EMBASSY OF THE UAE UNITED ARAB BERLIN ECONOMIC BULLETIN

Nr. 35 | November 2020 Content

P. 3 Aviation Industry & COVID19 Emirates SkyCargo to set up the world’s P. 5 New Environment Expo largest GDP compliant air cargo hub in P. 7 UAE extends COVID19 stimulus package for global distribution of COVID-19 vaccine

2020 has been a rather challenging year for the global Aviation Indus- try and it spared no one. When the Covid-19 pandemic struck Emirates SkyCargo is stepping up its read- partners involved in the international throughout the world in March, it iness to handle the logistical complexities vaccine distribution ecosystem and to left much of the industry in a tail- of distributing a potential COVID-19 streamline the carrier’s response to vac- spin. Find out how the UAE avia- vaccine globally by creating the world’s cine transportation requests. tion industry has been coping with first dedicated airside cargo hub for the the COVID19 pandemic on page 3 vaccine in Dubai. The air cargo carrier HH Sheikh Ahmed bin Saeed Al Mak- is taking a global leadership position by toum, Emirates Chairman and Chief Ex- announcing that it will be re-opening its ecutive said: “Dubai is well positioned to Emirates SkyCentral DWC cargo termi- serve as a gateway and distribution hub nal in Dubai South to serve as a dedicat- for COVID-19 vaccines to the rest of the ed anchor hub for cold chain storage and world. We have the infrastructure and distribution of the vaccine. logistics connections, and a geographic location that puts markets representing Watch a video about Emirates SkyCargo more than two-thirds of the world’s pop- setting up the world’s largest GDP com- ulation within an 8-hour flying radius. pliant airside hub for COVID-19 vaccine Over the years, through our continuous distribution. investment in capabilities and processes for the transport of temperature sensitive The freight division of Emirates has also pharmaceuticals, Emirates SkyCargo has set up a dedicated rapid response team managed to position Dubai amongst ma- to coordinate requests from the various jor global pharmaceutical customers as > Logistics

> the year-round preferred point of tran- sure rapid and efficient clearance of cargo uct – Emirates Pharma - and the devel- sit for their valuable cargo. Setting up a for further distribution. opment of dedicated GDP certified ‘fit dedicated airside hub for COVID-19 vac- for purpose’ infrastructure pharma both cines is a keystone project harnessing our In addition to cold storage, Emirates Sky- at Dubai as well as at major origin and network, reach and competencies to pos- Cargo will also offer dedicated zones for destination points under its pharma cor- itively impact the lives of people around value-added services such as re-icing and ridors programme that currently covers the world.” repackaging of vaccines for global distri- more than 30 cities. Emirates SkyCargo bution for its customers. has moved more than a quarter million tonnes of pharmaceutical cargo in the last World’s first dedicated airside hub The extensive size of the facility, which four years. can potentially handle millions of vac- for COVID-19 vaccine cine doses, along with the creation of a With its fleet of modern and efficient all dedicated team to handle and execute re- wide-body aircraft and a network that Emirates SkyCargo’s vaccine hub in Du- quests will allow Emirates SkyCargo to be currently spans more than 130 destina- bai South will be the largest dedicated air- able to effectively handle the large volume tions across six continents, combined side facility in the world for COVID-19 of time critical requests for cross-border with the strategic geographic location of vaccines. The Dubai hub will allow the vaccine movement that will follow the its Dubai hub, Emirates SkyCargo will be air cargo carrier to fly in vaccines from successful introduction of a vaccine. able to rapidly move vaccine shipments manufacturing sites globally, store and from manufacturing sites to the vaccine prepare shipments for regional and glob- Through a combination of scheduled hub and then onwards to the rest of the al distribution. and charter flights, the cargo carrier will world on a combination of scheduled and then be able to fly the vaccines to markets passenger flights. Emirates SkyCentral DWC has over where they will be most needed. 4,000 square metres of temperature con- Over the last few months, however, Emir- trolled GDP certified dedicated phar- ates SkyCargo has worked on restoring its ma storage area allowing for large scale Emirates’ pharma transportation ca- worldwide network and cargo connectiv- storage and distribution of the potential ity with flight services restored to 75 des- COVID-19 vaccines. Overall, it is esti- pabilities tinations by May, 100 by July and nearly mated that the facility can hold around 135 destinations by early October. Emir- 10 million vials of vaccine at a 2-8 de- Emirates SkyCargo is harnessing decades ates SkyCargo’s network covers all major grees Celsius temperature range at any of experience gained from transporting pharmaceutical clusters and manufac- one point of time. temperature controlled pharmaceutical turing locations, facilitating the eventual products and vaccines for global manu- transportation of the COVID-19 vaccine The state of the art infrastructure at facturers to develop innovative solutions once manufacturing commences. Emirates SkyCentral DWC is also com- that will meet the challenge of distribut- plemented by one of the world’s largest ing a potential COVID-19 vaccine glob- fleet of Cool Dollys helping protect tem- ally within a short timeframe. https://www.emirates.com/media-cen- perature sensitive cargo during transit tre/covid-19-response-emirates-sky- between the aircraft and cargo terminal. Since 2016, the air cargo carrier has in- cargo-to-set-up-the-worlds-largest- Additionally, the availability of a large vested substantially in its capabilities for gdp-compliant-air-cargo-hub-in-du- number of temperature controlled truck- the transportation of temperature sen- bai-for-global-distribution-of-covid- ing docks and the proximity of the termi- sitive pharmaceuticals. This included 19-vaccine/ nal to the aircraft parking gates will en- the introduction of a specialised prod-

