Economic Focus 3

ECONOMIC FOCUS

ISSUE 1 VOL 8 SPRING 2013 MAGAZINE OF THE ARAB-BRITISH CHAMBER OF COMMERCE

> REPORTS IN ENGLISH AND ARABIC

> SETTING UP BUSINESS IN THE UAE

> FOCUS INTERVIEW: HSBC MIDDLE EAST

> FOCUS INTERVIEW: RAK FREE ZONE

> CYBER SECURITY AWARENESS

> BRITISH ECONOMIC SURVEY

> ASSESSING A COMPANY’S FINANCIAL HEALTH

> MOROCCO’S TOURISM STRATEGY

> CHAMBER ACTIVITIES

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

Focus Reports

Advertising Distinctive Publishing Tel: 0845 884 2340 ewan.waterhouse@distinctivepublishing.co.uk

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 ArabBritish Chamber of Commerce.

Focus Interview: Rak Free Zone

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Focus Interview: HSBC Middle East

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How to Judge a Company’s Financial Health

8

Quarterly UK Economic Survey

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Doing Business in the UAE

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Cyber Security Awareness for Business

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Vision 2020: Morocco’s Tourism Strategy

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Support for Exporters of UK Goods and Services

34

Chamber News Chamber Activities

72

Member Profiles

86

New Members

90

Arabic Section

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ISSN No: ISSN 1751-4339

Professional visa service established since 1978 and have been obtaining business and tourist visas on behalf of UK travellers.

For further information please contact: Email: info@princevisa.com Tel: 0207 7301207 www.princevisa.com 2nd Floor, 142 Buckingham Palace Road, London SW1W 9TR

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ECONOMIC FOCUS CHAMBER NEWS

Why Companies are Opting for RAK Free Trade Zone Economic Focus speaks to Ms Maryam Al Murshedi Al Shehhi, Deputy Director General, RAK Free Trade Zone.

Please introduce the free zone to our readers and describe your involvement with it.

Ras Al Khaimah Free Trade Zone (RAK FTZ) is one of the fastest-growing and most cost-effective free trade zones in the United Arab Emirates (UAE). 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.

It has established itself across Ras Al Khaimah at various specialised sites – the aim being to provide separate environments that suit the needs of different types of investors and industries. Currently, RAK FTZ has four fully operational ‘parks’ –Business Park, Industrial Park, Technology Park and Academy Zone – with plans to develop additional industry-specific sites in the future.

2012 marked RAK FTZ’s 12th year in operation, and in the past decade, it has gone from strength to strength, garnering accolades and awards along the way. Since its establishment in 2000, with only a handful of staff and a few offices, the free zone has grown by leaps and bounds and is now home to some 6,000+ active companies from 106 countries around the globe. It employs more than 350 full-time staff, operates business and promotion centres in

four locations in the UAE and has an expanding international presence, with liaison offices in Germany, Turkey, India and the USA. My involvement with the RAK FTZ started before the zone became operational. I have been involved from the beginning when it was just a project plan through to inception in terms of research, market analysis, and operational concept to the present day when I am currently the Deputy Director General of RAK FTZ.

What kinds of companies are registered with the free zone in terms of sectors and activities?

Since its inception in 2000, more than 6,000 small and medium sized companies have chosen RAK FTZ as the place to start their business in the UAE and the GCC. A vast majority of these companies represent the commercial sector (62%), followed by consulting (28%) and general trading (9%), and manufacturing (1%).

Which services and incentives attract companies to the free zone?

The free zone acts as a one-stop-shop.

This is particularly helpful to SMEs who are new in the market and do not know their way around yet. RAK FTZ supports

Maryam Al Murshedi Al Shehhi

them with every aspect of their new business venture. Starting from the business license, the facility and visa, continuing with recruitment services and support in networking (finding the right contacts) going to personal requirements such as childcare.

Another very appealing aspects to SMEs from the UK are our low cost market entry packages that enable small business or entrepreneurs to enter the UAE market for not only minimal but also calculable/easy to forecast cost.

For a UK company that is seriously considering setting up in RAKFZ, what are the first steps that it needs to take?

They should contact our European Office (by telephone: +44 207 256 4075; or email: europe@rakftz.com).

Our staff will then provide them with all the information and will help them in choosing the right set-up package or will arrange for a sight visit in Ras Al Khaimah. Once the company or the entrepreneur has decided to go ahead, they will support them with filling the paperwork. The actual license application and company set-up procedure is a very simple and straight forward process that usually takes only 1-2 weeks.

ARAB-BRITISH CHAMBER OF COMMERCE

RAK FTZ has been successful in attracting SMEs. But what specific services are available to SMEs in the free zone?

Because of our focus on small and medium businesses, RAK FTZ has partnered with several local banks that have programmes to assist SMEs such as HSBC, National Bank of Abu Dhabi, Emirates NBD, and Bank of Baroda.

These banks have their own solutions that are geared for small and medium size businesses to help them start their companies faster and with minimal procedures.

Other solutions that we offer SMEs are the following: l

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Our Mazeed Service Desk helps our clients with their requirement to start their business operation with less hassle especially for those who are new in the market. From finding out where to get insurance policy for their employees, printing business cards, setting up a website, where to buy furniture, finding a house, to helping them find schools for their children.

One of the most notable features that make RAK FTZ the hub for SMEs is the ease of registration; additionally, our environment sets us apart as do our value-added services, which are specifically designed to meet the needs of SMEs focused on operating in the emerging markets.

Our slogan ‘Home of Business’ says it all. When a client chooses RAK FTZ, we help them every step of the way. We offer them services that make them feel like they are in their own house.

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We offer flexible facilities with low start-up costs geared for SMEs.

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We offer them networking opportunities and B2B meetings with other RAK FTZ clients that can help them with their business or even just to learn from them.

Why should a company choose RAK FTZ rather than some of the more established free zones in the UAE? RAK FTZ has been operating for more than a decade. We are currently on our 13th year of operation so we are now considered as one of the established free zones in the region. Aside from the common free zone advantages, RAK FTZ has the following advantages. In addition, because our focus is directed to SMEs we have the tools and facilities geared specifically to this segment that other free zones do not specialise in such as our Mazeed Service, our customer focus and other advantages as listed below.

More than 6,000 SMEs from 106 Countries Since its inception in 2000, more than 6,000 small and medium sized companies have chosen RAK FTZ as the place to start their business in the Gulf.

Value-Added Services RAK FTZ offers a wide range of extra services that cater to the unique needs of its clients that includes IT, marketing & creative, procurement, human resources services and more, designed to assist clients with the many different steps involved in setting up and running a successful business.

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Award-Winning Services RAK FTZ’s accomplishments have been recognised by a number of wellrespected international business organisations such as the World Free Zone Convention for ‘Best Website Award’; Middle East Logistics Awards for ‘Best Emerging Free Zone’ in three consecutive years; by Supply Chain and Transport Awards for ‘Industrial Area of the Year’, and RAK FTZ’s PR & Media Department has been awarded Distinguished Honoree Medal in the Communications Department of the Year category at the 2011 International Business Awards (Stevie Awards). In 2012 RAK FTZ was awarded the Top Economic Zone in the World award for Digital Marketing, conferred by fDi Intelligence and Magazine, and Best Corporate in the UAE Award for Social Responsibility given by the Arab Organisation for Social Responsibility in collaboration with Tatweej Academy for Excellence.

International Reach and Multilingual Staff RAK FTZ is the first and only free zone with international promotion centres in India, Germany, Turkey and US that provides marketing and sales, client support and administrative services. Our multilingual staff from 39 countries can assist our international clients.

International Rankings Ranked One of the Top Five Middle East Free Zones of the Future 2011-2012 fDi Magazine rated RAK FTZ fourth best Middle East Free Zone of the Future and third for Best Economic Potential in the 2011-2012 ranking out of 115 free zones in the region.

Ranked One of the Top 50 - Global Free Zones of the Future 2012/13

continued page 6

ECONOMIC FOCUS CHAMBER NEWS

from page 5

How would you assess the growth prospects and potential of the free zone into 2013 and thereafter?

RAK FTZ’s growth has been on an upwards trajectory since its inception.

We have been averaging a 15% annual growth for the last five years. We see a continuous growth into 2013 and thereafter for the free zone. There are still a lot of potential that we can tap on and other markets that we have not even targeted yet. We have a positive outlook for the years to come and with the support of the Ras Al Khaimah Government, we know it is achievable.

In conclusion, what is your message to British business?

fDi Magazine rated RAK FTZ one of the top 50 Free Zones of the Future in the Global Free Zones of the Future ranking awards.

Are you satisfied with the performance of RAK FTZ in the years since its establishment?

We are very satisfied with the performance of RAK FTZ since its establishment. The growth of RAK FTZ has been phenomenal from 15 companies in 2000 to more than 6,000 companies currently registered and active within our different parks is testament to the success of the free zone. Aside from the growth, the accolades that have been accorded to us over the years and the trust of our clients and partners more than affirmed our slogan as the ‘Home of Business’ in this region.

What in brief are RAK FTZ’s future plans?

Given the current economic scenario, we will focus primarily on maintaining

the current pace and momentum of our growth. Further on, we have plans to diversify our activities to offer new and enhanced service products. We are also working on additional client-support initiatives.

We are also supporting the vision of the Emirate Ras Al Khaimah and focusing in attracting industries to come to the emirate including tourism, health and education.

As businesses know, many of the future growth markets are located in Asia and some even in Africa. As the European markets are quite saturated, companies from the UK should look for new growth markets that will ensure them business and profits in the medium and long term future. It is not easy to enter new markets and does usually take some time.

Located in the growing and stable GCC region the UAE is the ideal place to start entering new growth markets. RAK FTZ is the ideal home for SMEs and the starting point for market entries into the GCC, MENA and Asia.

For further information about the free zone see: www.rakftz.com

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ECONOMIC FOCUS CHAMBER NEWS

Diagnosing a Company’s Financial Health Zafar I Anjum, CEO, Corporate Research and Investigations LLC, explains why it is important to do an integrity check on any potential partner before conducting business.

It is always safest to assume that the information you are presented with on paper may not represent a true picture of a company’s financial health.

It is a proven fact that what may seem like gold in the international business arena could quickly turn to rust if the vetting of all the potential partners is not properly conducted. Here’s a case in point: An investor in the US was interested in purchasing a major jewellery operation headquartered in Dubai. The jewellery business had painted a rosy picture of itself on paper as one of the region’s most profitable companies, and had attracted the eye of the US investor. But an intensive due diligence investigation conducted by a professional background screening company based in Dubai and retained by the US investor told another story.

The investigating company’s examination unearthed numerous “red flags” that portrayed the business as not only a risky investment, but a potentially liable one at that.

In the course of the investigation, which involved international public records searches and local hands-on interviews to look into the financial liabilities of the jewellery operation’s directors and primary shareholders, it was discovered that the jewellery company was, in fact, in the midst of liquidation proceedings, a major factor not previously disclosed to the potential buyer in the US. Further

research conducted at a local level revealed that the company’s principals were involved in several bankruptcy cases and that the company had been issued warnings by local regulatory agencies concerning a host of collusive business activities.

Because these discoveries would have been nearly impossible to uncover using conventional Internet-based search methods, the potential buyer stood to lose his entire investment had it not been for the business background investigation conducted by the offshore screening firm.

It has become increasingly easy for both small and large organisations to open up international business channels and source business operations worldwide.

One area of increasing influence in the global economy is the Middle East, particularly the Gulf region. Emerging countries such as Saudi Arabia, Qatar, Bahrain and the United Arab Emirates have fast become inviting markets, attracting US, UK and European based businesses with their strong currencies, reduced barriers to entry, and lucrative opportunities.

While these opportunities do prove to be beneficial to companies seeking to extend their reach into global markets, they can also open the doors to predatory or other unscrupulous business practices orchestrated by the dishonest few who prey on otherwise legitimate organisations while creating legal

headaches and wreaking havoc for those companies down the road.

With that threat in mind, it is imperative that business organisations involved in global business dealings establish a comprehensive risk management programme that incorporates international background investigations, preferably conducted by a screening company not only experienced in business due diligence, but highly familiar with the specific laws, jurisdictions, business cultures and terrain of the “target” countries in which the potential business is being conducted.

Doing Business in the Middle East Most expatriate business professionals in the Middle East advise anyone contemplating expanding their business in this market to remember that it is not what you know that is important, so much as who you know. Therefore, a good investment in time and effort to understand the social and business culture across the Gulf region is essential to long-term business success.

Being well-versed in such areas as business etiquette, meeting protocol and negotiation techniques are crucial to properly establishing business partnerships that transcend stereotypes and improve communications.

It is the “who you know” part of the equation that dictates the need for a thorough risk management programme, which begins with a scrutinised understanding of the individuals and organisations with whom you are about to enter into business.

In this environment it is essential that businesses become completely familiar with the operations of potential international clients, business partners, distributors, agents, consultants and individuals before conducting offshore transactions, establishing formal corporate partnerships or committing to international investments.

Part of the risk management arsenal includes a “business partner integrity check”, to be conducted before dealing with businesses or governmental organisations, and which involves: l

Pre-merger, acquisition or pre-IPO transactions;

ARAB-BRITISH CHAMBER OF COMMERCE

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Entering into any newly formed joint venture;

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Engaging in new banking or business relationships;

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Employing, contracting or retaining a foreign business partner; or

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Reviewing regulatory compliance or corporate governance best practices.

While extensive in scope, this due diligence process requires a “boots on the ground” team to ensure that no stone is left unturned. Unfortunately, many screening and investigations firms lack the wherewithal to properly conduct overseas search. And when it comes to the Middle East - where a vast majority of jurisdictions lack the technology that makes online records searches globally obtainable - proper vetting of individuals, directors, shareholders (especially those connected to ruling families), companies and governing bodies can only be achieved through in-person interviews, access to local records and discussions with sources who are personally knowledgeable with the subject being investigated.

Due to the sheer remoteness of various regions in the Middle East, there are inherent risks of becoming involved with individuals or organisations that have associations with corruption, organised crime, terrorist financing or money laundering. Furthermore, a misunderstanding of local laws can lead to unenforceable contracts that can blindside a foreign-based operation.

Levelling the Playing Field For such reasons, major US, UK and European corporations rely on offshore screening companies that can provide the localised research required to properly vet foreign business partners in the Middle East. Such companies have access to the hard-copy records that aren’t available on the Internet, and have the ability to locate local sources that can aid in the investigation.

Armed with a familiarity of the terrain, an understanding of the culture, and an ability to acquire information, these homeland-based screening operations can easily uncover hard-to-obtain facts that can play a vital role in the business decision-making process.

And while foreign investigative companies know their terrain, they are

also highly educated in the local laws that govern business transactions (which could jeopardise your operation) as well as the anti-corruption laws that govern US, UK and EU-based businesses. This dual knowledge ensures complete compliance with FCPA regulations, the UK Bribery Act, anti-money laundering laws and other anti-corruption regulations to which companies must adhere.

The true value of retaining a foreign based investigative firm is that they can uncover information that may not necessarily be on the public record.

Such information can include potential involvement with: l

Business or government officials who regularly accept or require bribes;

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Third-party sources (suppliers, distributors, etc.) who regularly pay bribes to officials;

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Unscrupulous individuals who may be part owners of the businesses with whom you associate;

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Minority business owners who may also be government officials or have connections with such;

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Questionable individuals who may have recommended a third-party partner;

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Individuals who require payments in cash for services provided;

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Individuals who may not be experienced in providing the products or services you require;

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Individuals who request commissions that exceed normal commission levels; or

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Organisations or third-party sources those are not familiar with FCPA and other anti-corruption laws.

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the measurable insight to reduce business, legal and reputation risks when seeking partnerships in unfamiliar international markets. With the required capability to properly assess the background, integrity and character of those individuals and organisations with which global companies seek to affiliate, such offshore investigative companies can help organisations remain compliant with domestic and international regulations while maintaining high standards of business ethics and behaviour.

About the Author Zafar I Anjum, CFE, CIS, Int Dip (Fin Crime) is Chief Executive Officer of Corporate Research and Investigations LLC CRI Group, a global supplier of investigative, forensic accounting, business due diligence and employee background screening services. A Licensed and Incorporated entity of the Dubai International Financial Centre, CRI safeguards businesses by establishing the legal compliance, financial viability, and integrity levels of outside partners, suppliers and customers seeking to affiliate with your business. CRI Group maintains offices in Dubai, Islamabad, Lahore, Karachi, Singapore, Manila, Riyadh and the UK.

While association with such organisations or individuals may be termed as “business as usual” to many operations, such associations obviously conflict with FCPA regulations, EU laws and UK Anti-Bribery rules, and erode public confidence in the parties involved.

CONTACTS

Used as part of a comprehensive risk management programme, a thorough and professional offshore screening operation that provides due diligence, “business integrity checks” will provide

Email: zanjum@crigroup.com

Zafar I Anjum Tel: +971 4 3589884 Fax: +971 4 3589094

www.crigroup.com

MILITARY BUILDINGS

ARAB-BRITISH CHAMBER OF COMMERCE

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ADVERTORIAL

New Horizons for Rubb

complete with PVC membrane and a 21.5m x 7m Heli-Door at the hangar entrance. Each hangar includes two personnel doors in the closed gable ends and a porch in each sidewall. One of the aviation buildings has been fitted with an overhead roof-mounted 2000kg gantry crane system to assist with internal maintenance procedures.

These shelters are the first Rubb EFAS Systems to feature an internal PVC membrane to provide additional thermal insulation – protecting valuable aircraft and personnel from the soaring temperatures outside.

Rubb Buildings Ltd won an order to provide three 23.4m x 36m steel and aluminium hybrid EFASS structures to Horizon Flight Academy.

Hareb Thani Hareb Al Dhaheri, Horizon Chief Executive Officer said: “We chose Rubb for their reputation in design, development and deployment of temporary hangars. The installation of our hangars was speedy and efficient, the project was completed on time and as promised.”

The high flying academy is based at Al Ain International Airport and has been purpose built for flight training. It has set the benchmark for pilot training in the Middle East, offering fixed wing and helicopter pilot courses.

Its fleet includes Cessna 172SP, Diamond DA42, Bell 206 and Bell 407 aircraft and flight simulators. The hangars will be used for the storage and maintenance of the fleet helicopters.

Horizon first viewed Rubb’s state-of-theart hangar system at IDEX 2011 in Abu Dhabi and the relationship grew from there. The Horizon team visited Rubb’s

manufacturing plant in Gateshead, UK, and personnel from Rubb travelled to Al Ain to assist with site assessments and oversee the installation of the structures.

The EFASS shelter system, which features hangars, sunshades and warehouses, is uniquely suitable for the storage and maintenance of aviation equipment and operations. The system is designed to be rapidly deployed and quickly erected anywhere in the world.

The main body of each Horizon hangar was constructed using a number of steel fabricated components together with uniquely designed steel roof and leg sections, that bolt together to form the span trusses. When assembled, high strength robust PVC coated polyester fabric sheets were fitted between the aluminium capping sections of adjacent spans to form the shelter.

The gable ends feature the standard aluminium EFASS frame elements

Rubb adapted the EFASS Steel Variant (SV) design to include mostly steel framework instead of aluminium to meet with stringent fire regulation codes in the UAE. The company worked with Al Futtaim Carillion during the construction of the aviation facilities and the installation was overseen by Rubb Erection Adviser Dave Cromarty.

The buildings were completed in six weeks. Project Manager Andy Knox said: “It has been a challenge to launch the EFASS in the UAE because it was a completely new product and technology in that marketplace. But the team at Horizon really wanted this hangar system and have helped us to introduce this product range to the region. We are now looking forward to showcasing this project and our military and aviation buildings further in the area.”

Specifications Building Type Span Length Area Eaves Height Overall Height

EFASS 23.4m 36m 842.4sq m 3.2m 8m

ECONOMIC FOCUS CHAMBER NEWS

Setting Up Business in the UAE

By John Martin St Valery, Founder and CEO of The Links Group

Still reeling from the effects of the worst financial crisis since World War II, British companies are bracing themselves for anaemic growth prospects in the months ahead. With the UK economy set to grow far slower than previously thought and austerity measures to remain in place until 2018, local businesses are increasingly turning their attention towards fast growth international markets as a means of stimulating their home economy.

One of the top business destinations for international expansion is the United Arab Emirates (UAE). Located in the Arabian Peninsula and a member of the Gulf Co-operation Council (GCC), the country has flourished from its oil and credit booms of 2003 to 2008. No longer simply dependent on its oil exports, the UAE has put in place an ambitious economic diversification strategy, which is forecast to deliver strong growth in 2013.

According to a recent report by leading Lebanese bank and research house Banque Audi, the UAE’s real GDP growth in 2013 will reach 2.9%, with non-oil

growth reaching 4.5%. Furthermore, the International Monetary Fund (IMF) projects that the UAE’s GDP will climb to its highest level of approximately US$385 billion, maintaining its position as the second largest Arab economy after Saudi Arabia. By 2015, the UAE’s imports are expected to reach US$253.7bn with onshore businesses accounting for two thirds of total import volume and free zones representing the remaining third.

Fundamental drivers of growth in the UAE include an increase in tourism, the large expatriate population, large-scale infrastructure developments, rising affluence and high disposable incomes of its residents.

As the country seeks to implement its ambitious 2030 Economic Vision, opportunities abound for British companies across a wide range of sectors. These include: construction, energy and environment, transport, infrastructure, education, consultancy, as well as financial and professional services.

Infrastructure Spending to Soar The UAE has impressive plans for new developments over the next few years. According to Deloitte, the UAE is ranked as the second largest market for construction in the region, with investments worth US$9bn made in the first quarter of 2011.

The Department of Transport’s master plan alone calls for an investment of more than US$68bn, putting US$10.2bn on roads and US$23bn on ports projects.

In Abu Dhabi, plans have been tabled for a US$7bn metro system and US$800 million for a tram network.

The UAE also has great ambitions to expand its airports, with US$13bn worth of developments planned. Dubai International Airport is eyeing to overtake Heathrow as the world’s busiest airport by 2015.

Most recently, Sheikh Mohammed bin Rashid al-Maktoum, Vice President of the UAE and Prime Minister and Ruler of Dubai, announced the construction of a new mega-city within the emirate.

The development, expected to receive 80 million visitors a year, will include the largest mall in the world, 100 hotels, a park 30% larger than London’s Hyde Park and an international theme park in collaboration with Universal Studios.

Seize the Moment UK companies, particularly those specialising in infrastructure and construction, should capitalise on international opportunities by expanding into blossoming markets like the UAE, where setting up a business is not as difficult as one might imagine.

Dubai Metro

In 2012, the UAE ranked second in the ease of doing business in the Middle East, according to the Doing Business survey of the IMF and the World Bank.

According to the 2012 Economic Freedom of the Arab World report, published by the Fraser Institute of Canada, the UAE is home to the highest levels of economic freedom among Arab nations.

Clearly, there is no better time to set up a business in the UAE and establishing the right commercial presence in the emirate will be the most important decision to make when embarking on an international expansion plan.

In order to conduct business on a regular basis in the UAE, foreign investors are required to establish a physical commercial presence in the country. Ultimately, having an onground presence in the emirates will help companies win more business in the long-term. By demonstrating a commitment to the development of the local economy, foreign companies are viewed as serious and trusted players in the UAE market. It is imperative that British companies looking to expand

ARAB-BRITISH CHAMBER OF COMMERCE

in the UAE identify a trusted company formation partner, who can provide expertise on the best license structure to benefit their business.

Weighing the Options In the UAE, companies can set up either in free zones or as onshore entities.

