Trade & Export ME July 2012

ISSUE 8 | JULY 2012

A practical guide to going global

www.tradeandexportme.com

inside: Event listings Country Focus INVESTMENT OPPORTUNITIES Commodity watch FREE ZONES LOGISTICS

N E V E S T N E IC IF N G A THE M should be u yo y h w s n so a re e th Get to know all e Zone. re F h ya ri m a H e th in ss doing busine

PLUS

armoured cars industry

LEBANON TAX REGIME

IN ASSOCIATION WITH

NON TARIFF BARRIERS PUBLICATION LICENSED BY IMPZ

EDITOR’S LETTER

Publisher Dominic De Sousa Group COO Nadeem Hood Managing Director Richard Judd richard@cpidubai.com +971 4 440 9126 EDITORIAL Senior Editor Aparna Shivpuri Arya aparna@cpidubai.com +971 4 440 9133

Time to zone in...

Contributing Editor Mike Byrne mikeb@cpidubai.com +971 4 440 9105

There has been a lot of buzz around free zones over the past few years. So, we decided that it’ll be a good idea to find out what makes these special economic zones (SEZs) – special.

ADVERTISING Sales Manager Sami Sabbah sami@cpidubai.com +971 4 440 9152 PRODUCTION AND DESIGN Operations Director James Rawlins jamesr@cpidubai.com +971 4 440 9108 Production Manager James P Tharian james@cpidubai.com +971 4 440 9146 Database and Circulation Manager Rajeesh M rajeesh@cpidubai.com +971 4 440 9147 Design Director Ruth Sheehy ruth@cpidubai.com Head of Design Fahed Sabbagh fahed@cpidubai.com +971 4 440 9107 Designer Froilan A. Cosgafa IV froilan@cpidubai.com +971 4 440 9107 Photographer Cris Mejorada cris@cpidubai.com +971 4 440 9108 DIGITAL SERVICES www.tradeandexportme.com Digital Services Manager Tristan Troy Maagma Web Developers Jerus King Bation Erik Briones Jefferson de Joya

To make a start, we forego our precious sleep and left one early morning for Sharjah to meet Rashid Al Leem, Director General of Hamriyah Free Zone. And all the cups of coffee and missed turns, were forgotten as soon as we entered the gates of the free zone. The vision and work put into making business easy and efficient is evident everywhere in HFZA. Therefore, it comes as no surprise that the zone has moved from 67 companies in 1995 to 5,700 companies from 140 countries, as of now. Talking to the Director General made us cognizant of the facilities that are being provided to SMEs in the zone. So if you are keen on trading or are looking to set up business, please turn to page 18 quickly.

Moving along, we bring a very interesting piece on the armoured car industry.

We got talking to the Streit Group about their operations in the RAK Free Zone, which is one of the biggest armoured car facilities in the world. Are you hooked?

Please turn to page 36 to get more details.

And it doesn’t end here, with features on the tax regime of Lebanon, non-tariff barriers and the logistics powerhouse from South Africa- Barloworld Logistics So as the sun beats down on you, take a break, sit back and enjoy the July issue. And don’t forget to connect with us!

Till then...

online@cpidubai.com +971 4 440 9100 Published by

Aparna Shivpuri Arya, Senior Editor, Trade and Export Middle East

1013 Centre Road, New Castle County, Wilmington, Delaware, USA

Branch Office PO Box 13700 Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 Printed by Atlas Printing Press © Copyright 2012 CPI All rights reserved While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

Talk to us: E-mail: aparna@cpidubai.com

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LinkedIn group: tradeandexportme

If you’d like to receive a free copy of Trade and Export Middle East every month, e-mail rajeesh@cpidubai.com requesting a subscription. *Clarification(June 2012): Ranjeev Menon, Group CEO, GWC, was misspelt in the previous issue as Rajiv Menon.

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GLOBAL WATCH: International news and trends with domestic trading relevance.

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REGIONAL TALK: A snapshot of the developments and trends in the Middle East region.

HOW TO: Izabella Szadkowska, Senior Associate, Corporate & Commercial Department, Al Tamimi & Co, explains to us the process of listing a business on the Saudi Stock Exchange.

FREE ZONES: In a short span of 17 years, Hamriyah Free Zone (HFZA) has moved from 67 companies to 5,700. Aparna Shivpuri Arya got talking to Rashid Al Leem, Director General, HFZA, to know more about the vision and unique characteristics of the zone.

LOGISTICS: In this globalised economy, the supply chain is a key enabler of a successful business strategy. Aparna Shivpuri Arya, met up with Frank Courtney, Chief Executive – EMEA, Barloworld Logistics to know more about their customised solutions and holistic approach to supply chain management in the region.

trade talk

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community

focus

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NON TARIFF BARRIERS: Free trade is not only about the tariffs, but more importantly about the non-tariff barriers (NTB). Trade and Export Middle East explains the various types of NTBs that you need to be aware of.

FINANCE: Keeping in mind the turbulent time that traders have been facing, Iskandar Najjar, CEO, Alpari ME DMCC, in the first of a multi-part series, explains the concept of hedging for traders.

EXPORT: Venturing into the global marketplace is a lucrative activity with unbounded potential and the ability for a company to become a large multi-national corporation. However, any foray into global markets has to be undertaken when a firm is ready and capable. Dr. Ashraf Mahate, Head, Export Market and Intelligence, Dubai Exports and Vice Chair, Economic Policy Committee, Dubai Economic Department, explains to us why is it important to be ready before going overseas.

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INDUSTRY: This month we take a look at a very fascinating industry – that of armoured cars. With the turmoil of the Arab Spring, we thought it would be a good time to know more about this industry.

Aparna Shivpuri Arya got talking to Guerman Goutorov, CEO, Streit Manufacturing, to know about this fascinating industry and their journey in the Middle East.

40

COUNTRY: Lebanon, with its official non-interventionist stance toward private investments, offers one of the most liberal investment climates in the Middle East. The Investment Development Authority of Lebanon educates us about the tax regime in the country and the benefits it offers.

EVENTS CALENDAR: A snapshot of exhibitions and conferences around the world and the region, which can help you spend less time planning and more time attending.

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REPORT: The World Economic Forum recently released its report Global Enabling Trade Report 2012 – reducing supply chain barriers.

Trade and Export Middle East brings snapshots from the report on the problem of illicit trade that the supply chain faces and how to tackle it.

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TRADE SECRETS: Trade and Export Middle East with Tickbox Surveys Middle East is conducting a survey to gauge the quarterly performance of traders across the region. Do be a part of this.

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COMMODITY WATCH: Your guide to all things commodity.

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5

Updates global watch

Russia and Kuwait announce the launch of an automatic co-investment mechanism During a meeting at the St. Petersburg International Economic Forum between Russian President Vladimir Putin and the heads of leading global investment and securities firms, the Russian Direct Investment Fund (RDIF) and Kuwait Investment Authority (KIA) announced the launch of an automatic co-investment mechanism.

The initiative, which will see KIA invest USD 500 million alongside the RDIF, was announced by Bader Mohammed Al-Saad, Chief Executive Office and Managing Director, KIA, in the meeting

with President Putin. The co-investment mechanism means that KIA will co-invest in all RDIF transactions.

Mr. Al-Saad commented, “Russia’s economy will continue to grow faster than those of developed countries.

Co-investing with the RDIF offers us a good opportunity to invest in the real economy and gain diversification across all sectors. This is not a short-term investment in the stock market prone to volatility; it is an excellent and fair partnership with the RDIF and there is Russian government support for this

partnership. We highly rate the skilled management team of the RDIF.” Kirill Dmitriev, Chief Executive Officer of the RDIF, said, “Automatic co-investment by the Kuwait Investment Authority, one of the largest and most respected investors globally, significantly increases the funds the RDIF can invest in the Russian economy.

We are delighted to be announcing a major co-investment with a leading fund from the Middle East, already second for the RDIF, as historically that region of the world has not been well represented among foreign investors in Russia.”

Open trade can boost agricultural productivity, says new study

An inter-agency report published in June 2012 recommends that G20 governments should “demonstrate leadership in multilateral negotiations to strengthen international disciplines on all forms of import and export restrictions, as well as on domestic 6

JULY 2012

support schemes that distort production incentives”.

Early in 2012 Mexico, as G20 President, invited international organisations to examine practical actions that could be undertaken to sustainably improve agricultural productivity growth, in particular on small

family farms. The preparation of this report, coordinated by the United Nations Food and Agricultural Organisation (FAO) and the Organisation for Economic Co-operation and Development (OECD), is a collaborative undertaking by Bioversity International, the Consortium of International Agricultural Research Centres, the FAO, the International Fund for Agricultural Development, the International Food Policy Research Institute, the Inter-American Institute for Co-operation on Agriculture, the OECD, the United Nations Conference on Trade and Development, the UN High Level Task Force on the Food Security Crisis, the UN World Food Programme, the World Bank and the WTO.

The report, which was used as a key input in the discussions of the G20 Agricultural Group, states that “substantially reducing trade and production distorting domestic support, improving market access opportunities, eliminating export subsidies and strengthening the disciplines on export restrictions will improve the enabling environment for investment and productivity growth”.

It also notes the critical role played by the WTO’s Sanitary and Phytosanitary Agreement in contributing to the reduction of production losses due to pests and diseases, and the need to support capacity building in this field, including through the Standards and Trade Development Facility.

Extension programme launched in China

Nineteen ITC-certified trade advisers in China have embarked on further training in order increase their skills enabling them to coach other trainers. The training is an upgrade from Enterprise Management Development (EMD) Adviser title that the trainees received after completing ITC’s Certified Trade Advisers’ Programme

(CTAP) in June 2010. After completion of the programme they will be certified as Senior EMD Advisers.

The extended training programme was launched in response to a request by the China Council for the Promotion of International Trade (CCPIT), which wanted to increase the know-how of the first trainees and allow them to not only provide guidance to managers of small and mediumsized enterprises, but enable them to also coach other trainers.

The 19 trainee-trainers are being taught to build capacities for training and certifying their own advisers and trainers in their local languages through their network of subcouncils, branches and members. As part of the programme, which is funded entirely by CCPIT, related ITC tools and methodologies have been translated to Chinese.

The first workshop was held on 7-11 May and has since been supplemented with fieldwork in enterprises where the trainees have gained further practical knowledge and, under the supervision of coaches, implemented what they covered in the workshop. Fieldwork took place in Beijing, Shijiazhuang and Nanjing with ten enterprises participating in the programme.

These enterprises will also benefit from business diagnostic services carried out by the trainees in an effort to advance their international competitiveness.

A second workshop will be held on 1-7 July. From 3-7 August the trainees will rehearse their training programmes that they will carry out between 15th October and 2nd November. The trainees are expected to achieve their certification at the end of November.

Canada invited to join the Trans-Pacific Partnership The Trans-Pacific Partnership represents an entry into what might become the world’s most important trade pact. The key to winning any benefits for Canadian business, however, depends on what the multinational trade pact can achieve.

For Canadian industries such as the struggling manufacturing sector or even the more sure-footed financial services industry, an exclusion from the TPP could have prevented Canadian companies from being competitive with global rivals. With the failure of the Doha round of the World Trade Organization free-trade talks in 2008, the TPP stands as the most

likely vehicle for a global deal that would reduce country-specific protectionist measures and subsidies, which would increase international trade.

Now that Mexico has been invited and Japan has signaled a strong interest in joining, the TPP might one day make other deals such as the North American free-trade agreement, irrelevant.

Just as important, if Canada had failed to win an invitation to the negotiations, consumers and businesses might have missed out on the opportunity to gain access to tariff-free goods and services from fastgrowing Asian economies.

As it stands now, the TPP

remains in its infancy. Its nine current members – the original four (Brunei, Chile, New Zealand and Singapore) as well as the five later entrants (Australia, Peru, Malaysia, the United States and Vietnam) – have yet to conclude any major agreements.

Canada has no bilateral free trade agreements in Asia. A deal

with India, which is its most likely free-trade partner in the region, is years away. Canada has begun early-stage bilateral talks with Japan on a free-trade deal. However, the potential inclusion of Japan in the TPP would represent a much faster path to free trade with the world’s third-largest economy.

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Updates REGIONAL TALK

Dubai Chamber study highlights robust economic growth A recent Dubai Chamber of Commerce and Industry study indicates that despite heightened regional geopolitical risks, four out of six GCC countries and the UAE in particular, are poised to witness robust economic growth this year in comparison to the previous year. According to the latest International Monetary Fund (IMF) data combined

with data from national authorities, the UAE will see a year on year GDP growth of 4.5% in 2012 while Kuwait, Oman and Bahrain will record a year on year growth of 4.9%, 4% and 3% in 2012 respectively (Table 1).

