presents
BUSINESS INTELLIGENCE FOR INTERNATIONAL TRADE www.tradeandexportme.com
Contents
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58 ADVISORY BOARD Key personalities sharing their expertise to ensure that we bring you the latest trends and issues in the field of trade. Hospitality & tourism 60 SHARIA ‘FRIENDLY’ – OR ONLY LUKE-WARM? We take a look at how the hospitality sector adapts to Dubai’s ambition of becoming a regional capital for the Islamic economy. Trade & growth 62 Right on track – Dubai’s growing logistics sector Mustapha Kawam, Managing Director, GES, shares his views on the growth opportunities in this prolific sector.
IP and trademarking are extremely important protections for companies. p72
TRADE AND EXPORT MIDDLE EAST
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66 BRICKS, CLICKS – AND THE WAR ON WASTE Steven Speter, Managing Director, 36 Strategies, reveals how hospitality procurement teams can simplify lengthy processes down to a simple click. Market trends 68 Follow the Silk Road A snapshot of the latest developments in the UAE’s non-oil sector, with special spotlight on the apparel and textile industry – one of the fastest-growing non-oil trading sector in the UAE. VIP interview 72 Local SMEs, global aspirations Sarah Cocker shares exclusive insights on Just Falafel’s world-
Steady signs of a strengthening US economy have caught Federal Reserve officials’ ATTENTION and have the central bank on course to end its bond buying stimulus in October and raise interest rates next year. p76
spanning ambition, her role as Head of Communications and Investor Relations, and expansion strategies that can help every SME widen its horizons… Finance 76 Money watch The team at Western Union Business Solutions provides a comprehensive outlook on the three major currencies in the market – the USD, EUR and GBP. Legal 80 Selling products in the Middle East and North Africa: opportunity or minefield? Legal experts Richard Bell, Partner, Clyde & Co, and Rebecca Soquier, Associate, Clyde & Co, investigate.
TRADE and export middle east
ADVISORY BOARD Trade and Export Middle East presents a dynamic group of industry experts and leaders as part of its Advisory Board. The following key personalities will help add value to our analysis and ensure that we bring you the latest trends and issues in the field of trade.
H.E Saed Al Awadi CEO, Dubai Exports, Department of Economic Development, Dubai
Dr. Adeeb AlAfeefi Director, Foreign Trade & Export Support International Economic Relations Sector, Department of Economic Development, Abu Dhabi
Khalil Saqer Bin Gharib Corporate Communications Director, Dubai Customs
Lakshmanan Sankaran Chairman, Regional Banking Commission (MENA)- ICC Paris
Moin Anwar Trade & Investment Commissioner (Middle East), New South Wales Government, Australia
Peter Fort CEO, Ras Al Khaimah Free Trade Zone
For more information, please visit www.tradeandexportme.com
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19 - 20 NOVEMBER 2014
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HOSPITALITY & TOURISM
SHARIA ‘FRIENDLY’ OR ONLY LUKE-WARM? Eight months after Dubai announced ambitions to become a regional capital for the Islamic economy, the results are beginning to trickle down into the hospitality sector, following the launch of the first certified Sharia compliant hospitality development this year. But where are the other Sharia certified hotels?
An international hospitality market in an Islamic culture such as the UAE, was almost pre-destined to face a certain amount of soul searching, specifically if looking to attract upwards of 30 million visitors, nationwide, from around the world. Creating a cultural melting pot, is more difficult than it looks, and no more so that in creating hospitality experiences which fully embrace Islamic principles. The development of specific Islamic hospitality brands to date has seen stunted growth, the reasons for which are widely debated and contrary to the enormous influx of GCC travellers to the country. Yet, from the UAE’s first Islamic branded operator, Tamini, to the first certified Sharia compliant brand,
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Constella, there is a growing number of hotels, apartments and even tour operators offering services that do not compromise the religious duties of Muslim travellers. Explains Galadari Law partner, Mojahed Al Sebae: “Although an entire book could be written about this, I think Sharia hotels may be simply defined as ‘any hotel that does not breach sharia in any way, including but not limited to, its design, financing and operations’. Sharia hotels maintain certain facilities that enable Muslim travellers to perform their religious duties.” It’s a selling point which has gained further significance since the announcement of Dubai as a capital of the Islamic Economy, and a trickledown effect is beginning. This year, real estate developer DAMAC, which has maintained an interest in serviced apartments for some time, announced the opening of Constella, the first hotel brand which meets a strict 15-point check list devised by Dubai Islamic Bank entity, Dar Al Sharia. The hotel, to be developed in the emirate’s Jumeirah Village Triangle, marks the first time a Dubai hotel will not just be ‘dry’, but even funded and designed according to Islamic principles. “The Sharia compliant hotels you see today are dry hotels. They are not designed or managed as Sharia. We do not know how big the Sharia segment is today, but we have taken the risk to develop hotels that have been imagined from the very earliest stage, as fully Sharia compliant,” DAMAC MD Ziad El Chaar disclosed to Hospitality Business when the Constella project was announced in May of this year. The brand will cater to visitors from the GCC, Pakistan, India, UAE and also Indonesia and Malaysia.
Yet for all the progress Constella marks, it is literally one hotel in a pipeline that will supply in Dubai alone increase by 8.6 per cent this year, according to STR Global’s June figures. Comments Sebae: “In my view, the shortfall in Sharia hotels could be due to several reasons including the conservative nature and investment approach of the majority of investors in this region. “The hotel industry, until recently, has not been a very attractive investment due to the Sharia compliance issues of lack of financing and the misperception that a sharia compliant hotel may not be profitable, or may be less profitable, than ordinary hotels.”
