Global Opportunity | Middle East 2015 by Global Opportunity

British Expertise

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Global Opportunity Middle East 2015

Editor Sarah Cartledge sarah@tpggroup.co.uk

Welcome to Global Opportunity Middle East 2015

Features Editor Judith Baker judith@tpggroup.co.uk

Designer Oscar Bowring oscar@tpggroup.co.uk Sales Director Karen Frieze karen@tpggroup.co.uk Publisher Steve Gardner 020 7490 0609 steve@tpggroup.co.uk

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Features Writer Greg Baker greg@tpggroup.co.uk Art Editor Nadia Nelson nadia@tpggroup.co.uk

| Editorial

Welcome to Global Opportunity Middle East, born out of the success of Global Opportunity 2014, which showcased British expertise to the world. We received so many emails of support and encouragement, particularly from Middle East companies, that we decided the region deserved special attention and focus. This publication brings together the voices from a range of perspectives and sectors to highlight the potential of the Middle East and North Africa, and to emphasise the success that British companies have and continue to have in this exciting and emerging part of the world. Doing business in the Middle East requires insight and selectivity, but with the support of the UK government innumerable businesses over many decades have overcome the barriers to success. There is huge investment across a number of sectors in which British companies have the capabilities to succeed, including aviation, infrastructure, healthcare and sustainable developments. British expertise and services are highly valued in these sectors and there have already been multiple examples of how UK companies can use this expertise to assist with the development of the Middle East nations. Within these pages we hear industry leaders and government officials offer their knowledge and expertise on the region and the potential it holds. Despite growing competition from global companies, ‘Brand Britain’ is held in high regard due to long historical ties, and there is a great confidence that UK companies have the capabilities to face the challenges head on. You will also find a comprehensive overview of the prospects in the MENA region. The largest is, of course, the Al Maktoum International airport project in Dubai that looks set to become a worldwide hub of international

air travel and bring further investment to the region. With UKEF’s expression of interest letter of 2014, there are an enormous number of opportunities for British companies in this project alone, and our special aviation section explores these in depth, speaking to the experts who are there at ground level. The airport will further establish the Middle East and North Africa as a primary global business centre. I hope that Global Opportunity Middle East offers insight into the commercial aspects of the region and creates a space for thought and discussion.

Sarah Cartledge Editor, Global Opportunity Middle East

This publication brings together the voices from a range of perspectives and sectors to highlight the potential of the Middle East and North Africa.’

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Contents

003 Editor’s Letter Welcome to Global Opportunity Middle East and North Africa

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008 Introduction: Creating opportunities for overseas trade Dominic Jermey OBE, has been the Chief Executive of UK Trade & Investment (UKTI) since June 2014. He was previously Her Majesty’s Ambassador to the United Arab Emirates, giving him an in-depth knowledge of trade links between the Middle East and the UK. Here he discusses how bilateral trade can be encouraged and the opportunities that are available to investors and innovators

012 Removing the risk As a government organisation, UKEF is in the unique position of being able to create finance for the UK export market and stimulate the economy, says Ali Sherwani, Deputy Head of International Business Development Division at UK Export Finance

016 A new global player In just over fifteen years, Qatar has transformed itself from a relatively unknown Gulf state to a prominent player on the world stage, says British Ambassador Nicholas Hopton

018 Qatar 2022 Hassan Al Thawadi, Secretary General of the Supreme Committee for Delivery and Legacy, speaks exclusively to Global Opportunity Middle East about organising the Middle East’s first football World Cup

022 The gateway to Africa With a history of collaboration and recent links between the two Stock Exchanges, business relations between Morocco and the U.K have never been stronger says Clive Alderton, Her Majesty’s Ambassador to the Kingdom of Morocco

026 New horizons As he bids farewell as the Prime Minister’s Trade Envoy to Morocco, Lord Sharman explains why the country holds the key to unlocking the potential of Francophone Africa

030 Taking stock Global markets like Morocco place huge value on the experience and expertise of London markets, and recent agreements reflect that, says Nikhil Rathi, Director of International Development for London Stock Exchange Group

034 CBD Consultancy: Structuring for success in the UAE CBD Consultancy works with clients seeking to expand their business in the UAE, by helping identify the most appropriate route to market and untangling local laws and restrictions placed on foreign investors, says Helen Barrett, Partner at CBD Consultancy

036 Sharia Finance With the Muslim population economy growing rapidly, businesses cannot afford to ignore Islamic finance. EY’s Islamic Finance Lead Partner Ashar Nazim explains what it is and where the key opportunities lie

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038 H yder Consulting: The next steps on the road to transport infrastructure The UAE is investing huge sums of money into developing its infrastructure, but masterplans must be fine-tuned to ensure the balance of sustainable development and longlasting success, says Sameer Daoud, UAE Managing Director at ARCADIS Middle East

042 Atkins: Building global expertise The Al Maktoum airport expansion in Dubai is a huge project with complex infrastructure, but the UK companies involved with the project are rising to the challenge says Roger Cruickshank, Transport Strategist with Atkins

044 Arena Group: Setting the stage for iconic events The Middle East has hosted some of the world’s largest sporting events, with well-designed temporary structures vital to their success, says Judith Baker

046 The route to success The expansion of Al Maktoum International Airport in Dubai represents one of the most important developments in the Middle East today, say Shakir Khaja, UKTI Airport Specialist, and Rashid Khawaja, UKTI Trade & Investment Advisor, British Embassy Dubai

052 B ritish Aviation Group: Collaboration and cooperation - the future of airport business opportunity With major new projects like Al Maktoum International Airport in Dubai in the pipeline, the Middle East aviation industry is offering up huge business opportunities. British skills are in demand and there are many resources to help companies get off the ground, say Alan Lamond from the British Aviation Group and Marcus Archer from UKTI

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sponsored by

056 What is a trade mission? A five-day trade mission with UK Trade & Investment and the British Aviation Group is no holiday, but it opens up a whole new world of business opportunity says Steve Gardner, Managing Director at Inspire Publishing

060 G4S: Managing airport security Aviation security has changed dramatically over the last few years, and remains a complex yet essential part of airline travel. Advances in technology may have improved customer experience, but passenger safety is always the highest priority, says David Stockton, Chief Executive Officer of G4S UAE

064 Vector Consultants: Prioritising passenger needs Passenger needs should be the focus of decision-making within the aviation industry, not just to maintain custom but to increase commercial opportunities, says Alan Stevens from Vector Consultants

066 Atkins: Understanding the cities of the future Atkins is rising to the challenge of creating liveable cities which will be fit for purpose in the long term, say Tom Hasker and Julian Hill of Atkins

070 Spectrum Geo: Adapting to new market conditions Oil prices may have halved but the industry is still strong, says Dr Neil Hodgson, Executive Vice President Mediterranean and Middle East, Spectrum Geo

074 Private Jet Charter: Flying high in the Middle East Private aviation has really taken off in the Middle East, says Hugh Courtenay, CEO of Private Jet Charter

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076 t angerine: Enhancing passenger experience through design Great airport design is underlined by a seamless customer experience, says Matt Round, Creative Director at tangerine design consultancy

Contents

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094 Innesco: Communicating value Brand awareness and market perceptions are crucial to any major property and retail project’s success. Expert marketing agency Innesco utilises the full power of brand, marketing and communication to add considerable value to such projects across the region, says founder and MD Dan Innes

080 BOXARR™: Simplifying the complex BOXARR™ software allows sophisticated interdependent systems to integrate seamlessly, say CEO Alasdair Pettigrew, and Dr Robert Smith, Chief Scientific Officer

096 Egypt: Growing markets Moving on from its disruptive past, Egypt is on the road to stability and economic recovery with an ambitious programme of investment initiatives, says Judith Baker

084 Windhoist: The winds of change Utilising the potential for renewable energy sources is key to ensuring Morocco’s sustainable development. The construction of Africa’s largest wind project by the British company Windhoist is just an example of what is to come, says Greg Baker

086 COINS: Supporting construction with software The abundance of infrastructure projects in the Middle East creates opportunities across the construction industry, and construction software is a vital tool to ensure the smooth running of such vast operations, says Nigel Cope, co-founder of COINS

088 Law2020: International legal training As commercial relationships become more global, legal training needs to have a strong international element, so high-quality courses based on realistic case studies, practical exercises and group discussion are vital, say Michael Twomey and Malcolm Dowden from Law2020

090 BEBD: Gateway for the Gulf economies A culture of innovation and openness helps Bahrain diversify its economy, says Vivian Jamal, Executive Director – Business Development Bahrain Economic Development Board (EDB)

092 Serapid: Movement for the future Serapid is a horizontal and vertical motion lifting company that has been involved in some of the most unique and creative moving features in the world, says Iain Forbester, Business Development Director for Serapid

100 Jordan: Leading role The British feature film Kajaki is a sign that with support from UKTI and local authorities, the creative industries can blossom in Jordan

102 S outhern Iraq: Opening of opportunities in Iraqi oil fields The opening of new oil fields in Southern Iraq is creating a wealth of opportunities for British companies

104 Oman: Traditional progress One of the more traditional countries in the Middle East region, Oman kept to itself for most of the 20th century. Now however, opportunities are presenting themselves as the country looks to diversify its economy and increase trade with the wider world

106 Kuwait: A developing regional hub Positioned at the top of the Gulf and with development occurring across a number of sectors, Kuwait is well placed to become a focus of Middle East trade

108 Saudi Arabia: Opportunity Arabia Oil rich and with a young population, the prospects in Saudi Arabia are numerous, says Paul Clark, Head of UKTI in Riyadh

110 Middle East Association: Helping MENA trade The Middle East Association is a multi-sector trade association that works to encourage bilateral trade with the Middle East and North Africa, says Rebecca Ryan

112 K ings College Hospital Clinic Abu Dhabi: Shining a light Opening a brand new hospital clinic in Abu Dhabi is a challenge, but with the world-class reputation, knowledge and experience of King’s College London behind the project, it can be a growing success, says Eileen Lock, Clinic Director at King’s College Hospital Clinic Abu Dhabi

116 Moorfields Eye Hospital: Second sight Understanding local needs is as vital as exporting expertise for a successful overseas hospital, says Mariano Gonzalez, Managing Director of Moorfields Hospital Dubai

118 F Cm Travel Solutions: Less travel stress, more travel smarts

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The hidden costs of stressed-out travellers on businesses can be huge

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info@boxarr.com

Dominic Jermey

Dominic Jermey OBE, has been the Chief Executive of UK Trade & Investment (UKTI) since June 2014. He was previously Her Majestyâ&#x20AC;&#x2122;s Ambassador to the United Arab Emirates, giving him an in-depth knowledge of trade links between the Middle East and the UK. Here he discusses how bilateral trade can be encouraged and the opportunities that are available to investors and innovators

Creating opportunities for overseas trade How would you describe the aims and objectives of UKTI?

How do you go about encouraging these small businesses to get into the export market?

UK Trade & Investment is about supporting the internationalisation of the UK economy. We do this in two ways, firstly by supporting outstanding British businesses that are exporting from the UK and forming international partnerships. We are also attracting global investors into the UK. For a number of years now the UK has more foreign investment coming in every year, with more projects than any other country in Europe. As exporters, UKTI helps around 50,000 UK businesses every year.

Itâ&#x20AC;&#x2122;s primarily about de-risking it for them. For a company thatâ&#x20AC;&#x2122;s been operating exclusively in the domestic market, going into the international market can feel like a big leap. We work alongside them and our partners to develop their export business and assist them with issues like organising an export plan. We then help them find potential partners and customers around the world. They might have a very clear idea of the market they want to be operating in, or they might not know at all. Many UK exporters initially focus on the EU, but at UKTI we are very keen to encourage businesses to look beyond the traditional EU and American markets to some of the emerging economies such as BRICS or the Middle East which are experiencing rapid growth.

Are there any other areas or campaigns that are key to achieving these goals?

We are very focused on High Value Opportunities and Research and Development intensive businesses. We are also trying to encourage the vast number of small and medium sized companies in the UK economy to begin exporting. As a country, we aspire to export a trillion pounds worth of goods and innovations within the next five years, and the real engine for this is going to be the tens of thousands of SMEs that are not currently exporting at the moment, but have the potential to do so. That is why we are trying to encourage our partners - banks, lawyers, accountants, consultants and the Chamber of Commerce - to work together in partnership to get this country exporting and internationalising.

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How do you define High Value Opportunities?

High Value Opportunities, or HVOs, are opportunities where UK businesses can make a real difference to projects around the world. One example in the Gulf is the extraordinary development of the railway industry, with many thousands of UK companies participating in the plans to create an across Gulf railway programme. The project has the potential to be worth tens of millions of pounds in export for UK businesses,

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Introduction

and their involvement ranges from design, architecture, engineering, security and even the intelligent systems. We have identified 100 of these opportunities around the world so far. We then put together a large UK offer which means that the contracting party, in this case the Gulf governments, are able to engage with a group of British businesses who more or less have an entire solution. It is much more powerful doing this as a group early on in the process, before other companies from around the world campaign to get the business themselves.

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Dominic Jermey

DOMINIC JERMEY OBE, CVO Dominic Jermey is Chief Executive of UK Trade & Investment (UKTI) since June 2014. Dominic serves as a Director-General for both the Foreign and Commonwealth Office (FCO) and the Department for Business, Innovation and Skills (BIS). He sits on the FCO Management Board and BIS Departmental Board. Dominic was appointed an OBE in 2001 and CVO in 2010.Dominicâ&#x20AC;&#x2122;s previous roles include Her Majestyâ&#x20AC;&#x2122;s Ambassador to the United Arab Emirates (2010-2014)

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Dominic Jermey

What would you say to small companies that may be intimidated by the large sums of money associated with these opportunities?

I’d say it‘s a real chance to be part of the supply chain. A great example of where smaller companies are able to participate where they perhaps would not have been able to before, is the Al Maktoum airport development. UK Export Finance has offered an expression of interest letter for US$2bn, which means that the purchasers on the Emirati side in Dubai are very open to approaches from small companies as well as our prime contractors. This is because the Emirati side know that if UK Export Finance underwrites the loan in due course that money can only be used to buy goods and services from the UK companies and will therefore seek to maximise purchases from the UK. It will be for the Emirati side to nominate contracts to be financed from the loan. To take advantage of this opportunity UKTI with the support of our Embassy in Dubai, UK Export Finance and the British Aviation Group have already led two trade missions comprising 100 companies both small and large to introduce their capabilities to the Emirati side. From a UK company’s perspective how do trade missions work and expand business?

Trade missions are really important. They are a great way to explore a new market, and with people who may have more experience than you. Just as important is the contacts you make when you are there, which you may not be able to do on your own. It’s the chance to meet some very senior people in the contracting organisations around the world, and really understand their strategy. This then gives you the opportunity to go back later and meet more operational people, but to do so with the confidence of knowing exactly what the organisation wants. It also means you are far more prepared to pitch effectively in those crucial sales meetings. How has your previous role as ambassador to the UAE prepared you for the challenges that your current role presents within the Middle East?

The Middle East is an area of great opportunity. Through my role as the ambassador to the UAE, I

‘As a country, we aspire to export a trillion pounds worth of goods and innovations within the next five years, and the real engine for this is going to be the tens of thousands of SMEs that are not currently exporting at the moment, but have the potential to do so.’

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developed a good understanding of the Gulf and the broader Middle East region. That is tremendously helpful in terms of leadership at UKTI because I can see opportunities for UK businesses outside of the traditional markets of Europe and North America. In my role as ambassador in UAE I dealt with both UK companies wanting to operate in the Middle East, and Middle East companies looking to set up in the UK. We are working very closely with ambassadors across the Middle East because there is very often a connection between politics and the senior people in business. At UKTI we can open up opportunities by linking everything together and making sure the best opportunities are there for UK businesses. What are the key areas or sectors that UK businesses should be getting involved with?

UK businesses are actually winning in quite a number of areas. Clearly this is a region that’s experiencing both turmoil and growth, but nonetheless these are governments that accept a very clear direction in terms of investment and infrastructure. They have massive plans about how they want to develop their societies and the physical infrastructure around them. UK businesses can be tremendously important in the development of these societies. There are opportunities in education and healthcare, and we have seen some really interesting

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Introduction

Dominic Jermey

How about foreign companies trying to get involved with the UK?

If you have an overseas partner looking to work with the UK, the easiest way to approach this is to via the embassy or High Commission. We are really keen to engage with inward investors and we operate throughout the world, so I can guarantee that there will not be an inward investor who cannot get in contact with us through that portal of local embassy, High Commission or UKTI team. If they are unsure where to go, it’s best to try the ambassador as they are very motivated to work with inward investors looking for opportunities in the UK. What kind of services or support do you offer to investors outside the UK trying to get into our market?

The United Kingdom is often seen as a springboard into the US market and a way into the EU market, making it highly attractive to an investor. By understanding the investor’s business we try to put forward a best possible proposition, enabling them to judge how the UK competes against other opportunities they may be looking at. We are very confident about the desirability of the UK offer, and indeed inward investors are too, which is why year after year the UK is consistently the most attractive destination for foreign investment in Europe. opportunities with UK operators in terms of bringing international standards to penal reform. There are even opportunities in renewable energies in the Gulf, which perhaps you would not think of for such oil rich countries. There are also huge opportunities in engineering, as seen by the vast sales of Airbus in the Gulf over the last few years. So there is a really wide range of possibilities, but the challenge for us is working out where each individual company can get involved.

The Middle East is an area of great opportunity

How can British businesses become more competitive internationally?

It is essential that before you try to export you are fully prepared for it. Advice can come from UKTI, a chamber of commerce and even from a local bank, which can be a great source of information. I would say for any business looking to do things internationally, seeking this advice is essential before taking what can feel like quite a big step.

How does UK Export Finance support UK businesses trying to tap into the market?

Finally, where do you see the UK’s place on the economic stage in ten or 20 years’ time?

UK Export Finance (UKEF) has revolutionised itself over the last few years. It is now working alongside UKTI to reach out to small companies as well as the really big companies. They offer bespoke underwriting services, which means UK businesses have the confidence that their finances are supported before they move into the exporting area. I am really pleased that UKTI and UKEF are working closely together on this, so the customer doesn’t have to deal with two different organisations.

Right now we are seeing UK rates of growth that others in the EU are particularly envious of. I think that suggests there is an underlying confidence and integrity in the UK economy that is going to stand us well in the long run. I see the UK as being part of a really well-connected global economy, where we compete in the traditional manufacturing and professional service areas, but also in some of the new innovative cyber businesses. That is why it’s important we work in partnerships with business and have a real concentrated push around globalising the UK economy.

What is the point of contact for SMEs or large organisations wanting to get involved with UKTI?

There are three easy ways of getting in touch. The first is to go to the UKTI part of the www.gov.uk

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Further information gov.uk/ukti

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website which is a portal to all our services. The second is to work with an international trade advisor who also can be contacted through the website. Thirdly, if you have a very clear idea of which market you want to get involved with you can approach the UKTI team directly in the Embassy or High Commission in that market around the world.

Ali Sherwani UKEF

Construction site in the city of Dubai

Removing the risk As a government organisation, UK Export Finance is in the unique position of being able to create finance for the UK export market and stimulate the economy, says Ali Sherwani, Deputy Head of International Business Development Division at UKEF 12

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K Export Finance is the UK’s export credit agency, helping UK exporters win business overseas by providing various forms of financial support. The Al Maktoum airport project in Dubai offers a huge opportunity to help with consulting, construction and equipment supply. We can facilitate this in a number of ways, including by offering long-term loans at competitive interest rates. At an early stage of this process we issue an expression of interest, such as the one now issued to Dubai Aviation Engineering Projects (DAEP) for a potential $2 billion loan.

Ali Sherwani UKEF

‘Working alongside UKTI is very important for us. Even with our networks we cannot match the amount of advisors that they have worldwide, and so they are key to spreading the message of the help we can offer.’

Boosting British trade UK Export Finance (UKEF) offers a number of financial products, including lending money to foreign governments and organisations specifically for them to buy British goods and/or services. Businesses qualifying for these loans must operate in the UK, although we do not insist the whole contract comes from the UK, and can go down to a minimum 20 percent UK content. We can then provide finance for up to 85 percent of the contract value. This definition expands the number of companies eligible for the loans, including a large number of foreign organisations that have subsidiaries within the UK. UKEF assesses any potential overseas buyers just as a bank would, establishing if they are eligible to borrow the large amounts of money that we can offer. This needs to be determined as we are a guarantor or direct lender for that amount of money. The money will be provided either from the banks or from UKEF’s new product, the Direct Lending Facility. It is important to remember that UKEF is a government department and we complement rather than compete with the private sector. We aim to fill the gaps left by the private sector when banks or insurance companies are unable to take risks, and we have a very good track record doing this. Our underwriters, economists and risk assessment staff have a vast amount of expertise on how emerging markets work. Our aim is to help increase the UK’s exports, not to make a profit. Our financial support for businesses and banks comes with the full faith and credit of the UK government. We do charge a risk premium but that is not to pay shareholders, simply

ALI SHERWANI

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Ali Sherwani is the Deputy Head of International Business Development at UK Export Finance (ECGD) covering all the sectors apart from civil aircraft. Ali’s role is to engage with UK exporters, project sponsors, overseas borrowers and banks to understand their requirements and to work with them so that they make effective use of UK Export Finance support. Ali has held various positions within UK Export Finance including Treasury Management, Short and Medium Term Underwriting, Claims and Marketing.

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to ensure we operate at no net cost to the taxpayer, over time.

Middle East markets UKEF has supported thousands of projects around the world, and we have already been working successfully in the Middle East for a number of years. We were initially involved in the building of Jebel Ali port, a really important project that helped to get Dubai going. We have also provided Emirates Airlines with loans to help with purchases of Airbus aircraft, as well as assisting Kier and Carillion on large construction projects. We are also looking to guarantee a sukuk issue in the future to facilitate contracts in the Middle East. The UAE is a very important market and one where we wish to continue working in the future, particularly for our prime contractors. What we have offered to DAEP and the Al Maktoum project is an expression of interest for US$2 billion, and we have been very proactive in our pursuit of the project. We have worked alongside UKTI and our embassy to interact with DAEP for over a year and a half, emphasising the UK’s interest. Working with UKTI is very important for us, as even with our networks we cannot match the amount of advisors that they have worldwide, so they are key to spreading the message of the help we can offer. The first phase of the Al Maktoum project is is set to cost approximately US$32 billion, and of course DAEP need to source that finance. We can potentially offer them US$2 billion towards this figure, as long as the money is used to buy UK goods and services. This makes British companies very interesting to the DAEP, but obviously this only works if there is interest from both sides. However having completed two trade missions to Dubai, the first with 70 British companies involved, UKEF is confident that this is the case.

Financial products As well as the loan project for Al Maktoum airport, UKEF has a number of other financial products, including products created after the 2008 financial

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Ali Sherwani UKEF

‘We have already completed two trade missions to Dubai with about 70 British companies involved.’

Ali Sherwani UKEF

| crisis which were not previously available. When a British manufacturer pitches to an organisation abroad, the foreign company may be interested but unwilling to pay the advanced payment because they do not know the British company well enough. They require a bond to ensure they are not in danger of losing this advanced payment, which would usually be provided by a bank. However since the financial crisis, banks have been less likely to provide these and the criteria for obtaining one have tightened. This is where UKEF comes in, working alongside the banks to take 80 per cent of the risk. We can also help with bid and performance bonds. There are a number of other products that UKEF offer, including our working capital product, where we provide finance for UK companies to complete the job on a day-to-day basis. Our credit insurance product also aims to neutralise the risk of not being paid by the buyer. For example if a foreign buyer goes bankrupt or there are economic problems in the other country, we can still pay out. As a government organisation these products are just some of the advantages we provide. We are able

to take a longer term perspective than banks. For example in the 1980s a lot of emerging countries had cash flow problems, and whereas a commercial bank would write off the loan off as a loss, we were able to reschedule their debt so we could recover the money further down the line. UKEF’s new proactive capacity has brought great success so far, being in the unique position of being able to create finance for the UK export market and stimulate the UK economy. With the assistance of UKTI and our embassy network around the world we can ensure that UK businesses can continue to be involved in large projects, including those occurring within the Middle East. The US$2 billion we have offered the DAEP for the Al Maktoum project signals our ambition and our confidence in the continuing success of the UK export market.

Further information www.gov.uk/uk-export-finance

Plan for the new Al Maktoum International Airport

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Qatar

A new global player In just over fifteen years, Qatar has transformed itself from a relatively unknown Gulf state to a prominent player on the world stage, says British Ambassador Nicholas Hopton

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he changes are easily seen when driving through the capital city, Doha. Once a small, quiet pearl fishing city on the shores of the Arabian Gulf, it now boasts a modern downtown financial district with highly distinctive skyscrapers, vast shopping malls and a wealth of five star hotels that wouldn’t look out of place in London or New York. Added to this is the ongoing redevelopment of Msheireb, the original heart of the city, into a commercial and residential eco-friendly hub with strong ties to its cultural past. Qatar has significant oil and gas reserves, and is the world’s wealthiest country in terms of GDP per capita. Most of the state’s major energy projects are now up and running which means that, short of a complete collapse in global energy

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Qatar

prices, Qatar will have access to significant funds in the decades ahead. Qatar is using the income to diversify its economy and to spread its risk by investing overseas, with the UK as a main investment destination. There is also a very strong focus on education for the next generation of Qataris.

Qatar National Vision 2030 Qatar has embarked on one of the largest and most ambitious infrastructure programmes in the world, with projected spend of more than US$220 billion over the next decade. The catalyst for this transformation is the Qatar National Vision 2030. The country, through the four pillars of economic, social, human and environmental development, aims to be an advanced society capable of sustaining its development and providing a high standard of living for everyone. The FIFA World Cup in 2022 is also a driver for this transformation, including the development of Qatar’s first underground and light rail systems, an inter-Gulf rail network, major road construction and the provision of thousands of extra hotel rooms, not to mention eight FIFAcompliant stadia and 70 associated training grounds and facilities. The changes are not just seen in Qatar, the country is reaching out beyond its shores. Qatar invests heavily overseas, with over £30bn invested in the UK alone, including investments in Harrods, The Shard, a stake in Sainsbury’s, BAA and The London Stock Exchange to name but a few. This massive transformation couldn’t have happened without the revenue from the world’s third largest gas reserves, and the vision of the previous Emir, HH Sheikh Hamad bin Khalifa Al Thani, who spear-headed Qatar’s growth and transformation over the last two decades. The new Emir, HH Sheikh Tamim bin Hamad Al Thani is continuing the legacy of his father in creating a modern society that is

QATAR FAST FACTS

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l Qatar is one of the world’s fastest growing economies with an average GDP growth of 13.2% from 2003-13. It was the world’s fastest growing economy from 2008-12, and had the highest GDP per capita of US$106,000 in 2014. l IMF forecasts a 6% GDP growth for Qatar in 2014. l Qatar is the UK’s third largest export market in the Middle East and North Africa region. In 2014, UK export of goods to Qatar increased 14% to 1.67bn. UK exports of services were an additional £649m in 2013 (the latest figures available). l The majority of Qatar’s exports to the UK are LNG. The UK accounts for a third of Qatar’s exports to the EU. Qatari exports to the UK in 2014 totalled £2.2bn. l As Qatar prepares to host the FIFA World Cup in 2022, projects and construction contracts awarded in 2013 rose by 21% to US$19.4bn, up from US$16bn in 2012. l Qatar Tourism Authority aims to attract 7 million annual visitors and enhance tourist spending in the country to US$10.7bn by 2030.

