manufacturing balances were in the South West, at +31% for home sales and at +27% for home orders. The Q4 service sector’s net balances for home deliveries were in negative territory in three regions, while nine regions were in positive territory. In the case of home orders, seven regions were in negative territory in Q4, while five regions were in positive territory. Comparing the service sector’s domestic performance across the various regions, the weakest Q4 balances were in Scotland, at -38% for home sales and at -49% for home orders. At the other extreme, the best Q4 service balances were in the West Midlands, at +15% for home deliveries, and at +10% for home orders.

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

The National Perspective The Q4 2011 export balances worsened for manufacturing and improved for services. The manufacturing export balances, for both deliveries and orders, declined for a

fourth quarter in a row in Q4; and, although still in positive territory, they are weak and inadequate, given the challenge of rebalancing the economy. The net balance for manufacturing export sales fell from +18% in Q3 to +12% in Q4, the weakest level since Q3 2009. The manufacturing balance for export orders declined from +14% in Q3 to +5% in Q4, also the worst level since Q3 2009. The manufacturing sector’s export balances remain stronger than the manufacturing home balances; they are also stronger than the service export balances, in spite of the improvement in services. The service export balances improved in Q4 2011, for both deliveries and orders, but they remain weak by historical standards. The service export sales balance rose by six points in Q4, to +10%. The service export orders balance increased marginally by one point in Q3, to -1%. The service export delivery balance signals modest growth in Q4; but the negative balance for service export orders signals risks of decline early in 2012. Large and micro service firms recorded the weakest Q4 export balances.

The Regional Perspective The Q4 manufacturing sector’s net balances for export deliveries were in positive territory in eleven regions, while one region was in negative territory. In the case of export orders, six regions were in negative territory in Q4, while six regions were in positive territory. Comparing manufacturing export performance across the various regions, the weakest Q4 balance for export sales was in the North West, at +14%; the worst balance for export orders was in the Northern Ireland, at -24%. At the other extreme, the strongest Q4 manufacturing balances were in South West, at +41% for export sales and at +38% for export orders. The Q4 service sector balances for export deliveries were in negative territory in one region; three regions were at 0%, while eight regions were in positive territory. In the case of service export orders, four regions were in negative territory in Q4, three regions were at 0%, while five regions were in positive territory. Comparing service sector export performance across the various regions, the weakest Q4 balances were in Eastern for export deliveries, at -3%, and in London for export orders, at -17. At the other extreme, the strongest Q4 service balances were in the East Midlands for export deliveries, at +23%, and in Yorkshire & Humberside for export orders, at +21%.

ECONOMIC FOCUS

Investment

Business Confidence

Q Over the past 3 months, what changes have you made to your investment plans:

Q Do you believe that over the next 12 months:

a) For Plant and Machinery: Revised upwards/ Revised downwards/No change

a) Turnover will: Improve/Remain the same/ Worsen

b For Training: Revised upwards/Revised downwards/No change

b) Profitability will: Improve/Remain the same/Worsen

The National Perspective

In the manufacturing sector both investment indicators weakened. Plans to invest in plant and machinery balance fell from +8% in Q3 2011 to +5% in Q4 2011, the weakest result since the first quarter of 2010. The balance representing plans to invest in training fell marginally from +12% in Q3 to +10% in Q4, the weakest result since Q1 2011. In the services sector the plans to invest in plant and machinery marginally increased on the quarter, from +1% to +2%, still very weak by historical standards. This indicator has not been in double digit positive territory since the first quarter of 2008. The plans to invest in training balance fell from +10% to +7%. This is the joint lowest result since Q3 2010.

The Regional Perspective In the manufacturing sector only the South East (-43%) and Northern Ireland (-6%) recorded negative balances for the indicator representing plant and machinery investment. The strongest result was seen in Wales (+34%). On the training balance the North East (-12%), Eastern Region (-3%) and South East (-15%) were in negative territory, and Wales recorded the strongest result at +59%. In the services sector investment in plant and machinery balances were negative in Scotland (-23%), North East (-1%), East Midlands (-1%), Northern Ireland (-8%) and London (-16%). The strongest result was recorded in the South West at +22%. For the investment in training balance the North East (-7%), Wales (-6%), and London (-3%) registered negative results. The South West again recorded the highest positive result at +26%.

The confidence balances in Q4 2011 recorded declines for both manufacturing and services. All the confidence balances, though still stronger than in the worst phase of the recent recession, are disappointing and inadequate. The confidence balance that manufacturing turnover will improve in the next 12 months plunged from +33% in Q3 to +14% in Q4, the weakest level since Q2 2009. The confidence balance that manufacturing profitability will improve in the next 12 months fell from +16% in Q3 to +9% in Q2, also the weakest level since Q2 2009. Large manufacturing firms recorded the weakest Q4 balance for turnover confidence; micro manufacturers recorded the weakest balance for profitability confidence. The confidence balance that service sector turnover will improve in the next 12 months fell from +24% in Q3 to +19% in Q4, weakest level since Q3 2010. The confidence balance that service sector profitability will improve in the next 12 months declined from +10% in Q3 to +2% in Q4, weakest level since Q2 2009 and a disturbingly low level. Small service firms recorded the weakest Q4 confidence balances for both turnover and profitability.

The Regional Perspective The manufacturing sectorâ&#x20AC;&#x2122;s Q4 2011 net balances for turnover confidence were in positive territory in eleven regions, while one regional balance was negative. In the case of profitability confidence, five regions were in negative territory in Q4, while seven regional balances were in positive territory. Comparing manufacturing confidence across the various UK regions, the weakest Q4 confidence balances were in the South East for turnover, at -36%, and in the North East for profitability, at -31%. At the other extreme, the strongest Q4 manufacturing confidence balances were in Wales, at +57% for turnover, and at +55% for profitability. In the service sector, the Q4 balances for turnover confidence were in positive territory in eleven regions, while one region was in negative territory. In the case of profitability confidence, eight regions were in positive territory in Q4, while four regional balances were negative. Comparing service sector confidence across the regions, the weakest Q4 balances were in Scotland, at -26% for turnover confidence, and at -35% for profitability confidence. At the other extreme, the strongest Q4 service sector confidence balances were in the East Midlands, at +40% for turnover, and at +17% for profitability.

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Capacity Utilisation

Cashflow

The National Perspective

In the manufacturing sector the percentage of firms reporting that they were operating at full capacity jumped ten percentage points to reach 44% in Q4 2011. This is the highest figure since Q4 2007. Looking at the firm size disaggregation, micro firms witnessed a fall in the percentage of firms operating at full capacity, from 43% to 35%, whereas large firms reported a big rise, from 16% in the previous quarter to 44% in the present quarter.

In the manufacturing sector the cashflow indicator strengthened from -8% in Q3 to +2% in Q4, this is the strongest result since Q4 2010 and the second strongest result since Q4 2007. However, it is still an incredibly weak number by historical standards.

In the service sector the percentage of firms operating at full capacity remained at 34%. This indicator has not been lower than this level since Q1 1995, but has recorded the result of 34% six times within this period. For large firms the full capacity result fell from 40% to 33%, for medium firms it rose from 29% to 37%, and for the two smaller firms sizes the results barely moved on the quarter.

The Regional Perspective In the manufacturing industry capacity utilisation figures were highest in Scotland (74%) and Wales and the South West (both 47%). The lowest capacity results were recorded in the East Midlands (21%), Eastern Region (26%), and Northern Ireland (29%). In the service sector the highest capacity utilisation percentages were witnessed in the West Midlands (43%) and Yorkshire and Humber (41%). The lowest results were recorded in the South East (22%) and Wales (26%).

In the services sector the cashflow balance weakened by two points to a level of -8%. This indicator has not recorded a positive balance since Q1 2008 and is a persistent weakness for UK businesses.

