Transport Infrastructure Sector MENA June, 2015

Produced by:

I. Regional Sector Overview 2. Investment Climate (cont’d) 1. Definition of MENA Region 3. Government Infrastructure Projects 2. Transport Infrastructure Sector in MENA 4. Government Infrastructure Projects (Cont’d) 3. MENA Region: Quality of Overall Infrastructure Biggest Infrastructure Projects 4. MENA Region: Quality of Road Infrastructure 5. MENA Region: Quality of Port Infrastructure III. Saudi Arabia 6. MENA Region: Ports Throughput 1. Sector Highlights 7. MENA Region: Quality of Air Transport Infrastructure 2. Economic Indicators 8. MENA Region: Airport Capacity 3. Quality of Infrastructure 9. MENA Region: Quality of Railroad Infrastructure 4. Road Infrastructure 10. GCC Regional Railway Project 5. Port Infrastructure 6. Port Infrastructure (cont’d) II. Qatar 7. Port Infrastructure (cont’d) 1. Sector Highlights 8. Port Infrastructure (cont’d) and Ports Throughput 2. Economic Indicators 9. Air Transport Infrastructure 3. Transport Infrastructure Indicators 10. Air Transport Infrastructure (cont’d) 4. Transport Infrastructure Indicators (cont’d) 11. Investment Climate 5. Quality of Infrastructure 12. Investment Climate (cont’d) 6. Road Infrastructure 13. Government Infrastructure Projects 7. Port Infrastructure 14. Government Infrastructure Projects (cont’d) 8. Ports Throughput 15. Biggest Infrastructure Projects 9. Air Transportation Infrastructure 10. Investment Climate

IV. United Arab Emirates V. Main Players 1. Sector Highlights 1. Top M&A Deals 2. Economic Indicators 2. M&A Activity, 2013-2014 3. Quality of Infrastructure 3. Arabtec Holding PJSC 4. Road Infrastructure 4. Arabtec Holding PJSC (cont’d) 5. Port Infrastructure 5. Drake & Scull International PJSC 6. Port Infrastructure (cont’d) 6. Drake & Scull International PJSC (cont’d) 7. Port Infrastructure (cont’d) 7. Combined Group Contracting Co. 8. Port Infrastructure (cont’d) 8. Combined Group Contracting Co. (cont’d) 9. Port Infrastructure (cont’d) 9. Galfar Engineering And Contracting SAOG PLC 10. Port Infrastructure (cont’d) 10. Galfar Engineering And Contracting SAOG PLC (cont’d) 11. Ports Throughput 11. National Marine Dredging Company PSC 12. National Marine Dredging Company PSC (cont’d) 12. Air Transportation Infrastructure 13. Appendix 13. Investment Climate 14. Investment Climate (cont’d) 15. Government Infrastructure Projects 16. Government Infrastructure Projects (cont’d) 17. Biggest Transportation Projects

Middle East and North Africa Region

Comments

The current report outlines the development of the agricultural sector in the Middle East and North Africa (MENA) region, which is composed of 17 countries: Algeria, Bahrain, Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates (UAE) and Yemen. The report focuses on three main countries, namely Qatar, Saudi Arabia, and the United Arab Emirates. They were selected on the basis of their superior performance in all infrastructure subsectors, combined with extensive government investments in infrastructure projects that will undoubtedly fuel future growth.

MENA and the Middle East in particular benefit from extremely advantageous geographical location. Middle East is at the centre of the globe with 86% of the world population and 63% of world GDP at a maximum distance of 9,000 nautical miles, as noted by Airbus and Blominvest Bank. The region is equally Geographic accessible by sea and by air and provides excellent opportunities that arise by the surging movement of people and goods between the East and the West. Location In addition, oil exporting countries from the region rely heavily on sea transportation to ship their petrochemical products globally. All of these factors, in addition to the funds provided by the oil & gas export, have led to extensive investments in transport infrastructure. Governments aim to boost local competitiveness, to diversify hydrocarbons based economies by enhancing sectors like construction, transportation, logistics, tourism, and services, and to intensify even more the movement of people and goods.