NICHOLAS HOPTON Nicholas Hopton has been British Ambassador to Qatar since 2013. His previous posting was as British Ambassador to Yemen. Prior to that he was head of International Organisations Department at the Foreign & Commonwealth Office, which followed on from a role at the Policy Unit at No 10 Downing St and previously in the National Security Strategy Team at the Cabinet Office.

sustainable not only through massive infrastructure development, but also education, health, research and culture.

Long-lasting relationships This rapid pace of change and development means that many countries are interested in Qatar, and British companies are not alone in wanting to be part of its exciting future. Many British companies are already operating successfully in Qatar, from the large multi-nationals such as Shell and Vodafone, to SMEs that provide niche products and services. Opportunities can be found in all sectors. Most businesses need to have a local sponsor or business partner with a 51/49 percent split in favour of the Qatari partner. Despite Qatar’s immense wealth, doing business in the country can be complex and time consuming, however businesses prepared to invest their time can reap worthwhile rewards. Overseas companies need to build longlasting personal relationships with local businesses. Email is not the best form of communication; it is far better way is to meet in person. Qataris are proud of their culture and heritage, so some knowledge about their country and its history go a long way. Above all, family and hospitality is everything in the Arab world. British exporters who may be interested in doing business in Qatar are encouraged to get in touch with the UKTI team in Doha or the UK, who are happy to talk through the opportunities and risks involved.

Further information www.ukti.gov.uk

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| Global Opportunity Middle East 2015

Hassan Al Thawadi

Qatar 2022

Hassan Al Thawadi, Secretary General of the Supreme Committee for Delivery and Legacy, speaks exclusively to Global Opportunity about organising the Middle East’s first football World Cup Ever since Qatar won the bid to host the 2022 FIFA World Cup, huge attention has been focussed on this small country’s preparations. Hassan Al Thawadi, the Secretary General of Supreme Committee for Delivery and Legacy, has been at the forefront of the organisation and has become the face of Qatar 2022. In an exclusive interview Hassan Al Thawadi outlines the plans for the tournament, showing how the event is not just about football but about Qatar’s evolving place on the world stage. How many infrastructure projects are taking place currently and how many will there be in total?

The Supreme Committee for Delivery and Legacy has proposed to FIFA eight to twelve potential stadiums and is directly responsible for five of the stadiums that will host matches in 2022. We are

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also responsible for over seventy training facilities and a number of non-competition venues including the international broadcast centre. Our committee has issued ten major tenders to the market encompassing project managers, design consultants and stadium-operations consultants. This will only increase in the coming period. Last summer we finalised our overarching master plan, which includes a comprehensive schedule for all competition venues, non-competition venues and the wider infrastructure that comprises a successful 2022 FIFA World Cup Qatar™. We aim to have all stadiums ready in 2020. The scale of construction in Qatar is phenomenal. 2022 has provided a catalyst for projects aimed at fulfilling the 2030 National Vision. To give you a feel for that scale, let me give you a few samples of national projects. In terms of accommodation, we are looking at in excess of 95,000 hotel rooms by 2022 and working with our partners at the Qatar Tourism Authority, we want to provide the optimum solution for the event in

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| 2022 and simultaneously dovetail with the national tourism strategy. Our infrastructure partners at Ashghal, Qatar’s Public Works Authority, are already implementing major projects which covers 900km of new roads and 240 new interchanges before 2017. Ashghal’s projects over the next five years are worth around QR 100bn – around £20bn. The Qatar Rail’s underground development will play a vital role in connecting tournament venues and providing an optimum mass transit solution for the event and beyond. Qatar Rail has already awarded $9bn worth of contracts. A 37-station network will be launched in 2019, expanding to 56 by 2026 – connecting our entire nation. Doha’s airport has slowly developed into a hub connecting east and west. The new Hamad International Airport is due to open this year and is projected to serve 50 million passengers on an annual basis. The airport’s continued rise is in parallel to Qatar Airways’ continuing expansion – now connecting our capital to over 125 destinations in 6 continents. What will be innovative about Qatar’s approach to the World Cup?

We bid for the FIFA World Cup in the summer because we saw the opportunity to present solutions for players and fans in our country, and others with similar climates, to enjoy the outdoors in cool, safe and comfortable conditions in the summer months. We committed significant time and resources toward proving that we could host the tournament in summer in cool, comfortable and safe conditions. If the international football community reaches a consensus to move the event to an alternate date, we are able to accommodate that change. This would not affect our planning and preparation. Our commitment to cooling technologies will continue, for without it certain parts of the world will be denied the right to host such events. In addition to design elements that consider shading and ‘passive cooling,’ our stadium – in fact – all of our stadiums will utilise integrated cooling technologies to ensure a cool and comfortable environment for spectators, players and officials and to ensure that the stadium can be used all year round. Legacy, innovation and sustainability are always at the forefront of our thinking. During our bid we pledged that a majority of our stadiums would be

HASSAN AL THAWADI Hassan Al Thawadi studied law at Sheffield University and completed his A Levels in Scunthorpe. During his time in the UK he was able to continue his passion for playing and watching football and continues to keep a keen eye on Liverpool FC. As well as his role as Secretary General of the Supreme Committee for Delivery & Legacy, he also served as CEO of the Qatar 2022 Bid Committee.

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Hassan Al Thawadi

‘The scale of construction in Qatar is phenomenal. 2022 has provided a catalyst for projects aimed at fulfilling the 2030 National Vision.’

built with modular components. We don’t want to be left with white elephants. Al Wakrah’s design showcases this, with a capacity of around 40,000 for the tournament and 20,000 in ‘legacy’. Our concept revolves around a modular top tier of seating that can be removed after the event and provided – in collaboration with FIFA and the relevant regional bodies – to countries in need of sporting infrastructure. The end result is a contribution to global sport development and no white elephants in Qatar. As with all of our stadiums, Al Wakrah stadium will be part of a vibrant precinct. Our stadiums will be focal points of their respective communities. We have undertaken studies and met with local community members to ensure that the construction of the precinct reflects the needs of the community. In Al Wakrah, the precinct will include green spaces and parks, a sports facility catering specifically to women and a four-star business hotel to name a few. Suffice to say, I am extremely proud of the innovation that inspired our bid and that will underpin the success of our event. Will all the stadia be air-conditioned and how will this be achieved?

Qatar already has one cooled stadium at Al Sadd Sports Club, retrofitted in 2008. FIFA’s inspection team visited this stadium and experienced the cooling first-hand. In 2010, we constructed a prototype carbonneutral stadium which utilised renewable energypowered cooling technologies to cool the stadium, which FIFA’s inspection team also visited. We are currently in a period of research and development to implement these environmentally-friendly cooling technologies on a larger scale in our stadiums, training pitches, fan zones and public areas for the 2022 FIFA World Cup Qatar™. With such a successful Olympic delivery in London, are you convinced that UK companies can play a large part in the 2022 FIFA World Cup Qatar™?

Absolutely. We are already working with a number of British firms on various projects, and we look forward to developing partnerships with many more. We launched the first design concept in November of 2013, and I’m proud to say that British excellence and innovation will play an important role in our stadium in the town of Al Wakrah.

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Hassan Al Thawadi

| The stadium is designed by the renowned British-Iraqi Zaha Hadid and her firm – Zaha Hadid Architects. The stadium is based on the curved form of the traditional Dhow – a fishing boat that you can still see today sailing off the coast of Qatar. The form provides the structure of a curving roof, which will assist in keeping the stadium cool. We are an ambitious nation and pride ourselves on maintaining the highest standards in everything we do. In order to succeed, we need the best partners. And hence why we visited the UK recently to meet with British businesses and senior officials involved in the organisation of London 2012, where they could explain how they could support the delivery of infrastructure and pass on lessons learnt from the success of London 2012. The mission was an important step in learning about the construction of world-class stadiums. We met a lot of companies who were involved in the delivery of the London 2012 Olympics and looked at how London benefitted in terms of tourism. British expertise and the experience of organising the 2012 Olympics mean the UK is well-placed to support Qatar in delivering the first World Cup in the Middle East. British business is synonymous with two qualities we consider of the utmost importance in a partner innovation and integrity. Qatar is on an important journey. We are putting the building blocks in place for the future of our country. We are aware that natural reserves will not last forever. The Qatar National Vision 2030 envisages transforming Qatar to a ‘knowledgebased’ economy, less reliant on hydrocarbons. The 2022 FIFA World Cup can be a catalyst toward this aim of diversification. Statistics suggested that 70% of the Olympic Delivery Authority’s contractors were SMEs and 72% of LOCOG’s UK resident contracts were won by SMEs. We hope to tap into that expertise which played such a major role in 2012’s operational success. It goes without saying that we are looking for partners who will provide the highest quality technical expertise and client service. We want to work with partners that will have vested interests in the future of Qatar. Partners that will collaborate with us in research and development, innovation, and in creating sustainable solutions in the long-term. SME partners that will engage in joint ventures with local and regional counterparts to deliver quality products and service and play an important role in developing the SME sector through best practice and transfer of knowledge. For Qatar, the United Kingdom is a reliable longterm partner in a climate where international markets are still battling to overcome economic turbulence and instability. In short, the relationship between our nations – on all levels - continues to go from strength to strength. It is my hope today that through the 2022 FIFA World Cup Qatar™ we can create a foundation for enhancing the already strong commercial ties that bind the United Kingdom and Qatar.

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The Khalifa International Stadium and 300 m tall Aspire Tower

Hassan Al Thawadi

Qatar has a reputation for ambition and farsighted projects - how do you see the legacy of the 2022 FIFA World Cup Qatar™?

As you can no doubt understand, the 2022 FIFA World Cup Qatar™ isn’t just thirty days of football for Qatar. This is building a nation. Creating a hub of innovation. Investing in our future. Leaving a legacy for our children. Investing in our future. Changing the international perceptions of the Arab World. As I have mentioned here, legacy, innovation and sustainability are always at the forefront of our thinking. From our pledge to share the know-how behind our second-generation cooling systems with countries that experience similar summer climates to our own, we will be able to democratise megaevent hosting. This will leave a legacy of opportunity for nations and parts of the world that previously would not have been able to host such events due to climate concerns. As mentioned, several of our planned stadiums will have modular components that will be disassembled following the tournament and donated to developing nations that require sporting infrastructure. This will simultaneously create a genuine development legacy for FIFA and the football community, while also ensuring that Qatar is left with stadiums suitably sized for its needs. The investments being made today will prove crucial to the success of the 2022 FIFA World Cup Qatar™, but also will pay dividends to inspire and incentivise generations to come. The youth of Qatar, and of the region, are excited about the opportunities that the commitment to and the development of sport have created. It is up to us to ensure that the correct foundations are laid so that these opportunities for growth through sport are developed and utilised properly and that the benefits extend to the young population of our region. Those of you who have done business in Qatar will know that we prefer to build lasting relationships and that those who commit to the long-term and understand our vision will reap the rewards.

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Clive Alderton

The gateway to Africa With a history of collaboration and recent links between the two Stock Exchanges, business relations between Morocco and the U.K have never been stronger says Clive Alderton, Her Majesty’s Ambassador to the Kingdom of Morocco Traditionally the UK has always had a good relationship and trading links with Morocco. Broadly speaking, where do the main opportunities lie for British companies in Morocco?

Let me offer a couple of words on context. People are often surprised to discover the UK/Morocco relationship dates back a staggering 800 years, to the time of King John (of “Robin Hood” fame). During that time – and peaking in the 19th century – the UK has been a key partner. So much so that, for example, the local dialect word for a traditional silver Moroccan teapot is “Manchester” because that’s where the highest quality silverware was traditionally sourced. I spend a lot of time debunking the myth that this market is sewn up by other countries. Not so! Just look at bilateral trade in goods, which exceeded the symbolic £1 billion mark in 2012. Bucking the trend of international economic volatility, goods exports from the UK to Morocco increased by 28% in 2014. The UK is valued here for our straightforward, pragmatic and results-oriented approach to business.

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The old medina in Rabat and Bouregreg River, Morocco

Plenty of UK companies are already “walking the walk”: Shell Vivo Energy, Unilever, GlaxoSmithKline, Lycamobile and G4S. There’s further activity in oil and gas exploration. UK brands including Marks and Spencer, Next, Body Shop, Costa, Monsoon, Mothercare, Aston Martin and Toni & Guy are present. The Prime Minister recognised the importance of this market – and the fact we perhaps hadn’t been giving it the right priority - with the appointment of Lord Sharman as Prime Minister’s Trade Envoy to Morocco in 2013. So it’s going pretty well, but we need to do more. If there was any doubt about Moroccan openness to the UK, witness that the London Stock Exchange was selected last year as the strategic partner for Casablanca Stock Exchange – one of the largest in Africa - beating stiff foreign competition. Staying with Financial Services for a moment the UK - as the world’s most international finance centre - is ideally placed to build on the Stock Exchange partnership. I’ve also been giving particular priority to Education and Training – Morocco sees English Language teaching, vocational training

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Clive Alderton

Despite continuing global volatility, Morocco continues to grow at a very healthy pace. This year the UKTI team here have helped more companies to succeed than ever before. Companies wanting to do business in Morocco can contact the UKTI team based at the British Consulate in Casablanca. The team offers practical, professional assistance on doing business here, based on many years of experience. That includes a range of free and chargeable services and support such as commercial briefings and advice on the best approach to this market, organising visit programmes and trade missions, producing a free online guide to Doing Business in Morocco, and identifying potential agents or representatives. Early contact with UKTI can save companies time and money. I’d always advise an early visit to the market; this place thrives on strong business relationships. Another exciting development is the launch of UKTI’s partnership with the British Chamber of Commerce in Morocco. The Chamber will focus strongly on support to British SMEs and the “matchmaking” between UK and Moroccan companies. My UKTI team will increasingly focus on developing high value opportunities. This should galvanise business between our countries, leading to more jobs and growth in both markets. The Chamber will soon launch a British Business Centre in Casablanca that will be a one stop shop for British business, offering advice, support and flexible office space to UK companies doing business in or with Morocco. What are the benefits of doing business with Morocco and also the major challenges facing British companies?

and professional qualifications as essential for its long -term development. Education and Training is opening up huge opportunities for us in consultancy, project management and technical services for major infrastructure and construction projects. Bear in mind that the value of public investments in Morocco is rising to $21.6 bn in 2015. On Safety and Security, UK expertise can help Morocco to meet international standards. Morocco’s ambitious energy strategy, both renewables and hydrocarbon, is another priority that plays to the UK’s competitive advantage and where we are seeing increasing interest from British SMEs and multinationals alike. The Renewables programme in the MENA region has a $9 billion investment in solar alone to 2020. Let me finally mention supply chain opportunities in Advanced Engineering, especially aerospace. Bombardier, in Casablanca, is transferring manufacturing skills and logistics expertise to Morocco, where they manufacture part of the Learjet, while safeguarding design and manufacturing jobs back in their Belfast European HQ.

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I’d strongly advise British companies to do a bit of prior research. As I mentioned earlier, we can help with that. The UK renewables company Windhoist is one example of a company that we helped to win a large contract. Sure, there are challenges such as bureaucracy, slow decision-making – and, I’m afraid, corruption. But I’ve been struck by the government’s determination to tackle all these areas, and in an

CLIVE ALDERTON Mr Clive Alderton has been Ambassador to Morocco since December 2012. His previous appointment was as a Member of The Royal Household from 2006 until 2012, where he served as Deputy Private Secretary to Their Royal Highnesses The Prince of Wales and The Duchess of Cornwall 2006 - 2008. Mr Alderton was promoted to the rank of Private Secretary to Their Royal Highnesses 20092012. Mr Alderton joined the FCO in 1986 and has served overseas in Poland, Belgium (European Union), Singapore and France.

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How is UKTI in Morocco helping to facilitate the entry of British companies into the marketplace?

Clive Alderton

open way. It’s this transparency that has improved Morocco’s scores each year in the World Bank “Doing Business Report”. Finding the right partner or agent is also important. At government level, we are working closely together on economic reform, including Public Private Partnerships. The UK PPP market is now more than 20 years old and the most mature in the world. Morocco completely gets the benefits of financing major projects through PPP, so that door is also wide open for UK companies. Morocco’s position as close to Europe is often put forward as one of the reasons it is an attractive nation with which to develop trade, but do you think it could be equally used as a gateway to Africa?

Economists are famous for disagreeing with each other, but one thing they all seem to accept is that the 21st Century will be “The Century of Africa”. The UK and Morocco, working together, can play an important role in spurring this growth further. A simple map shows Morocco’s geographic advantages: a logical springboard between European and African markets. Here again, the UK is in a position of natural strength. We have strong links to Anglophone Africa through the Commonwealth; Morocco has strong relationships in Francophone Africa.The two combine to deliver powerful partnership opportunities.

‘UK has shown real international leadership and innovation in the push to sustainability. This fits neatly with the Moroccan government’s long-term strategic planning.’

You mentioned the deal the London Stock Exchange and Casablanca Stock Exchange signed in June 2014 to support the development of Moroccan capital markets. With the development of the Casablanca Finance City, do you think Casablanca has the potential to be a major financial hub for Africa and even compete with Dubai as a major financial centre?

Yes, over time. It’s important for the UK to seize this opportunity and get in “on the ground floor”. The Casablanca Stock Exchange, one of the largest in Africa, aspires to be the regional hub for raising finance. In June 2014 the London Stock Exchange and Casablanca Stock Exchange signed a landmark strategic and technology partnership in the presence of His Majesty King Mohammed VI. The partnership had support from across government including the Embassy and UKTI. The partnership will link London’s expertise in financial markets and unique global reach with the dynamism and potential of

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the Moroccan financial services sector, helping Moroccan businesses of all sizes raise the finance they need to grow and create jobs. Working closely together our two Stock Exchanges will also support the development of Moroccan capital markets as the natural financial hub for North West Africa, and beyond. In 2012, Morocco launched its regional financial services centre in Casablanca Finance City - CFC – which last year leapt 11 places in the Global Financial Centres index. It is increasingly seen as an important financial and business gateway to Sub-Saharan Africa. I think CFC’s strategic location and African focus set it apart from other financial centres in the MENA region. There is huge potential for the UK and Morocco to work more closely as strategic partners in banking, insurance, Participative or Islamic Finance, PPP, ETQ, capital markets and in Africa via the CFC project and PPP partnerships. Is Morocco’s infrastructure developing at a rate to accommodate these trade increases? Are there opportunities for British companies in this sector?

Yes. Major urban and rural infrastructure projects, new motorways, road and rail construction, urban and national transport development programmes, port and airport upgrading, building of new towns and industrial areas all offer potential for UK expertise. Morocco’s growth is accompanied by an overarching transport and infrastructure strategy and high level of dynamism that we can see in some large scale projects, including the high speed rail link, the tramway extension in major cities and very exciting developments in the Ports sector. Most of the transport sector remains in public hands, though in the Ports sector all ports (with the exception of the massive Tanger Med) are managed by the national Ports agency, ANP, which operates as a public commercial entity. A UK company recently chose Morocco to launch a successful annual international conference on Port Finance, responding directly to the priority Morocco attaches to developing the strategic shipping opportunities offered by its long Mediterranean and Atlantic coastlines. Public investments in Morocco are set to rise to $21.6bn (or 19.3% of GDP) in 2015. That includes $2.7bn for the massive national phosphate company OCP. The CEO, Mr Mustapha Terrab, is the joint Chairman – along with Lord Sharman – of the Moroccan British Business Leaders’ Forum. Morocco has the world’s largest phosphates reserves, and OCP has its own public tender portal which is updated daily. Looking more widely, $573m is budgeted for a High Speed Train project this year; $1.6bn for the solar energy plan; $802m for the national utilities company; and $4.6 billion for the massive Jorf Lasfar LNG project – that one is a potential High Value Opportunity for Morocco. I’d urge companies interested in tapping into these opportunities to keep an eye on Business Opportunities published on the www.gov.uk portal, or contact my UKTI team direct.

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The Zenata eco-city project is a huge sustainable project in the region. Would U.K companies, specifically those focused on engineering, have to be aware of the push towards sustainability in the region when moving into the country?

UK has shown real international leadership and innovation in the push to sustainability. This fits neatly with the Moroccan government’s long-term strategic planning. You’re right to highlight the Zenata Eco-City which is being developed near Casablanca. That is an important and ambitious long-term project, and one that UKTI is hoping to develop as a High Value Opportunity. The Zenata project is already underway, and the aim is for it to be to be one of the world’s first eco-cities. As a services-based city it will be guided by the core principle of sustainable development. A healthcare tender has already been launched, and we anticipate more tender opportunities in education and retail development as well as infrastructure and waste management.

British Ambassador Clive Alderton and Mr Mohammad Raihani, President of the British Chamber of Commerce in Morocco, signing the new partnership between UKTI and the British Chamber of Commerce in Morocco

Clive Alderton

the UK from emerging markets is growing rapidly. In terms of FDI from Morocco to the UK, there are several projects: a trend we are growing over time as Morocco continues its economic ascendancy. Morocco itself continues to register solid Foreign Direct Investment growth, attracting an impressive $3.4 billion last year with the manufacturing sector to the fore. According to UNCTAD, Morocco’s outward FDI stock has increased almost ten-fold over the past 20 years. We in the UK of course have one of the most business-friendly environments in the word, and I see great potential for more investment flows in both directions in future – from the UK to Morocco and from Morocco to the UK. There’s a natural synergy there. Moroccan companies can contact my UKTI team here in Morocco or the UKTI Investment Services Team via the www.gov.uk portal for information about setting up in the UK including the help that is available.

And how about inward investment? Are Moroccan companies looking to invest in the UK and if so how does UKTI assist them?

I’m proud to say that the UK remains the number one destination for FDI projects in Europe. Investment to

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Further information www.gov.uk

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Lord Sharman

New horizons

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As he bids farewell as the Prime Ministerâ&#x20AC;&#x2122;s Trade Envoy to Morocco, Lord Sharman explains why the country holds the key to unlocking the potential of Francophone Africa

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Lord Sharman

LORD SHARMAN Lord Sharman joined KPMG in 1966 and worked in a number of overseas offices. He was responsible for KPMG Europe and Scandinavia from 1970 to 1980, before being appointed a partner in the London branch in 1981 and becoming chairman of Aviva Group in 2006. On 2 August 1999 he was created a Life Peer as Baron Sharman of Redlynch in the County of Wiltshire and entered the House of Lords as a Liberal Democrat peer. He retired on 30 April 2015. Since November 2012, he has been the Prime Ministerial Trade Envoy to Morocco.

n November 2012 Lord Colin Sharman, the former chairman of the Aviva Group, was one of eight Trade Envoys appointed by David Cameron. The programme aims to promote trade with and raise the profile of emerging markets.

What work have you being doing to help trade in the region?

I helped point the way for companies to get them to the right place, finding their way through the maze of business in Morocco. I have been very lucky in that I worked with Francine Torbutt at UKTI, who is excellent. The ambassador was also a great help as he is very focused on business. I also facilitated trade delegations, for example a trade mission on alternative energy which we completed in November. What sectors were you focusing on when working in Morocco?

Fes, Morocco

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I selected three sectors - energy, education and financial services. I chose energy because Morocco has not yet discovered any hydrocarbons and so they concentrate a lot on alternative energy. A very large project was recently completed alongside the British company Windhoist to build the largest onshore wind farm in Africa, and the country has big plans for solar and wave energy forms as well. The second area was education because there is a big demand for the English language in Morocco, principally because they see it as the international angle to business. We have been looking at establishing British-style secondary and business schools in the country. There are huge opportunities for large British public schools that are looking to expand overseas. The British Council has also been very successful developing sponsorships between Moroccan and British universities. This relationship has changed, as it used to be very humanitiesfocused but now it is much more about science and technology. The final sector was financial services, which is key because of the development of Casablanca Finance City. The Moroccans want it to be the optimum place for companies to have their

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Lord Sharman

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Lord Sharman

headquarters in Francophone Africa. They chose the old airport area to construct the city and have done an excellent job of developing the infrastructure so far. Now it is about getting companies to move in, and the very significant incentives have already encouraged a number of companies to do so.

Port of Casablanca, Morocco

ties they see Britainâ&#x20AC;&#x2122;s membership in the EU as an important aspect of the relationship. One of the main differences in business culture is that you have to have patience when working in Morocco. Things take time and do not move at the same speed as we are used to in Britain.

Is there much UK activity in the region?

What potential do you see for the nation?

British businesses have developed into Anglophone Africa extremely well, but they have not paid as much attention to Francophone Africa. I believe Africa is going to be the next engine for economic growth in the world, so why should British companies only utilise half its potential? There are already some British companies working very successfully in Francophone Africa. Barfoot has a huge agricultural business in Senegal, where they grow sweetcorn and ship it back to the UK. A third of their produce also goes into the local market. Agriculture is very important to the Moroccans and it is largely about selling fruit and vegetables into the UK.

I see it as the gateway to Francophone Africa, and potentially the whole of the continent. The stock exchange is the second largest in Africa after Johannesburg. They have a very well developed financial infrastructure and their big banks have penetrated much of West Africa. The King has been very assiduous in developing relationships between Morocco and the whole of West Africa. There is also the eco-city, which is a very ambitious project and holds lots of opportunities. Morocco itself is only three hours from the UK and has a great climate. If you are looking to set up headquarters in Africa it is an obvious and easy place to do so.

What is Morocco like for British companies looking to work there?

Could you sum up any sort of legacy you felt you have achieved?

It is pretty stable and I always feel very safe when I am there. They are very keen to work with the UK and the relationship with Britain goes back 800 years to when King John sent emissaries just before he signed Magna Carta. Beyond the historic

When I first got involved in Morocco the immediate reaction from British businesses was that it was solely for the French, but that attitude is not as prevalent now. That is the best legacy that I can leave.