Sharia ‘friendly’ snapshot Tamani – The UAE’s first branded Islamic operator, across its 55 storeys Tamani hotel offers two pools and a female only floor. Gloria – Family focused, rather than defined as Sharia, Gloria plans to spread its message of dry hospitality to every major GCC city within five years Constella – the first certified Sharia compliant hotel, according to a 15-point check list that covers everything from separate fitness and dining facilities to the funding model of the building HMH – the first hotel chain in the UAE to offer alcohol-free accommodation Rotana – diversifying its offering, Rotana has a number of brands for both the apartment and dry hotel element of its 50+ hotel portfolio Amlak Hotels and Tourism Investment Company – Jordanian chain to open hotels in every GCC country by 2017
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HOSPITALITY & TOURISM
Striking a balance on this issue, hotels operated by Dubai-based HMH class themselves as ‘Halal friendly’ and report no impact on the bottom line. Rather than being ‘Sharia’ hotels, while there is no alcohol served on the premises, guests are permitted to bring their own. COO Lauren Voivenel explains: “It isn’t an obstacle to do business. We average a very decent GOP in all our hotels and we perform as well as the brands who do serve alcohol. He adds: “People come to our hotels looking for a safe, family environment, this isn’t about exclusively looking after the Middle East market.” Non-official rating In waiting for the concept of Sharia hotels to take off, the idea of ‘Halal friendly’ hospitality has slowly made its way around the globe, not only spurred by outbound tourists from the GCC, but also Malaysia, Indonesia and Turkey. Supporting the sector globally – and in the absence of take up for strict Islamic hospitality principles outside of Saudi Arabia – Crescent Rating devised its own three tiered system, covering aspects from prayer facilities, to the provision of Halal food in the hotel, or directions to a nearby Halal restaurant. Hotels must meet the minimum criteria across a number of categories with the entire system applicable to cruises, theme parks, airports and even travel agents. Founder and CEO of Crescent Rating and sister company HalalTrip, Fazal Bahardeen, explains: “We allow hotels to target this segment without the need to brand themselves as Halal or Sharia compliant properties. Through both Crescent Rating and HalalTrip, we help them reach out to their target market and this allows the hotel to cater to a wider range of clients while still catering to the Halal conscious Muslim traveller.” Bahardeen, who himself has authored a number of articles on the subject, says the understanding of the faith-based needs of Muslim travellers will not only spur tourism in a destination, but also support the industry’s verticals and therefore a country’s SMEs.
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Embracing Sharia But while the less regimented concept of Halal friendly tourism has cultivated a Muslim-friendly global hospitality sector, the provision of strictly Sharia compliant hotels in the UAE, akin to the principles which are mandatory in Saudi Arabia, is still lacking. The potential for the UAE, should these opportunities be explored, could see a significant rise in the number of stop over tourists who visit Saudi Arabia for pilgrimage and wish to see Dubai, Abu Dhabi or the UAE’s other emirates, while in the region. Consider that in 2013, Saudi Arabia was ranked 13 in a list of 15 countries with the highest growth in tourism receipts last year and the total number of Saudi Arabian nationals visiting the UAE over the same period topped 1.5m, spending $420.4 million on their Visa cards in the process, according to data released by the bank earlier this year. Says Bahardeen: “The hotel brands in the Middle East have a huge opportunity to cater to the needs of the Muslim traveller. Already being in a setting which is Muslim friendly, allows them to target this segment without much effort. However, he does add, that specific compliance may not require promotion. He says: “In my opinion it is not really necessary to start branding yourself as a Sharia Compliant Hotel, but to ensure you have the services that this market is looking for and reach out to them through right channels.”
Over recent months, Dubai government specifically has instructed a number of authorities to develop regulations, standards and guidelines for the industry as a whole when it comes to the development, and prominence, of Sharia compliant hotels. Despite the potential management challenges, it is this which Sebae believes will act as the catalyst for a wave of hospitality establishments which embrace the region’s predominant religion, in a way that is reflective of the local culture. “I believe clear and simple yet specific regulation, guidelines or standards should be issued by the local authorities in order to support and simplify the sharia hotel development local and regionally.” When it comes to the impact on management and development of the UAE’s hotels, the implications could be significant. Unlike Bahrain, which last month reinforced its blanket ban on the service of alcohol at any of the country’s 3-star hotels, Dubai is famous for its support of a free economy, and such measures could almost be ruled out with a guarantee. However, depending upon the success of the first Sharia certified hotel, the lead taken by other emirates could, in future, create a very different landscape. For an online version, please visit: www.tradeandexportme.com/2014/09/shariafriendly-or-only-luke-warm/
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Right on track Dubai’s growing logistics sector
Being at the crossroads of international trade and commerce, located between the Far East and Europe, the United Arab Emirates and Dubai is the perfect gateway to the East and West. There is no question that Dubai is positioned as a hub for international trade and is now advancing to become a hub for international transport and logistics. Trade and Export Middle East looks into this development and speaks to Mustapha Kawam, Managing Director, Globe Express Services about his views on this sector and its future growth. 62
Dubai’s geographic location has helped it gain access to prominent markets such as Africa, India and China. Dubai has also grown at a phenomenal rate over the years, and has been positioned as the top third export and re-export hub following Hong Kong and Singapore. It is also home to one of the largest and fastest-growing ports in the world. As the UAE – and Dubai – further diversifies its economy, significant amounts of investments are being put in place to fast-track the development of state-of-the-art infrastructure and logistics facilities in the country.
A recent report by Frost & Sullivan indicated that the total logistics market in the UAE in 2013 was estimated to have reached USD 23.4 billion, contributing six per cent to the gross domestic product (GDP) of the country. The consulting firm also highlighted that following the surge in import and trade volumes and the steady upward trend of local manufacturing, the value of the UAE’s logistics sector is likely to increase by about 15.4 per cent reaching USD 27.0 billion by the year 2015.
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THE logistics market in the UAE in 2013 was estimated to have reached USD 23.4 billion, contributing six per cent to the gross domestic product (GDP) of the country.