Road construction in MENA is particularly challenging due to the harsh natural conditions in the region - high temperatures, desert terrain and sand storms. Road However, countries like Saudi Arabia have adopted sophisticated road construction methods and manage to build thousands of km of new roads despite Infrastructure the obstacles. Due to the evident difference in economic development within the region and the related ability to invest in infrastructure, MENA is the home of both countries that have high quality roads and such that have largely underdeveloped road networks.

With the exception of Iraq, all MENA countries under analysis have access to sea, and they have built a solid port infrastructure. By far, sea ports have mainly supported the export of petrochemicals, and have also accommodated the export and import of foods, vehicles and other large cargoes. MENA is Port the world’s most food import-dependent region. Countries like Jordan, Kuwait, Libya, Lebanon, Saudi Arabia, UAE, and Yemen import virtually their entire Infrastructure domestic consumption of crops chiefly through sea transportation. However, as tourist flow to MENA countries is growing over the years, sea ports are being adapted to accommodate large groups of cruise tourists, as well. In 2013, Jebel Ali Port in Dubai was the 9th busiest port worldwide in terms of TEUs handled.

MENA is rapidly positioning itself as one of the world’s major air transportation hubs. The region offers large network of growingly sophisticated airport Air facilities. Moreover, anticipating fast growth of passengers travelling from, to and through the region, local governments are incessantly investing in Transport increased airport capacity. Regional competition on who is going to become the dominant air transport hub is heating up and airports that have just been extended announce new extension works to start shortly thereafter. In particular, the 20-month old Al Maktoum Intl Airport (Dubai, UAE) is currently Infrastructure undergoing construction works to become the biggest airport in the world having annual capacity of 220 mn passengers. It is also noteworthy that another Emirati Airport, Dubai Intl, was the world’s busiest airport in terms of international passengers traffic between March 2014 and March 2015 (ACI data).

Railways are the most underdeveloped transport infrastructure subsector in MENA. In 2015, only eight countries – Algeria (network in exploitation 3,854 km), Egypt (network of 5,153 km), Iran (network of 12,998 km), Iraq (network of 2,138 as of 2012), Jordan (Hejaz Railway network in exploitation 451.5 Railway km), Morocco (network of 2,109 km), Saudi Arabia (network of approx. 1,380 km) and Syria (network of 2,139 km as of 2012) – have operational rail networks. Across the region, there are just a few international connections between major cities, like that between Damascus and Amman or Tehran in Infrastructure Iran, as noted by Blominvest Bank. However, major railway expansion projects are underway, including the construction of regional network connecting the six Gulf Council countries, as well as individual national programmes. Saudi Arabia, for instance, is planning to build a 9,900 km. network by 2040.

