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. To ensure a targeted approach, this Strategy focuses predominantly on the Victoria is fortunate to have well-established and robust GCC countries of the UAE, Saudi Arabia and Qatar. These three economic and social ties with the GCC, which provide a platform countries warrant high priority engagement as: for future engagement: • Victoria has established economic and government • Victoria has built a strong trade relationship with the ties with these countries, creating a strong platform for region over a number of years – The GCC is one of the future engagement. largest destinations for Victoria’s goods and services, with commodities exports valued at $2.1 billion in 2011-12.2 • The opportunities and trends identified in these countries Around $1 billion (or 88 per cent) of Victoria’s manufactured complement Victoria’s strengths and capabilities. passenger vehicles are exported to the GCC and Victoria’s • Victoria has strong and growing institutional, cultural and food and fibre exports to the region were valued at $670 social connections with these countries that can be leveraged 3 million in 2011-2012. for mutual benefit. • The GCC and the UAE in particular is a major hub into • Victorian organisations require government support to access and out of the Middle East, North Africa, Europe, Asia, and and forge relationships in these economies. Australia, facilitating the flow of goods, services and people. Victoria has strong air links with the region, driven largely by Emirates Airline, Etihad Airways and Qatar Airways.

1 IMF/EIU Forecast 2012. 2 Australian Bureau of Statistics, 2012. 3 Vehicle exports figures from Australian Bureau of Statistics, 2012 Food export figures from Australian Bureau of Statistics, 2012.

Victoria – Gulf States Engagement Strategy 2013 5 This Strategy outlines a plan for Victoria to maximise the value • Leverage new opportunities for economic engagement and of our existing links to the GCC and to develop new and diverse support a cluster approach (where appropriate) in the areas partnerships over time. Some of the initiatives contained in of food and agribusiness, education, sustainable urban this Strategy are already underway, such as the Super Trade development and infrastructure, tourism and aviation, Mission of more than 170 companies to the Middle East from and the equine industry. February to March 2013. This Strategy identifies four priority • Develop unique investment proposals targeted to key areas for action: GCC investors, particularly in relation to tourism infrastructure investment. Priority one: create the environment and the opportunities to support trade • Increase tourism and air links by: and attract investment to Victoria –– working with Tourism Australia and the three major air carriers to increase direct flights from the Gulf to The Victorian Government will: Victoria; and • Deliver a comprehensive and targeted trade engagement –– continuing discussions with other airlines in the region program to enable Victorian businesses to harness regarding increased services to Victoria. opportunities and make new connections. The Middle East Trade Engagement Program will include: Priority two: develop and deliver a food and –– a program of large, multi-sector and industry-specific trade agribusiness cluster approach to the GCC missions to key countries in the region, starting with a Super Trade mission to the Middle East in February 2013, The Victorian Government will: visiting the UAE, Saudi Arabia, Qatar and Turkey; • Continue to position Victoria in the GCC as a supplier of –– a program of inward delegations to Victoria, including clean, reliable, safe and high-quality food and beverages inviting key decision makers and influencers from the region and associated services by enhancing the Government’s to experience major sporting and cultural events in Victoria; biosecurity services and expanding research into pest, plant and animal control. –– an Export Skills Program to equip businesses with the cultural skills and country-specific training required to • Provide up to $50,000 in seed funding to prospective new access the region; cooperatives looking to adopt a cluster approach to trade with the GCC and the Middle East more broadly. This will –– support to the Australia Arab Chamber of Commerce and enable Victorian food and agribusiness to market their value Industry (AACCI) to deliver and expand its “Doing Business proposition and to access new trade opportunities. in MENA” program for Victorian businesses. This will focus particularly on new opportunities for closer engagement • Present the Victorian value proposition to key stakeholders with the consular corps through Ambassador Roundtable in-market and support Victorian companies to access events and linking businesses with regional experts in- opportunities in, for example, food and beverage, research and market; and development, sustainable rural practices, water infrastructure and services, education and professional services. –– ongoing in-country support to Victorian businesses and organisations through the Victorian Government Business Office in Dubai.

6 Victoria – Gulf States Engagement Strategy 2013 The Government will promote and position Victoria in the region through events, activities and sponsorship.

Priority three: strengthen strategic relationships Priority four: improve Victorians’ understanding to support deeper, long-term engagement of the region through stronger community, The Victorian Government will: cultural, social and artistic engagement • Work to create new and meaningful relations with The Victorian Government will: governments at all levels, particularly in the UAE, Saudi • Collaborate with key business stakeholders, the consular Arabia and Qatar, through collaboration and dialogue. corps, chambers of commerce and community organisations to • Support the development of stronger institutional links explore establishing a community space that provides a hub of and collaboration, particularly in education and research information for visitors, students and businesses from the Gulf and development. region. Information would be available on social and cultural events, services, tourism resources, investment and business • Support the 2014 Australian Arab Youth League Dialogue in opportunities in Victoria. Melbourne, which aims to bring together young professionals from Arab League countries and Australia to discuss the • Encourage a deeper understanding in Victoria of the Gulf future of trade, political and civil society relationships region and its diverse people, cultures, history and religions, between the Arab world and Australia. through community, social, cultural and artistic initiatives and exchanges. • Facilitate workplace internships in Victorian businesses and organisations for international students from the GCC and the Middle East more broadly, to build stronger personal connections in the region. This initiative is part of the Victorian Government’s planned International Education Strategy. • Seek opportunities to promote and position Victoria in the region through events, activities and sponsorship. • Continue to work collaboratively with the Commonwealth, the consular corps in Melbourne and relevant industry groups and engage with multicultural chambers of commerce and their members to explore new opportunities for trade and investment. Work with these partners to support Victorian companies to access opportunities in the region through, for example, trade missions.

Victoria – Gulf States Engagement Strategy 2013 7 1. Victoria Needs an Engagement Strategy with the GCC

International engagement is critically important for Victoria’s Victoria needs a clear strategy to better leverage the future economic prosperity. Accessing new trade and significant opportunities arising from these key trends and investment opportunities in overseas markets can unleash new to strengthen economic, social and government engagement sources of growth for Victoria, stimulating the creation of skills with the GCC. This Strategy must also take into account a and jobs. Strengthening engagement with Asia, particularly number of key issues that influence and impact upon Victoria’s China and India, is a key priority for the Victorian Government. engagement with the region: However, long-term economic outcomes for Victoria can only • The Victorian Government is working to diversify Victoria’s be achieved through partnerships with a variety of regions that trade and investment base globally, to better support long- offer opportunities which complement Victoria’s capabilities. term economic prosperity for the State. The Government’s economic strategy, Securing Victoria’s Economy, identifies the Middle East as an important focus • Victoria’s investment relationship with the GCC is region4 and the GCC countries are Victoria’s priority economic underdeveloped. There is a role for the Government to play partners in this region. in helping industry tap into the growing wealth in the region and raise interest in Victoria’s investment-ready projects, • Victoria has established a strong trade relationship particularly in tourism infrastructure. with the region over a number of years, built on the clear complementarities between the growing needs and • The GCC States are significant trade partners for Victoria, preferences, particularly in the Gulf, and Victoria’s capabilities. particularly in the areas of food and beverage, water, infrastructure, automotive and defence. Recent trade • The GCC countries, despite recent efforts to diversify their engagement with the region has proven successful. However economies, remain heavily reliant on imported goods more can be done to diversify and better leverage our two- and services. The GCC is one of the largest destinations way trade relationship with the region. for Victoria’s commodities exports, valued at $2.1 billion in 2011-12.5 • The Middle East region is complex, composed of different countries each with their own unique culture, political and • The GCC, particularly the UAE, is a major hub into and out legal systems, social conventions, languages and ways of of the Middle East, North Africa, Europe, Asia and Australia, doing business. Victorian organisations and businesses facilitating the global flow of goods and people. wishing to engage with the region have more success when • GCC States maintain consistently high gross domestic this engagement is done through recognised trade blocs, in product (GDP) and have significant sources of sovereign particular the GCC. and private wealth. • Victoria needs to increase its business and cultural • There are growing people-to-people and community understanding of the region, to support tailored and links, driving the push for closer engagement at the appropriate engagement with priority economic partners. individual, business and government levels. • Victoria has a well-established presence in the Gulf, with a Victorian Government Business Office operating in Dubai since 1997. Victoria’s long-term commitment to the region and the relationships built in the process mean that it is ahead of the game. However Victoria needs to maintain and progress these links to maintain this advantage over other Australian states.