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London Stock Exchange Group

Taking stock Global markets like Morocco place huge value on the experience and expertise of London markets, and recent agreements reflect that, says Nikhil Rathi, Director of International Development for London Stock Exchange Group 30

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London Stock Exchange Group NIKHIL RATHI Nikhil Rathi is Director of International Development and Chief of Staff at London Stock Exchange Group (LSEG). He joined LSEG in May 2014 from the UK Treasury, where he held a number of senior roles over the last 11 years. Until February 2014, he was Director of the Financial Services Group, representing the UK Government’s financial services interests in the EU and internationally. In that role, he served as the UK representative on the EU Financial Services Committee and led a number of legislative negotiations. Prior to that, he was Head of the Financial Stability unit, overseeing a number of the UK’s financial stability interventions during the crisis. He also served as Private Secretary to the UK Prime Minister for three years from 2005 to 2008.

ondon Stock Exchange Group (LSEG) recently signed a cooperation agreement with Morocco to expand the range of services it provides to the Moroccan market. It marks a change of direction for a country that traditionally has leaned towards French speaking countries looking for overseas partners. “LSEG has always been an outward-facing international exchange group that understands the global market, and especially emerging markets that appreciate the strength, international nature and stability of London markets,” says Nikhil Rathi, Director of International Development for LSEG. LSEG employs around 5,000 people and has business interests across the globe. The Group operates a broad range of international equity, bond and derivatives markets, including London Stock Exchange, Borsa Italiana, MTS (Europe’s leading fixed income market) and the pan-European equities platform, Turquoise. Through its markets, the Group offers international businesses and investors unrivalled access to Europe’s capital markets. While across the Atlantic, the Group recently completed the acquisition of the US-based Frank Russell Company investment management and index business.

Strategic planning

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The Jemaa el Fna Square in Marrakesh, Morocco

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Morocco is currently looking to drive economic development and consolidate the country’s position as a regional and financial hub. “The country was initially looking for a technology partner with which to improve its trading systems and turned to LSEG’s MillenniumIT,” explains Nikhil Rathi. “From there, LSEG worked with the Moroccans to develop a deep strategic plan to improve its liquidity, index partnerships, and help with supporting their small companies to find overseas investment.” Under the agreement Maroclear, The Moroccan Central Securities Division (CSD) has signed an assisted registration partnership with LSEG for the allocation of Legal Entity Identifiers (LEIs) for the Moroccan market. LSEG’s CSD, Monte Titoli, will provide its Moroccan counterpart with access

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London Stock Exchange Group

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London Stock Exchange Group

to European securities settlement infrastructure. This will allow Maroclear clients to settle crossborder trades in Europe and give them access to the TARGET2 Securities (T2S) regime when it is introduced in June 2015. A Market Open Ceremony, attended by Moroccan Minister for SMEs, Mr Mamoune Bouhdoud, was held at London Stock Exchange to celebrate the signing of contracts and the extension of agreements between the two financial hubs. “In the long term, we hope that Casablanca will develop a deeper strategic capital market to access international investors. To access markets outside their immediate jurisdiction is something all emerging markets aspire to do,” said Nikhil Rathi. The agreement opens up a broader capital relationship between Morocco and LSEG, and has an internal group of 12-15 people working on the project.

Economic significance The initial partnership agreement was signed last June, and witnessed by King Mohammed VI of Morocco and the UK Prime Minister’s Special Trade Envoy to Morocco, Lord Sharman of Redlynch and the British Ambassador to Morocco, Clive Alderton. “The deal has important strategic political as well as economic significance. It underscores the growing importance of the UK’s bilateral relationship with Morocco based on 800 years of friendship.” says the Ambassador. LSEG would have been competing with global exchange groups in the US and in the past, Morocco

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Bank of England, the Royal Exchange and the Wellington statue in London, the UK

would have chosen French counterparts to work with. These recent changes represent a conscious decision by Morocco for a UK-specific agreement. LSEG has extensive experience of working with overseas markets, and is well qualified in this role. More than 120 companies from Africa with a combined market capitalisation in excess of US$70 billion are listed in London. Seplat Petroleum Development Company (Seplat), the independent oil and gas exploration and production business, recently joined the Main Market and was the first business to simultaneously dual list shares in London and Nigeria. The Group also recently signed an agreement with the Turkish Stock exchange, the latest step in a wide-ranging, long-term goal of transforming Turkish capital markets and attracting more international investors. Nikhil Rathi has worked closely with the team in Morocco and will visit the country again in April for the possible signing of the next phase of the agreement, as well as travelling to Nigeria, India and China. He believes the Group stands apart from other exchange groups, explaining, “Because of its culture and tradition of looking for long term relationships, LSEG It is willing to build and invest in partnerships that are mutually beneficial and not aggressive, which is attractive to many emerging economies.”

Further information www.lseg.com

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Public-Private Partnerships Unbundled John Davie of Altra Capital has been devising PPP strategies for more than 20 years. In this invaluable handbook he demystifies the process and provides expert guidance at all stages.

The PPP Book is considered to be one of the definitive guides to the multifaceted and integrated ecosystem required to deliver successful PPP projects.

www.pppbook.co.uk

CBD Consultancy

Structuring for success in the UAE CBD Consultancy works with clients seeking to expand their business in the UAE, by helping identify the most appropriate route to market and untangling local laws and restrictions placed on foreign investors, says Helen Barrett, Partner at CBD Consultancy

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here are various ways of accessing the exciting opportunities presented by the UAE. Some require a corporate presence in the UAE, while others do not. The right option for your business will depend on several factors, including your longer term objectives, budget, the nature of the business, and the location of your target customers. Adopting the right corporate structure for your UAE business will be a crucial element of its success.

Why the UAE A presence on the ground in the UAE can assist significantly in positioning your business in the market, and also gives you direct control over its operations and growth strategy. Itâ&#x20AC;&#x2122;s also possible to do business in the UAE without establishing a corporate presence, and this may be appropriate while you assess the opportunities. However for those businesses already convinced of the

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| Corporate structures Although the UAE Companies Law prescribes several possible corporate structures by which a foreign investor can operate a business in the UAE, the most common structures adopted by foreign investors tend to be a Federal branch of foreign company, known as a Branch, and a UAE-registered company, more commonly referred to as a LLC. If a company wishes to provide professional or consultancy services, it may establish a Branch to carry out these activities. To do this, a UAE national must be appointed as a local service agent – also known as a sponsor – to provide local services such as assistance with licensing and registration of the Branch, and obtaining residency visas for its employees. The duties and remuneration of the local service agent will be set out in a local services agreement that will be registered with the Ministry of Economy (MOE). A local service agent has no authority or responsibility, financial or otherwise, in respect of the Branch and the foreign parent retains full ownership and control.

Setting up a LLC If a foreign investor wishes to import and trade in goods, it must obtain a trade licence and incorporate a LLC which is a separate legal entity of which at least 51 percent of the shares must be owned by an Emirati, or wholly owned Emirati entity. This local participation requirement is an obvious concern for many businesses considering operations in the UAE, particularly where all the investment will be made by the foreign shareholder, and the foreign shareholder requires full control. The issue of local participation requirement has

HELEN BARRETT Helen is a UK qualified solicitor and has worked in Dubai as a lawyer for over 17 years, advising international companies and entrepreneurs on all aspects of doing business in the UAE and surrounding regions. Helen established CBD Consultancy in 2013 to provide corporate structuring and company formation advisory services to international companies looking to expand or restructure their businesses in the UAE. CBD works closely with foreign investors to ensure that they enter the UAE market on stable footing with the necessary controls which they seek to make their businesses a success. Helen’s solid legal background and understanding of the commercial realities of doing business in this region has proven beneficial to both CBD’s clients and professional advisors.

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been the subject of much speculation over the years, with suggestions that the required minimum shareholding could be reduced or even removed in some sectors, as with other Gulf Cooperation Council countries. However it is an important method of providing Emiratis with a means of participating in the country’s success, and no change in approach is expected in the near future. Despite the limitations imposed upon foreign shareholders, many international businesses have established LLCs, and are enjoying the opportunities presented by the UAE and wider region, having structured the relationship with the local shareholder in such a way as to secure control, and the right to profits for the foreign shareholder.

Corporate Sponsor Many businesses will enter into an arrangement with a Corporate Sponsor such as CBD Consultancy. The foreign shareholder, Corporate Sponsor and LLC enter into a series of side agreements which are often referred to locally as LLC side agreements. The LLC side agreements collectively seek to place control of the LLC in the hands of the foreign shareholder and protect the foreign shareholder and the LLC from any unintended interference from the local shareholder, as well as setting out the commercial arrangements between the parties. Typically, the LLC side agreements will cover management, profit distribution, ownership of capital assets, financing and pre-emption rights.

Business evolution Some businesses may not be ready for a permanent presence, and so our approach is always to make sure we understand where your business is in its evolution. For those who don’t require a permanent presence, an agency or distribution relationship might be appropriate. Registered and unregistered arrangements are available in the UAE offering different types of protection within UAE law, and CBD Consultancy can advise clients on which would best suit their interests. There is no doubt that the UAE offers significant opportunities for business across a wide range of sectors, and in a wide range of markets in the region. However as with any growth, expansion in the region should be carefully planned, budgeted for and executed. Part of that execution will involve working with the right partners throughout each phase of that growth. With collective experience in excess of 25 years of operating in the Gulf, and with a team of experienced professionals from both commercial and legal backgrounds, CBD Consultancy is well placed to guide and support your business during this exciting time.

Further information For more information about CBD Consultancy’s Corporate Sponsorship and Company Formation Services please visit our website at www.cbddubai.com or contact Helen Barrett by e-mail at helenbarrett@cbddubai.com.

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opportunities, CBD Consultancy works with clients seeking to establish a presence on the ground by assisting in identifying the most appropriate route to market.

CBD Consultancy

Sharia Finance

Sharia Finance With the Muslim population economy growing rapidly, businesses cannot afford to ignore Islamic finance. EYâ&#x20AC;&#x2122;s Islamic Finance Lead Partner Ashar Nazim explains what it is and where the key opportunities lie

slamic Banking is at the heart of global trade and capital flows. With 10 of the worldâ&#x20AC;&#x2122;s 25 fastest growing markets in sizeable Muslim-population economies, it comes as no surprise that the likes of Barclays, HSBC, Standard Chartered and leading consumer brands and infrastructure companies embrace Islamic financial solutions as part of their business offering. There is hardly a global professional services firm that does not have specialist Islamic finance teams. Islamic finance has helped transform Londonâ&#x20AC;&#x2122;s skyline by financing, in part or whole developments such as The Shard, Chelsea Barracks, Harrods and the Olympic Village. Ignoring the Sharia sensitive customers can be an expensive mistake for businesses. On the contrary, a more inclusive approach could open new sources of capital and growth for businesses. The global expenditure of Muslim consumers on food and lifestyles sectors is estimated in excess of $1.8 trillion in 2013 and could easily surpass $2.5 trillion

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over the next five years. Similarly, Islamic financial assets have grown steadily at approximately 20 per cent annually over the last decade, now in excess of $1.7 trillion globally.

What is Islamic Finance? Does it differ from the traditional system?

Perhaps the biggest myth about Islamic (or Sharia compliant or participation) finance is that it is only relevant for Muslims, but the reality is quite different. Islamic finance techniques have been endorsed across key international financial markets as a viable alternative and a system more akin to ethical or socially responsible finance. In Islamic finance however, money is seen as a medium of exchange and not a commodity that generates incremental returns. Sharia compliant investments are structured on the exchange of ownership in tangible assets or services, with money acting simply as the payment mechanism to affect the transfer.

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| Islamic economic principles are based on only three factors of production – land, labour and entrepreneurship. Capital is clubbed together with entrepreneurship and not considered as a standalone, fourth factor as in the traditional economic theory. Hence the concept of risk and profit sharing. At the same time, the participation system fully endorses the market forces of supply and demand, allows Government to intervene in business affairs where necessary, and recognises the right to private ownership and profit motives while prohibiting interest.

Key drivers of Islamic Banking Key drivers of Islamic finance are as follows: l Demographics. There are an estimated 1.7 billion Muslims who are growing at twice the rate of the global population. Many of the key markets such as Turkey, Malaysia, Indonesia, United Arab Emirates and Qatar have a high proportion of an upwardly mobile population. For example, Qatar ranks highest in the world for per capita income today, whereas Turkey will have more than 11 million household with per capita income of $30 thousand or more by 2030 (same level as Canada today). l Economic centre of gravity. The global trade power is shifting eastwards – a group of 25 high potential markets will constitute 50% of the world GDP, 38% of global consumer spending and 55% of fixed capital investment, by 2020. Their share of global contribution to GDP has doubled over the last decade and continues to outgrow development markets. Ten of these 25 high potential markets have a sizeable Muslim population. l Inclusive economic growth. Many of the emerging markets with growing Muslim populations are under-banked and the primary reason is that religion influences their activities including business, banking

KEY OPPORTUNITIES IN ISLAMIC ECONOMY Within the financial services industry, the key opportunities include: l Banking – retail, corporate, SME and wealth management solutions l Project finance – Islamic finance industry is flushed with liquidity primarily from the capital surplus Gulf Arab markets and Malaysia. Many utility companies and infrastructure projects in Europe and North America are wholly or partly financed through Sharia compliant structures l Private equity and venture capital – there is higher appetite for risk sharing and equity finance l Takaful – or Islamic insurance to offer risk and saving products to corporate and retail customers l Asset management – across asset classes including equities, money market, commodities etc. l Retirement and succession planning solutions – a growing field with tremendous opportunities

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through Sharia compliant pension programs and endowments (or awqaf) In other sectors, the sizeable opportunities are: l Halal food – there are many uncoordinated supplies in this value chain whether in the agricultural sector or retail and wholesale operation l Clothing and fashion – developing global brands with Islamic concepts l Healthcare – halal-certified pharmaceutical and cosmetics l Travel – solutions that incorporate Islamic values such as airlines with non-alcoholic beverages and halal food, and hotels with appropriate facilities (segregated swimming pool, respect for privacy) l Media and recreation – this sector is estimated at $150 billion but without any global media brands

Sharia Finance

ASHAR NAZIM Ashar Nazim leads EY’s global Islamic Banking Excellence Centre. He has 18 years’ experience of working within the Islamic finance industry in the profession, and in regulatory capacity with the Central Bank of Bahrain. He has advised a number of central banks on regulatory framework, worked with multilateral institutions on industry infrastructure initiatives, and led the setting up of several greenfield Islamic windows and banks. In addition he has advised on conversion of conventional banks to Islamic and assisted financial institutions on transforming operational performance.

and trade. So by offering Sharia compliant offering, businesses and banks are able to tap into a new customer pool, without compromising on their commercial and business norms.

Why and why not? The main advantages of Islamic finance compared to traditional systems are: l Stronger linkages between financial and real

economy. All transactions have to be asset backed and speculative activities (short selling, derivatives, etc.) are prohibited. This helps prevent ‘bubbles’ in the economy. l A fresh approach to governance and transparency.

Sharia governance framework at banks comprises of a special board committees and compliance offers responsible for ensuring full adherence to stated policies and guidelines, with explicit communication to consumers on their rights and responsibilities amongst others. l Redefining rights and responsibilities of savers and borrowers. The underlying covenants of sale, leasing, debt and service contracts are different to conventional banks and encourage profit and risk sharing amongst stakeholders more than in conventional systems. But there are also limitations that at times can impede an institution’s ability to fully serve its customers, for example: l Conventional regulatory framework. Conventional regulations for banking institutions could be prohibitive for the Islamic banking model. This is especially true with regards to Basel guidelines on regulatory capital. On a positive note however, many jurisdictions including international financial centres like UK and Hong Kong are adapting their regulatory framework to allow a level playing field for institutions offering Islamic financial solutions. l Product innovation. Islamic finance is a relatively nascent industry and there is still significant innovation required to meet different customers’ requirements.

Further information http://emergingmarkets.ey.com/global-islamicbanking-centre/

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Hyder Consulting

The next steps on the road to transport infrastructure The UAE is investing huge sums of money into developing its infrastructure, but masterplans must be fine-tuned to ensure the balance of sustainable development and long-lasting success, says Sameer Daoud, UAE Managing Director at ARCADIS Middle East 38

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Hyder Consulting

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SAMEER DAOUD Sameer is a civil engineer with extensive experience both internationally and in the Middle East in leading, managing and delivering major highways and interchanges and major multidisciplinary integrated engineering projects, including commercial, industrial, city centres and data.

infrastructure, housing, education and healthcare. Abu Dhabi, for example, has its Vision 2030 concept that “aims to establish a planning culture and introduce strong guidelines for sustainable development”.

Transport masterplan

ccording to the UAE yearbook 2013, during its 2013-17 development plan, Abu Dhabi is to invest nearly Dh30 billion (US$8 billion), which will spur sustainable growth, create about 5,000 jobs and expand the non-hydrocarbon sector. The emirate’s population is also expected to grow to about 3 million in 2030, having reached just over 2.5 million in 2013. This remarkable government investment is very similar in Dubai, at US$1 billion for 2015 alone. As in all seven Emirates, behind this spending lie swathes of planning documents related to transport,

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Naturally transport masterplans and other planning documents must be validated and refined over time to cater for the various dynamics of political, demographic, economic and cultural shifts. However transport plans in particular can be fine-tuned to ensure that infrastructure and transport can encourage the aims of sustainable development. Time and again, this concept of sustainable development is highlighted in most other UAE strategies as well as Abu Dhabi, including the UAE 2021 vision, Plan Al Ain 2030, Dubai 2020 vision, Dubai Strategic Plan 2021, Ras Al Khaimah Development Strategy and Fujairah 2040. The advanced transport and infrastructure networks in Dubai and Abu Dhabi are the culmination of great efforts put into the masterplanning of these cities and their respective sub-divisions. The document ‘Abu Dhabi Surface Transport Master Plan’ has succeeded in creating more effective traffic management, utilising transport technology, increasing public transport and ultimately laying the groundwork for a modern and efficient transport infrastructure. To some extent the UAE is now at a crossroads, and one of the key questions is what should be the next step in their approach to transport planning.

Existing network One option is that to achieve the aims of sustainable development, planners should capitalise on the existing network by managing land use growth, validating and rationalising proposed developments,

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Hyder Consulting

| revitalising city centres and integrating transport systems to support their urban fabric. There are a number of reasons for the management of land use growth and rationalising or optimising transport networks, whether existing or planned. The first is the danger of an ever-increasing urban sprawl. The more highways and extensions of various transport lines there are, the more the city expands horizontally rather than vertically. Although by managing land use growth, we may be restricting the potential of growth. The big urban centres of the east coast of the United States or the Tokyo prefecture are famous cases of various smaller urban centres being swallowed up by the unstoppable march of the city. It could certainly be argued that for the UAE to stay ahead of the competition, it needs to allow for organic growth of both a physical and commercial nature, in line with whatever demographic necessities occur. However the numerous negative effects of urban sprawl range from expensive public transport, difficulty maximising the city’s usage, the segregation of commercial and residential areas, higher energy uses and an over-reliance on cars, with the resultant higher pollution levels leading to an increase in ill health. Increasing urban sprawl also leads to areas of urban decay and the creation of run down bands around or within the city.

Modern smart cities

systems, the door is not closed to growth. Instead modern smart cities are built which are a pleasure to live in and are integrated for the benefit of society, the environment and commerce. Indeed, for the UAE to remain a desirable place to live, work and play, it should be at the rudder of progress, instead of being the powerless victim of the unplanned march of industrialisation. The path forwards is to look towards the key pillars of sustainability: environmental, social, economic, and in the Emirati definition, cultural. It is only by keeping these elements in balance within the planning of cities that the UAE can become one of the best countries in the world by 2021. Certainly, the UAE is on the cusp of a new phase in the development of its cities. Having overseen the swift creation of modern and efficient urban areas over the last 20-40 years, the country’s leaders now have a new focus on sustainable development. Choices relating to masterplanning of transport infrastructure will affect generations of UAE residents to come. Fortunately every document on planning approved by the country’s rulers appears to recognise the weight of the choices they are faced with. The economy is on the move again and while learning lessons from the past, we should look for sustainable developments. Let’s focus on managing growth and capitalise on existing networks.

Further information www.hyderconsulting.com

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By capitalising on an existing transport network, by creative revitalisation of the urban areas in response to market demands, and by integrating transport

Hyder Consulting

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Atkins Infrastructure

| Building global expertise The Al Maktoum airport expansion in Dubai is a huge project with complex infrastructure, but the UK companies involved with the project are rising to the challenge says Roger Cruickshank, Transport Strategist with Atkins

he new Al Maktoum airport in Dubai is set to be the largest international aviation hub in the world, creating huge opportunities for the UAE as well as the contractors and designers working on the project. “Dubai has been very successful over the last 20 years in creating a hub for Emirates Airline to transfer passengers between various continents, and as a result 70 percent of passengers travelling on Emirates transfer to another flight without going into Dubai itself,” says Roger Cruickshank, Transport Strategist with Atkins. This means there are a huge number of passengers traveling through the airport between Europe and Australasia, North America and Asia, and Africa, Europe and Asia. Dubai has recently overtaken Heathrow Airport as the busiest international hub in the world. It currently handles around 70 million passengers per year – similar to Heathrow. The new Al Maktoum airport, when ready, will handle 120 million when the first phase of expansion is completed.

Spending power By around 2022, Dubai Airports (Al Maktoum’s operator) plans to expand its airline network to cater for this growth. Currently there is a small airport with one runway, which will expand to at least two more runways and eventually up to five. Cruickshank believes the figure of 120 million passengers could at least double by the time phase two of the expansion is completed.

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“People find themselves with around three hours to spend at the airport waiting for flights, time which can be used for duty free shopping. That volume of spending is equal to 28 percent of Dubai’s GDP, a figure which could increase to 35 percent when the airport reaches full capacity,” he says.

Logistical challenges “In terms of infrastructure, access points would be required not just for the airport itself but for workers and all the support facilities, with a new city planned for stewards and pilots and other facilities for back of house workers. There are also plans for a series of roads around the airport, and an extension to the Dubai Metro Red Line. There is even the possibility of a dedicated airport rail service like the Gatwick Express.” Clearly there are huge logistical challenges involved in this scale of increase in passenger numbers and cargo levels and Atkins is one of the British companies, along with Arup that have been working closely with Dubai airport on its landside strategy and road systems. “We conduct strategic testing relating to the numbers of roads and rail lines needed, which can change depending on how many people use which

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Atkins Infrastructure

ROGER CRUICKSHANK Roger Cruickshank is Director, Atkins Middle East & India, with over 24 years experience in transport planning, working on a number of major strategic and masterplan schemes in the UK, South East Asia and the Middle East. Resident in the Middle East for the past 8 years, Roger has been providing strategic advice with respect to surface access issues associated with the expansion of both Abu Dhabi and Dubai Airports.

can provide professional design consultancy and collaborate with each other. Atkins, Motts, vArup, Hyder Consulting and other UK firms are banding together as a collective with world class expertise on engineering projects. We have worked together previously on airports in Hong Kong, Beijing, Istanbul, and Heathrow, but as UK companies we honed our skills here, working on projects including Manchester and Gatwick airports, and have now exported these skills to the rest of the world with the help of the UKTI.”

High demand for skills

transport transfer options. This results in a lot of activity with a huge level of provision. We are looking at the transport needs of hundreds of thousands of passengers per day, involving huge car parks, taxi services, bus services and associated facilities, including employee security screening,” says Cruickshank. “In addition, the new airport is next to the Jebel Ali Port currently handling 15 million containers and set to expand, which will create further opportunity. Atkins is poised to provide advice on transportation and expansion with the possibility of a train to the port and the provision of land to sea transport and road to air.”

Working together Atkins is building on its global expertise on two fronts, says Cruickshank. “The first is to provide strategic support to Dubai as the new airport influences its transport system. The impact on the city is going to be huge: once the airport expansion is completed the transport system will focus on the south of the city where the new airport is situated, affecting how people travel. Atkins is looking at these issues and what Dubai’s travel system will look like going forward. “Secondly with the cooperation of UK Trade & Investment (UKTI) and the local embassy, we have formed an airport working group of consultants and contactors looking at how we can assist with the expansion of the new airport, and how we

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Dubai Metro project

There are other major building projects going on in the Middle East, including football stadiums and housing programmes, which means demand for these skills are high. Cruickshank says, “You might argue that an airport is just a very large railway station, and some of the skills are transferable. In Mecca, the metro has some stations which are as large as stadiums in order to deal with the number of pilgrims. So there are a number of competing elements, which is partly why we have pooled our resources so we can provide the quality of service and labour required.” To meet the challenges of the airport expansion, Atkins will need to take on extra staff. The company has experience of the communication needs associated with such a complex project, having worked on similar projects in Qatar. “We have learned lessons about how systems can be put in place, and we are working with other consultants and designers who may have different opinions, which is why we’re developing packages to make the process as seamless as possible and cut down on the number of interfaces.” The airport is being built in modular way to allow future innovation to influence the airport and the way passengers travel. For example swipe cards may be introduced to cut down on passengers having to carry luggage or duty-free shopping. It’s clear that the Dubai airport expansion is a gateway to future travel, and Cruickshank believes that “seeing such ground-breaking projects on this scale take shape in Dubai over the next few years is both gratifying and hugely exciting.”

Further information www.atkinsglobal.com

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Arena Group

The Middle East has hosted some of the world’s largest sporting events, with well-designed temporary structures vital to their success, says Judith Baker

Setting the stage for iconic events

olf championships, F1 Grand Prix, Beach Soccer along with huge exhibitions and cultural events are now regular sights in the Middle East, attracted by its good location, weather and infrastructure. But efficient use of temporary structures, innovation and a good eye for design are key considerations in this marketplace. Paul Berger, CEO of Arena Middle East and Asia, based in Dubai, says that the company’s expertise in designing world class events and having an in-house team of passionate experts has been instrumental to their success. This knowledge combined with exemplary customer service and attention to detail, whilst still staying true to its core values, have been key factors in consistently delivering some of the Middle East’s most iconic events, both in the world of sport and commerce. “Arena Middle East and Asia has 16 years’ experience in the Gulf region”, says Paul Berger, “The business has built and delivered events in the UAE, Saudi Arabia, Qatar, Oman and Kuwait. Arena Middle East and Asia has offices in Dubai, Abu Dhabi, Saudi Arabia, Singapore and Kuala Lumpur, we have 180 full time staff in the Middle East and Asia. Globally the Arena Group reach extends out to19 branches across 10 different countries, with expertise in providing full overlay design and management solutions or creating bespoke temporary venues for sports and cultural events or just straight forward rental solutions.” The Arena Group works with the world’s most iconic sporting organisations, cultural event organisers, venues and brand owners and provides solutions that maintain clients’ brand consistency and quality and has a proven track record spanning 100 years. The Middle East consists of four main divisions,” says Paul Berger “With divisions specialising in; Structures, Furniture rental, Interiors which covers complete design and fit out, and our Air conditioning division.” Dubai is the Middle East hub where it has a 90,000 square foot premises to house all the kit required for the events, plus a 20,000 square foot facility in Saudi Arabia. This means the company can offer a one-stop shop with

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HSBC Abu Dhabi Golf championships

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| all equipment and materials needed for an event sourced from one location. Projects delivered in the Middle East have included the FIFA Beach Soccer in Qatar in 2013 and 2015 and in Dubai in 2013 and 2014. They have built the HSBC Abu Dhabi Golf Championships for the last six years, Abu Dhabi F1 Grand Prix for the last five years and on the exhibition front the company has been involved in building temporary venues for the Dubai International Boat Show, Al Ain Air Show and the ADIPEC Oil and Gas show, which has become one of the most important and influential networking platforms for the Oil and Gas Industry in the Middle East. Paul Berger says health and safety is one of the challenges facing companies in their business in the Middle East. “There are many tent companies in the Middle East,” he says, “but there is a market for everyone. We focus on big sports, cultural and iconic events as well as servicing clients that have worked with us for many years in the corporate market.