Quality of Overall Infrastructure Highlights

2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 . Overall, MENA countries under analysis have slightly MENA Average* 4.7 4.7 4.5 4.4 4.2 deteriorated their performance over 2011-2014 versus 2009-2011, and perform at average global levels during Global Average 4.3 4.3 4.3 4.3 4.2 the last two years, the World Economic Forum’s Executive Algeria 3.8 3.7 3.5 3.8 3.6 Opinion Survey infrastructure quality survey shows. Bahrain 5.6 5.9 6.0 5.7 5.6 . Business executives from UAE, Bahrain, Oman, Saudi, Egypt Arabia, and Qatar perceive the overall infrastructure in 4.3 3.9 3.8 3.3 2.9 their countries as among the best in the world with Iran 4.0 4.0 4.2 4.2 3.9 average 2009-2014 indices of 6.3, 5.8, 5.7, 5.6, and 5.4 Iraq n/a n/a n/a n/a n/a respectively. . On the other hand, overall infrastructure in Yemen, Libya, Jordan 5.2 5.0 5.1 5.1 4.8 and Lebanon is considered to be significantly Kuwait 4.9 4.7 4.5 4.6 4.3 underdeveloped with respective average 2009-2014 Lebanon 2.5 2.5 2.4 2.3 2.3 values of 2.7, 2.6, and 2.4. Libya 3.2 n/a 2.9 2.3 1.9 Note: Information on Quality of Overall Infrastructure is provided Morocco 4.1 4.3 4.8 4.9 4.6 by World Economic Forum’s Executive Opinion Survey. This is Oman 5.8 5.9 5.8 5.8 5.4 an index that measures business executives' perception of their country's overall infrastructure (e.g. transport, telephony, and Qatar 5.1 5.6 5.5 5.4 5.4 energy). Saudi Arabia 5.5 5.6 5.8 5.7 5.2 The data for the latest year are combined with the data for the Syria n/a n/a n/a n/a n/a previous year to create a two-year moving average. Scores range from 1 (overall infrastructure considered extremely Tunisia 5.5 5.0 n/a 4.1 3.9 underdeveloped) to 7 (overall infrastructure considered efficient United Arab by international standards). Emirates 6.2 6.3 6.4 6.4 6.4 Yemen n/a 3.0 2.8 2.6 2.5 WEF, - * MENA Average is calculated for the 17 countries under analysis and excludes economies, that might be part of the region in other Source: classifications. Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 7 - MENA Region: Quality of Road Infrastructure

Quality of Road Infrastructure Highlights

2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 . Overall, the MENA countries under analysis fall slightly MENA Average* 4.6 4.5 4.5 4.3 4.2 below the global average of quality of road infrastructure, Global Average according to the World Economic Forum’s Executive 4.7 4.7 4.6 4.4 4.4 Opinion Survey on road infrastructure quality. Algeria 3.9 3.8 3.4 3.3 3.1 . However, economies like Bahrain, Oman, Qatar, Saudi Bahrain 5.5 5.7 5.8 5.4 5.4 Arabia and UAE perform well above the MENA and global averages. Over the 2007-2014 period, Bahrain registered Egypt 3.7 3.4 2.9 2.7 2.9 an average Road Quality Index of 5.6, Oman – of 6.3, Iran 3.7 3.8 4.0 4.1 4.1 Qatar – of 5.0, Saudi Arabia – of 5.7, and UAE of 6.5. Iraq n/a n/a n/a n/a n/a . Lebanon, Libya, and Yemen are the weakest performers in the region with average 2007-2014 index values of Jordan 4.7 4.6 4.8 4.8 4.1 respectively 2.8, 2.7, and 2.6. Kuwait 5.0 5.0 4.9 4.8 4.6 Lebanon 3.0 2.9 2.8 2.7 2.8 Libya 3.1 3.1 2.5 2.1 Morocco 3.4 3.4 4.0 4.5 4.5 Note: Information on Quality of Road Infrastructure is provided by Oman 6.2 6.4 6.4 6.4 6.0 World Economic Forum’s Executive Opinion Survey. This is an Qatar index that measures business executives' perception of their 4.9 5.0 5.1 5.0 5.0 country's road infrastructure. Saudi Arabia 5.5 5.8 6.0 5.8 5.3 The data for the latest year are combined with the data for the Syria n/a n/a n/a n/a n/a previous year to create a two-year moving average. Scores range from 1 (road infrastructure considered extremely Tunisia 5.1 4.6 n/a 3.8 3.7 underdeveloped) to 7 (road infrastructure considered efficient by United Arab international standards). Emirates 6.3 6.3 6.5 6.6 6.6 Yemen n/a 2.9 2.7 2.4 2.5

WEF, - * MENA Average is calculated for the 17 countries under analysis and excludes economies, that might be part of the region in other Source: classifications. Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 8 - MENA Region: Quality of Port Infrastructure

