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Victoria – Gulf States Engagement Strategy 2013 B Victoria – Gulf States Engagement Strategy 2013 Contents

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Victoria – Gulf States Engagement Strategy 2013 B Victoria – Gulf States Engagement Strategy 2013 Contents Victoria – Gulf States Engagement Strategy 2013 b Victoria – Gulf States Engagement Strategy 2013 Contents Message from the Premier 2 Message from the Minister 3 Executive Summary 4 1. Victoria Needs an Engagement Strategy with the GCC 8 2. Current Links between Victoria and the Gulf 9 2.1. Economic links 9 2.2. Government and institutional relationships 9 2.3. Social, cultural and artistic engagement 10 3. GCC – Opportunities for Victoria 12 3.1. United Arab Emirates 12 3.2. Kingdom of Saudi Arabia 13 3.3. Qatar 14 3.4. Other countries of interest in the GCC 15 4. Victoria’s Advantages in the GCC 16 5. Key Challenges for Victoria’s Engagement with the GCC 17 5.1. Trade barriers 17 5.2. Stability in the region 17 5.3. Relationships are key 17 5.4. Understanding the role of government in the GCC countries 17 6. Victorian Government Priorities – Addressing the Opportunities and Challenges 18 6.1. Priority one: create the environment and opportunities to facilitate trade and investment 18 6.1.1. Support businesses to have the opportunity, knowledge and skills to engage the GCC 18 6.1.2. Enhance education capabilities, expertise and institutional linkages 19 6.1.3. Target opportunities in sustainable urban development 21 6.1.4. Increase tourism and air links 23 6.1.5. Explore opportunities for Victoria’s world class equine industry 24 6.2. Priority two: develop and deliver a food and agribusiness cluster approach to the GCC 26 6.3. Priority three: strengthen strategic relationships to support deeper, long-term engagement 27 6.3.1. Strengthen government-to-government and government-to-industry links 27 6.3.2. Position Victoria through the annual ‘Victoria Week’ in Dubai 28 6.4. Priority four: improve Victorians’ understanding of the region through community, cultural, social and artistic engagement 29 7. Conclusion 32 Victoria – Gulf States Engagement Strategy 2013 1 Message from the Premier Victoria’s future prosperity is closely tied to our place in the This Strategy aims to empower businesses, individuals and global economy. The quality of Victoria’s relationships with other institutions across Victoria and the Gulf States to develop countries is critical to unleashing new sources of growth through meaningful partnerships that can be sustained over time. It trade and investment, as well as important social ties. positions the State to build on our complementarities with the region and focuses resources on the countries and industries Victoria’s relationship with the Gulf States is of vital importance that provide the best growth potential, including food, education to the State. With exports in the billions, trade with the region and infrastructure. supports some of our most important industries, including automotive, with over 88 per cent of Victoria’s manufactured Most important to these relationships are the people who passenger vehicles destined for the region. There is also underpin them. Whether it is through a growing migrant strong demand for our food and fibre, professional services community in Victoria, the large number of leading Victorian and higher education. service providers and expats operating in the GCC region, or the increasing number of Victorians looking to engage with the region There is scope for Victoria to engage more closely with the for the first time, people are central to this Strategy’s success. region, particularly with the six countries that comprise the Gulf Cooperation Council (GCC), which are set to grow in importance I’m confident that this Strategy will support our State in to global trade and investment flows. developing prosperous and sustained relationships with the Gulf States, and I encourage all Victorians to consider opportunities The region is as complex as it is large and diverse, which to form partnerships with this exciting region. requires Victoria to take a planned, strategic approach to engagement. While Victoria already boasts strong links with the Gulf States, there is still work to be done to realise the full potential of our evolving relations with this important region. The Hon Ted Baillieu MLA Premier of Victoria Minister for the Arts 2 Victoria – Gulf States Engagement Strategy 2013 Message from the Minister The Gulf region presents a variety of opportunities for Victoria is pursuing stronger government and institutional collaboration in areas of mutual benefit with Victoria. To linkages with our partners in the GCC countries by continuing truly leverage these opportunities, Victoria must deepen and to work collaboratively with governments at all levels, key strengthen its engagement and collaboration with targeted international chambers and the consular corps. countries in the region. Successful and meaningful engagement with the GCC requires Victoria’s long-standing trade relationship with the Gulf increased cross-cultural understanding and buy-in from Cooperation Council (GCC) countries is a fundamental base for communities. This can only be achieved