Also, the continued upward trajectory of oil prices should strengthen the fiscal and current account balances of GCC countries, although

Table 1: Main highlights of Real GDP growth and Growth of the Hydrocarbon Sector

Hydrocarbon growth % YoY

Real GDP % YOY 2010

2011e

2012f

2010

2011e

2011f

GCC

5.5

7.5

5.4

5.5

6.3

5.7

Saudi Arabia

4.6

6.8

5.1

2.2

4.3

6.3

UAE

3.2

3.2

4.5

5.3

3.4

5.4

Kuwait

2.3

4.3

4.9

1.9

4.9

5.3

Qatar

16.6

21.5

9.4

28.8

28.2

6.2

Oman

4.5

3.8

4.0

7.7

3.4

3.0

Bahrain

4.5

2.2

3.0

1.8

3.4

1.9

Source: Dubai chamber based on data from IMF and National Authorities

to different magnitudes. In Saudi Arabia, Kuwait and the UAE, larger fiscal surpluses and greater accumulation of reserves are projected. As such, for the GCC as a whole, IMF projects that fiscal and current account surpluses will stand at 13.1% and 22.2% of GDP in 2012 respectively.

Focusing on the developments of UAE economy, recent announcements indicate a general increase in consolidated public spending.

The Abu Dhabi Executive Council (ADEC) has ratified its investment strategy pointing out the need to finalise a number of projects such as the Khalifa Port and the development of the Khalifa Industrial Zone. Added to that, the UAE government has recently allocated additional AED 16.8bn (USD 4.6bn) in

support of Aldar through property purchases and debt cancellation.

The study reveals that the main driver behind the emirates’ economic prosperity is the strategy of generating new business opportunities through diversification.

Specifically, the emirate’s economic prosperity and stability has been focused on the trade, tourism and logistics sectors supported by its buoyant infrastructure and its growing reputation as an international business hub. Together, logistics, trade, tourism, and transportation accounted for almost 60% of Dubai’s GDP in 2011. The aforementioned sectors have recorded substantial growth backed by the significant increase in passenger traffic through Dubai International Airport in 2010 and 2011.

Brazilian food exports to the Arab world on a rise

The Arab-Brazilian Chamber of Commerce (ABCC) has revealed that Brazilian food exports to the Arab countries totaled USD 10.6 billion in 2011, representing a significant percentage of the USD 80 billion worth of Brazil’s total food exports. Among the most exported food products from Brazil include sugar, meats and cereals, followed by citrus, coffee, beans, wheat and poultry.

Leveraging the strong trade relations between Brazil and the Arab 8

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countries, the Arab-Brazilian Chamber of Commerce and Apex Brasil will be organising a specialised networking event titled Food Sector Buyer Project 2012 in Sao Paulo, Brazil from 9-14 July. Following a recent ABCC-lead trade mission to the UAE, Kuwait and Jordan, the upcoming event has already generated major interest from Arab companies involved in the food and beverage business, given the business matchmaking platform that the event presents.

Indonesia and the UAE strengthen ties

A high level delegation from Indonesia recently visited the Department of Economic Development (DED) in Dubai and held extensive discussions on enhancing bilateral co-operation in the trade and investment sectors. The delegation, lead

by His Excellency Mansyur Pangeran, Indonesian Consul General in Dubai, met with senior DED officials including His Excellency Sami Al Qamzi, Director General, and exchanged views on investment opportunities and ways to expedite UAE investment projects in Indonesia.

The Indonesian Consul General noted that the trade balance between Indonesia and the UAE was around USD 1.9 million in 2011 while UAE investment in Indonesia reached USD 25.1 million, adding that both the numbers do not reflect the actual potential in the respective areas. The two sides also highlighted the importance of institutional cooperation on exchange of business visits and best-practices as well as information on laws, regulations, and opportunities on trade, tourism, investment and services (TTIS).

The Indonesian delegation explained the new laws and regulations

restricting export of raw material from Indonesia, particularly in the mining and agriculture commodities sectors.

According to the law, Indonesian government encourages downstream industries to produce value-added export products, such as coal briquette, gold jewelry, furniture (rattan or wood), canned fruits, etc. These industries will remain open to long term foreign direct investment and provide more job opportunities for local communities.

DED officials were also briefed on the Master Plan for Acceleration and Expansion of Indonesia Economic Development (MP3EI) 2011-2025 Programme, endorsed by President Soesilo Bambang Yudhoyono in May 2011. Improving the investment climate in Indonesia through debottlenecking, regulations, incentives and the acceleration of infrastructure development is one of the main targets in the MP3EI. MP3EI has eight main programmes and 22 main economic activities. In addition, six economic corridors (Sumatra, Java, Bali and Nusa Tenggara, Kalimantan,

Sulawesi and Papua) are identified as growth centres and are expected to boost economic development throughout the nation. Investors and businesses can choose their desired sectors and preferred regions according to their business specialisation.

“Indonesia and Dubai have great significance in global trade as strategic gateways to their respective regions.

Indonesia’s commendable economic performance during the global downturn phase has especially been a major draw for businesses looking for an efficient hub to service the lucrative ASEAN market.

Investors in the UAE will be interested in expanding their presence in Indonesia,” said Al Qamzi.

“Meanwhile, Indonesian SMEs can make use of DED’s initiatives to promote business and entrepreneurship to market Indonesian franchise brands in Dubai and the GCC,” Al Qamzi added.

DED has also agreed to forward information on the MP3EI programme and potential investment opportunities in Indonesia to its member database, which includes thousands of registered companies.

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Updates REGIONAL TALK

Dubai's foreign trade reaches AED 298.1 bn in the first quarter of 2012 Dubai’s non-oil foreign trade has achieved 6.6% growth during the first quarter of 2012, amounting to over AED 298.1 bn, compared to AED 279.7 bn achieved in the first quarter of last year, according to latest statistics released by Dubai Customs.

H.E. Ahmed Butti Ahmed, Executive Chairman of Ports, Custom and Free Zone Corporation, Dubai Customs Director General, said, “The continued growth in Dubai’s foreign trade reflects the strength and resilience of the UAE economy, thereby affirming the wise approach adopted to support economic diversity.”

Ahmed Butti further explained that the statistics presented include non-oil direct trade, free zone trade and customs warehouses. “The continued growth of Dubai’s foreign trade has mainly resulted in the development of modern customs systems that ensures offering a wide range

of high quality services to the private sector and shipping and logistics companies,” added Ahmed Butti.

The continuous improvement in the services provided to customers has become a key factor in placing the UAE as one of the countries in top ranks of world economic reports over the last few years. In fact, a recent report from the World Bank entitled Doing Business Report 2012 has ranked the UAE fifth in the world and first among Arab countries in the area of facilitating crossborder trade.

The country has also been ranked in the sixteenth place in this year’s edition of the Global Competitiveness Report, an annual report published by the International Institute for Management and Development. The report shows obvious growth as compared to the previous year when it was ranked 28th.

The UAE was also given the global ranking of third place in the Global Competitiveness Report 2011 – 2012 of the World Economic Forum, where it was cited for its security, stability and its positive business environment. These achievements reflect the combined efforts of all government departments to reinforce trade activity as Dubai foreign trade represents a big stake of the country’s non-oil trade with the world by nearly 80%.

Ahmed Butti has also revealed that Dubai’s imports reached AED 175.2 bn during the first quarter of 2012, as compared to the AED 177.2 bn posted over the same period in 2011. The figures presented represent a growth rate of 5.4% while the value of exports and re-exports over the first quarter of 2012 amounted to over AED 122.9 bn, which shows a growth of 8.5% from the AED 113.4 bn entered during the same period in 2011.

Promoting green economy The United Arab Emirates has signed an agreement to convert the Global Green Growth Institute (GGGI) from a Korean Foundation to an international organisation, which will now include the membership of 17 countries from around the world.

The event took place on the sidelines of the United Nations Conference on Sustainable Development being held in Rio de Janeiro, Brazil, which has held in-depth discussions on the concept of green economy as one of the mechanisms to implement sustainable development.

Dr Sultan Ahmed Al Jaber, UAE Special Envoy for 10

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Energy and Climate Change and Chief Executive Officer of Masdar, who officially represented the UAE during the signing ceremony, said, “We are pleased to be part of this new agreement that will see GGGI transition to an international, multistakeholder organisation that will support the global paradigm shift towards greener economies. We are confident that by building bridges of cooperation between members of the international community through GGGI, our shared vision of increasing political commitment, participation of both the private and public

sector, and overall increase in awareness of sustainable development will be realised.”

In addition to the UAE, 16 countries have signed the agreement to support GGGI’s expansion, including: South Korea; Guiana; Paraguay; Kiribati; Australia; Denmark; the United Kingdom; Vietnam; Mexico; Norway; Cambodia;

Philippines; Costa Rica; Papua New Guinea; Ethiopia; and Qatar.

Attending the signing ceremony were delegates from each of the participating countries. The UAE delegation included the Ministry of Foreign Affairs, the Ministry of Environment and Water and the Office of Cabinet Affairs, and Masdar officials.

Updates REGIONAL TALK

Germany-Sharjah explore business opportunities The German Emirati Joint Council for Industry & Commerce (AHK) in collaboration with the Sharjah Investment and Development Authority (Shurooq) and Hamriyah Free Zone in Sharjah held a business and networking luncheon at Al Qasba, Sharjah in June 2012.

The day’s proceedings featured a number of eminent speakers including HE Klaus HD Ranner, Consul General of the Federal Republic of Germany in Dubai, H.E. Marwan bin Jassim Al Sarkal, Shurooq CEO, H.E Hussain Mohammed Al Mahmoudi, Director General of the Sharjah Chamber of Commerce and Industry, Mr. Humaid Al Khatiri, Commercial Director of Sharjah Airport International Free Zone (SAIF Zone), Dr. Peter Göpfrich, AHK CEO, and Mr. Martin

Böll, Bureau Chief, Germany Trade & Invest Dubai.

Dr. Peter Göpfrich, CEO of the German Emirati Joint Council for Industry (AHK), remarked that the purpose of the event was to strengthen the relationship between the AHK and the Emirate of Sharjah and to establish a “Sharjah Chapter” of the German Emirati Joint Council for Industry & Commerce (AHK). The event, which aimed at creating greater understanding of the needs and expectations of the Sharjah business community and integrating them within the framework of the Chapter, was attended by a large number of existing AHK members, as well as numerous other German companies based in Sharjah, local authorities and Emirati businesses interested in cooperation with German companies.

Shurooq CEO, H.E Marwan bin Jassim Al Sarkal commented, “The relationship between Shurooq and the German Emirati Council is one that we have always valued highly, and the establishment of the Sharjah Chapter of AHK is yet another milestone in our journey together, one that we are very happy to be witnessing.”

Al Sarkal went on to observe that Germany was the UAE’s one of the most important trading partner within the Eurozone, while the UAE in turn represented the most important market for Germany in the MENA Region, with more than 800 German companies currently established in the UAE and the volume of trade between the two countries in 2011 totalling USD 11 bn.

Gulf Warehousing Company and ELTETE Middle East sign Qatar Agreement The Gulf Warehousing Company (GWC) has concluded an exclusivity agreement with ELTETE Middle East (EME) covering the region of Qatar for carton board pallets as well as a variety of other transport packaging materials. ELTETE, the 35-year European pioneer of Carton board Transport Packaging Technology, has 19 production facilities worldwide and the Qatari market will be serviced from the first production facility in the Middle East, located in Dubai.

ELTETE specialises in 100 % recyclable transport packaging material out of laminated compact carton board. The company is one of the leading producers 12

JULY 2012

of sustainable packaging solutions in the world.

The most prominent of the products is the APPA Pallet (Automatic Paper Pallet Assembly), uniquely made out of strengthened and fully recyclable carton board,

these pallets can replace the conventional wooden pallets for transport and export requirements.

“We are very happy to partner with EME and believe that there is a growing market need for APPA pallets in

Qatar. The APPA pallet is an excellent environmentallyfriendly alternative to wooden, plastic or other pallets. Due to its light weight, you can make significant savings in transport cost, both in land and airfreight. APPA pallets are ideal for export shipments as they are ISPM-15 compliant and need no treatment as wood does,” said Ranjeev Menon, Group CEO of GWC. Aiman Al Shehabi, CEO, EME, said “We believe we have found the right partner to carry the product to the Qatar market. The market for carton pallets grows exponentially once local production, quality, competitiveness and delivery reliability has been established”.

TRADE TALK HOW TO

Are you on the list?

Despite subdued capital markets throughout the GCC, there has been some activity in the Kingdom of Saudi Arabia (KSA) in new equity listings.