4 Victorian Government, Securing Victoria’s Economy: Planning, Building, Delivering. 2012. 5 Australian Bureau of Statistics, 2012.

8 Victoria – Gulf States Engagement Strategy 2013 2. Current Links between Victoria and the Gulf

2.1 Economic links • Victoria continues to be Australia’s focal point for the development of Islamic finance in Australia. This market is Victoria’s committed engagement with the GCC has helped increasingly valuable and the GCC region is its engine, as well the State to build a solid reputation as a reliable supplier of as being a major source of offshore capital generally. Victoria quality goods and services. With commodity exports to the is home to the Australian offices of Kuwait Finance House as GCC contributing around $2.1 billion to the Victorian economy well as a number of local institutions developing and offering in 2011-12, the region is now Victoria’s third largest regional Islamic finance services that can support GCC trade and 6 commodity export destination, behind South East Asia and China. investment flows. • Automotive is the State’s largest export to the GCC, with Victoria’s economic relationship with the region has traditionally approximately $1 billion (or 88 per cent) of Victorian focused on facilitating opportunities for stronger trade in manufactured passenger vehicles exported to Bahrain, Qatar, commodities and services. Although Victoria has not been a major the UAE, Saudi Arabia, Oman and Kuwait. beneficiary of foreign direct investment (FDI) from the GCC to date, • Victoria’s clean and reliable food products – particularly there are increasing opportunities to attract investment from the dairy, meat and live animals – are in great demand, with food region into targeted, investment-ready projects in Victoria. exports valued at approximately $670 million in 2011-12.7 • In the services industry, a large number of Victoria’s leading 2.2 Government and institutional relationships developers, architects, project managers and education The Government of Victoria has a long standing and committed providers are operating in the region, many with local presence in the GCC, led by the Victorian Government Business representative offices. Office in Dubai. • The GCC presents growing opportunities for Victoria’s water Victoria actively encourages reciprocal government visits and management capability, from on-farm irrigation infrastructure ministerial exchanges with the region. In February 2012, the to water governance and delivery. Minister for Innovation, Services and Small Business, the Hon Louise Asher MP, travelled to Qatar and the UAE (Abu Dhabi • Aviation capacity between the GCC States and Victoria and Dubai) as part of a contingent of more than 100 Victorian has undergone considerable growth, driven particularly by companies. The Government also supported smaller industry- Emirates Airline, Etihad Airways and Qatar Airways. focused missions to the region and will deliver a program of • The Gulf States present solid and long-term opportunities for follow-up missions and Ministerial visits in 2013, including a Victoria’s defence companies. The State works collaboratively Super Trade Mission in February 2013 with over 170 companies with Team Australia (managed through Australia’s Defence participating. Ministerial-led missions are an important way Materiel Organisation) to support Victorian companies Victoria is supporting closer government, economic and cultural working in the region, particularly through international trade ties with the region. shows such as the International Defence Exhibition and As a sub-national government, Victoria focuses its resources on Conference (IDEX), held every second year in the UAE. establishing government and institutional relations at appropriate levels in key countries in the region – including federal, sub- national, municipal and local. As government structures vary from country to country, a flexible approach is required. In the UAE, Victoria engages with the governments of the Emirates, particularly Abu Dhabi, Dubai and Sharjah. In Saudi Arabia, Victoria’s engagement is directed towards the governments of the two key cities of Riyadh and Jeddah.

6 Australian Bureau of Statistics, 2012. 7 Food export figures from Australian Bureau of Statistics, 2012.

Victoria – Gulf States Engagement Strategy 2013 9 Victoria’s social and cultural links with the GCC countries are diverse, spanning the arts, sports, community and people-to-people links.

Victoria also cultivates good relationships with the local consular 2.3 Social, cultural and artistic engagement corps in-country and in Melbourne, supporting both domestic and international business and cross-cultural activities. Victoria’s social and cultural links with the GCC countries are diverse, spanning the arts, sports, community and people-to- The Government also engages with the multicultural chambers people links. At the 2011 Census, 68,437 persons spoke Arabic of commerce, both in the region and in Victoria, as well as at home, making it the sixth most spoken language other than Australian business associations throughout the Gulf. For English in Victorian homes.8 These community linkages with the example, the Victorian Government has supported and worked region enable Victoria to bridge cultural and linguistic divides in partnership with the Australia Arab Chamber of Commerce with the GCC and promote understanding and the development and Industry (AACCI) for many years. The partnership supports of new partnerships. This diversity is one of the State’s greatest initiatives such as business seminars for Victorian companies cultural, social and economic assets and as a result, Victoria is looking to explore opportunities in the Gulf, in-bound visits and perceived internationally as a welcoming place. networking events. Complementing this growing community in Victoria, a large Victoria’s education institution linkages with the GCC are steadily expatriate population of around 20,000 Australians live in the developing, underpinned by government-sponsored scholarships Gulf and over 300 Australian companies are based in the UAE.9 enabling students from the region to study in Victoria. The Victorian Government supports the various Australian The Victorian Government has supported institutional business and social groups in the region that help to position linkages between Victorian and GCC universities, such as the the State in-country and foster a community of Victorians agreement signed between Monash University and Fatima and key influencers in the region. These relationships are College of Health Sciences in Abu Dhabi, offering Emirati supported by extensive direct air links to the region, facilitating students four bachelor-level courses in Allied Health, one of people-to-people and cultural exchanges through increased the UAE’s priority health sectors. visitation and interaction.

8 Australian Bureau of Statistics, Census Data, 2012. 9 Department of Foreign Affairs and Trade, United Arab Emirates Country Brief, http://www.dfat.gov.au/geo/uae/uae_country_brief. html, August 2010.