Under the Commercial Company Law of 1984, there are 11 types of onshore companies that can be established in the UAE: 1 Limited Liability Company (LLC); 2 General partnership company (UAE nationals only); 3 Limited partnership company (UAE nationals only); 4 Joint venture; 5 Sole proprietorship; 6 Branch of a foreign company; 7 Representative office of a foreign company; 8 Public shareholding company; 9 Private shareholding company; 10 Partnership limited by shares; 11 Partnership-en-commandite.

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Onshore Vehicles The most popular and practical structure used by foreign organisations under the Companies Law is a Limited Liability Company (LLC). As of 2009, the UAE government decided to suspend the minimum capital requirement for forming an LLC onshore. While this is a big plus for foreign companies looking to set up a presence in the emirates, it is important to note that the situation could of course revert as the law itself has not been changed. The biggest advantage to setting up an LLC is that the foreign entity has full access to the UAE market, giving them the freedom to work on an unlimited amount of projects.

International companies wishing to set up an LLC are required to have a local partner who owns a 51 per cent stake of the company’s capital. Many foreign companies are wary about setting up a presence abroad due to the uncertainties of choosing a local partner and finding the right local partner – be it an individual or a company – is of course critical to the success of any business. continued page 16

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www.eabplc.com      

ARAB-BRITISH CHAMBER OF COMMERCE

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ARAB BRITISH CHAMBER OF COMMERCE OUR MAIN SERVICES TO BUSINESS

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

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

Notary Service

Read more‌

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

www.abcc.org.uk/Export-Documentation

Mr Cliff Lawrence on 020 76594881

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

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

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

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

Venue Hire ABCC offers clients a contemporary venue to suit a variety of different events and meetings. To see the business and conference facilities that the Chamber can provide.

Read more...

Chamber Events The Chamber organises a programme of prestigious events, business roundtables, briefings, seminars, conferences and receptions taking place throughout the year. These events offer a showcase for the latest projects and major developments in the Arab economies.

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

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

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

www.abcc.org.uk/Venue_Hire

NEW SERVICES The Chamber will soon be able to offer the following services: l

Letter of Credit Management Service

l

Pre-shipment Inspection Service

l

Libya Visa Service

Further details will be released in due course

ECONOMIC FOCUS CHAMBER NEWS

from page 13

Under the Companies Law, The Links Group has pioneered a corporate nominee partnership model in the UAE. This structure provides clients with peace of mind by managing all activities between the foreign entity and local partner to ensure that no commercial administrative process impacts the day-to-day running of their business. By reducing the ambiguity of doing business in an emerging market, this structure means that clients retain full operational control of their business from the start, extending the highest degree of stakeholder protection in accordance with the UAE commercial law.

as they are only permitted to promote the activities of their parent company in the foreign market; in essence, the representative office acts as an international marketing office for the parent company.

Establishing a foreign branch office is another popular route to incorporating an onshore commercial presence in the UAE. Under the format of a foreign branch, the international party retains 100% ownership of the branch. In this case, companies must appoint a local service agent to liaise with government departments and aid in obtaining licenses, visas, etc.

Foreign entities pursuing more engaging business activity in the emirates can consider setting up a joint venture (JV).

As a contractual agreement between a foreign party and a local entity to work together on a specific project, a JV structure only allows the foreign participant to operate in the UAE market for the duration of the particular project.

Equity contribution by the local partner must be at least 51%, but the distribution of profits and losses can be agreed upon separately between the two parties. Joint ventures are suitable options for those wishing to establish operations in the UAE on a short-term basis. However, a JV is definitely not the best option for foreign companies looking to establish roots in the UAE and ultimately win more business over the long-term.

International companies can also choose to set up a representative office in the UAE. This format, however, significantly limits the company’s business activities

Alternative structures such as public and private shareholding companies are not as favoured by foreign businesses since the majority of shareholders and the

chairmen must be of UAE citizenship.

The minimum capital requirement for both of these structures is US$2.7mn, which is quite a significant sum compared to the zero capital required for setting up an LLC in the UAE. However some companies, such as financial service entities, banks and insurance firms, have no choice but to operate under a public partnership.

Free Zone Companies Unlike onshore companies in the UAE, Free Zone Entities’ (FZEs) business activities are limited. If a company is established in a free zone, it can only license and contract work within that free zone, regionally or internationally, but not onshore. To contract a business onshore, one must have some form of legal presence either through an agent or a branch of their business. For those free zone companies wishing to do business with the local UAE market, The Links Group can help set up a legal presence outside of the free zone and act as the local partner within the UAE. Start-up capital requirements differ from one free zone to another. For example, setting up a company in Dubai Media City

Abu Dhabi Securities Exchange

requires a minimum start-up capital of AED 50,000 (US$13,612). However, if the company includes any activities within broadcasting (TV or radio), the minimum capital requirement is AED 2,500,000 (US$680,650). On the other hand, operating in Dubai’s Jebel Ali Free Zone -a logistics and manufacturing hubrequires a minimum start-up capital of AED 1 million (US$272,500).

Labour Law Requirements The UAE has a population of 8 million, with expatriates accounting for almost 90% of the total population. Employers must sponsor all foreign employees, and they are responsible for them as long as their contracts are valid. The implementation of the labour law is heavily connected with the immigration law in the UAE. The only employees excluded from acquiring an employment visa in the UAE are GCC nationals.

Registered companies in the UAE, whether they are free zone or onshore entities, must adhere to the country’s Labour Law when recruiting staff. First and foremost, companies must present

ARAB-BRITISH CHAMBER OF COMMERCE

their trade license so they can bring in staff from abroad. Then, in order to legally work in the country, expatriate employees must obtain a work permit via employer sponsorship. Companies must apply for employee visas either through the free zone authority with whom they are registered or, in the case of an onshore entity, through the local naturalisation and residency office.

After liaising with the Ministry of Labour for the work permit application, a labour card can then be issued for the employee. Employers must finalise employee paperwork by issuing a residency visa for each expatriate worker, which will allow them to sign a tenancy contract within the UAE. It is important for medium to largesized entities to be aware that they must now meet Emiratisation guidelines. An initiative set up by the UAE government to employ local citizens, Emiratisation requires companies with more than 50 employees to ensure that at least four per cent of their workforce is Emirati.

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What Next?

In a globalised economy, expansion into fast-growth markets such as the UAE presents viable business development prospects for stimulating home economies through reciprocal trade.

Establishing a legal structure on the ground in the UAE, as an alternative to working from abroad or in a free zone, creates countless benefits for a foreign business. The time is certainly right for UK companies to widen their horizons and set up shop in the UAE. www.the-links-group.com

ARAB-BRITISH CHAMBER OF COMMERCE

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ADVERTORIAL

DOING BUSINESS IN SAUDI ARABIA

By Morris Defeo, Head Of Crowell & Moring’s Mena Practice

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

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

I. Investment Vehicles There are six types of Saudi investment vehicles through which foreign investors may conduct business in Saudi Arabia:

1. Branch A branch can be used to conduct any activity that does not require the participation of a Saudi partner. They are particularly popular vehicles for foreign investors providing services in Saudi Arabia. The foreign investor’s exclusive control is the main attraction, but the unlimited liability of the foreign investor for the debts and liabilities of its branch is less attractive. Compared to other Saudi investment vehicles, branches can be licensed and established quickly and easily.

2. Establishment An establishment is an unincorporated business in which there is no legal distinction between the owner and the business. However, whereas a branch is established by a foreign business, an establishment can only be owned by a natural single person. As with a branch, the foreign investor’s exclusive control of an establishment is advantageous, but unlimited liability for the debts and liabilities of the establishment is a major drawback. An establishment can be licensed and established more quickly than any other Saudi investment vehicle, but natural single person ownership means it cannot be utilized by most companies.

3. JSC A JSC is an incorporated business separate

and distinct from its shareholders. The liability of a JSC’s shareholders for the debts and liabilities is limited to the value of their shares in the JSC and a JSC can issue bonds and shares to the public. However, a JSC must have at least five shareholders at all times and it is the most demanding, time consuming, and expensive investment vehicle to incorporate. With limited exceptions, banking and insurance activities can only be undertaken in Saudi Arabia by a JSC.

4. LLC The LLC remains the most popular investment vehicle for foreign investors. It is an incorporated business entity that has shareholders, but is also separate and distinct from its shareholders and can be incorporated more quickly and easily than any other investment vehicle except an establishment.

Other advantages include: a shareholder’s liability for the debts and liabilities of the LLC is limited to the extent of the shareholder’s interest in the LLC’s capital; the Companies Law does not set a minimum capital for an LLC (although a minimum capital might be required by other regulations, depending on the LLC’s activities) and an LLC may be managed by a single manager or by a board of managers at the shareholders’ discretion.

An LLC, however, must have at least two shareholders and does not issue share certificates, bonds or more than one class of shares.

5. Professional Company A professional company is very similar to an LLC. However, it can only be incorporated by at least two licensed professionals for the purpose of practicing the founders’ profession. For foreign investors, the professional company suffers from a variety of disadvantages: a licensed Saudi professional must at all times hold at least 25% of the capital in the professional company; the foreign investor must have one permanent

representative who resides in Saudi Arabia for at least nine months per year; and the foreign investor must have been in operation for at least 10 consecutive years since its incorporation. For these reasons and because of the limited scope of a professional company’s permitted activities, a professional company is not a popular investment vehicle with foreign investors.

6. TSO A TSO is similar to a branch but can only be established by a foreign manufacturer with a registered commercial agent in Saudi Arabia.

The purpose of a TSO is to enable the foreign manufacturer to provide technical support to its commercial agent(s) locally.

A TSO enables a foreign manufacturer to retain exclusive control, but is only available to a limited class of foreign investor and can only engage in limited activities. There is unlimited liability for any debts and liabilities and the TSO is not permitted to engage in any profit-generating activity in Saudi Arabia. A TSO can only be established with the consent of the foreign manufacturer’s registered Saudi commercial agent, and is typically limited to no more than six expatriate employees. A TSO can typically be established as quickly as a branch, provided that the foreign manufacturer’s registered Saudi commercial agent cooperates fully.

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

ECONOMIC FOCUS CHAMBER NEWS

Why Business Needs to Take Cyber Threats More Seriously

The world is in the hands of a new warfare threat and it is not related to sophisticated weaponry or physical attack; this is information warfare fought through the Internet – otherwise known as cybercrime, says ABCC member KCS Group, a provider of strategic intelligence and corporate security.

It’s a silent but highly efficient way of extracting money and information and of causing destruction through remote access. The perpetrators can be sitting anywhere in the world, but they have the ability to ‘hack’ into computer systems and cause mayhem.

Cyber criminals can infiltrate computer security systems and, while many are just satisfied with remotely extracting money from bank accounts to fund anything from actual on the ground warfare or drug smuggling, others are more intent on attacking key installations in countries hundreds of miles away.

They infiltrate and attack, using sophisticated methods which go under the radars of most anti-virus programmes to inject malware – malicious software – which can worm

their way into computer systems to extract vital, sensitive and personal information.

The discovery of a new malware dubbed Gauss, points to a new wave of cybercrime which has been sweeping the Middle East and North Africa region.

The virus has been found in Windows 32bit systems, with many of the cases being discovered in and around the Middle East. It is thought to be linked to the Flame attacks uncovered in June 2012. Some experts believe it may have been live since last autumn but its effect has only begun to surface.

Designed to capture log-in details for internet banking services, Gauss has had a particular focus on certain banks in the region, although PayPal and Citibank have also been targeted. Thought to

emanate from the same sources as the Stuxnet and Flame viruses. Stuxnet is a follow-on from Zeus, which first presented itself in 2007 and spread through 74,000 File Transfer protocol (FTP) accounts on websites of such companies as Bank of America, NASA, Oracle, and Amazon. Both Stuxnet and Flame have already caused mayhem, but this new virus is unusual, inasmuch as it does not display the typical behaviour of a worm but rather spreads through infected USBs, its module capable of infecting both 32bit and 64bit USB drives.

Experts are still analysing the malware and more is expected, with Kaspersky putting out an appeal in mid-August 2012 for cryptography enthusiasts to help crack its make-up. It must be said at this stage however, that, while Gauss and its predecessors have been seen to target specific regions, virus threats are a global concern.

In terms of financial loss alone, a recently published report from a key anti-virus programme manufacturer, calculates that global cybercrime in the past 12 months has cost over $110 billion.

Of even more concern is the fact that, every second, 18 adults become a victim of personal cybercrime, resulting in more than one and a half million cybercrime victims each day on a global level. With losses totalling an average of

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$197 per victim across the world in direct financial costs, cybercrime costs more than a week’s worth of nutritious food necessities for a family of four.

Translate such statistics into the business arena and, throughout the world, companies are seeing their profits being shaved, simply because the cyber criminals have been at work doing what they are trained to do – hack and extract (information and moneys).

Overall, vital information is being compromised and businesses are left vulnerable, their intellectual property or sensitive documentation being redirected to ruthless third parties, their bank accounts stripped.

Banks themselves are facing horrific losses and yet they, along with responsible governments, appear reluctant to address the situation seriously. In short, it is fast becoming a world-wide crisis at this critical time when everyone is facing austerity measures.

“This Gauss (malware) is yet another threat to world security and its repercussions could go deeper,” said Massimo Cotrozzi, one of the world’s leading experts on cybercrime and its prevention. Cotrozzi heads up a dedicated cybercrime division within London’s KCS Group, a long established, global security intelligence and risk management consultancy.

“It is highly likely that Gauss was written by a nation-state supported group, this belief is backed by the fact that it has targeted specific countries. Generally, traditional cyber criminals aim to infect as many machines as possible, anywhere in the world. The fact that Gauss has been contained within three main countries but leaked into others is significant,” Cotrozzi added.

“Let’s not be complacent – safeguarding our computer networks both at home and, more specifically, in the business environment, is the most important thing that we can do. And I say this - never leave your laptop, iPhone, tablet or even normal mobile phone unattended.

Always keep an eye out for people overhearing your conversation and never, ever disclose on any internet connection where precisely you are, or what you are specifically doing at that time,” he added.

The Stuxnet virus is, unfortunately, in

the hands of criminals: the virus is being traded on the black market and could fall into the hands of terrorists. In essence, Stuxnet is that key moment where cybercrime crosses the threshold from being a form of ‘virtual pick-pocketing’ to something which can have a major impact on national infrastructure.

KCS has continually warned against the sophistication of cybercriminal hackers working in concert against banks and industry. It is KCS’s estimation that cybercriminal activity is now a greater threat than the illegal narcotics industry ever was – and certainly it is generating more money.

As the virus has matured, it no longer only targets a computer being used by an employee – instead, it targets computers controlling SCADA (Supervisory Control and Data Acquisition) networks – automation in factories and power plants, for example. Its impact ranges from altering cooling systems of industrial plants to modifying the robots of a production line so that factories deliver products with modifications no one knows about. More importantly, an infected PC will neither detect Stuxnet nor the malicious code it injects into the Programmable Logic Controllers (PLC).

In a report addressing cybercrime, issued at the start of 2011, KCS advised that the sheer scale of cyber related crime had turned the phenomenon in to a major international security concern.

KCS wrote that businesses would have little choice but to prepare for sophisticated attacks on computerised database systems and internet traffic hijacking.

Anti-virus specialists around the world share information but unfortunately most of the researchers are working to crack viruses for commercial reasons – and they circulate the information amongst specialists but rarely does that information get to the companies which need to protect their systems.

The real problem, however, according to Cotrozzi is that companies fail to invest appropriately in IT security as they don’t understand the full extent of a data loss or a security violation.

Additionally, company security systems are not considered of national value and individual organisations are left alone to combat the threats while governments – at a political level – struggle to achieve an understanding of the real threat.

Looking ahead, the cyber future remains in the balance. Companies will need to take a strategic and yet even more aggressive approach to cyber security in the months ahead. With particular reference to Iran and China, there is little room to be complacent.

KCS intelligence experts close to the action, however, inform us that the “events of 2012 so far, suggest that the international cyber security landscape is likely to make public and private organisations throughout the Middle East and North Africa remain on unsteady footing for the foreseeable future.”

Governments and corporations need to increase their efforts to remain one step ahead of the very serious threats posed by cybercrime to the integrity of their business operations which could spell global disaster, the likes of which have never been seen before. www.kcsgroup.com

ECONOMIC FOCUS CHAMBER NEWS ADVERTORIAL

GUIDE TO THE FOREIGN EXCHANGE MARKET

market orders, Omnis FX can put together a clear trading strategy and help ease the burden of a constantly changing currency market.

Spot Contracts A straight forward exchange of currency delivered immediately.

Spot contracts are used by businesses requiring immediate foreign currency and the most competitive exchange rate. Businesses that only require foreign currency occasional would benefit from this type of trade.

Forward Contracts Fix competitive exchange rates to hedge future currency risk.

We offer a very fast payments service (instant in some cases) and can also save clients as much as 3% on their currency purchases. Please contact our team for a comparative price on your next transfer; we might just surprise you!

Omnis FX is a UK based currency exchange specialist. We are a provider of competitive exchange rates for a variety of clients, both private and corporate. The company objective is to offer clients an unprecedented level of service coupled with cost effective, efficient transaction services.

Why Omnis FX? OmnisFX; HELPING CLIENTS ACHIEVE OPTIMUM PRICES ON CURRENCY EXCHANGE TRANSACTIONS. Omnis FX is a UK based currency exchange specialist.

We are a provider of competitive exchange rates for a variety of clients, both private and corporate. The company objective is to offer clients an unprecedented level of service coupled with cost effective, efficient transaction services.

The service we provide is efficient, fast and consistent which means that our clients receive the same level of care and attention regardless of transaction size!

Achieving the best rate for any currency exchange requirement is pretty high on the agenda for any company which regularly needs to buy or sell currency and therefore OmnisFX endeavours to provide clients with the optimum exchange rate for currency transactions.

Level of Service Each one of our clients is allocated an account manager. This enables a relationship to be built, and a client’s individual needs to be constantly monitored. They can then advise on the best currency product for a particular client based on their specific requirements.

Credibility Omnis FX is the trading name of Omnis Capital FX Ltd which is registered with HM Revenue and Customs as a Money Transmitter.

HM Revenue and Customs Money Laundering Registration Number: 12293997 Company Registration Number: 6420928 Omnis Capital FX Ltd is an Appointed Representative of Independent Portfolio Managers Limited which is authorised and regulated by the Financial Services Authority.

Omnis Capital FX Limited is registered with the Financial Services Authority under the Payment Services Regulations 2009 under register reference No. 485601 for the provision of payment services.

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

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

For companies that are heavily exposed to currency volatility, pro-active exchange rate risk management can be the difference between a profit and a loss. Unfortunately, many companies do not have the resources to optimise such currency transactions.

Trading Strategies By using a combination of contract types and

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

In this case profit margins can be fixed in advance.

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

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

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

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

Omnisfx have spent a lot of time and effort in setting up and opening local bank accounts in Dubai. These accounts are for USD,GBP,EUR and AED and means that the processing time for sending and receiving funds has been decreased. This enables our clients to get payments in and out much quicker.

ARAB-BRITISH CHAMBER OF COMMERCE

CONTACTS OmnisFX, The Innovation Centre, 128 Trevenson Road ,Pool, Redruth, Cornwall TR15 3PL You can also contact our team for any queries related to our services or your personal account at Telephone: 0203 328 0611 Fax: 0203 328 0612 Email: info@omnisfx.co.uk www.omnisfx.co.uk

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ECONOMIC FOCUS CHAMBER NEWS

Quarzazate

Morocco Tourism Seeks Investors

preserve macroeconomic stability by taking numerous measures and adopting structural reforms that have achieved an average growth of 5.1% over the years 2001 to 2010.

Public investment has almost tripled between 2004 and 2010 to reach $20 billion (MAD167bn).

This has been invested in the development of large-scale projects designed to create world-class infrastructure. The following projects can be highlighted:

The Ministry of Tourism of Morocco outlines the country’s tourism strategy and explains why investors cannot afford to ignore it.

The Minister of Tourism for the Kingdom of Morocco, H E Dr Lahcen Haddad, paid a visit to the Chamber on 17 January to introduce the country’s tourism strategy to an audience of specially invited investors and chief executives from the UK tourism industry.

The first point to stress is that Morocco boasts a stable economy that has demonstrated a strong macroeconomic performance over many years.

Sustainable growth has been achieved because successive Moroccan governments have undertaken to

l

The Tanger-Med Port which entered into service in 2007 with a total capacity of over 3 million containers.

When it achieves its full capacity in 2016 the port will operate 8 million containers, 7 million passengers, 700,000 trucks, 2 million vehicles, and 10 million MT of oil products.

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A nationwide highway network which is to be increased from its 1500 km level in 2010 to 1800 km in 2015, when it will connect all cities with more than 400,000 residents.

l

l

l

l

ARAB-BRITISH CHAMBER OF COMMERCE

Thanks to the adoption of an Open Sky policy, Morocco’s 14 international airports (largest airport hub in the region) are used by increasing numbers of international companies and are connected to major cities and economic platforms in the world.

A wide network of Economic Activities Zones including Integrated Industrial Platforms, free zones and clusters.

Telecommunications infrastructure that meets international standards and continues with sustained growth. Morocco boasts three global operators for fixed phone, mobile, Internet and data. Mobile penetration reached 97% and there were 13 million Internet users by September 2010.

Morocco will have the first high-speed railway in Africa when the TangierCasablanca line opens in 2015.

The improved transport system has made Morocco considerably more accessible both internationally and in terms of domestic travel around the country.

In addition to the road network of 32,000 km, travellers in Morocco are able to make use of its highways stretching 1,416 km, while goods can be unloaded at one of its 11 trade ports. There are also seven marinas to accommodate tourists.

Morocco has taken many bold steps to improve the country’s business climate putting in place a set of mechanisms to increase transparency, boost competition and promote investment.

Key measures include: l

Simplification of administrative procedures for businesses;

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Improving regulatory transparency;

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Creation of the Business Environment National Committee;

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Creation of the Moroccan Office for Intellectual and Commercial Property;

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Modernisation of financial markets;

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Promotion of the Charter on Corporate Social Responsibility;

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Strengthening the business law framework (including competition

and free pricing, law on economic interest groups, law on industrial and intellectual property).

Reliable Banking System With local players growing strongly and with their strong footprint in Africa, the Moroccan banking system offers reliable services to investors and supports Moroccan companies abroad. Local banks have strong presence across the continent. Three of the country’s banks rank among the top in Africa, namely Attijariwafa Bank, Groupe Banque Populaire and BMCE Bank.

Tourism – a Driving Force The tourism sector is today a driving force of the economic, social and cultural development of Morocco. This is because the country is a tourism destination boasting many unique features. The country is attractive to tourists from the European markets in particular because of its accessibility and because of the diverse attractions of interest to tourists.

A multitude of natural assets include its 3,500 km of Mediterranean and Atlantic coastline, its mild-weather, varied landscape. The mild and temperate climate facilitates outdoor activities and tourism throughout the year, while its seas, mountains, valleys and desert make for a rich and diversified tourism offering.

Morocco stands at the crossroads of many different cultures and over the centuries, the Arab, African and European influences have fused together to create a unique national culture that is most clearly reflected in its Medieval medinas and modern cities.

The country can be proud of its distinct cultural heritage and three thousand year history traces of which can be found in the imperial cities, palaces, souks, kasbahs, medieval towns, as well as its renowned culinary art, folklore, traditional arts and crafts.

25

regional leader for tourism. GDP in the tourism sector expanded twice as fast as the country’s GDP as a whole; tourism receipts grew an average of 15% annually; the industry well outpaced the growth in neighbouring countries with accommodation capacity doubling between 2001 and 2010.

Morocco is now implementing a strategic vision for national tourism development which is known as Vision 2020 which aims to position the country as one of the world’s top twenty tourism destinations by the year 2020.

