Austria Special Report - 2015

Austria

khaleej times | Special report

Europe’s hub

Business relations spanning decades

Along with tourism, Austria is famed for its machinery, metallurgical products and textile industries

Austrian company Waagner Biro Gulf L.L.C. has been serving the world for more than 160 years

By Sadiq Shaban

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ustria is a country steeped in history. As one of the richest nations in the world, it boasts of a very robust services sector. Forming more than 70 per cent of the country’s Gross Domestic Product (GDP), Austria has a thriving service sector. One sixth of Austria’s wage and salary workforce is employed in the trade and industry sector, which contributes almost 13 per cent to its GDP.

Being a stable EU member state, Austria offers investors an array of avenues and opportunities. Besides the motivation and skill of labour, high productivity and international competitiveness, quality of life and personal security, Austria has world-class telecommunications and energy infrastructure. The country’s administrative system is transparent with top-notch labour-management relations. Main export commodities include machinery and equipment, motor vehicles and parts, paper and paperboard, metal goods, chemicals, iron and steel; textiles, and foodstuff.

Characterised as a free market economy, Austria boasts of a high proportion of medium-sized companies.

Manufacturing is big in the country with several large firms producing cement, paper, and sugar among other goods. With a special focus on highquality products, mainly in the traditional industries, the country generates most of its foreign currency through exports. Iron and steel production form the leading industries in Austria with firms involved in making plants and installations like hydroelectric or thermal power stations, chemical plants, steelworks, and seamless pipelines.

Tourism is the country’s biggest foreign exchange earner and the fastest growing sector, producing 10 per cent of Austria’s economic output. Austria regularly ranks among the world’s top countries with 30 million tourist arrivals annually. While Vienna attracts the most number of tourists, Salzburg too is a big hit with holiday makers. Sölden, Saalbach-Hinterglemm, Ischgl, Sankt Anton am Arlberg being the most popular tourist hotspots. Famous for skiing, hiking and mountaineering re-

Waagner Biro Group started operations in the UAE in 1964. Its first project — The Maqta Bridge in Abu Dhabi was completed in 1967, followed by the Al Maktoum Bridge in Dubai in 1969.

For 50 years, Waagner Biro Gulf L.L.C. has built a long historical database as a full-range service supplier for design, engineering, manufacturing and installation of all kinds of bridges, steel structures, marine and coastal works and wastewater treatment plants, using the local experience and international expertise to find the best solutions for its clients. Post-construction and operation services are provided in comprehensive facility management services and non-comprehensive annual maintenance contracts. A new and better way of doing things and excelling in them is proposed and implemented in turn key maintenance projects with governmental organisations and private developers.

Economy facts: • About 7.5 million hectares of land are used for agriculture with cattle farming contributing 30 per cent to the agricultural value-added business • Austria has more than 18,500 eco-farms • The country’s tourism industry employs 220,000 people in 40,000 establishments • Trade with other EU countries accounts for almost 66 per cent of Austrian imports and exports • Austria is among the top 5 wealthiest countres in the European Union, having a GDP (PPP) per capita of approximately €27,666

sorts, Austria is also home to numerous stunning lakes and castles.

The country has made huge strides in the energy sector. Nearly 70 per cent of its energy comes from renewable sources such as water. Notably Austria is one of Europe’s most important producers of hydroelectric power. With an

enhanced focus on renewable energy the country is now looking at a target of 34 per cent renewable energy by 2020 and 100 per cent self-sufficiency in energy by 2050. The country expects to generate 100,000 new green jobs up to 2020, it was recently announced.

— sadiq@khaleejtimes.com

Waagner Biro Gulf ’s portfolio at a glance: • Bridge engineering (special bridges; movable bridges; floating bridges; panel bridges; modular bridges) • Marine and coastal engineering (harbours; marina and berthing facilities; barges and vessels; beach improvement/ protection works; marine maintenance) • Facility management and maintenance (preventive maintenance; corrective maintenance; annual maintenance/ overhauling; 24/7 emergency works; MEP works) • Water and environmental engineering (tailor-made solutions for environmentally friendly wastewater treatment through reed beds)

Austria

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Austria fact file • • • • • • • • • • • •