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With the development in Dubai’s logistics sector such as the expansion of Jebel Ali Port and Jebel Ali Free Zone (JAFZA) together with mega-complex Dubai World Central (DWC), home to Al Maktoum International Airport and Logistics City, the UAE is right on track to strenghten its status as an international logistics hub. Mustapha Kawam, Managing Director of Globe Express Services, echoed this sentiment. We asked him about how he sees the logistics industry developing in the future and to this he said, “The UAE logistics business in general will
remain on the rise in terms of growth, ably demonstrated by the entry of new projects being developed and is estimated to be worth AED 27 billion by 2015.” “Today, Dubai is the unquestioned trade and logistics hub serving a region that houses a population of over two billion people, where 14 per cent of UAE’s GDP is contributed by the Supply Chain and Logistics industry. Overall, the GCC logistics sector is estimated at around AED 129 billion, where Saudi Arabia, the UAE and Oman contribute 85 per cent of this share,” he added. Globe Express Services, (GES), being one of the world’s top 100 global logistics providers, has played a pivotal role in supporting the growth of the UAE’s logistics sector. Mustapha Kawam further highlighted that GES has made great efforts in realising the growth of the country’s logistics sector. “We are doing our best in complementing this growth. This is evident in the recently completed AED 35 million development project that we did, which consists of an industrial warehouse and accompanying office in Dubai’s Jebel Ali Free Zone. This project further expands its supply chain solutions covering warehousing and packing services, specialty handling and lifecycle management. GES also opened a new office in Abu Dhabi to help develop new business and industry verticals in the country.” GES offers a robust, wellrounded suite of logistics services to companies doing business in Asia, Europe, the Middle East, North America, Latin America and around the world. Over the years it has been providing services such as ocean & air freight forwarding, overland transport, Customs brokerage & compliance consulting, cargo consolidation, warehousing & distribution, specialty cargo handling and project logistics. Its state-of-the-art technology platform provides outstanding
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The upcoming Expo 2020 is also expected to boost the industrial sector of Dubai, thus complementing the logistics segment of the economy. Mustapha Kawam, Managing Director, Globe Express Services
visibility, flexibility and customisation potential, while its highly trained personnel shares a commitment to providing the ultimate customer service. The success of the UAE and Dubai as international logistics hub reflects on the success of companies such as GES, their achievements further supporting the country’s vision for globalization. Mustapha Kawam has been a driving force behind GES’s success, helping strengthen its stronghold in Kuwait and its further expansion in the region. Speaking more about the company, he made mention of its accomplishments over the past year, “Globe Express Services had many recent achievements especially in the last year (2013). The company’s gross revenue for its UAE operations in 2013 has increased by 27 per cent compared to 2012, while in Kuwait increased by 38 per cent in comparison to the previous year. The key achievement for 2013 was the company’s UAE office being awarded the Certificate of Approval by the Bureau of Assessment Services, recognising the company’s compliance with the international standards of ISO 9001:2008. This Quality Management System is applicable to the company’s full array of services that include logistics, cargo transport by heavy trucks, customs brokerage, cargo loading & unloading, cargo packaging, air cargo services, general warehousing, and sea cargo services.” “Some other achievements of the company were being honoured
Key developments in the UAE’s logistics sector: Jebel Ali Port and Jebel Ali Free Zone expansion
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Dubai World Central (DWC) – opening of Al Maktoum International Airport and Logistic City
DWC link to Jebel Ali Port and JAFZA via Dubai Logistics Corridor
Midfield Terminal Complex development at Abu Dhabi International Airport
with the Platinum Award by Maersk Line Shipping, the world’s largest ocean carrier and the most reliable container shipping company and their appointment of V4 Advisors, an environmental advisory services company with extensive experience in the field of emission reduction, energy and water audit, air pollution, and renewable energy, to significantly reduce its Greenhouse Gas emissions, which was part of the company’s plan to define and implement their environmental strategy,” he said. The power of Expo 2020 The upcoming Expo 2020 is also expected to boost the industrial sector of Dubai thus complementing the logistics segment of the economy. The much awaited event will trigger huge investments in airports, roads, ports which will bring significant benefits to the transport and logistics sector of the country. We then asked Mustapha Kawam on how he thinks the Expo 2020 can affect the growth of UAE’s logistics segment, and to this he responded, “In preparation of World Expo 2020 in the next six years, we should expect a complete modernisation and fine tuning of every single aspect of business in Dubai and also expect a huge and continuous growth in the cargo and logistics sector as well. Dubai Maritime City Authority (DMCA), the government authority charged with regulating, coordinating and supervising all aspects of the maritime sector in Dubai, recently announced its firm commitment to support the Dubai Maritime Vision 2030 plan of creating a vibrant and safe maritime environment in the next two decades – thereby establishing Dubai as a leading global maritime hub.” Furthermore, he mentioned that the DMCA says that Maritime Vision 2030 will elevate Dubai’s status as a prime international logistical gateway and a transshipment
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TRADE & GROWTH
6%
15.4%
logistics sector’s GDP share - USD 23.4 billion (estimated value)
projected growth by 2015 to reach USD 27 billion
LOGISTICS MARKET SEGMENTS BY REVENUE CONTRIBUTION:
62%
18%
freight forwarding
transportation
16%
warehousing
4% value added logistics services (packaging & labelling)
Source: Frost & Sullivan
hub backed by rapidly increasing passenger and freight transport volumes and a multifaceted trade corridor. Breaking barriers The success of any industry does not go without facing challenges. Speaking about the bottlenecks that the logistics sector is facing in the region, Mustapha Kawam emphasized that as this industry continues to grow, local logistics players should not be lulled into complacency. “We need to ensure that we continue to build on our success. For starters, we need to be more committed to innovation and keep up with technology. At Globe Express we count optimum use of cutting-edge technologies among our core competencies, because there will always be better ways of doing things.”
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“Supply chain and logistics services rely on the proper coordination of several parties, from the consignee to the freight forwarder, for successful execution. Our industry needs to constantly strengthen ties between all the actors involved; thus fostering productive partnerships between clients and logistics providers on one hand, and freight forwarders and carriers on the other. Easier said than done in this fast-paced industry of ours,” he added. Moreover he emphasized that given today’s highly competitive markets, customers will lean towards companies that can think out of the box and deliver tailored solutions. Industry players need to take into account the changing needs and beliefs of our serviced markets. Clients want to wait less and yet receive more. Failing to adjust to market trends and consumer
preferences is a perfect recipe for failure in this sector where the customer is king. “GES has continued to support the growth of the logistics sector in the UAE and the Gulf region in general. We have opened three new branch offices in the US (Chicago, Boston and Baltimore) and four sales offices in China as part of our global expansion efforts. We will continue our goals in office expansion in the coming few years especially as the Expo 2020 nears closer, to further compliment the growth of this sector,” he concluded.
For an online version, please visit: www.tradeandexportme.com/2014/09/righton-track-dubais-growing-logistics-sector/
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BRICKS, CLICKS – AND THE WAR ON WASTE Steven Speter, Managing Director, 36 Strategies, reveals how hospitality procurement teams can simplify lengthy processes down to a simple click, and lends four top tips for those looking to optimise procurement operations. Industry correspondent Sophie McCarrick reports.