The ambitious objectives of Vision 2020 involve doubling the available bed capacity from 175,000 in 2010 to 375,000 by 2020; doubling tourism revenues from MAD62 billion in 2010 to MAD140bn in 2020.

The implementation of the policy should also see the doubling of jobs in the tourism industry raising the total from 450,000 in 2010 to 920,000 by 2020 to cater for a doubling of tourist arrivals to 20 million.

The innovative approach to the development of the nation’s tourism sector rests on three aspects: l

Planning for the territorial development of tourism in the regions of the country;

l

A new governance structure for the industry;

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An integrated approach to sustainability.

Eight “tourist territories” in different regions around the country have been identified as offering most promising potential for development of tourism facilities. Each of these eight regions seeks to take advantage of the unique Ferry Maroc

Morocco is a land that combines tradition and modernity welcoming visitors attracted by its justly deserved reputation for tolerance and hospitality.

During the decade from 2001 to 2011 the sector achieved record growth and Morocco established itself as a continued page 28

ECONOMIC FOCUS CHAMBER NEWS

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ECONOMIC FOCUS CHAMBER NEWS

from page 25

features existing in the area that is to be developed.

Atlas Mountains

These eight territories are: l

The Northern Destination which is described as the “gateway to Africa”;

l

Morocco Mediterranean which concerns tourism based on seaside resorts and recreation;

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Morocco Centre focused on the heart of Morocco’s history;

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Centre Atlantic which will see business and recreational tourism on the coast;

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Marrakech Atlantic which is seen as the quintessential Morocco;

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Souss-Sahara Atlantic which spearheads the growth of Morocco’s seaside resort growth;

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Atlas & Valleys which is the leading destination for ecotourism and sustainable development;

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The Great South Atlantic which is the region ideal for sports and nature.

Morocco has adopted objectives for each of its three main sub-sectors of tourism as follows: As regards cultural tourism, there are several new prestige construction projects in the pipeline including a Museum of Africa, cultural parks, convention centre, marinas and theme parks.

increase from 16,600 in 2010 to 30,400 in 2020; tourist arrivals would increase from one million to two million over the same period and jobs would be increased from 43,200 to 86, 400.

In this sub-sector, the aim is to increase the number of tourist arrivals from 6.6 million in 2010 to 13.1 million in 2020; increase the available hotel beds from 117,000 to 205,000 during the same period; and increase the number of jobs from 3211,000 to 603,000.

Moroccan officials are convinced that the target of 20 million tourists by 2020 is easily achievable.

Turning to seaside resorts, some of the projects identified for development include Tagazout, Marchica, Plage Blanch and Cap Juby. The stated objectives in this sub-sector are to increase hotel bed capacity from 44,000 in 2010 to 137,000 in 2020; increase tourist arrivals from 1.6 million to 4.9 million and increase jobs from 85,200 to 225,600.

Projects for development in connection with the country’s nature tourism include desert golf, desert eco-resorts, Dinopark, as well as development of ksours and kasbahs. Hotel bed capacity relating to this sub-sector would

Additional hotel capacity will allow Morocco to attract latent demand. By completing the resorts of Plan Azur on schedule, the country will be able to reach 16 million tourist arrivals. Vision 2020’s key objectives will be achieved through an additional capacity of only 4 million more arrivals.

Market share gains to reach a target of 20 million arrivals by 2020 are modest, considering the growth rates expected by the WTO. Eastern Europe and emerging countries such as Poland, Hungary, Russia and China all represent additional opportunities for Morocco to increase its market base.

Morocco should be able to capitalise on

its unexploited touristic assets to cater for city breaks and the cultural markets that have not yet been reached.

The country is increasingly the home to world class brands in the hospitality industry as Morocco seeks to transform itself into a major destination for sophisticated luxury tourism. Top architectural, design and academic institutions are all increasingly present in the country.

The 2020 Vision is building on the successful implementation of previous policy initiatives by putting in place a framework that is conducive to attracting investors. Its key features include: l

Recognition of the property rights of foreign investors;

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Free repatriation of profits;

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Right of foreign investors to invest in Morocco in their own right;

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Upgrading of the financial sector;

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Improvement of the regulatory environment for business;

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Flexible labour laws.

ARAB-BRITISH CHAMBER OF COMMERCE

The government has granted exceptional incentives to developers relating to land, import duty exemptions on equipment and government contribution to stimulate inward investment in the sector.

Incentives granted by the Moroccan government to hotel promoters include exemption from registration fees of the land; subsidies on land in some resorts; exemption from VAT on the purchase price of capital goods; total exemption from corporation tax for five years; and financial participation from the government in the training of hotel staff.

Some key projects can be highlighted briefly The Souss-Sahara Atlantic: Spearhead of Morocco’s Seaside Resort Growth

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Cultural festivals and international surfing events.

Taghzaout is an eco-tourism resort meant to be environmentally friendly. In this contest, the construction work will be designed in a way that fits the low density approach.

The project entails: l

7 hotels including a golfing hotel;

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5 Residential tourism components;

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Residential, villas and apartments;

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Surf village; Argan reserve, Medina;

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An 18-hole golf course.

The project is expected to be completed in 2022.

Under the published master plan, plots of land are available for development, such as:

Eco Resort

This includes the Agadir area notable for its sun and sand, Tafraoute and Oasis and Guelmin Tan Tan seaside resort.

Investment in the area seeks to increase visitors from 1.2 million to 4 million and raise revenues from less than one billion to 3.5 billion.

Surface: 88 ha Floor Surface: 35 990 m² (H), 40 320 m² (R) Hotel Capacity: 2,690 beds Residential Capacity: 1,040 beds

Taghazout: Ecology and Authenticity

Surface: 18 ha Floor Surface: 17 160 m² (H), 20 000 m² (R) Hotel Capacity: 264 beds Residential Capacity: 400 beds

Located on the Atlantic coast, 20km south of the city centre of Agadir, this area is noted for its unique natural and cultural attributes that are primed for development. Taghazout boasts: l

A magnificent 6km coastline;

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Warm weather providing 300 days of sunshine over the course of a year

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Proximity to major European cities;

Plot 2

Plot 3 Surface: 8 ha per hotel Floor Surface: 16 100 m² Hotel Capacity: 400 beds per hotel

29

Marrakech Atlantic Plans to develop this area including the city itself, Marrakech Heights valleys, Essaouira will double the number of visitors to four million by 2020 and increase the income from tourism to $3 billion.

Mogador: A Charming Seaside Resort The site is located on the southwest coast of Morocco, 5 minutes from the city of Essaouira , and 10 minutes from the airport.

Mogador offers real potential thanks to its magnificent Atlantic coastline; warm climate; and proximity to major European cities.

The area has a diverse culture and rich history: its medina was classified as a UNESCO World Heritage site. It is known for its natural festivals and nautical sports events.

Also, within a few years, Essaouira will become a destination on the international golf circuit.

With a total capacity of more than 10,600 beds, including 6,800 hotel beds, the resort will feature: 11 hotel units and 150 guest houses, residential units in villas with a capacity of 3,800 beds; 2 golf courses each of 18 holes; shopping outlets; and museum.

Northern Destination: Gateway to Africa This region includes Tangier, Tetouen Tanuda Bay, Chefchouen, Asilah and Larache, which offer diverse tourism

Tanger Med continued page 30

ECONOMIC FOCUS CHAMBER NEWS

from page 29

Volubilis, Roman city near Meknes

products from city Mediterranean breaks to sea and heritage tourism.

An important project in this area is the Museum of Africa, which is a partnership with the Louvre and which is being built on a prime location near the port of Tangier in an iconic architectural style.

contemporary world and travel into the mythical past time of Moulay Ismail.

History of Morocco Resort

The creation of a museum with an international profile will help Tangier to establish its position in the market as a city break destination.

The Concept: A themed resort whose main goal is to enhance knowledge of Moroccan history by tracing the history from the earliest past to modern times by capitalising and concentrating on the historical region of Meknes and the archaeological site of Volubilis.

It is expected that the museum will improve the international image of Tangier in a similar way to the impact of the Guggenheim Museum on Bilbao. The construction is expected to be completed in 2015.

Architectural features: Composed of villages that represent different periods in Moroccan history, the resort will be a unique location taking advantage of the cultural influence of the axis FezMeknes-Volubilis.

Morocco Centre

Meknes-Volubilis

This region offers rich cultural and historical sites including the city of Fes, described as a “living museum”, Meknes and Volubilis and Ifrane. Proposals for the sector will aim to see visitors rise from one to three million by 2020.

The idea is to offer a reconstruction based on the realities of Moroccan history such battles, major events, lifestyles, handicrafts and food.

Galaxy Resorts Morocco is seeking to interest investors in some major themed resorts:

Imperial City Resort An integrated resort consisting of luxury accommodation and several entertainment facilities within the city of Meknes; the site is the ideal place to relax and disconnect from the

Examples of themed villages: Hotel with ancient buildings offering, a thermal area, summer patios and themed restaurant.

A theme and leisure park representing a virtual life and leisure in the times of the Roman Empire.

Constellation Resort A multitude of tourist villages, each with a specific theme, such as traditional arts and crafts, and offering accommodation and entertainment components.

A constellation of luxury resorts under the theme “Arts and Traditions.”

The resort will be positioned as a complement to the medina, with space for young artists, emerging trends and new generations of craftsmen: pottery, carpets, wood, iron, leather, glass, music and cuisine.

M’dinti Programme This initiative is designed to make the cultural heritage more accessible to visitors seeking to enrich their stay by creating an authentic experience while improving the opportunities for the local population. It will contribute to local economic growth through the promotion of handicrafts, cultural activities and the hospitality industry. It concerns the development of medinas six of which are classified by UNESCO as heritage sites, namely Rabat, Marrakech, Fès, Meknès, Essaouira and Tétouan, and the Portuguese city of El Jadida.

As the Minister of Tourism H E Dr Lahcen Haddad told investors during a seminar at the Chamber in January, Morocco was keen to hear from any potential investor seriously interested in cooperating to develop the industry.

This article is based on the presentation delivered by the Minister to the Chamber.

Further details about Morocco’s national tourism strategy can be obtained from the Moroccan Agency for Tourism Development (SMIT): www.smit.gov.ma/en/la-smit/about-us

ARAB-BRITISH CHAMBER OF COMMERCE

31

ADVERTORIAL

UK tax changes for residential property in April For many years it has been commonplace for those people buying residential property in England who are non-resident and non-domiciled in the UK to own such properties in off-shore structures, particularly companies.

Tax changes come into force in April of this year and are designed to deter the holding of high value residential property (properties worth more than GBP 2million) by non natural persons (‘NNPs’). The new rules will introduce an Annual Residential Property Tax (‘ARPT’) from 1 April 2013 that will be payable by NNPs who own a residential property worth more than GBP 2million In addition, a new Capital Gains Tax (‘CGT’) regime will apply to the disposal of a residential property by NNPs for more than GBP 2million on or after 6 April 2013.

Annual Residential Property Tax The ARPT will be payable by companies, collective investment schemes and partnerships which have a company as a partner. Interestingly, trusts will not have a liability to the ARPT. A number of reliefs will apply to ensure that “genuine businesses carrying out genuine commercial activity” are excluded from the ARPT, such as properties exploited for development or rental businesses.

The reliefs are strictly defined so as to prevent them being used to avoid the ARPT. So, for example, the relief available for a rental business is only available if the property is not occupied by a ‘nonqualifying person’ even if they are paying a full open market rent. The definition of ‘non-qualifying person’ is extremely wide and will include any beneficial owner of the NNP or any person connected with

them, such as their child, wife, brother or other family member.

Even where a relief is available, it will have to be claimed each year and the first returns will need to be filed by 1 October 2013.

The rate of the ARPT will depend on the value of the property as follows: Property Value

Annual Charge

£2m to £5m

£15,000

£5m to £10m

£35,000

£10m to £20m

£70,000

Over £20m

£140,000

Capital Gains Tax The new CGT regime will apply to the disposal of a residential property at more than GBP 2million on or after 6 April 2013. In simple terms, if a NNP falls within the scope of the ARPT, it will also be subject to the new CGT charge. The new CGT regime will not be as far reaching as initially feared.

CGT is usually paid on the increase in the value of a property from the date it was acquired to the date of its disposal. However, for NNPs, CGT will only be payable on gains attributable to increases in value post 6 April 2013, i.e. there will be a rebasing. The rate of CGT payable will be 28%.

Review and Restructuring?

NNPs holding residential properties worth over GBP 2million should urgently review their structures to see whether the property falls within the scope of the ARPT and therefore the new CGT changes. If the new rules apply to the NNP then the structure should

be reviewed to determine whether it remains cost effective or whether action is required to restructure. Many NNPs are sensibly seeking valuation advice as part of this process. When considering any restructuring, the benefits of NNP structures from a privacy, inheritance tax and divorce perspective must be carefully balanced against the tax burden.

For those NNPs who decide that they wish to collapse an existing holding structure, time is of the essence, but care will need to be taken to consider whether this will result in any other tax charges in the UK or elsewhere. In particular, in considering any options, NNPs and their beneficial owners should consider the General Anti-Abuse Rule (‘GAAR’) which will come into force in the summer of 2013. Restructuring that takes place after the coming into force of the GAAR or the creation of a new structure after that date that is designed to exploit perceived loopholes that fall outside the spirit of the GAAR will remain extremely vulnerable to attack by HM. Revenue and Customs.

Emma Copestake, Residential Real Estate Partner, Withers LLP emma.copestake@withersworldwide.com +44 (0)20 7597 6386

www.withersworldwide.com

British Institute

ECONOMIC FOCUS CHAMBER NEWS of Technology & E-commerce

TAKING CARE OF BUSINESS

The British Institute of Technology & E-commerce combines research, consultancy and academic expertise to provide a range of industrial and educational solutions for its clients.

Despite having been founded only 12 years ago, the British Institute of Technology and E-commerce (BITE) has graduated more business master’s students over the past three years than any other institution in Europe. As the UK-based Institute enters its second wave of development, plans are afoot for yet more expansion – both domestic and international.

In 2000, BITE opened its doors for the first time, offering work-based training and continues to focus on employability skills through its blend of industry and academic

relevant training. These developments combine the benefits arising from BITE’s activities across its research, consultancy and scholarship activities BITE’s three campuses feature state-ofthe-art equipment that are able to host 6,600 students per annum. It is shortly to expand by adding a fourth campus in British Vancouver, Canada. The Institute’s Stratford headquarters, located on the outskirts of the 2012 London Olympic Park, is the main student hub.

Having held its third World Hi-Tech Forum event in 2010 specifically focused on the UAE the Institute is moving quickly to establish its presence in the Middle East. Some three hundred “C” level executives, UK government representatives and visiting delegates from overseas governments joined in wide ranging discussions about the market opportunities in the UAE and elsewhere.

Amongst many successful outcomes one project with the Emirates Identify Authority is progressing well.

Combining our expertise with our international network of leading specialists BITE is targeting the Middle East as its next expansion hub.

PROFESSIONAL TRAINING The Institute still remains true to its vocational training origins. BITE offers a range of Chartered Management Institute management and leadership courses at Levels 4,5,6 & 7. Significantly, BITE has recently been awarded the right to offer a Level 8 Diploma in Strategic Direction and Leadership and is now recognised as a Chartered Manager award centre. BITE continues to offer a range of City & Guilds, NVQ and Edexcel qualifications.

In years past, around 80 per cent of BITE’s student intake has come from outside the EU. However, the Institute is now looking to increase the number of home-grown students it has on its courses. BITE’s expansion plans seek to build international campuses in the Middle East, Eastern Europe and Asia, enabling local students to benefit from BITE’s educational provision without having to disrupt their current lifestyles.

‘We are very excited by the opportunity that our investment in blended learning facilities offers us to support our overseas campuses,’ says BITE Principal Dr James MacAskill. ‘This allows all BITE students to study full-time or part-time using our fully supported online learning experience blended with face-toface faculty lectures.’

Lord Erroll speaking to the World Academic Council at the House of Lords

BITE is looking to expand its provision in the future and integrate the learning opportunities offered by its industrial partnership to

British Institute

ARAB-BRITISH CHAMBER OF COMMERCE 33 of Technology & E-commerce

World Hi-Tech Forum focus UAE at the Dorchester with panel including Lord Ahmed of Rotherham

establish a more relevant university education for employment in the 21st century.

CONTINUOUS PROFESSIONAL DEVELOPMENT Building on its excellent professional and degree level awards BITE has recently established a joined venture with the National Nuclear Laboratories in the UK: Global Nuclear Skills Initiative (GNSI). Recently launched in Abu Dhabi this initiative, that consolidates BITE’s interest in alternative energy systems, offers an adaptive professional development programme for the nuclear industry that builds up from short intensive workshops to a Masters level qualification. BITE can already deliver a range of professional and executive development programmes tailored to corporate and individual needs through its Certified Continuous Professional Development pathway (CCPD). Programmes can be delivered onsite or at a location of the client’s choice.

Oxford Street Campus

PARTNERING AND JOINT VENTURES BITE is keen to utilise its network of partners, companies and investors through its BITE Business Initiatives (BBI) members for further expansion and joint venture opportunities. These activities promote innovative solutions to establish successful commercial projects. It is anticipated that a range of innovative products will be brought to market over the coming years, some almost certainly focused on the expanding Middle East markets.

MAKE AN APPOINTMENT TODAY To find out how BITE can help improve your business or our BBI programme contact Muhammad Farmer on drivinginnovation@bite.ac.uk

Shrubland Hall Campus

BITE Graduates

ECONOMIC FOCUS CHAMBER NEWS

Supporting Exporters of UK Goods and Services Ali Sherwani, Head of Business Development for UK Export Finance, explains what the organisation is and how it can help businesses seeking to trade with the Arab World.

Who We Are UK Export Finance (UKEF) is a separate government department which aims to support exporters of UK goods and services to overseas buyers. UKEF is the trading name of the Export Credits Guarantee Department (ECGD).

UKEF is constituted by an Act of Parliament, the Export & Investment Guarantees Act 1991 (as amended by the Industry & Exports (Financial Support) Act 2009). This sets out the department’s legal powers (“Vires”) and aims, and how it operates in order to achieve these.

Currently our Ministers are Lord Green of Hurstpierpoint, the Minister of State for Trade and Investment and the Rt Hon Dr Vincent Cable, MP, the Business Secretary.

What We Do We aim to support exporters of UK goods and services to overseas buyers by insuring them against the risks of not getting paid under the terms of their export contracts.

The form of our support depends on the type of contract, the goods and service being supplied, and the stage of the contracting process. In each instance the basis of our support is that we provide UK Government, AAA-rated, insurance policies or guarantees against specified risks of loss.

For straightforward cash contracts

we can provide an insurance policy to exporters against the risk of not getting paid for certain causes of loss. For contracts involving loan finance we can work with lenders to put credit facilities in place for use by the buyer. UKEF then guarantees the bank against the risks that their loan does not get repaid.

A premium charge is payable for all of our services. This reflects the risks we are taking under our issued policies or guarantees and is calculated according to the level of risk involved. Like a commercial insurer, this premium is to cover the cost of any claims we pay out, and the costs of running the department.

Currently we are not able to act as a direct lender to projects or provide any form of financing or banking facilities directly to exporters in respect of helping them finance their contracts. Our support is offered in conjunction with banks who act as lenders or providers of banking and credit facilities.

Direct Lending Scheme From 1 April 2013 UKEF is due to begin operation of its £1.5Bn Direct Lending Scheme. This was announced by the Chancellor of the Exchequer in December 2012 and is aimed at helping SMEs by making funding available which may then be used by their overseas buyers to purchase from the UK. Further details of our products, and how they work, are included below.

As a UK government department we do not compete with private sector lenders and insurers, but complement them by ensuring cover is available in markets where commercial providers are unable or unwilling to provide cover.

Am I Eligible?

To qualify for UKEF support applicants must be able to demonstrate that they are “carrying on business in the United Kingdom” and supplying goods or services to “persons carrying on business outside the United Kingdom”.

Our ability to provide cover, and the type of support we can give, also depends on the type and nature of the goods or service being supplied, and the country of the buyer or project. UKEF is currently on cover for some 200 countries around the world, including countries in the Gulf.

We have worked on a number of major projects in the region, including Saudi Arabia, the UAE (including Dubai) and Oman.

In Dubai, UKEF supported a contract between Carillion Plc and Emaar Properties for the construction of two properties at the Burj Khalifa complex.

We have also provided support for two Project Finance cases with SABIC (Saudi Basic Industries Corporation), including the Saudi Kayan project, and are considering support for the mega petrochemicals project ‘Sadara’, a joint venture between Saudi Aramco and the Dow Chemical Company of the United States.

There is no minimum contract value required for our support, although the size of the contract can influence the type of support we can consider.

How We Provide Support As noted earlier, UKEF has a range of products which are available according to the nature and scope of the underlying export contract.

Cash Contract Insurance For contracts payable on cash terms, our Export Insurance Policy (ExIP) can cover against the risks of not getting paid due to specified Political (country) or buyer risks. These include war, civil war, government measures which stop

you performing the contract or receiving payment, or the insolvency of your buyer.

The ExIP policy is between the UK supplier (as the Insured under the policy) and UKEF as insurer.

The UK supplier is responsible for paying the premium for the cover and, in the event of any claims, deals directly with UKEF.

Financed Contracts In many instances overseas buyers ask successful bidders to include a finance package (loan) as part of their tender.

The buyer then uses this loan to pay for the goods and services being supplied.

The benefit to the UK supplier is that they get paid as if they had a cash contract. When the contract is completed, the supplier should have received all monies due to them under the contract and the buyer received all of the goods and services. The buyer then repays the loan, with interest, over the agreed repayment period.

Larger (non-SME) contracts involving

ARAB-BRITISH CHAMBER OF COMMERCE

bank finance are arranged in conjunction with an eligible bank willing to act as lender. UKEF works with the bank to agree the terms and conditions of the loan and put the loan facility in place.

On financed contracts UKEF provides its guarantee directly to the lenders. In the event of any changes to the contract or loan during its lifetime, or should a claim result, the bank would lead in discussing these with UKEF. As part of our risk and underwriting assessment processes, UKEF must be satisfied with the counterparties to the contract (including the ability of the UK supplier to complete the contract as specified), and the buyer (or borrower if this is a different company). The risk and security package must also meet our requirements and those of the lenders.

This includes any third party guarantees of payment which may form part of the security package.

To qualify for UKEF support, projects must meet the environmental standards of the International Finance Corporation, which is part of the World Bank.

35

As a member of the Organisation for Economic Cooperation and Development (OECD), UKEF is a signatory to the OECD Arrangement on Officially Supported Export Credits (the Arrangement). This sets out, among other things, limits on the maximum credit (repayment) term. All contracts involving loan finance covered by UKEF must be in accordance with the terms of the Arrangement.

UKEF has three products which are suitable for such contracts: 1. Buyer Credit 2. Supplier Credit Finance Facility; and 3. Project Finance Buyer Credit is for contracts of ÂŁ5m or higher. This reflects the amount of work needed to put the facility in place, including the loan agreement. This can be extensive and include the use of technical, engineering, legal advisors and other consultants, depending on the complexity of the contract works and finance package.

Buyer Credits are also more suited for contracts which involve a significant continued page 36

ECONOMIC FOCUS CHAMBER NEWS

from page 35

amount of services, often in the buyer’s country and at the project site.

The Buyer Credit can provide cover for repayment periods of up to 10 years, depending on the loan value and the type of goods or services to be supplied.

The country of the buyer may also affect the maximum credit period. For certain sectors, such as water, renewables or nuclear power generation, the repayment term can be as much as 18 years.

The rate of interest (as with all our finance facilities) is based on ‘pure cover’, that is a floating, variable, interest rate. It may be possible for the lending bank to provide a market-based fixed interest rate.