The Regional Perspective

In the manufacturing sector cashflow indicators had a range of -30% (in the South East) to +46% (in London). The regions recording positive balances were the North East (+11%), Yorkshire and Humber (+17%), West midlands (+6%), Wales (+18%), South West (+35%) and London (+46%). The next weakest cashflow balance beyond the South East could be seen in the Eastern Region at -27%.

In the services sector only the Eastern Region (+2%) recorded a positive balance. The weakest cashflow balance was recorded in Scotland (-30%), followed by the North East (-22%). After these deeply negative figures came Wales (-11%). Published with permission from the British Chambers of Commerce, from whom the full report can be obtained.

ARAB-BRITISH CHAMBER OF COMMERCE

WHY DOES IP MATTER IN ARABBRITISH TRADE? Much of the economic development in Arab countries in recent decades has derived from natural resources. However, several of the countries in the region either no longer have, or never have had, significant oil or gas revenues. It is clear that many governments in the region are acutely aware of the finite nature of these revenue streams, and are actively seeking to establish more diversified economies. Attention is increasingly turning to innovation and entrepreneurship. INSEAD, in its annual Global Innovation Index, has consistently ranked the UAE and Qatar within the top 40 countries for innovation since 2009. Several other Arab states have also been recognised as improving in this area. Projects such as Masdar in Abu Dhabi and the Qatar Science & Technology Park show that innovation is taking root in the region.

How can an effective IP system make a difference? Business leaders throughout the world realise that much of the value of any business is intangible. Much of this intangible value is in the form of Intellectual Property (IP), namely patents, trade marks, copyright and designs. Thus, just as with any other valuable asset, protecting and managing IP is key. Creation of IP provides a business with a sense of

permanence, embedding skills and knowledge which can be traded over and over again. Innovation involves significant investment and financial risk. A credible legal system needs to be in place for businesses to be prepared to take this risk. Patent systems which allow businesses to protect their innovations, before competitors enter the market, have been a catalyst for industrial development throughout the world â&#x20AC;&#x201C; first in Europe and the US, and then in Japan and Korea. Now, it is no coincidence that China is placing huge emphasis on developing a world class patent system. Correspondingly, effective brand protection has enabled businesses to establish reputations and to distinguish themselves from their competitors. IP protection mechanisms are now well established in Arab countries. Most countries are now members of international treaties aimed at harmonising IP laws. Systems are also now in place for enforcement, and there is already significant activity against counterfeiting. While these processes are not always perfect, they are certainly heading in the right direction. The development of IP systems in the Arab region means that it is possible for British businesses to protect their intangible assets in this market, and it is also possible for local businesses to do the same. It is widely recognised that provision of an adequate IP system works hand-in-hand with greater

awareness by users of the opportunities that the global IP system presents. Many governments in the region are working hard to raise the profile of IP as a mechanism for local businesses to extract value from innovation.

What should businesses do? Preparing for launch in a new market involves both protecting your own assets but also ensuring that you do not infringe IP rights held by competitors. Building IP protection planning into overall strategic thinking is thus vital for any business. Key questions for any business: l How do you distinguish your business from

your competitors?

l Have you taken steps to protect your

business against competitive threats?

l How much do you invest in innovation, and

how do you intend to extract value from this?

l Do you know what IP you own, and what

value you attribute to it?

l Have you assured yourself that you do not

infringe competitor IP rights?

l By addressing these questions, a business

will be better placed to bridge the gap between the UK and the Arab world.

Ed Round, Partner, Marks & Clerk LLP

ECONOMIC FOCUS CHAMBER NEWS

TUNISIAN AMBASSADORIAL ROUNDTABLE - 20 SEPT 2011 H E Hatem Attallah

H E Mr Hatem Atallah, the Ambassador of Tunisia, addressed an ambassadorial roundtable hosted by the Arab-British Chamber of Commerce. The business gathering, chaired by Baroness Symons, A-BCC Chairman and opened by Dr Afnan Al-Shuaiby, the Chamber’s Secretary General & CEO, heard the ambassador outline his country’s plans for development and reconstruction in the wake of its “Jasmin Revolution”. The event provided an opportunity for the new ambassador to meet executives from some key British businesses and potential investors and brief them about the plans of the interim government in Tunisia. Dr Afnan stated that Tunisia was successfully meeting the challenges following events of earlier in the year and was now offering new opportunities to investors. Introducing the discussion, Baroness Symons stated that Tunisia was a market that the UK had tended to overlook; but it had significant potential and she urged UK firms to develop business contacts with the country. Briefing the delegates, the ambassador admitted that the economy had shown “severe strains” in the immediate aftermath of its “Jasmin Revolution”: it had suffered losses estimated at $7 billion, along with a 50% drop in tourism and unemployment had climbed from 350,000 to a current figure of 700,000. The ambassador outlined the discussions which had led to the unveiling of a detailed economic recovery plan which Tunisia had presented to the recent G8 meeting in Marseilles. He stressed that Tunisia viewed partnership as the key to its future development and successful transition. The aim of the “Economic and Social Development Plan” or “Jasmin Plan” was to create the conditions to generate prosperity and achieve consolidation. The plan came as the country prepared for elections to a new Constituent Assembly on 23 October which would then draw up a new constitution. H E Mr Hatem Atallah said that “one of the fundamental demands of the revolution was the improvement of economic living conditions” and the interim government had adopted several measures to address immediate

demands of the people, particularly for job creation. He explained that the short-term emergency measures include job-support initiatives, the provision of enhanced financial support for social and regional development and assistance to enterprises that were adversely affected by the recent social disturbances. The interim administration has also conducted a “complete overhaul” of the country’s regulatory framework relating to microfinance and private equity and was seeking to promote small businesses in rural areas through the simplification of borrowing procedures. Enhanced transparency and better corporate governance were seen as essential to the new open business environment that Tunisia was determined to establish, the ambassador stated. Tunisia is aiming for economic growth of around 5% during the transition period through to 2013. The country hopes to see the private sector playing a much greater role in the economy with the state gradually withdrawing from active involvement. Tackling unemployment particularly of graduates in the less developed regions of the country will remain “Tunisia’s top priority”. While the rate of unemployment was in excess of 18% generally, it was between 31% and 48% among graduates in some regions. The longer term solution involved “an ambitious investment programme across the various economic sectors,” the ambassador said. He announced that Tunisia was setting up two new “investment vehicles” to speed up the process of attracting investment. The Generational Investment Fund (AJYAL Fund) and the Deposit and Consignment Vehicle (CDC) would be operational by the end of the year. AJYAL would be launched with “seed money of around $4bn and would finance projects that meet strict private investment criteria and restricted to “large ticket projects”. In addition, there will be sub-funds for specific sectors like infrastructure, agriculture, technology and tourism. Tunisia estimated that the fund should ultimately generate aggregate investments in excess of $30bn during the five years 2012 to

2016. Meanwhile, the CDC would be engaged in financing large infrastructure projects and supporting SMEs. As the ambassador explained, the CDC would “finance projects which do not meet the investment criteria of private investors”. In order to ensure the success of the investment plan, Tunisia was adopting major reforms in its financial, legal, judicial, public sector administration and education systems, H E Hatem Atallah emphasised. Tunisia’s policy to invest 7% of GDP in education over several decades meant that the country enjoyed high ranking in terms of the level and quality of its education. Nevertheless, weaknesses still exist in aspects of education and other areas which is why the Jasmin Plan was putting a major emphasis on human development as a cornerstone of economic success. To secure future growth, the ambassador signalled Tunisia’s intent to pursue its ambition to be granted “advanced status” with the European Union and it was also determined to expand its free trade agreements with its trading partners. He said that Tunisia remained well positioned to be a trade and investment hub bridging commercial, financial and investment opportunities between Europe, Africa, the Middle East and the Far East. On the development of higher education, H E Hatem Atallah said Tunisia was concentrating on establishing a knowledge-based and service economy through increased investment in research and development. Finally, the ambassador called on Tunisia’s friends and partners in Britain and internationally to show their support to ensure that the country is able to realise its ambitions. The roundtable proved to be effective in shedding light on the latest plans of Tunisia and highlighted the opportunities that were emerging as the country put its economy on a sound footing for the future. The ambassador was accompanied by Mr Wahid Ben Younes, Tunisian Embassy, Mr Beligh Ben Soltane, FIPA and Mr Moncef Battikh, Tunisian National Tourist Office.