With offices in Dubai and Muscat, 36 Strategies provides procurement solutions across the region, delivering savings to their customers while embedding compliance in the day-to-day operations; all with a simple platform that employees actually enjoy using via a smart-phone, laptop or tablet. The firm’s Managing Director, Steven Speter, reveals that when competing in the region’s ever-growing hospitality industry, the importance of maintaining strict adherence within a procurement team and its operations becomes vital to the success of a brand. “Procurement sits on 25 to 60 per cent of the total cost of a company depending on the industry, yet often there is no proportionate amount of organisational focus on it. So getting it right can unleash great potential which can be turned into a competitive advantage,” explains Speter. Through 36 Strategies’ E-procurement platform, procurement teams are able to simplify the procurement process down to a click of a finger, and retrieve
speedy purchase order (PO) approvals, wherever and whenever they like. The platform, which brings the traditional paper-based procurement process online and mobile, has proven to cut out the cycle time (from when a purchasing requisition is raised until it is approved and a PO is issued to the supplier) from days to minutes, thanks to the mobile app which allows managers to approve orders real time no matter where they are. He says: “Not only is the admin cost of processing orders saved but greater contract compliance is achieved because only the approved suppliers and products are made available for
Typical implementation by 36 Strategies can achieve
18% Steven Speter, Managing Director, 36 Strategies
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Immediate procurement cost reduction
99.8%
Guaranteed delivery performance of orders being ‘Delivered On Time In Full’ (DOTIF)
38%
Improvement in procurement cycle time, from order placement to delivery
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Four top tips to cut waste from procurement
Manageable operations Consolidating procurement processes, when companies source and procure through 36 Strategies they will only have one reliable supplier to deal with, making operations more manageable. Speter comments: “We procure and deliver more than 800 consumables and products in categories catered to
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2
TIP
ordering. Because the cycle time vastly improves, it restores trust in the supply and further cost is saved as employees will not have the need to turn to petty cash and maverick spend to get the items delivered on time.” The 36 Strategies platform takes four weeks to implement into a procurement department, generating both time and cost savings immediately after. “Our cloud-based solution takes away the complexity of the entire procurement and supply chain process, allowing our clients to focus on their core businesses. The paperless process reduces administration and management, resulting in substantial cost savings for the entire business,” Speter comments.
Consolidate your suppliers and set up framework agreements
Needless to say, consolidating your suppliers will give you better buying power and therefore a better price. But this is also about creating a win-win relationship with your suppliers. For example, framework agreements that
the hospitality industry in addition to facilities management and construction sectors. “We have a quality control in place to ensure that all products are delivered in the promised quantity and quality, so there is no more time wasted on phone calls and e-mails with multiple suppliers,” he adds. Clamping down on late deliveries and un-reachable stock, Speter explains that with a dedicated fleet of trucks and a warehouse holding three week worth of inventory, 36 Strategies
3
TIP
Knowing the exact specifications of the products you procure, and being able to consistently articulate those to the suppliers will eliminate the risk of receiving the wrong quality or type of product. If not managed tightly, you place your product quality and availability in the hands of your supplier, risking the wrong items showing up at your door with unnecessary time and money spend as a result. The aim is to make sure the supplier delivers you the right product at the right time so no time or money is wasted.
include volume forecast or indications will allow suppliers to plan to prevent out of stock situations.
Make sure your supply chain fulfils your delivery needs
Do you have a reliable and efficient supply chain set up? Do you have tens or hundreds of suppliers each delivering products to you every day or do you have consolidated deliveries? Think about how you would like to receive your deliveries and ensure the logistics are set up in a way to accommodate it.
4
TIP
TIP
1
Communicate specific requirements to suppliers to ensure you get the right product - every time
Make it easy for your employees to execute tips 1, 2 and 3
These tips all sound good on paper but the biggest challenge is to make sure everyone in your organisation executes them. Implement an e-Procurement platform and make it easy for your employees to comply with the governance and framework you have set up. It will make everyone’s lives much easier.
is able to guarantee delivery within 72 hours of placing an order. With a focus on quality, Speter concludes: “We are committed to meeting and maintaining world standards for quality, continuous improvement, and customer satisfaction, and we are certified in accordance with ISO 9001, ISO 14001, and ISO 18001.”
For an online version, please visit: www.tradeandexportme.com/2014/09/bricksclicks-and-the-war-on-waste/
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MARKET TRENDS
Follow the silk road The non-oil sector in the UAE is continuously witnessing a strong performance; according to the latest data released by Federal Customs Authority, UAE’s non-oil trade reached AED 256 billion during the first quarter of 2014 alone. In the following feature, Trade and Export Middle East takes a look at the latest development in this sector and gives an overview on the apparel and textile industry one of the fastest-growing nonoil sector in the UAE.
10% US and Carribbean
TOP TRADE PARTNERS (NON-OIL TRADE VOLUME): Asia-Pacific and Australia
As reported by the Dubai Statistics Centre, data released by the Federal Customs Authority (FCA) further showed that imports accounted for 65 per cent or AED 166.4 billion of the non-oil trade, while exports and re-exports accounted for 11.8 per cent (AED 30.2 billion) and 23.2 per cent (AED 59.4 billion) respectively. The data reflects the strong growth in the non-oil trade sector in the UAE and mirrors the sound economic and trade policies in the UAE.
Europe MENA US and Carribbean West and Central Africa East and South Africa
Source: Federal Customs Authority
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MARKET TRENDS
27% 14%
Europe
MENA
43%
4%
Asia-Pacific and Australia
West and Central Africa
3%
East and South Africa
14%
(AED 3.2 billion)
14%
26.4%
(AED 3.2 billion)
(AED 6 billion)
Kuwait
36.2%
(AED 8.3 billion)
Oman
NON-OIL TRADE WITH GCC STATES
9.4%
Qatar
(AED 2.2 billion)
Focusing on the Gulf Cooperation Council (GCC) countries, the FCA data highlighted that non-oil trade between the UAE and GCC members reached AED 22.9 billion during the first quarter of the year. GCC imports accounted for AED 7.4 billion, while exports and re-exports represented AED 7.7 billion each.