In accordance with the terms of the OECD Arrangement, the maximum loan amount is up to 85% of the eligible contract value. The remaining 15% of the contract price must be payable direct from the buyer (which may be from a commercial loan that we are not supporting). Loan repayments must start within 6-months from the Starting Point of Credit, usually either Final Commissioning or Delivery, or Mean Delivery / Commissioning if this is applicable.

Supplier Credit Finance Facility (SCF) This is similar to the Buyer Credit but available for contract values as low as £25,000. It is suited to ‘build and ship’ contracts, where the UK supplier is building items of plant or equipment which are then shipped to the buyer.

This is partly because, unlike the Buyer Credit, the SCF was designed for use with contracts where payment would be made using Promissory Notes or Bills of Exchange. Unlike our Buyer Credit, UKEF also does not take documentation risk, as we do with the Buyer Credit loan agreement, for example.

It is possible, if the bank chooses, to offer the SCF on the basis of a ‘Paperless Loan Contract’. This is similar to the loan agreement that the bank would use for our Buyer Credit, but UKEF would not be involved in that documentation process.

The SCF is only available through banks which have entered into certain agreements with UKEF beforehand.

For the standards Bills or Notes SCF, banks must hold a Master Guarantee Agreement (MGA) with us. For Paperless Loan facilities banks must, in addition to an MGA, hold a further agreement called a Supplemental Master Guarantee Agreement (SMGA).

To access the SCF it is helpful to speak first with a bank holding at least an MGA. Unless a bank is willing to provide the facility under their MGA, we cannot give our support.

The terms of the SCF, including loan repayment periods, underwriting and risk assessment, premium etc. are the same as for those under our Buyer Credit. The main difference is in the documentation.

Project Finance Aimed at major projects our Project Finance (PF) product is based on the processes and documentation of our Buyer Credit, although scaled-up to reflect the extra complexity of PF contracts. For PF cases, the loan is repaid from the revenues generated by the operation of the project. Unlike Buyer or Supplier Credits, where our risk assessment is based upon the ability of the borrower to repay the loan, on PF cases our assessment is based on the ability of the project to generate the revenue needed to repay the loan and interest.

Usually, we aim to be involved very early on in the contracting process. This allows us to become familiar with the project, Sponsors, and the other parties involved, including banks but often also other ECAs. It also enables us to start considering the potential risks and other

issues around the project, the finance and security package, and agree with other parties how best to approach the deal.

We can also consider providing Letters of Interest to UK suppliers or banks, which can help when trying to secure your involvement in projects in the early stages of contract tendering.

Short Term Products To boost our support to SMEs we now offer a Bond Support Scheme and Letter of Credit Guarantee Scheme. These can help firms gain access to funding when putting contract bonds in place, including Bid Bonds, Advance Payment Guarantees and Performance Bonds. Our Letter of Credit scheme can help put LCs in place to finance your contract.

In addition, our Working Capital Guarantee Scheme can help exporters access the Working Capital necessary to finance contracts in the early stages.

Each of these products works on the basis that a Participating Banks put the underlying bank facility in place. UKEF then guarantees the bank for a specified percentage of the risk (usually 50%, but up to 80% for our Bond Support Scheme).

These products are provided in conjunction with banks who have signed up to be Participating Banks with UKEF and you should contact the banks in the first instance. A list of Participating Banks is available on our website at: www.ukexportfinance.gov.uk

ARAB-BRITISH CHAMBER OF COMMERCE

37

Choosing your corporate venue is always an important decision because it sets the tone for the entire event Choosing your corporate venue is always an important decision because it sets the tone for the entire event

& Conference & ConferenceBooking Booking Contemporary yet stylish, set in the heart of Mayfair, the Arab British Contemporary yet stylish, set in the heart of Mayfair, the Arab British Chamber of Commerce business meeting rooms combine a central London Chamber of Commerce business meeting rooms combine a central London location with with complete dedication to to service and variety ofof location complete dedication service anddiscretion discretionto to suit suit a a variety corporate meetings and events. corporate meetings and events.

Fully Fully equipped venues typically hold: AGM’s, equipped venues typically hold: AGM’s,Board BoardMeetings, Meetings, Conferences, Conferences, Presentations, Trade Shows, Exhibitions, Product Presentations, Trade Shows, Exhibitions,Workshops, Workshops, Lectures, Lectures, Product Launches, Professional DevelopmentSeminars.

Seminars. Each Each venue venue can Launches, Professional Development can be be customized to meet the individual requirements of your event. customized to meet the individual requirements of your event.

For venue enquires please contact OmarBdour Bdouron on omar@abcc.org.uk omar@abcc.org.uk For venue hire hire enquires please contact Omar +44 (0) 20 7659 4860, or visit our website for more information and the +44 (0) 20 7659 4860, or visit our website for more information and the range range of available venues. of available venues.

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Stationery Stationery Wi-Fi Wi-Fi Administration support Administration support Tea & coffee Tea & coffee Fruit juice & biscuits Fruit juice & biscuits  Still and sparkling water

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39

ADVERTORIAL

UNIVERSITY LAUNCHES INTERNATIONAL HOSPITALITY AND TOURISM DEGREE Anglia Ruskin University, based in Cambridge in the UK, are leading the way in the provision of work-based distance learning education to companies around the globe.

Our latest offering is a fantastic new degree in International Hospitality and Tourism Management, which is available right now and can be completed in just four years.

Developed for those working in, or aspiring to work in, the hospitality and tourism sectors, this degree has been designed with the busy professional in mind.

We have partnered with the Arab British Chamber of Commerce to offer this great new course to members. Students will study topics including Managing Customer Expectations, Marketing, Leadership, Finance, Entrepreneurship and Innovation, Event Management and lots more.

Students will benefit from 24 hour access to a bespoke online Virtual Learning Environment for content and study guides, peer and tutor support, real life case studies, online tutorials and email support.

Successful graduates will receive a UK degree from Anglia Ruskin University and may attend a graduation ceremony in Cambridge or Chelmsford.

Current student Karen Springett said; “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.”

Anglia Ruskin University work with a number of leading international brands, including Harrods, Specsavers, Timberland, Barclays, UPS, the Royal Air Force, Volvo and many

more 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.

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 31,000+ 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 Travel and Tourism, RDI, Schouten University, Excelsior College New York and many more.

We are taking applications now for our 2013 intake. Please visit our website www.anglia. ac.uk/abcc, call +44(0)845 196 6707 or email degreesatwork@anglia.ac.uk.

CONTACTS We are taking applications now for our 2013 intake. Please visit our website www.anglia.ac.uk/abcc, call +44(0)845 196 6707 or email degreesatwork@anglia.ac.uk to find out more and to apply.

ECONOMIC FOCUS CHAMBER NEWS

helping clients grow

also critical they have the option to have their funds held internationally.

What are the key trends in private banking? What services and products are most in demand?

The global financial crisis clearly impacted appetite for risk and many clients have been focused on wealth preservation in recent months.

Economic Focus interviews Sobhi Tabbara, Global Market Head, HSBC Private Bank Middle East, North Africa & Turkey (MENAT) team. Sobhi is also a Member of the HSBC Global Private Banking Executive Committee.

Sobhi, tell us a little about your career in banking before joining HSBC? I began my career in 1986 as a correspondent banker in New York with Republic National Bank of New York, covering the Middle East institutional market.

In 1994, I made a move to Geneva with Republic, to spearhead their private banking efforts in the Middle East. My career with HSBC began after the group acquired Republic National Bank in 1999.

At that point I was named Global Head of Saudi Arabia.

Since then, I have held a number of roles with HSBC, all serving the MENA region.

In December 2010, I became the Head for MENA, for HSBC Private Bank (Suisse) SA, and was appointed as Global Market Head for MENA and Turkey, last year. This means I now manage a team of around 100 people in a range of locations - from Geneva, London and Paris, to Luxembourg, Beirut and Dubai. Although I live in Geneva, my role means I travel intensively across the Middle East and Turkey.

What is HSBC Private Bank’s offering for Arab clients?

Globally, HSBC Global Private Banking provides a range of services to high net

worth individuals and families in some 59 countries and territories. In the Middle East and Turkey – as in all regions - we focus on building long-term relationships by helping our clients grow, manage, and preserve their wealth through a comprehensive product offering and, of course, excellent service.

In my view, HSBC Private Bank is unrivalled in terms of experience in the Middle East and our ability to introduce clients to opportunities on a global level.

Our bankers covering the region combine a thorough knowledge of the local culture with the worldwide connections of the HSBC Group.

Where can Arab clients access your services in the Middle East?

We are committed to being where our Arab clients need us to be. That means we have a presence in Dubai, Abu Dhabi, Kuwait, Qatar, Bahrain, Oman, Jordan and Lebanon.

Having said that, given that most clients prefer to diversify part of their personal wealth outside the region, we also use HSBC’s global footprint to connect clients to leading private banking centres such as Switzerland and Singapore.

For most clients, though it is important they can maintain their relationship manager on the ground for advice, it is

This means a bigger demand for defensive products and fixed assets.

Clients in the Middle East region have traditionally invested in real estate and this continues – but with a greater focus outside the region.

As investors have become more cautious, there has also been an increased focus on fixed income, both conventional bonds and sukuk, as well as precious metal investments.

Looking ahead, which fields of private banking will HSBC focus on?

Our prime focus at HSBC is on the upper end of the private client business. For clients in this category, our strength in corporate and investment banking comes into play, enabling us to manufacture tailor-made products in-house. Through this cross-bank collaboration we can go beyond helping clients manage their assets, to helping them grow their businesses too.

Our strong presence across the globe – particularly in the emerging markets – also enables us to bring international opportunities to clients. We can look outside of a standard private banking offering, to show clients unique opportunities - whether that’s a Chinese IPO or new issues in the fixed income world of Latin America.

Any new products you plan to offer Arab clients?

I actually think the most exciting developments in our private banking offering are not in the field of standardised products, but in creating unique solutions for individual clients and our advisory capacity in respect of, for example, Family Governance.

ARAB-BRITISH CHAMBER OF COMMERCE

41

Given the structure of family companies in the Middle East and particular the GCC, this advice is vital as companies pass through the generations and continue to grow and develop.

What are the main challenges private banking clients in the Middle East region face in 2013?

Clearly, the main challenges in the Middle East are linked to the political and social disruption in the region, which began in 2011. This looks set to continue and will impact how wealth is managed.

The instability is likely to continue to result in clients looking to hold a greater part of their assets outside the Middle East. For HSBC, this is where our global business comes in. We are well placed to offer regional clients international opportunities.

HSBC is a member of the Arab British Chamber of Commerce.

Sobhi Tabbara

ECONOMIC FOCUS CHAMBER NEWS ADVERTORIAL

ENGAGE YOUR CURRENCY RISK In today’s volatile exchange markets it’s imperative that all international businesses exposed to currency fluctuations have the tools and knowledge to manage exposure.

When it comes to foreign exchange payments, the first port of call for many SMEs tends to be the bank. However, banks normally don’t provide this level of service to the majority of SMEs. Typically, Business Banking Relationship Managers have little interest or expertise in the foreign currency exposure of SME customers. Many also take advantage by offering uncompetitive exchange rates and charging high fees. A Global Payment Specialist like AFEX can work with you to understand your specific motivations, ensuring that you achieve the most profitable outcome for your business.

Volatility and the crash The financial crisis of 2007/8, although starting primarily in the US, soon spread to the rest of the world as interconnected debt exposures led to the collapse of banks, loan providers and their insurers. Once credit conditions reversed, almost overnight, risk aversion spread and stock markets plummeted. Governments intervened to support the banking systems and central bank interest rates were slashed in order to avoid an economic collapse and depression, similar to that of the early 1930s. In relation to the currency markets, it saw some of the most significant volatility ever seen.

The current foreign exchange market is characterised by two watershed moments, the collapse of the 1980’s Exchange Rate Mechanism (ERM) and the creation of the Euro zone. It seems incredible now that at around the turn of the century the euro was below parity with the dollar, but we should take this as a warning on currency volatility.

The change in the value of the pound since 2007 has been no less dramatic and there are lessons to be learned from complacency.

From late 2007 onwards, GBP started to decline as interest rates dropped and the credit crunch started to bite. As Lehman Brothers and the US mortgage lenders collapsed around September 2008, contagion

Is your business exposed to currency risk?

Plan ahead for 2013.

AFEX has pioneered customised international payment solutions since 1979, and is now one of the leading providers

s Payment solutions, Forward Contracts and tailor-made Option strategies.

of global payments and risk management solutions. In today’s

s Expert market analysis and commentary.

volatile foreign exchange markets, it is imperative that all

s 17,000 corporate, private and institutional clients worldwide.

international businesses exposed to currency fluctuations have the tools and knowledge to manage exposure. With more than 30 years’ experience, AFEX works with each company

For more information please contact

individually to understand their specific motivations, to ensure

one of our Account Executives

that they achieve the most profitable outcome for their business.

today on: +44 (0)207 004 3939.

afex.com

4th Floor, 40 Strand London, WC2N 5RW

AFEX - Associated Foreign Exchange Ltd. Authorised and Regulated by the Financial Services Authority for the provision of payment services (reference no. 502593). Registered MSB with HM Revenue & Customs (registered no. 1215900). AFEX (Europe) Ltd is authorised and regulated by the Malta Services Authority as an Investment Services Provider (Company Number C51708).

spread globally and wealth was transferred into the safe haven currencies, creating a huge increase in their value. By January 2009, GBP/USD was at 1.38, a 30% decrease in value from a few months earlier. Many importers simply collapsed altogether around this time, as they had no strategy in place, and the decline was beyond the pricing tolerance of their customers.

If your business model is characterised by a reliance on foreign imports, the likelihood is that you will be heavily exposed to currency fluctuations. Foreign currency may not always be the first priority for new importers, but it has the nasty potential to wipe out all of your hard work almost instantly, or at least has the potential to affect your balance sheet detrimentally.

Exporters are likely to have a somewhat different set of concerns. The time between quoting and settlement, along with the ageold imponderables of quality control delays, transportation problems and late payment can end up leaving exporters far more exposed than they envisaged. As the pound devalued over 2008, the number of exporters and frequency of incoming foreign currency has increased significantly. A comprehensive risk management strategy is essential if an exporter wants to safeguard their margins.

Well-established businesses will already have a mature approach to managing currency risk and may well have tried various methods over the years. However, despite a wealth of experience these types of businesses can also be the least open-minded to change and so their experience may not necessarily mean they have the best approach in the current context.

Typical products available for SMEs The days of having to take a default exchange rate from the bank, quite often retrospectively, are over. Today’s financial professional can chose between a wide variety of international

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payment providers, with varying degrees of market access to execute a global transfer.

In addition, the insight you will gain from working with a specialist will prove a valuable addition to your business, and there is no extra cost.

The two basic products available to small businesses are Spot trades and Forward Contracts. It is likely that if you engage in international trade you will have already traded at Spot. However, you should also consider Forward Contracts. There is no extra cost and many companies use them to great effect to gain more control over their currency risk. Some companies will also consider other products (such as Options), but most SMEs use a mix of Spot trades and Forward Contracts.

In today’s volatile foreign exchange markets, it is imperative that all international businesses exposed to currency fluctuations have the tools and knowledge to manage exposure.

AFEX works with each company individually to understand their specific motivations, and ensures that they achieve the most profitable outcome for their business, whether that means cutting down transaction times, buying at specific target exchange rates 24 hours a day, or securing rates in advance of payment dates to protect profits against fluctuations that occur before the invoice due date.

We would be very interested to speak to you and assess whether your current payment process is both competitive and the best solution for your particular needs.

A Spot trade simply involves buying the currency at the prevailing market rate, and settling straight away (between 1 and 3 days).

A Forward Contract involves booking a trade at the prevailing rate for settlement on a future date, with a payment window for greater flexibility. Many exporters employ a strategy to keep each trade on a separate Forward Contract and completely eliminate all risk.

AFEX also has a free online payment system (AFEX Direct); one of the benefits is that you can automate all of your international payments, leaving you with more time to run your business.

CONTACTS

Risk tolerance

For more information please contact Adam Cobbold or another one of our Account Executives on: +44 (0)207 004 3939 or visit afex.com.

A typical SME risk management strategy is usually made up of a Spot Trade or a Forward Contract, depending on the company model and their risk tolerances. Many companies also chose to use a combination of the two, as a 50/50 split covers half of the exposure, whilst leaving the remaining 50 per cent open to market movements. The client then relies on their Account Executive to monitor the market for them, to attain the best rates over a given time.

43

AFEX - Associated Foreign Exchange Ltd. Authorised and Regulated by the Financial Services Authority for the provision of payment services (reference no. 502593).

Registered MSB with HM Revenue & Customs (registered no. 1215900). AFEX (Europe) Ltd is authorised and regulated by the Malta Services Authority as an Investment Services Provider (Company Number C51708).

ECONOMIC FOCUS CHAMBER NEWS

ARAB-BRITISH CHAMBER OF COMMERCE

45

Iraq’s new Free Zone oil and gas hub within the Khor Al Zubair Free Zone, developed by BIOGH in partnership with the Free Zone Authority (FZA).

Basra’s New International Oil and Gas Free Zone For more information, please contact us:

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Profit From Rare Stamps 216% growth in the last 10 years

â€

133%

243% Growth

Growth

in the last 10 years

CIP 1897 SG 85 Empress Dowager, 24ca pale rose-red, 30c surch

GB SG2 1840 1d Black

in the last 6 years

To combat low yields, market volatility and inflation, many investors are turning to tangible, heritage assets like rare stamps.

Uncorrelated with other mainstream assets, investment-grade stamps have a long,

strong, historical record of growth that can help you diversify your portfolio. The Bloomberg listed GB250 Rarities Index shows this clearly with average compound growth of 13.86% over the last 10 years.

Call us on 0845 026 7170 (UK) or 00 44 1534 766 711 (Int) or visit us on www.stanleygibbons.com/ABCC for your free guide †216% growth in the last 10 years, as per the Bloomberg-listed GB30 Rarities Index (STGIGB30). The value of your investments can go down as well as up. Please note: stamps and certain other collectibles are not designated investments for the purposes of the Financial Services Markets Act 2000 (Regulated Activities) Order 2001 and as such are not subject to regulation the Financial Services Authority. We cannot provide advice on personal stamp valuations.

ARAB-BRITISH CHAMBER OF COMMERCE

47

ADVERTORIAL

EVERYTHING YOU NEED TO KNOW ABOUT INVESTING IN RARE STAMPS Diversification is vital to protect wealth in the new fragile economy that has emerged from the worldwide financial collapse over the past few years.

According to the latest survey results released

by Natixis Global Asset Management, market volatility has ‘dampened the confidence’ of UAE investors. As a result, ‘more investors are turning to new approaches to investing and to their financial advisors for answers, but knowledge of alternative investment strategies remains low’.

There are still few investors or financial advisors who have identified the benefits of diversification into alternative tangible asset investments. That is why, time and time again throughout history, financial wealth is destroyed when there is a stock market or house price crash, as most investors are overexposed in these areas.

Historically, during times of rising inflation, rare stamps have performed very well and because of this an increasing number of seasoned investors are placing money into tangible heritage assets.

Rare stamps have proven to be a very stable, non-correlating asset class, largely immune to external economic factors. This stability can largely be attributed to the obsessive passion from collectors pushing the prices up – not the fear, greed and speculation that generally drive investment markets.

Over the last 100 years, according to an independent academic study (Dimson and Spanjaers, 2009) the whole market for British stamps has risen in value by over 5% a year (or 2.9% after inflation) – and this is the totality of GB stamps, not investment grade stamps which would have performed considerably better. To make an interesting comparison, in that period gold has only increased by 0.7% per annum in real terms.

The Stanley Gibbons GB30 Index* – which tracks the performance of thirty of the rarest British stamps – has shown an average annual compound return of 10.8% since

inception at 31 December 1998; Over the past 5 years, as financial and stock markets tumbled, the GB30 Rarities Index rose by 68.3%. The Company’s Commonwealth Rarities Index also reported a compound increase of 168.8% equivalent to an annual increase of 8.6% between 1998 and 2011.

“Performance like this during a time when most investments went down in value shows just how useful rare stamps can be as a means of wealth diversification; The key is that rare stamps are an asset class not correlated with traditional investments” said Stanley Gibbons Global Investment Director, Keith Heddle. ‘It is important that investors recognise the importance of diversification to spread their risk and increase their security.’

Condition, rarity and desirability are crucial in determining the potential financial returns of rare stamps therefore it is vital as a potential investor to find an expert you can trust to recommend investment grade material.

As the world’s oldest stamp dealer and holder of the Royal Warrant, Stanley Gibbons stamp experts are ideally placed to aid investors in the selection of the highest grade investment material.

“Stanley Gibbons only buys and sells material that we verify and authenticate and fundamentally, that we would want to buy ourselves and we are the only philatelic business that offers you a full lifetime guarantee of authenticity on all purchases.” * Stanley Gibbons Indices listed on Bloomberg include: Great Britain 30 Rarities Index (STGIGB30), Commonwealth 30 Rarities Index (STGICO30), and GB 250 Rarities Index (STGIGB25)

CONTACTS To find out more about spreading risk and increasing portfolio security through rare stamps contact Stanley Gibbons Investment Department to arrange a free, no obligation personal consultation: Call 0845 026 7170 (UK) or +44 1534 766 711 (International) or email us on investment@stanleygibbons.com

ECONOMIC FOCUS CHAMBER NEWS

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the horse racing investor A Special Report

ECONOMIC FOCUS CHAMBER NEWS ADVERTORIAL

THE JOCKEY CLUB - AT THE HEART OF BRITISH RACING

British horse racing is seen as the spiritual home of the modern sport that is popular throughout the world, and in particular in the Middle East.

One organisation has been instrumental in developing the sport for the past 260 years, and continues to be at the heart of British racing working for the long term sustainability and continued development of the sport. That organisation is The Jockey Club.

Horse racing is Britain’s second largest spectator activity behind football and The Jockey Club is the leading investor and innovator involved in the sport. It owns 15 racecourses, several of them among the most famous in the world, including Newmarket’s Rowley Mile and July Courses. Newmarket

is considered the headquarters of British horse racing as it was on its renowned ‘Heath’ where the first races under Rules were held in the 17th Century.

The Rowley Mile is home of the QIPCOsponsored 2000 and 1000 Guineas – the first Classics of the season; race titles so synonymous with excellence and heritage that they have been copied throughout the racing world. The picturesque July Course hosts the dazzling July Festival, home of the prestigious sprint, the Darley July Cup, which is one of three British legs included in the Global Sprint

Challenge. The three-day meeting is well known for its stylish and relaxed atmosphere as well as its top-class racing.

Jockey Club Racecourses is also responsible for three of British racing’s crown jewels – the Investec Derby held at Epsom Downs, the Grand National at Aintree, and The Cheltenham Festival. All have attracted enormous TV audiences worldwide of half a billion each, a figure which emphasises the popularity of horse racing across the globe.

The Jockey Club has been one of the driving

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forces behind British horse racing’s success in securing the terrestrial television coverage that is crucial for any sport. Horse racing will have 88 race-days shown ‘live’ on Channel 4 in 2013 – more terrestrial airtime than any other sport. Famous meetings such as Royal Ascot and Glorious Goodwood will be part of the new-look Channel 4 racing coverage alongside all the major days staged at The Jockey Club’s own racecourses. The television coverage will be headed by the ultra-polished presenter Clare Balding, and has secured sponsorship by Dubai for the next four years.

Jockey Club Rooms in Newmarket High Street, in a commercial manner without damaging the Club’s values and heritage. Like the racecourses, any profits are reinvested for the benefit of the sport.

The Jockey Club is also the largest shareholder in the media company, Racecourse Media Group, which includes satellite TV channel, Racing UK, online service, RacingUK.com and betting shop TV service, TurfTV, and a joint venture vehicle selling British racing pictures around the world, GBI.