10 Victoria – Gulf States Engagement Strategy 2013 Sheikh Zayed Grand Mosque, Abu Dhabi

The Victorian Government launched its global program, the Victorian Connection, in the UAE during the large-scale Trade Mission to the Middle East in February 2012. This program aims to connect with Victorian alumni and expatriates to act as ‘ambassadors at large’ for Victoria. Victoria’s engagement with the Gulf region through the arts and culture is developing, for example, through exhibitions such as the University of Melbourne’s Oman Corner. The Corner displays many different aspects of Omani culture, including traditions, heritage, society, government, economy and topography. Some of the many items on display include traditional Omani clothes, a mini fort and dhow, musical instruments, jewellery, frankincense and khanjar. The Museum of Islamic Art, Doha The Corner gives visitors a unique glimpse of Omani culture and society. Initiatives such as the Oman Corner demonstrate The Victorian Government, through the Office of Multicultural the appetite in Victoria to learn more about the arts and Affairs and Citizenship (OMAC) and the Victorian Multicultural culture of countries in Gulf. There is much potential for deeper Commission (VMC), funds specific programs and initiatives collaboration and exchange between Victorian artistic and in support of multicultural communities in Victoria, including cultural institutions and their counterparts in the Gulf. the Arabic speaking community. The Victorian Government is committed to languages education and funds programs to support the teaching of Arabic to the Victorian community. The Government is also working to ensure that all Prep to Year 10 students in government schools are learning a language by 2025, starting with Prep in 2015.

Victoria – Gulf States Engagement Strategy 2013 11 3. GCC – Opportunities for Victoria

Victoria will prioritise strengthening engagement with the 3.1 United Arab Emirates UAE, Saudi Arabia and Qatar. The focus on these countries is underpinned by the complementarities between the trends and The UAE is one of the world’s richest nations, with GDP per 10 opportunities observed in these key economies and Victoria’s capita of almost US$50,000. The country is actively pursuing strengths and capabilities. These key trends include: trade reforms and encouraging growth in private industry to support a more open and sustainable economy while reducing • Population growth: the GCC countries, and the Middle East its dependence on oil revenues and insulating itself against more broadly, is showing consistent population growth. This fluctuating oil prices. growth is increasing consumption and demand on services such as education. The UAE Government’s “UAE Vision 2021” and the “UAE Government Strategy 2011-13” outline the country’s current • A reliance on imported goods and services: particularly strategic priorities including improving education and healthcare, in agriculture in the GCC countries, where more than 90 per developing a knowledge economy and taking a sustainable cent of food products are imported. Around 50 per cent of approach to the environment.11 The strategic plans of sub- these imported products are re-exported through the UAE to national governments also outline key areas of focus for Victoria’s other GCC countries, Central Asia, the Indian subcontinent economic partners: the Abu Dhabi “Economic Vision 2030” and and Eastern Africa, demonstrating the importance of these the “Dubai Strategic Plan 2015” provide a roadmap for economic countries as regional trade hubs. progress and areas of growth in these two Emirates. • Significantly expanding wealth: Qatar, the UAE and Due to a lack of developed industrial and agricultural sectors, Saudi Arabia are expected to enjoy continued GDP growth the UAE is heavily dependent on imported goods and services. and increasing revenue with which to fund sovereign Victoria’s capabilities and strengths as a supplier of high- infrastructure and development projects. quality food and beverage products, automotive vehicles and • Economic diversification and reform: the GCC is accessories, defence services and equipment, agribusiness preparing for a future less reliant on oil and gas revenue. services, education and sustainable urban and rural development Governments across the region are actively working to to name a few, have enabled Victoria to meet some of the needs diversify economies and encourage growth in skilled services of a growing UAE. and creative industries. Victoria recognises that the cities of Dubai and Abu Dhabi • Shortage of skilled labour: the region has a shortage of serve essential roles as trade and investment gateways to the skilled labour which is forecast to affect future economic Middle East, North Africa, Eastern Europe, Central Africa and growth. National governments are focusing on nationalisation Central Asia. Dubai is now the third largest re-export hub in the of the labour force, with quota requirements across business world, after Hong Kong and Singapore, and the major regional and government agencies to encourage the use of local transport hub for interconnecting flights from Australia and labour. This is complemented by wider education reforms and Asia and onwards to Central Asian and European destinations. a focus on developing the capacity of education institutions. Demonstrating this key role as a global hub, Dubai also hosts key international trade exhibitions, such as the annual Gulfood, in which Victorian businesses, supported by the Victorian Government, regularly participate.

10 IMF/EIU Forecast 2012; Department of Foreign Affairs and Trade, DFAT Trade Fact Sheet – UAE, December 2012. 11 UAE Government, Highlights of the UAE Government Strategy 2011-2013 – Putting Citizens First: An accountable, lean, innovative and forward-looking government available at http://www.uaecabinet. ae/English/Documents/PMO%20StrategyDocEngFinV2.pdf.

12 Victoria – Gulf States Engagement Strategy 2013 There is significantly expanding private and public wealth in 3.2 Kingdom of Saudi Arabia the UAE. GDP per capita in the UAE is higher than that enjoyed by the West and is rapidly expanding. Victoria has a strong The Kingdom of Saudi Arabia is the largest economy in the portfolio of investment-ready projects, particularly in tourism GCC and the Middle East more broadly. It is the world’s largest infrastructure, which complement the trends in investment flows oil producer and holds around 20 per cent of the world’s oil being observed in the UAE. reserves. Riyadh hosts the headquarters of the GCC trade bloc. Jeddah, located on the eastern coast of the Red Sea, is Saudi Arabia’s commercial capital and serves as a key entry point to the rest of the Arabian Peninsula. The Saudi population has more than tripled over the past 34 years, with a population growth rate among the highest in the world. The country’s population is more than 27 million, of which 18.7 million are Saudi citizens and the remainder expatriates.12 The Ministry of Economy and Planning’s “Long Term Strategy for the Saudi Economy” outlines the Government’s vision to capitalise on its oil wealth and manage its growing population for a sustainable economic future. Areas of focus include improved skills and education, infrastructure development, supporting the development of the private sector and undertaking public sector reforms to better encourage business and investment. Demonstrating its efforts to improve infrastructure for the future, Saudi Arabia has over $600 billion of infrastructure projects either planned or underway in rail, road, ports, airports, housing and water infrastructure.13 The country has also announced plans to build six new ‘economic cities’ in order to diversify its economy.14 Based on strong and proven capabilities in large- scale sustainable urban development, cleantech, agribusiness, rural development and sustainable water management, Victorian companies are well placed to work with Saudi Arabia to meet these needs.

Interior of Sheikh Zayed Mosque, Abu Dhabi

12 Department of Foreign Affairs and Trade, Saudi Arabia Country Brief, August 2010. 13 Worldfolio AFA Press, ‘Massive spending on infrastructure’, December 2011 available at http://www.worldfolio.co.uk/region/ middle-east/saudi-arabia/infrastructure-saudi-arabia-n798. 14 Saudi Arabian General Investment Authority, Saudi Arabia’s Economic Cities, available at http://www.oecd.org/mena/ investment/38906206.pdf.