ARAB-BRITISH CHAMBER OF COMMERCE

MOU WITH OXFAM - 20 SEPT 2011

Dr Afnan Al-Shuaiby and Dame Barbara Stocking

The Chamber has announced a new partnership with the leading global charity Oxfam. The partnership was launched with the signing of a memorandum of understanding (MOU) between the two organisations at an evening reception at the Chamber’s offices. The agreement was formally signed by Dr Afnan Al-Shuaiby, Secretary General & CEO of the A-BCC and Dame Barbara Stocking, CEO of Oxfam GB. It was attended by an invited audience of diplomats, senior executives and other prominent people from the worlds of business and charitable work. The initiative comes in the year that the Chamber is celebrating its 35th anniversary and, throughout its three and a half decades, the organisation has never lost sight of the ethical dimensions to its work in the promotion of Arab-British relations. “Our founding motto of “friendship through trade” succinctly embodies the fundamentals of the philosophy that has remained at the heart of all the activities that the Chamber has undertaken over these years,” Dr Afnan Al-Shuaiby stated. The MOU marks the start of a new programme of joint activities between the two organisations which will be implemented in coming months and years. This will include working together on joint events, research, training and fostering social entrepreneurship.

Dr Afnan Al-Shuaiby

H E Prof Manuel Hassassian, Palestinian Ambassador

PALESTINIAN DAYS FESTIVAL - 25-27 NOV 2011

The Chamber hosted the Palestinian Days festival to celebrate the artistry, talents and entrepreneurial skills of the people of Palestine. The festival was launched on the evening of 25 November with a reception and fashion show attended by leading dignitaries including H E Professor Manuel Hassassian, the Palestinian Ambassador. Palestine has a rich and distinctive cultural heritage that has developed over its centuries-long history. This was reflected in the range of products and goods on display. Handicraft products made from wood, pottery, glassware and ceramics, along with textiles and soap making, were some of the Palestinian items on display.

Items of traditional fabric weaving, needlework and embroidery with their uniquely attractive designs and colours were also available. Opening the event, Dr Afnan Al-Shuaiby stated that “the Chamber is proud to be able to host this special event which once again fulfils our strong commitment to supporting the Palestinian people who endeavour through their remarkable resolve and talents for business to build a commercially successful, sustainable economy.” The Chamber worked closely with the Association of the Palestinian Community in the UK and the Palestinian General Delegation to make the event possible.

ECONOMIC FOCUS CHAMBER NEWS

Prof Abdel-ilah Bennis, Prof Joseph Tanega and Mr Grant Rogan

H E Dr Ibrahim al-Assaf and Dr Afnan Al-Shuaiby

Baroness Symons with HRH Prince Mohammed bin Nawaf Al-Saud

SAUDI FINANCE FORUM - 13 OCT 2011

HE Dr Ibrahim al-Assaf and Rt Hon Danny Alexander

The enormous potential for boosting trade and investment between Britain and Saudi Arabia was brought into sharp focus at the Saudi Finance Forum hosted by the ArabBritish Chamber of Commerce. This highlevel business forum, held at The Dorchester Hotel in London, heard keynote addresses from H E Dr Ibrahim al-Assaf, the Finance Minister of the Kingdom of Saudi Arabia and Rt Hon Danny Alexander, the UK Chief Secretary to the Treasury.

Britain and the Arab World. The Kingdom was playing a positive role in the global economy by ensuring stability in the oil market which is in the interest of producer and consumer alike, the Minister stated. The IMF had acknowledged Saudi Arabia’s contribution in this respect.

The event, which was widely covered in the media, coincided with the Saudi Finance Minister’s visit to Europe to attend the forthcoming G20 summit which was due to open in Paris the following day. The forum identified numerous new opportunities for deepening cooperation between the two countries in areas as diverse as financial services, insurance, infrastructure development, healthcare, education and housing.

The Chief Secretary to the Treasury, Rt Hon Danny Alexander, welcomed the forum as vital for promoting and building on the ties between the UK and the Arab world. As Saudi Arabia embarks on over $400bn of infrastructure investment, the British government welcomes greater UK involvement in those plans, the Minister stressed.

Baroness Symons, Chairman of the A-BCC, welcomed the distinguished speakers and the more than 250 delegates, thanking sponsors, SABB and Blenheim Capital, for helping to make the event possible. Dr Afnan Al-Shuaiby, Secretary General and CEO of the A-BCC, said that the Chamber was delighted to host such an important forum which she hoped would mark a further strengthening of bilateral relations between Saudi Arabia and the UK.

Its investment policy had a positive impact on the region by increasing the flow of goods and remittances from those working in the country helps with poverty reduction in the region.

Rt Hon Danny Alexander

HRH Prince Mohammed bin Nawaf Al-Saud, the Ambassador of the KSA, paid tribute to the role of the A-BCC in promoting ArabBritish relations. He said that the high-level participation in the forum highlighted the excellent relations that exist between the two kingdoms. H E Sir Tom Philips KCMG, the British Ambassador to the KSA, pointed to the great opportunities opening up in the Kingdom and highlighted some major infrastructure projects that it had recently launched. In his keynote speech, H E Dr Ibrahim alAssaf, the Saudi Finance Minister, began by emphasising the deep historical ties between

Mr Alexander also invited Saudi investment in the UK’s major investment projects such as offshore wind generation and transmission assets, the High Speed 2 rail from London to Scotland, and the next generation of nuclear power plants. Other speakers consisted of Mr David Dew, Managing Director of SABB and Mr Grant Rogan, CEO of Blenheim Capital, the event’s joint sponsors. They were joined by Professor Joseph Tanega, a senior lecturer in international financial law at the University of Westminster and Professor Abdel-Ilah Bennis, Director of the Diplomatic Academy of London.

ARAB-BRITISH CHAMBER OF COMMERCE

A-BCC 35TH ANNIVERSARY - 15 NOV 2011

The Arab-British Chamber of Commerce celebrated its 35th anniversary in true style with a special Gala Dinner at the prestigious Landmark Hotel in central London. The event marked a milestone in the history of the Chamber highlighting its proud and unrivalled record in the promotion of ArabBritish business relations. Over 250 specially invited guests, including ambassadors, senior financial and business executives and other dignitaries, attended the event which was presided over by A-BCC Secretary General and CEO Dr Afnan AlShuaiby and Chairman Baroness Symons of Vernham Dean.

The keynote address was delivered by His Majesty King Abdullah II Ibn Al Hussein of the Hashemite Kingdom of Jordan, whom the Chamber was very privileged to have in attendance. The Kingâ&#x20AC;&#x2122;s broad ranging speech was widely reported in the press. The evening was also graced with the presence of HRH The Duke of York, the UKâ&#x20AC;&#x2122;s Special Representative for International Trade and Investment. The other keynote speaker was the Rt Hon Philip Hammond

MP, the Secretary of State for Defence, representing the British government. Contributions were also made by Baroness Symons and Dr Afnan Al-Shuaiby who delivered the opening speech and welcomed everyone to the celebration. During the evening Dr Afnan Al-Shuaiby presented His Majesty King Abdullah with an award in appreciation and gratitude for all his support for the Chamber and in recognition of his achievements in the domestic, regional and global fields.