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Arena Group

Because events all involve the public and are built in public places, health and safety is always a priority. Some local companies don’t always follow standards and although the Government is picking up on that, there is still a big divide in the Industry. Companies in this sector also need to be well organised in terms of logistics, as importing and shipping equipment can be challenging and with a multi-cultural workforce the acquirement of visas is not always straightforward. Active in the region since 1999, Arena Middle East has16 years of experience and was the first and the oldest company of its kind, that combined temporary structures with interiors under one roof. Looking ahead, they have their sights on Dubai Expo in 2020, the World Cup in Qatar in 2022 and the Winter Olympics in Korea in 2018.

Further information www.arenagroup.com

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Al Maktoum International Airport, Dubai

The route to success

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Al Maktoum International Airport, Dubai

The expansion of Al Maktoum International Airport in Dubai represents one of the most important developments in the Middle East today, say Shakir Khaja, UKTI Airport Specialist, and Rashid Khawaja, UKTI Trade & Investment Advisor, British Embassy Dubai Al Maktoum International Airport opened in 2010. Currently it is primarily a cargo airport with some local regional carriers making use of the facility as it exists today. The site for the new Al Maktoum airport lies within Dubai World Central, a planned aerotropolis in a free trade zone and part of the Dubai governmentâ&#x20AC;&#x2122;s ongoing planning and investment in the diversification and sustainable growth of its economy. Strategically located on 140 square kilometres of land in the southern part of Dubai near Jebel Ali Port, the aerotropolis capitalises on and strengthens Dubaiâ&#x20AC;&#x2122;s position as an international trade hub. The airport will be the centre of this vast new city that will comprise not only aviation-related enterprise s such as logistics and cargo centres and a free trade zone, but also residential, exhibition and leisure-related businesses including the site of the Dubai Air Show. The site is strategically located. In addition there will be an extensive new rail network, connecting to the Dubai Metro network that will be extended for EXPO 2020. The Purple line will act as an express line for the airport. Thus access to the site will be integrated by sea, air and land.

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Al Maktoum International Airport, Dubai

l Maktoum International Airport in Dubai offers two major opportunities for British companies. Not only is there the potential to shape the development of what will be the largest airport in the world, but also the opportunity to work on the new flydubai terminal, as the Emirates airline moves its operations from Dubai International to Al Maktoum. Underpinning this is the expression of interest letter from UK Export Finance (UKEF), the UK Government’s export credit department, to Dubai Aviation Engineering Projects (DAEP), for a potential US$2 billion loan. This creates an environment for British companies to win business, as UK Trade & Investment (UKTI) and UKEF work together with the funding and a list of companies to invest in. The UKEF letter of interest was issued in June 2014 when our engagement with Dubai Aviation Engineering Projects (DAEP) was nearing a year. It has continued since then; in fact, the level has increased substantially. We are now nearing completion of 18 months of our intense and regular engagement with DAEP and indeed, other key stakeholders, for example Dubai Airports, Emirates and Dnata.

The background Eighteen months ago, a team was put together consisting of Marcus Archer, UKTI and embassy staff. We had a series of meetings to scope out what the scale of this airport is going to be, what the procurements packages would look like, and what this will all mean for UK companies. We must give a huge amount of credit to Ed Hobart, our current HM Consul General in Dubai, for his diplomatic skills in opening doors. This has provided instant access to the buyers with sign-off capability to get further intelligence on the project. We are now at a level where we are comfortable taking business opportunities to UK companies through our industry trade bodies, British Aviation Group (BAG) and British Airport Services and Equipment Association (BASEA). The response was so phenomenal that we were asked by Suzanne Al Anani, Dubai CEO of DAEP, to bring people to Dubai to meet her. We took 75 organisations to the existing Dubai airport, where they each gave a presentation to the client in the Royal Hangar. It’s now a year since UKEF, and in particular Ali Sherwani, Deputy Head of International Business Development, came on board. The intelligence that we gathered and the confidence he gained at the time showed that the numbers – US$30 billion of expenditure – stacked up. We put forward a pipeline as to what could be accessible to UK companies, which met the early criteria for UKEF and led to an initial letter to DAEP for US$2 billion. We are still in the early stages, but we are negotiating for major UK engineering consultancies to look at the scheme and the detailed design of the airport now. This work alone could be worth around £1 billion to the UK for all phases of design.

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Phase 1: Managing the risk Maintaining contacts with British companies based in the UK and the region is fundamental to our progress in any project. It is all based around the appetite of our companies and their capacity to deliver on multi-billion pound programmes, such as Al Maktoum International Airport (AMIA). We remain engaged with UK plc across all levels, right from our prime contractors and design consultants to small supply chain companies. For this, we have set up an Airports Working Group (AWG), which is further split into prime contractors, design consultants and supply chain companies. All UK registered businesses that are keen to become part of the AMIA project are welcome to join the AWG, free of charge. The current membership stands at 80 plus companies and is growing. There are five British organisations involved in the first phase of AMIA, predominately led by Atkins and Mott Macdonald, with Arup, Hyder Consulting and Halcrow as supporting partners. Dar Al-Handasah

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Al Maktoum International Airport, Dubai SHAKIR KHAJA Shakir is an Aviation Specialist with 12 years’ experience in the sector. He has delivered projects on a national and international scale in the UK, Europe, Middle East, Asia and South America with large-scale airport capital expenditure expansions totalling around £20 billion. He has programme-managed the delivery of airport master plans and led technical due diligence as part of an airport privatisation/ sale with an enterprise value of around £5 billion.

RASHID KHAWAJA Rashid has been working for UK Trade & Investment for 14 years. As a Senior Trade & Investment Advisor, he is the Country lead for Airports and Aerospace sectors. He is also responsible for monitoring activities in Construction and Advanced Engineering sectors. Prior to joining the UKTI team in 2001, he has 7 years of engineering experience on substation projects with Siemens and Alstom. Rashid is committed to developing business opportunities for British business in the UAE and the wider region.

Consultants is already working on the project, but the intent is for us to work alongside and bring it into a consortium. Once we have paved the way over the next few months for that to happen, we can start supporting DAEP and draw on their funding. We are very fortunate to have some strong UK contractors in Dubai, including Balfour Beatty, Carillion, Laing O’Rourke, Kier and Interserve. This

‘We are still in the early stages, but we are negotiating for major UK engineering consultancies to look at the scheme and the detailed design of the airport now.’

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may give them the appetite that something real is happening and they will start to drop their own risk appetite to something more manageable. The second opportunity is the US$500 million flydubai terminal at the new airport, and DAEP would like British contractors to respond. Flydubai is the Emirates short-haul airline, but in no way a budget carrier. CEO Ghaith Al Ghaith has learned under the pupilage of Sir Tim Clark at Emirates, and planes hold business class passengers, have a high-level fit-out and the same quality of service delivered by Emirates. The intent is to move all flydubai operations to the new airport as there is very little transition of passengers between flydubai and Emirates. Following that, we will be looking at the other major areas including concourses, runways and infrastructure in the airfield. However, there is a limit to how much we can undertake and deliver as a nation. UK contractors’ appetites are affected by the risk of being exposed heavily in one region. In contrast, Chinese and Korean contractors have a

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Al Maktoum International Airport, Dubai

| much bigger capability and capacity to be able to build and deliver. As we see a rise in the value of pound sterling opportunities this year, we’ll see a dip again for a short period before construction picks up. There will come a point where construction will quieten down for us, but opportunities in equipment, tugs for aircraft, ground equipment, ground services, seating and security will start opening up. Construction opportunities will pick up again nearer 2020 when we will be looking heavily at equipment.

Al Maktoum International Airport, Dubai

‘Based on our regular engagement with the client, UKTI UAE is better placed to advise UK companies on project timelines and DAEP’s procurement strategy.’

How UKTI can help The vital components for a successful bid include understanding your client, early engagement with project stakeholders, support from UKEF and working in close partnership with the UKTI team in the region. Some organisations have already won work at Dubai airport and also at Abu Dhabi, but there are also a large number of companies that will feature in a year or two’s time. It is our duty to keep them posted through regular sessions, seminars and our Dubai-based airports working group which provides the latest updates and intelligence. A number of SMEs and money services businesses (MSBs) are already engaged, but depending on the goods or services they provide, our recommendation is stay with us, or talk to the larger contractors. If they are specialists they should stay close to UKTI. Based on our regular engagement with the client, UKTI UAE is better placed to advise UK companies on project timelines and DAEP’s procurement strategy. We remain committed to help our companies maximise their business wins at AMIA, and make a significant contribution to UK exports to the region. There is a large amount of facilitation and lobbying done on behalf of British companies through UKTI in London and through our embassy staff. As and when tenders approach we will undertake a lot of protocol, continuously reminding DAEP of the original offer, and hopefully upping our offer in terms of the expression of interest.

Regional and global opportunities In six to 12 months’ time we would like to think the UK would have had some huge successes, and that British companies would be recruiting heavily to provide goods and services. We would also hope there would be a very productive pipeline for UK companies at Al Maktoum. By that time we would have seen Kuwait International kick off, regional airports in Saudi progressing, and Bahrain International right in the middle of its development. There is so much happening in the Gulf region now; it’s extremely exciting times. There are parts of the world where projects are very well designed on paper, but it can often be ten years before the first spade goes in to the ground. What we are seeing in the Gulf, predominately Saudi, Qatar and UAE, is that these countries keep to their word. They have a vision and, despite the change in

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crude oil prices, a big cash reserve. Although some countries have more money than others, they realise their national infrastructure needs development. The UK should be making the most of these opportunities. In Saudi Arabia, Riyadh, Jeddah and Medina, airports are going through major expansion programmes, but there are also some 20 regional airports that are going through individual development such as refurbishment and extension projects. We were fortunate enough to have sent a mission out to Saudi Arabia in February this year, and the airport authority, which is run by a government department, has shared a huge amount of intelligence with us. We would hope to see some things kick into place this summer after Ramadan. Our embassy staff are closely engaged with us and we are keeping UK companies informed.

Political concerns Despite turmoil in the region for the past 15 years, business carries on and British businesses are still out there working. Mobility and flexibility within the region is very important. However don’t take your business eye off the ball, because there are other countries waiting to capitalise. China for example, is very strong from a construction and engineering design point of view, and is coming along in terms of equipment although the UK still leads for innovation. The Middle East is a thriving market for aviation and airport developments. Aviation is the key to Dubai’s growth and presently constitutes just under 30% of Dubai’s GDP. The Gulf carriers: Emirates; Etihad and Qatar Airways are the top three fastest growing airlines globally and offer immense potential for aviation companies across the board. There is an ever-growing demand for innovative and cutting edge products and services – UK SMEs and MSBs have huge potential to contribute in this area.

Further information Rashid Khawaja, UKTI Trade & Investment Advisor, British Embassy Dubai Tel: +971 4309 4205 Shakir Khaja, UKTI Airport Specialist, London Tel: +44 07771838069 Gov.uk/UKTI

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British Aviation Group

With major new projects like Al Maktoum International Airport in Dubai in the pipeline, the Middle East aviation industry is offering up huge business opportunities. British skills are in demand and there are many resources to help companies get off the ground, say Alan Lamond from the British Aviation Group and Marcus Archer from UKTI

Collaboration and cooperation: the future of airport business opportunity What do you think British companies can offer the UAE aviation industry? Alan Lamond British airport architecture professionals

How do you support British companies that are working in this region? Marcus Archer We have a team in London that

hold a pre-eminent position in the world. They include many of the world’s leading professionals, the most innovative service providers with a fantastic work pedigree. Nowhere is this better illustrated than in the UAE, where we have British companies involved in all the major projects. I’m not saying we do it all, but we are very adept at providing the right skills at the right point in the project. We also have companies based in the UAE who have been here for decades, even before the formation of the UAE. We have to try and make sure the whole of the British supply chain understands the great opportunities here. Marcus Archer An example of this is Halcrow which has been in Sharjah since the 1970s. Other UK companies have also been working here in Abu Dhabi and Dubai for many years covering all the disciplines such as master planning, design, civil engineering, specialist equipment supply and security.

focuses on the airport sector and we have a strategy of looking ahead at which projects are coming up. We primarily use our UKTI network around the world at our embassies and consulates. The High Value Opportunity (HVO) programme highlights projects that can demonstrate £250 million worth of value coming back to the UK. We have an HVO specialist and can identify some of the accessible values that these big airport projects have. There are approximately 13 airport HVOs around the world that we focus on, with the Al Maktoum project the biggest of all.

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Where are the other HVOs in the airport sector? Marcus Archer We have HVOs in Kuwait and

Above: Dubai International Airport

Saudia Arabia. Kuwait is moving at a slower pace, but we are monitoring. Saudi is our most mature HVO and we have reached about £350m in British wins already at the airports in Jeddah, Medina and

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British Aviation Group IMAGE: PETER LANGE/SHUTTERSTOCK.COM

Riyadh. We believe there is still more work to come from these airports. There are a number of regional airports in Saudi as well, and so although the market is mature there is still potential. Other examples are the New Istanbul Airport, Singapore Changi and China airports. How do you help British companies win this business? Marcus Archer We have regular dialogue with the

industry and with the British Aviation Group (BAG) with whom we share individual intelligence. Then if a project has merit we consider setting up a trade mission, either to the UK or an international visit. We also support companies at some exhibitions, for example the Dubai Airport Show which attracts people from across the region. From these come face-to-face meetings which can be a real ice breaker for companies to meet potential clients. Once relationships have been developed, companies can then visit the market again of their

Above: The current Al Maktoum Airport Below: Abu Dhabi Airport, UAE

own accord or the embassy can help them if they want to fly out for a meeting, and will stay in touch during proceedings. So the involvement is a triangle between our Embassies/High Commissions, UKTI HQ and BAG. How does BAG help? Alan Lamond There is a tremendous amount of

expertise in the UK, but some is not as connected as it could be. So we are trying very hard to create events so those with information about early stage development can pass it on to the rest of us. We have a fantastic array of product suppliers who do not know about the early stages, so we’re trying to create a matrix where people can understand what is coming, what is already there, and where the opportunities lie. So there’s an element of pooling the resources and knowledge of the British Government? Alan Lamond Absolutely, it is all about supporting

each other. One of the advantages that the UK has over our international competitors is a degree of openness. We are keen to share what is going on and inform everyone of the opportunities. There is a real desire to collaborate and cooperate, and on occasions compete. There really are no barriers. How do BAG and UKTI ensure the benefits are felt right down the supply chain? Alan Lamond We try to have as many events as

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possible. We’ve also just instigated the British Opportunities Centre (BOC) where people working on projects report information, enabling others to see the project timescale. We have done a lot of work with UKTI in terms of mapping out some of the traditional project profiles. Every project is different, but there are some basic tenets you can rely on. Marcus Archer Business opportunities can be found on our website. This is where our Embassies

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British Aviation Group

and High Commissions place intelligence periodically. Anything from equipment supply to consultancy will go on the system. We make sure BAG knows all the information to ensure it reaches as wide an audience as possible. How can smaller companies get involved in these HVOs? Marcus Archer It’s always very useful for smaller

companies to come to the events we host on an inward mission. There are opportunities to see what’s happening internationally on a particular project, but more importantly to network with other companies at the event. This means they can develop leads and understand timescales, so further down the line they will have a better understanding of where they can fit in. It’s much better to get all the information early on, rather than arrive too late in the day. They can also contact their regional UKTI International Trade Advisor for help and guidance. How do you think the aviation sector has changed over the years? Alan Lamond That’s a really tough question to

Above: Jeddah airport terminal in Saudi

How will Al Maktoum differ from other airport projects? Alan Lamond The sheer scale is jaw-dropping.

What makes British companies capable of offering services to projects the size and scale of Al Maktoum? Alan Lamond No major airport project in the world

reaches completion without significant parts of it being undertaken by British companies, because you need experience when undertaking these major projects. The large project currently underway in Istanbul has heavy British engagement in its delivery. We have tremendous pedigree because BAA was the first privatised airport operator. That introduced an element of competition, and because of this we have a whole array of consultants and service providers who’ve had to compete against each other. We have half a dozen world class engineering consultants involved in airports. No other country

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has that number, and the competition means there is a tremendous stimulation to make sure they are at the cutting edge of new developments. Marcus Archer We have a past record of working on some really big terminals such as Beijing Terminal 3, about 10 years ago, where a number of British companies were involved. UK companies have also worked at Indira Gandhi airport, New Delhi, India, Jeddah’s new terminal in Saudi Arabia and Hong Kong’s airport. Alan Lamond Yes, as well as Hong Kong. One of our best attributes is that we are perfectly happy to work together. Hong Kong was a collaboration between a number of different British companies working together to address the huge challenges, being aware of where their strengths lie and pooling their resources.

Opposite (left to right): Shakir Khaja (UKTI Airport Specialist); Marcus Archer (UKTI); Ali Sherwani (UK Export Finance); Rashid Khawaja (British Embassy Dubai) and Alan Lamond (British Airports Group)

We’re talking about an airport that’s planned to be double the scale of anything else conceived – these are extraordinary challenges that are being proposed. The construction timelines are tight and aggressive, and there is a huge amount of work to be undertaken. It is a unique project and we are right to recognise that the British have a fantastic contribution to make towards it. Marcus Archer If we can do a significant element of this project it would be fantastic. As an HVO it has well over £250m worth of UK content, but we think far more is attainable. It could be as high as a £billion or more.

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answer because everything is radically different. I have been designing airports for 25 years and when I first started in 1990 the approach was very different. There is undoubtedly a trend towards mega-airports at the moment. We are seeing some huge projects in Beijing, Mexico City, Istanbul and the biggest of them all in Al Maktoum. There has been a remarkable transformation in the way airports have been designed. Some of those changes have come through technology, which of course has a huge impact on the way airports function. But the reality is that airports keep changing, so you need something that is flexible. The notion of having facilities that can adapt is one of the key attributes to new airports. Marcus Archer Technology continues to change and it can affect the ongoing operation of the airport. The way Heathrow manages its retail is now completely different to twenty years ago. Some of the shops will change the stock they have on display depending on the time of the day and the nationality of the passengers passing through, so they can maximise sales to different markets throughout the day.

British Aviation Group

ALAN LAMOND Where does Britain’s place in the airport sector lie in the future? Marcus Archer There are still plenty of big airport

projects we are looking at. We hope to achieve a substantial amount from the Mexico City Airport project, and there may be possibilities in Australasia as well as some clusters of countries in Africa. In terms of HVOs, we are always planning ahead and as airport projects mature then we can look at new ones. There is plenty more to come and plenty more for British companies to get involved in. Alan Lamond The aviation market has been doubling every 15 years since the late 1970s and that is not expected to change. What has changed is where that growth is occurring. It is no longer happening in North America and Europe, however in Asia, Africa and South America there is significant growth. It’s really important for us to realise that the old traditional markets are changing and the growth is moving further afield. Organisations like BAG and UKTI need to focus our member’s interests on these opportunities that are presenting themselves. It is an exciting world out there and we want to be able to take full advantage of it.

Further information www.britishaviationgroup.co.uk Gov.uk/UKTI

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Alan is Aviation Director at Pascall +Watson Architecture with 25 years of innovative front end input into airport design projects. He has led international aviation teams on a broad range of projects at over 60 airports in more than 30 countries. Alan is a project design director with specialist masterplanning and urban design skills, and speaks regularly at aviation conferences around the world. He served as Chairman of the British Aviation Group and is currently Vice Chairman.

MARCUS ARCHER Marcus is Deputy Head, Airports Sector Team in UKTI. The team works closely with UKTI colleagues in Embassies, Consulates and High Commissions, supporting UK airport companies doing business internationally and spreading the word on UK expertise and capability. They also work with the British Aviation Group and, with them, arrange outward and inward missions and trade exhibitions in relation to some of the Global High Value Opportunity airport projects being targeted.

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Aviation Trade Mission

What is a trade mission? A five-day trade mission with UK Trade & Investment and the British Aviation Group is no holiday, but it opens up a whole new world of business opportunity says Steve Gardner, Managing Director at Inspire Publishing

Above: Trade Mission Delegation at DAEP presentation

o many smaller businesses, the idea of joining a UK Trade & Investment (UKTI)backed trade mission to a faraway foreign land might sound like an opportunity to soak up some sun and enjoy a few days out of the office. The reality is very different. After a late check in and a night of trying to get used to the time difference (and so very little sleep), it’s an early start for the 20 or so assorted UK businesspeople on our mission to the Middle East. Brilliantly organised by Alan Lamond and Alan Buddle of the British Aviation Group (BAG), the handing out of name badges, distribution of mission programmes and huddling onto a small coach made this resemble more of a school trip than an important business opportunity. However it’s at this point the first realisation of what a trade mission can do for your business hits you - it’s not just about the contacts you make in market, it’s also about the contacts you make among your fellow ‘missioneers’. The combined experience, knowledge and contacts of our band of brothers on the bus are incredibly useful. We were a disparate bunch, with companies from across the spectrum of aviation products and its entire supply chain including security specialists, industrial textiles (very useful for shoring up runways

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built on sand as I discovered), drainage specialists, project management software and of course, architect, contractors and consultants. All are here to learn about the opportunities for their businesses on some very important and valuable projects, but also to learn from each other, strike up new alliances, create partnerships and joint ventures, and help each other to do business in a new and interesting environment. Some have done business in the region before, others haven’t, so the insight of the experienced is hugely valuable to those here for the first time.

Warm welcome The mission is an intense experience, with a full programme packed into a short amount of time. You spend a lot of time on the bus, in various meetings and evening drinks with your fellow ‘missioneers’. And the insight and knowledge you gain from them is just as important as the contacts you make with overseas clients. Our first meeting was a hugely important briefing from Dubai Aviation Engineering Projects (DAEP) on the massive Al Makthoun airports project. This is covered extensively elsewhere in this publication so I won’t go into too much detail; suffice to say this

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Aviation Trade Mission Left: Trade Mission outside Sharjah Airport Middle: CMeeting inside Sharjah Airport Below: Presentation on the lawn at the British Embassy in Dubai

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Aviation Trade Mission

Learning opportunities

project, for most of us on the mission, was worth the price of the trip on its own. What grips you immediately about this and all of the other meetings on the trip are how much overseas clients want to work with UK business. The red carpet is rolled out, the coffee is served and the welcome is warm. Hosted by DAEP CEO Suzanne Al-Anani, custodian of a project which in its first phase alone will be worth US$38 billion, it’s hardly surprising that the room is packed. Over the course of an hour and a half we found out everything we needed to know about the project including timelines, procurement strategies, potential areas and packages of work. For anyone tendering for a contract on this huge airport project, there was all the information they could possibly need to identify the opportunity, and understand the scope and scale of the project and whatever part they could play in it. Not only that, but also time enough for each delegate to make representations on behalf of their business, introduce their company and even ask the questions about how their company could contribute to the project.

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It’s a pattern that was repeated throughout the trip: to Shajah and the airport developments there, to Fujairah and the challenges of developing a smaller airport, to the massive ‘midfield terminal’ development in Abu Dhabi for a demonstration of the huge ambitions of Etihad and more opportunities there. The mission was packed throughout with meetings, networking opportunities and, crucially, learning opportunities. Each delegate came away with a file full of contacts, both UK companies they could do business with, and the overseas client contacts so crucial to winning major business overseas. Anyone expecting a jolly holiday was going to be cruelly disappointed by this trip. Anyone wanting to understand the market in the UAE or to find contacts, partners and opportunities in this market, could milk this trip to the full and come away with intelligence, contacts and information that would truly make them profits. A word also needs to be said about the UKTI people who accompanied us, including Marcus Archer and Shakir Khaja from the airports team in London, Rashid Khawaja and Tamreez Inam from the Embassy in Dubai, and Ali Sherwani from UK Export Finance, all on hand to provide insight and information as well as answering questions and setting the scene for the trip. These were also the people who set up the relationships and laid the groundwork for our trip and who put us, as UK businesses, in the right rooms with the right people to allow us to make the business relationships that will count. If you’re looking for a holiday, then I might suggest somewhere with a pool and a beach. If you want to make money, create a great business opportunity and expand your company overseas then you need a trade mission. They’re hard work though, so I would recommend the holiday afterwards.

Further information Gov.uk/UKTI

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G4S

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G4S

Aviation security has changed dramatically over the last few years, and remains a complex yet essential part of airline travel. Advances in technology may have improved customer experience, but passenger safety is always the highest priority, says David Stockton, Chief Executive Officer of G4S UAE How do you think security at airports differs from other public spaces?

Managing airport security

The need for security has not changed, whether it’s in airports or other public places like shopping malls. However aviation in general is of high commercial value, and any security incident is big news so it’s guaranteed international exposure. The level of airport security has increased dramatically over the years in line with the perceived threat of attack on air transportation, and the resultant legislation that has been introduced in most countries to tackle that risk. As airports get bigger, how do you balance the need for effective security with the need to reduce passenger queues?

Greater use of technology allows most processes to be completed more easily than before, and this trend will grow significantly upwards. The same can be said of the security checks themselves, with initiatives such as IATA’s Smart Security and security providers such as G4S bringing innovation through a blended mix of ‘people + technology’ to increase effectiveness and efficiency. At the same time, travellers are becoming more demanding and less forgiving. While they expect high security standards, they don’t want to be delayed at the check-in desk or spend hours waiting in long security queues. It’s a difficult balance to strike, but a challenge that the industry has to tackle head on. Are some security measures intentionally visible to give passengers peace of mind?

The emphasis is always on providing secure solutions, which improve security but do not inhibit the flow of a growing number of airline passengers. The main purpose is to provide a deterrent to the potential terrorist, which provides reassurance to passengers. How are innovations in technology affecting the way airport security is managed?

It’s more a case of the facilitation of the processes that is improving through technology, by helping staff and passengers. However sophisticated equipment will continue to make a vital contribution to aviation security. A good example would be new Liquid

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G4S

| Detection Screening equipment, allowing certain liquids to be screened, which was not possible from 2006 to 2014.

measures are relative to economic size and capability, so expenditure matches and manages the equivalent risk.