Saudi Arabia
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Bahrain
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MARKET TRENDS
UAE’s textile industry reached approximately USD 13.2 billion in revenues in 2011
UAE textile imports: UAE has imported most of its textile and textile products in 2011 from the following: CHINA valued at USD 2.2 billlion
The UAE has grown at a phenomenal rate over the years. To date it is has one of the most competitive and diverse economies in the Middle East as it continues to invest in the growth of its non-oil industries. The textile industry in the UAE remains to be one of the most significant industrial sectors, and is one of the biggest contributor of employment in the country. In fact, recent reports reveal that it is the second largest trading industry in the UAE next to oil. Recent reports also say that the UAE controls 5.5 per cent of the world’s textile market, as clothing emerges as the world’s fourth largest trading segment in fashion and apparel. Data released by the Dubai Statistics Centre revealed that in 2011 revenues from UAE textile industry reached approximately USD 13.2 billion (AED 48.5 billion), and recorded an annual cumulative growth of 9.9 per cent between 2006 and 2011. UAE is one of the major textile markets of the world which includes fibres, fabrics, cloth, apparels, outerwear and several others. For an online version, please visit: www.tradeandexportme.com/2014/09/ follow-the-silk-road/
GERMANY with USD 55.8 million
JAPAN
USA
valued at USD 146.2 million
with USD 102 million
INDIA valued at USD 874.7 million
Re-export markets: UAE re-export of textiles and textile products in 2011 was directed to: IRAN with a value of USD 922.9 million
CHINA with USD 10.3 million
Germany USA
with USD 6.6 million
with USD 4.1 million
INDIA with USD 39.9 million
Source: Dubai Statistics Centre
Analysts from market intelligence unit Euromonitor International report the following trends within the UAE apparel-textile industry: Growing number of international apparel brands entering United Arab Emirates
Apparel specialists lead sales but department stores and hypermarkets are gaining ground
The competitive environment in 2012 was characterised by a rising number of brands entering the country, with apparel sales becoming increasingly consolidated towards the end of the review period. Nonetheless, consolidation slowed down during 2012 as a number of high end luxury retailers also entered the market. Moreover, most new apparel brands in the country are franchised by existing leading players.
Consolidation was also linked to on-going retail developments in the United Arab Emirates during the review period due to the growing popularity of shopping malls. Apart from open markets (included within other non-grocery retailers), apparel specialist retailers remains the most important distribution channel for apparel. As shopping is increasingly regarded as a leisure pursuit, both for domestic consumers and the large number of incoming tourists, many consumers are switching from buying from independent specialist retailers to buying products from leading brands in air conditioned shopping malls. In addition, department stores and hypermarkets also continue to gain share.
Rising demand expected during forecast period Forecast period growth will be higher than during the review period in both volume and constant value terms. Growth in apparel will be linked to ongoing economic growth in the United Arab Emirates, with a growing local population as well as rising disposable income levels encouraging consumers to spend more. Growth is also expected to be supported by a further increase in tourism, with the United Arab Emirates remaining a popular shopping hub in the region.
Source: Dubai Trade | Dubai Statistics Centre | Zawya | Euromonitor International
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VIP interview
Local SMEs, Global aspirations Is your SME entering new markets and eyeing international expansion?
In an exciting interview with Trade and Export ME, Sarah Cocker shares exclusive insights on Just Falafel’s worldspanning ambition, her role as Head of Communications and Investor Relations and expansion strategies that can help every SME widen its horizons… 72
What was the biggest challenge that Just Falafel faced when undergoing international expansion? Making sure that we had the right people deployed in geographic and operational areas to support our expansion; this is a crucial area that must be watched and meticulously planned for.
A lot of businesses fail to customise their offer to best suit the expectations of the foreign market they are in. What are key considerations to bear in mind? Research is of paramount importance here as is local knowledge. For example, we are just about to open in India in November and we have already carried out extensive research and revised our core menu to take account of local tastes. Also, you have to assure that you have sound supply chains and of course great partners to set up with you. Even then there will be surprises! Like any new venture, you cannot completely eliminate risk but you can minimise it.
How important is the role of a ‘brand image’ for a company looking at international expansion? Brand image is important from your first day as an operating company until your last. The difficulty of expanding at home or abroad is to keep everyone aligned with your brand and more importantly your brand values. This should come from your core brand values. You have to know very clearly who you are and what you are trying to achieve. Then everything flows from this. At Just Falafel, we are on a journey with our customers to redefine street food; offering eating enjoyment by escaping to old world flavours. We want to do this with the finest ingredients at a good price whilst being part of our community. Our mission is to “Feed the Hungry”, which obviously plays to our intentions as a food group but is core to our objective of working with the UN World Food Programme. Your brand values have to percolate through your organisation otherwise they are hollow and ineffective. For instance, Mohammed Bitar, who is the Managing Director here at Just Falafel, does not want us to clock in and out but to treat the Just Falafel brand as our own. We don’t just come to work and then leave; it’s more like a start-up mentality with pizza feasts and cable TV. If you are working till late, it feels like you are essentially ‘hanging out’ because you have work to get done rather than watching the clock and escaping as soon as you can.
Do you think PR and marketing can be crucial to a company entering a new market? PR and marketing are crucial to a company entering or growing in a market. However, it goes without saying that your product or service
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VIP interview
Listed or not, transparency is key especially with social media effectively acting as a global regulator for companies and their actions. has to be the best otherwise you will soon be found out. Marketing can “boost” awareness of your product but it cannot “make” it a good product.
For companies looking to expand overseas, how important is it to have a division dedicated to investor relations? Is it necessary at all? Investor Relations is most traditionally associated with listed companies. However, in my role as Head of Communications and Investor Relations, my job is to make sure investors, customers, partners and employees all understand what our strategy is and what part they play in that, which is what makes it so fascinating. Investor relations, especially for a listed company, is a sign that the company takes its obligations to shareholders very seriously. However, listed or not, transparency is key especially with social media effectively acting as a global regulator for companies and their actions.
Dealing with local investors can be quite different from international investors. How do you maintain a healthy balance?
Sarah Cocker, Head of Communications and Investor Relations, Just Falafel
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All investors – public, private, local, international – are all people that have invested in your company as they
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VIP interview
IP and trademarking are extremely important for companies to protect themselves.
believe in you. Therefore, in any jurisdiction they should be treated equally and properly, despite differing legislative requirements. They are backing you and can move their money elsewhere, so treating them correctly is key.
What top tips would you give SMEs to effectively manage investor relations? Good relationships with investors and banks (risk-partners) are often key to an SME’s success. Building such strong relationships means that these entities are familiarised with the management and personality of the brand really well so you are not starting from zero when you really
need funds, advice and so on. Dubai has several entities that can help SMEs understand their roles and obligations such as the Middle East Investor Relations Society.
How do you use social media and digital platforms to benefit the company’s investment proposition? Social media and digital platforms have been instrumental in Just Falafel’s growth, as you know Facebook has done two cases studies on our use of social media to elevate and engage people with our brand. That said it is just not possible to engage as a company anymore, especially a global company unless
The different stages of an SME’s growth cycle
Within SMEs there are very specific stages of growth, quite similar to those of growing children. In both scenarios, at every stage, there are challenges and, not to forget, huge rewards! Here, we present an overview of the different stages:
Another challenging aspect is hiring the right talent as they are still buying into the company’s story and the management. At this stage, you are essentially playing the balancing act as the wrong hire can negatively affect your small team or if you do not hire quickly enough, your expansion can be affected as you do not have enough manpower get things done.