Quality of Port Infrastructure Highlights

2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 . Overall, MENA countries under analysis have performed MENA Average* 4.6 4.5 4.5 4.4 4.3 slightly above the global average over the 2009-2014 period, the WEF port infrastructure quality survey showed. World Average 4.3 4.3 4.3 4.2 4.1 . UAE, Bahrain, Oman, Qatar, and Saudi Arabia are Algeria 3.2 3.0 2.7 2.7 2.8 performing best in the region with average 2009-2014 Bahrain 5.8 6.0 6.0 5.8 5.7 indices of 6.3, 5.9, 5.4, 5.3, and 5.2 respectively. . In contrast, Libya, Algeria, and Yemen appear to have the Egypt 4.2 4.0 4.0 4.1 4.2 most underdeveloped port infrastructure in the region with Iran 3.9 3.9 4.0 4.1 4.0 respective average 2009-2014 indices of 3.1, 2.9, and 2.9. Iraq n/a n/a n/a n/a n/a Jordan 4.4 4.3 4.4 4.5 4.1 Kuwait 4.4 4.2 4.1 4.1 3.9 Lebanon 4.5 4.3 4.1 4.3 4.1 Libya 3.2 n/a 3.5 3.0 2.6 Note: Information on Quality of Port Infrastructure is provided Morocco 4.4 4.5 4.8 5.0 4.9 by World Economic Forum’s Executive Opinion Survey. This Oman 5.3 5.4 5.4 5.5 5.2 is an index that measures business executives' perception of their country's port infrastructure quality. Respondents in Qatar 5.4 5.4 5.2 5.2 5.4 landlocked countries have been asked how accessible port Saudi Arabia 5.2 5.4 5.3 5.1 5.0 facilities are. Syria 3.1 3.4 n/a n/a n/a The data for the latest year are combined with the data for the previous year to create a two-year moving average. Tunisia 5.0 4.6 n/a 4.0 3.9 United Arab Scores range from 1 (port infrastructure considered extremely Emirates 6.2 6.2 6.4 6.4 6.5 underdeveloped) to 7 (port infrastructure considered efficient by international standards) Yemen n/a 2.9 3.0 2.9 2.6 WEF, - *MENA Average is calculated for the 17 countries under analysis and excludes economies, that might be part of the Source: region in other classifications. Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 9 - MENA Region: Ports Throughput

Container Port Traffic, TEUs thou 2007 2008 2009 2010 2011 2012 2013 MENA Total* 32,077 37,141 37,669 41,187 45,222 47,105 49,667

Global Total 489,818 516,152 472,175 542,248 587,483 616,674 651,099 Algeria 200 225 250 280 296 318 343 Bahrain 239 269 280 290 306 329 355 Egypt 5,182 6,099 6,250 6,709 7,737 7,356 7,143 Iran 1,723 2,000 2,206 2,593 2,740 2,946 3,179 Iraq n/a n/a n/a n/a n/a n/a n/a Jordan 414 583 675 619 654 703 759 Kuwait 900 962 854 992 1,048 1,127 1,216 Lebanon 948 862 995 949 1,034 883 1,117 Libya 122 175 159 185 195 370 435 Morocco n/a 919 1,222 2,058 2,083 1,800 2,500 Oman 2,877 3,428 3,768 3,893 3,633 4,167 3,930 Qatar 350 400 410 346 366 393 424 Saudi Arabia 4,209 4,652 4,431 5,313 5,695 6,564 6,742 Syria 539 611 685 649 686 737 796 Tunisia 421 425 419 466 493 530 572 United Arab Emirates 13,182 14,756 14,425 15,177 17,548 18,121 19,336 Yemen 773 775 640 669 707 760 820

CEIC, World Bank, - *MENA Total is calculated for the 17 countries under analysis and excludes economies, that might be part of the region in other Source: classifications. Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 10 - MENA Region: Quality of Air Transport Infrastructure