Izabella Szadkowska, Senior Associate, Corporate & Commercial Department, Al Tamimi & Co, explains to us the process of listing business on the Saudi Stock Exchange.

O

n 22nd January 2012, the Board of the Capital Market Authority (CMA) of the KSA passed a resolution to amend the CMA Listing Rules of 4th October 2004 (New Listing Rules).

The New Listing Rules provide a legal framework for the listing process on the Saudi Stock Exchange/Tadawul

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(SSE), sets out conditions for registration and admission to listing, capital increase and reduction requirements for listed companies as well as continuing obligations of listed companies.

The only issuer, to date, to have listed its shares on the SSE under the New Listing Rules is Najran Cement

Company that offered 85 million shares representing 50% of its share capital, at SAR 10 per share, for subscription (offer period closed on 22nd April 2012). The offer was oversubscribed by 306.11%.

The subscription proceeds that the offer attracted amounted to SAR 2.6 billion.

Saudi Airlines Catering Company also proposes to list 30% of its share capital.

The offer closed on 24th June 2012, upon finalisation of the book-building process.

This article summarises the key requirements that companies which are considering applying for registration and admission to listing on the SSE (Listing) must meet under the New Listing Rules.

LISTING CONDITIONSi 1. KSA Issuer – Primary Listing a. Relating to the issuer Under the New Listing Rules, the issuers are subject to the following conditions: • Listing vehicle: The issuer must be a KSA joint stock company.

• Operations: On an application for Listing, the issuer must have been carrying on, either by itself or through one or more of its subsidiaries, a main activity for at least three financial years under substantially the same management.

• Financial track record: On an application for Listing, an issuer must have published its audited financial statements covering at least the previous three financial years, prepared in accordance with the accounting standards issued by Saudi Organisation for Certified Public Accountants. The period covered by the most recent audited financial statements must have ended no more than six (6) months prior to the date of approval of the prospectus.

• Restructuring halt: On an application for Listing, where the issuer has undergone

ABOUT

Izabella Szadkowska is a Senior Associate in Al Tamimi & Company’s Corporate & Commercial Department. She is a Barrister and Solicitor of the High Court of New Zealand. Having practiced with international law firms before joining Al Tamimi & Company, Izabella has about eight years of experience providing general corporate, equity capital markets and mergers & acquisitions advice.

Recent transactions Izabella advised on include an acquisition of shares in NASDAQ Dubai by the Dubai Financial Market, acquisition of shares in GoNabit by LivingSocial, Hungry Machine, Inc. and purchase of a minority stake by Olympus Capital in DM Healthcare group (USD 100 million).

restructuring or has been subject to an alteration in capital using external financing (including – any shareholder current account), the issuer shall not be eligible to apply for registration and admission to listing until one financial year has elapsed since the date of completion of the restructuring/ alteration in capital.

• Management: The senior executives of the issuer must have an appropriate expertise and experience for the management of the issuer’s business.

• Working capital adequacy: An issuer must have, on its own or with its subsidiaries, a sufficient working capital for the 12 months immediately following the date of the publication of the prospectus.

• Interim financials: The issuer must provide the CMA with reviewed interim financial statements if such statements were issued during the application period.

It is worth noting, an application for Listing may be accepted if it does not meet these requirements if the CMA is satisfied that the Listing will be in the interest of investors and that the investors have received the necessary information to arrive at an

Apart from the general ownership restriction, KSA law restricts investment by non-KSA nationals (natural and legal persons) in companies conducting certain business activities.

informed judgment/decision concerning the issuer and the securities that are the subject of the application.

b. Relating to shares The shares, to qualify for Listing, must: comply with KSA law and be duly authorised according to the requirements of the issuer’s articles of association or other constitutional documents; be freely transferable and tradable;ii and be registered and settled centrally through the Depository Centre of the SSE. • Liquidity: There must be at least 200 public shareholders and at least 30% of the class of shares that are the subject of the listing application must be owned by the public, at all times.iii • All shares in one class: Where none of the shares of a particular class are listed, the application for Listing must relate to all shares of that class issued or proposed to be issued.

• Market value: Except where shares of the same class are already listed, at the date of Listing the expected aggregate market value of all shares to be listed must be at least SAR 100 million.iv

2. Non- KSA Issuer – Secondary Listing Last but not least, a foreign issuer whose securities are listed in another regulated exchange may also apply for Listing. The non-KSA issuer must be a non-KSA company that has its shares listed on an exchange in another jurisdiction. The CMA may admit the securities to listing provided that, in its opinion, the listing rules applicable in the JULY 2012

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TRADE TALK HOW TO

foreign issuer’s jurisdiction of listing are at least equivalent to the New Listing Rules.

The CMA decision to approve or reject Listing application by a non-KSA issuer is absolutely discretionary.

THINGS TO KEEP IN MIND In addition to the requirements set out above, the following aspects of listing companies on the SSE are worth keeping in mind:

1. Ownership Restriction In general, shares in KSA issuers listed on the SSE can be offered to GCC nationals and KSA residents who are not KSA nationals (both natural and legal persons). Non-KSA residents can invest in the SSE under swap arrangements whereby a KSA authorized personv appears as a registered owner of the shares and the non-KSA resident derives economic benefit from the said investment.

No voting rights are able to be exercised in respect of shares subject to a swap arrangement.

The CMA has a right, however, to restrict an offer to KSA nationals, only.

Apart from the general ownership

restriction, KSA law restricts investment by non-KSA nationals (natural and legal persons) in companies conducting certain business activitiesvi, e.g. oil exploration, drilling and production, manufacturing of military equipment, devices, uniforms and civilian explosives, real estate investment in Mekkah and Madina, real estate brokerage, recruitment and employment services, certain printing and publishing and media services.

If a company involved in any of these activities lists its shares on the SSE, the shares will be offered for subscription to KSA nationals only.

2. Sell Down The KSA law allows that Listing on the SSE happens by way of a capital increase or a combination of a capital increase and a sell down of shares by the founding shareholders (conditions apply).

3. Book-Building The price at which the SSE shares are offered is a result of a book-building process.

The book-building, being an internationally preferable method of generating, capturing, and recording investor demand for shares in the context of public offerings, has been well established in the KSA. Although the price range is set by the CMA in conjunction with an advise from the financial advisors (whereas in Western markets there is no regulatory involvement in the valuation/ price discovery process), the KSA book-building model has proved to work well.

CLOSING REMARKS The Listing requirements set out under the

Last but not least, a foreign issuer whose securities are listed in another regulated exchange may also apply for Listing.

The non-KSA issuer must be a non-KSA company that has its shares listed on an exchange in another jurisdiction.

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New Listing Rules appear clear and flexible.

Although still largely untested due to their recent enactment, the New Listing Rules seems to be moving closer to world’s best practice.

We are yet to see which direction the New Listing Rules will develop in, under direction of the CMA and the SSE. As demand for Najran Cement Company shares indicates, there remains an appetite for shares in KSA companies, notwithstanding the volatility seen in global equity markets in 2012. It is commonly believed that KSA nationals are cautious to enter into world equity markets due to the global financial crisis and losses previously suffered. As a result of this and their own booming economy, KSA nationals are more attracted to investing in their own share market.

In any event, enactment of the New Listing Rules can be seen as the CMA’s intention to respond to the expectations of investors in challenging times for markets.

This will certainly let the SSE- listed companies as well as investors in their stock collect the fruits, before we know.

As Archie Randolph Ammons (1926 – 2001) once said: “I must stress here the point that I appreciate clarity, order, meaning, structure, rationality: they are necessary to whatever provisional stability we have, and they can be the agents of gradual and successful change.” i Part 3, Articles 11-17 of the New Listing Rules. ii Any restriction on transferability must be

approved by the CMA and all investors must be provided with appropriate information to enable dealings in such securities to take place on an open and fair basis. iii The CMA may permit a lower percentage or a

lower number of shareholders if it considers that it is appropriate in view of the number of shares under the same class and its distribution to the public. iv The CMA may admit shares of a lower value if it

is satisfied that there will be a sufficiently liquid market for the shares concerned. v Licensed by the CMA to conduct a securities business. vi Known as the “Negative List” issued by the

Supreme Economic Council pursuant to Article 3 of the Foreign Investment Law 2000.

TRADE TALK FREE ZONES

The magnificent seven In a relatively short span of 17 years, the Hamriyah Free Zone Authority (HFZA) has forged a path that has attracted to date, over 5,700 investors, from 140 countries and it continues to promote entrepreneurship and economic development. Aparna Shivpuri Arya got talking to Rashid Al Leem, Director General, HFZA, to understand his vision and what makes this free zone unique.

P

lease give us some background about the free zone.

Sharjah is the third-largest of the United Arab Emirates. It is also rapidly becoming a major industrial base within the UAE as it is the only Emirates with ports on the Arabian Gulf’s west coast and east coast, providing direct access to the Indian Ocean. One of the jewels in its crown is the Hamriyah Free Zone.

Hamriyah Free Zone Authority was established by an Emiri decree issued in November 12, 1995. Its location gives the free zone a unique geographic and time zone advantage backed by a secure and fully convertible currency and a multi-access to neighbouring and global countries through 18

JULY 2012

land, sea and air. We are fast becoming one of the cornerstones of the United Arab Emirates industrial development.

HFZA is challenged to provide competitive incentives and unique opportunities to establish a business in a tax free environment, full company ownership, exemptions from all commercial levies and repatriation of capital and profits. The free zone manages an area of approximately twenty two million square meters of prime industrial and commercial land and a 14 meter deep water port which includes room for expansion.

We started with 67 companies and it was an empty land and I met with His Highness to understand his vision and we started pushing ourselves in this direction of being

a business hub. Service is the driving force for us, so red carpet treatment is given to all the companies.

How has HFZA helped in consolidating Sharjah’s economic growth?

Generally speaking, when we trace back to 600-700 years, we are strategically located in the Gulf and we have good communication with our neighbours, for example, India. Even the locals here are driven by trade. Free zone is a value addition and the beauty is that all business activities are diversified- trade, commercial, services and industries and we give licenses to all. Those who want to go for small industries can do that, those who want to

trade can also setup here. So we follow the same rhythm as the Emirate and trade is a very important factor for Sharjah.

Most of the global brands have their representation here which shows that UAE is important to them. You see faces from different parts of the world, and this gives you a sense of inspiration.

And we have also withstood the uncertainities in the region. The Arab spring has not affected us specificallyhowever uncertainty is everywhere and it’s more economic than political but at the end of the day life has to go on and the governments here are doing a good job of networking and promoting business opportunities.

What kind of facilities do you provide to companies wanting to set up business in HFZA?

The free zone provides the following facilities: • Access to 14 meter deep water port and 7 meter deep inner harbour • Land lease for 25 years renewed for a similar period • Pre-built warehouses, factories and office units for lease • On-site accommodation for investors’ personnel • Transportation via road, three sea ports and Sharjah International Airport • Highly developed infrastructure and telecommunications links • Liberty for personnel recruitment and economical workforce • Affordable cost of living Being quality conscious and ISO certified, Hamriyah Free Zone’s procedures for

setting up a company are easy and well streamlined. The simple procedures and formalities involved make it possible to obtain a license within 24 hours of submitting all requisite documents.

Opportunities are endless at the free zone.

If you are looking for quality, efficient facilities and services, reliability and cost effective solutions, your choice should certainly be Hamriyah Free Zone – Sharjah.

We also have a port, so companies can get their raw material directly here. This is added value to our customers who can see the process and know what is happening at every stage of the business cycle.

What are the incentives given to businesses setting up in HFZA?

We provide a number of investment incentives to investors, such as: • 100% foreign company ownership • 100% import and export tax exemption • 100% exemption from all commercial levies • 100% repatriation of capital and profits • 25 year leases available, renewable for a further 25 years A further advantage for investors is the

HFZA has formulated explicit policies and designed special programmes to strengthen SME sector – officially called the Hamriyah SME Zone, an array of business incentives that includes 100% ownership, full repatriation of capital and profits, no taxes or commercial levies, 25 years long lease agreement and highly develop infrastructure to encourage SMEs to develop further.

free zone’s proximity to rich natural-gas reserves. The gas field is just 30km away, and the Hamriyah Free Zone Port already has a large Liquefied Natural Gas (LNG) terminal. Such readily available resources are supported by a number of free zone enterprises that specialise in the recycling of scrap steel, aluminium, used tyres and other raw materials. Overall, the Hamriyah development represents a highly cost-effective and attractive free zone opportunity to investors.

What has been your marketing strategy?

First of all, I always believe in face-to-face interaction. Trust doesn’t come with online marketing. We do not have a tangible product, but we offer a service and I cannot bring Hamriyah with me. So it is very challenging. That was a difficult part to begin with, so we needed to build trust and know the expectations of our customers, to facilitate their business environment.