Victoria – Gulf States Engagement Strategy 2013 13 Khalifa International Stadium, Doha

Although Saudi Arabia is rich in natural resources such as 3.3 Qatar underground water and farmland, the Kingdom’s rapid population expansion and focus on its oil industry means that exploitation of Since 2008, Qatar has been consistently ranked among the top these resources has been limited. For example, the Government three fastest growing economies in the world, on the back of its of Saudi Arabia is working to contain and eventually phase oil and natural gas reserves and rising prices. The nation enjoys 16 out production of water-reliant crops, such as wheat, over the one of the world’s highest GDP per capita at US$102,700. next few years. In light of this, the country remains reliant on Qatar also boasts a considerable sovereign wealth fund. imported food and beverage products and agribusiness services. The 2008 “Qatar National Vision 2030” outlines Qatar’s desire These needs complement Victoria’s strengths as a global to achieve a more diversified economy to support controlled supplier of clean, safe and reliable food and beverage products, economic growth, stronger social development and better particularly dairy, processed grains, meat, livestock, feed-grain environmental management. The country’s significant wealth and fodder, as well as agribusiness services such as expertise in creates both opportunities and challenges for Qatar. The sustainable farming practices and land management. National Vision focuses on skills development, improved VET is a key focus for Saudi Arabia as it works to up-skill its healthcare and more strategic international cooperation, as well growing national youth population. Saudi Arabia has committed as economic diversification, controlled growth and responsible to expanding the capacity of its VET system from 110,000 exploitation of the country’s oil and gas reserves. students today, to approximately 250,000 students by 2020.15 In order to achieve some of these goals, the Qatar Government The Saudi Government is calling for international VET providers has committed to an investment program comprising around to assist the country to develop and administer, in the first $130 billion in new projects across all major sectors over the instance, 11 new colleges through a public-private partnership next five years.17 model, with further opportunities for additional colleges in 2014-2015. Victoria’s strong VET network, and capability in transnational education, is globally renowned and well placed to help meet many of the education needs of Saudi Arabia.

15 Technical and Vocational Education Corporation of Saudi Arabia, 16 IMF/EIU Forecast 2012. Figures are GDP PPP (Purchasing Expanding and Improving Vocational and Technical Education in Power Parity). Kingdom of Saudi Arabia, Request for Tender, November 2012. 17 Qatar Investment Authority, ‘About us’, 2012, available at http://www.qia.qa/about.html#strategy.

14 Victoria – Gulf States Engagement Strategy 2013 Victoria’s strengths in sustainable urban design, water infrastructure and expertise and education highlight the State’s ability to meet some of the needs of a growing and diversifying Qatar.

Khalifa International Stadium, Doha

Qatar is investing in large-scale infrastructure projects including Victoria’s growing engagement with these countries complements new roads, water and sewerage systems, as well as education these trends: facilities, hospitals, housing, business and tourism infrastructure, • Oman and Kuwait are showing continued appetite for opening up new opportunities for Victorian companies. Victoria’s high quality food exports, particularly dairy, meat Victoria’s strengths in sustainable urban development, water and wheat. infrastructure and expertise, and education highlight the • Oman, Kuwait and Bahrain (along with Saudi Arabia, State’s ability to meet some of the needs of a growing and Qatar and the UAE) are significant importers of Victorian diversifying Qatar. manufactured vehicles and parts. All these countries are in the top ten destinations for Victoria’s automotive exports. 3.4 Other countries of interest in the GCC • Victoria has a burgeoning institutional and government Victoria has many long standing ties and interests with other relationships with Oman, underpinned by education and countries in the GCC, which are generally reflecting the broad research links, such as the Sultan of Oman Endowed Chair in trends observed in Victoria’s priority countries noted above. These Arab and Islamic Studies at Melbourne University. The Omani include for example: young and growing populations, economic Consulate in Melbourne plays a key role in supporting Omani diversification and reform, underemployment, a desire for quality Government sponsored students studying in Melbourne and education and training and government influence and investment Australia more broadly, as well as New Zealand and Malaysia, in capacity building and development. and actively participates in the Victorian business community. Government sponsored scholarship programs, such as that of Oman, provide an opportunity for Victoria to attract the future leaders of these countries to undertake academic studies in Melbourne.

Victoria – Gulf States Engagement Strategy 2013 15 4. Victoria’s Advantages in the GCC

Victoria has a number of key advantages which underpin • Victoria has demonstrated its commitment to a regional the Government’s efforts to help businesses and institutions presence, with the Victorian Government Business Office leverage opportunities in the key countries noted above: in Dubai. The office supports Victorian companies on-the- ground through the delivery of targeted trade and investment • Victoria’s food and agribusiness sector has a solid reputation programs, as well as through the provision of detailed market in the Gulf as a provider of clean, safe and reliable food and information, advice and connections. The Commissioner for fibre exports. The Government’s biosecurity services ensure Victoria in Dubai supports Victoria’s interests in the region the safety and quality of food grown in Victoria, and our high through deep relationships with officials in government, health and pest status facilitates maximum market access for business chambers, institutions and community leaders. Victoria’s meat, livestock, grain, and horticulture exports. • Victoria boasts high quality Higher Education and VET industries and is the Australian leader in transnational service delivery. • Victoria is a global leader in sustainable urban development, infrastructure, building services and clean technologies. • Victoria has a reputation as a reliable trading partner, with the Port of Melbourne – Australia’s largest and busiest container port facilitating trade between Victoria and the world, and Melbourne International Airport – Australasia’s largest air freight hub operating 24 hours a day, 7 days a week. • Melbourne has a firm standing as one of the world’s most liveable, sophisticated cities, as well as being Australia’s sporting and arts capital. Melbourne is home to the globally renowned, historic Melbourne Cup, of which Emirates is now the major sponsor. • Victorians’ diverse origins have fostered a vibrant multicultural community and have encouraged Melbourne’s reputation as a cosmopolitan, outward looking city. There are well established and growing communities from the Gulf region throughout Victoria, which support the State to have the skills and understanding necessary to better engage with the region.

Jumeirah Beach, Dubai

16 Victoria – Gulf States Engagement Strategy 2013 5. Key Challenges for Victoria’s Engagement with the GCC

5.1 Trade barriers Australia is one of a number of countries negotiating a free trade agreement (FTA) with the GCC. However the Council has suspended its negotiations pending a review of its trade policy. A commitment to resuming and finalising negotiations is essential for resolving remaining market access issues, particularly relating to tariffs on passenger motor vehicles and liberalising two-way investment. The conclusion of this FTA will help ensure Victoria and Australia’s competitiveness in-market.

5.2 Stability in the region A key consideration for the Government, as well as Victorian businesses, organisations and individuals seeking to engage with the Middle East region more broadly, is navigating the recent Burj Khalifa, Dubai conflict and instability in some countries in the region that are undergoing political transition. The Commonwealth Government, 5.4 Understanding the role of through the Department of Foreign Affairs and Trade and Austrade, provides advice and up-to-date information to enable state government in the GCC countries governments, businesses and individuals to appropriately consider National and sub-national governments throughout the region, and manage their engagement with and travel to the region. but particularly in the UAE, Saudi Arabia and Qatar, play a key role in the direction of the economy. Government policies, 5.3 Relationships are key including strategic plans, guide the economic and social aspirations of these countries. Understanding the strategic, long- There is a need for government, institutions and companies term plans of these governments will help to guide and focus to have deep country-specific knowledge of the public sector, Victoria’s engagement with the region. business culture and institutional environments in the GCC countries. The region, particularly the UAE, is intensely Government-to-government relationships are important in competitive. Business success in this region is based on providing a framework through which business and other relationships at the government-to-government, business-to- outcomes can be achieved. Engagement at Ministerial and business and people-to-people levels and these relationships bureaucratic level, both in-country and through the consular take time and effort to develop. Government endorsement and corps in Victoria, supports government-to-business and business- regular visits to the region are important for Victorian companies to-business engagement. seeking to establish meaningful relationships in-country. Establishing and maintaining a committed presence in the region – for both government and business – is also fundamental to strengthening and leveraging these relationships.