H E Khaled Al Duwaisan and Dr Afnan Al-Shuaiby

His Majesty King Abdullah of Jordan and Dr Afnan Al-Shuaiby

ECONOMIC FOCUS CHAMBER NEWS

H E Hatem Atallah, Tunisian Ambassador

Dr Afnan Al-Shuaiby and HRH Prince Andrew The Duke of York

H E Khalid Rashid Al-Hamoudi Al-Mansouri, Qatar Ambassador

Dr Afnan Al-Shuaiby and HM King Abdullah

H E Inaam Osseiran, Lebanese Ambassador

H E Alice Thomas Samaan, Bahrain Ambassador

Her Highness Princess Lalla Joumala, Moroccan Ambassador

Baroness Symons, Rt Hon Philip Hammond, HM King Abdullah

ARAB-BRITISH CHAMBER OF COMMERCE

H E Abdulrahman Ghanem Almutaiwee, UAE Ambassador

H M King Abdullah of Jordan

Baroness Symons of Vernham Dean

Rt Hon Philip Hammond MP, Secretary of State for Defence

ECONOMIC FOCUS CHAMBER NEWS

FIRST UAE-BRITISH BUSINESSWOMEN FORUM - 2 DEC 2011

The Arab-British Chamber of Commerce was pleased to host the first UAE-British Businesswomen Forum. This event, coinciding with the UAE’s 40th Anniversary National Day celebrations, was organised in partnership with the Emirates Businesswomen’s Council, which itself is supported by the Federation of the UAE Chambers of Commerce and Industry. The event was a distinguished gathering of specially invited guests from the UK and UAE who came together to explore new opportunities for cooperation. Dr Afnan Al-Shuaiby, Secretary General & CEO of the Arab-British Chamber of Commerce, stated that she hoped the forum would mark the start of new opportunities

for cooperation between British and Emirati business women. She stated that the Chamber was delighted to host the event and strongly endorsed the initiative which sought to encourage dialogue and cooperation between businesses in the UK and the UAE. “Its success could only bring benefits to all involved,” Dr Afnan Al-Shuaiby told delegates. “The launch today of the first UAE and British Business Women Forum,” she continued, “fulfils a commitment to enhancing relations and co-operation with regional and international organisations and associations to enable Emirati women to benefit from the exchange of ideas, expertise and information with the aim of developing women’s business

activities in many different sectors.” The forum was held under the patronage and in the attendance of H H Sheikha Dr Hind bint Abdul Aziz Al Qassimi, Chair of the UAE Businesswomen’s Council. The forum provided a unique networking platform for local and international organisations and prominent business women and aims to assist Emirati women to further their businesses. The event’s sponsor ZonesCorp was represented by the company’s Vice President for Marketing and Communications, Samer Alhaira, who was also one of the speakers at the opening session.

Mr Samer Al Haira, Vice President for Marketing and Communications, ZonesCorp. H E Abdulrahman Ghanem Almutaiwee, UAE Ambassador. Dr Afnan Al-Shuaiby

H H Sheikha Dr Hind bint Abdul Aziz Al Qassimi, Chair of UAE Businesswomen’s Council and Mr Edward Oakden, former Ambassador to UAE and now Managing Director, Sectors Group, UKTI

ARAB-BRITISH CHAMBER OF COMMERCE

H E Amar Abba, Algerian Ambassador

ALGERIA AMBASSADORIAL ROUNDTABLE - 7 FEB 2012

The Chamber held its first ambassadorial business roundtable of 2012 on the theme of investment in Algeria with guest of honour His Excellency Mr Amar Abba, the Algerian Ambassador to the United Kingdom and Northern Ireland. The roundtable identified new opportunities for British firms in education and training, mining, agriculture, construction, tourism, transport, renewable energy and power supply. Representatives from sectors such as these were among the event’s specially invited participants. Dr Afnan Al-Shuaiby, the Secretary General & CEO of the Arab-British Chamber of Commerce, opened by thanking the Ambassador for agreeing to introduce the discussion which, she said, was focused on one of the largest and most important markets in the Arab World. H E Mr Amar Abba addressed four main points: the many assets that Algeria possessed, the challenges that it faced to modernize and diversify its economy, its efforts to meet these challenges and the growing significance of Algeria-UK relations. Algeria had a strong economy with reserves currently standing at $176 billion and no external debt since 2006, the Ambassador said. As such the country’s own financial resources were sufficiently strong to fund its investment plans which included notably significant investments in the development of solar energy where Algeria was recognized

as having enormous potential. Algeria was a market of 36 million largely young and educated people, which gave it the largest population in the Maghreb and its location in close proximity to the European continent was another important asset. The Ambassador said that his country enjoyed a reputation for relative stability in a region that had been undergoing enormous changes. He defined Algeria’s main challenges as achieving diversity and modernizing its economy to lessen its dependency on oil and gas exports. The Ambassador outlined the national development plan for the years 2010-2014 which amounted to public spending of $286bn. He predicted that UK firms would be able to make significant contributions to Algeria’s economic development in all sectors. Current investment plans were centred on developing the non-oil sector, improving infrastructure such as roads and railways, hospitals, international hotels and house building and upgrading the country’s skills base. The country’s industrial sector needed to be revived, the Ambassador said, while tourism had been neglected in the past, but was now seen as offering major potential given that its coastline, deserts and ancient heritage sites were still mainly unexplored. The provision of English language education

was a priority for Algeria today and it was cooperating with UK universities to provide the skills needed for competing in the global economy. Despite the determination to diversify, energy remained the core of the country’s economy and Algeria was a major supplier of oil and gas to Europe. Investors would find many opportunities in the upstream and downstream areas of the energy sector. Private sector involvement was also needed as Algeria sought to develop new sources of energy and enhance its capacity. LNG, water desalination and petrochemicals were all attractive to investors and partners. Algeria’s priorities were accessing new technologies and markets, creating sustainable employment and achieving diversification. Potential partners would derive benefit by showing that they could satisfy some of these priorities. He commended the role of the Chamber and other organizations engaged in the promotion of UK-Algerian business cooperation. The event successfully in demonstrated that Algeria, with its ambitious spending plans and improvements in its investment climate, was an increasingly attractive market and British investors simply could not afford to ignore it. The Chamber remains ready to help companies seeking to achieve success in the Algerian market.

ARAB-BRITISH CHAMBER OF COMMERCE

EXPORTING TO THE MIDDLE EAST How to comply with export and import standards and achieve smooth customs clearance. Many countries within the Middle East have put stringent requirements in place to ensure their consumers are protected from sub-standard products and goods. Product Conformity Programmes have been implemented to verify safety and performance of goods. Traders exporting to these countries need to be fully aware of the requirements since failure to comply with them can be costly, leading to potential delays in Customs clearance, financial penalties or even goods being returned to the port of origin. Intertek has been working in the region for many years and as an Accredited Certification Body we have been assessed and approved by the applicable government departments in the importing countries meaning that we are competent to test and certify your shipments and our certificates are recognised and trusted by Customs. The Kingdom of Saudi Arabia is one such country that has implemented a Product Conformity Programme through the Ministry of Commerce and Industry (MoCI). Exporters are required to obtain a Certificate of Conformity (also referred to by exporters as a SASO Certificate). The PCP is mandatory for all goods exported to Saudi Arabia except for: l l l l

Medical equipment Medical products Food Military products

The Saudi Food & Drug Authority has recently announced that all mouthwash and similar products containing alcohol are banned. New vehicles also require a Certificate of Conformity. Various labelling requirements apply such as Country of Origin, Energy Efficiency and language requirements for instructions. Electrical regulations include acceptable voltages with 127V products being banned from 21 May 2012, mandatory criteria also apply to plugs and sockets.