The Jockey Club Rooms is a must-see for any horse racing fans. With over 250 years of history, it has an unrivalled collection of racing memorabilia and equine art. Outside periods of private use by its members, the Jockey Club Rooms is available as a venue for weddings, high-level business meetings and overnight accommodation.

In 2011, Jockey Club Racecourses welcomed a total of 1.9million racegoers at 360 race meetings. The Jockey Club is the only major multiple sports venue operator in Europe.

More than £167million has been spent on racecourse facilities across its estate over the last eight years, providing racegoers with levels of comfort that are better than most other sports. Equine welfare is paramount and investment in facilities for the horse are a constant priority. Over and above the capital investment in this period, more than £250million has been distributed in prize money , which provides a return to racehorse owners and is important to the livelihoods of trainers, jockeys and stable staff.

Prize money is always in the spotlight .

The Jockey Club has contributed a record £16.8million towards prize money in 2012, emphasising its commitment to reinvest all profits back into British racing and providing leadership by example to other racecourse operators in the United Kingdom.

Innovation is another area that is critical to the sustainability of any sport. The Jockey Club is the largest shareholder in the exciting QIPCO British Champions Series, inaugurated for the 2011 season. The series aims to package all the very best races in the UK Flat season and culminates at Ascot with QIPCO British Champions Day. Last October’s second QIPCO British Champion’s Day was a sell-out in all enclosures and everyone present was treated to one of the sport’s most memorable days.

World champion Frankel, recognised by many as the best racehorse ever, ended his career unbeaten in 14 starts when comfortably mastering the world’s second highest rated horse, Cirrus Des Aigles, in the £1.3million QIPCO Champion Stakes. The sponsorship

by QIPCO has been secured for another five years, making it the largest per year sponsorship in British racing.

The Jockey Club is responsible for the management of 4,500 acres of land in Newmarket and 550 acres of land in Lambourn through Jockey Club Estates.

These training grounds in Newmarket and Lambourn are widely recognised as centres of excellence for training thoroughbred racehorses. Jockey Club Estates also manages a property portfolio, including The

The main objectives of Jockey Club Estates is the continued development of its training grounds and the managing of its property portfolio, including the Jockey Club Rooms.

The aim is to do this in a commercial manner without damaging the Club’s values and heritage.

The National Stud, situated on the outskirts of Newmarket, is the newest addition to the Jockey Club, having been transferred from government in 2008. The National Stud aims to facilitate three main objectives for the good of the thoroughbred breeding Industry: Firstly, it offers a comprehensive range of high-quality services to the thoroughbred breeding industry at affordable prices.

These include stallion services, seasonal and permanent boarding, foaling, sales preparation and spelling facilities. Stallions currently standing at The National Stud are: Bahamian Bounty, Cockney Rebel, Pastoral Pursuits and Dick Turpin. It also aims to provide young people entering the thoroughbred breeding industry with top-class training opportunities using internationallyrenowned education facilities. Lastly, there are regular public tours to operate as an accessible ‘shop window’ to help to raise interest and knowledge of the thoroughbred breeding industry. Visitors can view the stud, including stallions, before enjoying refreshments in the award-winning café.

British horse racing is justifiably proud of the support it provides its people, and again this is an area where The Jockey Club leads by example through its charity , Racing Welfare, racing’s leading charity. Racing Welfare gives professional guidance and support via regional welfare officers to all members of the racing community. Its work includes the provision of homes for the elderly and those new to racing, mobility aids, holidays and assistance, retraining and counselling for those injured or disabled.

As not only custodians of the heritage but also leading commercial innovators, The Jockey Club continues its 260 year long mission of making British racing not only the best in the world, but also the country where lovers of the sport throughout the world love to see their horses bred trained and raced. The Jockey Club really is at the heart of British horse racing.

The article was written by Tony Rushmer

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ECONOMIC FOCUS CHAMBER NEWS ADVERTORIAL

IN PURSUIT OF EXCELLENCE

Since setting up a training yard in North Somercotes, Lincolnshire in 1986, Mark Johnston has been on a journey - a journey in pursuit of excellence in training the thoroughbred horse.

From those humble beginnings, where he and his wife Deirdre virtually rebuilt the dilapidated Bank End Stables themselves and sent out their first winner in Hinari Video in the summer of 1987, Johnston has built a tremendous, and unparalleled, record of success in British horse-racing.

Having moved to the historic Kingsley House Stables in Middleham in North Yorkshire in

1988, Johnston set about revolutionising the way his horses are fed, prepared and raced.

Using the historic Low Moor and High Moor gallops high above Middleham, Johnston patiently added to his empire. Having transformed Kingsley House into a modern racing yard with equine pool and all mod cons, Warwick House was acquired in the town, principally to house members of the juvenile team, and later Park Farm became a vital part

of the Johnston machine. The investment was significant, and slowly, but inexorably, the results on the track began to match Johnston’s ambitions.

In 1994, Johnston trained Mister Baileys to win the first British Classic of the season, the 2,000 Guineas at Newmarket. In that year, Johnston also trained 100 British Flat race winners for the first time, in a total of 117 for the year. Since then, Mark Johnston Racing Limited has sent out at least 100 winners in Britain annually; this represents an unprecedented and unbroken chain of success which now stretches over 19 years. It is also a chain of success with which no other training establishment in the country, whether in Newmarket or elsewhere, can compete.

In 2009, Johnston also became the first flat race trainer to score 200 wins in a calendar year; having broken remarkable new ground in doing so, he has gone on to consolidate the achievement. In 2012 he sent out no fewer than 219 winners, completing the ‘double century’ for the third time in four years. To set these records in some sort of context for the reader, in 2012 only four other British trainers even managed to achieve 100 wins in the year.

These achievements suggest that Mark Johnston Racing Limited is entitled to be acclaimed as the most consistent winnerfinding stable in British horse-racing history.

At the end of 2012, Mark Johnston had trained the winners of 2,977 British Flat races, a figure which means he is on target to have secured his 3,000th win by early Spring 2013, just over 25 years after being granted his trainer’s licence. Bear in mind that these figures don’t take into account the many winners Mark has trained in Ireland, France, Dubai, Germany, Italy, Switzerland and elsewhere in Europe, or the handful of winners he has trained over jumps.

Just in case the statistics have left you cold so far, Johnston’s first 1,000 winners was achieved in record time. Double Honour

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was the horse to bring up the magic 1,000, bursting clear to success under Darryll Holland at Hamilton back in September 2000; the second 1,000 arrived even quicker.

Leamington confirmed the record when successful at Southwell in February 2008. The third 1,000 is scheduled to be the quickest yet!

Some remarkable horses have formed part of that phalanx of winners. The remarkable filly Attraction made history when becoming the first horse to win the 1,000 Guineas and the Irish 1,000 Guineas; Shamardal was trained to be Champion juvenile, winning the Dewhurst Stakes after being writtenoff for insurance purposes as a yearling, and went onto French classic success as a three-year-old for Godolphin; Mister Baileys’ time in winning the 1994 2,000 Guineas was a remarkable one and has yet to be bettered in the race and the gallant Double Trigger won all the top staying races and is immortalised in bronze at Doncaster, where he won the Doncaster Cup three times.

The MJR success story attracted the attention of the Maktoum family, and Mark has been fortunate to train for the family and various of their associated owners over the years. At present, Sheikh Mohammed’s Darley Stud send horses to Mark to run principally in the colours of Sheikh Hamdan bin Mohammed.

Mark’s brief is to search out and develop those horses who might then join Sheikh Mohammed’s Godolphin operation at a later stage in their career. It is a brief in which success has been achieved at the highest level, with the former Johnston-trained pair, Monterosso and Capponi, finishing first and second for Godolphin in last year’s richest race in the world, The Dubai World Cup. The acquisition of Park Farm also meant that Johnston was able to acquire control of all the variables. The land acquired at the Farm meant that Johnston was able to install his own Tapeta and grass gallops, and, just a couple of years ago, the stable stopped using the ‘public’ open gallops in Middleham. Stateof-the-art facilities, especially those directed at the veterinary care of the racehorses, mean that yard is as well-equipped as any in the country, and the yard leads the way in the industry in how it organises, motivates and rewards its staff team.

The yard has also campaigned its horses with tremendous distinction at Britain’s top race-meetings. Mark has been crowned

Leading Trainer at Glorious Goodwood on eight separate occasions and has amassed a magnificent fifty-seven wins there in total.

Royal Ascot is also hugely important to Mark and his team. When Fennell Bay won the King George V Stakes for Sheikh Hamdan bin Mohammed al Maktoum in 2012 he gave Johnston his 35th winner at the Royal Meeting in all, and the yard have won most of the top prizes there, including The Ascot Gold Cup, the St James’ Palace Stakes, the Coronation Stakes and the King Edward VII Stakes.

A qualified vet, Johnston has always held strong views about the way the racing industry should be organised and, unlike many of his peers, he has never been afraid to make those views public. In 2011, it was announced he

was to join the Board of the BHA (The British Horseracing Authority) as a director and he is also a non-executive Director of Hamilton Park Racecourse.

Johnston takes these roles seriously, and sees in them his opportunity, and partly his responsibility, to contribute his knowledge to an industry in which he has enjoyed so much success. But when all is said and done, Johnston is at his happiest, and most effective, when working at home with his string. There’s an attention to detail in everything he does; a passion for horses and an innate understanding of them. He knows his job is to bring out the best in these animals for the benefit of his owners. For him, nothing but excellence will do.

CONTACTS Mark Johnston Racing Park Farm, Middleham, North Yorkshire DL8 4QZ United Kingdom Web: www.markjohnstonracing.com Tel: 0044 (0)1969 622237 Email: info@markjohnstonracing.com

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ECONOMIC FOCUS CHAMBER NEWS ADVERTORIAL

BRITISH BLOODSTOCK MARKETING IS ON HAND TO OFFER IMPARTIAL ADVICE Horse racing has been known as the Sport of Kings ever since King James I first raced his horse across the flat land around Newmarket in 1604. The sport has grown enormously since those early roots, and is now a massive global business enjoyed by millions.

At the heart of it all is of course the horse. There can be few greater thrills than seeing your colours carried to success on the racecourse, and it is this dream that lures countless new investors into the sport each year.

Owning a horse is no guarantee of success, with only a small percentage of horses providing a large financial return for their owner, but it is hard to put a price on the thrill and excitement of owning a racehorse.

There are two main routes into ownership – buying a horse at public auction, or breeding your own.

Sales are held around the world and in Britain they are hosted by Tattersalls in Newmarket and by Doncaster Bloodstock Sales (DBS) in Doncaster, as well as more minor sales at Brightwells in Ascot. Horses bred to race on the Flat are sold at public auction either as foals, yearlings (one-year-olds), two-year-olds (ready to race), or later as a horse in training.

The latter two offers the opportunity for the quickest return on investment as (in theory!) the horse is ready to race. The horses in training sale held by Tattersalls each October is the largest of its kind held worldwide and sees horses purchased to race around the globe, particularly in the UAE and Saudi Arabia, as well as Australia and America.

Uniquely, Tattersalls still conducts its auctions in guineas (£1.05). The highest price paid for a yearling there this autumn was 2.5m gns for a half-brother to the 2007 Derby winner Authorized, while the highestpriced foal, at 500,000gns, was a full-brother to another colt who finished second in the 2010 Derby. Both colts were purchased by Sheikh Fahad Al Thani of Qatar, who has become such a major investor in racing in the last few years.

The Federation of Bloodstock Agents (http://www.race-horses.com/ agents/fba/fba.htm) can offer advice on buying at auction, while a Guide to The Sales is available on the website of both Tattersalls (www.tattersalls.com) and DBS (www.dbsauctions.com). The Thoroughbred Breeders’ Association is available to offer advice on all aspects of breeding and owning breeding stock (www.thetba.co.uk) Alternatively, British Bloodstock Marketing is on hand to offer impartial advice and is always happy to assist both newcomers and seasoned professionals on their visits to the sales or to Britain’s many stud farms and training centres.

Flying the flag for British thoroughbreds If you want to get involved in the thrill and excitement of horseracing, then contact British Bloodstock Marketing.

Whether you need impartial advice, assistance at the sales, or just want to visit one of Britain’s many leading studs or historical racecourses, make British Bloodstock Marketing your first point of contact.

www.britishbloodstockmarketing.com +44 (0) 1638 675 940

Another route into racehorse ownership is to breed your own horse.

This is a more time-consuming and costly route as it involves purchasing a mare, breeding her, waiting 11 months for the foal to be born, and then waiting another two years until that foal is old enough to begin training.

Stallion fees vary hugely, from a high of £125,000 commanded by the outstanding Horse of the Year Frankel, down to a couple of hundred pounds. As with everything, you get what you pay for in terms of talent, but as breeding racehorses is no exact science there is no guarantee that paying a high fee to use a champion stallion will ensure you a champion foal.

Racing is a glamorous, bewitching world, at times thrilling and mysterious, and it is essential to seek good advice before plunging into ownership or breeding.

Stay in touch by following us @bbm_uk

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17/09/2012 11:20

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ADVERTORIAL

Carnival time in Dubai

purse, but he also secured victory for the home team of Godolphin, Dubai’s racing operation in the emirate’s flagship contest for the first time since Electrocutionist won in 2006.

The Dubai World Cup, the highlight of a nine-race card at the end of every March is in turn the culmination of the Dubai World Cup Carnival, a three-month long festival of racing which attracts the world’s best horses, trainers and jockeys. In total the international racing season at Meydan Racecourse is worth a substantial $37,36m, yet impressive as the numbers are the reach of Meydan extends well beyond the world of racing.

The image of 2012 Dubai World Cup- winning jockey, Mickael Barzalona, standing tall in his stirrups and brandishing his whip in a triumphant salute will live long in the memory of international race fans.

That elaborate show of jubilation, which occurred before the end of the US$10m race, earned the 21-year-old Frenchman a wrist-slapping from Emirates Racing Authority stewards, who prefer jockeys to wait until after the finish post before dropping their reins. Yet Barzalona’s

impulsive reaction can be taken as a measure of what victory in the world’s richest race means to the select few who have won it.

Not only had the young rider just claimed a share of the winner’s $6m

“Meydan Racecourse is known throughout the world as the home of the Dubai World Cup Carnival and the stage for the world’s richest horserace, the Dubai World Cup, one of the greatest spectacles in world racing” said Mohammed Abdul Nasser Al Khayat, Meydan’s Head of Commercial & Free Zone. “Yet the Meydan concept also comprises so much more. We think of horseracing as the beating heart of our brand, driving the development and expansion of a far-reaching vision set out

by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.”

The iconic racing facility has long been associated with six Pillar Partners including Emirates Airline, Longines, Dubai Duty Free, Gulf News, The Saeed & Mohammed Al Naboodah Group and Al Tayer Motors who all sponsor races on Dubai World Cup day as well as race meetings throughout the season.

The grandstand houses a 285-room five star hotel and its restaurants, the 4,500 capacity Sky Bubble and an IMAX continued page 60

ECONOMIC FOCUS CHAMBER NEWS

from page 59

theatre. It regularly hosts high profile large audience-capacity concerts, recently welcoming Katy Perry and Usher, Atelier Festivals and Chris Brown. With The Track golf course and Meydan Tennis Academy situated alongside, it is also the hub from which the commercial development of Meydan Freezone and Meydan City radiate.

In addition to these on-going developments, the Hadaeq Sheikh Mohammed Bin Rashid garden community, situated between the Burj Downtown district and the Meydan Grandstand was recently announced, providing 1000 villas, city parks and recreational spaces.

Meydan City was developed through the vision of Godolphin founder, Sheikh Mohammed. Under his guidance a new cityscape is set to spring up which combines sport, leisure, business and luxurious residential living. Meanwhile Meydan Freezone is set to drive business into the area, offering competitive start-up costs that are open to all business sectors.

Tax free status and the opportunity for 100 per cent foreign-owned companies further adds to the appeal.

Entisar Tower, the new ’vertical community’ on Sheikh Zayed Road, to comprise luxury residential, office and retail space as well as a series of private and communal ‘sky gardens’, is also a new addition to the Meydan portfolio.

Meydan City will feature four distinct sub-districts – Meydan Racecourse; Meydan Metropolis, a series of stateof-the-art business parks; Meydan Horizons, where residential and business towers intermingle with luxury waterfront developments; and Meydan Godolphin Parks, a shopping destination, featuring a signature mall.

Meydan Heights – the residential pilot community developed in partnership with Emirates Airline, is well into construction with 528 villas due to be completed in 2013.

Open for business now is Meydan Beach, the high-end stand-alone beach facility situated in Dubai Marina and home to two infinity pools, the Café de Mar chillout lounge, boutique spa and gym.

It also houses the renowned Milanese restaurant Giannino, the first venture for the brand outside of Milan.

‘Meydan’ is an Arabic word which translates into English as ‘meeting place’

Roger Varian is a Group 1-winning racehorse trainer, based in Newmarket, the headquarters of British horseracing.

Roger has held a license for just two seasons and in that time he has made a significant impact both domestically and on an international stage. Recent stable star Nahrain provided Roger with his biggest successes to date when winning the Group 1 Prix de l’Opera at Longchamp (Paris) on Arc Day and

- a wholly appropriate name for the facility and its surrounding projects. Meydan is the focal point that draws together not only the world’s best horsemen and the most valuable Thoroughbreds but also people and businesses from the UAE, the region and the world.

As Sheikh Mohammed, the man behind the plans once said: “To dream of the future is one of the most beautiful things in life. We are not content only to dream, we also work hard, because our ambitions are great and so are our dreams.”

the Grade 1 Flower Bowl Invitational at Belmont Park (New York). Roger has also enjoyed big-race triumphs with the likes of Sri Putra, Shimmering Surf and Beyond Desire. His stable is on an upward curve recording 53 winners in 2011 and improving to 71 winners in 2012.

For more information about Roger visit www.varianstable.com or email info@varianstable.com

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Protecting your best interests in international trade Trade links between the Arab world, the UK and Asia are becoming increasingly strong. Whether your business leads on brand identity or technology value, IP is a key element in establishing your position in the marketplace. It is vital that you work with advisers who have the right experience and expertise to protect your IP â&#x20AC;&#x201C; and help you to exploit its full potential.

At Marks & Clerk, our unrivalled resources in Europe, Asia and North America, and long-standing relationships with leading IP firms worldwide, allow us to give you access to a wide range of services nationally and internationally. With the recent addition of Australia to our network of offices, we are better placed to meet all of your IP needs and requirements.

Our commercial approach combined with local knowledge and expertise enables us to tailor our services to create the most effective IP strategy for your business. From the smallest inventive step to the largest commercial leap, from information technology to biotechnology, we are here to ensure that you get the maximum value and benefit from your IP. To find out how we can help you to protect your best interests, please contact: Matthew English, Partner (Singapore) menglish@marks-clerk.com.sg Michael Lin, Partner (Hong Kong) mlin@marks-clerk.com Gerald Samuel, Director (Malaysia) gsamuel@marks-clerk.com.my James Cleeve, Partner (China) jcleeve@marks-clerk.com

www.marks-clerk.com

ARAB-BRITISH CHAMBER OF COMMERCE

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ADVERTORIAL

EXPANDING INTO ASIA: IP OPPORTUNITIES FOR ARAB-BRITISH BUSINESS The intellectual property scene in Asia is changing quickly.

In 2010 for the first time, patent filings in East Asia (China, South Korea and Japan) exceeded those in North America. It was back in 2004 that they overtook Western Europe. And in 2011 for the first time, the Chinese Patent Office (CPO) received more invention patent applications than the United States, making the CPO the largest in the world.

Malaysia

We have recently seen many Asian cities, like Hong Kong, Kuala Lumpur, Shanghai and Singapore implementing programmes and reforming IP legislation in order to make their economies more competitive for research and development-led industries.

The first such move was the Multimedia Supercorridor (MSC), which allowed both local and overseas businesses that applied for MSC status tax exemption for up to 10 years and unrestricted employment of local and foreign knowledge workers. Years later, in 2005 the Biotech Corporation of Malaysia was established to develop a national biotech industry. A special status, ‘Bio-Nexus status’, has allowed many companies to receive similar benefits to MSC organisations, together with advisory on IP, regulation and employment-related matters and others.

Any business looking eastwards should take note of the structures being put in place to encourage creative Middle Eastern and Western companies to set up shop.

Singapore Since 2002, Singapore has been developing its status as an IP Hub, with the creation of a registry for patent agents and a Patent Agent Examination Regime in 2003. The following year, the Patents Act was amended to improve its flexibility and substantial amendments have been made since.

What is more, grants for private sector R&D, together with the generation of IP and its commercialisation and management are serving to create a vibrant environment of innovation.

Hong Kong Hong Kong’s IP system has traditionally relied on re-registrations of Chinese, British or European Patent Office patents. However, in 2013 it is expected that the Government will establish a new kind of patent: an original grant patent (or OGP), strengthening the Special Administrative Region’s IP system.

An IP exchange in conjunction with Chicagobased IPXI will also allow IP owners and others to commercialise their IP in a whole new way, once it is set up. Discussions are on-going as to the specific form that this exchange will take.

Together with a raft of schemes intended to encourage homegrown IP within Malaysia, including several grants and government agency programmes, the Malay Government has also set in place IP-led initiatives aimed at foreign companies.

In order to promote innovation, the Government has set up an organisation known as the Malaysian Innovation Agency, which is known by its acronym in the Malay language as “AIM”. One of its key initiatives is to have a national biomass strategy to drive new innovative solutions to convert the biomass produced by the palm oil plantation mills into energy.

Shanghai China’s second city has been a focus for much investment since the turn of the century. In 2011, following the establishment of an IP exchange specifically for musical works, where rights to material can be exchanged like any other asset, it was announced that a further exchange will be set up to promote further commercialisation of IP such as patents and trade marks.

In 2009, China finalised its third revision to its Patent Law, and it is also now in the process of reviewing its copyright and trade mark laws, with changes expected to be finalised this year. These legislative reviews, in combination with recent judicial decisions, have provided clarity for IP-led industries and have further encouraged activity among foreign companies.

Furthermore, some banks in Shanghai and some other Chinese cities are providing business loans based on IP as collateral.

What should businesses looking to expand into Asia do?

Look not only at where you want to expand your consumer base, but also where you want to want to install your supply chain (e.g. manufacturing plants).

As much of the value of patents and trade marks lies in the stopping of copiers, understand where your competitors are located, where they are manufacturing, where they are trans-shipping, and where they are selling, and file your IP in those jurisdictions.

Find out what protection for your products or services are available in the jurisdictions you are looking at and discuss your options with a local expert.

Check whether your products will infringe a local competitor’s IP rights if you set up shop.

Research the opportunities and nontraditional incentives, e.g. tax incentives, for IP-led industries provided by each market.

By addressing these points, as well ensuring you are fully protected when entering a new region, you can also make sure not to miss out on other benefits different markets can offer.

Matthew English, Partner (Singapore), Marks & Clerk Asia LLP Michael Lin, Partner (Hong Kong), Marks & Clerk Asia LLP Gerald Samuel, Director (Malaysia), Marks & Clerk Asia LLP

ECONOMIC FOCUS CHAMBER NEWS

British Economic Survey

The British Chambers of Commerce Quarterly Economic Survey for the 4th quarter 2012 received over 7,500 business responses. The respondents cover the entire United Kingdom, and were surveyed by postal and online questionnaires over the period 12 November to 5 December.

In the manufacturing sector 2,127 firms, employing approximately 350,000 people, responded. 1,373 (65%) of manufacturing respondents were exporters. In the service sector 5,535 businesses with approximately 600,000 employees responded. Of the service sector participants, 2,377 (43%) were exporters.