Victoria – Gulf States Engagement Strategy 2013 17 6. Victorian Government Priorities – Addressing the Opportunities and Challenges

6.1 Priority one: create the environment What we will do and opportunities to facilitate • The Victorian Government will assess its resourcing trade and investment for the region, particularly in Saudi Arabia where there remain numerous challenges to doing business, to better 6.1.1 Support businesses to have the opportunity, support Victorian companies seeking to explore and access knowledge and skills to engage with the GCC opportunities in-country. • The Government will continue its commitment to a presence The Opportunity in the Gulf through the Victorian Government Business The Government has a unique role to play in assisting Office in Dubai, headed by a Victorian Commissioner. The Victorian businesses and organisations to access and leverage Commissioner represents Victoria and Victoria’s interests in opportunities in the GCC countries. More than ever, Victorian the region and advocates for closer government, business and businesses are actively participating in the Government’s trade people links. engagement and export skills training programs. • The Victorian Government will work to enhance Victoria’s trade program in the region. The Trade Engagement Program Benefits to Victoria for the Middle East will support strategic and long-term The Government is committed to enabling Victorian businesses engagement in the region through: to diversify their trade and investment bases globally, as this will –– A comprehensive trade mission program to the Middle support the long-term economic prosperity of these businesses East, starting with a Super Trade mission to the UAE, Saudi and the State more generally. Arabia, Qatar and Turkey in February 2013; Current Situation –– Inward missions and delegations of key decision makers and influencers to Victoria, to highlight Victoria’s There is growing demand from Victorian businesses wishing to capabilities and investment proposition; participate in the Government’s trade engagement initiatives in the region, driven by the success of the large-scale Trade –– Support to the Australia Arab Chamber of Commerce Mission to the Middle East in February 2012, in which over 100 and Industry (AACCI) to deliver and expand its “Doing companies participated. Business in MENA” program for Victorian businesses. This will focus particularly on new opportunities for closer Challenges engagement with the consular corps through Ambassador Roundtable events and linking businesses with regional • A committed on-the-ground presence in the region is essential experts in-market; and for delivering the Government’s trade engagement program and supporting Victorian companies wishing to do business –– An Export Skills Program to assist with the specific cultural with the GCC. skills and training required to access the region, timed strategically with trade missions. • The GCC countries are increasingly competitive markets in which to do business. Victoria must position itself – its strengths and capabilities – to stand out amongst the crowd.

18 Victoria – Gulf States Engagement Strategy 2013 Benefits to Victoria International education is Victoria’s most valuable export industry, generating revenue and jobs whilst also contributing to international business and relationships. Education links can foster stronger people-to-people links which are fundamental to future trade, investment and other economic engagement opportunities.

Current Situation The strongest opportunities for the Victorian education industry in the GCC states are in offshore service provision, institutional and research partnerships. For example, Monash University’s Dubai, UAE 2012 agreement with Fatima College of Health Sciences provides access to the Monash curriculum in physiotherapy, • The Government will deliver an enhanced program of medical imaging, pharmacy and emergency health (paramedics), activities to position Victoria and Victoria’s capabilities in to help address the health care workforce needs of Abu Dhabi. the region through: In 2003, the Sultanate of Oman awarded the “Sultan of –– A targeted visiting journalist program; Oman Endowed Chair in Arab and Islamic Studies”, with an –– Sector specialist visits to key markets; endowment of US$1.5 million, to the University of Melbourne’s Asia Institute. Other universities to host such a Chair include –– Inward visits from the GCC, particularly around Harvard and Georgetown universities in the United States. The Victoria’s hallmark events, such as the Melbourne Cup, Chair is an ongoing research partnership between Oman and Australian Open Tennis and Grand Prix; and Australia and supports academic and diplomatic study of what it –– Victoria’s online business, study and tourism resources, means to be Muslim in western society. which are available in Arabic. In relation to international students, Victorian university enrolments from the Gulf and the Middle East more broadly 6.1.2 Enhance education capabilities, are relatively low, despite having grown steadily over the past expertise and institutional linkages five years. Saudi Arabia has the highest number of Victorian international student enrolments, totalling approximately The Opportunity 2,700 students in 2011, just under half of all enrolments from A number of national and sub-national government programs the region. throughout the Gulf are directed at increasing the level and The Victorian Government funds a dedicated Education Services quality of education across the population, as governments Manager in Dubai, UAE, to support efforts to attract more realise that economic transformation and employment growth students to Victoria and assist Victorian institutions to access can only be achieved through a more highly skilled workforce. opportunities in offshore service provision and partnerships. These initiatives present growing opportunities for Victorian providers to deliver offshore services and partner with institutions in-country.

Victoria – Gulf States Engagement Strategy 2013 19 Victoria will deliver a new five-year international education strategy in 2013, developed closely with industry.

Challenge Case study: Victoria International • Government is heavily involved in the education industry School of Sharjah, UAE throughout the GCC. The Victorian Government has a The Victoria International School of Sharjah was critical role to play, particularly in terms of government-to- established in February 2008, the result of an ongoing government links, to assist Victorian education providers partnership between the governments of Sharjah and wishing to establish partnerships in the region. the State of Victoria. The school employs the Victorian school curriculum and pedagogy, including using What we will do innovative technologies and flexible learning spaces. • Deliver a new five-year international education strategy The campus can accommodate up to 2,600 students and in 2013, developed closely with industry. The strategy will there are currently almost 1,100 students enrolled from consolidate Victoria’s place as a global leader in international Prep through to Year 12, including Victorian Certificate education, increase Victoria’s share of the international of Education and International Baccalaureate Diploma education market and maximise the broader commercial and Program students. cultural benefits of international education. The Victoria International School of Sharjah demonstrates • Establish the Victorian International Student Business the diversity of Victoria’s engagement in the region and Internship Program in partnership with Victorian businesses, the benefits for Victoria in working with regional partners public sector entities and universities, offering up to 150 in areas of mutual benefit. international student internships each year across the public and private sectors for students who have completed their studies and are eligible for post study work rights.

20 Victoria – Gulf States Engagement Strategy 2013 Burj Al Arab Hotel, Dubai

• Continue to support a dedicated Education Service Manager 6.1.3 Target opportunities in sustainable based in Dubai, UAE. urban development • Support Victorian education providers to access information The Opportunity about opportunities in country, for example, Saudi Arabia’s recent request for tender calling for providers to partner with Large scale urbanisation and infrastructure programs are being the government and establish and administer a significant rolled out by national and sub-national governments across number of VET colleges throughout the country. the Gulf. In Saudi Arabia there are over $600 billion worth of infrastructure projects being rolled out and the Government also • Encourage and facilitate education and research partnerships plans to build six new ‘economic cities’ as part of broader efforts – at the school, VET and higher education levels – with key to diversify the economy. These long-term plans present strong institutions and relevant governments in the GCC. opportunities for Victorian companies with globally-renowned • Actively promote Victoria’s education and research capability, expertise and capabilities in sustainable urban development, quality and experience to potential international students water and waste management and clean technologies. from the GCC, as well as to institutions and organisations demanding bespoke training packages. Benefits to Victoria • Enhance the StudyMelbourne website to provide tailored Victoria is a global leader in sustainable urban design, information to students from the GCC, including an Arabic infrastructure, building products, practices and education, as version of the site. well as water infrastructure and management – all key sectors for Victoria’s internationally competitive clean technology industry. Supporting these sectors is important for Victoria’s economic development, as liveable and sustainable cities attract innovative and creative people, and innovative and creative people attract high-value industries and jobs.