We also needed to make sure that they are aware of the incentives. So we had to start from the beginning and help them think that it is the right decision. We still follow this approach since we know that it takes a lot of time and thinking for the companies and the decision is tough so we have to offer the businesses everything that we have.

What makes HFZA stand apart from the other free zone?

The important step that we took was the integration among the industries. We found a way to link the SMEs, the micro and the big companies together. This means we have provided offices for these JULY 2012

19

TRADE TALK FREE ZONES

At the end of the day-customer is the king or the queen. When you deal with one leadership it gives you some sense of satisfaction. So if I am an investor in the free zone and I have to deal with the port, customs and if I am dealing with the same decisionmakers the work flow is much much easier.

Rashid Al Leem, Director General, HFZA

startups, built distribution centres and warehouses. We also started clustering the companies and I came up with a concept called “zoning the zone”, so companies from the same industry were put together because they understand each other’s language. And this is unique to HFZA and has brought a lot of companies here as it saves communication and transport costs.

HFZA has formulated explicit policies and designed special programmes to strengthen the SME sector – officially called the Hamriyah SME Zone, an array of business incentives that includes 100% ownership, full repatriation of capital and profits, no taxes or commercial levies, 25 years long lease agreement and highly developed infrastructure to encourage SMEs. Hamriyah SME Zone offers seven strategic clusters comprising of the Oil & Gas Zone; Timber Land; Maritime City; Petrochemical Zone; Construction World; Perfume Land; and Steel City complimented by E-Office packages. This innovative approach has already attracted hundreds of SMEs from across the globe.

Also, we have just introduced an online visa facility to facilitate investment by reducing time, effort and cost. Through this system investors are able to manage their applications, employees and other services offered by HFZ Visa Department while sitting in their offices or home. Online visa facility has reduced the normal visa time to 2-3 working days while an urgent visa can be issued in 5-6 working hours.

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Online visa system is in line with HFZA green initiatives which will reduce the paper work and its consumption.

Now that you are handling the port, HFZA and the custom, how do you see the synergy between these three entities?

At the end of the day-customers are the most important. When you deal with one leadership it gives you some sense of satisfaction. So if I am an investor in the free zone and I have to deal with the port, the customs and, if I am dealing with the same decision-makers the work flow is much easier. His Higheness wanted this to happen. As a result, all the three service providers are together and the customer has the support in a very efficient way. We see this as a big benefit. We have both a seaport and an airport and all customers are using this for their goods and services and for their travel.

Does HFZA promote Corporate Social Responsibilty (CSR)?

We believe social accountability is a strategic practice, and key to organisational success as it contributes to both a healthy bottom line and long-term sustainability.

HFZA therefore initiated Hamriyah She-Q Club and Hamriyah Green Team as two of our non-profit, non-formal forums which focus on shared learning, continuous training, environmental campaigns and workshops for community development programmes in the areas of safety, health, environment and quality.

At our recently conducted Free HSE Awareness Training Programme for HFZA investors’ labor/workforce community, qualified speakers, trainers

and presenters briefed members and participants on the importance of working safely in confined spaces. Statistics reveal that globally, on average, two employees do not return home each week due to confined space accidents.

Hamriyah Green Team conducted the 2nd Hamriyah Heat Stress Management Campaign 2012 in an effort to educate all workers – particularly those working outdoors – about the dangers of heatrelated illnesses.

By involving, engaging and working closely with QHSE professionals from HFZA companies, business leaders at the free zone and the HFZA grass roots community in every aspect of our CSR activities, we strive to ensure that our sincere efforts towards sustainable development are on the right path.

What does the future hold for HFZA?

We are working on a logistics city, which started three months back. This will be mainly a warehousing facility built on green-building certification. Phase one of it will be completed by year end and it will be the first warehousing facility in Sharjah that will be green-building certified – which will be a milestone.

As we enter the second quarter of the current year, I am proud to announce the registration of 700 new investors from 80 countries. With 5,700 companies from across 140 countries now operating out of Hamriyah, I believe, the measure of our success lies not in the numbers but in being hands-on with the emerging social concerns and priorities of both our internal and external stakeholders, and making a significant, visible difference to the HFZA community.

TRADE TALK LOGISTICS

Do it right!

In this globalised economy, the supply chain is a key enabler of successful business strategy. Aparna Shivpuri Arya, met up with Frank Courtney, Chief Executive – EMEA, Barloworld Logistics, to know more about their customised solutions and holistic approach to supply chain management in the region.

P

lease give us some background about Barloworld?

We celebrated 110 years of Barloworld this June. This impressive milestone reminds us of our distinguished and successful heritage and also motivates us to continue to innovate, adapt and build 22

JULY 2012

great businesses for the future. We are South Africa’s leading logistics and supply chain management companies. Barloworld Logistics expanded from a strong home base in South Africa into the global logistics arena, especially with regards to Freight Management & Solutions, with niche services between Asia, Africa and

Europe. Some of our products are services include – air freight, sea freight, sea air to Europe (SAT), overland transportation, project cargo and so forth.

Our combined capabilities allow us to look at the supply chain in a holistic manner. We have been going from strength to strength in this industry and hope to be

TRADE TALK LOGISTICS

Barloworld Logistics’ combined capabilities

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Supply chain software • E service (ERP & WMS Portal) • Inventory optimisation • Forecasting, Demand planning, S&OP planning • Network design and modeling • CO2 measurement and optimisation

around for another 110 years!

Our presence in Africa is currently predominantly in southern Africa.

Barloworld Logistics’ head office is in Johannesburg, employing over 1,500 people in southern Africa and footprint of 67 offices internationally. We offer a full suite of supply chain services in this region.

Our solution from the East into Africa includes air freight, sea freight, road freight; sea air combined transport, warehousing & distribution, demand forecasting, inventory optimisation, network modeling, project logistics and any other logistics services required by our clients.

W hat makes Barloworld Logistics stand out in the Middle East? What do you have to say about your recent partnership with Pan Emirates?

We create unique value for clients by developing bespoke solutions through a holistic approach to supply chain management, which combines strategy, planning, design, implementation, management, technology and integration of solutions with excellent operational execution. This is achieved by innovation, original thinking, developing and applying skills and sharing knowledge spanning the full spectrum of supply chain management, across multiple geographies.

We also offer traditional logistics services such as customs clearance, air 24

JULY 2012

freight, sea freight, sea air combined transport, warehousing and distribution, project logistics and road freight into GCC countries.

The overall objective is to grow a significant international supply chain management business for Barloworld Logistics.

Organisations in the Middle East try to manage their supply chain by themselves.

Many are yet to consider the idea of outsourcing. Pan Emirates is one of the few exceptions to have pioneered in this direction which we believe, would be the norm in the future as companies would like to focus on their core competencies.

As organisations begin to see value in outsourcing, acceptance across industrial verticals will become customary. We will then extend our product offerings to leading clients and in multiple geographies.

Outsourcing is all about partnership, trust and relationship. We want our potential clients to trust us for our

capabilities and value offerings.

In 2008, Barloworld Logistics acquired leading logistics players in the Middle East, the Far East and Europe to position itself in the fastest growing markets. We cater for multiple clients’ needs, through services of varied sizes ranging from single product to integrated multi-product offerings like Pan Emirates.

What has been your business strategy?

Our focus is to align our clients’ supply chains to their business strategies. Often companies are not using their supply chain to their strategic advantage. Supply chain should be a strategic advantage and not a strategic disability. We enable companies to leverage their supply chains to achieve their goals.

Our primary objective is to educate our potential clients about our capabilities and the transformation that we can bring about to their business. Our growth strategy is to harness our competencies and grow stronger.

Our strategy is simple. We link your supply chain to your business strategy to be more competitive. In other words, we ensure that you have the right operations, resources and capabilities to implement your strategy and realise business goals. We do this by thinking out of the box, breaking down barriers and pushing boundaries.

Freight forwarding market is fairly crowded with large number of players. What differentiated services or expertise that you offer? Are you targeting any specific industry?

Organisations in the Middle East try to manage their supply chain by themselves.

Many are yet to consider the idea of outsourcing. Pan Emirates is one of the few exceptions to have pioneered in this direction which we believe, would be the norm in the future as companies would like to focus on their core competencies.

The Middle East business unit generates about 3% of our total business. Comparatively, it’s a small percentage but that doesn’t mean it’s not important. This is relatively a new investment with an exciting future.

When we acquire a company in the Middle East, we inherit a huge client base from various industrial verticals, such as retail, petrochemical, IT and so on. Barloworld offers management, methodology, and processes, advanced planning optimisation tools and software and planning aspects to the business.

Supply chain is generic and simultaneously unique to industries. At a high level, problems faced by businesses are generic however, once we dwell into specific industries, the problems can become unique to the given industry.

Our solutions and tools are developed to help generic problems in supply chains across all industries. Our methodology and experience in specific industry verticals allows us to apply tools and solutions to meet the specific industry needs and requirements.

We are currently looking for companies with a burning platform and need to change. The need to change or partner with us could be driven through financial or service level objectives or both.

Many businesses believe that service level improvement can only be achieved at a higher cost. Our philosophy is to reduce the cost and improve service levels simultaneously. This allows companies to use their supply chain to achieve their strategic goals.

We are not looking at a particular industry but opportunities that are common across industries.

Please share with us a success story of Barloworld Logistics?

One of the private companies in partnership with the Durban hospital was faced with a major crisis. Their previous service provider had abandoned the warehouse over a weekend without notice.

was raised to 98.98%, with availability of these goods increasing to an impressive 95.5%. Corrections to the stock records reduced the stock variance to just 0.1%.

Ultimately, in support of the government’s promise to improve delivery, we proved what is possible with Public-Private Partnerships (PPP) in the public health sector.

We have the expertise and experience to manage supply chains in the hospital and healthcare sector in this market.

Within your global business, how does the Middle East does rate in terms of the performance?

Frank Courtney, Chief Executive – EMEA , Barloworld Logistics

The relationship between the previous service provider and the ward personnel had broken down completely. Huge stock variances were reported on approximately 3000 line items and labels had been maliciously defaced. Transactions had been carried out without using the operating system. Policies and procedures were not implemented or adhered to.

Barloworld Logistics was called in to address the collapse of the logistics system for surgical sundries. Time was of the essence; lives were at stake, along with the hospital’s reputation. In 12 hours, Barloworld Logistics restored the system, ensuring the hospital received their supplies on Monday. Following this, Barloworld Logistics was appointed as the hospital’s logistics partner on a 5-year contract.

In just 14 months we contributed significantly to the hospital’s operational functions. At a warehousing and inventory level, accuracy of medical supplies in stock

The Middle East business unit generates about 3% of our total business.

Comparatively, it’s a small percentage but that doesn’t mean it’s not important. This is relatively a new investment with an exciting future. We hope to increase this to a more meaningful number. So strategically this is a very important market for us.

Often your positioning is tilted towards a supply chain management company, how different is that from another 3PL provider or freight forwarder?

The history of logistics is about the planning and movement of goods. Many logistics companies only focus on the execution and have lost the art of planning, which is where we believe the real value lies. We are good at planning, designing, implementing and optimising solutions for the complex supply chain problems; and unlike consultants we can efficiently operate our solutions.

We believe in a “blank page” approach with our clients, this means, we try to understand their needs and offer appropriate solutions as opposed to dumping our resources on them.

What is your view on the Supply Chain Optimisation (SCO)?

Optimisation is absolutely necessary and the “blank page” approach helps us to find best-fit solutions in the market to a client’s problems rather than force or JULY 2012

25

TRADE TALK LOGISTICS

If you look at the logistics industry the number of acquisitions, mergers and closures in that market is a testimony to the real pressure under which companies are operating. The real savings are not in squeezing suppliers for a few percentages points of savings but by stepping back, taking a holistic view of the entire supply chain, thinking innovatively and looking for synergies. That is where optimisation comes from.

the Middle East market. The opportunity is twofold. Primarily, the long term compounded average growth rate forecasted for the Middle Eastern economies is a double digit number as these economies have organic growth. We also observe that not many companies were offering smart supply chain solutions to clients.

During the past few years, we have noticed tremendous interest in our solution offerings and the response from our existing clients has been positive.

Our growth strategy in UAE is obviously to create a niche and a competitive advantage for ourselves through our product offerings, that is; to offer smart supply chain and integrated solutions.

Most businesses in the Middle East have grown rapidly and often, the organisational functions are not integrated thereby leading to inefficiencies in the business. This gives us an opportunity to offer our solutions across multiple verticals and clients.