While the majority of respondents employ fewer than 500 people, the sample included 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.

summary The Q4 2012 results show welcome progress compared with Q3. But many balances are still weak by historical standards.

The economy is facing major challenges. But the results reveal resilience amongst UK businesses, coupled with rising confidence that the outlook will improve. For both manufacturing and services, almost all the key Q4 balances are stronger than in Q3. But, for both sectors, the domestic balances remain well below their pre-recession levels in 2007. The export balances are also below their 2007 levels for manufacturing, but are higher than in 2007 for services.

The investment balances strengthened in Q4, but are still inadequate. The cashflow balances, though higher, are weak; and service cashflow is still negative. Confidence is still weak by historical standards, particularly in services.

But the marked increase in confidence in Q4, in both sectors, reinforces our view that the economy will recover slowly in 2013. Plans to raise prices are higher, notably in manufacturing; but it is questionable if these price intentions can be realised in the face of weak demand. Inflation remains a major concern for businesses in both sectors.

ARAB-BRITISH CHAMBER OF COMMERCE

65

Domestic Market The domestic balances improved in Q4, but all are still relatively weak by historical standards. Though higher than in the 2008-09 recession, the Q4 domestic balances are lower than their longterm historical averages, and are well below their 2007 pre-recession levels.

In manufacturing, the balance for home deliveries rose 5 points, to +8%, while the home orders balance increased 9 points, to +3%. Both Q4 domestic manufacturing balances, though higher than in Q3, were lower than in the first two quarters of 2012. The service home deliveries balance rose 10 points in Q4, to +11%, the best level since Q2 2010. The service home orders balance increased 9 points, to +7%, best equal level since Q2 2011. For both sales and orders, the service domestic balances are stronger than the equivalent manufacturing balances.

Export Market Most national export balances improved slightly in Q4; but the manufacturing balance for export deliveries remained the same as in Q3, at +13%. The manufacturing balance for export orders rose 3 points, to +11%. The service export deliveries balance rose 5 points, to +24%, best equal level since Q3 2007.

The service export orders balance rose 3 points, to +18%. The service export balances are satisfactory by historical standards, and are now higher than their average pre-recession levels in 2007. But the manufacturing export balances are still inadequate.

Investment The national investment balances rose

in Q4, but they are relatively weak by historical standards, notably for services.

The balance of manufacturing firms planning to increase investment in plant & machinery rose 4 points, to +11%, still weaker than in Q1 2012. Manufacturing intentions to invest in training rose 6 points, to +20%. The balance of service firms planning to increase investment in plant & machinery rose 2 points, to +5%.

Service sector intentions to invest in training rose 4 points, to +14%.

Business Confidence The national confidence balances rose markedly in Q4, and are much stronger than in the 2008-09 recession; but balances are relatively weak by historical standards, particularly for services, and well below their average prerecession levels in 2007. Manufacturers’ turnover confidence balance rose 9 points in Q4, to +41%. Manufacturers’ profitability confidence balance increased 12 points, to +30%, equal to the highest level since Q4 2007. The service sector’s turnover confidence balance rose 10 points in Q4, to

+38%, the best level since Q1 2008. Service profitability confidence increased 8 points, to +22%, the best level since Q4 2007.

Capacity Utilisation and Cashflow The share of manufacturing firms operating at full capacity fell 5 percentage points, to 39%. In services, the share of firms operating at full capacity was unchanged, at 36%. The cashflow balances improved, but are weak and the service balance is still negative. The manufacturing cashflow balance rose 7 points, to +3%. Services cashflow increased 3 points, to -1%.

Intentions to raise prices strengthened in both sectors. The balance of manufacturing firms reporting pressure to increase prices surged 21 points, to +36%, the highest since Q2 2011. The balance of service firms expecting to raise prices increased 5 points, to +21%, the highest since Q1 2012.

Economic Climate The Q4 2012 results support our doubts over the official ONS GDP figures. The contrast between weak output and robust jobs growth implies declines in productivity that are questionable. Our survey, which signals stronger GDP growth than the ONS in the first half of 2012, but a weaker rebound in Q3, gives a better picture of the true position. In interpreting the differences, it is important to note that our members give a smaller weight than the ONS to distortions resulting from the Diamond Jubilee or ticket sales for the Olympics.

Fears that the economy has returned to negative growth in

Q4 2012 are not supported by our survey. We expect modest recovery in 2013, but it is clear that UK growth is inadequate and must be boosted. This reinforces the case for a twopronged strategy that combines firm adherence to cutting the fiscal deficit, with effective policies aimed at enabling the private sector to drive recovery and create jobs. The economic environment will remain challenging, with a prolonged period of below-trend growth. But British businesses remain resilient, and growth will gradually improve in the next few years. continued page 66

ECONOMIC FOCUS CHAMBER NEWS

from page 65

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 Q4 2012 national domestic balances show an improvement compared with Q3 2012, for both manufacturing and services. But all the balances are still relatively weak by historical standards.

For both sectors, the forward-looking balances for home orders are lower than the delivery balances. All the domestic balances are now positive, and are higher than their average levels in the recession of 2008-09. But the home balances are lower than their long-term historical averages, and are well below their average pre-recession levels in 2007.

The manufacturing sector’s net balance for domestic deliveries rose from +3% in Q3 to +8% in Q4. The net balance for manufacturers’ home orders rose from -6% in Q3 to +3% in Q4 and moved back into positive territory. Both Q4 domestic manufacturing balances, though

higher than in Q3, were lower than in the first two quarters of 2012. Micro manufacturers recorded the weakest Q4 net balance for domestic deliveries, and medium-sized firms registered the worst balance for home orders.

The service sector’s balance for home deliveries rose from +1% in Q3 to +11% in Q4, the best level since Q2 2010. The net balance for service home orders rose from -2% in Q3 to +7% in Q4, equal to the best level since Q2 2011.

For both sales and orders, the service domestic balances are stronger than the equivalent manufacturing balances.

Micro service firms recorded the weakest Q4 balances, for both home deliveries and home orders.

The Regional Perspective The Q4 manufacturing balances for home deliveries were in negative territory in

two regions, while ten regions were in positive territory. In the case of home orders, four regions were in negative territory in Q4, while eight regions were in positive territory. Comparing the manufacturing sector’s domestic performance across the various regions, the weakest Q4 net balances were in the North East, at -22% for home sales and at -33% for home orders.

The Q4 service sector’s net balance for home deliveries was in negative territory in one region, while eleven regions were in positive territory. In the case of home orders, two regions were in negative territory in Q4, while ten regions were in positive territory. Comparing the service sector’s domestic performance across the various regions, the weakest Q4 net balances were in Scotland, at -27% for home sales and at -21% 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 Most national export balances improved slightly in Q4 2012, but one

manufacturing balance remained unchanged. The service export balances are satisfactory by historical standards.

But the manufacturing export balances

are well below their average prerecession levels in 2007; they are still inadequate, given the challenge of rebalancing the economy towards

ARAB-BRITISH CHAMBER OF COMMERCE

net exports. For both manufacturing and services, the export balances are stronger than the equivalent domestic balances. The net balance for manufacturing export deliveries was +13% in Q4, the same as in Q3. The manufacturing balance for export orders rose from +8% in Q3 to +11% in Q4.

Both Q4 export balances were lower than in the first two quarters of 2012. The manufacturing sector’s export balances remain weaker than the service export balances. Medium-sized manufacturing firms recorded the weakest Q4 export balances, for both deliveries and orders.

Both service export balances increased in Q4. The service export deliveries balance rose by 5 points in Q4, to +24%, best equal level since Q3 2007. The service export orders balance increased by 3 points in Q4, to +18%. Both service export balances are now higher than

their average pre-recession levels in 2007. Medium-sized and large service sector firms recorded the weakest Q4 export balances for export deliveries; medium-sized firms recorded the weakest Q4 balance for export orders.

The Regional Perspective The Q4 2012 manufacturing sector’s net balances for export deliveries were in negative territory in five regions, while seven regions were in positive territory.

In the case of export orders, we find the same pattern: five regions were in negative territory, while seven regions recorded positive balances. Comparing manufacturing export performance across the various regions, the weakest Q4 net balances were in the North East, at -30% for export sales, and at -21% for export orders. At the other extreme, the strongest Q4 manufacturing export

67

balances were in the South East, at +49% for export deliveries, and at +49% for export orders.

The Q4 2012 service sector balance for export deliveries was in negative territory in one region; one region was at 0%, while ten regions were in positive territory. In the case of service export orders, two regions were at 0% in Q4, while ten regions were in positive territory. Comparing service sector export performance across the various regions, the weakest Q4 balance for export sales was in Northern Ireland, at -1%; and in Scotland and the South West for export orders, both at 0%. At the other extreme, the strongest Q4 service balances were in the Eastern region, at +67% for export deliveries, and at +67% for export orders.

Investment Q

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

The National Perspective The investment balances for both manufacturing and services moved upwards in Q4 2012. In the manufacturing sector the investment in plant and machinery balance increased from +7% in Q3 2012 to +11% in Q4 2012. The investment in training balance moved upwards to +20%, from +14% in Q3 2012. This is the strongest result since Q1 2008. The service sector also showed improvement with upward movements in both indicators. The investment in plant and machinery balance increased to +5% from +3% in the previous quarter and the investment in training balance increased to +14%

from +10%. The index for the investment in training balance was last seen at this level in Q2 2008. But both services balances remain relatively weak, with both on average 25 points below their peaks last seen in Q3 1997.

The Regional Perspective In the manufacturing sector the investment in plant and machinery balance showed Wales the only region to record a negative balance (-6%). The East Midlands and Northern Ireland followed from Wales, recording weak balances, both at (+2%). The strongest results were recorded in the North East (+27%) followed by the South West (+26%).

The investment in training balance was lowest for Scotland (-8%) and highest for London (+46%).

In the services sector Scotland was the only region to record a negative balance for the investment in plant and machinery balance (-37%), with the national balance currently at a low level of +5%. The strongest positive balance was recorded in the East of England at +25%. The investment in training indicator recorded positive balances for all regions, with the strongest result at +24% for the East of England and the lowest balance seen in Scotland (+1%).

continued page 68

ECONOMIC FOCUS CHAMBER NEWS

from page 67

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

The National Perspective In Q4 2012, the national confidence balances recorded marked increases, for both manufacturing and services. The Q4 confidence balances remained much stronger than their average levels in the recession of 2008-09, but the service balances were still relatively weak by long-term historical standards. All the Q4 confidence balances remain below their average pre-recession levels in 2007.

The confidence balance that manufacturing turnover will improve in the next 12 months increased from +32% in Q3 to +41% in Q4, but was still weaker than in Q1 2012.

The confidence balance that manufacturing profitability will improve in the next 12 months rose from +18% in Q3 to +30% in Q4, the equal-highest level since Q4 2007.

Small manufacturing firms recorded the weakest Q4 balance for turnover confidence, and micro manufacturing

firms recorded the weakest Q4 balance for profitability confidence.

The confidence balance that service sector turnover will improve in the next 12 months rose from +28% in Q3 to +38% in Q4, the best level since Q1 2008. The confidence balance that service sector profitability will improve in the next 12 months rose from +14% in Q3 to +22% in Q4, best level since Q4 2007.

The Regional Perspective The manufacturing sector’s Q4 2012 net balances for turnover confidence were in positive territory in all twelve regions.

In the case of profitability confidence, we find the same pattern, with all twelve regions recording positive balances.

Comparing manufacturing confidence across the various UK regions, the weakest Q4 confidence balances for turnover were in Scotland and the North East, both at +13%; and in Scotland for profitability, at +3%. At the other extreme, the strongest Q4 manufacturing

Capacity utilisation and cashFLow Q Are you currently operating: At full capacity/Below full capacity

Q During the last 3 months how has your cashflow changed: Improved/Same/Worsened

confidence balances were in the Eastern region, at +74% for turnover, and at +67% for profitability.

In the service sector, the Q4 2012 balances for turnover confidence were in positive territory in eleven regions, while the balance for Scotland was negative.

In the case of profitability confidence, we find the same pattern: eleven regions were in positive territory in Q3, while the balance for Scotland was negative.

Comparing service sector results across the UK, the weakest Q4 confidence balances were in Scotland, at -17% for turnover, and at -31% for profitability.

At the other extreme, the strongest Q3 service sector balances were in the South West, at +63% for turnover confidence, and at +49% for profitability confidence.

ARAB-BRITISH CHAMBER OF COMMERCE

CAPACITY UTILISATION The National Perspective In the manufacturing sector the capacity utilisation result decreased by five percentage points, from 44% in Q3 2012 to 39% in Q4 2012. It now stands seven percentage points below its peak in Q4 2007.

In the services sector the percentage of firms stating that they were operating at full capacity remained unchanged for three consecutive quarters at 36%.

The percentage of firms stating that they were operating at full capacity has averaged 36% for the last two years.

The Regional Perspective In the manufacturing sector the highest proportion of firms reporting that they were operating at full capacity was recorded in Scotland (74%) exceeding the national average of 39%, followed by

London (46%) and South East (43%).

The region with the lowest capacity utilisation figure was Wales (21%).

In the services sector the two regions reporting the highest capacity utilisation figure were Yorkshire and the Humber (45%) and the West Midlands (45%).

CASHFLOW The National Perspective In the manufacturing sector the cashflow balance moved back into positive territory increasing by seven points to reach +3%.

The last quarter was the only negative balance recorded for cashflow this year.

Nevertheless, the balance remains weak and this balance is now 15 points below its peak last seen in 2006 Q4.

In the service sector the cashflow balance rose by three points, reaching -1%. This is somewhat of an

69

improvement with the balance averaging -3% for the year of 2012. This balance has not been positive since the third quarter of 2008, with 0% the highest balance achieved since in Q4 2010.

The Regional Perspective In the manufacturing sector the South East (42%), Scotland (10%), South West (6%), London (5%), Yorkshire and Humber (1%) and the East of England (1%) were the regions recording positive cashflow balances. Of the remaining regions, the North East (-17%) recorded the lowest result.

In the services sector, Wales (-12%), the South East (-9%), London (-8%), North East (-7%), Northern Ireland (-5%) and Scotland (-4%) all recorded negative results. Of those in positive territory the East of England (+16%) returned the strongest result.

External Factors Q Please indicate which of the following factors are more of a concern to your business than 3 months ago: Interest Rates / Exchange Rates / Business Rates / Inflation / Competition / Tax

Manufacturing Manufacturing firms, at the national level, recorded divergent movements in their anxiety levels in Q4; but declines exceeded increases. Exchange rate worries fell markedly, from 41% to 34%, but remained manufacturers’ biggest equal area of anxiety along with inflation; medium-sized firms (51%) expressed the highest concern. Inflation worries fell from 40% to 34%, but was still manufacturers’ other biggest equal area of anxiety; small firms (40%) signalled the highest concern. Competition worries eased from 36% to 32%; micro firms (45%) expressed the biggest concern.

Corporate taxation concerns were unchanged, at 20%; micro firms, at 34%,

signalled the highest level. Business rate worries eased from 19% to 17%; micro firms, at 28%, signalled the highest level.

Interest rates concerns increased from 11% to 14%; micro firms (20%) signalled the highest level.

Services Service sector firms, at the national level, also recorded divergent movements in their anxiety levels in Q4. Inflation worries eased marginally in Q4, from 39% to 38%, but remained the biggest equal area of anxiety for service firms; large firms (42%) signalled the highest level. Competition worries rose from 35% to 38%, and was the other biggest equal area of anxiety for service firms;

small service firms (40%) signalled the highest level. Corporate taxation worries rose from 21% to 26%; large firms (32%) signalled the highest concern. Business rate worries increased from 20% to 23%; small firms (27%) signalled the highest level. Interest rates concerns edged up from 14% to 15%; large firms (19%) signalled the highest level. Exchange rate worries eased from 17% to 15%; medium sized firms (20%) signalled the highest concern. Service firms are much less concerned than manufacturers over exchange rates.

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

ECONOMIC FOCUS CHAMBER NEWS ADVERTORIAL

Helping bridge a link between the uk and the gulf

Our story is a promising experience for small companies and small enterprises that are looking to export to a vibrant and wealthy region. Our company EM & Partners (Ltd.) has been formed on 2010 and based in North Wales - UK. Our aim is to promote trade between UK and Gulf countries and the Middle East. Our target products are mainly UK manufactured Healthcare products.

The main products of regular need are (among many more) rehabilitation equipments of UK manufacturers as well as continuous supplies of surgical sutures, Rapid IVD Test kits Rapid Cancer Marker Tests, Cardiac Market Tests, Drug of Abuse Tests, Fertility Tests and Infectious Disease Tests Products of different UK as well as from other European manufacturers.

Despite the high international competition in the Gulf markets from other important players such as China and India there is still a big potential for more business that suits individual companiesâ&#x20AC;&#x2122; needs. UAE being the business hub of the region and the main destination of all international trade to the Middle East, where 80% of trade

is re-exported towards surrounding countries and only 10% is used for the local market.

Our experience have shown us that the business approach to the region is mainly a cultural one as people prefer to do business with people they have met face to face. Weâ&#x20AC;&#x2122;ve been carrying on regular visits to our regional customer companies as well as regular meetings with their business managers. We have the advantage of being Arabic speaking as well as a local setup that facilitated our contacts, meetings and the follow-up etc. The UK Trade and Investment, has been of great help as they usually display addresses and requests from Gulf based companies seeking business links in the UK. Particularly the Dubai based office (Mr. Lee Jennings) had provided us extensive support.

Our customer companies in the UAE

are feeding local world class large hospitals as well neighbouring regional ones. Despite of the trade exhibitions organized as well as local businesses rush to obtain UK healthcare product distribution-ships rights for the region there is still a large room for fulfilling the local demands for high quality healthcare products. The key to success to our business and to all other small businesses like ours is the continuous visits and presence on the ground looking for our customers needs so as to try fulfil them from our side.

The market is so dynamic and always seeking innovations, i.e. new healthcare products of any type. From their side they are always rushing to UK & European markets seeking distribution-ship rights for any newly manufactured products. There is always room for small businesses to continually visit and explore local businesses needs. The more contacts we establish the more dynamic our business becomes and grows.

ARAB-BRITISH CHAMBER OF COMMERCE

CONTACTS EM & Partners Ltd Bangor, Gwynedd, North Wales, United Kingdom, LL55 3AE info@emandpartners.co.uk +44(0)1248 670000 +44(0)1248 670606

71

ECONOMIC FOCUS CHAMBER NEWS

Seminar on Palestinian Private Sector On 25 September 2012, the Chamber was pleased to host H E Professor Manuel Hassassian, the Palestinian Ambassador to the UK, accompanied by a high-level delegation from Palestine.

Participants in the Ambassadorial Business Roundtable included member companies of the Chamber with an interest in Palestine from a variety of sectors as well as members of the Chamber’s Board of Directors.

Dr Afnan Al-Shuaiby, ABCC Secretary General and Chief Executive, warmly welcomed the Ambassador and the Palestinian delegation on behalf of the Chamber and pledged continuing support for the economic development of Palestine.

For his part, the Ambassador thanked the Chamber for its generosity and strong role in facilitating trade and investment with Palestine.

Chairing the discussion, Baroness Symons, ABCC Chairman, stated that she detected a renewed enthusiasm in the UK for doing something to boost trade with Palestine.

Mr Mazen Sinokrot (left), former Palestinian minister of national economy

H E Professor Hassassian praised the activities of Palestinian entrepreneurs in the process of development and also remarked on the successes of the Palestinian Authority in developing the economy in recent years despite heavy impediments.

Business cooperation was important to help meet the aspirations of the Palestinians for employment and better infrastructure, such as housing, education and healthcare.

In response, Baroness Symons summarised the Ambassador’s strong message of the importance of peace and economic development.

She said that the roundtable was an opportunity to concentrate on the practical steps that could be taken by the business community to strengthen trade and investment with Palestine.

H E Professor Hassassian ranged widely over the issues of peace, security and the social and economic development of Palestine.

The Baroness underlined the substantial financial benefits available to investors in Palestine and stressed that the issue was certainly not one of “charity”, a point echoed by other speakers.

He stressed the important part that the private sector was playing in order to attract new investment into East Jerusalem.

The roundtable consisted of executives from the financial services, education, healthcare, law, IT, construction and hospitality sectors.

A delegation of private sector representatives from East Jerusalem was seeking to attract investors and business partners into the city which had so far been relatively neglected.

Mr Terry Stone, a member of the Chamber’s Board with experience in the financial sector, mentioned the special relevance of “friendship through trade” with regard to UK-Palestinian relations.

Describing Jerusalem as the heart of Palestine and the key to achieving stability in the region, the Ambassador welcomed the attention that the new initiative was giving to East Jerusalem because it was the most underdeveloped area of the West Bank.

A detailed presentation on the aims of the Jerusalem Business Forum, which was subsequently held in November 2012, was delivered by the head of the delegation, Mr Mazen Sinokrot, Chairman of Al Quds Holding Co and a former Palestinian minister of national economy.

He stated that East Jerusalem was an important destination for trade and world culture and the private sector had taken the initiative to try to make some real improvements for the people.

Population growth in East Jerusalem was higher than elsewhere in the region, he said, and both social and economic indicators highlight gaps in the conditions and services available to the people.

Over the next ten years, there was a need for 40 thousand new apartments and 420 new schools, which need private investment.

ARAB-BRITISH CHAMBER OF COMMERCE

73

Palestinian Ambassador H E Professor Manuel Hassassian addressing the roundtable

The tourism sector was an important component of the Jerusalem economy and had potential for significant growth.

The heritage and holy sites could attract more visitors presenting opportunities for the hospitality sector and tour operators.

There was an aim to construct new hotels with foreign investors to meet the demand from a predicted influx in tourists; visitor numbers currently reached 3.5 million, but this could be doubled.

Baroness Symons and Mr Mazen Sinokrot

The forum was designed to rally the support of the international community for new projects, the details of which would be unveiled at the event.

The business forum was being organised in cooperation with the office of the Quartet on the Middle East, representatives of which were present at the roundtable.

The delegation had been travelling to selected countries seen as key markets for attracting investment into the Palestinian region, namely Jordan, Turkey, Saudi Arabia as well as the UK, Mr Sinokrot said.

The city was concentrating on five major sectors: namely transport, education, real estate & housing, Information Technology and finance.

He stressed that Palestinians were looking to partner with serious investors and they were adopting a flexible approach in discussions on the terms of any agreements.

Participants in the roundtable found it encouraging that despite all the

difficulties, the entrepreneurial aspirations of the Palestinian people were still flourishing.

Baroness Symons said it was important not to lose sight of the fact that the Palestinians wanted to do business with us.

The abilities, resilience and business acumen of Palestinians were reinforced by personal experiences shared by Michael Thomas, member of the Board of Directors at the Chamber, and Michael Parr, CEO of BACB. H E Professor Hassassian urged Europe to strengthen its economic partnership with the Palestinians.

Safeguards were in place for investors who would receive a return on their investments.

PWC had been working in partnership with the conference organisers to develop a business plan and options for investors that would be distributed at the international forum.

ECONOMIC FOCUS CHAMBER NEWS

Ambassadorial Roundtable on Egypt’s Economic Outlook

The Chamber hosted an Ambassadorial Roundtable on Egypt’s economic outlook on the morning of 16 October 2012 where His Excellency Mr Hatem Aziz Seif El Nasr, the Egyptian Ambassador, was the guest of honour.

Relations between the UK and Egypt have been traditionally strong and in terms of investment the UK was the largest single foreign investor in the country.

Delegates to the roundtable heard how Egypt was looking to strengthen its investment and trade relations with the UK as it set out to revive its economy following recent changes.

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

Representatives from UKTI and the Egypt-British Business Council also joined the discussion along with Directors of the ABCC. The high turnout for the discussion reflected the high level of interest among UK investors in doing business in Egypt and its plans for future economic development.