Victoria – Gulf States Engagement Strategy 2013 21 Leveraging Melbourne’s status as one of the world’s most liveable cities, the Victorian Government has established a reputation in the region as a leader in environmentally sustainable policy and practices. For example, the Environmental Protection Authority (EPA) Victoria recently collaborated with the Arriyadh Development Authority (ADA) to develop a waste study and implementation plan for the city of Riyadh in Saudi Arabia, which is expected to reach a population of 8 million by 2030.

Challenge • There is a need for Victorian companies to engage with national, sub-national and municipal governments and ruling families to access public project opportunities. Victorian companies, in particular small to medium enterprises, require government support and endorsement in order to gain access to these key decision makers.

What we will do • Continue to work with the AUS Cluster to pursue and promote Victoria’s clean tech capabilities – focusing on infrastructure, sustainable urban development and water – particularly in Saudi Arabia and the UAE. We will do this by leveraging Melbourne’s unique reputation as one of the world’s most liveable cities and supporting companies to enter the GCC through our enhanced trade mission program.

The Kingdom Tower, Riyadh • Explore modular and sustainable building as a growth area of demand in the region. Investigate opportunities for Victorian Current Situation designers and architects as there is a need, particularly in the UAE, for good quality, sustainable and quick-build high-rise The Victorian Government has worked closely with the Australian residential and commercial properties – an area in which Urban Systems (AUS) Cluster and supported industry engagement Victorian companies have solid expertise. in the Gulf for over a decade, with great success to date. There are a number of successful Victorian companies actively working in the Gulf, providing expertise and project management skills to governments on large-scale, long-term strategic plans. Victorian company Urbis Pty Ltd managed the Urban Framework Plan for the entire Emirate of Umm Al Quwain and delivered the Dubai 2030 strategy, with the support of the AUS Cluster and in partnership with the Victorian Government.

22 Victoria – Gulf States Engagement Strategy 2013 6.1.4 Increase tourism and air links A unique opportunity: Tourism infrastructure investment in Victoria The Opportunity The Victorian tourism industry is currently worth $15.9 Direct aviation access into the State is critical to the success billion and is set to grow significantly over the coming of Victorian tourism and business. Victoria actively targets years. Approximately 75 per cent of growth over the international airlines to fly to Melbourne and has been next 10 years is expected to come from the high-yielding particularly successful in the Middle East with major carriers international market. Appropriate tourism products, Emirates Airline, Etihad Airways and Qatar Airways all flying services and infrastructure are critical to delivering a to Melbourne. positive visitor experience, which in turn generates higher visitor expenditure and increased visitor numbers. Benefits to Victoria New investment and infrastructure is required to create The Victorian tourism industry is currently worth $15.9 billion these products and services and help achieve the State’s and is set to grow significantly over the coming years. Promoting tourism potential. Victoria as a leading tourism destination in international markets Continued redevelopment of popular tourist attractions supports growth in the industry. and investment in major events are important to Air links enable the easier flow of Victorians and international maintaining a strong competitive international tourist travellers to and from the Middle East, to support closer destination. Projects, such as the redevelopment of economic and social engagement. The Arab population of Melbourne Park tennis centre, will cater for the strong Australia, numbering 308,000 at the last Census, is an important forecast growth in tourism in Victoria. component of Victoria’s business community and underpins our Tourism Victoria is working with Tourism Australia significant engagement in the region. and Austrade to increase the flow of local and foreign investment into Australia’s $96 billion tourism Current Situation industry, engaging international audiences to leverage Melbourne is a significant destination for Emirates Airline, investment outcomes for key tourism projects in Victoria. Qatar Airways and Etihad Airways. The presence of these Opportunities for financial and/or equity partnerships airlines in Melbourne has flow on benefits such as sponsorship include tourism and nature-based tourism infrastructure, of sporting events like the Melbourne Cup and Etihad spa and wellness projects, integrated resorts and hotel Stadium, cultural events and other major business and development and management. community initiatives. The Victorian Government will promote investment-ready The Qantas and Emirates partnership announced in 2012 will projects in these areas to targeted potential investors in further support these linkages, increasing flights between the region, particularly during the Super Trade Mission in Australia and Dubai, strengthening Dubai’s position as a major February-March 2013. hub between Australia and Europe, and significantly increasing the numbers of Victorians and Australians visiting the region. Qantas has also committed to establishing a presence in the region to better support the increasing flow of people through Dubai and on to Victoria and Australia.

Challenges • There is growing competition for services from the key Gulf airlines from other destinations.

Victoria – Gulf States Engagement Strategy 2013 23 Case study: Aviation links Case Study: International business tourism to Victoria The three key carriers in the region – Emirates Airline, Etihad Airways and Qatar Airways – provide direct air Victoria’s research and scientific strengths, together with links between Melbourne and Dubai, Abu Dhabi, and the development of world class infrastructure, including Doha, better enabling the flow of people and business. the Melbourne Convention and Exhibition Centre, has resulted in Melbourne securing a long list of upcoming All three airlines have also made a deep brand investment international business events across a range of industries. in Melbourne, supporting flow-on benefits to many Victorians. For example, Emirates Airline is a key sponsor In 2013 and 2014, Melbourne will host three of the of the Collingwood Football Club and the Melbourne world’s largest international medical conferences Cup, and the company has a major call centre based including the 22nd World Diabetes Congress, the World in Melbourne, employing 120 people. Etihad has had a Congress of Cardiology and the 20th International AIDS strong impact on Melbourne’s sporting culture through its Conference. It is estimated that these events will attract sponsorship of Etihad Stadium and Qatar Airways was the more than 35,000 delegates, with many of those expected key sponsor of the Melbourne Jazz Festival in 2012. to come from the Gulf. The Melbourne Convention and Visitors Bureau forecasts these conventions will generate Tourism Victoria and Emirates Airline undertake a range more than $185 million in economic impact for Victoria. of collaborative marketing activities to attract visitors to International business events such as these provide the Victoria not only from the Gulf but also from the United opportunity to showcase Victorian innovation, knowledge Kingdom, Europe and Asia. and research to not only visitors from the GCC countries, but a wide global audience.

What we will do 6.1.5 Explore opportunities for Victoria’s world class equine industry • Partner and work collaboratively with Tourism Australia and the three major carriers to increase direct flights from the GCC The Opportunity to Victoria and improve visitor access. Continue discussions with other airlines in the region regarding increased services There is a strong passion in the Gulf for horse racing – to Victoria. thoroughbreds and purebred Arabian horses in particular – driven by the ruling families, particularly in the UAE, Saudi • Continue to position Melbourne as Australia’s international Arabia and Qatar. Since 1996, Dubai has hosted the Dubai World hub, well served by its 24-hour, curfew-free, Melbourne Cup, the world’s richest horse race. There are solid opportunities Airport, and support Avalon Airport’s progress towards for Victorian equine companies in these countries, where there becoming Victoria’s second international airport. is growing demand for race tracks, equine administration, • Continue to promote Melbourne, Victoria as a tourist horse-breeding and purchasing, equine insurance, professional destination for visitors from the Gulf States, supported by services, feed, veterinary products, riding and equestrian Arabic-language and other resources such as the Visit Victoria equipment and international transport. website and the Arabic/English Melbourne visitor guide. Benefits to Victoria • Align tourism investment to visitors from the Gulf by working with the private sector to attract new investment Victoria has a reputation as a global sporting capital, with the in infrastructure development, to position Victoria for strong Melbourne Cup Carnival a world-renowned racing event. The tourism growth. equine industry contributes significant revenues to the Victorian economy, with flow-on benefits into other sectors such as tourism, hospitality, fashion, retail and education.