through initiatives to our engagement. Victoria’s total commodity exports to the Gulf strengthen social, cultural and people-to-people links between region in 2011-2012 were $2.1 billion. Saudi Arabia is Victoria’s our regions, promoting a deeper understanding in Victoria of the seventh-largest trading partner, a position based predominantly diverse and immensely rich history, arts, culture and people of on our automotive exports to that country. Food and agribusiness the Gulf region. are key components of Victoria’s economic relationship. Food The actions identified in this plan include both immediate exports to the GCC contributed $670 million to Victorian exports activities and longer-term strategic intentions for Victoria’s in 2011-2012. The Government will continue to pursue new engagement with the Gulf region and contribute to Victoria’s areas of opportunity in this space for Victorian businesses that broader engagement with the Middle East. In the longer-term, have the capabilities to help address the growing needs and the Government will look at new opportunities for Victorian changing preferences of the GCC population. businesses and organisations in emerging economies in North A key pillar of the Victoria – Gulf States Engagement Strategy Africa. I look forward to being a part of Victoria’s efforts to deepen (the Strategy) is to encourage diversified and deeper trade and its relationship with this key region through the implementation of investment activity with the GCC. The Strategy will achieve this the Victoria – Gulf States Engagement Strategy. by exploring new and developing areas of opportunity particularly in education, sustainable urban design and infrastructure, air links, tourism investment and equine industries. The Hon Louise Asher MP Minister for Innovation, Services and Small Business Minister for Tourism and Major Events Victoria – Gulf States Engagement Strategy 2013 3 Executive Summary Victoria’s economic growth and future prosperity is closely linked While the State is already benefiting from growing links with to the State’s ability to seize opportunities arising from changing the GCC, the region’s potential for continuing growth warrants a global economies, through forging long-term and meaningful more strategic approach to engagement. Some of the significant relationships with key international partners, including the developments that will shape the region over the medium-to- Gulf Cooperation Council (GCC) countries, also known as the long-term include: Cooperation Council for the Arab States of the Gulf (CCASG). • Strong population growth driving increased consumption These countries include: the United Arab Emirates (UAE), Saudi and growing demand for imported goods and services. GCC Arabia, Qatar, Oman, Kuwait and Bahrain. The Victoria – Gulf countries import 90 per cent of food products to meet these States Engagement Strategy (the Strategy) provides a long-term countries’ own needs and to re-export to other parts of plan for Victoria to strengthen its economic, government and the Middle East, North Africa, Central Asia and the Indian cultural engagement with this dynamic region. subcontinent. With the Middle East and North Africa (MENA) population alone expected to number 700 million by 2050, demand for high-quality food imports are predicted to soar, reiterating the importance of the GCC as a trade hub for the region more broadly. Kuwait Persian Gulf Bahrain Qatar Saudi Gulf of Oman Arabia United Arab Emirates Oman Red Sea Gulf of Aden 4 Victoria – Gulf States Engagement Strategy 2013 • Continued economic growth and sovereign and private • Victoria’s education institution links with the GCC are wealth relative to other parts of the world. Countries such as steadily developing, underpinned by government-sponsored Qatar have strong growth prospects – Qatar has the highest scholarships enabling students from the region to study GDP per capita in the world at $102,000 and the world’s in Victoria and partnerships between universities and VET fastest GDP growth rate.1 institutions, supported by the Victorian Government. • Increased focus on diversifying economies and integrating • There are growing people-to-people and community into the global economy. The GCC countries are actively links, which support closer engagement at the individual, investing in skilled services and creative industries to prepare business and government levels. At the 2011 Census, Arabic for a future less reliant on oil and natural gas reserves. was ranked the sixth most spoken language other than English in the Victorian home. A significant Australian and Victorian • A growing skills shortage driving investment in education. expatriate community lives and works in the Gulf States. Saudi Arabia is investing in education and training to skill its large youth population. It has committed to more than The diversity of the countries within the broader Middle East doubling the capacity of its Vocational Education and Training region – their unique political, religious, cultural and social (VET) system by 2020 and is calling on international VET systems – requires approaching the region through recognised providers to assist. trade blocs and specifically through the GCC.
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