We intend to grow our UAE base and extend supply chain offerings to the neighbouring states. Other than UAE, we also have opportunities from Saudi Arabia and Qatar and we intend to explore them from a long- term perspective.

Barloworld Logistics, as a group, is celebrating it’s 110th anniversary – what does it mean to our readers?

merely apply “what we have”. If there are no appropriate solutions in the market, we will invest in the necessary solution on behalf of our clients.

What is most important to understand here is that when companies want to optimise their supply chain, they often end up looking to their suppliers for rate reductions. With the advent of the financial crises, the suppliers’ margins are down to the bare minimum and they are hardly in a position to bring meaningful savings. If you look at the logistics industry the number of 26

JULY 2012

acquisitions, mergers and closures in that market is a testimony to the real pressure under which companies are operating. The real savings are not in squeezing suppliers for a few percentages points of savings but by stepping back, taking a holistic view of the entire supply chain, thinking innovatively and looking for synergies.

That is where optimisation comes from.

What is your strategy for the next few years?

We see a huge opportunity to invest in

There are not many companies which have been around for 110 years. This means, we have been doing the right things. We are a company that looks for sustainable opportunities. We do not take things lightly and when we make the decision to get involved, we look at it with a long term view.

Our entry into the Middle East market was given a considerable strategic thought and we are here to build a business for the next centuries to come.

At Barloworld, apart from the history, you get a sense of belief and trust to work with. Our history proves that we will do the right things right!

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TRADE TALK Non-tariff barriers

Cutting the wire Despite the global decline of tariff rates to historically low levels, trade is far from being free. Other factors, such as technical regulations, product standards, and customs procedures, still prevent the limitless exchange of goods across countries. Trade and Export Middle East, explains the concept of non-tariff barriers which have become a cause of concern as the trade barriers go down.

N

on-tariff barriers (NTBs) are less visible and more complex than tariffs, and can prove particularly burdensome for companies in developing countries, which sometimes do not have the capacity to support their firms in complying with the imposed rules and regulations . The business sector as well as trade policymakers are therefore more and more concerned about the fact that NTBs can pose real obstacles to trade.

Any preferential market access that firms from developing countries might enjoy on international markets could easily vanish without delivering the desired effect.

With the lowering of tariffs across the globe, NTBs have gained prominence with countries using these measures to erect entry barriers for goods and services. It is therefore, not surprising that the developed countries with relatively lower tariffs are the more prolific users of these barriers especially to keep out developing country exports. Non-tariff barriers encompass a wide range of specific measures, many of whose effects are not easily measured.

For example, the effects of a government procurement process that is biased toward domestic producers is difficult to quantify. In addition, many non-tariff barriers discriminate among a country’s trading partners. They encompass a wide range of measures. Some have relatively unimportant trade effects. For example, packaging and labeling requirements can impede trade, but usually only marginally.

Other non-tariff measures such as quotas, voluntary export restraints, and variable import levies have much more significant effects. These stringent nontariff measures are designed to reduce imports and, thereby, benefit domestic producers.

This discrimination violates the mostfavored nation principle, a cornerstone of the General Agreement on Tariffs and Trade (GATT), the multinational agreement governing international trade. A tariff is a tax enforced on the foreign goods as they enter a country. On the other hand, non-tariff barriers are non-tax measures imposed by governments to favour domestic over foreign suppliers.

A rule of origin is defined as the criteria used to define where a product was made and is used by a lot of countries to discriminate against other countries.

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In this article , we take a look at some of the important NTBs.

Quotas A quota, simply put, is a maximum limitation, specified in either value or physical units, on imports of a product for a given period. It is enforced through licenses issued to either importers or exporters and may be applied to imports from specific countries or from all foreign countries generally.

Voluntary export restraints Voluntary export restraints are agreements between an exporting and an importing country limiting the maximum amount of exports in either value or quantity terms to be sold within a given period. Calling these restraints as “voluntary� is somewhat misleading because they are frequently designed to prevent official protective measures by the importing country.

Rules of origin A rule of origin is defined as the criteria used to define where a product was made and is used by a lot of countries to discriminate against other countries.

Import policy barriers One of the most commonly used NTB is the prohibition on imports

For instance, in the Middle East, all imported meats – beef and poultry products, require a health certificate issued by the country of export and a Halal slaughter certificate issued by an approved Islamic center in that country. maintained through the import licensing requirements. Import restrictions on some items on grounds of safety, security and religions are being maintained generally by all the countries, and probably these cannot be considered as non-tariff barriers looking at the purpose for which the restrictions are imposed.

For example, Qatar has put restrictions on the import of firearms, alcohol, dangerous drugs and pork products based on religious sensitivity.

Similarly, in the UAE, import controls exist for a number of products including, alcoholic beverages, pork and pork products, medicinal substances, printed matter such as magazines and videos, photographic material, firearms and fireworks. The entry of many kinds of products has been banned in accordance with the local values, religious beliefs and morals.

Standards, testing, labelling & certification requirements Usually, these requirements are insisted upon for ensuring quality of goods seeking an access into the domestic markets but many countries use them as protectionist measures. The impact of these requirements is felt more by the purpose and the way in which these are used to regulate trade. In the Middle East, all imported meats – beef and poultry products, require a health certificate issued by the country of export and a Halal slaughter certificate issued by an approved Islamic center in that country.

Packing, marking and labelling Goods should be packed to provide protection against extreme heat and humidity, storage in the open and possible unloading into lighters. For instance, the UAE Ministry of Health requires all pharmaceutical imports to be carried under

temperature-controlled conditions of 25 degrees Centigrade .

Labels of imported goods/food need to have the following standard information and should be in English and Arabic : • product and brand • ingredients, in descending order of proportion • additives using their ‘E’ numbers (group names are also accepted) • the origin of all animal fats • net contents in metric units • production and expiry date • country of origin • manufacturer’s name and address • special storage and preparation instructions, if any

Special certificates Livestock require sanitary certificates issued by the approved authority in the country of origin. For example, animal imports must be accompanied by a halal certificate attesting that the slaughter was carried out in accordance with Islamic rites.

Anti-dumping and countervailing measures Anti-dumping and countervailing measures are permitted to be taken by the WTO Agreements in specified situations to protect the domestic industry from serious injury arising from dumped or subsidised imports.

The way these measures are used might have a great impact on the exports from the targeted countries. If used as protectionist measures, they may act as some of the most effective non-tariff barriers.

Export subsidies and domestic support According to the FAO, export subsidies increase the share of the exporter in the world market at the cost of others.

Export subsidy is generally given by the

government to encourage export of goods and to discourage their sale in the local market.

Export subsidies and domestic support have a big impact on the trade of other countries. While export subsidies tend to displace exports from other countries into the third country markets, the domestic support acts as a direct barrier against access to the domestic market.

Procurement Sometimes government procurement policies followed by some countries could possibly act as a non-tariff barrier.

For instance, the UAE and Saudi Arabia maintain preferential buy-national policies giving a preference to local products in the governmental purchases or insist on a certain percentage of sub-contracting in favour of locally owned firms.

Non-automatic import authorisations There are two types of non-automatic import authorisations. Discretionary licensing, often called liberal licensing, occurs when an importer’s government must approve a specific import; however, precise conditions to ensure approval are not specified.

Frequently, this form of licensing is used to administer quantitative limits.

The second category of non-automatic import licensing requires the importer to meet specific conditions, such as minimum export performance, the use of the imported goods for a specific purpose or required purchases of domestic products.

To say that all NTBs are unnecessary would be incorrect. The WTO Agreements allows its members to take measures to protect human, animal or plant life or health, or to ensure the quality of goods finding an access in their markets. Members can also in certain circumstances take specified action to protect their domestic industry. The non-tariff measures act as barriers if they are applied as disguised protectionist measures. Therefore, they need to be examined for their consistency with the WTO disciplines to ensure that they are not applied as a protectionist measure to hinder trade.

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TRADE TALK FINANCE

Ignore the big picture and you could be in trouble Many months of continued economic and political turmoil in the global economy have led to highly volatile currency markets. This has impacted everybody in various diverse lines of business but particularly badly hit have been some organisations conducting business across borders.

Iskandar Najjar, CEO, Alpari ME DMCC, in the first of a multi-part series, explains the concept of hedging for traders.

The continued uncertainty that remains around the outlook for the rest of 2012 means that volatility is likely to prevail in global currency markets. Businesses, particularly SMEs, should be taking this opportunity to put strategies in place to proactively manage this issue and counter this risk.

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here big conglomerates are dealing in volumes that are able to bear this burden, such shifts in currency may make the difference between profitability and bankruptcy for small to medium enterprises (SMEs) such as import-export companies, farmers, jewellery retailers and other small businesses.

Firstly, let’s put the current situation into context. Events in the global economy over the past few years have lead to significant volatility in the currency 30

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markets, which has subsequently affected the profitability of many companies doing cross-border business. Currency volatility has become a particularly critical issue, not only in the struggling Eurozone, to businesses such as import companies that are purchasing goods or services from overseas in one currency and selling at a later date in their local currency. Business leaders that do not address the issue of currency fluctuation are putting their business at risk.

What is hedging?

Put simply, hedging involves making an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, through something like a futures contract. For instance, a good example of hedging is when you own stock in a certain company; you can then enter into a futures contract stating that you will sell that stock at a set price, thereby avoiding or moderating any market fluctuations. Investors use this strategy when they are unsure of what the market will do.

A perfect hedge reduces your risk to nothing (except for the cost of the transaction fees).

In this case, for traders such as import agents, hedging is a tool that allows companies involved in cross border, international trade to protect their regular business transactions against currency and commodity price changes.

The employment of a hedging strategy allows companies negotiating deals in

foreign currencies to plan for potential future mid-transaction shifts in exchange rate, by locking in the price of a product which will be delivered in the future and thus locking in margins in advance. In essence, it is like having an insurance policy against rising prices. Hedging can be executed through several different tools, including forwards, futures, swaps, options and collars, but primarily forwards and futures.

Hedging limits risk rather than creates risk So what are the benefits of Forex trading for SMEs and importers? How can it be so important? Well, firstly hedging limits risk rather than creates risk. It is important to point out that although hedging is not 100% foolproof, with the correct guidance, it is a way of reducing risk significantly. Importers can derive tremendous value by seeking hedging opportunities through the use of Forex forwards and futures.

Companies trading with the woestricken Eurozone, which trade in Euros, should certainly consider hedging as a strategy to reduce their exposure to currency fluctuations and reduce risk at a difficult time.

Similarly, companies trading out of India suffering from a struggling Indian Rupee (‘INR’) should also consider hedging as a viable option – especially if their trades involve USD. The Indian Rupee continues to fall to all-time low levels and given the tradition and volume of trading between the UAE and wider GCC and India, businesses reliant on a strong Rupee might look at hedging as a way of softening the blow of a poorly performing currency. Aside from the Indian Rupee, the performance of the

ABOUT

Iskandar Najjar is Chief Executive Officer of Alpari ME DMCC, part of the Alpari group of companies, the leading provider in online trading service for foreign exchange, precious metals and contracts for differences.

He is responsible for the strategic direction, senior level management and supervision of the company across the MENA region.

Iskandar has many years’ experience in client and corporate relations, with a particular emphasis on online trading platforms. His experience spans research, sales and product development across the industry. Prior to joining Alpari, Iskandar was a private consultant developing an online trading division for a start-up investment bank in the Middle East.

Iranian Riyal, which has plummeted in value largely due to the trade sanctions, has also put traders under severe strain. There is a rich history of trade links between the Gulf countries and Iran; arguably if traders had hedged they may have been able to absorb some of the damaging effects on people’s livelihoods caused by the freefalling currency value.

Aside from currency pressures, extremely high levels of some commodity prices mean that companies can no longer ignore the currency issue in their procurement systems and processes. Hedging can help manage costs relating to things such as fuel and raw materials and ultimately, hedging drives a fuller bottom line, increasing profitability.

Hedging on limited resources Hedging strategies can be put in place by investing a smaller percentage of the total amount to be covered through leveraging; this is known as ‘trading on margin’. This means the total investment required to cover USD 500,000 may only be USD 5,000 based on a leverage ratio of 1:100. However, it should be noted that there are risks

Well, firstly hedging limits risk rather than creates risk. It is important to point out that although hedging is not 100% foolproof, with the correct guidance, it is a way of reducing risk significantly. Importers can derive tremendous value by seeking hedging opportunities through the use of Forex forwards and futures.

involved in leveraging. For example, if the market moves against you, there must be enough in your reserve funds to cover the margin payment if you need to close out of your position. If you do not have funds that exceed this, the broker or platform may automatically close your position, leaving you with a loss.