During tough economic times do airports still invest heavily in security or are some, perhaps those whoâ&#x20AC;&#x2122;ve had no major security incidents, satisfied with what they have?

Are security regulations the same around the world, or are there opportunities for a flexible approach?

During difficult economic times, as airports and airlines seek to reduce their costs, they continue to have a responsibility to the travelling public to constantly improve on their safety and security standards. Each country has its own level of threat and so some differences are inevitable. In most cases,

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There are differences in each country, not only in regulations but also in performance and compliance, although no-one should fall below minimum ICAO standards. With presence at over 100 airports worldwide, G4S has the expertise to find the right blend where flexibility exists. G4S already has a reputation for providing integrated security solutions in other sectors, combining risk consultancy and the use of

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G4S

DAVID STOCKTON David Stockton is the Chief Executive Officer of G4S UAE. He is responsible for business in the UAE, overseeing 11,500 staff proving solutions in manned security, electronic security, cash processing and transportation, event security, facilities management, people recruitment and outsourcing. Before joining G4S, David spent six years as Chief Commercial Officer for Pourshins – Supplair, and worked for British Airways for nine years.

What unique security issues does a project the size of Al Maktoum create, and what can be done to neutralise these issues?

Having multiple security checkpoints makes the passenger journey more complex. However, consistent measures and delivery, plus clear communication, can help overcome these issues. Ideally, G4S’s involvement with a new airport’s security would begin with risk consultancy and go on to embrace the design of the entire facility or additional terminal, the choice of technology to be used within it, the supply, upgrading and maintenance of its security systems, the vetting of airport employees and the supply of personnel to provide security and associated services. How receptive are other countries to security assistance from the UK?

The UK, with its enhanced measures, is seen as a benchmark for quality and standards in aviation security, with services often provided by outsourced companies such as G4S. Therefore, countries are very receptive to UK assistance and training. By raising standards across the industry, and by combining technological solutions with the expertise of some of the world’s finest security professionals, G4S can deliver solutions that meet today’s stringent security requirements reliably, cost-effectively and in harmony with aviation operations. What is your involvement in Baghdad International Airport, and what have you learnt from it?

technology and people to best effect, a model which works particularly well for aviation customers. Do you collaborate with local police forces in locations around the world?

G4S believes that the most secure and beneficial solutions come from understanding the challenges of ensuring the safety of travellers and the efficiency of the international transport system. We always work in collaboration with the authorities – internationally, nationally and locally – and the police are present at each airport. In the Middle East, the Police or Ministry of Interior, will be the airport security at the passenger checkpoints, with G4S facilitating the process.

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While the need for good security and risk management applies to all airports around the world, some are more challenging than others. Iraq is one example. It is the highest profile airport we’ve managed in terms of threat and risk, particularly over an extended period of time. There are nineteen checkpoints to cover, and our deployment since we commenced the contract has developed on an almost daily basis, so the biggest learning point has been on how to keep resources and delivery flexible in the most challenging of environments.

Further information www.g4s.ae

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Vector Consultants

ith its emphasis on expansive growth and expensive new aeroplanes, the aviation industry can sometimes be guilty of forgetting that its main purpose is to serve its passengers. While the industry continues to grow in the Middle East, is it essential that airlines prioritise the need for passengers to have a safe and enjoyable journey and British company Vector Consultants is keen to ensure that passengers’ needs are not forgotten. As well as maintaining custom, this focus on passengers can also lead to increased commercial opportunities. Vector has already seen proof that shifting the

focus from operational to passenger-led decisions benefit everyone involved. Vector has been working closely with the Turkish company Pegasus, Europe’s fastest growing low-cost airline. With its new passenger-focused approach, Vector was able to help Pegasus achieve incredible results and increase its on-board revenue by 46 per cent in just six weeks. Alan Stevens, director of Vector Consultants, explains how this change in focus could make such an impact. “When working with Pegasus, one of the things that we were challenged with early on was its own perception that domestic passengers would not spend money. We needed to break this myth.”

Commercial opportunities

Passenger needs should be the focus of decision-making within the aviation industry, not just to maintain custom but to increase commercial opportunities, says Alan Stevens from Vector Consultants

Vector initiated a six-week process which included two weeks monitoring the staff on the routes themselves; two weeks training the staff in the new approach and then two weeks putting it into practice. Vector observed that passengers were willing to pay, but the basic processes of the airline were unable to fulfil their needs. As Alan explains, “Many Turkish domestic travellers are not experienced flyers, so are not aware of the processes. On the 737s, the button

Prioritising passenger needs

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| you need to push to request service is very high up and the trolley would only come past offering drinks once or twice a flight. The commercial opportunities were just not visible.” One of Vector’s main points of persuasion was their emphasis on lost potential revenue that the airline itself may have overlooked. “Each of the cabin crew was asked by us to record on their personal digital assistant (PDA) every time they had a request from a passenger that they could not fulfil. So let’s say, for example, a flight carries five Red Bull drinks, and the airline would congratulate itself on selling all five. Now they can see that they could have sold 50. You are essentially measuring the missed opportunity,” says Alan. This then leads on to the question of stock and how much they take on each flight, but by monitoring the passenger’s needs the airline can ensure that the stock on board is the right match for their clientele.

Staff training Training staff is key to developing this new revenue stream. Vector highlighted the need for them to be as attentive as a barman or waiter to maximise revenue potential. “With Pegasus we worked backwards to its recruitment process,” Alan explains. “First of all we ensured that the correct language speakers were on the correct flight. It is then important that, before each flight, the staff are briefed on the customers they are expecting and what their requirements might be, and from there what targets the crew had for that specific flight.” This passenger focus eventually leads to a change of culture on airlines, perhaps the most drastic consequence of the suggestions Vector are making. “Once the staff are passenger-focused everything changes. For example, previously on overnight flights, airlines would keep the lights on to ensure the customers stayed awake and bought more drinks. You have to ask where are the customer’s needs in all this? The passenger wants to sleep, so why not sell them something to help them sleep? Now Pegasus sells pillows, eye shades and ear covers for five Euros each and of course their revenue increased. It is about reversing the mind-set.” Vector is excited by the opportunities in the Middle East and the potential to continue with the increased passenger focus that was so successful with Pegasus. “There is nowhere like Dubai in terms of the opportunity to have a wonderful retail or passenger experience. They are trying to develop an aviation hub there and are very well geographically positioned to do so.” Alan cites Changi Airport in Singapore as a great example of what can be achieved. “Changi has created a really pleasurable experience for the passenger. They regularly put on entertainment; there is the opportunity to listen to music and there is free wi-fi. This means people want to spend time there. If look at most of the other hubs in the world you will see people either sitting on the floor or asleep on very uncomfortable chairs because there is nothing for them to do. To become a hub you need to make the airport attractive for passengers.”

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Vector Consultants

ALAN STEVENS Alan’s expertise lies in bottom line improvements to corporate results. He has an extensive background in organisational diagnostics, alignment, leadership and change management. He is also a national culture expert, specialising in mergers & acquisitions, and has worked on major organisational projects for global blue chip companies for over 25 years.

Increased revenue Similarly, making an airport more attractive and enjoyable for the passenger creates increased revenue opportunities. “We can add value by mapping the passenger processes through the airport. It is not uncommon for connecting passengers to spend 90 minutes to get through the routing desk and security. That is 90 minutes where the passengers could be in the airport enjoying themselves and spending money. Airports in the Middle East need to work harder to get people through the security to the retail environments much quicker than they are now. Obviously security is important, but once again we keep trying to highlight the passenger’s necessities.” It is important to ensure that the passenger’s needs are kept as a priority within the aviation industry, not just to increase revenue but to prevent them from turning to other forms of transport. The rail industry is receiving a great deal of investment in the Middle East and in the near future, and could offer a cheaper and easier way to get round. Vector is aware of the competition that aviation faces as they have already been using their consultancy expertise to develop the rail sector. Alan says, “The investment in rail across the Middle East in the next ten years is huge, and so aviation would do well to develop its passenger focus. Take the Eurostar from London to Paris as an example, why fly when you can get the train?”

Competitive advantage By changing the focus of operations, Vector is confident that custom can be retained and revenue increased. With the huge growth of aviation in the MENA region, the company is keen to ensure the passenger is not forgotten either in the airport or on board the plane, and the full potential of the opportunities are realised. “One of the things that they do well in the Middle East is commit to and execute a project much quicker than they do in Europe.” Alan says. “That gives them real competitive advantage. The opportunities are there, our remit is to once again ask, where is the passenger in all this?”

Further information www.vector-consultants.com

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Atkins

Understanding the cities of the future 66

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Atkins

Atkins is rising to the challenge of creating liveable cities which will be fit for purpose in the long term, say Tom Hasker and Julian Hill of Atkins

“T

he Middle East is an incredible place to be an architect, engineer or urban planner because you get such a strong sense of how your work is shaping the environment around you and improving people’s lives,” says Tom Hasker, Managing Director, Property, for Atkins in the region. “The region has achieved incredible things during the past 30 years, and its ambition today continues to be as strong as ever.” Few companies have done as much to shape the GCC region as UK-headquartered design and engineering consultancy Atkins. Their list of high profile projects can be used to chart the development of the region, including the Burj al Arab, Dubai Metro, Bahrain World Trade Centre and Makkah Metro. Today, the company is involved in major projects and programmes in the property, rail, infrastructure and energy sectors, with 11 offices in the region. One of the biggest challenges - and opportunities – on which Atkins is currently focusing relates to understanding the cities of the future, and how “smart” technologies will impact people’s lives and lifestyles. “We have to imagine the future with real conviction to ensure that what we’re designing now: the buildings, public realm and all the supporting infrastructure will be fit for purpose in the long term,” says Hasker.

Smart cities It is arguably even more important for the Middle East to be on the front foot when it comes to future proofing its cities because of the sheer volume of new infrastructure development, and because of the naturally high level of urbanisation. 88% of people in the GCC are forecast to be urbanised by 2025. “We have a great opportunity to think differently about how we piece our cities together to ensure they allow strong, integrated communities to flourish,” says Hasker. He believes a key challenge for companies like Atkins, and ultimately for their clients, is to ensure that the region’s urban environments are enabling

Prince Sultan Cultural Centre

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Atkins

| Above: Al Habtoor Residences Right: Yas Waterworld Opposite: Burj Al Arab

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| TOM HASKER Tom Hasker is Atkins’ managing director for the property sector in the Middle East. He has worked in the industry for 18 years and has delivered major projects and programmes in the hospitality, healthcare, retail and commercial sectors in the Middle East and Australia. Tom is responsible for the strategic growth of Atkins’ property sector activities across the Middle East, with a focus on the markets of the UAE, Saudi Arabia, Qatar and Oman.

JULIAN HILL Julian Hill is the managing director for the rail sector in the Middle east region. He moved to the Middle East in 2006 to work on the Dubai Metro project. Julian led the team working on the underground stations for the Red Line and was later the project manager for the Green Line design. He has since won a number of prestigious rail projects in the Middle East. Prior to joining Atkins, he worked in Hong Kong for 12 years with Ove Arups on the design and supervision of many rail projects. Julian is a chartered engineer

Atkins

benefit future projects. A case in point is Dubai Metro, from which Atkins has gone on to build one of the most respected rail design teams in the region. “Dubai Metro was the first mass transit rail project in the Arabian Peninsula so the learning curve was quite extraordinary for all those involved in it,” says Julian Hill, managing director for Atkins’ regional rail sector work. “We’ve since worked on every major rail or metro project in the region and the value we’re able to add is getting stronger with every project we work on because it’s about constant learning and making best use of it. We know what works and we understand how the decisions we’re making today are going to impact the end user, and that’s critical.” Ultimately, the challenges ahead demand a strong partnership approach among client organisations and their supply chains, believes Hasker. “We’re excited about the future because this region has every opportunity to realise the visions of its leaders,” he adds. “As long as we work together with the same purpose, there’s no limit to what can be achieved.”

Further information www.atkinsglobal.com

and integrating new behaviours and systems to support the delivery of ‘smart’ solutions. He says: “There’s a lot of buzz around smart cities at the moment, but what makes the concept exciting for us is the idea of harnessing technology in a people-focused way to help create liveable, inclusive cities which are more resilient, more enjoyable and more desirable to be in. This will also support economic success and long term prosperity.” Atkins is rising to the challenge of future-proofing the region’s cities by a combination of investment in innovation and by encouraging step-by-step, incremental change in all its projects. An example of how the company drives innovation is its long-term support of the British University in Dubai (BUiD), which includes the sponsorship of the Chair for Sustainable Design of the Built Environment. The two organisations share knowledge and expertise in order to deliver evidence-based research. “This relationship is very special to us because on the one hand it is part of our commitment to invest in the next generation of talent in our sector, while on the other it is about enabling research into innovative sustainable solutions for our future urban environments,” says Hasker. While this investment shows Atkins’ willingness to invest in potential step-changes, the company also puts great stock in the importance of learning from experience. This is about creating a platform for its experts to draw on a vast portfolio of completed projects, both in the Middle East and across the world, to

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Issue 01

| Global Opportunity Middle East 2015

Spectrum

| Dr. Hodgson and colleagues discuss the geological narrative around their latest seismic survey

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Spectrum

Adapting to new market conditions S Oil prices may have halved but the industry is still strong, says Dr Neil Hodgson, Executive Vice President at Spectrum

eismic data specialist Spectrum has seen rapid and strong growth over the past three to four years, building one of the largest seismic data libraries in the world. Yet during the autumn of 2014 the oil price halved, quickly and without warning, changing the market environment and leading some observers to predict a shift for the oil industry into a more cautious investment dynamic. “However the reality is more interesting; the environment has changed but the fundamentals remain strong,” says Neil Hodgson, Executive Vice President Mediterranean and Middle East, Spectrum. “There is no reduction in appetite for hydrocarbons, far from it, because low oil prices will lead to resurgence in oil consumption as the world’s economies kick-off again. The most likely driver for the oil price fall of last autumn was simply oversupply caused by the appearance of an expensive new source of oil; shale oil in the USA, which is likely now to be self-limiting.”

Groundwork for the future Since the 1960s the oil industry has always been cyclic, with unpredictable fluctuations in commodity price, and international oil companies (IOCs) have quickly learned how to survive such times and prepare for the upswing to come. Critical to being

DR NEIL HODGSON Dr. Hodgson joined Spectrum in June 2012, having previously worked for BP, BG and Premier Oil in a number of Exploration Geology roles over a 25 year career. His last role prior to joining Spectrum was as Exploration Director for Matra Petroleum. Neil is focussed on developing the understanding of hydrocarbon plays in the Mediterranean and Middle Eastern areas of Spectrum’s Library. Neil is a British citizen based in the UK office.

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Spectrum

sea bed to 10-12 kilometres down. Looking at these sediments, the process and timing of the generation of oil or gas in an area can be understood and the routes by which the hydrocarbons move and accumulate into traps and fields can be predicted. This is the evidence scientists need to demonstrate their fantastic models and ideas, to challenge and support investment in new areas.

Global outreach

able to correctly position is the flexibility to control investments, keep their best explorers on board, and focus resources on laying the groundwork for the future. While huge budget savings can be made by delaying development or even drilling investments in the short-term, IOCs maintain market position by directing their most precious resources – their staff – to exploration positioning. One of the questions logists get asked most often is ‘when is oil going to run out?’ The answer is that it never will, but over time it will just keep becoming more expensive to harvest. We need to remember this in times of low oil price, as although oil will not run out, we have exploited many of the cheap oil deposits. However there are still vast regions of the world that have not been fully, or even partially explored for oil and gas due, in the main part, to technological, political or economic limitations – for example ultra-deep water or in the many prospective parts of the world distant from oil and especially gas infrastructure.

Creative exploration However, history tells us that there are few engineering puzzles that cannot be solved if the demand is there, and if the prize is big enough – demand will follow. The biggest prize in new areas comes to early movers who take a position, and discover the biggest reserves at the lowest risk. Whilst IOC’s are incredibly creative with their exploration ideas, their biggest barrier is actually the need for evidence that supports the concepts and ideas. At times of low oil price, providing this information cost-effectively is a powerful enabler. Spectrum’s seismic sections provide scientists with profiles through the earth, allowing them to see the sequences of sediments in an area from the

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Spectrum seismic data can provide valuable information and insight to governments and oil companies

Globally, Spectrum works closely with host governments that want to develop their indigenous hydrocarbon industry, to reduce dependency on foreign oil imports or to supply energy for inward economic growth regeneration. Acquisition of new seismic data accompanying a new logical narrative is often the trigger for re-focusing of industry attention on an area. Spectrum also brings global outreach and marketing programmes that contact every IOC, facilitating the promotion of a host government licensing initiative and aspirations. This cooperation is incredibly powerful and there are many recent examples where a new seismic has surprised and engaged a new generation of scientists who are able to challenge the old understanding and refresh their search for oil in an old basin, in addition to programmes where the new data has drawn the industry to re-appraise an area previously considered un-prospective. Neil says, “Our business is to anticipate parts of the world where the oil industry will go next to explore for oil and gas, and we collect the scientific data that will help them succeed. We know our seismic profiles, gravity and magnetic measurements will be what the IOCs need to work out if the new areas are of interest, so it is in everyone’s interest to collect the best possible data, so that oil companies can be confident in bidding competitively for exploration licenses.”

New opportunities Spectrum operates globally, with offices in Oslo, Houston, London and Perth. Once an underexplored area is identified it works closely with host governments to ensure the collection of scientific data coordinates with their timetables and plans, preparing the narrative to market the exploration areas and bring the new opportunity and the international oil companies to the table together. Spectrum is committed to the search for oil and gas around the world. At times of low oil price they are ideally positioned to provide host governments with the contact infrastructure, seismic data and science narratives to energize their initiatives that promote exploration, and at the same time provide other partners, the IOC’s, with fuel for their exploration dreams. Low oil prices may come and go, but the oil industry is here for all our good.

Further information www.spectrumgeo.com

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Private Jet Charter

Flying high in the Middle East Private aviation has really taken off in the Middle East, says Hugh Courtenay, CEO of Private Jet Charter

he luxury, discretion and convenience afforded by private jet travel are highly valued in the Middle East. UK business Private Jet Charter counts royalty, top business people and high-net-worth individuals among its clients. Having weathered the financial crisis of 2009, it has now successfully and firmly established itself in the market.

What interests you most about working in the Middle East?

We started out in the private aviation business in

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1991 with a head office in the UK. It quickly became apparent that our growth potential in the Middle East market was huge. We discovered that Middle Eastern clients had a very limited choice of good quality aircraft within the region, and were keen to establish partnerships with a reputable private jet provider. As our Middle East client base grew we felt we needed to establish a physical presence in the Gulf, and Private Jet Charter Dubai was set up in 2000. At this time Dubai was a hub for the Middle East region and we soon formed partnerships with

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| owners and operators of jet aircraft, and built up a fleet there. Development was incredible, and our services were very quickly a vital business tool for our Middle Eastern business clients who relied on us to provide aircraft for inter-regional travel as well as international travel. Having an office in the UK suddenly came into its own as we had a strong foundation of long and well established working partnerships throughout the UK and Europe. We now work with a wide range of clients including royal families, government officials, high-net-worth (HNW) individuals and business professionals. What was your experience of the financial crisis and how did you learn from it?

What came out of the whole financial crisis for me was that no matter who you are, and how much money you have, you can take the hit just as hard as anyone else. I was in the UAE in our Dubai office when the financial crisis really kicked in there. It was almost as though someone had flicked a switch and all the lights went out. Business dropped by 80 percent in one month alone! Many companies had invested heavily in the infrastructure and sky scraper buildings were being thrown up in just months. When the financial crisis hit, it was like ghost city; the building work came to a halt. Many of the large construction companies went bust, and people who had invested lost their money. There were litters of fast cars just dumped at the airport as people left the country, and Abu Dhabi was called upon to come to the rescue.

HUGH COURTENAY Hugh started his working life in sales, but quickly realised that his entrepreneurial spirit needed a much bigger challenge. After a few months working in an aviation company, he spotted a gap in the market and realised the huge potential benefits that being a broker for private jets offered the corporate and VIP sector. He took the decision to start his own company in 1992 just using a mixture of shrewd business knowhow and gritty determination, and has carved a niche as a provider of quality aircraft and services. 25 years later, Hugh is CEO of one of the largest aircraft charter brokers in the marketplace. He attributes his success to offering the latest generation of jets combined with a personal and professional service in a worldwide market. Hugh has grown Private Jet Charter so that it now boasts worldwide offices in London, Nice, Moscow, Florida and Dubai.

Private Jet Charter

How did that affect the private aviation business?

Worldwide, there was suddenly a glut of private jets for sale. Finance directors, sometimes for the first time, weighed up the running costs and realised how much they actually came to. And from a broker point of view this was a good thing, as those who previously had the luxury of running their own jet chose to charter instead, as companies cut costs down. It became apparent that chartering was a much more cost effective option than owning, or even investing in a block of hours where payment is taken in advance. Those who had taken fractional ownership options chose not to renew, and gradually the charter market came back stronger than ever. The benefit of just taking an aircraft when you needed one and paying on a per trip basis became obvious. Those who owned larger global aircraft, who maybe couldn’t justify flying it all the time, selected to take smaller aircraft for shorter sector trips. It suddenly made sense to just charter when you needed to, on a per trip basis. The Middle East is now back on track and recording the level of business that was previously enjoyed, but there are still plenty of companies trying to sell off unwanted aircraft for a fraction of the buying cost. What is special about the service you provide to HNWs?

We have worked exclusively in the executive jet and V/VIP end of the private aviation market since I started the company in 1991. During this time our name has become synonymous with luxury and discretion. Our HNW clients know that they are in safe hands and there will be no publicity surrounding their flight; anonymity is of the utmost importance. Our HNW clients enjoy a seamless service from start to finish. We use bespoke software that allows us to track where private jets are around the globe. This unique software makes us faster at sourcing aircraft and saving our clients valuable time. Often HNW clients need an aircraft immediately; often the aircraft are taken for friends and family. It may be decided at the last moment, but this does not present a problem for our experienced Aviation Consultants, who can source an aircraft and have it ready to go within a couple of hours. We use only private jet terminals wherever possible, with dedicated check-in facilities. Prechecked customs clearance means no waiting for our HNW clients. Often we arrange for the limo to pull straight up to the aircraft meaning an absolutely seamless transfer. On-board facilities are superb, and on-board catering is five star all the way. Catering from our client’s favourite restaurant or a favourite brand of drink on board? It’s all possible. Our client experience is all about convenience, confidentiality and comfort.

Further information www.privatejetcharter.com

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| Global Opportunity Middle East 2015

tangerine

| Great airport design is underlined by a seamless customer experience, says Matt Round, Creative Director at tangerine design consultancy

Enhancing passenger experience through design

viation continues to be an essential feature in the construction of our global society, connecting people and ideas across vast distances and cultures. The industry is vital for social progress and economic prosperity as it facilitates trade, tourism and employment, and has numerous spin-off benefits. An example of this is the planned expansion of Dubai’s new Al Maktoum International Airport, which has been in service since 2010 but mainly used for cargo purposes. The new US$32 billion expansion will see the airport handle 120 million passengers a year, making it the busiest in the world.

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tangerine, an international design agency with headquarters in London, is a supplier on the UKTI’s High Value Opportunity (HVO) programme, and has embraced the opportunity to make its mark on the important Middle Eastern market. For the last 25 years tangerine has become one of the world’s leading design consultancies, creating some of the most ground breaking designs and experiences for some of the best known brands. tangerine was delighted to take part in the recent Suppliers’ Day for the new Al Maktoum International Airport, hosted by DAEP. Matt Round, Creative Director at tangerine explains, “The building of Al Maktoum International Airport, under the direction of DAEP, provides the Emirates and Dubai with an enormously exciting opportunity to create a unique experience

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tangerine

Main image: Virgin Australiaâ&#x20AC;&#x2122;s new business class cabin designed by tangerine Below: Car Park wayfinding signage for Samsung C&T Raemian apartments

MATT ROUND Matt is an experienced international design professional, whose passion for innovation and groundbreaking design has fuelled success for world-renowned brands with world-leading products and services. He is the creative director behind two generations of British Airways iconic Club World and set the vision for the new Heathrow Express First Class carriage. Matt leads strategic innovation programs in a variety of sectors. He works closely with Toyota and BE Aerospace and has advised Sharp and Huawei on design for global markets. He leads tangerineâ&#x20AC;&#x2122;s talented multicultural design team and is responsible for helping clients create outstanding experiences for their customers.

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tangerine

for passengers travelling to or through Dubai. tangerine would bring a wealth of experience to the project creating and advising on overall design strategy consultancy, to create a compelling integrated passenger journey and experience through the airport.” Matt continues, “This could include the journey from home to the airport, through the terminal and onto the aircraft and finally, to their final destination: a whole seamless experience. In the longer term tangerine would like to be considered for the design of physical spaces, of connecting transport between different airport areas, such as shuttles, rail and interiors to seating, lighting, design of kiosks. It’s a wide bracket.”

Iconic product design

Below: tangerine created a premium customer experience for first class passengers aboard the Heathrow Express trains in the UK, which has increased occupancy levels for the operator

tangerine is well qualified to take on a project of this nature. One of their key successes has been in the world of aviation, where their deep product innovation has given British Airways the world’s first fully flat bed in business class. This product completely changed the nature of business travel when it was introduced in 2000. The current iconic flat-bed Club World seat created by tangerine, which kept the same number of seats while catapulting the BA brand ahead of its competitors, is still flying a decade and a half after its introduction. As with all their design work, tangerine began by studying the user and their needs in minute detail before embarking on the design. For weeks Matt Round made the company offices resemble a dormitory with beds everywhere. Sleep tests were undertaken, and the movement patterns of business travellers examined carefully before the design was perfected. More recently, Virgin Australia approached tangerine with a programme to reposition the airline from a low cost carrier to a premium service offering long haul routes. tangerine was tasked with “creating a unique and on-brand feeling with a design that would set them apart,” says Matt. This involved redesigning the complete interiors of their new A330 and 777 fleet, including all of the materials, curtains, carpet, wall coverings, lighting and the graphic user interface for the seat controls. tangerine created a unique bar and customised all of the seating and storage. Deep consideration was given to all aspects of the passenger experience, from the overall cabin environment right down to the smallest of details. Matt says, “We have created an outstanding experience with gravitational pull that draws customers towards the Virgin Australia brand, crucial to the airline’s repositioning of their business on the long-haul routes.”