The Saudi Arabia programme is stringently enforced. The Public Authority for Industry of the State of Kuwait (PAI) has implemented guidelines to verify the conformity of all ‘Regulated Products.’ These guidelines are diligently enforced, and form the Kuwait Conformity Assurance Scheme (KUCAS). The scheme is a group of procedures carried out by PAI to verify the conformity of all ‘Regulated Products’ to Kuwait’s Technical Regulations on imported and domestic products. The scheme in brief: l All consignments of imported goods

which contain regulated products must be accompanied by a Technical Inspection Report (TIR).

l The TIR is required to ensure smooth

Customs clearance of shipments in Kuwait.

l The TIR confirms that the products

comply with the relevant Kuwait technical regulations and approved international/ regional/national standards.

l The authorities in Kuwait may take random

samples from imported consignments to verify compliance.

Regulated products include, but are not limited to, electrical toys, domestic and commercial electrical products, vehicles, melamine dinnerware, chemicals and building materials. Recently added are vehicle spare parts: Car Batteries, Brake Pads and Oil Filters.

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

Egypt The Ministry of Industry and Foreign Trade in Egypt have recently issued two decrees which

come into effect from 15th June 2012 These decrees implement new import regulations for Textiles, Garments, Carpets, Footwear and Bags. Compliance to these regulations involve obtaining Certificate of Inspection (CoI) for each shipment containing these regulated products. The Certificate of Inspection can only be issued by an ISO 17020 accredited inspection body, approved and registered by GOIEC. Regulated product consignments have to be verified for compliance to relevant Egyptian sanctioned standards and essential requirements. The compliance verification process will involve physical inspection of the consignment and if necessary, sample selection for testing purposes or submission of test reports. Intertek is registered and approved by GOIEC to issue the Certificate of Inspection and can also carry out any required testing. Having issued more that 1.5 million test reports and certificates to exporters worldwide, Intertek is best placed to help companies ensure that they comply with both export and import requirements. For the very latest in regulatory changes and additions visit www.intertek.com/government/ regulatoryupdates

ECONOMIC FOCUS

NEW MEMBERS OF THE CHAMBERS WE WELCOME THE FOLLOWING COMPANIES TO MEMBERSHIP OF THE ARAB-BRITISH CHAMBER OF COMMERCE... Aldelia Limited 1 Lyric Square Hammersmith LONDON W6 0NB T: +44(0)20-3427 5913 E: Emiliano.Russo@aldelia.com Contact: Mr Emiliano Russo Finance Director Oil and Gas mining, staffing, projects management, health, safety and environment, construction engineering and recruitment Anglia Ruskin University Cambridge Campus East Road CAMBRIDGE CB1 1PT T: +44(0)845-1965 993 International +44(0)1223-363 271 E: suparna.ghose@anglia.ac.uk www.anglia.ac.uk Contact: Ms Suparna Ghose Skills Development Consultant University Airfins Limited Unit 40 Metro Centre Dwight Road WATFORD Herts WD18 9SS T: +44(0)1923-212153 F: +44(0)1923-212154 E: tparish@airfins.com www.airfins.com Contact: Mr Tony Parish Business Development Manager Design, manufacture, supply, service, consulting for air cooled heat exchangers Aiyash Contracting Limited 411-421 Coventry Road 1st Floor, Small Heath BIRMINGHAM West Midlands BI0 0TH E: aiyash@live.com www.aiyash.com Contact: Mr Sami Madloom Chairman of the Board of Directors Contracting and trade of construction material and investment in the housing sector in the Middle East and Iraq: urban planning and development; real estate development; alternative construction materials; alternative energy; housing and infrastructure projects; and consulting and studies.

Arabian Oud 435-437 Oxford Street LONDON W1C 2PL T: +44(0)20-7491 3333 F: +44(0)20-7355 1817 E: hm@arabianoud.co.uk www.arabianoud.co.uk Contact: Mr Mohammad Hamdan Director Perfume retailer Badley Ashton & Associates Limited Winceby House Winceby HORNCASTLE Lincolnshire LN9 6PB T: +44(0)1507-588 353 F: +44(0)1507-588 345 E: meriembertouche@badley-ashton.co.uk www.badley-ashton.co.uk Contact: Ms Meriem Bertouche Regional Business Leader Reservoir geosciences consultancy providing integrated services which include: petrography reservoir quality analysis, core description, borehole image interpretation and reservoir scale structural characterisation.

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Barnes Roffe LLP 3 Brook Business Centre Cowley Mill Road UXBRIDGE Middlesex UB8 2FX T: +44(0)1895-256423 F: +44(0)1895-274107 E: l.cooper@barnesroffe.com www.barnesroffe.com Contact: Mr Michael Parkinson Partner Accountants

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Blenheim Capital Services Level 2, 3 Sheldon Square LONDON W2 6HY T: +44(0)20-7266 7010 F: +44(0)20-7266 7058 E: info@blenheimcs.com www.blenheimcapital.net Contact: Mr Jason Rankin Executive Assistant to the Chairman and the CEO Provider of offset consulting, advisory and transaction services to governments and corporations around the world

Cambridge Regional College Science Park Campus Kings Hedges Road CAMBRIDGE Cambridgeshire CB4 2QT T: +44(0)1223-226318 F: +44(0)1223-226391 E: awakefield@camre.ac.uk; eivanova@camre.ac.uk www.camre.ac.uk Contact: Dr Amina Wakefield Head of International Office Further education consultancy and training provision Cultural Innovations Limited Unit 13-15 Quayside Lodge William Morris Way LONDON SW6 2UZ T: +44(0)20-7731 4396 F: +44(0)20-7731 9442 E: info@culturalinnovations.com www.culturalinnovations.com Contact: Mr Martin Best CEO and Executive Director Cultural Innovations works with clients worldwide to define, develop and deliver cultural projects, including museums, exhibitions, science centres, art galleries, heritage sites, visitor centres and themed attractions Depa UK 4 River Court, Brighouse Road Riverside Park Industrial Estate MIDDLESBROUGH TS2 1RT T: +44(0)1642-309154 F: +44(0)1642-247211 E: paul.austin@depa.com www.depa.com Contact: Mr Paul Austin CEO Operations Global interior solutions Easy Hajj Limited 62 Bell Street LONDON NW1 6SP T: +44(0)20-7724 4040 F: +44(0)20-7724 2414 E: hajj@easyhajj.com www.easyhajj.com Contact: Dr Mousab Adel Managing Director Travel agent specialist in Hajj and Umrah El-Sawy Travel Limited 149 Park Road, St Johnâ&#x20AC;&#x2122;s Wood LONDON NW8 7HT T: +44(0)20-7586 7979 F: +44(0)20-7586 5747 E: info@elsawy.com www.elsawy.com Contact: Mr Prince Islam El-Sawy Director Hajj and Umrah, corporate travels and legal work for Egypt and visa services

ARAB-BRITISH CHAMBER OF COMMERCE

European Scanning Centre 68 Harley Street LONDON W1G 7HE T: +44(0)20-7436 5755 F: +44(0)20-7436 5756 E: tim.walker@europeanscanning.com www.europeanscanning.com Contact: Mr Tim Walker Commercial Director UKâ&#x20AC;&#x2122;s leading CT (computed tomographic) medical imaging centre European University Institute Jabriya KUWAIT T: +965 2262 1332 F: +965 2262 1332 E: aiq-uk@hotmail.com www.aiq-uk.net Contact: Mr Saleh Al-Enezi Secretary General Education and training Fenton Whelan Limited 22 Upper Grosvenor Street LONDON W1K 7PE T: +44(0)20-7629 2669 F: +44(0)20-7629 6513 E: info@fentonwhelan.com www.fentonwhelan.com Contact: Mr James Van Den Heule Director Invest into develop the most luxurious homes in super-prime Central London. Hajj People Limited Vittesse House, 6 Estate Way LEYTON E10 7JW T: +44(0)20-8558 1069 E: mohsin@hajjpeople.com www.hajjpeople.com Contact: Mr Mohsin Tutla Director Event organisers Hamdi Consulting 131 Avenue Hassanii 6th Etage Casablanca MOROCCO T: +212 5 260245 F: +212 5 261304 E: contact@hamdiconsulting.com www.hamdiconsulting.com Contact: Mr Abdelkrim Hamdi President Specialists consulting, Audit, Corporate Tax and Corporate Finance. H & S Notary Practice Unit 4 Palace Court 250 Finchley Road LONDON NW3 6DN T: +44(0)20-7433 3338 F: +44(0)20-7435 8889 E: legalisation@notarypractice.com www.notarypractice.com Contact: Mr Hesham Sharkawi Director Notaries Public