Hedging mitigates risk brought about by volatile prices and in 2011, we have seen global commodity prices move drastically through uncontrollable market risk which can drive currencies and commodities in rapidly changing different directions; hedging can help soften the blow brought about by exposure to such extreme external factors.

Up to this point, a lack of knowledge and understanding and a degree of fear of what is perceived to be a complex subject has contributed to hedging not being embraced by smaller companies and SMEs in particular.

In conclusion, the most crucial aspect of a Forex hedging strategy is to understand the risks that could affect your business.

Initially, SMEs need to identify and evaluate the risks the company is exposed to, which will differ depending on the industry. The next step he or she should make is to define their risk tolerance which will in turn inform the company’s Forex hedging strategy, which at such a turbulent time, could mean the difference between profit and loss. Never have we witnessed such a time as in recent years, where hedging can simply make or break a company. Over the next couple of articles, we will discuss some specific examples of hedging in action and how SME owners can put hedging strategies in place.

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31

TRADE TALK EXPORT

Plan your entry Venturing into the global marketplace is a lucrative activity with unbounded potential and the ability for an SME to become a large multi-national corporation. There are many examples of where SMEs have actually grown solely due to their overseas activities.

However, any foray into global markets has to be undertaken when a firm is ready and capable. Dr. Ashraf Mahate, Head, Export Market and Intelligence, Dubai Exports and Vice Chair, Economic Policy Committee, Dubai Economic Department, explains to us why is it important to be ready before going overseas.

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n SME needs to ensure that it has the ability to successfully penetrate foreign markets and the resources to effectively manage the process as well as the customers.

Attempting to enter into foreign markets when a firm is not ready or capable is more likely to result in failure and misplaced resources.

Before attempting to enter into foreign markets an SME needs to build the capacities that will allow it to become competitive in global markets. To a large extent many SMEs already have the core ingredients for the building of export capability, such as: • entrepreneurial spirit to identify and capitalise on opportunities, • the ability to be flexible as a customer, • legislation and processes may be very different in overseas markets compared to the domestic arena and, • resourcefulness so as to be able to effectively use their existing facilities and staff.

There is no golden rule as to when firms can start exporting and different firms enter foreign markets at different stages of their development and also through various modes. One has to accept that there are some firms that are “born global” and are able to identify their export markets in the initial stages of development while others wait until they have built a strong domestic footprint. The real differentiator as to when a firm enters foreign markets is when it has acquired a sufficient level of core competencies. From a practical perspective this implies that the firms need to have certain advantages that it can capitalise upon in foreign markets.

The sheer nature of an SME implies that they face a number of obstacles in their pursuit of export-capacity building.

The most obvious is the limited resources and restricted access to finance. To some extent this is changing as financial institutions begin to understand the preexport financing needs of SMEs and have developed financial products that match

ABOUT

Dr. Ashraf Mahate is the Head of Export Market Intelligence at Dubai Exports, which is an agency of the Dubai Economic Department. Dr. Mahate is also the Vice Chair of the Economic Policy Committee with the Dubai Economic Department. He has written a number of journal articles and book chapters, as well as edited books in the areas of economics, finance and banking.

Dr. Mahate received his doctorate from Cass City University Business School in London (UK) which was ranked by the Financial Times newspaper as the 12th best university in the world for finance. He read Economics at University College London, followed by a Masters in International Economics and Banking at the University of Wales in Cardiff. Dr. Mahate is a professional educator and received his training at the Institute of Education (University of London). He is a member of the Chartered Institute of Managers (UK) and a Member of the Institute of Commercial Management (UK). He is also a member of the Association of Certified Anti-Money Laundering Specialists (ACAMS). He can be reached at ashraf.mahate@ dedc.gov.ae. For more information on Dubai Exports, please visit: www.dedc.gov.ae.

this need. However, these products are not offered by all banks and in some cases are limited to certain sectors or types of SMEs. Second, the inability to fully exploit the economies of scale implies that the operating costs of a SME tend to be higher than those of its competitors.

Third, the limited exposure to foreign markets implies that SMEs do not have the necessary skills to deal with a diverse and culturally different customer base.

So what’s the next step?

So what can a SME do to overcome its obstacles and build export capacity? The first realisation is that access of finance is vital to build export capability. However, the reality is that it is restricted to SMEs and they need to be innovative to look for alternative sources of finance. For instance, if an SME needs to invest in new machinery it may consider leasing as an alternative option.

Or if working capital is a problem then the SME firm can factor its invoices so that the factoring company provides the

funds immediately. Alternatively, the SME may wish to share the risk as well as the return by identifying appropriate partners for joint ventures or strategic alliances. If the partner is in the target export country then it may help the SME to acquire the necessary knowledge and harmonise product and process standards, sales (or other) taxation procedures, customer management systems, and protect any intellectual property rights.

There are “quick tricks” that SMEs can use in order to develop their export capabilities and the most important tool for doing this is access to information technology. In today’s electronic knowledge-based society access to IT can be a great leveler for SMEs. Despite the low cost of IT, the lack of understanding and the ability to fully utilise its many benefits hampers their growth. Various studies show that SMEs view e-commerce simply from the perspective of cost savings rather than allowing it to grow and close the gap with their international competitors as well as larger firms.

There are “quick tricks” that SMEs can use in order to develop their export capabilities and the most important tool for doing this is access to information technology.

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33

TRADE TALK EXPORT

One of the most important aspects of export capability building is to adopt best international practices. This has two key benefits namely it implies that the firm is producing goods or services in an efficient manner. Second, the goods or services produced comply with existing market trends or demands.

The irony of this is that e-commerce allows SMEs to overcome their weakness in accessing new export markets and linking buyers and sellers. An important part of building export capability is to develop an appropriate Website usually in the language of the home nation as the target country. A Website has become an essential business tool to showcase the company and its products and services.

However, by having the website in the target export country allows customers to access the information in a convenient manner. More importantly, the SME needs to develop advanced e-commerce capabilities as a means of accessing international markets.

Export capability building is not simply limited to installing new machinery but also includes developing the skills and knowledge of its employees. SMEs need to understand that exporting requires it to have staff that has greater skills and knowledge so that they can fully capitalise 34

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on the opportunities available. At the most basic level staff may need training language and cultural norms, as well as legal and logistical aspects. If one or more of the staff can speak the language of the target country it can greatly improve customer relationship management.

Similarly, staff may need training on the export process as well as international negotiation. Of course at the advanced level the SME can consider more specialist skill building such as international leadership and staff management.

The owner or senior managers need to develop and maintain ties with other firms in the foreign country either through business networks developed by trade associations, trade missions, trade fairs etc. There are various types of business networks with different objectives.

The business networks range from the structured and formal to the informal where group members share ideas and may even forms areas of cooperation.

These business networks not only help the SME build awareness in foreign markets but also allow it to acquire key knowledge such as pricing points, local aspects of doing business and so forth.

More importantly, business network allow the SMEs to build trust with foreign firms which in turn helps it secure export orders. Also, the business networks can help the SMEs build reputation with foreign firms through developing relationships and joint initiatives.

One of the most important aspects of export capability building is to adopt best international practices. This has two key benefits namely it implies that the firm is producing goods or services in an efficient manner. Second, the goods or services produced comply with existing market trends or demands. This is more important in export markets whereby the SME may not be fully aware of the manner and the changes that have to be carried out to their existing product.

Therefore, being aware of the best practices globally as well as in the target export country provides the SME with the vital information required to make the necessary changes. In the export market it’s just not trends that the SME has to be aware of but also the import requirements. Failure to comply with important requirements simply implies that the products will not be allowed into the country. It is important to note that import requirements are not limited to the product and include aspects such as packaging, labeling etc.

Like all things in life success is about timing and planning and this is particularly relevant for exporting. In global markets failure does not only lead to wasted resources but also reputational risk. Therefore, SMEs are well advised to plan their entry into foreign markets and to ensure that they have built a sufficient level of export capability. Of course export capability is not only about installing new machinery to meet the demands of a larger customer base but to ensure that the organisation is able to deliver on its promise.

FOCUS INDUSTRY

The bodyguard Streit Manufacturing was started a decade ago to provide cost-effective and efficient armored cars. Aparna Shivpuri Arya, got talking to Guerman Goutorov, CEO, Streit Manufacturing to know about this fascinating industry and their journey so far.

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hat were the reasons for choosing Ras Al Khaimah for the manufacturing facility?

In a number of respects Ras Al Khaimah in the United Arab Emirates (UAE) has proved to be the ideal location for us to establish what we believe to be the world’s largest privately-owned armour vehicle facility.

The decision to go with RAK was certainly aided by the fact that it is well positioned, strategically, with good transportation connections, especially by sea, to help us service our major markets. Alongside this it is one of the most attractive free trade zones, from an economics point of view, anywhere in the UAE or the wider region.

From concept to the final completion of the first phase, of what will be a three36

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phase project, we have been able to count on the strong support of Ras Al Khaimah’s leadership. Their enthusiastic backing, at each stage of the process, has really been integral for us to bring the project to fruition on time and within the budget.

We were naturally delighted, therefore, that His Highness Sheikh Saud Bin Saqr Al Qasimi, Member of the UAE Supreme Council and Ruler of Ras Al Khaimah, accepted our invitation to inaugurate our new factory.

This official support, even in the early days, gave us the confidence we needed to invest AED 80 million in the main 1.4 million sq feet production facility, with the next two phases estimated cumulatively at over AED 120 million, to follow by 2014. Over the three phases we expect the multi-national workforce to soar from 400 to over 2,000.

To put the scale of our commitment to Ras Al Khaimah in context, the level of investment we are making here is one of the largest yet seen in the RAK FTZ and is certainly the most significant that we have made in our 20 year history. Positioning the facility in the RAK FTZ also offers the potential, in the longer term, for suppliers of our key components to co-locate part of their operations here to further smoothen the production process and to have a business park focused on armoured vehicle delivery.

To which markets will this facility be providing armoured vehicles for?

This new facility really represents a change in what we can do. We now have the ability to produce and test 40 different models

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FOCUS INDUSTRY

armoured personnel carriers. Evidence of this is the soon-to-be-unveiled prototype of the Jaguar MRAP (Mine Resistant and Ambush Protected ) command vehicle.

The Jaguar features a distinctive modular design. It joins the other models we have been bringing to market in the past few years, namely the Cobra, Cougar, Spartan and Typhoon. These highly capable vehicles incorporate many of the lessons we have learnt over the past 20 years from our solutions being deployed in some of the world’s most testing conflict zones.

Guerman Goutorov, CEO, Streit Manufacturing

of armoured vehicles for commercial, semi-military and military use, all the way from the first input of steel sheets to the finished product. In practice, we anticipate much reduced lead times for customers and, initially, an output rate of 250 vehicles a month under normal loads. Significantly, there is the capability to go up to 400 units, should the need arise, something which far surpasses our main competitors.

This means that we are now well placed to fulfill the estimated AED 150 million worth of sales we expect to achieve as a group over the next five years.

When it comes to the specific markets, we will be using the RAK facility to act as the main production hub to supply the Middle East, Africa – with customers in countries such as Libya showing a great deal of interest in what we can do – and even increasingly into Europe where we are starting to build a presence.

Looking at types of applications and sectors, moving forward, the new facility and its unparalleled R&D, manufacturing and testing capabilities will provide an enhanced potential for us at Streit to uparmour existing civilian platforms, such as custom luxury sedans and SUVs, for law enforcement, personal protection and tactical unit vehicles.

Alongside this, we are planning to increase our focus on the military vehicle market with an enhanced range of 38

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How has demand for armoured vehicles in the Middle East changed in the past three years?

Demand has remained strong, as there is a growing awareness for the need for armoured vehicles to offer a high level of protection. We continue to supply large numbers of armoured and up-armoured vehicles to private security contractors, police and, increasingly, military users across the region. Sales also remain buoyant in current and recent conflict zones such Afghanistan and Iraq. One trend we are witnessing on the ground is for multi-national companies, who are significantly expanding their oil operations in countries like Iraq, to place major orders with us for hundreds of up-armoured vehicles. This is with the intention of providing a much needed extra level of protection for their workers, from ballistic and blast scenarios, as they face up to the threat of attack when travelling to and from oil and gas fields.

How are you expecting this to change in future?

We expect the strong level of business to continue apace as we roll out ambitious plans to expand our vehicle portfolio on the back of Streit Group’s enhanced facilities in the region. Our new APC (Armoured Personnel Carrier) models really underline the major transformation in the level, and sophistication, of what we can deliver and I am confident it will open up even greater opportunities for us with military customers.

Are the majority of your vehicles for private or military use?

The split between non-military and military applications is probably70:30 at the moment. Of course this is liable to change with an upsurge in military orders thanks to our new APCs coming on stream, alongside our determination to become a significant player in this lucrative, yet demanding, sector.