Baby stage This is the stage wherein your SME is operating one store/ restaurant and you take care of its every need. You oversee every aspect, which is a great learning process and enables you to understand the nuances of your business very well. This stands you in good stead for your next stage. It’s emotionally exhausting, you learn a lot but once you are through it you are wiser and more relaxed leader. Toddler stage At this stage, the business is more mature – operating around three to four stores or restaurants – and requires you to devise operating systems that can oversee your new business and are also strong enough to withstand the next stage of growth which can be domestic or international. Like a toddler, they can run away from you every now and then so you have to keep a close eye and make sure that you don’t run into trouble. You also have to learn at this point how to let go and delegate certain functions and start to hire specialists wherever financially and strategically possible.
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Teen stage This is where you need to make certain rules and stick to them. That does not mean being rigid and unwilling to change – because the market place is dynamic. However, putting into place key frameworks, checks and balances and standards will help safeguard future expansion. This is quite frankly where mistakes will be made, as any parent will tell you, as you try to calibrate constantly to make sure your organisation is operating and communicating fluidly and no black holes are developing.
Adulthood stage By the time you’ve reached this stage, all the lessons you have learnt along the way – both good and bad – come to fruition. You start to become more focused and confident of your objectives. If your systems are strong, you can tolerate extremely high rates of growth.
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you have the kind of reach that this medium affords you. These platforms have become an essential tool enabling all parts of your business to communicate. Although such activity needs to be closely managed with the correct guidelines in place. We are often humbled at Just Falafel by the number of people that want to get to know our brand better be that potential investors, franchise partners or customers. We feel honoured by that. By nature of our extensive expansion plans, our brand has been receiving vast exposure. In fact, we currently have two million followers on Facebook.
How do you manage to work around the different cultural sensitivities when doing business overseas? We are very lucky to have the UAE as a base for our HQ because it is an international hub for business and pleasure with literally the whole world in one place. As a result, it is such a great test bed for new concepts and new menu items as you automatically have a global audience. That said we of course seek advice on the ground and do our homework before we enter new markets to make sure we have a deep cultural understanding of our customers’ and partners’ needs and tastes.
Intellectual Property (IP), and its proper management, can be a major concern for investors and other stakeholders. What is the best way to tackle issues surrounding IP? IP and trademarking are extremely important for companies to protect themselves. In many countries a
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FAST FIVE WITH SARAH – quick tips on international expansion • Hire the right people, who have international experience and industry knowledge. • Link up with local partners wherever appropriate – this can be the key to success. • Implement systems that can tolerate increased volumes – be they financial, operational or communications. • Know your strategy and don’t get carried away. Make a strategy and ensure that you can support it either via external partners or with in-house talent. • Do your research but don’t also become paralysed by fear. trademark is obligatory before you can even begin to operate. This can be a costly process and can therefore be a barrier to the global ambitions of smaller SMEs.
In light of the fact that the Just Falafel family is rapidly growing, how important has creating and maintaining the corporate culture been? The beating heart of a company is its core values. Without those a company can be operating but will never achieve true success in my view. The reason being that if you do not know who you are, or what you stand for, how will you be clear on where you are going? This has huge ramifications for your company strategy, policy and employee alignment etc.
Just Falafel is of course a privately owned company, but it has expressed interest in being publicly listed. What are key considerations to bear in mind before taking this big step?
A lot of times you find that SMEs are on a trail to publicly list themselves and see this as the ultimate goal, when in fact being listed does not necessarily suit every business and its owners. For instance, some local businesses do not want to relinquish the control. Often it is the promise of liquidity or marketing purposes that drives this but maintenance of your shareholder base is a large responsibility that requires management time and resources so it should not be undertaken lightly as any slip ups, which you have seen with many companies around the world, can devastate your share price.
For an online version, please visit: www.tradeandexportme.com/2014/09/localsmes-global-aspirations/
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FINANCE
Money watch
The team at Western Union Business Solutions shares with us a comprehensive outlook on the three major currencies in the market – the USD, EUR and GBP.
USD The forecast calls for smoother sailing for the US currency which has been on a tear for the better part of the summer. The US economy has regained a bounce in its step, thanks to the strongest stretch of monthly hiring in more than a decade. Moreover, trends in housing have been positive and could add another tailwind to the economy over the balance of this year. Consumers continue to spend and growth continues to quicken for manufacturing and services companies. Steady signs of a strengthening US economy have caught Federal Reserve officials’ eyes and have the
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central bank on course to end its bond buying stimulus in October and raise interest rates next year. Mounting US optimism has rewarded the Dollar with its most meaningful rally in a while and has it poised for ongoing appreciation. The buck’s outperformance also traces back to weakness abroad in places like Europe and Japan. The Eurozone economy flat-lined during the second quarter while Japan shifted into reverse and contracted nearly seven per cent. Sputtering growth abroad points to more stimulus overseas at a time when the Fed is leaning the other way and contemplating when to raise rates from record lows. Bear in mind, though, that risks remain and lurk near the surface for
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FINANCE
the US Dollar. Take US bond yields, for instance. They help shape how attractive investors perceive the US currency. The yield on the 10-year note recently sank below 2.40 per cent, the lowest in more than a year. The longer yields hover lower, the more of a drag they can be on the Dollar, limiting its upward mobility. Hurdles ahead of the Dollar in September include the monthly jobs report on September 5, and a Federal Reserve meeting on September 16 to 17. Further improvement on the jobs front would keep the Fed on a path to raising rates next year, which at the very least keep a sturdy floor under the Dollar. Critical data September 2: US August ISM Index September 5: US August Nonfarm Payrolls, Unemployment September 12: US August Retail Sales September 17: US August CPI September 17: US September FOMC Announcement
Economic Indicators 3-month deposit: 0.23% GDP: 4.0% (ann.) Q2 Inflation: 2.0% July Unemployment: 6.2% Jul Trade deficit: -US$ 41.5 billion June
EUR What will the end of the third quarter hold? There are a number of variables that will continue to sway currency markets towards the end of the third quarter, but ultimately the euro’s direction should come from the European Central Bank’s monetary policy outlook. It should not be forgotten that the September ECB’s policy announcement will need to be taken in the context of what investors are
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facing in the months ahead. There still remains a high degree of external risk stemming from geopolitical concerns (Ukraine, Iraq, Gaza) as well as the Scottish referendum on the 18th of the month. Furthermore, speculation over the outcome of the ECB’s stress tests/ asset quality review on European banks going into October could sway markets temporarily. Once markets get past geopolitical risk, referendums and stress test results, focus will continue to fall back on where the Eurozone economy is headed and what will need to be done to support it. At the central bank’s August meeting, policy makers acknowledged the external downside growth risks for the economy, but also said that it was too soon to measure any prolonged negative impact. Perhaps that was slightly optimistic. While Russia is only Germany’s eleventh largest trading partner, the government announced that exports fell 15.5 per cent in the first half of this year. The pace of export declines to Russia picked up over the second quarter, which certainly did not help growth figures. Growth in Italy and France turned negative over the second quarter, while Germany’s 0.7 per cent q/q growth rate seen earlier this year dropped to zero per cent. The Eurozone growth outlook remains weak according to economic data. At the end of August flash PMI surveys, which monitor growth in the manufacturing and service sectors, came in below forecast suggesting a slower pace of growth for the Eurozone continues and that the recovery process remains hampered. What was more disturbing was that the inflation component of the PMI survey showed firms cutting prices for the 29th consecutive month, despite the extraordinary easing practices taken by the ECB in June to halt deflationary tendencies. Indeed, the lack of private sector loan growth and slack in the economy remain a primary threat to deflationary tendencies that may already be occurring.