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

Baroness Symons, who chaired the meeting, said that the business community would be interested in how

Egypt was opening up to investors and its determination to enhance trade.

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

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

The Ambassador said that the country remained committed to a free market open economy which would ensure a level playing field for investors.

His Excellency Mr Hatem Aziz Seif El Nasr (top of the table) and Baroness Symons (right)

ARAB-BRITISH CHAMBER OF COMMERCE

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

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H E Mr Hatem Aziz Seif El Nasr, Egyptian Ambassador, addressing the roundtable

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

Egypt was increasing the productivity of its agricultural sector and reducing its imports of wheat.

The new government had adopted a strategy to boost its economic prospects setting priorities to increase efficiency, corporate tax reforms and measures to attract more investment.

In future, the state would become a facilitator of economic development and the private sector would play a much greater role, the Ambassador indicated.

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

The country was determined to pursue a policy of liberalisation to realise the full potential of its economy in the medium to long term.

Its strategy to boost investment embodied in its 2012/2013 plan had set an investment budget of $45bn to be achieved from FDI and investment from domestic sources.

The Ambassador outlined the sectors with greatest potential for development such as tourism, health, education and new technology.

In recognition of the important role played by SMEs, additional technical support was to be provided to enable them to flourish.

Turning to the reforms that Egypt was adopting, H E Hatem Seif El Nasr mentioned that the new government was streamlining the procedure for registering foreign companies and reducing the period from six months to three days.

Investors would be able to make use of one-stop shop services and more offices of the General Investment Authority were being opened in governorates around the country, he said.

Egypt was improving the efficiency of the dispute settlement mechanisms which would satisfy concerns of potential investors that possible conflicts arising could be more speedily resolved.

H E Hatem Seif El Nasr stressed that the function of the Embassy was to help ensure that the commitments that Egypt had given were being put into effect on the ground.

Egypt was securing international investment to implement development projects in such areas as water and sanitation, agri-business, renewable energy, transport and the financial sector.

He stressed that Egypt wanted new mega projects to be developed through Public Private Partnership agreements as this was a way of attracting investment.

Reflecting on Egypt-UK commercial relations, the Ambassador said that the UK was the largest foreign investor with investment valued at $20bn and more than one thousand UK companies were operating in the country.

The greater proportion of the UKâ&#x20AC;&#x2122;s

investment was in the oil and gas sector but currently there was a new focus on renewable energy.

The UKTI viewed Egypt as an attractive market and activities were under preparation at governmental level to improve trade relations.

Egypt expected that the UKâ&#x20AC;&#x2122;s forthcoming presidency of the G8 in 2013 would see significant progress on the Deauville Partnership.

Summing up the message to British business, Baroness Symons stated that while UK investment in Egypt was strong there was a need to boost the trade part of the relationship.

In conclusion, Ambassador H E Hatem Aziz Seif El Nasr was thanked by Dr Afnan Al-Shuaiby and Baroness Symons for delivering his wide ranging presentation on the challenges and opportunities in Egypt.

In response, the Ambassador commended the ABCC for its valued work and said that he welcomed the opportunity to engage in such an informed discussion.

ECONOMIC FOCUS CHAMBER NEWS

EU-Egypt Task Force & Summit

Mr Abdeslam El-Idrissi, ABCC Director of Trade Services.

The task force, initially announced during Egyptian President Mohamed Morsi’s visit to Brussels in September, was held to address the challenges that Egypt is facing in its economic reform and reconstruction.

The conference was co-chaired by Baroness Ashton and Egyptian Foreign Minister H E Mohamed Kamel Amr. An opening address was given by H E Dr Hesham Kandeel, Prime Minister of Egypt.

The Chamber participated in an EU-Egypt Task Force summit in Cairo which was held with the aim of boosting economic cooperation between Egypt and European Union member states.

Among those taking part in the two-day event held on 13-14 November 2012 were representatives of around 100 large European corporations, members of the European Commission headed by Baroness Catherine Ashton, the EU’s

High Representative for Foreign Affairs, and Egyptian ministers.

Dr Afnan Al-Shuaiby, Secretary General & Chief Executive of the ABCC, led the Chamber delegation which also included

Rt Hon Baroness Ashton of Upholland, European Union High Representative for Foreign Affairs and H E Mohamed Kamel Ali Amr, Foreign Minister of Egypt

Other participants included EU VicePresident Antonio Tajani and Alessandro Barbieri, Chairman, Eurochambres, as well as politicians, business leaders and senior officials from European and international financial institutions.

The summit coincided with the announcement by Baroness Ashton of the EU’s approval of a €5 billion ($6.4bn) financial aid package for Egypt which was made following her meeting with President Morsi.

“As Egypt’s main trading partner and the biggest source of aid and investment, the EU has a key role to play,” Baroness Ashton told the summit.

“The task force is a unique way of sustaining the achievements made so far and addressing Egypt’s political and economic needs.”

Themes covered at the summit included joint investment and strategic alliances, science, technology and innovation and HR development. Speakers included Egyptian ministers, H E Osama Saleh, Minister of Investment, H E Hatem Saleh, Minister of Industry & Foreign Trade and H E Dr Nadia Eskndar Zkhary, Minister of Scientific Research and Mr Ahmed El Wakil, Chairman, Federation of Egyptian Chambers of Commerce.

A separate summit on tourism was addressed by H E Mohamed Hisham Zaazou, Minister of Tourism.

The EU-Egypt Task Force was the third such forum to be held in the Southern Mediterranean countries and follows similar events in Tunis in September 2011 and Jordan in February 2012.

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Roundtable on Cooperation in the UAE Medical Sector

The Chamber was pleased to host a roundtable discussion on opportunities for joint ventures and commercial co-operation in the UAE medical sector on 8 November.

Dr Afnan Al-Shuaiby, ABCC Secretary General & Chief Executive, chaired the seminar which was organised to enable representatives from leading UK medical and healthcare companies to engage in discussions with Mr Jamal Abdalaziz Al Owais, the Medical Attaché at the UAE Embassy in London.

The roundtable acted as a platform to explore latest developments in the UAE medical sector and provided insight into the opportunities that are available to UK companies.

zones in the UAE, citing the examples in Sharjah, Abu Dhabi and Dubai, as these offered few restrictions on the activities of companies located there.

The Medical Attaché stated that the UAE was seeking to raise its profile as a

destination for medical tourism and was improving its medical sector to attract more patients from its GCC neighbour countries and from the wider Middle East.

Mr Al Owais indicated that the UAE was interested in long-term sustainable partnerships with firms in the medical field, including pharmaceuticals suppliers and firms with expertise in running private hospitals and specialist treatment centres.

He estimated that within ten years the

Mr Jamal Abdalaziz Al Owais, the UAE Medical Attaché, in discussion with potential investors.

Dr Al-Shuaiby said that it was a departure for the ABCC to focus in detail on one specific sector rather than to look more broadly at a particular market, she said.

The interests and activities of the companies taking part included experts dealing with medical insurance, rehabilitation and preventative medicine, diabetes solutions, legal consultancy services, medical training and knowledge transfer, online materials, pharmaceuticals suppliers, patient accommodation, life sciences and medical technology and private hospital services.

Key issues of concern involved legal matters relating to contracts and setting up in the UAE and the need for more detailed knowledge about the market.

Mr Jamal Abdalaziz Al Owais pointed to the development of the medical free continued page 78

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UAE would be in a position to receive patients from overseas in need of specialist medical treatment, including heart surgery.

Participants wanted to learn from the experiences of private hospitals that had set up in the UAE and to explore the best model for success.

Investors wanted to speed up the process of gaining the right to establish a company in the country and for accrediting for foreign medical staff to work in the UAE. The Medical Attaché stressed that the laws governing the regulation of the medical sector within the emirates were the responsibility of the Federal Ministry of Health.

He said that the UAE aimed to see teaching hospitals established in the country and medical centres for academic research which would be available to all the GCC countries.

There would be no obstacles to the employment of foreign doctors as long as they had been fully certified by their home nations.

Mr Al Owais also indicated that international law applied to companies based within the free zones.

The roundtable highlighted opportunities in a variety of medical fields including the potential for joint ventures with UK firms in the fulfilment of healthcare projects supported by the UAE in its less developed neighbours, such as Yemen where a new hospital had recently been opened financed by the UAE. The UAE also offered support to Arab medical students in the form of scholarships to study within the emirates or abroad, the Medical Attaché said.

Dr Al-Shuaiby said that the Chamber would like to assist UK companies to become more engaged in the UAE medical sector as it appeared that British firms were lagging behind their competitors.

UK firms were potentially missing out on so many opportunities and the Chamber was keen to help them achieve more success in winning contracts through getting access to the right information when it becomes available.

Mr Mike Moran, Aspen Health, welcomed the fact that UKTI was giving more attention to the Arab markets and encouraging UK firms to take advantage of the opportunities.

Keith Hackett, Director, Intelligo Health Management Resourcing, urged the UAE to look at providing more preventative and community based healthcare services that would help in raising public about the need for individuals and families to look after their own health.

Ms Khilood Jamal Ali, Sales Executive, Philip Chapper & Co, explained the challenges in trying to register and distribute medical devices in the GCC markets.

Mr Jamal Abdalaziz Al Owais stressed that once a product was accepted by one GCC country then it would be possible to distribute it throughout the GCC as commons regulations applied.

Delegates all agreed that the discussions had been fruitful, while Dr Al-Shuaiby pointed out that it was only the start of a dialogue that would need to continue. The UAE Medical Attaché looked forward to cooperating with the ABCC in the future.

ARAB-BRITISH CHAMBER OF COMMERCE

New Business Opportunities in Libya

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Mr Edward Oakden, UKTI

New business opportunities in Libya were the focus for the business seminar Opportunities in Libya, hosted by the Arab British Chamber of Commerce on the afternoon of 21 November.

The event attracted about a hundred business delegates who were members and non-members of the Chamber representing a varied range of sectors and it was co-organised in cooperation with UKTI, the Libyan Embassy in London and the Federation on Libyan Chambers of Commerce, Industries and Agriculture.

Dr Afnan Al-Shuaiby, ABCC Secretary General & Chief Executive, described Libya as “an important emerging market with enormous commercial potential” and she stressed that UK companies needed to become far better acquainted with the many opportunities that are arising as the Libyan people embark on the task of rebuilding their economy.

Delegates were informed that Libya was looking to co-operate with major operators in the fields of energy, healthcare, education and training, financial services and construction.

In addition, the seminar highlighted important opportunities for Small and Medium-Sized Enterprises seeking to enter the supply chains for major projects.

“UK Trade and Investment had estimated that Libya will eventually spend more than £125 billion on reconstruction,” Dr Al-Shuaiby told the seminar.

In welcoming delegates and speakers,

Mr Edward Oakden, Managing Director, Strategic Trade, UKTI, provided a broad

Mr Ahmed Gebreel, Charge d’Affaires, Libyan Embassy

Dr Al-Shuaiby thanked the Embassy of Libya in London, UK Trade and Investment and the Federation of Libyan Chambers of Commerce, Industries and Agriculture, for their support.

overview of recent developments in the market.

Despite short-term uncertainties, Libya was going to be an enormous market in the medium term and UK firms needed to be aware of the best strategy to adopt to achieve success.

The UK’s role in support of the transition in the country was greatly appreciated

by Libyans and this opened the door to new opportunities for doing business, Mr Oakden said.

The Libyan people were expecting results and this meant that the government needed to deliver on basics such as healthcare, education and improved transport among other services.

Mr Oakden said that Libya was in a strong position to succeed because of the resources at its disposal, in particular the revenue it receives from oil. Encouragingly, output was back to its pre-war levels of 1.6 million bpd.

Mr Fawzi Allolaki, Head of the Libyan organisation for Economic Competitiveness, delivered a message of continued page 80

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from page 79

support on behalf of the newly appointed Minister of Economy.

He said that the Libyan people would not forget those, such as Britain, who had stood by them in the difficult days” and he hoped they would continue to cooperate in the future to build a stable Libya.

successful elections in July: the future was positive and the country was keen on improving cooperation.

Mr Paul Radford, Chief Economist, UK Export Finance, the government agency formerly known as the ECGD, explained how the organisation can assist UK companies in the Libyan market.

He stressed that Libya was seeking “new partnerships based on mutual respect and joint cooperation in order to build new relations based on strategic partnerships.”

New products and services for SMEs had been developed in the past few years following the financial crisis to assist exporters. It was able to provide support for contracts valued as low as £20k.

Mr Allolaki brought greetings from His Excellency the Libyan Minister of Economy who had just received his new post in the past week and was unable to be present.

He stressed that the agency was not a lender but an insurance provider and its role was to complement what was available in the market and shared the risk banks.

The Minister’s message stressed that Libya was strongly committed to enhancing mutual cooperation between Libya and Britain and he invited delegates to visit the country in the near future.

Mr Radford stated that all the services were now available for exports to Libya.

Mr Ahmed Gebreel, Charge d’Affaires, Libyan Embassy, said that the message from Libya was clear following its peaceful transition and the holding of

Mr Paul Radford, Chief Economist, UK Export Finance, Mr Angus Jackson, Libyan market specialist and Mr Hesham Ghrairi, Libyan Commercial Attache

Mr Fawzi Allolaki, Head of the Libyan Organisation for Economic Competitiveness

Mr Hesham Ghrairi, the Libyan Commercial Attache, emphasised the importance of finding a good local business partner within the country.

Mr Angus Jackson, Libyan market specialist, who had authored a recent report for UKTI, outlined the range of high value opportunities in the country and how UK firms might take advantage.

Major contracts had yet to be concluded which meant that now was the right time to look to the market and start building relationships.

Mr Jackson believed that new tenders for major contracts would start to be issued by the spring of next year.

Ms Elizabeth Gaston, Director, Smart Specialists International, shared with delegates the benefits of her more than 30 years’ experience of working in Libya.

Ms Gaston offered her company as a case study of working in Libya as a training provider. She had worked in the training department of the National Oil Corporation designing onsite training for Libyan staff and had developed extensive contacts within the industry.

In concluding remarks, Dr Al-Shuaiby stressed the role of the Chamber in helping companies to achieve long-term commercial success by building strategic relationships.

ARAB-BRITISH CHAMBER OF COMMERCE

Launch of Best of Britain – Saudi Arabia 2013

based events company responsible for organising the exhibition, delivered a briefing on her company’s promotional activities for major events in Saudi Arabia.

Meanwhile, Ms Priya Kaur-Jones, Editor, Dunia InterMedia, explained in detail why businesses seeking to enter the Saudi consumer market should take part in the Best of Britain exhibition.

The evening of 5 December saw the launch at the Chamber of the Best of Britain – Saudi Arabia 2013 exhibition which aims to showcase for British brands in the fashion, design and retail sectors in the Saudi market.

The launch, chaired by Baroness Symons, was attended by more than 60 representatives of companies in the creative industries sector who were keen to learn more about the opportunities in the Saudi market.

The trade exhibition, which is fully supported by UKTI and the British Council, was scheduled to take place in Riyadh on 10-12 March 2013. It will consist of exclusive viewings for specially invited customers and investors, workshops and displays to showcase products and talent, and a trade fair open to the public.

The exhibition will provide a platform for innovative British brands and creative industries to introduce themselves to the Saudi consumer market where there is potentially huge demand for luxury and designer goods.

Speaking at the launch, Baroness Symons, who is Chairman of both the ABCC and the Saudi-British Business Council, stated that the Chamber was extremely pleased to support such an initiative and urged creative UK businesses to look to the Saudi market.

She also encouraged them to join the ABCC and make use of its range of services, which includes help with visa applications, cultural training and export documentation.

Mr Chris Innes-Hopkins, the Commercial Counsellor and Director of UKTI in Saudi

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Arabia, stressed that the retail market in the Kingdom was the biggest in the Middle East and its economic growth remained strong having achieved 6.8% in 2011.

Saudi Arabia was no longer just an oil based economy but was changing rapidly and investing to diversify, he said.

Consumer sentiment was high in the country where 60% of the population was under the age of 25.

Mr Innes-Hopkins stated that the forthcoming Best of Britain exhibition formed part of the campaign to promote British brands inspired by the success of the 2012 Olympics and the high profile that it generated for UK goods and services.

Ms Ghadia Al Tobaishi, Executive Vice President, Dunia InterMedia, the Riyadh

The event offered opportunities for firms to establish a presence in the Kingdom and the chance to raise awareness of their brands in the market. It would allow exhibitors to meet potential investors and business partners in the Kingdom in order to market British brands more effectively in the Kingdom, Ms KaurJones stated.

Finally, Mr Adrian Chadwick, Director, British Council in Saudi Arabia, explained why his organisation was supporting the forthcoming exhibition and mentioned the cultural and educational work of the British Council in the Kingdom, particularly its English language courses for Saudi nationals for which there was a growing demand.

The launch event proved to be highly successful in highlighting the emerging opportunities for British innovative industries, leading brands and luxury goods in the Saudi high growth market.

Attendees indicated considerable interest in taking part in the trade exhibition which is going to be held at Riyadh’s exclusive Nayyara Banqueting and Convention Centre.

Anyone seeking to find out more about Best of Britain –Saudi Arabia 2013 can check the website: www.bobksa.org/2012/en/default.aspx

Baroness Symons, Chairman ABCC, Mr Chris Innes-Hopkins, Director, UKTI in Saudi Arabia, Ms Ghadia Al Tobaishi, Executive Vice President, Dunia InterMedia, Ms Priya Kaur-Jones, Editor, Dunia InterMedia, Mr Adrian Chadwick, Director, British Council, Saudi Arabia

ECONOMIC FOCUS CHAMBER NEWS

Ministerial Business Roundtable with Morocco Tourism Minister The Chamber began its events programme for 2013 on 17 January with an important Ministerial Business Roundtable where the keynote speaker was His Excellency Dr Lahcen Haddad, the Minister of Tourism for the Kingdom of Morocco.

The Minister was in the UK to meet potential investors and explain the country’s plans for expanding the tourism industry. Morocco was offering a package of special incentives and tax concessions designed to attract investors to help develop the sector, he stated.

The seminar attracted British and global business executives and investors with an interest in the opportunities available in the Moroccan tourism sector.

Dr Afnan Al Shuaiby, Secretary General & CEO of the ABCC, stated that the Chamber was pleased to provide an opportunity for the Minister to discuss Morocco’s latest plans with potential investors.

Dr Al Shuaiby warmly thanked the Moroccan Embassy and its Ambassador

H E Dr Lahcen Haddad, Moroccan Minister of Tourism and Baroness Symons, ABCC Chairman (right), with delegates at the ministerial business roundtable

HRH Princess Joumala Alaoui, for their strong support for the work of the Chamber and for their co-operation in the planning of the ministerial roundtable.

Chairing the discussion, Baroness Symons, ABCC Chairman, mentioned that the Chamber was planning a business delegation to Morocco later in 2013.

H E Dr Lahcen Haddad explained the purpose of his visit to the UK which was to meet potential investors and introduce the new economic opportunities in Morocco’s tourism sector.

Addressing an audience of chief executives and directors from some of the UK’s leading tour operators, travel

agencies, hotel chains and financiers, the Minister began by applauding the close relations between Britain and Morocco.

Morocco had adopted many measures over recent years to attract investors by creating an open economic climate and by becoming fully integrated in the global economy.

Morocco, the Minister said, had achieved notable economic stability since the 1990s, controlling its inflation, managing its deficit and reaching an average growth of 5%. Morocco had managed to triple its GDP within a decade.

These impressive results had been achieved with the help of careful public investment to upgrade the country’s infrastructure and improve the regulatory framework for business, H E Dr Haddad said.

Morocco was now seeking to attract more private investment to further strengthen its economic performance.

Investors were attracted by the country’s modern infrastructure, including its 14 international airports; and its transport system that comprised extensive highways, tramways and an expanding rail network.

The tourism sector was the country’s second largest employer and the first in terms of foreign currency. Tourism had achieved record growth since 2001, he said.

Proximity to Europe meant that visitors from European countries were Morocco’s biggest market.

Dr Haddad said that Morocco’s “Vision 2010” strategy had succeeded in

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doubling its accommodation capacity between 2001 and 2010. Morocco’s new strategic “Vision 2020” now aimed to establish the country among the world’s top 20 tourism destinations by the year 2020.

This would entail doubling capacity from 180 thousand beds available today to some 350 thousand by 2020, the Minister said.

Tourist expansion would increase revenue and boost employment for an estimated 500 thousand more jobseekers.

New projects to expand cultural tourism would be founded on Morocco’s rich heritage, while seaside tourism would be able to take advantage of the country’s extensive coastline and “green” tourism would be based on the unique landscape features.

The implementation of these ambitious plans was creating many new opportunities for investors, the Minister said.

Morocco needed an estimated €14 billion to implement its plans and was offering special incentives in land and tax particularly in relation to investing in new destinations and projects that were seen as priorities.

A diverse portfolio of projects has been drawn up for development including ecoresorts, seaside resorts and marinas,

H E Dr Haddad (left), Baroness Symons and delegates to the roundtable

The Moroccan Tourism Minister being interviewed by the BBC

cultural sites, desert golf and theme parks.

when developing new resorts, the Minister said.

The Minister stated that Morocco was interested to hear from any investor seriously willing to work to develop the industry.

The country was interested in attracting investors to develop new resorts with mixed leisure and retail facilities to attract “luxury” tourism.

The Minister’s presentation stimulated an extensive discussion which covered many aspects of the industry.

H E Dr Lahcen Haddad and HRH Princess Joumala Alaoui were accompanied at the Chamber by Mr Amine Boughalem, Director Moroccan National Tourism Office in London, Mr Othmane Bahnini, Deputy Head of Mission, Moroccan Embassy and Mr Larbi Bouattaf, Economic Counsellor, Moroccan Embassy.

Morocco was embracing digital marketing and new technology, for example, by offering funds to encourage SMEs to invest in technology.

Morocco was positioning itself as a sustainable tourism destination and was sensitive of the need to protect the local environment and natural landscape

The seminar was also attended by members of the Arab and British press, including the BBC.

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best that London has to offer in every way you can imagine. Concierge will secure you the best seats at the theatre, prime tickets to sold-out concerts and events, as well as dinner reservations at the finest restaurants in town. Our special relationships throughout London ensure that our guests are welcomed everywhere they go.

We are the only luxury accommodation option that also invites you to enjoy our “At Home” programme that will introduce you to unique and exclusive aspects of London. You will have the opportunity to meet esteemed personalities, hear readings by wellknown authors, or enjoy master classes with leading experts. We open doors by special arrangement to previews in the world of fashion, music and the arts, and all events are exclusively by invitation and only for our guests.

If your business requires attention while you are staying with us, we ensure your home office is exactly as you would like it to be. We offer direct dial telephones and local sim cards and can also install a printer, scanner and fax in your residence. Should the need arise we also are able to expertly set up a meeting either within your residence or in another apartment.

The residential experience of staying at Grosvenor House Apartments

by Jumeirah Living offers a level of authentic luxury that is unsurpassed in London. We invite you to change the way you see the city by experiencing a level of service and opportunity that many visitors rarely achieve. Once you have sampled the luxury of what it really means to be at home, your other hotel experiences will fade by comparison.

ARAB-BRITISH CHAMBER OF COMMERCE

RCS, London’s Premier Chauffeur Service

87

As the helicopter lands at Battersea, the chauffeur waits outside the new terminal building. The site originally opened in 1959 remains London’s foremost site for heliports.

After a welcome smile from her regular chauffeur and a gentle close of the Mercedes S class door our VIP glides over the River Thames while recalling the views of London as she flew in. And then it’s time to catch up with friends and family.