2 Logistics Aviation

How UAE’s business aviation sector is coping with Covid-19

During the end of l ast year, Ali Ahmed creasing movements to India, Maldives surge in leisure enquiries towards major Alnaqbi, founding and executive chair- and Europe,” explains Holger Ostheimer, events hosted in Dubai.” man of the Middle East and North Africa managing director, DC Aviation Al-Fu- Business Aviation Association predicted ttaim. “They are primarily traveling for “However, ongoing restrictions with re- that in 2020 the business aviation sec- holidays, repatriation and business.” gards to Covid-19 testing are deterring tor in the Middle East and North Africa tourists from traveling and the postpone- region, which includes the United Arab “MENA is an interesting region with the ment of Expo 2020 Dubai has meant a Emirates, would achieve a growth rate of UAE, Saudi Arabia, Morocco, Egypt and downturn in expected flight numbers around 9%, higher than the global growth others being the busiest markets,” notes to the region this year,” adds Ostheimer. estimate of 4 – 6%, with the UAE as the Issa Zuriqi, commercial director at busi- “Dubai International Airport is the big- sector leader in the region. ness aviation services and FBO-provider, gest hub for business aviation. However, Hadid. “Being headquartered in Dubai, we are seeing strong interest in Al Mak- “2020 will be a milestone in the history we would note that the busiest regions toum International Airport because of of business aviation and private aviation within the country are Dubai and Abu its strategic location between Dubai and in the Middle East region in general, and Dhabi, which are major destinations for Abu Dhabi and because it has less traffic the UAE in particular,” Alnaqbi said back trade, business and tourism. and less slot restrictions,” says Zuriqi. in December 2019. “Dubai International Airport is amongst “Apart from being home to a number of Alnaqbi’s prediction of a historic year the world’s busiest airports in terms of fixed-based operators, Al Maktoum Air- for business aviation wasn’t wrong, but it passenger traffic and air freight move- port is also home to the Mohammed Bin has been for reasons no one could have ments while Abu Dhabi International Rashid Aerospace Hub, which was pur- ever foreseen. When the Covid-19 pan- Airport is an increasingly popular hub for pose-built to cater for private jets of all demic struck throughout the world in commercial aviation activities.” types. Interestingly, Al Bateen Airport is March, it left much of the industry in a one to watch with its significant increase tailspin. But despite the fallout that most Year-round destination in flights,” he adds. in the industry have felt since the chaot- ic arrival of Coronavirus, many business Many are unaware that the UAE is a year- Reshaping travel aviation companies in the UAE are confi- round destination, with numerous travel- dent that the Middle East and North Af- ers visiting in the hottest months for both Covid-19 is without doubt reshaping the rica (MENA) region will recover strongly. business and tourism. way people travel and this has brought Reports of flights at almost 50% ahead of new opportunities for business and pri- normal in August 2020 show that the re- “Over the years and prior to Covid-19, vate aviation in the UAE. “Passengers covery trend is well-established. year in, year out, there has been an in- who generally travel in first and business crease in business aviation activities from class are now looking to charter aircraft to “Currently, many countries still have late August to late April,” explains Zuriqi. avoid busy airports and being stuck on an travel restrictions in place due to Cov- “Being a provider of services to a diverse aircraft with other people,” says Ostheim- id-19. However, we have witnessed in- international clientele, we see a strong er. “We are also seeing new enquiries for

3 Aviation

aircraft purchases. Some high-net-worth when planning a trip to the UAE. “Cur- quired to quarantine until they receive individuals are seriously looking to buy rently for business aviation there are no their test results. Crew are only required their own aircraft, and have it leased out requirements for passengers entering to fill a declaration and to have their tem- for charter when they are not using it.” other than having a valid visa and a valid perature taken.” negative Covid-19 test,” says Ostheimer. With an increase in private jet enquires, “Passengers from 30 countries require a it’s important to know what to remember Covid-19 test on arrival and they are re-