Official name: Republik Österreich (translates to “Eastern Empire”) Capital: Vienna Population: 8,223,062 (as of 2014) Total area: 83,870 sq km Language: German, Hungarian, Croatian, Serbian, Bosnian, Turkish and Polish Currency: Euro (formerly schilling) GDP per capita: $42,600 Life expectancy: 80 years Literacy rate: 98 per cent Industry: Construction, machinery, vehicles and parts, food, metals, chemicals, lumber and wood processing, paper and paperboard, communications equipment and tourism Agriculture: Grains, potatoes, sugar beets, fruit; dairy products, cattle, and poultry Exports: $165.6 billion (as of 2013)

Titbits hh Austria consists of nine independent federal states — Burgenland, Carinthia, Lower Austria, Upper Austria, Salzburg, Styria, Tyrol, Vorarlberg and Vienna — each with its own provincial government. hh Statistics Austria reported that the country’s GDP stood around €310.69 billion in 2013 with a 2 per cent change compared to the previous year. hh Austria is the second richest country in the EU with state-of-the-art transport and telecom infrastructure. hh Austria is one of the most investor-friendly countries in Europe, with a a corporate tax rate of 25 per cent. Its attractive group taxation system and lack of wealth and trade taxes add to its benefits. hh It is also among the top 15 UN countries for Standard of Living paired with high technical standards and quality expectations in the market. hh Tourism plays an extremely important economic role in Austria.

Statistics show that in 2013, around 36.8 million foreign visitors visited the country with total of around 136 million overnight stays. hh The country is a member of the following organisations: UN (United Nations), World Bank Group, OECD (Organisation for Economic Co-operation and Development), OSCE (Organisation for Security and Co-operation in Europe), WTO (World Trade Organization) / GATT (General Agreement on Tariffs and Trade), IMF (International Monetary Funds) and the WHO (World Health Organisation).

Exploring UAE’s oil wealth OMV, an Austrian company with operations in 30 countries, is working closely with ADNOC and Wintershall on two projects OMV is one of Austria’s largest listed industrial companies. It is now active in 30 countries worldwide, with around 27.000 employees, focusing on profitable growth in its three business areas of Exploration and Production (E&P), Refining and Marketing (R&M) and Gas and Power (G&P).

OMV established an upstream exploration and production company in the UAE in 2011. In June 2012, it signed its first upstream agreement with ADNOC. Presently, OMV is active in two projects, the Shuwaihat appraisal project with Wintershall as 50 per cent partner and operator, and an exploration project in Eastern region of Abu Dhabi with OMV as operator and ADNOC as sole partner.

The Shuwaihat JV is applying most advanced technologies as OMV and Wintershall have a proven track record of sour gas field developments and operations in Germany and Austria for more than 40 years of safely producing sour gas (Hydrogen Sulphide and Carbon Dioxide) bearing oil and gas fields.

In the onshore eastern region of Abu Dhabi, OMV and ADNOC

It was a very important step to get OMV engaged with E&P activities in the UAE. The cooperation with ADNOC has been excellent in developing the agreements we are in and we are excited to have ADNOC as our partner in the exploration campaign.

— Dr Georg Wachtel are jointly conducting a state-ofthe-art exploration programme with seismic acquisition and followed by drilling of exploration wells. The acquisition of 3D seismic data is now under way and OMV’s first exploration well is planned for 2016.

“It was a very important step to get OMV engaged with E&P activities in the UAE. The cooperation with ADNOC has been excellent in developing the agreements we are in and we are excited to have ADNOC as our partner in the exploration campaign,” says Dr Georg Wachtel, General Manager of OMV Abu Dhabi.

OMV and ADNOC explore to secure the energy supply

OMV Exploration & Production Technology at the highest level OMV uses the “4S” cutting edge technology in the field of 3D Seismic in the desert of Abu Dhabi. Ten billion data points are currently being recorded in the East Abu Exploration Block utilizing the state of the art “4S” (single source-single sensor) seismic acquisition method. It allows OMV and its partner ADNOC a highly efficient analysis for the search of new oil and gas reserves. Deployment of such leading edge technologies will assist to secure the energy supply for the future.

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16.12.2014 10:58:09