Quality of Air Transport Infrastructure 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 . In general, over the 2009-2013 period MENA countries MENA Average* 5.1 5.0 4.9 4.7 4.4 under analysis have performed above the global average Global Average 4.7 4.7 4.6 4.4 4.4 but their performance has deteriorated in 2013-2014 and has evened the global mean of 4.4. Algeria 3.9 3.8 3.3 3.0 3.0 . UAE, Qatar, Bahrain, and Saudi Arabia are considered to Bahrain 6.0 6.1 6.0 5.6 5.2 have the best air transport infrastructure in the world with Egypt 5.5 5.3 5.0 4.8 4.6 average 2009-2014 indices of 6.6, 6, 5.8, and 5.4 respectively. Iran 3.0 2.9 3.1 3.3 3.2 . In contrast, Yemen, Iran, and Libya appear to have the Iraq n/a n/a n/a n/a n/a most underdeveloped airport infrastructure in the region Jordan 5.7 5.6 5.5 5.5 4.8 with respective average 2009-2014 indices of 3.1, 3.1, and 2.9. Kuwait 4.7 4.4 4.2 4.0 3.8 Lebanon 5.7 5.5 5.1 4.9 4.5 Note: Information on Quality of Air Transport Infrastructure is Libya 2.9 n/a 3.3 2.9 2.4 provided by World Economic Forum’s Executive Opinion Morocco 4.7 4.8 5.1 5.0 4.8 Survey. This is an index that measures business executives' perception of their country's air transport infrastructure Oman 5.5 5.5 5.5 5.5 5.1 quality. Qatar 6.1 5.9 6.0 6.0 6.0 The data for the latest year are combined with the data for the Saudi Arabia 5.4 5.6 5.7 5.4 5.1 previous year to create a two-year moving average. Scores range from 1 (air transport infrastructure considered Syria n/a n/a n/a n/a n/a extremely underdeveloped) to 7 (air transport infrastructure Tunisia 5.6 3.7 n/a 4.5 4.2 considered efficient by international standards) United Arab Emirates 6.6 6.5 6.6 6.7 6.7 Yemen n/a 4.0 3.5 2.7 2.3 WEF, - *MENA Average is calculated for the 17 countries under analysis and excludes economies, that might be part of the Source: region in other classifications. Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 11 - MENA Region: Airport Capacity

Fastest Growing Airports in the Middle East 2014 vs. 2010, % capacity growth Biggest Airports in MENA, May 2014

157.7% Ranking Airport Name Country Seats 118.9% 1 Dubai Intl Airport United Arab Emirates 471,488 76.4% 2 Riyadh King Khaled Intl Airport Saudi Arabia 344,894 65.6% Saudi Arabia 331,416 58.9% 3 Jeddah King Abdulaziz Intl 55.9% Airport 44.2% 4 Doha Intl Airport Qatar 246,592 40.7% 5 Tehran Mehrabad Airport Iran 212,910 38.6% 27.0% 6 Kuwait Intl Airport Kuwait 171,812 Baghdad (BGW), Iraq Madinah (MED), Saudi Arabia 7 Bahrain Intl Airport Bahrain 160,567 Abha (AHB), Saudi Arabia Abu Dhabi (AUH), UAE 8 Dammam King Fahd Intl Airport Saudi Arabia 137,446 Doha (DOH), Qatar Jeddah (JED), Saudi Arabia Dubai (DXB), UAE Dammam (DMM), Saudi Arabia 9 Abu Dhabi Intl Airport United Arab Emirates 109,739 Sharjah (SHJ), UAE Riyadh (RUH), Saudi Arabia 10 Amman Queen Alia Intl Airport Jordan 104,187

Fastest Growing Airports in North Africa 2014 vs. 2010, % capacity growth Comments

791.4% . Six of the biggest MENA airports in terms of seat capacity are situated in 346.9% UAE, Saudi Arabia, and Qatar. These are Dubai Intl Airport, Riyadh Intl 86.9% Airport, Jeddah Intl Airport, Doha Intl Airport, Dammam Intl Airport, and Abu 45.6% 33.7% Dhabi Intl Airport. 30.8% . Among them, Dubai Intl Airport (DXB) is a regional, but also a global leader 27.4% in international passenger traffic. The airport held the first place in the world 25.5% between March 2014 and March 2015, as reported by ACI. 18.3% . UAE, Saudi Arabia, and Qatar are also home to 9 out of the 10 fastest 16.0% growing airports in the Middle East between 2010 and 2014. Enfidha (NBE), Tunisia Alexandria (HBE), Egypt Rabat (RBA), Morocco . However, the steepest growth in capacity in 2014 vs. 2010 in MENA is Benghazi (BEN), Libya Djerba (DJE), Tunisia Oran (ORN), Algeria registered outside of the Middle East. The Enfidha Airport in Tunisia that has Constantine (CZL), Algeria Algiers (ALG), Algeria Hurghada (HRG), Egypt seen a major 791.4 % increase.. Tunis (TUN), Tunisia