Can you provide details of a bestselling or top performing vehicle?

Now withstanding our new prototype Jaguar which we are gearing up to launch shortly at Eurosatory in Paris, if we look over the past year or so I would have to say that one of the standout vehicles for us has been the Spartan APC (Armoured Personnel Carrier).

The Spartan, which is ideal for military border protection and law enforcement use, exemplifies the strength of our APC offering and has been very well received since its inception. This multi-functional light armoured vehicle brings together effective protection against ballistic assault, light mines and grenade blast scenarios, with a Streit developed body on an extremely manoeuvrable Ford F550 platform and 4x4 on demand.

As the Spartan’s size is comparable to a standard pick-up truck it can be handled easily in the confines of an urban environment whilst its off-road abilities make it a good choice for border patrol and critical infrastructure security operations.

As with other Streit vehicles, we are able to customise the Spartan using our leading-edge armouring techniques to tie-in with a customer’s operational needs. Potential armoured enhancements include: ballistic fuel tank protection, vehicle battery and ECM armour protection and engine bay flank armouring. There are also reinforced door hinges, pillars and posts plus a stainless steel grill in the tailpipes to protect the exhaust. In addition suspension components can be reinforced.

FOCUS COUNTRY

Attracting investments: Lebanon’s tax regime Lebanon, with its official non-interventionist stance towards private investment, offers one of the most liberal investment climates in the Middle East. The economic openness of the country is harnessed through the absence of legal restrictions on the entry or exit of many firms, encouraging free market competition and furthering the development of the private sector. The Investment Development Authority of Lebanon educates us about the tax regime in the country and the benefits it offers.

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iberal trade and investment policies have allowed foreign direct investments to account for a considerable share of the Lebanese GDP. Lebanon has also one of the lowest taxation schemes and fiscal charges in the world, with only a 15% corporate tax rate; designed to spur economic growth and provide investors with significant advantages.

Companies operating in Lebanon benefit from favourable tax structures, low rates and a wide range of double taxation treaties.

Sending positive signals to foreign investors Lebanon has one of the most competitive corporate income tax rates regionally and

internationally, equal to 15%, making Lebanon’s business environment one of the most attractive and competitive for foreign and national companies alike (figure 1).

Tax payment procedures, are also ranked among the least complex in the MENA region in terms of time, cost and number of payments required per year according to the World Bank’s Doing Business Report 2011. In fact Lebanon is ranked 30th in the “paying taxes” category, among 183 economies, with only 19 days per year for tax payments, versus 21 days on average in the MENA region, as per the report. It would also be interesting to note that Lebanon is one of the very few developing economies

Lebanon also has one of the lowest taxation schemes and fiscal charges in the world, with only a 15% corporate tax rate; designed to spur economic growth and provide investors with significant advantages. Companies operating in Lebanon benefit from favourable tax structures, low rates and a wide range of double taxation treaties.

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that rank in the first and second quartile of this category, according to the same source. The Ministry of Finance has played an important role in that matter, improving processes for tax payments, introducing e-declaration and e-payment services and establishing a one-stop-shop for tax payments at Lebanese customs.

Corporate income tax The Lebanese tax structure does not discriminate against foreign investments.

Branches of foreign companies are subject to the same business income tax as local companies when profits are realised in Lebanon. There are no taxes payable at the local or regional level. In addition, the tax regime provides several tax exemptions and reductions.

Tax Relief and incentives The Lebanese legislation offers special tax relief for investors to establish and develop their businesses in Lebanon: • Exemptions from corporate tax on profits apply to the following: holding companies, offshore companies, education institutes, hospitals,

•

• •

•

cooperative associations, trade unions, local air and sea transport companies, touristic establishments.

A 30% reduction on the taxable salary of foreign employees at offshore companies when working in Lebanon.

Hence, employers are subject to reduced social security contributions and payroll taxes.

Wages of foreign employees in the Union of Arab Capital and Financial Markets are exempt from payroll taxes Foreigners are completely exempt from paying social security contributions if they are working in Lebanon pursuant to a contract concluded abroad with foreign enterprises and if they are covered by a similar benefit at home Several incentives and fiscal exemptions are granted for eligible investments through IDAL’s Investment Law No.360

Tax structure for key business entities Under Lebanese legislation, local and foreign investors have the option to establish a broad range of business structures including – holding companies, offshore companies, joint stock and limited liability companies (table 1).

The other taxes Income tax The taxation system in Lebanon consists of scheduler income tax, which mainly includes: 1) Tax on commercial, industrial and professional income

ABOUT

The Investment Development Authority of Lebanon (IDAL) is Lebanon’s national investment promotion agency. It aims to promote Lebanon as a key investment destination, and attracting, facilitating, and retaining investments in the country.

IDAL provides local and foreign investors alike with a range of incentives and business support services across the following sectors; Industry, Agriculture, AgroIndustry, Tourism, Information Technology, Technology, Telecommunication, and Media. In addition to its role as investment promotion agency, IDAL is entrusted with the active promotion and marketing of Lebanese exports including but not limited to agricultural and agro-industrial products.

For more information please contact invest@idal.com.lb

2) Tax on wages and salaries 3) Tax on income from movable capital

Tax on commercial, industrial and professional income Taxable profits consist of all commercial, industrial profits and professional revenues earned by the enterprise after deduction of all charges necessary for carrying out the business.

Corporations and limited partnerships are subject to corporate tax on profits of any business carried on in Lebanon at a flat rate of 15% of their business income.

Individuals and partners in a private company are subject to tax on profits, after deduction of family allowances, on a progressive scale as follows (table 2) Tax on wages and salaries – payroll tax Income tax law imposes a tax on all wages, salaries including overtime, gratuities and fringe benefits, after deduction of family allowances. Employers withhold the

Figure 1: Average Corporate Tax Rates of Selected MENA and OECD Countries (2010) Rate of Corporate taxes 2010

amounts due from salaries and remit them to tax authorities. Payroll tax rates on wages and salaries increase progressively from 2% to 20% as follows with some exemptions (table 3).

Tax on income from movable capital The tax rate on movable capital is 10%, withheld at the source on the gross receipts. Income tax law imposes a tax on the distribution of dividend equal to 10% of the amount of dividend paid. This tax applies regardless of whether the company is exempt from profit tax. Under certain conditions the rate is reduced to 5%.

Some exemptions exist, for example: • Amounts paid in reimbursement of creditors or shareholders provided they are not taken from the profit and loss account or from reserve funds • Investments with the Lebanese government, amounts deposited at the Central Bank • Deposits and accounts opened at the Central Bank in the name of banks

Property tax The property tax covers all properties located in Lebanon and ranges from 0-14%.

The expenses borne by the owner on behalf of the tenant are deductible. Exemptions are listed in article 8 of the Property Tax Law with some examples mentioned below (table 4).

Value added tax (VAT) The 10% VAT rate in Lebanon is amongst the lowest in the region. It applies to imports, and the supply of goods and services carried out by a person or JULY 2012

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FOCUS COUNTRY

Table 1: Tax Structure for Key Business Entities

Table 2: Profit Tax

TAX STRUCTURE FOR KEY BUSINESS ENTITIES Type of Companies

Holding Companies

Applicable Taxes

PROFIT TAX Exemptions

Tax rates

10% on the i nterest on l oans i ssued to companies operating i n Lebanon, i f the Income tax on profits loan maturity i s l ess than three years 10% tax on capital gains received from the sale of holding company shares or Income tax on profit distribution its participation i n Lebanese companies i t has owned for l ess than two years

For corporations and limited partnerships For individuals and partners: progressive rates from for taxable profit (in millions LBP) up to 9 9 -­‐ 24 24 -­‐ 54 4 -­‐ 104 over 104 For non-­‐residents on royalties on net profits (50% of net profits are taxable)

10% on amounts collected from renting patents and on the reserved rights i t possesses on a Lebanese company Graduated tax on capital and reserves

Offshore Companies

LBP 1 million ( USD 663) fixed annual tax

Income tax on profits

10% tax on profit received from the sale of the fixed assets i n Lebanon

Income tax on profit distribution

Payroll tax on the salaries of company e mployees working i n Lebanon

15% tax on corporate profit Joint Stock and Limisted Liabilities 5% tax on profits received from the development or sale of real e state Companies A withholding tax at a rate of 10% i s l evied on all proceeds derived from movable capital assets generated i n Lebanon* *This tax essentially concerns: -­‐ Distributed dividends, interest and income on shares -­‐ Directors' fees as well as amount payable to them from profits -­‐ Distribution of reserve or profits in the form of additional shares or under any form

company subject to VAT. Some goods and services are completely exempted from the VAT: Zero rated: • Certain goods/services such as export of goods/services • International transport of goods/ persons • Government/public entity projects funded by international organizations (such as the EU).

Exemptions: • Essential goods and services • Agriculture, Real Estate, Health, Education, NGOs, collective transportation of persons, financial services Diplomats and international organisations, foreign businesses, tourists and some exempted sectors have special refund schemes.

Stamp duty A stamp duty of 0.3% is charged on most contracts.

Custom duties Custom duties are levied on most of the imports at varying rates, ranging from 0% to 70%. Tariffs on all industrial goods, tobacco and most of agricultural goods range between 0 and 5%.

Exemptions: • Raw materials 42

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Stamp duties on overseas business contracts signed i n Lebanon Payroll tax on 30% of foreign e mployees' basic salary

15% 4% -­‐ 21% 4% 7% 12% 16% 21% 7.50% 15%

Exemptions

Educational i nstitutes Hospitals, orphanages, e tc.

Consumers’ cooperative companies, trade unions, and agricultural cooperatives of a non-­‐commercial nature Agricultural i nvestors not e ngaged i n trading of their produces Local air and sea transport companies and foreign ones i f Lebanese companies receive reciprocal treatment i n the foreign country Touristic e stablishments classified as artisanal Profits that are re-­‐invested Profits resulting from the production of new products for which there were no l ocal i ndustry before i n Lebanon Holdings and Offshore companies

Table 3: Payroll tax

PAYROLL TAX Tax rates (in millions LBP) up to 6 6 -­‐ 15 15 -­‐ 30 30 -­‐ 60 60 -­‐ 120 over 120

2% 4% 7% 11% 15% 20% Exemptions

Subject to reciprocity: salaries and allowances of ambassadors of foreign states and their foreign staff.

Disablement pensions Wages of agricultural l aborers Wages of nurses and cleaners i n hospitals, orphanages, asylums and other medical and first aid i nstitutions.

Wages of foreign e mployees i n the Union of Arab Capital and Financial Markets.

Table 4: Property tax

PROPERTY TAX Tax rates (in millions LBP) Less than 6* 6 -­‐ 20 20 -­‐ 40 40 -­‐ 60 60 -­‐ 100 Higher than 100

0% 4% 6% 8% 11% 14% Exemptions

Buildings owned by the government, hospitals, religious authorities, political parties, foreign governments e tc.

• Semi-manufactured goods (total of over 2000 products) • Computer hardware and software • Textiles The following goods and activities benefit from a Duty Deferral Status: • Merchandise in transit • Customs Warehouses

• Free Zones and Shops • Temporary Entry • Temporary Import of Items and Personal Effects Belonging to Persons Entering Lebanon for Temporary Stay • Refund of Duties • Re - export of goods • Trans-shipment

TRADE TALK

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WE NEED JUST FIVE MINUTES OF YOUR TIME!

TRADE and EXPORT MIDDLE EAST aims to keep the regional trading community up to speed with the latest information.

Over the following months we will delve into industry trends, pinpoint key data and analyse the most pertinent issues to ensure that our readers are armed with real insights from within the industry.

And we need your help for this!

We will conduct regular reader surveys and then share key trends and analysis back with you. This is your chance to be heard and to share your experiences to help the industry.

Of course, your responses will be held in the strictest confidence.

Have your say!

Visit www.tradeandexportme.com/survey/quarterly-performance-survey/ to take the survey.

OCTOBER 2011

39

FOCUS REPORT

Making it legal The World Economic Forum recently released its report Global Enabling Trade Report 2012– reducing supply chain barriers. Trade and Export Middle East brings snapshots from the report on the problem of illicit trade that supply chain players face and how to tackle it.

T

he rapid increase in the speed of transportation lead by air cargo is the backbone of modern just-intime supply chains. As a result of just-in-time and fast cycle logistics, inventory-to-sales ratios have declined steadily worldwide, reducing inventory carrying costs and increasing system-wide productivity. Today, the battle in most industries and markets is not between firms so much as it is between firms and their network of suppliers, which are often supplying multiple firms in the same industry. As the transportation guru John Kasarda explains, “Individual companies don’t compete. Supply chains compete.