Horizon Oil (UK) Limited 22 Chavley Road SLOUGH Berkshire SL1 2PJ F: +44(0)15-1733 1021 E: raja@horizonoiluae.com www.horizonoiluae.com Contact: Mr Raja Khan Director Manager Commodity trading in oil and gas ICS Financial Systems Limited The Courtyard 14A Sydenham Road CROYDON Surrey CRO 2EE T: +44(0)20-8681 5421 F: +44(0)20-8688 1673 E: claire.headman@icslondon.com www.icsfs.com Contact: Ms Claire Headman Assistant Software solutions Identification Dynamics Ltd Pleck End House Marnhull STURMINSTER NEWTON Dorset DT10 1NY T: +44(0)1285-740543 E: richard.wallis@iddynamics.com www.iddynamics.com Contact: Mr Richard Wallis Managing Director Suppliers of thermal imaging cameras, software for security and surveillance applications, emergency floodlighting equipment Intellego Health 6 Snow Hill LONDON EC1A 2AY T: +44(0)8456-808 818 / D+44(0)20-7002 7654 F: +44(0)8456-808 828 E: info@intellegohealth.co.uk www.intellegohealth.co.uk Contact: Mr Keith Hackett Director Bespoke management resourcing solutions to the healthcare sector London Central Portfolio Limited (LCP) 116 Seymour Place LONDON W1H 1NW T: +44(0)20-7723 1733 F: +44(0)20-7723 1744 E: naomi.heaton@londoncentralportfolio.com www.londoncentralportfolio.com Contact: Ms Naomi Heaton Chief Executive Central London residential investments advisor London Medical 49 Marylebone High Street LONDON W1U 5HJ T: +44(0)20-7467 5470 F: +44(0)20-7467 5471 E: zorica.wiley@londonmedical.co.uk www.londonmedical.co.uk Contact: Miss Zorica Wiley Business Development Executive Healthcare and medical clinic

Louvre Trust Corporation (UK) Limited 2nd Floor, Grosvenor House 18-20 Ridgway Wimbledon LONDON SW19 4QN T: +44(0)20-8947 5279 F: +44(0)870-458 0698 E: chris.woodward@louvregroup.com www.louvregroup Contact: Mr Chris Woodward Director Wealth management, trust and company administration Mala Maintenance Limited 128 Petherton Road LONDON N5 2RT T: +44(0)20-7359 3225 F: +44(0)20-7359 4672 E: mala@mala.co.uk www.mala.co.uk Contact: Mr Theo Mantey Operations Director Mechanical and electrical maintenance Marks & Clerk LLP 90 Long Acre LONDON WC2E 9RA T: +44(0)20-7420 0000 F: +44(0)20-7836 3339 E: london@marks-clerk.com www.marks-clerk.com Contact: Mr Edward M Round Partner Patent and trademark attorneys Medicapp Corporation Limited 288 Bishopsgate LONDON EC2M 4QP T: +44(0)844 855 9160 F: +44(0)844-855 9161 E: rod.richardson@medicapp.com www.medicapp.com Contact: Mr Rod Richardson Chairman As a key technology provider within the rapidly emerging Telehealth space, MedicApp continues to develop its reputation for delivering cost effective solutions to healthcare providers using mobile communications as a reliable, rapid response ‘bridge’ between the trust and the patient Mercer Maurice Energy Solutions Limited Thamesgate House 110 High Street MAIDENHEAD Berkshire SL6 1PT T: +44(0)1628-675 225 F: +44(0)1628- 675 226 E: enquiries@mercermaurice.com www.mercermaurice.com Contact: Mr Shady Maurice Director Design, supply and project management for HVAC installations in African and Middle Eastern markets

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Michael Page International (UAE) Limited Al Fattan Currency House Tower 1, Level 2, Office No. 202 Dubai International Financial Centre PO Box 506702 Dubai UNITED ARAB EMIRATES T: +971 4 709 0300 F: +971 4 386 1710 E: jakeolds@michaelpage.com www.michaelpage.co.uk Contact: Mr Jake Olds Regional Director Provision of recruitment services Oberthur Fiduciare (UK) Limited 3-4 Charles Street LONDON W1J 5DD F: +44(0)20-7900 2060 E: john_black@btinternet.com Contact: Mr John Black Director of Sales Security and identification solutions and services based on smart card technologies for mobile, payment, transport, digital TV and convergence markets; specialist in the production of banknotes, cheques and other security documents; also manufactures traditional and electronic secure identity documents; and intelligent cash protection solutions Office Solutions (SE) Limited 2 Coney Hall Parade Kingsway WEST WICKHAM Kent BR4 9JB T: +44(0)20-8462 6665 F: +44(0)20-8462 6422 E: officesolutions@btconnect.com www.officesolutionsltd.co.uk Contact: Mrs Sally Alexandra Director Suppliers of office stationery digital printing and litho printing Over The World 117 Carlyon Road WEMBLEY Middlesex HAQ 1HU E: bazcom4@hotmail.com www.over-theworld.com Contact: Mr Abdulkarim Albaz Director Export Page Corporate Investigations Limited 5th Floor, 34 St James’s Street LONDON SW1A 1HD T: +44(0)20-7930 9200 F: +44(0)20-7930 9201 E: info@pagegroupltd.com www.pagegroupltd.com Contact: Mr John Carnt Manager Offers a spectrum of integrated risk management services within investigations, training and security.

Peerless Europe Limited Cardinals Court, Bradford Street BRAINTREE Essex CM7 9AT T: +44(0)1376-556030 F: +44(0)1376-556059 E: helenbarton@peerlesseurope.com www.peerlesseurope.com Contact: Ms Helen Barton HR Manager / PA to MD Design and supply of separation and filtration, waste water treatment, environmental systems and industrial silencing equipment to the gas, petro-chemical and power industries Portland PR Limited 1 Red Lion Court LONDON EC4A 3EB T: +44(0)20-7822 1749 E: Zaid.Belbagi@portland-communications.com www.portland-communications.com Contact: Mr Zaid Belbagi Business Development Manager for the MENA Independent consultancy with international reach; strategic communications, public affairs, international affairs and digital support for leading brands and government Prestige Ticketing Limited 32nd Floor, 25 Canada Square LONDON E14 5LB T: +44(0)20-7516 1612 E: tony.barnard@prestigeticketing.london2012. com; sales@prestigeticketing.london2012.com www.prestigeticketing.london2012.com Contact: Mr Tony Barnard Marketing Director Corporate hospitality at London 2012 Olympic and Paralympics Games Radisson Blu Portman Hotel 22 Portman Square LONDON W1H 7BG T: +44(0)20-7208 6000 F: +44(0)20-7208 6001 E: geeta.defoe@radissonblu.com www.radissonblu.com Contact: Mrs Geeta Defoe Assistant Director of Sales 4 Star luxury hotel providing beds for overnight stay and facilities for meetings and events Ridgway Machines Limited Bridge Works, Leicester Road ANSTEY Leicester LE7 7AT T: +44(0)116-235 3055 F: +44(0)116-235 3057 E: shunt@ridgway.eng.com; RMarjoram@ridgwayeng.com www.ridgwayeng.com Contact: Mr Stephen Hunt Managing Director Designs and manufactures a wide range of standard and special purpose machines to customers’ specifications, including coil taping machinery, coil manufacturing equipment, cable and conductor taping lines, RTP for Oil and Gas and SRTP taping machines and special purpose machinery