Developing design strategies Still in transport, tangerine worked on the complete redesign of the first class carriage for the Heathrow Express, the train service that runs between London Heathrow Airport to central London. Changing the arrangement of seating in groups from four to single seats with space for luggage and personal effects, as well as making small cost effective changes

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tangerine

Left: tangerine’s innovative approach created the world’s first fully flat bed in business class for British Airways. For a decade and a half, Club World continues to be the profit engine for BA

to the carriages and vestibules have completely changed the passenger experience. It has also increased occupancy in the first class carriages and driven commercial return for the operator since the launch in 2012, which was timed to coincide with the London Olympics. The company has worked on larger projects as with Samsung C&T’s Raemian apartments in Korea. Tens of thousands of the homes have been built each year and tangerine was brought in to develop a design strategy which reflected the local culture and touched every detail of the homes from exterior surfaces, way-finding and street furniture, down to smaller interior details like kitchen appliances and light switches. To deliver such an ambitious project as Al Maktoum International Airport, tangerine recognises the importance of relationships between the DAEP

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and its chosen suppliers. All the suppliers will need to follow the same guiding design strategy, to ensure the success of this complex and sophisticated project. Matt goes onto say, “We are interested in the whole design of consumer experience and there are a wealth of partners and experts who will need to come together to create this. “When creating the perfect passenger experience, it is vital to recognise the emotional triggers during travel. By taking away the pain points and increasing the joy and happiness moments, a smooth seamless journey for everyone travelling though the new airport can be achieved.”

Further information www.tangerine.net

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BOXARR

| BOXARR™ software allows sophisticated interdependent systems to integrate seamlessly, say CEO Alasdair Pettigrew, and Dr Robert Smith, Chief Scientific Officer

Simplifying the complex

n an increasingly technology-based world, the aviation industry ranks as one of the most complex. With sophisticated supply chains, individualised systems and ever more demands on aircraft performance, manufacturers are turning to one-stop software systems to manage the different processes in order to speed up production. In 2003 BOXARR™ (formerly Plexus Planning) founders Professor Jim Scanlan of Southampton University, Dr Robert Smith of University College London, and Ian Poccachard of Rolls-Royce identified fundamental weaknesses in current process and programme management tools for large and complex projects. They used their combined experience in industry and research to develop the concepts for a solution to these deficiencies with BOXARR™.

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The BOXARR™ solution has been implemented by many of the world’s leading manufacturers in the aerospace and defence industry including Boeing, G.E, Raytheon, Rolls Royce and the US Navy. “It’s what we call an InterDependent Systems Management Tool, a really complex system of systems that interact with one another,” says Rob Smith, now Chief Scientific Officer at BOXARR™. “On one level what BOXARR™ does is capture knowledge of subject matter experts. It is basically easy in, easy out, allowing data to be accessed from other data sources very easily. The second component of the tool is a built-in analysis framework, supporting many different kinds of analysis including schedule optimisation, critical path analysis and chain analysis. The third layer is accessibility - the boxes and arrows tool that people draw on the back of napkins.

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BOXARR

IMAGES BY ALSDAIR PETTIGREW. TAKEN AT THE FARNBOROUGH 2014 INTERNATIONAL AIRSHOW

DR ROBERT SMITH Dr Robert Smith is Chief Scientific Officer, Senior Research Fellow, University College London (UCL) and President, RESystems Consulting. Dr. Smith conducts research and development efforts in complexsystems-based artificial intelligence, including evolutionary algorithms, machine innovation, knowledge representation, evolving agents, and cooperative computation. He is a former Director of The Intelligent Computer Systems Centre at The University of The West of England, and former Associate Professor of Aerospace Engineering at the University of Alabama.

“So you get this network visualisation that shapes itself, is easy to understand, doesn’t have all the fiddling in a PowerPoint document but at the same time does real calculation that’s turned into a real picture, and one that large organisations are using to support the complexities of their structures,” he says.

Complexity in aircraft production

Left: Rolls-Royce Trent 900 engine powering an Airbus A380

ALASDAIR PETTIGREW Alasdair has extensive experience in business development, and has a passion for helping clients improve their ability to innovate and enhance their competitiveness, through the use of the latest IT solutions to improve the ‘manufacturing-to-delivery’ process. He joined BOXARR™ from IBM where he was Business Unit Lead for the Rational Systems Development tool-set and gained 15 years experience of the challenges of delivering complex systems in aerospace, defence, electronics and automotive industries. He has a degree in Engineering and worked initially in aerospace, where he worked on miltary aircraft design at BAE Systems.

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According to Alasdair Pettigrew, BOXARR™ Chief Executive, complex products are becoming more complex. “The process of delivering products is becoming more convoluted as there is an increasing prevalence of software being key to the products’ performance, both externally and internally embedded within the product.” Offsetting also contributes to the wider equation as countries require that local content and domestic input be built in to large contracts. Add to this increased customer demand that drives complexity, and suddenly there are layers upon layers that require piecing together seamlessly to maximise profit and streamline processes. “A good example of this is in aircraft production,” Alasdair says. “The way complexity has increased is multifarious and the market place has changed - it used to be that everybody ordered pretty much the same plane, because planes were simpler inside with no entertainment systems and fewer classes of seats. You didn’t have the interdependence within the plane to the extent you have now. It was all mechanical and hydraulic, whereas now it is mechanical and electrical, all controlled by an integrated software system. “These days every plane is more or less unique. Add to this the production volumes - Boeing have 3 new aircraft every day coming off the line, as do Airbus, both up to 45 a month - with a global supply chain of tens of thousands of parts coming together to form an aircraft, meaning there is an enormous amount to manage seamlessly.” Boeing already uses the BOXARR™ system, both in supply chain and production, and Airbus has now rolled out the system live to map their supply chain. “When you move capacity from place to place it affects not just a single product but multiple products, so there may be an impact on

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BOXARR

key performance indicators that are above the single product level,” says Alasdair. “For example recently there has been an earthquake in Japan and a fire in Spain. These potentially very disruptive supply chain incidents were solved within minutes where before it would have taken a couple of weeks to work out. So even just on the efficiency of the engineers and supplier managers there is an easy return on investment.” As the number of items on the supply chain increases - Airbus has four million and Boeing are looking at multiple-millions in the future - then the software has to be capable and adaptable. “I am really confident that complexity will not disappear over time; the problems we are dealing with are only going to get worse,” Alasdair thinks. In the aviation industry BOXARR™ currently has supply chain, systems engineering, process and project in the OEMs. But it can also see the benefit to large infrastructure projects such as the Al Maktoum Airport in Dubai, the largest in the world. As Alasdair says, “Any big project has a scheduling problem, a mammoth and increasingly dependent system and a system of systems, for example modelling the flows of baggage around the airport to be as efficient and as effective as

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Top: An Airbus A400M heavy lift military transport aircraft Above: A US Navy Boeing F18 Super Hornet fighter jet

possible, modelling the flows of people round the airport, the supply chain of parts for maintenance as well. Everything starts to be controlled by software - lighting, heating, procuring, entertainment, security and you need to know what those interdependencies are. It’s a massively complex task that we feel we could monitor.” The US Navy has adopted BOXARR™ for the design process of ships in the preliminary phase and it is expanding its usage in a variety of ways as it has many complex interdependent systems and supply chains. “Soon energy plants on the ships will be critical to every system on the ship in a way it wasn’t previously as the Navy upgrades its weapons,” says Rob. “This also makes the design, human resources and ultimately the operation of the ship very complex and that’s where BOXARR™ fits in.”

Understanding the complexity of airports The company sends experts to the client to train up a team who will manage the systems. The team will also develop the widgets that are necessary to make the web tool component carry out its tasks. BOXARR™ plans to consolidate its work in the defence and aerospace industries before branching out to oil and gas, construction and automobiles. The distributor in Dubai is Exponentia Solutions and the company is hoping to demonstrate the capability of their systems soon. “If I were running an airport I would want a tool that allowed me to model and understand the complexity of the airport,” Alasdair says. “So far no airport has this tool, but when the first operator adopts it they will make a huge leap forward in the planning and modelling, as well as the running, of the world’s largest airport.”

Further information www.boxarr.com

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Windhoist

The winds of change Utilising the potential for renewable energy sources is key to ensuring Morocco’s sustainable development. The construction of Africa’s largest wind project by the British company Windhoist is just an example of what is to come, says Greg Baker

he MENA region is often associated with fossil fuels in people’s minds, but in reality a push towards renewable resources is beginning to take shape. While infrastructure and construction are important to development, the region is doing well to maintain a focus on the worldwide trend towards more sustainable forms of energy. Morocco is the region’s largest energy importer, previously importing around 95 percent of its total needs. However, as the country progresses these power demands are continually being offset

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by new forms of energy generation that help the environment as well as provide huge development opportunities. The British company Windhoist has utilised one such opportunity by working alongside UK Trade & Investment (UKTI) to construct the largest wind project in Africa. The Tarfaya wind farm in Morocco was created in response to the award of a contract from Siemens to install 131 wind turbines in the coastal region of Tarfaya in the South West of the country. Positioned to utilise the strong Atlantic

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Windhoist

Local knowledge

winds, the site is spread over an area of 8,900 hectares and will provide power to hundreds of thousands of people. Windhoist expertise in the field meant the project was carried out as quickly as possible to maximise the potential from the wind energy on the south western Morocco coast. The company first mobilised to the site in September 2013 and installed the final turbine in August 2014, equivalent to an installation rate of 3.2wtg per week. The site surpassed Ethiopiaâ&#x20AC;&#x2122;s Ashegoda project, with its 84 turbines and 120-megawatt capacity, as the largest in the continent. The power generated from Tarfaya is expected to offset 900,000 tonnes of CO2 emissions per year, equivalent to CO2 emissions absorbed by 150 million trees.

International collaboration Originally an Ireland-based company, Windhoist has a long history of international collaboration, using their heavy carnage and mechanical services to erect wind turbines and push sustainable energy

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Early engagement with UKTI was key to Windhoistâ&#x20AC;&#x2122;s success. UKTI was able to reassure Windhoist that Morocco was a safe and stable country keen to strengthen its business links with the EU. The country has low barriers to trade to encourage foreign collaboration and enable companies such as Windhoist to utilise the opportunities on offer. The involvement of UKTI at the investigation stage also meant help was on hand to offer detailed engagement in contract negotiations and introduce Windhoist to local staff and expertise. Assistance from key local personnel is essential to a successful project, by offering local knowledge and the chance to deal with issues such as cultural and business differences quickly and effectively. This knowledge, combined with the integrated management of Windhoist itself, enabled the project to be carried out efficiently to deal with the growing energy issues in the country. Windhoist Maroc SARL has invested heavily in establishing its Moroccan entity which it will use both for potential future wind projects in Morocco and across North Africa. The site holds key personnel, trained local technicians and has a management facility in place to allow operations to continue to flourish in the region. With the use of energy becoming an ever important issue across the world, investment will continue to grow in the renewable sector. Windhoist Maroc is a key example that with the right management and UKTI assistance, British companies can successfully complete projects in Morocco and across the MENA region.

Further information www.windhoist.co.uk

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| Global Opportunity Middle East 2015

IMAGE: WWW.SHUTTERSTOCK.COM

forms all around the world. The company has regional entities in South Africa and Australia as well as its base in Casablanca, Morocco. This history of diversity and flexibility means Windhoist was well placed to deal with the challenges that came with this project, and its emphasis on quality and environmental protection and sustainability meant its aims matched perfectly with its Moroccan colleagues. More environmentally friendly forms of power will benefit all people across the globe, and opportunities created by this type of international collaboration are expected to increase in the coming years. The farm is part of a larger effort by the Moroccan government to tackle the rising electricity demand and reduce dependence on fossil fuels. There is already a smaller site around 100 kilometres to the east of Tarfaya at Akkhfennir, producing 100 MW from 60 turbines. Another project with similar goals is the Ouarzazate Solar Power Station, a 160-megawatt solar power plant set to become operational at the end of 2015. These plans should utilise the potential for renewable energy in the country and help the Moroccan government reach its objective of achieving 42 percent installed capacity from renewable energy by 2020.

COINS

The abundance of infrastructure projects in the Middle East creates opportunities across the construction industry, and construction software is a vital tool to ensure the smooth running of such vast operations, says Nigel Cope, co-founder of COINS

Supporting construction with software How does your software assist construction projects?

The COINS platform provides an integrated software solution to support the whole lifecycle of a construction project. The key processes are: Estimating and budgeting (although many customers use other standalone tools for this aspect of their work, and we simply import and manipulate the bill of quantities); procurement (the process by which suppliers are selected and orders placed); cost control (managing labour, materials, plant, subcontract and prelims costs against budget); commercial (managing the process of applications to the client, variations and subcontract liabilities); project (managing meeting, documents, submittals, transmittals, etc). Other key areas include human resource management, automated time and attendance, and plant or equipment management. Where feasible we deploy technologies such as mobile, biometrics and radio-frequency identification (RFID) to automate data collection and validation, to eliminate errors and duplication of effort. How was the Middle East identified as a potential area for growth?

Weâ&#x20AC;&#x2122;ve had customers working in the region for many years, such as Bachy Soletanche, Kier Construction, Laing Oâ&#x20AC;&#x2122;Rourke and Sisk. These are all companies that have been using COINS in other regions for 15 to 20 years. Our customers are generally very proficient in configuring the COINS platform for specific requirements, so we had not had a great deal of involvement directly in their Middle East operations. In late 2007 we decided to look more closely at the Middle East market, due to the phenomenal amount of construction that was taking place at that time and with a number of people who had previous experience of COINS taking employment in the

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region. We had not anticipated the recession, but some of the survivors definitely wanted to seize the opportunity to make themselves more efficient and more effective, so there continued to be a great deal of interest in the COINS platform beyond 2008. You reached double-digit growth in your second year, what do you think is the key to this success?

The double-digit growth was principally down to us signing agreements with new customers in the Middle East, the most notable being Habtoor Leighton Group (HLG), one of the leading diversified international contractors in the MENA region. HLG is now using the COINS platform for construction risk management (CRM), procurement, plant, finance and commercials across around 70 projects within 20 separate legal entities throughout the Middle East. Did you encounter any difficulties setting up in the region?

Setting up in the region was relatively straightforward, although there is a degree of bureaucracy and red tape. For compliance reasons we decided to establish a free zone business (100 percent owned by our UK Group) with an onshore entity as a branch office of the free zone business, where we deliver our professional services from. Some of the working practices encountered in the Middle East seem a little old-fashioned compared with Western best practice, for example multiple levels of approval for purchases, but the COINS platform is flexible enough to handle these. We did have to do some product localisation to handle things like advance payments and post-dated cheques, but this was relatively straightforward. We have a good mix of customers in Dubai. Around one third are British, but we have French and US-owned businesses, as well as a growing number of local companies.

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How is moving into the Middle East different to working in other countries around the world?

The COINS platform is being used in more than 40 countries around the globe, and of course this helped in moving into the Middle East because it meant we already had a number of local references. But the Middle East does have its own challenges, principally those around working practices being what many people would see as overly bureaucratic, or more complex than necessary. Last year COINS won the Queen’s Award for International Trade. Do you have any plans to move into other countries in the region other than Dubai?

We are working with customers all over the region, including Baku in Azerbaijan and Istanbul in Turkey. We are starting to achieve ‘critical mass’ with a growing customer base in Qatar, so it is inevitable that we will open an office there in due course. Trading with customers in Qatar from our UAE base means that payments are subject to withholding tax, so establishing an office in Qatar would achieve an immediate saving of around 10 percent of revenues. What construction projects used COINS software in Dubai?

Al Naboodah Laing O’Rourke used the COINS

NIGEL COPE Nigel was co-founder of COINS in 1986 with Chairman, Larry Sullivan. As CEO of Emerging Markets, he leads the Middle East, Australia, and Asia Pacific areas of COINS. Nigel is often the driving force behind new solutions and ventures, such as the Built Environment Solutions Team (BEST) and COINS Electronic Trading Community (COINS-etc). Nigel is a wellrespected figure in Construction IT. He has been a member of the Management Board of Construct IT for Business since 2003, and is a member of the IT & Controls Committee at CIBSE.

COINS

platform to support the engineering, procurement and construction of the third terminal substructure at Dubai Airport, with a peak workforce of 10,000. The complete structure is approximately one kilometre long and 100 metres wide. HLG is using the COINS platform on its various projects in Dubai, including the construction of Al Habtoor City, which stands on the site of one of Dubai’s oldest hotels, the Metropolitan on Sheikh Zayed Road. We recently started a project with developer Meydan Sobha and its delivery partner MS Construction to introduce the COINS platform to manage the development, construction, sales and customer care at Mohammed Bin Rashid Al Maktoum City - District One, which has 47 million square feet of low-density real estate, surrounded by over 600 acres of natural surroundings. Elsewhere in the region, the COINS platform is used by Kier Construction working in partnership with the Saudi Comedat Company Limited (SCCL), to develop the Al Jalamid phosphate deposit on behalf of Ma’aden, the Saudi Arabian state owned Mining and Mineral holding company. Our initial work has been with contractors that work on civil engineering and commercial construction projects, but we are now moving into the residential development arena as well. COINS was involved in opening an education centre for children with learning disabilities in Dubai. How important is it for business to connect with the local community?

The COINS Foundation is part of what we do, not just an afterthought. So when we formed the business in UAE, it was inevitable that we would be seeking for opportunities to ‘put something back’ into the local community. Hence the creation of the Widad Center in Al Satwa, Dubai It is a truly unique environment committed to the principles of social inclusion and environmental responsibility, all working towards changing education in Dubai for the betterment of society where all children are included, including those with learning difficulties. At COINS, corporate social responsibility (CSR) is not simply a tick in the credibility box; we see it as our duty to create value in the local communities in which our businesses operate. We were all born into a comparatively privileged position, and it’s right and proper that we should do something to make a difference for those less fortunate. The reaction of our customers and the support they offer has been amazing. For example one of my good friends and customer, an Emirati, has provided his services as local sponsor for Widad Center free of charge, another recently organised the donation of two brand new gas cookers. So we are now at the point where the children at Widad Center can fulfil the corporate cookie orders we have secured from customers and contacts, as part of Widad Center’s journey towards financial independence and sustainability.

Further information www.coins-global.com

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Issue 01

| Global Opportunity Middle East 2015

Law2020

International legal training As commercial relationships become more global, legal training needs to have a strong international element, so high-quality courses based on realistic case studies, practical exercises and group discussion are vital, say Michael Twomey and Malcolm Dowden from Law2020

nce, formal legal training involved no more than learning the black letter law of a single jurisdiction. Skills such as legal drafting or writing effective advice were picked up informally, even haphazardly, on the job. Globalisation of clientsâ&#x20AC;&#x2122; deals and commercial relationships now means that training for General Counsel and private practice lawyers requires a strong international element. It must promote efficiency and control of legal costs, together with a practical appreciation of the provisions required to make obligations meaningful across jurisdictions.

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Law2020 specialise in international legal training. As lead training consultants to the Law Society of England and Wales, principal course designers and presenters Michael Twomey and Malcolm Dowden have delivered high-quality courses to practising lawyers, government departments and contract managers around the world. In 2013-14 alone, they presented tailored courses in Dubai, Bahrain, India, Singapore, Malaysia, Nigeria, Kenya, Uganda, Russia, the UK, Netherlands and the Republic of Ireland, learning valuable lessons along the way.

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| Exploring key issues Michael Twomey trained at City of London law firm Slaughter & May and has more than 20 years’ experience of legal training and education. He explained, “When designing our March 2015 course on international joint ventures and acquisitions for Dubai, I began with the need to explore the parties’ commercial objectives, and then factored in the very different perspectives that their lawyers will bring to the deal. Practitioners brought up in a common law environment, such as England or Australia, must understand the different approaches to issues such as duties of good faith or the effect of force majeure events that prevail in civil code jurisdictions. Our sessions are designed to identify and explore those key issues so that practitioners from different starting points are better equipped to work together and to meet their clients’ needs.” Law2020’s formula for effective international legal training depends on extremely realistic case studies, practical exercises and group discussion. Malcolm Dowden attributes consistently excellent feedback to the immediate practical relevance of those case studies, explaining that, “We cannot be completely immersed in the laws of every jurisdiction, so we spend a lot of time working with experienced local practitioners. We listen, discuss, and then we build local perspectives and advice into our training materials. Whenever possible, we include expert panel sessions so that delegates can hear directly how key elements of our case study would be approached in practice. For Dubai, we have excellent local contacts so the panel sessions really do add value to the training sessions.” Dubai’s move towards mandatory continuous professional development (CPD) is in line with developments in other key global jurisdictions such as Singapore. The main benefit of mandatory training is that it links entitlement to practice with a requirement to keep up to speed with legal and commercial developments. Properly implemented and rigorously monitored, mandatory CPD provides clients with an assurance of quality and allows law firms to develop a structured approach to the continuous improvement of its lawyers and legal processes. However, mandatory regimes can all-too easily degenerate into mere tick-box exercises. In England and Wales the Solicitors Regulation Authority (SRA) has abandoned accreditation and any mandatory requirement for training hours. From April 2015,

l International legal training experts Law2020 returned to Dubai on 25 and 26 March 2015 with a two day workshop on International Joint Ventures and Acquisitions. Director of Law Programmes, Michael Twomey said, “It was great to be back after three successful visits in 2014. Later this year, we look forward to returning to Dubai to deliver our improved and updated course on Contract Management.”

Law2020

MICHAEL TWOMEY Michael specialises in designing bespoke training sessions and programmes in close liaison with practitioners and know-how professionals. He has 20 years’ experience in delivering corporate and commercial training courses to most of the leading firms in the UK and beyond.

MALCOLM DOWDEN Malcolm Dowden is a UK based solicitor, consultant and environmental law expert. He is the author of EG Books’ Climate Change – Law, Policy and Practice (2008). A frequent commentator on green legal issues, Malcolm has contributed to Carbon Disclosure Project reports on climate change adaptation and to a major London Climate Change Partnership report on ‘green procurement’.

instead of mandatory hours, lawyers in England and Wales must determine the learning and development they need to deliver a competent service, and each year sign a statement of competence.

Practical training Whether practising in a jurisdiction with mandatory CPD requirements or under a ‘light touch’ approach, such as the SRA’s in England and Wales, Law2020’s view is that legal training is most effective when it is driven by the business planning process. Carefully structured and properly focused legal training enables practitioners to provide a more efficient and risk-sensitive service to existing clients, and also to acquire the knowledge, understanding and skills required to extend their professional reach. Practical training can be the key both to efficiency and to winning new work. Malcolm Dowden explained, “When we design courses for individual firms or companies, or for groups from across the profession, we draw on our own practical experience, which in my case is as consultant to international law firm Charles Russell Speechlys LLP. We work this into our discussions with local specialists to create up to date, realistic and challenging case studies. Our training scenarios closely reflect the work that delegates are likely to have on their desks the following day. Then to achieve ‘just in time’ learning to reinforce the live courses, we offer key elements of the content as brief e-learning modules. At every stage, our priority is to help lawyers to provide the best possible service to their clients.”

Further information www.outcome.training

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Issue 01

| Global Opportunity Middle East 2015

BEBD

A culture of innovation and openness helps Bahrain diversify its economy, says Vivian Jamal, Executive Director – Business Development Bahrain Economic Development Board (EDB)

Gateway for the Gulf economies

ahrain has been one of the Gulf’s most important commercial crossroads for over 4,000 years. The word Bahrain means ‘two seas’ in Arabic and as a strategically placed collection of islands in the busy Arabian Gulf, the name reflects the continued importance of the country’s geographical position to its economic development. This openness to the world and strategic geographical location have helped to make Bahrain a natural gateway to the Gulf economies, the economy of which is now worth over $1.6 trillion. Around 8,000 Britons work in Bahrain, making it one of the largest Western communities of expatriates in the region with nearly 100 UK companies present in Bahrain. British businesses have been particularly successful in the Kingdom’s professional and financial services market as well as in manufacturing.

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Leading UK companies that have established offices or facilities in Bahrain include British American Tobacco, Unilever, BUPA, Charles Russell, Deloitte, Ernst & Young, Cluttons, LLP, HSBC, McLaren Automotive, Mott Macdonald, Norton Rose, PricewaterhouseCoopers, Royal Sun Alliance, Standard Chartered, SNR Denton, Tullet Prebon, Trowers & Hamlins, Atkins, Davies and Mills, Trueform and BAE Systems. While much recent attention on the region has focused understandably on the volatility in oil prices, the main underlying drivers of economic growth have remained unchanged. The young, growing and increasingly educated population, the impact of economic diversification across the region and the greater integration of the Gulf within global trade, travel and capital flows will continue to drive growth in the region now and in the longer term. Within this market, Bahrain is one of the freest

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VIVIAN JAMAL Vivian Jamal currently heads the Business Development Division of the Bahrain Economic Development Board. Her role includes running a network of international offices responsible for promoting and attracting investments into the Kingdom. Other positions she currently holds by special appointment are; Board Director of Silah Gulf, the national call centre company; Member of the National Committee for the Implementation of the USBahrain Free Trade Agreement; Member of the National Oil & Gas Committee. Prior to that, Ms. Jamal held the position of Global Communications and Marketing Director for TAIB Bank E.C. and its thirteen subsidiaries worldwide.

BEBD

markets in the region, allowing businesses to operate with minimal red tape and foreign ownership restrictions. In fact, the Kingdom was recently ranked the 18th most economically free nation in the world and the freest in the Middle East, according to the Index of Economic Freedom published by the Heritage Institute, an international think tank. This liberal environment is rooted in a long history of economic and social openness. Bahrain’s history as a trading centre has meant the Kingdom has always been open to the world through both trade and technology. Likewise, this openness to the world and the long history of education in the Kingdom has helped to foster a culture of innovation. In the 1930s, Bahrain was the first country in the GCC to discover oil and in the coming decades it was also the first to begin the process of diversifying the economy away from hydrocarbon revenues. In recent years, these efforts have intensified and since the turn of the century Bahrain has made impressive headway in terms of diversifying its economy. Oil represents only about a fifth of Bahrain’s GDP – down from 44% in 2000. In structural terms, the economy continues to be fuelled forward by its favourable demographic dynamics, its strong commitment to diversification, and its connectivity to a rapidly growing region. As a result of these factors, we are projecting nonoil growth of around 4.5% in 2015, in line with the estimated non-oil growth of 4.6% in 2014, and we expect this momentum to continue in the medium to longer term. Alongside this positive near-term picture, Bahrain has a number of competitive advantages that make it essentially unique in the region in what it offers. The key tenets of the Bahraini value proposition are its established human capital advantage, its liberal regulations, and its regional connectivity underpinned by a millennia-long tradition and culture of openness. The highly skilled bilingual local workforce offers a particular strength for businesses looking to put in place a significant operation in skill-intensive industries, even more so when Arabic language content is required. Likewise, Bahrain benefits from a strategic geographical location within the region, with easy access to Saudi Arabia in particular via a 25km causeway and excellent sea and air connections elsewhere. The Kingdom also offers a mature, tried and tested regulatory environment and a highly competitive value proposition given its low operating costs and liberal business environment. And all this in a unified jurisdiction embedded in the broader GCC economy. With these strengths and the favourable economic fundamentals from which the region benefits, Bahrain’s prospects are strong in both the near term and for the future.