Networks and systems compete.”

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JULY 2012

Although there is no question that trade depends heavily on logistics performance, the analytics available to analyse this dependency and to aid in optimising decisions, particularly regarding logistics-related investments, is limited.

When did we start worrying about the origin of products we consume? Ethical, safety, and environmental concerns about products may seem to be a recent development – one that coincides with the acceleration of globalisation.

GCC countries are experiencing major shifts in the direction and nature of trade with the rest of the world, as trade with OECD countries is rapidly supplanted with emerging markets.

The emergence of Asian giants – India and China has presented the GCC with substantial opportunities, driving the region’s ports to expand capacity both for their own trade needs and also to develop as regional supply chain hubs.

However, modern ways of doing business are called for, especially in the

Figure 1 and figure 2

areas of customs, immigration, and other business processes, if the Middle East is to capitalise on its unique strategic position as the crossroads between Asia, Europe and Africa.

The main barriers to export and import supply chain are as shown in the graphs below. (Figure 1 and figure 2) Supply chain integrity is a primary concern For many decades the complexity and opacity of global supply chains made it very easy for some agents to hide, and for others to ignore, a wide array of illegal or unethical activities. This is a state that global markets can no longer sustain.

Because supply chains have become an integral part of many a corporate strategy, supply chain integrity is no longer a marginal concern in the current legal, social, and business environment.

Today, for any business that manufactures or sells globally, part of the usual price of success is becoming a magnet for counterfeiters; another

part is the risk that counterfeits will infiltrate legitimate supply chains.

The complexity and interconnectivity of supply chains mean that it is often very difficult to know what is going on beyond first-tier suppliers. Supply chain integrity is increasingly at the top of supply chain managers’ principal concerns. For example, in 2008 a PricewaterhouseCoopers study surveyed 59 global consumer and retail companies, and found that large brand-owners were particularly sensitive to both the reputational and operational risks of supply chains.

Towards a transparent supply chain –using technology The paradigm of security printing, where banknotes are produced behind closed walls and loaded with secret anti-counterfeiting technologies, does not adapt very well to the cost-constrained industrial world of outsourced production. Furthermore, traditional security features such as holograms and security inks can be easily imitated, as the technology and skills to reproduce them are now freely available on the market. However, new coding techniques are constantly developed to meet the needs of the corporate world and industrial products. For example, Coats Textiles in the United Kingdom has developed a “digital thread” with a security code embedded in the thread itself. It is invisible but can be scanned so it can be used to verify the integrity of clothing, parachutes, and so on—basically anything made from fabric.

There are now technology solutions for any type of product. Luxury goods such as high-end watches can be assigned a Smartcard, and can be authenticated instantly through the Internet via a Smartcard reader that is provided to customers. For fast-moving consumer goods, which can afford only a very low per-item protection cost, small digital graphics can be inserted into the packaging during the production process, and printed with standard JULY 2012

45

FOCUS REPORT

The complexity and interconnectivity of supply chains mean that it is often very difficult to know what is going on beyond first-tier suppliers. Supply chain integrity is increasingly at the top of supply chain managers’ principal concerns. industrial printers. One such type of secure graphic, called STAMPS (for “Secure Tracking and Authentication through Matrix Printing and Scanning”), is mathematically impossible to copy and can be authenticated through an image capture with a mobile phone.

Consider the simple scratch codes that are typically found on lottery tickets. A handful of companies – such as mPedigree in Ghana, Sproxil in Nigeria, and PharmaSecure in India – are proposing to use these very codes as a simple solution to the scourge of counterfeit drugs in developing countries. As a consumer buys a drug, he or she can reveal the code, short message service (SMS) it to a toll free phone number, and receive feedback on its authenticity within seconds.

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JULY 2012

The convergence of mobile communication, product tracking, and authentication empowers a larger number of stakeholders to access relevant traceability information. On some goods, outbound logistics provenance is vital.

This is typical of cold chains for vaccines and medical products, frozen food, and agricultural produce. Simple solutions involve placing time-temperature indicators that change colour to signal the occurrence of a potentially damaging heat or freeze event, or the presence of food-borne pathogens. More sophisticated systems use RFID sensors to monitor or record temperature, geographical position, and other events – such as a container opening – at any point along global distribution channels. Of course, dealing with a multi-tier supply network

involves a different level of complexity.

In this case, placing a simple tag on a component does not necessarily fix problems with suppliers, but it can be an enabler. The important thing is to fit technology into a process that records relevant traceability information, holds the supplier accountable, and makes successful fraud much more difficult because the coherence of the digital trail must be maintained. The problem of supply chain integrity is an old one in society but a relatively new one in global supply chain management. Its importance has mounted because of the increasing global reach of brands and the lack of accountability in supply chains that operate in many parts of the world. Combined with the new supply chain security risks that use products as vehicles – such as malicious embedded software, bombs in ink cartridges – a new sub-discipline is needed within supply chain risk that might be called “chain of custody management” or “supply chain integrity management.”Basically, the focus of this new aspect of supply chain risk management is to answer the four questions of product-level supply chain integrity:

• Integrity of source: Does this product come from where I think it did?

• Integrity of content: Is this product made the way I think it is?

• Integrity of purpose: Is this product going to do exactly what I think it will?

• Integrity of channel: Did this product travel the way I think it did?

That may sound far-fetched, but there is now an ecosystem of tracking and communication technologies that has an incredible potential to provide more transparency of supply chains, easier access to information, richer and more granular traceability, enriched communication with consumers, and the ability throughout the supply chain to discern the licit from the illicit. The technology is here now. It just needs to be put to work.

Focus commodity watch

Commodity prices snapshot Crude oil prices tumbled down in the second half of the month along with gold and silver. The Federal Open Market Committee (FOMC) projection on the U.S economy has been revised; moreover the FOMC has not exerted an effort to help jump-start the economy as it did not add another expansion stimulus plan this month.

These announcements may have been among the reasons for sharp fall of crude oil prices during last week.

Reem Aboul Hosn, Senior Financial Analyst, Zawya, tells us how the key commodities performed over the month of June 2012.

NATURAL GAS

Natural gas market showed a comeback this year as natural gas future price hiked by 13% in just a single day, following the EIA Natural Gas report, regarding the NG storage update, of 67 billion cubic feet (bcf) injection; while production level stayed the same. The Nymex Future recorded one month high on June 27, at USD 2.83 /mmbtu, a 13% increase as compared to the previous week.

BRENT The EURO/USD exchange rate decreased during the second half of the month by 0.54%. Furthermore, the AUD/USD also lessened by 0.11%. There is a positive correlation among foreign exchange rates and crude oil rate. Therefore, the appreciation of USD against the EURO and AUD has further pulled down oil prices.

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Data provided by Zawya

Focus commodity watch

GOLD Gold had a steady upward trend from June 8 to June 18; an increase of 3%; shortly after the commodity dropped to one month low at 1566.9 on June 22. The European summit to be held at the end of the month will have a major influence on the price of gold; as the meeting is expected to have a decisive action for Europe's debt crisis. If not then the price of gold is expected to drop further.

Silver Silver, much like gold started the month at its best reaching one month high on June 6th at 29.46, then steadily fluctuated positively between 28.2 and 29 levels. After the FOMC result of not introducing a rescue plan in the European zone, the latter affected speculators and turned the market downwards on June 18 to reach the lowest levels at 26.66 on June 22.

Data provided by Zawya

JULY 2012

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Community

Save the date!

We know that you are a busy trader with a demanding events diary. Therefore, we are providing you with a snapshot of exhibitions and conferences in the region and around the world, so you spend less time planning and more time attending.

EXHIBITION

DATE

EXHIBITION

DATE

LOCATION

Middle East Natural & Organic Products Exp

5th - 7th

Dubai

National Exhibition for Small & Medium Enterprises

5th - 8th

Abu Dhabi

International Real Estate & Investment Show

7th - 10th

Abu Dhabi

Airport Suppliers Conference

11th - 12th

Dubai

Abu Dhabi International Motor Show

19th - 23rd

Abu Dhabi

January 2013 EXHIBITION Tekno Tube Arabia

LOCATION

DATE 7th - 10th

LOCATION Dubai

Arab Plast

7th - 10th

Dubai

Domotex Hannover

12th - 15th

Germany

Offshore Middle East

21st - 23rd

Qatar

Doha Trade Fair

1st

Qatar

PROMAT

21st - 24th

USA

CIS Travel Market

27th - 28th

Russia

Trans Oman

28th - 30th

Oman

Ramadan & Eid 2012

29th - 19th Aug

Abu Dhabi

February 2013 The NAFEM Show 2013

1st

USA

2nd - 4th

Australia

Printpack India

5th - 10th

India

Regional Consumer Goods

15th - 17th

Germany

China

IDEX 2013

17th - 21st

Abu Dhabi

20th - 22nd

Australia

July 2012

August 2012 ACBW 2012 September 2012 Furniture Manufacturing & Supply China

11th - 12th

50th Bangkok Gems & Jewelery Fair

14th - 18th

Thailand

Australian Oil and Gas Exhibition

Thailand International Logistics Fair

19th - 22nd

Thailand

March 2013

Private Label Middle East Dubai 2011

23rd - 25th

Dubai

CeBIT 2013 (IT)

5th - 9th

Germany

Paper Arabia

23rd - 25th

Dubai

Propak Africa

12th - 15th

South Africa

Koplas

12th - 16th

Korea

India Chem

4th - 6th

India

Transinfra

13th - 15th

Switzerland

Foodtech Packtech

9th - 11th

New Zealand

Motortec

13th - 16th

Spain

Analytica China

16th - 18th

China

April 2013 India

October 2012

SMM India 2013

1st April

2011 UFI Congress

1st

Abu Dhabi

Geosynthetics

1st-4th

United States

AutoRomania

1st

Romania

Brasilplast 2013

1st

Brazil

Oil & Gas Ukraine

1st - 3rd

Ukraine

EMAQH 2013

1st-13th

Argentina

Abu Dhabi International Petroleum Exhibition

5th - 8th

Abu Dhabi

Aluminium Dubai 2013

1st

UAE

World Hospital Congress

8th - 10th

Dubai

Intermodal South America

2nd-4th

Brazil

Dubai International Jewellery Week Exhibition

10th - 13th

Dubai

Building Material and Equipment

2nd-5th

Russia

Dubai International Motor Show

10th - 14th

Dubai

International ICT Expo

13th-16th

Hong Kong

Dubai Air Show

13th - 17th

Dubai

May 2013

International Tourism Exhibition (ITE)

14th - 16th

Abu Dhabi

Del Mar Electronics and Design Show

1st-2nd

USA

Roadex/Railex 2011

18th - 20th

Abu Dhabi

Business4Better

1st-2nd

USA

2011 World Robot Olympiad UAE

18th - 20th

Abu Dhabi

India Warehousing Show

2nd-4th

India

The Middle East HR Summit And Expo 2011

20th - 24th

Dubai

Arabian Travel Market

6th-9th

UAE

HR Best Practices in Oil, Gas and Petrochemicals

21st - 22nd

Kuwait

Project Qatar

6th-9th

Qatar

Gulf a la Carte 2011

21st - 23rd

Abu Dhabi

Hofex

7th-10th

China

SIAL Middle East 2011

21st - 23rd

Abu Dhabi

WEPower

12th-14th

KSA

FM Expo + Big 5 Show

21st - 24th

Dubai

Power Gen India and Central Asia

13th-11th

India

Milipol

26th

Qatar

Cards and Payment Middle East

14th-15th

UAE

Middle East Manufacturing Exhibition 2011

28th - 30th

Abu Dhabi

Instal Middle East

14th-16th

UAE

SIM - Signage, Imaging & Media Show 2011

28th - 30th

Abu Dhabi

Distree Middle East

14th-16th

UAE

Airport Exchange 2011

29th - 30th

Abu Dhabi

PALME Middle East

14th-16th

UAE

Global Water and Beverage Technology Congress

29th - 1st Dec

Dubai

Aquatech India

14th-16th

India

Saudi Food, Hotel and Hospitality Arabia

19th-22nd

KSA

November 2012

December 2012 World SME Expo

1st - 3rd

Hong Kong

Middle East Event Show

21st-23rd

UAE

“China Import & Export Commodities Exhibition“

1st - 4th

Malaysia

Cityscape Qatar

22nd-24th

Qatar

World Green Tourism 2011

5th - 7th

Abu Dhabi

Trans Middle East Beirut Exhibition and Conference

29th-30th

Lebanon

50

JULY 2012

Get in touch! Would you like to list your event here? Or better still, list your detailed event profile? If yes, then please contact: aparna@cpidubai.com

events calendar

Glo bal solu tion s

CUS TOM IZED .

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