The doorman at the Lanesborough Hotel greets our client as the car arrives at the door. Bags are collected and whisked to the room. It’s now only 11.00 am and a lot has happened so a short break time is crucial. With another quick smile to the doorman, she is back in the car and off to Harrods. Hans Road is bumper to bumper with limousines. And the one thing they have in common is a chauffeur.

Attending to the car he waits while shopping and pampering for the ladies goes on quietly inside the Emporium on Knightsbridge.

For a luxury chauffeur driven service in and around London, RCS (Robinson Chauffeur Services) offer a range of specialised options for discerning clients, including airport transfers and day and evening hire.

Whether you require our chauffeur service for business or pleasure, our experienced chauffeurs will be on hand to ensure your itinerary is completed in a timely, discreet and comfortable manner.

With over 20 years’ experience, RCS provide an exceptional chauffeur driven experience that is second to none. We operate to your complex itineraries and time management to ensure your every demand is met and catered for effortlessly.

An RCS Chauffeured Shopping Trip to London…

Having been driven to the private jet terminal just outside Paris, our lady boards her family jet. The crew carry out final preparations as the female hostess greets her passenger. The small amount of luggage is stowed (she is only away

for two nights) and the door is closed, communications are opened with the tower to discuss take off.

At this point, the chauffeur retires to the terminal lounge where he will wait until he receives confirmation that the jet has taken off before returning to Paris.

Flying time to London is short and there is the opportunity to land at Heathrow, Farnborough, Northolt, Luton Biggin Hill or Stansted. By using Stansted, the furthest of all the Fbos from London, the operations centre can arrange to reduce total travelling time to central London to only 20 minutes.

As the jet glides smoothly to a halt adjacent to the terminal, the helicopter is ready and waiting to travel to Battersea Heliport. Our chauffeur in London will have woken hours before to check the estimated time of arrival and to collect the Mercedes S class from the garage (which was fully prepared 24 hrs in advance). He will arrive at the heliport before the jet lands at Stansted. RCS of London’s rule is that if you are not 15 minutes early, then you are late for your client.

Around 13.30 as if in an advert, three ladies appear from door three. Victor, the doorman, whistles to the chauffeur. With his vast knowledge of clients and their drivers he is able to alert the correct car every time. Lunch is in Mayfair, Scott’s today, with an outside table in the summer sunshine.

Having viewed a text from her preferred chauffeur, she knows her assistant in London has arrived on time. She quickly replies with requests to collect bags from Bond St. Yesterday was not just for chatting. She knows that she can trust her chauffeur as he has worked with her family for many years. Trust is important.

At 13.00 she emerges from the hotel with all of her bags. A change of plan.

Her husband is now flying in to London to collect her en route to the USA. With no effort or fuss the S class cuts its way across the river to Battersea. The jet had returned previously to Moscow to collect her husband and to have the chauffeur team on hand to work with you allows you to have the same flexibility whilst ensuring continuity and peace of mind.

Our VIP is soon on her way to Stansted via the helicopter and away to the USA. Our chauffeur will wait until the all clear from the operator that the couple are on their way before he returns to the office.

Another good job completed.

ARAB-BRITISH CHAMBER OF COMMERCE

89

ADVERTORIAL

Building world class management skills in the Middle East Manchester’s Business School’s Middle East Centre in Dubai Knowledge Village, United Arab Emirates, opened in 2006 and, today, supports more than 1,400 part time MBA students. It is the largest and fastest growing centre in the MBS international network.

Manchester Business School in the Middle East Manchester Business School (MBS) is the UK’s largest campus-based business and management school and is part of the University of Manchester. MBS is consistently ranked among The Financial Times’ top international schools (world 29th in the FT’s Global MBA 2013 ranking) and is ranked third in the world for alumni achieving their aims.

A globally renowned centre of excellence and innovation, MBS is where high achievers from organizations across the world advance their careers with top-ranked executive learning programmes – earning a Manchester MBA or DBA (MBS’ doctoral programme is ranked number one in the world by the FT) without putting their careers on hold. MBS is amongst a handful of elite schools worldwide whose MBA programmes are triple accredited; all MBA degrees are awarded by the University of Manchester.

MBS Middle East Executive Centre One of six international executive centres worldwide, the MBS Middle East Centre at Dubai Knowledge Village, UAE, started in 2006, attracted by the combination of excellent infrastructure and business friendly environment.

Today, MBS provides support for more than 1,400 MBA students in the region – one of the largest MBA communities of its kind in the Middle East – with students of 85 nationalities residing countries across the region. It is now the largest and fastest growing centre in the school’s international network, which comprises international executive centres in the United Arab Emirates, Hong Kong, Miami, Brazil, Shanghai and Singapore.

The part time Global MBA programme offers students four learning pathways –

Engineering, Finance, Project Management and Global – with a minimum of 250 hours of face-to-face workshops in Dubai and an option to attend workshops in any of the international centres of Manchester Business School.

Face to face contact with faculty is a major component of the Manchester Global MBA and the student workshops bring together many of the MBA students not only from the region, but also those international students who elect to come to the Dubai centre for their workshops, enabling them to build on their global network.

Leading faculty from MBS deliver MBA programme modules as well as run business simulation exercises during the workshops.

MBS Global MBA students are all experienced working professionals and many employed in senior positions by some of the world’s leading multinational companies, as well as local and regional companies. The students are selected based on the same entry criteria applied by Manchester Business School globally.

Students graduating through the Global MBA programme are awarded the same Manchester MBA as students on the full time, campus based programme, and receive the same degree from the University of Manchester. No distinction is made between full time and part time students - all have achieved the same high standard required of a successful Manchester MBA graduate.

Regional demand for MBAs has remained strong amongst working professionals and managers, many in middle to senior management positions,

and others in specialist roles who may be looking for a career path in general management. The part time Global MBA has two intakes in January and July every year.

MBS also runs a rapidly developing executive education programme for some of the best known companies in the region, for their senior management and specialist professionals. In partnership with Dubai International Academic City’s Education Cluster, the school undertook the first research programme into the Gulf Cooperation Countries (GCC) market for executive education and presented and shared this with education and training providers in the region.

Beyond teaching and research, MBS has also actively worked within the UAE community, creating access to top teaching faculty and leading academic thinkers through a programme of free seminars open to the public and worked with a range of authorities on creating and running the Manchester Innovation Award for Emiratis, to encourage the development of entrepreneurial skills amongst citizens.

The Manchester Innovation Award for Emiratis is an initiative of Manchester Business School, designed to stimulate entrepreneurship and business innovation among UAE nationals, and provide practical, academic and financial support to develop into successful businesses the best ideas submitted by Emirati entrepreneurs. www.mbs-uae.ac.ae Email: mba@mbs-worldwide.ae

ECONOMIC FOCUS CHAMBER NEWS

NEW MEMBERS OF THE CHAMBER

Alban Travel Ltd & Dar Aliman UK Ltd

Associated Building Maintenance Limited

Winchester House First Floor Unit 103 259-269 Old Marylebone Road LONDON NW1 5RA Tel: +44(0)20-7170 4230 Fax: +44(0)20-7170 423 Email: daralimanukltd@hotmail.co.uk Website: www.daraliman.net Contact: Mr Ahmed Jinidi - Managing Director Business Activity: Travel agent for Hajj and Umrah

8A Woodside Road NORTHWOOD Middlesex HA6 3QE Tel: +44(0)1923-820598 Fax: +44(0)1923-826575 Email: ali@abmgb.co.uk Website: www.abmgb.co.uk Contact: Dr Ali Al-Mahdawie - Managing Director Business Activity: A one stop engineering shop for building services; covers heating, ventilation, air conditioning, lighting, power supply, lifts and generators, public health systems, environmental and energy management; carries out annual PAT testing plus fixed wiring testing; provides a complete PPM systems on both hand on and management; operates nationwide with regional service offices; certifies buildings in all aspects of H&S requirements

Anamax Limited Anamax House Oxford Road GERRARDS CROSS Buckinghamshire SL9 7BB Tel: +44(0)1753-890 500 Fax: +44(0)1753-480 802 Email: grahamnye@anamaxgroup.com Website: www.anamaxgroup.com Contact: Mr Graham Nye - Managing Director Business Activity: Computer spares and election materials

Aspen Healthcare Solutions Ltd Birmingham Research Park Vincent Drive Edgbaston BIRMINGHAM B15 2SQ Tel: +44(0)121-414 7067 Email: mmoran@aspenhealth.co.uk Website: www.aspenhealth.co.uk Contact: Mr Mike Moran MBE - Chief Executive Officer Business Activity: Provision of healthcare services to governmental and nongovernmental organisations

A T Generators UK Limited 5 Jupiter House Calleva Park Aldermaston READING Berkshire RG7 8NN Tel: +44(0)20-7788 7917 Fax: +44(0)8444-843 304 Email: ali.t@atgen.ae Website: www.atgenerators.co.uk Contact: Mr Ali Al Tamimi - Director Business Activity: Supplier of diesel generators, canopies, spare parts, control panels, mobile lighting powers and after sales service; supplying markets in the UK, the UAE, Iraq, Africa and around the Middle East

Baker Hughes Limited 3rd Floor, Building 5 Chiswick Park 566 Chiswick High Road LONDON W4 5YF Tel: +44(0)20-3009 9032 Email: paul.stokes@bakerhughes.com Website: www.bakerhughes.com Contact: Mr Paul Stokes - Company Secretary Business Activity: Top-tier oilfield services company creating value from oil and gas with high-performance drilling, evaluation, completions and production technology and services, integrated operations and reservoir consulting

Bank of London and the Middle East plc (BLME) 12 Manchester Square LONDON W1U 3PP Tel: +44(0)20-7618 0078 Fax: +44(0)20-7618 0001 Email: michelle.arnold@blme.com Website: www.blme.com Contact: Ms Michelle Arnold - Head of Marketing and Communications Business Activity: Islamic investment banking and wealth management

Bupa Cromwell Hospital 162-174 Cromwell Hospital LONDON SW5 0TU Tel: +44(0)20-7460 5700 Email: shams.maladwala@cromwellhospital.com Website: www.bupacromwellhospital.com Contact: Mr Shams Maladwala - Commercial Director Business Activity: Expertise and state-of-theart equipment as well as a comprehensive range of clinical services and medical and surgical specialties

Burges Salmon LLP One Glass Wharf BRISTOL BS2 0ZX Tel: +44(0)117-939 2000 Fax: +44(0)117-902 4400 Email: clive.pugh@burges-salmon.com; keith. beattie@burges-salmon.com; richard.pettit@ burges-salmon.com Website: www.burges-salmon.com Contact: Mr Clive Pugh - Partner Business Activity: Range of legal services in a wide variety of industry sectors with specialist lawyers

Corporate Research and Investigations, CRI Group Level 33 25 Canada Square LONDON E14 5LQ Tel: +44(0)20-7038 8366 Email: zanjum@crigroup.co.uk Website: www.crigroup.co.uk Contact: Mr Zafar Anjum - Group Chief Executive Officer Business Activity: Global supplier of investigative, forensic accounting, business due diligence and employee background screening services. A member of the DIFC, CRI Group safeguards businesses by establishing the legal compliance, financial viability, and integrity levels of outside partners, suppliers and customers seeking to affiliate with your business

CWC Group Limited Regent House Oyster Wharf 16-18 Lombard Road LONDON SW11 3RB Tel: +44(0)20-7978 0000 / Direct +44(0)207978 0020 Fax: +44(0)20-7978 0099 Email: marketing@thecwcgroup.com; esofat@ thecwcgroup.com; nabdulhadi@thecwcgroup. com Website: www.cwcgroup.com Contact: Mrs Esha Sofat Senior Marketing Manager Business Activity: International events organiser in the oil & gas industry

Emirates Gloucester Park 95 Cromwell Road LONDON Tel: +44(0)20-7808 0006 Fax: +44(0)20-7808 0061 Email: anna.edwards@emirates.com Website: www.emirates.com Contact: Mr Laurie Berryman - Vice President UK Business Activity: Airline

Haniwells Properties Limited 980 Stockport Road MANCHESTER M19 3NN Tel: +44(0)161-224 2271 Fax: +44(0)161-248 6565 Email: nihad@haniwells.co.uk Website: www.haniwells.co.uk Contact: Mr Nihad Sabha - General Manager Business Activity: Property developers, contractor, project management and general properties investment

ARAB-BRITISH CHAMBER OF COMMERCE

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Health Matters (UK) Limited

Islamic Relief

Four, The Cobalt Centre Siskin Parkway East Middlemarch Business Park COVENTRY Warwickshire CV3 4PE Tel: +44(0)24-7651 6080/ Direct: +44(0)247651 6096 Fax: +44(0)24-7630 3165/ 5316 Email: james@health-matters.co.uk Website: www.health-matters.co.uk Contact: Mr James Henson - Sales Director Business Activity: Healthcare and employee wellbeing broker

16 Lower Marsh LONDON SE1 7RJ Tel: +44(0)20-7593 3232 Fax: +44(0)20-7021 0256 Email: wafaa.sadek@irworldwide.org Basit Khan: basit.khan@islamic-relief.org.uk Website: www.islamic-relief.org.uk Contact: Ms Wafaa Sadek Relationship Manager Business Activity: Humanitarian charitable and development activities

Healys LLP

Unit G Henfield Business Park Shoreham Road HENFIELD West Sussex BN5 9SL Tel: +44(0)1273-495100 Fax: +44(0)1273-495015 Email: ness@jetrade.com; michael@jetrade. com; ryan.smith@jetrade.com Website: www.jetrade.com Contact: Mr Michael Foreman - Managing Director Business Activity: Supply and repair of aircraft spare parts

76 Shoe Lane LONDON EC4A 3JB Tel: +44(0)20-7822 4000 / Dir: +44(0)20-7822 4144 Fax: +44(0)20-7822 4100 Email: charles.green@heals.com; omar.shams@healys.com; marios.pattihis@healys.com Website: www.healys.com Contact: Mr Charles Green - Partner Business Activity: Law firm

Indigo Gold Limited 111 Buckingham Palace Road LONDON SW1W 0SR Tel: +44(0)20-7855 9606 Email: daniel@indigogold.com; faye@ indigogold.com Website: www.indigogold.com Contact: Mr Daniel Vacassin - Director Business Activity: International executive search and consultancy business working with organisations to strategically resource their business in order to enhance future capabilities

The Informed Executive Limited 944 Warwick Road SOLIHULL B91 3HW Email: bijan@sedghi.com Website: www.informedexecutive.co.uk Contact: Mr Bijan Sedghi - Executive Director Business Activity: Electronic publication providing business intelligence services to senior executives and managers

Jetrade Limited

London Procurement Resources Mayfair Chambers 2 Charles Street LONDON W1J 5DB Tel: +44(0)20-3463 4599 Fax: +44(0)20-3463 4594 Email: amine@lpr.uk.com Website: www.lpr.uk.com Contact: Mr Amine Khalil - Director Business Activity: Specialist in equipment and materials procurement for the petroleum, energy and power industries; in-house expertise in procurement management

Management and Economics Consultants International Limited 1 Howard Close New Southgate LONDON N11 1EH Tel: +44(0)20-8361 9934 Fax: +44(0)20-8361 7632 Email: info@meciltd.com; kadom.shubber@ btinternet.com Website: www.meciltd.com Contact: Dr Kadom Shubber - Director & Chairman Business Activity: Management consultancy and training

continued page 91

ECONOMIC FOCUS CHAMBER NEWS

from page 90

Oxford Professionals Limited

Salamon & Seaber Limited

Wachter-Gallagher Limited

13B Taylors Green Acton LONDON W3 7PE Tel: +44(0)20-3290 3633 Email: khaddad@oxford-pro.com Website: www.oxford-pro.com Contact: Mr Kinan Haddad Public Accountant and Business Adviser Business Activity: Help for SMEs in the UK with growth; also helps Middle East entities to cope with international standards and supports international businesses with investments in the UK; promotes business relations between Arab and British entities by providing services in both Arabic and English languages; accounting, internal audit, business advisory and management training services

68 Hanbury Street LONDON E1 5JL Tel: +44(0)20-7247 6312 Fax: +44(0)20-7650 7943 Email: blotz@salamonandseaber.co.uk; anwar@salamonandseaber.co.uk Website: www.salamonandseaber.co.uk Contact: Mr Michael Blotz - Managing Director Business Activity: Analytical chemistry testing laboratory

3 Heasewood HAYWARDS HEATH West Sussex RH16 4TJ Tel: +(0)144-4410 991 Email: melanie@chearygallagher.com; sarahwachter@hotmail.com Website: www.wachter-gallagher.com Contact: Miss Melanie Cheary - Director Business Activity: Training and support services for women in the Middle East, Africa and Asia who seek to enhance their presence in business and politics; emphasis on transferring practical skills. Ambition is to build a network of confident female communicators and leaders that will be sustainable for future generations

Real Time Inventory Management The Thorn Building Studley Castle STUDLEY Warwickshire B80 7AJ Tel: +44(0)1527-854 993 Fax: +44(0)1527-854 816 Email: ken.vidler@rtim.co.uk Website: www.rtim.co.uk Contact: Mr Ken Vidler - Managing Director Business Activity: Inventory management, stock taking

Sahara Africa Abi Setta Second Street Behind Ghabba Samawiya Tripoli LIBYA Tel: +218 21 3408 678 Fax: +218 21 3408 679 Email: d.nobre@compass-hq.com Website: www.compass-hq.com Contact: Ms Kathryn Jennings - Managing Director Business Activity: Oilfield equipment and consumables

Sharief Ibrahim Limited t/a Pdmclinic.com 16A Bowes Road WALTON ON THAMES Surrey KT12 3HS Email: drshariefibrahim@gmail.com Website: www.pdmclinic.com Contact: Dr Sharief Ibrahim Consultant Physician, Managing Director Business Activity: Medical clinic provides general and specific group medical care as well as prevention of chronic diseases and health promotion

The Universal Group 86 Rafaelo Batino SKOPJE 1000 Macedonia Tel: +389 220 40518 Email: info@theuniversalgroup.net Website: www.theuniversalgroup.net Contact: Mr Simon Harris - CEO Business Activity: Multi-jurisdictional legal support for over 140 jurisdictions; notary service, oaths, power of attorney, cross border contracts, ITT and tender response validation, legalisation, corporate governance, company secretarial and precedent document services

Ward Williams Limited Belgrave House 39-43 Monument Hill WEYBRIDGE Surrey KT13 8RN Tel: +44(0)1932-830 664 Fax: +44(0)1932-830 733 Email: richard.hayward@wardwilliams.co.uk Website: www.wardwilliams.co.uk Contact: Mr Richard Hayward - Director Business Activity: Chartered accountants and business advisers

Withers LLP 16 Old Bailey LONDON EC4M 7EG UK Tel: +44(0)20-7597 6000 Email: caroline.gallagher@withersworldwide.com; emma.copestake@withersworldwide.com Website: www.withersworldwide.com Contact: Ms Caroline Gallagher - Head of Client Relationship Management Business Activity: Legal services

ECONOMIC FOCUS CHAMBER NEWS

ARAB-BRITISH CHAMBER OF COMMERCE

93

ADVERTORIAL

COMMITTED TO YOUR SUCCESS National Bank of Egypt (UK) Ltd

We are a wholly owned subsidiary of National Bank of Egypt – Cairo, the largest and oldest bank in Egypt.

With total assets approaching USD50 billion, it is also one of the largest banks in Africa and the Middle East.

NBEUK is a British bank with major connections in Egypt and around the world and, with origins dating back to 1898, is also amongst the oldest banks operating in London.

If you are looking to do business in Egypt, you’ll need the benefit of an experienced guide. In addition to providing the normal

range of banking services, National Bank of Egypt (UK) Ltd can also help you with: l Business Contacts l Trade Finance l Documentary Credits l Guarantees and Bonds l Foreign Exchange

We invite you to visit our website for more information about our services at www.nbeuk.com or contact us now at: +44 (0)20 7389 1280 to speak to a member of our Business Development Team 11 waterloo place, london sw1y 4au telephone: 020 7389 1200 , fax: 020 7930 8882, swift nbeggb2l, telex: 916625 nbeldn g

l Introduction to Local Capital Markets

What’s your mind?

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What’s • • • •

• Customers ••Customers Customers • Talent ••Talent Talent • Leadership capability ••Leadership Leadership capability capability Organisation effectiveness • •Organisation Organisation effectiveness • effectiveness

• Industry changes ••Industry Industry changes Drivingchanges innovation ••Driving Driving innovation innovation Delivering value ••Delivering Delivering value value Sustainability •Sustainability Sustainability

Ashridge is a world class business school.

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Ashridge aa world class business school. education, consulting and research we can Through our combination executive Through our combination ofof executive help you tackle today’s complex leadership education, consulting and research can education, consulting and research wewe can andyou organisation issues to achieve results. help you tackle today’s complex leadership help tackle today’s complex leadership al and organisation issues achieve results. and organisation issues toto achieve results.

To discuss how we can work with you please contact Hendrikz, Director Ashridge Middle East To discuss how we can work with you please contact ToRory discuss how we can work with you please contact Rory Hendrikz, Director Ashridge Middle East Rory Director Ashridge Middle East Tel:Hendrikz, +971 50 5540905 Email: rory.hendrikz@ashridge.org.uk Tel: +971 5540905Email: Email: rory.hendrikz@ashridge.org.uk Tel: +971 5050 5540905 rory.hendrikz@ashridge.org.uk www.ashridge.ae www.ashridge.ae www.ashridge.ae Arab-British Chamber of Commerce Economic Focus_CorporateAd_Feb2013.indd 1

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ECONOMIC FOCUS CHAMBER NEWS

ARAB-BRITISH CHAMBER OF COMMERCE

“Our “Our “Our family family family has has has worked worked worked hard hard hard toto ensure to ensure ensure the the true the true true Italian Italian Italian traditions traditions traditions remain remain remain atat Signor at Signor Signor Sassi.

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Carlo Carlo Carlo Distefano Distefano Distefano Marcello Marcello Marcello Distefano Distefano DistefanoAlessandro Marissa Marissa Distefano Distefano Distefano Alessandro Alessandro Distefano Distefano DistefanoMarissa Chairman Chairman Chairman

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Signor Signor Signor Sassi Sassi is Sassi proud is proud is proud to announce to announce to announce ourour new our new Venetian new Venetian Venetian style style restaurant; style restaurant; restaurant; Cicchetti Cicchetti Cicchetti Knightsbridge Knightsbridge Knightsbridge Green, Green, Green, London London London SW1X SW1X SW1X 7QL 7QL 7QL Tel:Tel: 0207 Tel: 0207 584 0207 584 2277 584 2277 2277

215215 Piccadilly, 215 Piccadilly, Piccadilly, London, London, London, W1JW1J 9HL W1J 9HL 9HL Tel:Tel: 0207 Tel: 0207 4949435 0207 4949435 4949435 www.sancarlocicchetti.co.uk www.sancarlocicchetti.co.uk www.sancarlocicchetti.co.uk piccadillycicchetti@sancarlo.co.uk piccadillycicchetti@sancarlo.co.uk piccadillycicchetti@sancarlo.co.uk

www.signorsassi.co.uk www.signorsassi.co.uk www.signorsassi.co.uk signorsassi@sancarlo.co.uk signorsassi@sancarlo.co.uk signorsassi@sancarlo.co.uk @sancarlo_group @sancarlo_group @sancarlo_group PRIVATE PRIVATE PRIVATE ROOM ROOM ROOM AVAILABLE AVAILABLE AVAILABLE

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Signor Signor Signor Sassi Sassi |Sassi London | London | London Kuwait Kuwait Kuwait Beirut Beirut Beirut Bangkok Bangkok Bangkok

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NYSE: JEF Jefferies.com

CONTACT Ashraf Meleka Senior Vice President +44 (0)20 7548 4033 ameleka@jefferies.com