Further information www.bahrainedb.com

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| Global Opportunity Middle East 2015

Serapid

| Movement for the future Serapid is a horizontal and vertical motion lifting company that has been involved in some of the most unique and creative moving features in the world, says Iain Forbester, Business Development Director for Serapid

or more than 40 years Serapid has been using its rigid chain actuators to move large loads over long distances. More recently it has earned an enviable reputation within the architectural sector for providing solutions to introduce movement in to buildings, overcoming a number of hitherto unsolvable problems. At the heart of this ability is the fusion of Serapidâ&#x20AC;&#x2122;s unique rigid chain technology, moulded with 40 yearsâ&#x20AC;&#x2122; experience in linear motion systems. This allows Serapid to provide unique solutions to a myriad of

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architectural desires allowing the introduction of movement within structures, from the simple ability to provide a large capacity lift to allowing movement of complete rooms. Serapid has provided catwalk systems within both the prestigious Dubai Mall and the Fashion Show Mall in Las Vegas. Each of these systems allows catwalks to rise seamlessly from the floors of shopping malls. The Fashion Show lift in Vegas is impressive enough, but the Catwalk in Dubai demonstrates the scale of what Serapid is able to deliver. The Catwalk comprises of five lifts, normally hidden as part of the floor in the mall. At the push of a button a 21 metre catwalk is raised from the floor. Not only a static raised platform, it also features a five metre diameter revolve that can be used to display products at their best. The four catwalk lifts can be moved independently allowing the flexibility of either a flat floor or a stepped arrangement. The Catwalk is covered in LED screens allowing video to be projected across its entire surface. With a floor area of 56 metres and a lifting capacity of 56 tonnes and three levels, the fifth lift rises to allow models to come up from changing rooms under the mall to emerge on to the catwalk through a room lined with LED screens. Serapid LinkLift technology allows all of this to be done while utilising a minimum amount of space,

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| as all the lifting systems sit in shallow pits located directly below the lifts. When it comes to arenas and sports stadia, Serapid technology has also played its part. In the recently opened Singapore Sports Hub (Singapore’s national stadium) Serapid designed and supplied the lifting technology for a travelling lifter that circles the stadium under the stands and lifts large sections of concourse into place and, as part of the same movement, locks them into position. This technology allows the stadium seating to be reconfigured to provide ideal layouts for athletics, football, rugby, cricket and concerts. The flexible seating enhances the usability of the stadium, which has to accommodate a wide range of events, and gives patrons the best possible user experience. The machine lifts 44 concourse sections, which weigh up to 110 tonnes, and accurately pins them in to place. The sections impose a highly eccentric load on the machine but the special characteristics of Serapid’s LinkLifts act as variable length structural steel columns. The 55 tonne machine drives itself, on a cushion of air, round a trench running under the seating concourses over a distance of some six hundred metres. “Building Dynamics was a natural move for Serapid as it brought together the company’s rigid chain technology with the wealth of design knowledge using the technology across a broad range of industries,” says Iain Forbester, Business Development Director for Serapid Building Dynamics. “Serapid traditionally had a lot of business in theatres and opera houses as well as conference and congress centres, and this brought the company into contact with leading architects globally. It seemed a natural progression to expand the company’s technology to architects working on other types of buildings and applications. Serapid approaches every project with an open mind and, working closely with our clients, tries to find solutions to the most difficult of problems.”

Further information www.serapid.com

IAIN FORBESTER Iain Forbester graduated from London University with a degree in nuclear engineering and started work at Rolls Royce. After 12 years, he left the nuclear industry and for 4 years worked in engineering consultancy. This was followed by a period of general management in firms concerned with the manufacture of bulk handling and then lifts. In 2000 Iain joined Waagner Biro Stage Systems as MD of their UK division. Late in 2004 he joined Serapid as a Director and has spent the last 11 years involved in running the UK office and working on business development worldwide. Iain’s career has given him a deep knowledge of engineering across a wide range of industries.

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Serapid

DAVID SAXBY, ARCHITECT ‘I don’t remember how we came across Serapid; possibly when hunting around for a technical precedent for what we wanted to propose, which existed, as far as we knew, only in theatre staging systems. What the Serapid team brought first was an incredible openness to taking on what, to most people, would have sounded like an impossible challenge: to make a piece of public space move. Where we would have expected every other company on earth to say ‘no, it’s not possible’, Serapid simply brought solid technical expertise and immediately set about demonstrating how it could not only be made possible, but completely plausible and reliable.’

INNOVATIVE WORK Serapid spiced up the visitor experience on The Willis (formerly the Sears) Tower in Chicago by constructing the Skydeck on the103rd floor. Glass-viewing capsules protrude from the wall of the building allowing visitors to view Chicago from a glass box, giving a dizzying view down to the street below their feet (right). l When Royal Caribbean Cruise Liners wished to introduce a ‘wow’ factor in the vast Royal Promenade in its latest and largest class of ships, Serapid technology was there to provide a unique drive system that allows a 40 tonne cocktail bar to travel serenely up and down between the Royal Promenade and Central Park, a distance of some 10 metres, carrying 35 passengers, staff and a fully serviced bar. l By 2000 the Campo Pequeno, the historic bullring in Lisbon, had fallen into disrepair. Serapid was involved in converting the stadium into a full arena by fitting a roof. Serapid supplied its rigid chain LinearBeam actuators to operate eight roof segments which, when retracted, provide a 36 metre diameter opening in the centre of the roof allowing natural light and fresh air in to the arena. l In one of the most striking buildings in Paris, Serapid has supplied a unique solution for flexibility of use in the auditorium within the Fondation Louis Vuitton. Serapid designed and constructed a series of combined lifts and rotating beams that enable the auditorium to be reconfigured from a flat timber floor to a raked seating arrangement comprising 320 seats. This is done at the push of a button by a single operator in less than 15 minutes. l

Issue 01

| Global Opportunity Middle East 2015

Innesco

Communicating value Brand awareness and market perceptions are crucial to any major property and retail project’s success. Expert marketing agency Innesco utilises the full power of brand, marketing and communication to add considerable value to such projects across the region, says founder and MD Dan Innes

here are several key factors that decide the success of a property or retail project. Planning, construction and investment are essential, but just as significant is the communicative journey of the particular development. Managing perceptions and generating understanding can play a crucial role in the outcome of a project, and add considerable commercial value. In the Middle East this can be particularly beneficial; handling communications can bring international support and recognition to even heavily localised projects. INNESCO is a British-HQ’d marketing and communications agency with emphasis on real estate and the built environment. The focus stems from founder Dan Innes who originally trained in Town Planning and ensures the company has expertise from the earliest stages of property development onwards. The aim of the company is simple: to unlock a project’s potential through a deep and thorough understanding of the development’s aims and objectives. One of the most high-profile projects for INNESCO was managing the B2B communications for Westfield Stratford City in London. This project gained worldwide exposure three years ahead

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Above: The Galleria on Al Maryah Island, Abu Dhabi

of launch, through its opening and the London Olympics. It was a huge project – the largest urban mall in Europe - and INNESCO managed the transferral of the brand culture from the earlier Westfield mall in West London. “We wanted to present Westfield as the most dynamic and innovative retail centre in the world,” says Dan Innes. “A key aspect was projecting Westfield as the key delivery partner for international retailers entering the UK. We promoted Westfield’s now-famous attention to detail in order to maximise rental values, pushing key messages at important milestones in its construction and development programme.” The project was a runaway success, with INNESCO driving hundreds of competing media opportunities, and generating circa $10 million USD in PR value in the final 12 months up to launch alone. Subsequently, INNESCO supported Westfield with the remainder of its European portfolio of schemes and developments, including Westfield London. This cemented Westfield’s position as the leading player in the retail construction industry

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Innesco

DAN INNES Dan is one of the sector’s most experienced marketeers. He has worked on well over 150 major property schemes, developments and events across the globe, including Dubai, Abu Dhabi, Egypt, UK, France, Norway, Sweden, Russia and Brazil. He and the wider INNESCO business have gained the trust of numerous clients including AXA, Blackrock, CBREi, Gulf Related, Henderson/TH Real Estate, Hammerson, Hermes, Land Securities, Bouygues Development, Pradera, IKEA Shopping Centres Russia, British Land, Ivanhoe Cambridge, Westfield, Palm Hills Developments, REM-Sellar Properties, Tishman Speyer, and Unibail Rodamco. Today the INNESCO portfolio includes some of the world’s most respected real estate businesses, with a phenomenal network across the world. Dan also sits on the International Council of Shopping Centres marketing committee.

and one of the strongest retail property brands in the world.

Work in the Middle East By definition these Westfield sites are international in nature, drawing a new generation of savvy customers from all over the world and meeting their expectations for the best shopping and dining experience. INNESCO is keen to use this expertise to expand its work abroad and particularly in the Middle East. The success of Westfield has given foreign organisations confidence that a London-based marcomms agency can handle their communication journey. One of INNESCO’s major Middle Eastern projects is the luxury Galleria shopping hub on Al Maryah island in Abu Dhabi. Working alongside the related and Gulf Capital joint venture - Gulf Related INNESCO was appointed to launch the first phase of development to international audiences, and through marketing and PR has generated well over $3 million USD worth of coverage. INNESCO continues to support the leasing and marketing teams on key announcements, events and content marketing. Raising the international profile of schemes like The Galleria is crucial to bringing valuable retail occupiers to these projects and, as an international

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organisation, this is what INNESCO can provide. By managing the international communication of the project and raising awareness around the world, INNESCO played an important part in Macy’s and Bloomingdale’s agreeing to open department stores at the site. This was a hugely significant step as the store will be Macy’s first store outside of the U.S. “It was a fascinating project for the team. The key is awareness and promotion in the right regions, and understanding how media is consumed in the global occupier markets. We provided some important consultancy advice and generated some great coverage, including extensive coverage in Centros Commerciales, Shopping Centers Today, Economia Immobiliare and the Financial Times, both newspaper and online, for the Macy’s deal - just a small indication of the global coverage we can bring,” explains Dan Innes. “As an international, multi-lingual agency, we also deliver best-in-class brand and marketing content – completing the campaign and augmenting the brand.” Integration is a key aspect of how INNESCO unlocks latent value, with completed work in the UK, France, Germany, Sweden, Russia and Poland as well as Egypt, Dubai and Abu Dhabi. INNESCO most recently supported the RLI Global Connect conference in Dubai, notably using social media to raise awareness to international markets. The confidence gained through this and other recent Middle Eastern projects means INNESCO is eager to push on. The Middle East region is a key and growing market for major real estate projects, and INNESCO is well placed not only to develop brand equity and awareness for these projects to the rest of the world, but also to manage the market’s response to each one. Brand, marketing and communications remain the most powerful tools for unlocking the value and raising awareness of major real estate projects, and with large projects such as The Galleria in their resumé INNESCO is confident of managing any progressive project wherever it may be in the world.

Further information www.innesco.co.uk

Issue 01

| Global Opportunity Middle East 2015

Egypt

Growing markets A

lthough Egypt has suffered from unrest and disruption recently, with two revolutions in three years, the country is making huge strides in its road to stability and economic recovery with an ambitious programme of initiatives designed to put it back on the map. With the third largest economy in the Middle East and the largest population in the Arab world, it is hoped that this programme, along with democratic developments, will create a climate that will attract foreign investment and allow this historic country to regain its status in the world. In the construction sector alone Egypt has embarked on a massive programme that will see the creation of 44 new cities including a new administrative capital by 2052. This ambitious

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project has an annual budget of US$850 million as part of the National Strategic Plan for urban development. The Suez Canal Regional Development Project is worth an estimated US$20 billion over 15 years, and will include ports and logistics areas, new industrial zones, new transport infrastructure including railways and tunnels under the Suez Canal, as well as power generation and waste plants. A new airport city is also being planned alongside the Cairo airport on a 10 million square metre site, with investments worth US$11 billion. In addition, the government is addressing the need for low cost housing and there are plans in place to upgrade the countryâ&#x20AC;&#x2122;s transport systems to include port upgrades and improvements to railways

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Egypt

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Moving on from its disruptive past, Egypt is on the road to stability and economic recovery with an ambitious programme of investment initiatives, says Judith Baker and airports. As a result a number of sub-sectors will be involved, including those in building material, construction equipment, architectural activities, tiles, electrical and mechanical works and urban planning and landscaping.

Improving education With 50 million out of a population of 90 million under the age of 25, education is a key issue for Egypt with the current population growing at a rate of 2.3 percent. Plans include improving early childhood care, the provision of ICT education at all levels and tertiary and work-place training. Schools and universities are on the increase in both public and private sectors. Egypt has private public partnerships for schooling and also has private universities for

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technical and vocational training. Schools are being upgraded at the rate of 10 percent each year, with modern educational facilities being introduced including computers and multimedia laboratories. Government spending on education is 11.9 percent with a forecast of 10 percent increase over the coming few years. As in many countries, the British education system is highly respected in Egypt and it is a growing market with a multitude of opportunities for UK Companies. These include vocational training across a variety of industrial sectors and soft skills programmes for petroleum, geologists and management skills. As English continues to be the business language in Egypt, and the main language in the tourism sector, English language skills (ELS) are of key importance.

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Egypt

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ICT strategy In the ICT sector Egypt continues to be a major player and, even given its recent situation, global electronics manufacturer Samsung opened its first factory in Egypt with a view to turning Egypt into a regional hub for the manufacture and export of Samsung products to all Middle East markets. The country hopes this will encourage other companies to invest and expand the economy. The Ministry of Communications and Information Technology (MCIT) announced the launch of Egypt’s national ICT strategy for 2013-2017 in April 2013. The strategy aims to attract foreign investment, create jobs and establish Egypt as an ICT hub in North Africa. By 2018 the MCIT expects to have increased the sector’s output and created 100,000

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jobs. A new 42,000 metre technology centre in Cairo is being developed and it is hoped that foreign companies will be encouraged to invest here. Opportunities exist in sub sectors such as fibre optic cables, call centres, equipment/network centres, GSM solutions and applications, Voice over Internet Protocol (VoIP), media convergence, Triple Play, WiFi, Wi-Max/Wireless networks and solutions. The life sciences business represents one of Egypt’s fastest growing industries. Because of its growing population, a number of opportunities exist as Egypt opens new hospitals and reforms its healthcare system. The Egyptian pharmaceutical industry is the second largest in the Middle East and the largest in North Africa. It exports to many Arab and African countries through its international trade

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Egypt

‘The Suez Canal Regional Development Project is worth an estimated US$20 billion over 15 years, and will include ports and logistics areas, new industrial zones, new transport infrastructure including railways and tunnels under the Suez Canal, as well as power generation and waste plants.’ machinery and services. The provision of health, safety and the environment (HSE) services, training and capacity building services is also on the rise. Opportunities also exist in exploration and field development, operations and maintenance training and sustainable development and implementing international standards in health safety and environment. Elsewhere, the power sector is attracting international interest. The governments of Saudi Arabia and Egypt recently announced an international tender for their long-awaited highvoltage direct-current (HVDC) interconnection. This includes land as well as underwater cables through the Aqaba Gulf. Other developments include Orascom which is developing a 2,000MW coal power plant in ElHamrawein port by the Red Sea coast at the CAPEX value of US$2,500 million. 2,250MW Bani Sweif CCGT is announced as a private steam power plant at the CAPEX of US$1500 million as well as 250MW Dariut CCGT at the CAPEX of US$2,200 million. Also located in Dairut there is the new Qena Steam power plant at the CAPEX of US$1,550 million.

Retail sector

agreements. UK products and services are held in high regard. Large UK investors such as AstraZeneca and GSK are already in the market. Opportunities exist for the provision of medical equipment and devices including X-ray, and healthcare management services.

Oil and gas The oil and gas sector is the fastest growing economic sector in Egypt. Egypt is a significant market for UK exporters of oil and gas products and services due to the current and anticipated high levels of investment in the sector. Opportunities in the sector lie in most aspects of activities: onshore and offshore exploration, field development

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As it recovers from recent instabilities, Egypt is seeing a slow but steady growth in its retail sector. With a growing and increasingly affluent middle class and a growing population in general, the consumer base is embracing 21st century retail concepts with a number of outlets opening and many more planned. UK brands are valued highly with Marks & Spencer, Monsoon, Evans, Next, BHS, Hamley’s, Topman Topshop, Ted Baker, Karen Millen and Mothercare all to be found in Egyptian malls. Opportunities exist in the retail sector for department stores, over the counter pharmaceuticals and the consumer electronics market. With easy access to markets in the Arabian Gulf, the Levant, North Africa and Sub-Saharan Africa and Europe, Egypt looks set to build on its strong position. As it moves on from its disruptive past, the country continues to attract foreign interest and investment in a host of sectors.

Further information commercial.cairo@fco.gov.uk

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| Global Opportunity Middle East 2015

Jordan

The British feature film Kajaki is a sign that with support from UKTI and local authorities, the creative industries can blossom in Jordan

Leading role

thriving film industry is perhaps not something that springs to mind when considering the Middle East. However, when His Majesty King Abdullah II of Jordan recently told UKTI that he was interested in developing the country as a centre of film and culture in the region, one film specifically was set to benefit enormously from such an investment. Kajaki is a Britsh feature film about a small unit of British soldiers posted to Afghanistan in 2006. Pukka Films, which produced the movie, had originally considered filming in Morocco or South Africa but the influence of UKTI persuaded them that Jordan would provide the best setting, opportunities and creative space for a successful production. One of the executive producers, Alec Mackenzie, had worked in Jordan in the past and introduced the team to his contacts, which included the Head of UKTI in the capital, Amman. UKTI were aware of His Majesty King Abdullah II’s enthusiasm for film, and as such went about introducing Pukka Films to senior officials at the Royal Court. This was crucial in allowing the creative team access to as many opportunities as possible, as well as smoothing the process of bringing staff and equipment to the country. Furthermore, UKTI put the company in touch with local financial backers and Jaguar Land Rover, which provided vehicles for use while filming. Significantly, through Alec’s contacts and those of UKTI, an agreement was made with the Jordanian Armed Forces who allowed site access

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and footage of Black Hawk helicopters to be used in the film. This involvement alone saved Pukka Films around £300,000 in production costs. “Securing His Majesty’s support was a real game changer, ensuring that people were keen to help and speeding up response times when we made requests,” explains Gareth Ellis-Unwin, Executive Producer of Kajaki. Gareth also has no doubt on the impact UKTI had in allowing the company access to these opportunities. “UKTI took a genuine interest in our project and, because they knew the local culture and how things work, their involvement helped us to gain and keep momentum throughout filming. It was a great advantage to be able to present ourselves not just as a foreign filmmaker on location, but as having the backing of the British government.” The film itself also serves an important purpose. It depicts the true story of an incident involving a group of soldiers, mostly from the British Army’s 3rd Battalion and The Parachute Regiment (3 Para), who were trapped in a minefield while stationed at the Kajaki Dam in Afghanistan in 2006. As a 3-man patrol set out to disable a Taliban roadblock, a landmine left over from a previous conflict with Russia detonated and injured one of the team.

Positive contribution The film tells the story of the heroic rescue mission, characterised by bravery, selflessness and loss. “Based on a true story, its purpose is to celebrate and cherish the bravery of our troops,” says Gareth.

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Jordan

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country has a long tradition of stability and has played an active part in seeking peace in the region, being one of only two Arab nations to make peace with Israel. Jordan is always keen to work with British organisations, and has a number of trade agreements with the European Union (EU). The country has no oil of its own and therefore has much more of a diverse economy than many of its neighbours, relying mainly on services, tourism and foreign aid. With a young and urban-focused population, the creative sector may be one that is about to grow.

Creative possibilities

“The film is probably the first that deals with British Armed Forces post-World War II.” All revenue from the film’s premiere and prerelease screenings will go to military charities, as well as a portion of the profits from the film’s subsequent release. “It has been important to us to show how film makes a positive contribution to society, not just in providing entertainment but on a deeper level too. UKTI has been a big part of allowing us to do this.” Of all the Middle Eastern countries, Jordan is well placed to develop its cultural industries. The

Below: Scene from Kajaki

Gareth is keen that the benefits of this project are felt both ways and is supportive of His Majesty’s plans to develop film in the region. Indeed in June 2014 he travelled back to Jordan to speak at an event hosted by the British Ambassador as part of the UKTI’s GREAT campaign. In his address to about 1200 guests he drew attention to Kajaki and stressed the important role that the creative industries play in the British economy, explaining how Jordan could follow a similar path. Following on from this UKTI encouraged Gareth to write a white paper on the topic for the Jordanians to consider. UKTI ensured that the paper reached the right people in the Royal Court, further strengthening the link between the UK and Jordanian film industries. “Speaking at the Ambassador’s Residence allowed me to highlight the immense financial value that the creative industries bring to Britain,” says Gareth. “I fully endorse His Majesty’s plans to bolster Jordan’s film industry, and I hope that my white paper will be useful in achieving his aims.” Without UKTI this unique and beneficial relationship may never have come to fruition, and the project also signals the ability for foreign agreements and partnerships to be developed outside of conventional industries. “UKTI came to meet our production teams in person, sometimes with the Ambassador; they shared with us political insights and commercial knowledge that only come with years of experience in the market, and they facilitated important introductions for us,” adds Gareth. In the end, the main importance of the project is the story it tells about the heroics of the soldiers and the sacrifice they made for their country. Film is a powerful tool in delivering these stories to the world, and UKTI and Pukka Films are proud of the successful project they have put together. Kajaki is a film about bravery and loss, but the story behind the film coming together is one of hope that a burgeoning creative industry can develop between the UK and Jordan, as well as the premise that film itself can continue to deliver a way of bringing together cultures and ideas.

Further information Tel: +962 6 5909220 Email: uktiamman@fco.gov.uk

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Southern Iraq

The opening of new oil fields in Southern Iraq is creating a wealth of opportunities for British companies

Opening of opportunities in Iraqi oil fields I raq produces almost 3.4 million barrels of oil per day from the Iraqi Kurdistan region, the semiautonomous northeast region of the country governed by the Kurdistan Regional Government (KRG). But despite this impressive figure, Iraq’s oil production has actually grown at slower rate than it expected, which the country puts down to infrastructure bottlenecks in the south, supply disruptions in the north and delays in awarding contracts. Consequently work is increasing on developing the southern oil fields at Al-Amara and Al-noor oil fields in Maysan province, Nasryaa and Al-rfai oil fields in Dhi Qar province and the Al-kafal oil field in Kurbla’s province. The work is being done directly by the Iraqi Oil Ministry in Baghdad and the South Oil company, which is managing the project, is actively looking for British companies to participate. Over 32 foreign companies are registered with the Iraqi oil ministry, major international companies involved in oil fields, ports, pipelines and refineries and many of these are already active in the region. The Rumaila oil field is one of the largest oil fields in the world. It is located near Basra and about 20 miles from the Kuwaiti border in southern Iraq, spread over a 1,800km² area. In the southern oil fields, BP and CNPC are working at Rumaila, producing 1430 barrels of oil per day exported through Basra port and Khor al-Amaya port. Exxon Mobil, Petrochina and Shell are working at WestQurna, Eni and Occidental at Zubair and Petronas and Japex at Garraf with many other foreign companies involved at various Southern oil fields. The total production capacity in the Southern oil fields is 3,320 barrels per day. The current business environment is that of a good working relationship between the South Oil

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Company and the staff of foreign companies working in the region. Security in Southern Iraq is generally regarded as good, especially in Basra, and there are no threats to foreign companies in the region. Security has been an issue in the past in the North Central region of Iraq and this has made some foreign companies cautious. However, the Southern region and Basra in particular have not been affected, due to the high presence of safety and security in the area, and work by foreign companies has continued without disruption with safety of workers maintained as a priority. The South Oil Company is keen to see more involvement from UK companies and is urging them to work in the new projects in Basra and the southern region of Iraq. The Company is able to provide all legal facilities to any company interested in working in the province. British companies who want to become involved in the region will need to provide a certificate from the Foreign Office, a financial statement and financial accounts for the last three years, a brief history of their company and a Memorandum of Association, a description of any similar work already carried out and references. British companies interested in working in Basra should also attend a workshop run by the Iraq Oil Ministry and the South Oil Company. Any British company interested in the projects should contact the licensing contracts office in the Iraqi Oil Ministry in Baghdad.

Further information Mustafa Al- Azawi, Trade& Investment Adviser (Oil & Gas Specialised) Mustafa.alazawi@fco.gov.uk

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Oman

Traditional progress One of the more traditional countries in the Middle East region, Oman kept to itself for most of the 20th century. Now however, opportunities are presenting themselves as the country looks to diversify its economy and increase trade with the wider world

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The Omani government has set itself a number of economic goals to help support its development. These are embodied by the ‘Vision 2020’ project, which is a number of proposals launched in 1995 to be completed by 2020. One of these is the process of ‘Omanisation’, which is a conscious effort to replace migrant workers with Omani nationals. This is to deal with the dramatic increase in the expatriate community in recent years which, although signalling Oman’s growing international relevance, has had a knock on effect on the local work force. In 2010 there were 816,000 expatriates residing in Oman, whereas in 2013 there were 1.68 million. The aim is to address the pressing need to provide work

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radition is important in Oman. It is the oldest independent state in the Arab world and is situated at the strategically important point at the opening of the Gulf. Historically, Oman has actually been much more outwards looking than most of its Gulf neighbours because of its geography - on the Indian Ocean. It ruled an empire from the 1700s, and only stopped receiving an annual subsidy from Zanzibar in 1964. It became more isolated in the later years of the rule of Sultan Qaboos’ father, but the winds of change are in the air as the country seeks to counter these years of isolation through foreign investment and clear economic targets.

Oman

opportunities in logistics, tourism, fisheries, mining and manufacturing industries sectors. This has resulted in an increased amount of encouragement for the tourism industry. Oman sees tourism as a way of creating jobs, conserving heritage sites and promoting community development. Oman’s traditional focus means it is particularly known for cultural tourism, and it holds some fantastic archaeological sites. On top of this, the capital of Muscat was voted #2 in Lonely Planet’s Top Ten Cities to visit in the World in 2012 due to its forts and palaces. This has stimulated activity in the hotel and leisure sector, and tourism is an area expected to grow in the near future as more people become aware of what Oman has to offer. Infrastructure is also receiving a large amount of investment in order to facilitate the growing expatriate community and the continuing incoming tourism. A number of large infrastructure projects are in different stages of development, including new ports, airports, roads and industrial zones, as well as a new railway line that should be operational by 2018-19.