SBG (UK) Limited 19 Berkeley Street LONDON W1J 8ED T: +44(0)20-7629 3779 F: +44(0)20-7408 0863 E: aalmihdar@sbguk.com Contact: Mr Ahmad Almihdar Finance Executive Banking and finance, construction, international marketing and PR SO MA CI Luxury Building, Third floor A4 Les Berges du Lac, Tunisia, 1053 TUNIS T: +216 75 279 211/+216 71 965 161 F: +216 75 279 025/+216 71 965 735 E: ridat@tunet.tn Contact: Mr Mansour Mohamed Bayrn Manager Food exporters 3Y Logistic & Projektbetreuung GmbH Untermainkai 30 60329, Frankfurt am Main GERMANY T: +49(0)69-269 58 66 11 F: +49(0)69-269 58 66 20 E: amar@3y-gmbh.de Contact: Prof Mohamad Amar General Manager International trading, machinery production lines and aircraft Trans Global Projects Limited Tubs Hill House, London Road SEVENOAKS Kent TN13 1BL T: +44(0)1732-744 400 F: +44(0)1732-744 401 E: SWillingham@tglobal.com www.tglobal.com Contact: Mr Geoff Heath Administration and Finance Manager Professional expertise in global logistics management for a range of related activities Twintec Limited Unit 1, Prospect Park Valley Drive, Rugby Warwickshire CV21 1TF T: +44(0)1788-567722 F: +44(0)1788-567700 E: rwaugh@twintec.co.uk www.twintec.co.uk Contact: Ms Ruth Waugh Marketing Manager Design and construction concrete industrial floor slabs. The world’s leading producer of joint less steel fibre reinforced (SFRC) industrial concrete floors Winzor Pharmaceuticals UK Ltd 100 Victoria Road Middlesex HA4 0AL F: +44(0)1895-639 022 E: info@winzorpharmaceuticalsuk.com www.winzorpharmaceuticalsuk.com Contact: Customer Suppot Team Medical production, export & distribution

ARAB-BRITISH CHAMBER OF COMMERCE

MEMBER PROFILE - TECHNOBELL LTD

Technobell is a well-established engineering company specialized in the process and project design, acting in various fields: GRP production technology: equipment for the production of glass reinforced polyester (GRP) pipes; glass reinforced epoxy (GRE) pipes; glass reinforced polyester (GRP) tanks; testing pipes. Chemical process technologies: polyester resins plants, phthalic anhydride (PA) and catalysts for production of phthalic anhydride plants; maleic anhydride (MA) plants; plasticizers (DOP) plants; polyvinyl acetate dispersions (PvAc) plants; and crude oil / lube oil refinery and petrochemical plants Technobell is also a producer of tailor made ortophthalic, isophthalic and vinylester resins. The company’s activities are commercial, financial and technological.

Commercial Commercializing chemical products on EU market; Production of Polyester resins.

Financial Supporting investments and Projects mainly in the technological sphere. Technological: Chemical processes; Equipment supply; and Glass Reinforced Plastic production technologies.

Technobell’s administrative office is located in the UK with representative/associated offices located worldwide variously in Brazil, Croatia, China, Italy, Libya, the Russian Federation, Slovenia and the UAE. The company is specialized in engineering, commerce and turnkey basis projects in the field of composite pipes and tanks. It offers feasibility studies, up-to-date design, construction, assistance to erection, start-up, training, running assistance, development of new composites products and know-how of GRP, GRE pipes and tanks production lines.

CONTACTS TECHNOBELL Ltd Talbot House 204/226 Imperial Drive Harrow HA2 7HH T: +447900080990 E: technotechnobell-ltd.com www.technobell.info/company-overview. html

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MEMBER PROFILE - SGS

Essential Services for Exporters SGS is the world’s leading inspection, verification, testing and certification company, recognised as the global benchmark for quality and integrity. It has been in business for over a hundred years and today employs more than 67,000 people in its network of over 1,250 offices and laboratories worldwide. In this ABCC member profile, SGS introduces its wide ranging services for exporters. SGS is constantly looking beyond customers’ and society’s expectations in order to deliver market leading services wherever

they are needed. As the leader in providing specialised business solutions that improve quality, safety and productivity and reduce risk, we help customers navigate an increasingly regulated world. Our independent services add significant value to our customers’ operations and ensure business sustainability. Established in 1878, the company started by offering agricultural inspection services to grain traders in Europe. From those humble beginnings, SGS grew in size and scope as its agricultural inspection services spread around the world. On 19 July 1919, the company adopted the name of Société Générale de Surveillance (today it is known

simply as SGS). During the mid-20th century, SGS began to diversify and started offering inspection, testing and verification services across a variety of sectors, including industrial, minerals and oil, gas and chemicals. The current structure of SGS consists of 10 business segments operating across 10 geographical regions and was established in 2001. From our beginnings as a grain inspection house, we have steadily grown into our role as the industry leader. As a company we have done this through continual improvement and innovation and through supporting our customers’ operations by reducing risk and improving productivity.

ARAB-BRITISH CHAMBER OF COMMERCE

The 10 SGS business segments are as follows: l l l l l l l l l l

Agricultural Services Automotive Services Consumer Testing Services Environmental Services Governments & Institutions Services Industrial Services Life Science Services Minerals Services Oil, Gas & Chemicals Services Systems and Services Certification.

SGS - Governments & Institutions Services The SGS Governments & Institutions Services division provide a wide range of solutions, aimed at ensuring compliance with regulatory requirements and enhancing government revenue, while facilitating trade and supporting efficiency, good governance and sustainable development. In recent years we have developed a portfolio of innovative services that draw on our core skills, including price verification, independent monitoring and validation of declared information, coupled with new technologies and IT systems. One of the main services offered by SGS Governments & Institutions Services is Product Conformity Assessment (PCA) services, with longstanding PCA programmes in place for Algeria, Kenya, Kuwait, Nigeria, Saudi Arabia, Syria and, more recently, Botswana and Iraq. SGS Governments & Institutions Services also offer Pre-shipment inspection (PSI) services for exports to the following countries: Angola, Burundi, Cameroon, Haiti, Indonesia, Mauritania, Mexico, Uzbekistan and Zanzibar. SGS Governments & Institutions Services work closely with shipping agents & freight forwarders, the British Chambers of Commerce, the Arab-British Chamber of Commerce and various trade organisations such as UKTI and the British International Freight Association; offering advice and support in line with PCA requirements.

What is Product Conformity Assessment? Product Conformity Assessment services provided by SGS ensure that the safety and overall performance of shipped goods meet the required standards as defined by the relevant regulatory authority in the country of import. The benefits of these programmes to both the government and citizens in the importing country are: l Increased ability to monitor the quality of

goods entering the country l Assistance in reducing the incoming flow of sub-standard and counterfeit goods

l Greater assurance that imported goods

are not harmful to the public or environment.

SGS Governments & Institutions Services will ascertain the quality of products by following testing, inspection and documentary verification procedures against international or local standards. Once these procedures have been completed and the products in question are shown to meet the requirements of the importing country, SGS can then issue a document as proof of compliance such as a Certificate of Conformity (CoC). This document is then submitted as part of the paperwork for the shipment and used for customs clearance in the country of import.