24 Victoria – Gulf States Engagement Strategy 2013 Victoria’s capabilities and expertise in horse breeding and training, stud support services, equine health and equine products are recognised and in great demand in the GCC.

Current Situation Challenges Victoria’s thoroughbred horse racing industry is a world leader. • There is significant competition from the European equine The Melbourne Cup Carnival is one of the most prestigious industry, which has the advantage of being closer to the Gulf. sporting events in the world, attracting hundreds of thousands of • As many of the large equine facilities in Dubai, Abu Dhabi, people from Australia and internationally. Sharjah and Qatar are owned by ruling families, doing equine Victoria’s capabilities and expertise in horse breeding and business in the region is contingent on good relationships and training, stud support services, equine health and equine trust with these families, which can only be built up over time. products are recognised and in great demand in the GCC, Regular visits and a demonstrated commitment to establishing particularly in Saudi Arabia, Qatar and the UAE. Seymour is long-term partnerships are essential. home to Darley’s Northwood Stud, owned by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President What we will do and Prime Minister and Ruler of Dubai. Victoria also has • Facilitate and support opportunities in the GCC countries for specialist equine education capabilities such as the National equine related businesses and institutions in collaboration Centre for Equine Education, a specialist training centre with the Victoria Racing Club. established by Goulburn Ovens Institute of TAFE (GOTAFE), and Northern Melbourne Institute of TAFE’s (NMIT) Equine • Support an equine business cluster approach – comprising Studies department. a broad range of organisations in breeding, equine products, training, track design and equine education – to leverage these opportunities, including through outbound and in-bound equine trade missions.

Victoria – Gulf States Engagement Strategy 2013 25 6.2 Priority two: develop and deliver Challenges a food and agribusiness cluster • There are numerous competitors to Victoria’s food and approach to the GCC beverage exports to the region. Victoria can compete on reliability and quality, however air and sea freight charges The Opportunity are high and this can affect competitiveness. Population pressures, rising incomes, a desire for greater variety • Shelf life requirements for meat in the Middle East are and increasingly western tastes is creating increasing demand often shorter than necessary to preserve freshness. These for high-quality, safe food and beverage products, including halal requirements can affect the competitiveness of non-GCC food, as well as agribusiness services. meat imports, given their distance from the market. The Middle East is one of the world’s fastest growing food and • Tariffs for meat and livestock exports in some markets are beverage export destinations, with the GCC countries importing also a challenge for Victorian exporters. 18 over US$12 billion worth of agri-food annually. Saudi Arabia • Import standards across the Gulf States can be difficult to is the region’s largest food importer, followed by the UAE and interpret. For example, while halal principles are universal, Kuwait. Countries such as the UAE and Qatar are investing interpretations of these principles may vary from country heavily in their tourism industries, resulting in demand for to country. Victorian producers must ensure their product high-end food services and retail. complies with the regulations of the destination market. The GCC also presents growing opportunities for Victoria’s water Guaranteeing the integrity of halal certification through the management capability, from on-farm irrigation infrastructure to value chain is also a key issue for Victorian exporters. water governance and delivery. What we will do Benefits to Victoria • Provide up to $50,000 to assist groups of food and fibre The food and beverage industry is a significant employer in producers to better promote themselves in-market. Work Victoria, particularly in regional Victoria, directly employing closely with Victorian food and fibre producers on collective around 55,000 people. Victoria’s food industry is worth over opportunities by promoting cooperatives where appropriate $6 billion in exports, directly contributing to the State’s and improving the international and domestic positioning economic prosperity. capacity of Victorian food and fibre producers. • Continue to promote Victoria in the Gulf as a supplier of Current Situation reliable, safe and high quality food and beverage goods Victoria’s clean and reliable food products are in great demand, and associated services. with exports to the region valued at approximately $670 million • Continue to ensure the safety and quality of food grown in in 2011-12. Victoria is also gaining a solid reputation as a Victoria by enhancing the Government’s biosecurity services. reliable supplier of quality halal products. Victoria’s high health and pest status provides maximum market access for meat, livestock, grain and horticulture. The Government has committed to expanding its research into pest, plant and animal control, encompassing both biological and conventional control methods.

18 Victorian Department of Primary Industries, The Middle East Market Development and Access Strategy 2011-12, 2012 available at www.dpi.vic.gov.au.

26 Victoria – Gulf States Engagement Strategy 2013 • Deliver information to Victorian providers of food, fibre, Current Situation beverage, education, water infrastructure, and professional The Government of Victoria has a long standing and committed and sustainable rural services on the opportunities in the presence in the Gulf, led by the Victorian Government Business Gulf. Facilitate and coordinate the clustering of companies Office in Dubai, UAE. Victoria is establishing and strengthening to form a business community of interest in order to present government and institutional relations at all levels in key the Victorian value proposition to key stakeholders in-country countries in the region, and does so in close collaboration with – including government, business and peak organisations – the Department of Foreign Affairs and Trade (DFAT). particularly in the UAE and Saudi Arabia. The Government also cultivates mutually beneficial relationships 6.3 Priority three: strengthen strategic with the consular corps and multicultural chambers of commerce relationships to support deeper, both in the Gulf and in Melbourne, supporting domestic and international business and cross-cultural activities. long-term engagement Challenge 6.3.1 Strengthen government-to-government and government-to-industry links • As government structures vary from country to country, a flexible approach to forging government relationships The Opportunity is required.

There is scope for Victoria to establish stronger government- What we will do to-government and government-to-industry links in the Gulf. Increasing these links will improve access for business and • Continue to actively encourage reciprocal government visits government to key players in the region and deepen our existing and ministerial exchange with the region. linkages, demonstrating Victoria’s commitment to cultivating • Work to create new and meaningful relations with national, long-term relationships with GCC countries. sub-national, regional and municipal governments particularly in the UAE, Saudi Arabia and Qatar, through collaboration Benefits to Victoria and dialogue. Government-to-government and government-to-industry • Support the development of government and institutional links relationships help to expand bilateral and multilateral and collaboration, particularly in education. opportunities for trade and investment, supporting Victorian companies to access opportunities in the region, such as through • Support the 2014 Australian Arab Youth League Dialogue in in-bound and out-bound trade missions. Melbourne, which aims to bring together young professionals from Arab League countries and Australia to discuss the future of trade, political and civil society relationships between the Arab world and Australia. • Continue to work collaboratively with the Australian Government (DFAT and Austrade at post) and the consular corps in-country and in Melbourne. Actively engage with multicultural chambers of commerce and Australian business associations in the Gulf, including for example the Council for Australia-Arab Relations.