Unique identity

for the growing number of educated young Omanis and limit the country’s dependence on foreign staff. Different sectors of industry are given Omanisation percentages to meet, with the failure to do so resulting in a fine. The policy is demonstrative of Oman’s desire to be progressive, but at the same time respectful of its history and not become overly influenced by foreign involvement. Oman is highly dependent on oil, which accounts for about 70% of state revenues, but has ambitious plans to diversify its economy in the coming years. The first draft of the 9th five-year plan (20162020) aims to develop the private sector, enhance public-private partnerships and create new job

Oman has been ruled as an absolute monarchy by Sultan Qaboos bin Said al Said since 1970. This has caused a level of political stability that means the country has largely been spared the militant Islamist violence that has plagued some of its neighbours. Its stability is also based on having an ethnically and religiously diverse population which has contributed to a relatively high degree of tolerance. There is no appointed successor to Sultan Qaboos, who has ruled the country since 1970. Oman’s version of a constitution, the Basic Law, published in 1995, has put in place some guidelines for choosing a successor, but these are untested. Oman values its foreign relations, particularly in recent years as it tries to develop a more global economy. It has good working relationships with its GCC partners (Bahrain, Qatar, Saudi Arabia, the United Arab Emirates and Kuwait) as well as with Iran. On top of this the country is probably the UK’s closest political ally in the region, and the UK is Oman’s 9th largest importer. Oman has been a longterm partner to Washington and is seen to play an important diplomatic role in the region. Oman also signed a Free Trade Agreement with the US in 2009, signalling their desire to welcome foreign investment and engage with the global community. These are important steps for Oman as it begins to display its worth on the international stage, but policies such as Omanisation and cultural conservation ensures Oman will maintain its traditional identity. This unique combination means Oman offers untapped potential for UK companies looking to move into the region.

Further information Tel: +968 2460 9002 UKTI.Muscat@fco.gov.uk

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Kuwait

| Positioned at the top of the Gulf and with development occurring across a number of sectors, Kuwait is well placed to become a focus of Middle East trade

A developing regional hub D espite its relatively small population, Kuwait is increasingly developing itself as an attractive centre of trade. The country has an oil rich economy, stable government and is geographically well positioned at the top of the Gulf next to the powerful nations of Saudi Arabia and Iraq. Kuwait is the UKâ&#x20AC;&#x2122;s 45th largest export partner and is 37th in terms of UK imports, and there is confidence from both sides that this relationship can be strengthened as further opportunities present themselves.

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There is a long history of co-operation between the UK and Kuwait, and Britain is keen to help Kuwait utilise their current opportunities. Firstly trade barriers and corporate tax were reduced to encourage bilateral trade. Then in 2013 the UK Kuwait Business Council was established, with a focus on building business growth. UK Export Finance is active in Kuwait and has helped to finance Kuwait Airwaysâ&#x20AC;&#x2122; purchase of Airbus Rolls Royce engines. UK Export Finance provides trade finance (pre and post export), working capital and

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Kuwait

expand the airport terminal capacity from 6 million passengers per year to 20 million passengers by 2030, and turn KIA into a major passenger and cargo hub within the Middle East region. Kuwait has identified transport as a key driver in economic development, and as such numerous other projects are also in the pipeline. A metro system stretching 160 km is expected to be operational between 2020-22, and is part of Kuwait’s ‘Vision of the State of Kuwait – Kuwait 2035’, as well as being a part of the overall national strategy of implementing modern urban transportation systems to improve infrastructure and accessibility. To complete the land, air and sea trident, the government of Kuwait is also developing a huge new port and logistics facility on Boubiyan Island. This once again emphasises the potential of the country as a regional trading hub.

Healthy relationships

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credit insurance, or a combination of all three. “The Kuwait Investment Office (KIO) was the first ever Sovereign Wealth Fund and recently celebrated its 60th anniversary in London,” says Simon Williams, Director of UKTI in Kuwait. “A major investor in the British economy, the KIO has holdings across a range of asset classes in the UK. Local links remain strong, with the Embassy colleagues attending the Kuwait Investment Authorities recent seminar on Financial Innovation, Stability and Growth.” Williams also described other factors that can strengthen ties between the two countries. “These trade and investment links are also supported by the significant ease of travel between the two countries, as showcased by British Airways’ direct Heathrow to Kuwait service being its most profitable route. The British Embassy visa team in Kuwait issues over 100,000 a year.” Kuwait offers a number of opportunities in varying sectors, with transport being one of the key markets. The redevelopment of the Kuwait International Airport (KIA), which is located 16km south of Kuwait City, is a particularly exciting project. There are plans to

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Other key sectors are defence and security. The UK has come militarily to the aid of Kuwait on a number of occasions, including in the Liberation of Kuwait from Iraq in 1991, and UK training and doctrine is used across the country. Kuwait has some significant opportunities in the defence and security sectors over the medium to long term. Healthcare, oil, infrastructure and transport projects will also all have major security elements. Patience and persistence is required by companies looking to develop in this area, as it is not uncommon for procurement to take a number of years to come to fruition. There is also a large-scale healthcare project across the country to help cope with the needs of a growing and ageing population, as well as the demands of the growing expatriate population. In order to match these demands the government plans to increase the number of hospital beds to 11,000 by building 7 new hospitals. Crucially, many of the essential components and technical services required will be imported, which opens a huge amount of opportunities for UK healthcare businesses and organisations. A strong local partner can be key to business success in Kuwait. UKTI can assist UK companies in finding these contacts, as well providing essential market information, a validated list of agencies and key market players or potential customers. All this of course is on top of the wide local knowledge and experience that UKTI provide. With an oil rich economy plus numerous projects across sectors planned for the future, the potential in the country is clear to see. Kuwaitis hold UK products and services in very high regard, and the future looks bright for these two trading countries.

Further information Generic email: ukti.kuwait@fco.gov.uk Tel: +965 2259-4320 then press 3 (UKTI)

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Saudi Arabia

Opportunity Arabia Oil rich and with a young population, the prospects in Saudi Arabia are numerous, says Paul Clark, Head of UKTI in Riyadh

he Kingdom of Saudi Arabia is the largest economy in the Arab world, and accounts for 25% of the Arab world’s GDP. Saudi Arabia has had a period of relatively high growth and economic progress over the past few years. It is predicted to grow by at least 3% for the next couple of years. There are a wide range of opportunities across a variety of sectors for UK exporters and firms looking to invest in the Kingdom. There continues to be strong demand for UK expertise in engineering design, healthcare products and support, project management, financial services and education and training. Saudi Arabia has experienced a period of relatively high growth and economic progress over the past few years, based on a strong oil sector and record oil revenues which still account for around 80% of budget revenues. The Kingdom possesses around 25% of the world’s oil reserves and is the largest swing exporter of petroleum. Oil revenue has allowed the Kingdom to increase public spending on infrastructure and welfare to match the increasing needs of a fast growing Saudi population. In turn the non-oil private sector is feeding off this upturn in public spending. The oil price has dropped significantly over the past year but the Saudi budget has seen a marginal increase for 2015 at $229bn. This reflects a determination to continue the Kingdom’s major spending programme across a wide range of sectors, with significant budget allocations for the healthcare, education, transport and water sectors. It also demonstrates that the Kingdom is dedicated

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to continuing stimulatory spending to develop and diversify the economy and persuade private investors to do the same. With 50% of Saudis under 25 years old the Saudi population is one of the fastest growing in the world. The current population of over 28 million is expected to increase to 29 million by 2020 and there is increasing focus on providing the right kind of education, technical and vocational skills the large youth population require in order to meet private sector needs. Massive investment is required to meet the needs of this growing population. The Kingdom has substantially increased spending on employer led vocational training and education, many of which are being run or overseen by UK education providers. These new facilities include a number of new women’s colleges and the women only Princess Noura University, which is the largest of its kind in the world. Another major Saudi government policy to compliment the focus on education is a strategy of economic diversification and reform to grow the private sector and reduce reliance on oil and gas. This will open up previously restricted industries to foreign investment with the aim to increase employment opportunities for Saudis.

Sectors Saudi Arabia has been designated a ‘High Growth Market’ by UK Trade & Investment that has identified a number of high value opportunities including: l Railways development programme. Total project value is likely to exceed £14bn. UK firms have experienced recent success with the

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experience in deep water regions such as the North Sea. Saudi Aramco is confident of implementing US$25b capital expenditure in the Red Sea. l Nuclear. Saudi Arabia will invest £60bn in 16 new reactors over the next 20 years, presenting significant opportunities for UK companies. l Public Transportation. 5 major cities have developed public transportation master plans; all are at various stages of planning and implementation and include significant rail (tram, monorail, light rail and metro) networks. The UK has established capability in the planning and implementation of mass urban public transit systems. Key opportunities exist in exports of consultancy, products and services. l Education. The Saudi Colleges of Excellence Programme will involve 100 colleges and vocational training centres are being set up around the Kingdom. UK education providers are already running 16 of the 37 colleges let to date. In addition to the High Value Opportunities, Saudi Arabia has a number of other strong growth sectors. These range from new infrastructure projects and mining to retail and food and drink. Saudi Arabia is a market that repays patience and persistence. Saudi clients like to get to know you first, and are looking for evidence of longterm commitment as well as potential skills and technology transfer. Dealing with the market from a distance is not usually an option, and frequent visits are usually necessary. The UK is fortunate to have a deep historical relationship with Saudi Arabia, with a presence going back to the Kingdom’s foundation. There is a large number of UK companies that have established Saudi subsidiaries, some as 100% owned companies and others as joint ventures with Saudi partners. Selecting the right partner is crucial and our advice to UK companies is to take time in order to choose the one best for your business. It is also possible to join with a non-exclusive partner on a project specific or regional basis. New companies entering the market can also benefit from assistance from UK trade associations such as the Arab-British Chamber of Commerce and the Middle East Association, as well as the British Business Groups in Riyadh, Jeddah and Al Khobar. The Saudi British Joint Business Council are strengthening their remit in the UK and in Saudi Arabia and are developing plans to increase their support to UK businesses seeking market entry into the Kingdom. UKTI have specialised trade teams in the UK and Saudi Arabia to help our UK companies access these and other opportunities. Please do use our market introduction services which are accessible through UKTI International Trade Advisors in the UK, as well as directly. We are able to host company launches and events for you, and introduce your company to potential clients and partners.

Further information Email: commercial.riyadh@fco.gov.uk Tel: +966 11 481 9339

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expansion of the North South line. The development of the new Landbridge Project, linking Riyadh and the Eastern Province line to Jeddah, will offer even more substantial opportunities. l Healthcare development programme. A £60bn spending programme leading to largescale investment in infrastructure, workforce and systems development. This offers massive potential for firms committed to long-term collaboration and the transfer of skills and technology, including in training, IT systems and the building, management and operation of hospitals. l Water and wastewater upgrade. A £30bn programme, comprising a number of projects that will be undertaken between 2012 and 2017, includes building 20 new desalination plants and 6 new sewage treatment plants. l Sadara Petrochemical project. A US$20bn development programme (JV between Dow Chemicals and Saudi Aramco) will establish a major petrochemical complex producing 1.3m tonnes per year of ethylene and 400,000 tonnes per year of propylene when complete in 2015. l Development of Saudi Airports. New terminals in Riyadh, Jeddah and 33 other airport development projects all represent significant opportunities for UK companies. The UK is seen as a prime source of knowledge and support for this programme. l Red Sea Natural Gas. Saudi Aramco plans to exploit natural gas reserves this decade off the Red Sea Cost to support increased domestic demand, which will involve deep water technologies (>1000m). This programme will benefit engineering and service companies that have accumulated

Saudi Arabia

Middle East Association

Helping MENA trade The Middle East Association is a multisector trade association that works to encourage bilateral trade with the Middle East and North Africa, says Rebecca Ryan

rawing on 60 years of experience, we at The Middle East Association introduce British companies to the variety of opportunities in the MENA region, as well as assisting with market entries and developing business networks for established companies, both in the UK and in the region. Total UK exports to the MENA region reached £18 billion in 2014, and Saudi Arabia alone saw £7billion of UK exports in the same year. British companies have also been increasing their market share in lesser known countries such as Algeria and Morocco, which have seen new entrants and significant contracts being won.

Advice and Support Doing business in the Middle East and North Africa is not as straightforward as in other regions. It requires insight and good judgement, as well as an understanding of local requirements and expectations, in order to be successful in these challenging yet profitable markets. With our network of government and private sector contacts, long-standing experience, and in-depth market knowledge, the MEA can provide companies with the intelligence, access, and guidance they need to develop their business successfully. We proactively specialise in helping members, and in particular SMEs, overcome the barriers to trade and explore new target markets. All of our advice is relevant to exporter experience – offering case studies of successful ventures, market briefings, overviews of Islamic law and finance, and risk advisory services.

Wide Membership Base The MEA membership consists of around 250300 companies, based both in the UK and in the region. We represent businesses from bluechip multinationals right through to SMEs and independent consultants, creating value for each one based on their bespoke business needs.

Middle East Association

Membership of the Association offers a range of benefits and incentives including special rates for our events and Trade Missions, networking opportunities, as well as access to exclusive business intelligence and promotional offers for partner events and publications.

Inclusive Events The MEA regularly hosts geographic and sectorspecific events throughout the year, featuring government and private sector speakers who cover topics of current interest from business to political and security trends in the region. Presentations are followed by questions and informal discussion, creating a valuable networking forum. Recent events have included a Market Briefing with Jason Ivory, UKTI Director for Egypt, a Breakfast Briefing with Richard Moore, HM Ambassador to Turkey, and a Forum on Iranian Sanctions at Lincoln’s Inn. With a focus on six key sectors in which the UK has especial expertise and world-leading innovation – energy, education and training, healthcare, defence and security, financial services, and construction and infrastructure – the MEA is directed and strategic in its activities for generating growth. We continue to work closely with UKTI teams overseas and with the network of International Trade Advisors (ITAs) and regional devolved assemblies in the UK. We also actively support and promote UK Export Finance’s range of services and products, and are proud to be a UKTI Trade Challenge Partner. Two flagship events are planned for autumn 2015 – the Opportunity Arabia conference on the Saudi market will take place on 14th September, and the MEA Autumn Lunch is scheduled for late November, an event that always garners a large diplomatic presence.

Forward-looking activities Our aim for 2015-2016 is to be responsive to the needs of our Members and to adopt a more personal approach. The MEA is also extending its reach to SMEs throughout the UK and developing closer working relationships with other chambers of commerce and specialist trade associations. The organisation receives strong support from the FCO and the MENA Ambassadors, and will continue to expand our network of relations with the 24 countries covered. “We want to learn more about your businesses and ambitions - to be focused on what you want,” says Peter Meyer, CEO of The Middle East Association. “The MEA has a key role to play in supporting British companies in their MENA export efforts, and will work to extend our reach to businesses in the region. Our aim always has been and will continue to be to strengthen trade and commercial relations.”

Further information info@the-mea.co.uk www.the-mea.co.uk @MiddleEastAssoc

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Kingâ&#x20AC;&#x2122;s College Hospital Clinic Abu Dhabi

Shining a light

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King’s College Hospital Clinic Abu Dhabi

Opening a brand new hospital clinic in Abu Dhabi is a challenge, but with the world-class reputation, knowledge and experience of King’s College London behind the project, it can be a growing success, says Eileen Lock, Clinic Director at King’s College Hospital Clinic Abu Dhabi

ing’s College London NHS Foundation Trust is one of the UK’s largest and busiest teaching hospitals, with a unique profile and an international reputation across a range of disciplines. In October 2014, King’s decided to utilise this reputation by opening a health clinic in Abu Dhabi in the United Arab Emirates, its first site outside of the UK. The site aims to provide high quality and cutting edge healthcare, and specialises in gynaecology, foetal medicine, paediatric, gastroenterology, as well as family and internal medicines. Starting a brand new health clinic anywhere in the world does not come without its challenges, but these challenges are especially acute when the new site is so far from the original. “King’s College Hospital’s reputation has been crucial,” says Eileen Lock, the Abu Dhabi clinic director. “I think a lot of people use our clinic because they know and trust the brand of King’s in London. The local patients might not have any understanding of the setup of the NHS, but they know the healthcare in England is high quality, cutting edge and can be trusted.”

Local collaboration There is still, of course, a degree of local collaboration because in the UAE you cannot start a business without a local sponsor. King’s has three local partners that have assisted with setting up the clinic and establishing itself in the UAE. Eileen Lock was in the advanced party that came to the UAE a year ago to begin organising the project, and she highlights just how far the clinic has developed in such a short time. “When I first arrived here there were problems with construction, so there was no office space. We had to have our initial meetings in coffee shops until we were able to get office space from one of our sponsors, and use their meeting rooms twice a week to brief the handful of staff we initially had.”

EILEEN LOCK Eileen trained as a nurse in London. She has held a number of nursing posts in hospitals across London up to Director of Nursing. She has Secondary care background in surgery and ambulatory care. Eileen undertook a degree in Healthcare management working in management posts both in the NHS and the private sector, and was previously a Director of Harmoni, the largest out of hour urgent Primary care provider in the UK. Harmon was bought by Care Uk in 2012 .

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King’s College Hospital Clinic Abu Dhabi

Patient treatment Shining Towers is an impressive structure of two tall silver towers - one commercial and one residential. The King’s College Hospital Clinic covers a space of 2,500 square metres and occupies most of Podium 2. It is a striking clinic: a vast space with various treatment and waiting rooms for both male and female patients, a children’s play area, eight treatment rooms, scanning facilities and a stateof-the-art Pathology service with access to the comprehensive test repertoire of King’s Health Partners. “The clinic is modelled on the values, policies and procedures of Kings’ College London. There is no difference at all between how we treat the patients here to how they would be treated in the UK,” says Eileen. This consistency is maintained by the 14 doctors and 13 nurses at the site, all from England and recruited specifically for the task by King’s College Hospital consultants. Adapting to cultural differences may have caused other issues in the creation of the site, but in fact Eileen explains that this was not as much a concern as originally perceived. “I was quite surprised at how forward thinking it is here. Working in London prepares you for ethnic diversity so coming to Abu Dhabi was not a culture shock. Of course there are differences, but in some respects it is ahead of the UK. For example particularly on the banking side, as every time you use your credit card you get a text immediately to say it has been used. Everything is done by email or telephone as well, so all your bills are dealt with by text message.”

Reducing travel The UAE was chosen specifically because King’s has had a long association with the region dating back to when the then President of the UAE, Sheikh Zayed, donated money to set up King’s College Hospital’s first liver unit back in 1979. Indeed about 60 percent of King’s private sector patients come from this part of the world, and the clinic will allow patients to undergo pre-operation and follow up treatments within their own country to reduce the

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‘The local patients might not have any understanding of the setup of the NHS, but they know the healthcare in England is high quality, cutting edge and can be trusted.’ need for travel. It also provides a seamless pathway to King’s College Hospital in London should the need arise. “One of the local Emirati doctors here did some training at Birmingham Children’s Hospital and has always had an association with the UK. At one of the international conferences he made contact with the King’s College Hospital paediatric gastroenterologist and came up with the idea of having a King’s College Hospital out here in Abu Dhabi,” explains Eileen. While it is still early days, the clinic has been an initial success and the numbers of patients continue to grow. In the Middle East word of mouth is often the most effective marketing tool, which means a new venture such as this may take time to develop to its peak effectiveness. “Most patients come on the recommendation of another patient or friend. We expect to hit our target of full capacity of patients within about a year. That is about 250 patients a day,” says Eileen. These numbers demonstrate the challenges in creating a new clinic are being overcome, and King’s College Hospital has hopes of expanding the services that the clinic offers beyond the restrictions of the day surgery facility procedures. In the longer term there is potential to develop the facility into a full time hospital, as well as to replicate the clinic across the rest of the UAE.

Further information www.kchclinics.com

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Consolidated Contractors Company www.ccc.gr

Moorfields Eye Hospital

Second sight Understanding local needs is as vital as exporting expertise for a successful overseas hospital, says Mariano Gonzalez, Managing Director of Moorfields Hospital Dubai

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he world-famous Moorfields Eye Hospital in London opened a hospital in Dubai in 2006, the first overseas venture of its kind for any NHS Trust. Managing Director Mariano Gonzalez explains that it was the vision of the management eight years ago to increase the development of private services to Dubai, mainly because a large number of patients from Dubai and the Middle East were travelling to Moorfields in London for treatment. “We thought if the patients are coming to us in London why don’t we just go there and treat them,” says Gonzales. “A huge effort was made, and eight years later the hospital has become a successful business model for others.” The Moorfields management in London took their initial idea to the authorities in Dubai and were met with a very positive response. ‘We had a warm welcome from Dubai Healthcare City”, says Gonzalez, describing the healthcarefree zone that was established in Dubai eight years ago to promote the city as a hub of healthcare by attracting big international names - Moorfields being one of the first. The reputation of the Moorfield’s name and brand was crucial in the decision, and the process of synergising the work between London and Dubai was carefully managed.

Best patient experience ‘We work as if we were in London; our clinical practice is exactly the same. The qualifications and experience and training of consultants is the same, and we follow the same clinical pathways,” says Gonzalez. “The journey and experience a patient goes though in Dubai is exactly the same as the one in London. So from the clinical perspective it is the same, and we aim to give the patient the best experience possible. “Our consultants are full time consultants here; our medical director in London comes every quarter and we share clinical pathways in the same way they do there. Other levels connected to health and safety, clinical standards and financial procedures are the same as in London.” Crucially, the key factor in the hospital’s success is the importance it attributes to listening to the local population and adapting to their needs. “Basically the link is 100 percent in each department; we follow the same rules and procedures but we localise the way we deal with patient, “ says Gonzalez. “The key is the way we deal with local population and what they need. We didn’t copy and paste, we brought the expertise here but we understood what was required. “To give a specific example, Middle Eastern eyes are darker than European eyes and take longer to dilate, meaning that routine appointments to apply eye drops can take up to three times longer than in the UK.”

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| Opposite: Dr Andea Sciscio, Consultant Opthalmic Surgeon at MEHD, examines a candidate for eye rejuvenation Below: More than 23,000 patents were seen at the hospital last year

Moorfields Eye Hospital

Staff were initially brought in from the UK. “From a clinical perspective we started with a small number of consultants in years one and two from Moorfields,” explains Gonzalez. “The number of consultants is now growing year on year to provide answers to local healthcare needs. We recruit internationally, selecting in London using the same procedures, and we then deploy them here. The criteria and process is the same as in Moorfileds London.” More than 23,000 patients were seen last year at the Dubai hospital, a large percentage from the UAE. The second largest group were UK expatriates followed by a mixture of nationalities with 12 percent from abroad, introducing an element of medical tourism to Dubai as Healthcare City itself looks to attract international business. Moorfields was recently awarded the title of Hospital of the Year, which recognises the respect the operation has won locally. “For us, it is very important that in a place like Dubai we know that we have that reputation.” The success of the project means even more Moorfields hospitals will open overseas in the future. “In May 2015 we will open our second overseas hospital in Abu Dhabi,” says Gonzalez. “Although smaller than Dubai, as it will not include all the

‘The reputation of the Moorfield’s name and brand was crucial in the decision and the process of synergising the work between London and Dubai was carefully managed.’ administration services, from a clinical perspective it will be the same. As there is no equivalent Healthcare City there, back up is different, with local partners working together. It will be Moorfields branded, following the same clinical perspective and 100 percent the same as London and Dubai.” The most important lesson that Moorfields Dubai can pass on to others, according to Gonzalez, is the crucial need to ask first what is required locally, and act on that understanding. “The key is to understand the needs, it is not enough to bring the expertise.” Although the Moorfields brand was important, the UK and the NHS names have also been influential. “The NHS and the UK as a brand is a big thing in healthcare and is considered to have a good reputation. The way it is perceived as a name and brand is very important, and will support any venture in the region. It is a good business card.”

Further information Tel: (+971) 4 429 7888 Email: aqf@moorfields.ae www.moorfields.ae

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FCm Travel Solutions

Less travel stress, more travel smarts The hidden costs of stressed-out travellers on businesses can be huge, says FCm Travel Solutions

he popular misconception about corporate travel is one of relaxed passengers sipping expensive wines in business or first class seats, before being driven to plush hotel rooms withensuite spa baths. However the reality is more likely to feature delayed flights, limited wi-fi and room facilities, leading to tired, frustrated and stressed-out travellers. While companies continue to prioritise travel cost efficiency, the focus is shifting to their travelling employees, and how well they work on the move.

Travel stress triggers A recent study by the Global Business Travel Association questioned corporate travellers across 10 European Countries. Their findings revealed that security, safelty and health are the prime concerns of business travellers. For example 76 percent of those questioned said it was

important to feel their employers took their safety and security seriously; 65 percent felt maintaining a healthy diet while travelling was a key concern; and 85 percent of respondents said they enjoyed business travel, but stress levels rose when their trips were fraught with problems including delays, long layovers and travel outside regular business hours. When business travellers arrive at their destination, they view their hotel room as a place where they can refresh, revitalise and regroup. However accommodation can create its own types of frustration. FCm Travel Solutions has identified that common sources of accommodation stress include highcost internet connection, noisy rooms, limited room facilities, late checkout policies, dining costs and car and valet parking. All of this, combined with airport queues and hotel booking mistakes, can lead to a productivity ‘downtime’ that adds a hidden cost to business travel.

Reducing travel stress Obviously it is impossible to eliminate travel stress completely, as every

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FCm Travel Solutions

corporate journey can be affected by elements outside the traveller’s control. However businesses can reduce the impact on productivity by making work trips more comfortable for their employees. FCm believes the solution is to focus on traveller needs and comfort as much as cost-saving policies. Employees don’t necessarily need to travel less – they can often travel smarter. In 2013, FCm launched its innovative global SmartSTAY programme to give business travellers value-added extras in their accommodation, at no additional cost. This growing programme is currently available at more than 280 participating hotel properties worldwide. Every SmartSTAY property offers guests a minimum of three complimentary value-added services, one of which is available exclusively to FCm clients. Ranging from free room upgrades to wi-fi, breakfast, car parking and late checkout, the services are available year-round and benefit guests with greater comfort and convenience. SmartSTAY delivers multi-level benefits by giving travellers more in their hotel stay without impacting employers’ travel budgets. It not only helps reduce costs by relieving traveller stress and supporting productivity, but also provides savings for companies. SmartSTAY helps companies optimise their travellers’ well-being while staying focused on their travel policy and savings. It helps take the stress out of business travel for employees, and gives employers peace of mind that their people are travelling comfortably and productively. FCm Travel Solutions is the global, sophisticated corporate travel management division of the Flight Centre Travel Group. With over 30 years’ experience and a presence in 90 countries, FCm delivers the benefits of a global company with the intimacy of a local business. FCm has been named the World’s Leading travel management company for the past four years and was awarded Account Management team of the Year in the UK in 2014. In addition, FCm was shortlisted as a finalist for the Customer Focus Award at the UK National Business Awards

Further information www.uk.fcm.travel

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