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Consumer prices rose 0.4 per cent y/y in July, which is the same level that was seen at the height of the financial crisis in 2009 and well below the central bank’s two per cent target rate. The bigger problem is that inflation has remained low for a long period of time, which can influence inflation expectations. Currency markets are already pricing in the possibility of a move towards quantitative easing measures by the ECB early next year. The month of September might actually see some investors bringing forward the timeline for policy action by the ECB, which would ultimately help to weaken the currency or at least limit its upside from here. Upcoming Critical Events September 01: EUR August Manufacturing PMI September 02: EUR July PPI September 03: EUR August Services PMI and July Retail Trade September 04: EUR ECB Monetary Policy Committee Meeting September 12: EUR July Industrial Production September 15: EUR July Trade Balance September 17: EUR August HICP September 30: EUR August Unemployment
EUR Economic Indicators 3-Month Deposit Rate: 0.19% GDP (annual rate): 0.70% Inflation (annual rate): 0.40% Unemployment: 11.5% Trade Balance: EUR 16.8 billion
GBP Coming into August some analysts were predicting that it is now “game over” for Sterling following some aggressive selling in July. Was
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Steady signs of a strengthening US economy have caught Federal Reserve officials’ eyes and have the central bank on course to end its bond buying stimulus in October and raise interest rates next year. this fall really the beginning of a deeper correction lower or just a temporary levelling out? Mark Carney’s latest monetary policy guidance ahead of September’s Scottish Independence vote are currently pointing to more potential losses for the Pound in the coming weeks. Sterling suffered its biggest one-day fall in nearly six months after the Bank of England’s Quarterly Inflation Report in August caused markets to unwind bets on Governor Carney raising interest rates before 2015. The Bank of England said that with wage growth still so weak, it was not in any hurry to begin hiking borrowing costs. The news coincided with figures showing that British wages fell for the first time since 2009, despite the UK’s unemployment rate hitting its lowest point since 2008. More losses for Sterling followed later in August, triggered by unexpectedly weak UK inflation data which gives the BoE more room to hold off on raising rates. Sterling has plunged six cents in the space of just five weeks against the Dollar, coming close to five-month lows towards the end
of August. This has also created problems for Sterling against other currencies including the Euro. The latest UK wage growth and inflation figures will be key focal points again in September while minutes from the BoE’s September meeting, due to be released on September 17, are likely to be overshadowed somewhat by the Scotland vote a day later. Nevertheless, the minutes could help Sterling build part of a recovery. In August, two BoE MPC members voted for higher interest rates. If this 7-2 vote becomes 6-3, and Scotland also votes against breaking away, then the Pound could snap back. Key Events September 03: GB August Services PMI Survey September 04: BoE Interest Rate Decision September 16: GB August Inflation September 17: BoE September Meeting Minutes September 18: Scotland Vote on Independence
Economic Indicators BoE Interest Rate: 0.5% GDP: 0.8% Q2 (q/q) Inflation: 1.6% July Unemployment: 6.4% June
For an online version, please visit: www.tradeandexportme.com/2014/09/ money-watch/
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LEGAL
Selling products in the Middle East and North Africa: opportunity or minefield?
More and more international manufacturers are looking to the MENA region as a burgeoning growth market - and locallybased SMEs will often look to the region’s tried and tested export routes as a traditional way of taking their business to the next level. Yet the linkage between manufacturer and local distributor can be complex and weighted towards local interests. Richard Bell, Partner, Clyde & Co, and Rebecca Soquier, Associate, Clyde & Co, investigate.