Victoria – Gulf States Engagement Strategy 2013 27 6.3.2 Position Victoria through the annual Current Situation ‘Victoria Week’ in Dubai The first Victoria Week was launched in Dubai in October 2012, with a focus on showcasing Victoria’s trade and investment The Opportunity strengths through targeted activities in key industries including “Victoria Week” is an initiative under the Government’s food and beverage, tourism and equine. The series of events $50 million Victorian International Engagement Strategy. were supported by Victoria’s key partners in the region including The program is intended to raise the State’s profile through Emirates Airline, the Victoria Racing Club and the Atlantis Hotel. a concentrated series of events and media outreach in Since 2011, Victoria has partnered with Dubai Eye, the UAE’s Victoria’s priority countries around the world, including key premier talk radio station, for a week of live broadcasts from countries in the Gulf. the top of Melbourne’s Eureka Tower. Dubai Eye broadcasts 24 hours a day in eight languages to an audience of Benefits to Victoria approximately 100,000, the largest audience base in the UAE Hosting “Victoria Week” in-country provides a unique and entire Gulf region. opportunity to showcase Victoria as an excellent place to study, live, work and conduct business, with a depth of talent. Such activities, including the participation by key partners and spokespeople for Victoria, are vital to positioning the State in the Gulf.

28 Victoria – Gulf States Engagement Strategy 2013 The growing community of people from the region is helping Victoria to bridge cultural and linguistic divides with the Gulf and promote understanding and the development of new partnerships.

In 2012, the Dubai Eye broadcasts formed part of the 6.4 Priority four: improve Victorians’ Government’s Victoria Week activities in the Middle East that understanding of the region included the inauguration of Emirates Airline’s first A380 flight to Melbourne and promotion of the Emirates Melbourne Cup. The through community, cultural, social radio presenters interviewed high profile industry leaders with and artistic engagement links to the UAE, from the worlds of politics, business, sport, education and tourism. The Opportunity The growing community of people from the region is helping Challenge Victoria to bridge cultural and linguistic divides with the Gulf and • The GCC region, particularly the UAE, is increasingly promote understanding and the development of new partnerships. competitive. Victoria must continue to position itself in- Opportunities for new partnerships also extend to the arts, through country in new and unique ways, in order to rise above collaboration and exchange between Victorian artistic and cultural the competition. institutions and their counterparts in the Gulf. Arabic, the most widely spoken language in the region, is now What we will do ranked as the sixth most spoken language in the home (other • Continue to enhance and deliver the annual ‘Victoria Week’ than English) in Victoria. in-country, with the next program scheduled for February- March 2013.

Victoria – Gulf States Engagement Strategy 2013 29 Benefits to Victoria A large expatriate population of around 20,000 Australians live in the Gulf region. The Victorian Government supports the These collaborations will help Victoria and Victorians to have various Australian business and social groups in the region that a deeper understanding of the unique histories, peoples, arts help to position the State in-country and foster a community of and cultures of the Gulf region. An increased understanding of Victorians and key influencers in the region. the Gulf will underpin Victoria’s enhanced engagement with the region at the people, business and government levels. Victoria’s engagement with the GCC through the arts and culture is developing, for example, through visiting exhibitions such as Current Situation the University of Melbourne’s Oman Corner. The Corner displays many different aspects of Omani culture, including traditions, The Government has established good relationships with heritage, society, government, economy and topography. Some Victoria’s Gulf and Arabic speaking community through its of the many items on display include traditional Omani clothes, a Promoting Community Harmony Program which promotes mini fort and dhow, musical instruments, jewellery, frankincense understanding and respect for faith and cultural diversity in and khanjar. The Corner gives visitors a unique glimpse of Omani the Victorian community. As part of this, the Government’s culture and society. There is good potential for collaboration and Multifaith Advisory Group brings together faith community exchange between Victorian artistic and cultural institutions and leaders to represent the views and experiences of their their counterparts in GCC and broader region. communities to Government. The Government also engages with the Gulf community through the Multicultural Business Challenge Ministerial Council, made up of 19 representatives from the multicultural business community. • Victoria’s diversity is one of the State’s greatest social, cultural and economic assets. However, there is great scope for Victoria The Government is committed to increasing understanding about to strengthen its community and cultural links with the Gulf, to faith, religious and cultural diversity in Victoria and to breaking support a deeper understanding of our respective regions. down stereotypes and misconceptions. This includes providing grants for multifaith initiatives, supporting large multicultural festivals which showcase the vibrancy of Victoria’s multifaith and multicultural community, and fostering cross-cultural connections through the $1.1 million Unity Through Partnerships Grants Program. Since 2010, the Victorian Government has also invested in the enhancement of existing, or construction of new community spaces owned by the Gulf and broader Arabic community in Victoria through the Cultural Precincts and Community Infrastructure Fund.

30 Victoria – Gulf States Engagement Strategy 2013 Case study: The Islamic Museum of Australia in Victoria The Islamic Museum of Australia (IMA) is a not-for-profit organisation founded in May 2010, and will be the first Islamic Museum in Australia when it opens its doors in Thornbury in December 2013. The IMA will promote the artistic heritage and historical contributions of Muslims in Australia and abroad, through education and cross- cultural experiences. The establishment of IMA is an $8.5 million partnership between the Victorian and Commonwealth Governments, with funding of $500,000 recently awarded by OMAC. Australian and Lebanese banking and construction groups (ANZ, Hellenic Beirut Bank and Habtoor Leighton Group), the Australian Islamic community and many more Sheikh Zayed Road, Dubai sponsors are also supporting the project. What we will do The IMA will contribute to the landscape of community museums in multicultural Australia and will provide an • Collaborate with key business stakeholders, the consular insight into Australian-Muslim life. The IMA will house corps, chambers of commerce and community organisations five permanent galleries including: Islamic Beliefs and to explore establishing a community space that provides a Practices; Contribution to Civilisation; Islamic Art; Islamic hub of information for visitors, students and businesses from Architecture; and Australian Muslim History. It will also the Gulf and broader Middle East region. Information would accommodate workspaces for artists, a theatrette, a be available on social and cultural events, services, tourism multi-function room, a library and meditation rooms. resources, investment and business opportunities for Victoria. • Support increased social, cultural and artistic engagement between Victoria and countries in the region through targeted initiatives designed to increase awareness and understanding between our two regions. • Continue to provide support to Victoria’s diverse Arabic speaking community and promote multifaith and multicultural harmony in Victoria. • Enhance people-to-people and cultural links through initiatives such as Victoria Week and the Victorian Connection, creating links between expatriates and people who have lived and studied in Victoria. • Explore opportunities for artistic exchange and collaboration with leading institutions in Gulf and broader region.

Victoria – Gulf States Engagement Strategy 2013 31 7. Conclusion

Deeper engagement with the GCC will continue to be of strategic importance for Victoria. The actions outlined in this Strategy will enable Victoria to capitalise on opportunities arising in the region that align the needs and preferences of the growing Gulf population with Victoria’s capabilities. The Victoria-Gulf States Engagement Strategy provides the foundation for increasing Victoria’s economic, government, social and cultural engagement with the Gulf States. It will build on the excellent relationships and collaborations between Victoria and the Gulf States that already exist, and will contribute to the development of new and fruitful partnerships. Growing Victoria’s relationship with the GCC countries will contribute to the State’s economic prosperity. It will also broaden and deepen Victoria’s understanding of the wider Middle East region and contribute to a rich, mutually beneficial partnership now and for the future.

32 Victoria – Gulf States Engagement Strategy 2013 This document sets out the Victorian Government’s strategy to help deepen the State’s engagement with the Gulf Cooperation Council states. While every effort has been made to ensure accuracy and currency at the time of publication, you should verify information for yourself and obtain independent professional advice regarding any investment or other business decision. Authorised by the Victorian Government, Melbourne. © Copyright State of Victoria, February 2013 To receive this publication in an accessible format email: [email protected] DOT7597/13