A strong future

When looking towards the future of busi- Ostheimer agrees, “While Covid-19 has “Some operators are reporting a better ness aviation in the UAE, there’s a sense had the commercial aviation industry in summer season in 2020 compared the of optimism among operators despite a tailspin, private and business aviation same period last year. This can be attrib- how the year has unfolded so far. are showing signs of a faster recovery. uted to private aviation’s higher sense of The fact that people are seriously looking safety and service efficiency, along with “It is no secret that Covid-19 has been at business aviation as a viable mode of high-net-worth clients having new cost one of the worst crises to hit glob- transportation is an encouraging sign for and value justifications. al aviation. However, throughout the u s .” pandemic, business aviation contin- “We believe the UAE will be the highest ued to provide important services to “The pandemic quickly changed aviation contributor in terms of business aviation communities such as repatriations and in unforeseen and unprecedented ways, and logistics movements for the coming the transportation of health workers driving non-stop demand for flight per- years,” adds Zuriqi. “The MEBAA Show and critical medical supplies. Business mits and planning for alternative routes is fast approaching and we, like many of aviation operations are adaptable and due the changes in country specific re- our peers, feel it is an excellent platform quicker off the ground. By and large, strictions and regulations,” says Zuriqi. for the aviation community to discuss re- we feel that business aviation has been “As providers of aircraft charter services, alities of the industry, how to overcome able to leverage the flexibility of its op- we have found that there is an increase in the immediate challenges and how organ- erations and personalized approach,” the volume of new clients who had not izations can synergize to contribute to the explains Zuriqi. previously accessed private flights. recovery of the industry globally.”

4 Renewable Energy

Business aviation operators are surpris- “The overall outlook for business avia- “As Shekih Mohammed bin Rashid Al ingly optimistic about the future with tion in the UAE is positive, despite the Maktoum has said himself, we are not many believing they will emerge strong- impact of the pandemic. The business building the largest airports in the world, er from the Covid-19 pandemic. Zuriqi and private aviation industry is very we are building the aviation capital of the says, “Despite the pandemic-related chal- niche, it caters to 1% of ultra-high-net- world. It is clear the growth ambitions of lenges, business aviation is set to lead the worth individuals in the world. There the authorities and leadership alike fully recovery of the aviation industry. Hadid will always be aircraft that need manage- support the growth of business aviation works closely with operators. They are ment, maintenance or even hangarage in the UAE.” optimistic about the future, especially and require our services and expertise. with the increase of aircraft registrations, Dubai will continue to attract high-net- https://www.businessairportinterna- the prioritizing of safe practices, the in- worth and ultra-high-net-worth indi- tional.com/features/how-the-united- crease in volume of new users of private viduals who represent a certain level of arab-emirates-is-coping-with-cov- aircraft and the continued infrastructure activity in terms of aircraft ownership or id-19.html expansion and developments to support private-jet movements. the Expo.

New environment expo to feature at World Future Energy Summit 2021

As climate change continues to be one of the necessary frameworks to mitigate continued prominent role in the global the greatest challenges facing mankind climate change challenges around the conversation on climate change, climate today, and in light of research revealing planet. The event will showcase the latest resilience, and sustainable development.” a fast-emerging market opportunity advancements, fresh perspectives, and valued at US$7.1 trillion, the World best practice to help achieve local and He added, “Climate change remains Future Energy Summit has announced global climate resilience. an existential threat to the continuity the introduction of a new Climate and of life on planet Earth. Convening top Environment Expo & Forum, hosted The Climate and Environment Forum & government representatives and decision in partnership with the UAE Ministry Expo is dedicated to driving the country’s makers of the world to address the of Climate Change and Environment, sustainable development in line with the issue with all its economic, social, and MOCCAE. United Nations Sustainable Development environmental dimensions represents Goals, SDGs, maintaining the nation’s one step further in building a common The platform is dedicated to the climate position as a global leader of climate and framework for a climate-resilient world change adaptation and resilience market. environmental action, and tackling the and a sustainable future.” global-to-local issues of climate change. To be held from 5 to 7 April 2021 at “As the world’s leading event and the Abu Dhabi National Exhibition Fahed Al Hammadi, Acting Assistant marketplace for future energy, cleantech, Centre, ADNEC, the Climate and Undersecretary for the Green and sustainability, we felt it was an Environment Expo & Forum will bring Development and Climate Change Sector essential evolution to introduce a together thought leaders, technology at MOCCAE, said, “The introduction dedicated forum and expo to address providers, policymakers, researchers, and of the Climate and Environment Expo climate change within the World Future innovators responsible for developing & Forum is a testament to the UAE’s Energy Summit,” said Grant Tuchten,