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With its oil wealth, population growth and strong demand for all manner of industrial and consumer goods, the Middle East and North Africa (MENA) region is an attractive market for many manufacturers. There are, however, potential pitfalls in doing business in the region, particularly when it comes to appointing local agents to distribute products in the region. Many states in the MENA region have enacted commercial agency laws which provide that products may only be distributed in that country by a local company or agent. In some states, the commercial agency laws grant local distributors significant statutory protections which override the express terms of a distribution or agency agreement. This can often come as an unpleasant surprise to manufacturers seeking to re organise their distribution arrangements. For the purposes of this update, we refer to commercial agency agreements and distribution contracts interchangeably as “distribution agreements” (although in some
jurisdictions there are differences between the two terms) and local agents as “distributors”. We will examine the types of commercial agency laws manufacturers typically encounter in the MENA region. For ease of reference, we have classified the different commercial agency regimes into three categories: • Protectionist: this category includes states which have commercial agency laws that heavily favour the local distributor; • Moderate: this category includes states which have commercial agency laws that grant the local distributor a certain degree of statutory protection while maintaining some flexibility for the manufacturer to terminate the distribution agreement and appoint other distributors; • Free market: this category includes states which do not have commercial agency laws and where the courts will generally uphold the manufacturer’s
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LEGAL
contractual right to terminate the distribution agreement and appoint other distributors. For each category, we consider the common traits in the laws, focusing in particular on the rules relating to termination of the agreement, the remedies available to the local distributor and the possibility to contract out of application of the laws. We also highlight some issues manufacturers should be aware of when entering into or terminating a distribution agreement. Protectionist states In countries such as the UAE, Syria, Egypt and Yemen, local distributors who have been granted exclusive distribution rights to a specific product have the right to register their agreement with the state’s commercial agency registry. Upon registration, the local distributor will (with some minor variations) be granted the following rights and protections:
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• Referral of disputes to the local courts: the local courts will have exclusive jurisdiction over any dispute arising under the distribution agreement. A clause providing that disputes will be referred to arbitration or to a court in a foreign jurisdiction will generally be unenforceable. • Application of local law: the local courts will apply the provisions of the national law irrespective of the governing law provisions in the agreement. Governing law clauses providing for the application of a foreign law will be unenforceable. • Restriction on the manufacturer’s right to terminate: the distribution agreement will generally only be able to be terminated by mutual consent or by order of the court.This will be the case even if the agreement has expired in accordance with its terms. Further the manufacturer will not be able to terminate the agreement by giving simple notice, even if this is provided for in the agreement itself and even if the local distributor is in breach. • Right to seek a block on the import of products: where a manufacturer has sought to terminate the distribution agreement and appoint a new distributor, the “registered” local distributor may apply to block the import of products through the new distributor. This can effectively prevent the manufacturer from supplying the market through anyone other than the registered distributor. • Right to compensation: if the manufacturer seeks to terminate the distribution agreement through the courts, the local distributor will be entitled to seek compensation. As a general rule, the courts will award damages to the distributor for direct costs incurred (such as hiring and training staff, advertising costs and finance costs on loan facilities), capital investment in the business (setting up showrooms, shops and service facilities) and, in many cases, loss of profit. In assessing a claim for loss of profit, the courts will usually look at net profit generated by the
In some states, the commercial agency laws grant local distributors significant statutory protections which override the express terms of a distribution or agency agreement. local distributor over previous years and use this as a basis to calculate the net profit that would have been earned had the agreement not been terminated. Often, compensation will be awarded even if the local distributor has breached the terms of the agreement, such as by failing to reach agreed sales targets or failing to adequately promote the products. Moderate states This category includes countries such as Saudi Arabia, Kuwait, Jordan, Iraq, Libya and Bahrain where the commercial agency laws provide certain statutory provisions favourable to local distributors but allow the manufacturer some flexibility to terminate an existing distribution agreement and/or appoint a new distributor. The typical features of these moderate regimes are as follows: • Foreign law and arbitration clauses are generally accepted: as a general rule, the courts will uphold and enforce clauses that provide for a foreign governing law and for disputes to be referred to the courts of a foreign jurisdiction or to arbitration. • Possibility to de-register the agreement upon the expiration of the term: while the local distributor will be entitled to register the
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LEGAL
agreement, this does not necessarily prohibit the manufacturer from terminating the agreement. In Saudi Arabia for example, once the term of an agreement has expired, the courts will generally accept that the manufacturer may exercise its right to not renew the agreement without having to provide further justification. • Unlikely for the products to be blocked at customs: there are no legal provisions or mechanisms which allow a local distributor to request a block of the import of products into the state. There may, however, be informal mechanisms that allow the distributor to disrupt the relationship with customers or interfere with market access. • Limited rights for compensation: The local distributor will generally have a right to compensation on the termination or expiry of the distribution agreement but this will usually be limited to damages to actual costs incurred rather than speculative loss of profits or punitive damages. Free market states This category includes countries such as the territory of Palestine and Algeria where there are no specific commercial agency laws and the manufacturer has a largely unfettered right to terminate and appoint distributors in accordance with the terms of the agreement. The typical features of these free market jurisdictions are as follows: • The right to choose foreign law and arbitration clauses as a general rule, the courts will uphold and enforce contractual clauses that provide for a foreign governing law and for disputes to be referred to the courts of a foreign jurisdiction or to arbitration. • The right to terminate the agreement in accordance with the terms of the agreement: the parties are generally allowed to agree on the circumstances under which the agreement may be terminated. Even if the agreement is terminated
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without justifiable cause, the courts will not force the manufacturer to remain a party to the agreement, although the distributor may still have a contractual right to claim damages. • A limited right to seek compensation from the manufacturer: should the distributor wish to seek compensation from the manufacturer for breach or wrongful termination of the distribution agreement, damages will be assessed in accordance with general rules of contract law rather than in accordance with some statutory formula. • No right to block imports: the distributor does not have the ability to block the manufacturer from importing products into the market through another distributor. Key issues for manufacturers In entering into and terminating distribution contracts in the MENA region, it is important for manufacturers to be familiar with the applicable laws and seek advice when appropriate. In protectionist states, the application of draconian commercial agency laws can often be avoided by careful drafting of the agreement and due diligence on the distributor. Where an agreement has been registered, however, it will usually be very difficult to terminate and deregister it unless the distributor agrees. While it may be possible for the manufacturer to obtain a court order terminating and deregistering the agreement, court proceedings can be lengthy and expensive and the manufacturer may be ordered to pay compensation to the distributor at the end of the case. Moreover, the distributor may be blocked from accessing the market while the court proceedings are ongoing. As a result, it is important for manufacturers to approach the termination of a distribution agreement in a protectionist jurisdiction very carefully and, where possible, try and negotiate a settlement. In moderate and free market jurisdictions, the manufacturer may be able to adopt a more robust approach,
although caution is still advised. In our experience, regardless of the jurisdiction, a disgruntled distributor will almost always threaten to sue the manufacturer when the prospect of termination is raised. The key is to assess whether, in light of the applicable law, that threat is a credible one and act accordingly. In light of the legal risks involved, manufacturers selling products in across the MENA region are well advised to look at each jurisdiction individually and seek advice before entering into, or terminating a distribution agreement. Author’s note: At the time of writing this article, Oman had just issued a decree amending its commercial agency laws. On its face value, the decree alters Oman’s status from a protectionist state to a moderate state. We will be publishing a separate article on Oman when the effect of the law change is more fully understood.
Further information If you would like further information on any issue raised in this update please contact: Richard Bell, Partner E: richard.bell@clydeco.com Rebecca Soquier, Associate E: rebecca.soquier@clydeco.com Clyde & Co LLP PO Box 7001 Level 15, Rolex Tower Sheikh Zayed Road Dubai, United Arab Emirates T: +971 4 384 4000 F: +971 4 384 4004 Clyde & Co accepts no responsibility for loss occasioned to any person acting or refraining from acting as a result of material contained in this summary. www.clydeco.com
For an online version, please visit: www.tradeandexportme.com/2014/09/ selling-products-in-the-middle-east-anopportunity-or-a-minefield/
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