Product Conformity Assessment in the Middle East With the ever present threats and risks associated with the growing international trade of sub-standard and counterfeit goods there is a growing need for international governments to ensure that imported goods are genuine and of a suitable quality. Consequently, PCA programmes are growing in popularity, especially throughout North Africa and the Middle East with programmes in place in Algeria, Kenya, Kuwait, Nigeria, Saudi Arabia and more recently, Iraq. SGS Governments & Institutions Services is mandated to provide inspection, testing and certification services in line with each of these programmes. The SGS Governments & Institutions Services (GIS) department has a large, well established customer base spread across multiple industry sectors, including engineering, aerospace, oil & gas, construction, consumer electronics, clothing, food and automotive. We have successfully assisted companies in all sectors to comply with the PCA requirements relevant to their shipping destination. As a direct result of working with such a wide range of customers, SGS has gained extensive knowledge of each industry sector and is able to assist with product specific requirements. Being part of a large global network, the GIS department in the UK has the distinct advantage of being able to share knowledge with other SGS business lines and global affiliates, creating greater understanding within the SGS Group. At SGS we are very committed to customer satisfaction and will work hard to exceed our customers’ expectations. We are a solution focussed service provider that utilises experience along with key market and industry knowledge in order to solve complex scenarios that may arise when assisting our customers in complying with PCA requirements. Details of the PCA programmes in operation throughout the Middle East:

Saudi Arabia: Regulatory Authority – The Ministry of Commerce & Industry Since September 2005 a certificate of conformity has been mandatory for clearing goods upon arrival at Saudi Arabian Customs. Consignments that are shipped without a certificate of conformity will not meet the requirements of the conformity assessment programme in Saudi Arabia and will be rejected by customs. It is therefore advised that exporters obtain a certificate of conformity before the consignment leaves the county of origin. SGS is fully authorised by the Ministry of Commerce & Industry (MoCI) in Saudi Arabia to issue certificates of conformity as required under the programme and have assisted many exporters in conforming to the requirements of the programme not only in the UK, but worldwide. The majority of goods are regulated under the Saudi Arabian conformity assessment programme; however there are a number of exemptions: l Imports of the diplomatic corps,

consulates, international organisations and members of the diplomatic and consular corps accredited by the government. l Imports for all sectors of the military forces, such as ammunitions, arms, equipment, military means of transport and parts thereof and any other materials. l Imports of the philanthropic societies “charities”. Further to the exemptions there are also some goods that are prohibited from import into Saudi Arabia: l Live swine meat, fat, hair, blood, guts,

limbs and all other products of swine.

l Dogs other than hunting dogs, guarddogs

l l

l l l

l l l l

or guide dogs for the blind, which should be accompanied by a certificate issued by a competent authority in country of export, which is duly qualified by the Saudi Arabian embassy and stating that the dog to be admitted is a hunting dog, guard dog or guide dog for the blind, in addition to submitting to the veterinary quarantine. Frog meat Narcotics of all types, forms and descriptions Animal or vegetable raw natural organic fertilizer Goro nut Betel Alcoholic beverages and intoxicants of all kinds. Tobacco snuff – tobacco “sawika” Asbestos and products thereof Sarin toxic gas Industrial waste ad hazardous refuse

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l l l l l

l l

l l l

l l

Fireworks Used and rethreaded tyres The Holy Quran Saudi Arabian Stamps Greeting cards containing electronic circuitry Coupons of hadi (sacrificial animals) Blank invoices of foreign companies abroad Security car radar detection equipment Satellite internet receiver Apparatus releasing sounds of police car sirens or of some animals Damaged vehicles and right hand drive vehicles Two, three and four wheeler children’s motor cycles or vehicles Binoculars in which an electronic circuit is used, directly projecting a red light on a target Revolvers and pistols in the shape of mobile phones, lighters, pagers, pens or other pistols Remote Control airplanes and parts thereof Noise making pistols and guns and toy pistols similar in shape to real pistols Mummified animals All foodstuffs containing animal blood in their manufacturing Drink having the description of Zamzam All types of machines, equipment and tools for gambling or games of chance Kuwait and Iraq war leftover equipment and machinery

l Publicity material for cigarettes of any

kind l Products polluted by radiation or nuclear dust.

Kuwait: Regulatory Authority – The Public Authority for Industry The Public Authority for Industry of the State of Kuwait (PAI) implemented the ‘Kuwait Conformity Assurance Scheme’ (KUCAS) on 17 June 2006. KUCAS is a set of procedures carried out by PAI to verify the conformity of all ‘regulated products’ to Kuwait’s technical regulations and approved standards. The key objective of KUCAS is to make sure that the all imported ‘regulated products’ meet the mandatory quality, safety, and security requirements of the Kuwaiti technical regulations and standards approved by PAI. SGS fulfils all of the qualification criteria set for the accreditation of certification and inspection bodies and works in close partnership with PAI. SGS are approved by PAI for the issuance of both Technical Inspection Reports (TIR) and Technical Evaluation Reports (TER) in line with KUCAS. Our extensive experience in managing conformity assessment programmes around the world enables us to offer efficient,

comprehensive & tailored solutions to provide assistance to exporters and make sure their shipments are in conformity with the KUCAS requirements. SGS offer the following services to help the exporters comply with the KUCAS requirements and obtain TIRs and TERs after completion of one or a combination of the following activities: l Physical inspection prior to shipment; l Sampling, testing and analysis in

accredited laboratories;

processes.

of the conformity of products against the requirements of the applicable technical regulations and standards (KSS, GSO, IEC).

l Audit of product manufacturing l Documentary check and assessment

Products Exempted from the programme are as follows: l Products holding the “Kuwait Quality

Mark”

Conformity Certificates”

embassies

commercial quantities

(for example, for display purposes)

government projects.

l New motor vehicles holding “GCC l Diplomatic cars imported by foreign l Products imported in small non- l Products imported on a temporary basis l Products that form part large industrial or

ARAB-BRITISH CHAMBER OF COMMERCE

Syria: Regulatory Authority – Syrian Arab Organisation for Standardisation and Metrology On 1 September 2010, the Syrian Arab Organisation for Standardisation and Metrology (SASMO) implemented the programme of assessment of product conformity and verification of price and origin. Under this programme, SASMO requires that imported “Regulated Products” are to be inspected for conformity to the relevant Syrian Standards (SS) or approved international standards at the country of export. Simultaneously, for all these goods imported into Syria, SASMO requires an independent verification of the prices of the goods and of their origin. The categories of products subject to the regulations include: l l l l l

Toys and Childcare Products Electrical and Electronic Products Vehicles and Automotive Components Building Tools and Equipment Chemical and Household Products.

Products exempted from the programme are as follows: l Personal effects l Automotive spare parts to be used for the

fabrication of motor vehicles.

This programme was put in place for the purpose of achieving the following objectives:

Product Conformity Assessment l Preventing the importation of substandard

products that can endanger Syrian public health, safety and the environment; l Detection of used parts and damaged equipment, which are not in useful conditions; and l Detection of illegal and dangerous goods.

Verification of Price and Origin l Assisting in the validation of prices and

origin and in the detection of wrong declarations of value and origin; l Provision of independent opinions on the value of goods and on whether the declared transaction values correspond to the price actually paid or payable; l Provision of independent opinions on the accuracy and reliability of the country of origin; and l Encouraging thus equal conditions for importers and a loyal competition in the market. SGS offers services that help exporters comply with the SASMO product conformity assessment requirements and obtain the Certificate of Conformity (CoC) after completion of the required actions, such as: l Physical Inspection Prior to Shipment; l Sampling, Testing and Analysis in

Accredited Laboratories; and l Documentary Check and Assessment of Conformity with the Requirements of the Applicable Technical Regulations and Standards (ISO, IEC, Codex, etc.).

CONTACTS For further information relating to any of the product conformity assessment programmes mentioned in this article, clarification of the regulated items, or for assistance in complying with the programmes, please visit www.uk.sgs.com or contact SGS: Rickie Cole - Sales Executive, SGS Governments & Institutions Services Tel: +44(0)1276 697 773 Email: rickie.cole@sgs.com Stephen Davies - Operations Manager, SGS Governments & Institutions Services Tel: +44(0)1276 697 865 Email: stephen.davies@sgs.com

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