5 IDEX registration

Group Event Director – World Future Faced with real and imminent risk, US$2.9 trillion in 2018 (3.3 per cent of Energy Summit. governments and communities have the global GDP), it is now costing us US$8 ability to quickly adapt for the greater billion every day. As climate change poses significant good, and this should give us hope for a risks to economies, communities, and similar outcome with respect to tackling According to the Global Commission the natural environment worldwide, the urgent reality of climate change. on Adaptation, GCA, report, investing there is a substantial market opportunity The current level of global coordination US$1.8 trillion globally from 2020 to emerging for adaptation and resilience is proof that societies can unite to 2030 in the climate change adaptation companies to help investors, businesses, address a common cause -- a learning market could bring a worldwide return and government agencies around the process which can be beneficial in of US$7.1 trillion in net benefits. The world to measure and manage these risks, implementing decisions that are in favour report highlights five specific areas where and to move towards a more sustainable of climate action. As the world’s leading investment is needed most urgently: future. policymakers and officials convene to early warning systems, climate-resilient attend the annual World Future Energy infrastructure, water resources, dry land To take a closer look at this market Summit, we are presented with the agriculture, and mangrove protection, all opportunity, the World Future prospect of real progress to accelerate a of which will form the key pillars of the Energy Summit will run a Climate & collective global response to the climate new Climate and Environment Expo & Environment Webinar on 20th of January crisis. Forum agenda. 2021. Focused on Stimulating Economies: Low Carbon is ‘Business as Usual, the In 2019, climate change disasters cost the https://www.wam.ae/en/ webinar will host selected government world more than US$150 billion, and their details/1395302887190 and industry experts that will examine frequency is only expected to increase in the opportunities brought about by the 2020. While the global economic cost of shift towards a low carbon economy. fossil-fuelled air pollution amounted to

6 Stimulus Package

UAE extends coronavirus stimulus package for six months to end-June 2021

Central bank governor announces new central bank remains committed to sup- The package of support was launched move to ‘shield the UAE economy from porting the financial system of the UAE by in March as part of an AED100 billion the impact of the pandemic’ taking the required measures to accelerate scheme. economic recovery from Covid-19 reper- The Central Bank of the UAE (CBUAE) on cussions. The extension of applicability The TESS update comes as business condi- Monday announced the extension of its period of the TESS will provide relief for tions deteriorated in the UAE in Septem- economic stimulus package - the Targeted retail, small and medium sized enterpris- ber amid further job losses and concerns Economic Support Scheme (TESS) - by six es, and corporate banking customers. over renewed lockdowns. months until the end of June next year. “We believe that this initiative will shield The outlook among UAE businesses for The scheme was launched by the CBUAE the economy from the impact of the pan- the next 12 months was also at a record in March to support the UAE’s economy demic and place us in an ideal position to low, with fears over the persistence of the during the Covid-19 pandemic, through a recover, once the pandemic is over.” pandemic hurting future activity. range of integrated relief measures to the banking sector related to funding, liquidi- To date, the TESS loan deferral pro- https://www.arabianbusiness.com/bank- ty, lending and capital. gramme has benefited more than 310,000 ing-finance/454703-uae-extends-corona- retail customers, nearly 10,000 small and virus-stimulus-package-for-six-months- Under this extension, the CBUAE will medium sized enterprises, and more than to-end-june-2021 extend the duration of the zero cost fa- 1,500 private sector corporates. cility (ZCF) of AED50 billion ($13.5 bil- lion), which benefits retail and corporate banking customers and facilitates liquidity management for banks through collateral- ised funding at zero cost, for an additional period of six months, state news agency WAM reported.

Starting from January 1, banks and finance companies participating in the TESS initi- ative will be able to provide new loans and facilities to customers negatively affected by the pandemic, WAM added.

Abdulhamid M Saeed Alahmadi, governor of the Central Bank of the UAE, said: “The

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Imprint

Publisher Embassy of the Ghorfa Arab-German Chamber Ambassador Editor of Commerce and Industry e.V. H.E. Hafsa Al Ulama Khalfan Al Matrooshi Hiroshimastr. 18-20 Garnisonkirchplatz 1 Ahmed Shalaby D-10785 Berlin D-10178 Berlin

Telefon: + 49 (0)3051651451 Telefon: + 49 (0)30278907-0 Secretary General Layout: www.uae-embassy.ae www.ghorfa.de Abdulaziz Al-Mikhlafi Fadhl Al-Romaima @uaeinberlin @Ghorfa_Germany @uaeinberlin @Ghorfa @uaeinberlin @Ghorfa

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