Source: www.routesonline.com, OAG, CAPA, ACI Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 12 - MENA Region: Quality of Railroad Infrastructure

Quality of Railroad Infrastructure 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

MENA Average* 2.9 2.7 2.7 3.0 3.0 . Railroad infrastructure is considered to be unsatisfyingly Global Average 3.2 3.1 3.1 3.2 3.3 developed both on the global and the regional level. Overall, MENA average between 2009 and 2014 is Algeria 2.7 2.6 2.0 2.3 2.7 slightly below the global one for the same period. Bahrain n/appl. n/appl. n/appl. n/appl. n/appl. . Many of the countries in the region do not have operating Egypt 3.4 3.2 3.1 2.7 2.4 railroads, and are currently constructing them. As of June 2015, some of the major MENA railroad infrastructure Iran 3.2 3.2 3.4 3.5 3.4 projects are being executed in UAE, Bahrain, Saudi Iraq n/a n/a n/a n/a n/a Arabia, Oman, Qatar, and Kuwait . Jordan 1.6 1.5 1.9 2.0 2.2 Kuwait n/appl. n/appl. n/appl. n/appl. n/appl. Lebanon 1.0 1.0 1.0 n/a n/a Libya n/appl. n/appl. n/appl. n/appl. n/appl. Morocco 3.7 3.6 3.9 3.9 3.9 Note: Information on Quality of Railroad Infrastructure is Oman n/appl. n/appl. n/appl. n/appl. n/appl. provided by World Economic Forum’s Executive Opinion Qatar n/appl. n/appl. n/appl. n/appl. n/appl. Survey. This is an index that measures business executives' perception of their country's railroad infrastructure quality. Saudi Arabia 3.6 4.0 3.7 3.4 3.1 The data for the latest year are combined with the data for the Syria n/a n/a n/a n/a n/a previous year to create a two-year moving average. Tunisia 4.2 n/a n/a 3.4 3.3 Scores range from 1 (railroad infrastructure considered United Arab extremely underdeveloped) to 7 (railroad infrastructure n/appl. n/appl. n/appl. n/appl. n/appl. Emirates considered efficient by international standards) Yemen n/appl. n/appl. n/appl. n/appl. n/appl.

EMIS Insight, UNCTAD, - *MENA Average is calculated for the 17 countries under analysis and excludes economies, that might be part of Source: the region in other classifications. Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 13 - GCC Regional Railway Project

In March 2015, Rail Journal reported the following progress made by the countries that are part of the project: Kuwait’s Municipal Council approved the construction of the Kuwaiti section of the GCC rail network In January 2015. By the same time, consultants have been prequalified for the design work. Construction is expected to begin in 2016. A study will be completed in June 2015 for a railway causeway linking Dammam in Saudi Arabia with Participants’ Bahrain where two stations are planned. Progress In the first half of 2015, Qatar should receive bids to prequalify design and construction works for the The Gulf Council Countries - UAE, connection from Doha to the Saudi border. Notably, Qatari Government has asked for re-alignment of Bahrain, Saudi Arabia, Oman, Qatar, the route to avoid a military base. and Kuwait – have engaged in a Oman is expected to award civil works contracts for its initial 207 km phase by the end of the 2015. regional railway project that will begin Etihad Rail has already completed its 120 km coastal section in the United Arab Emirates. The second at Kuwait and run to Muscat in Oman phase of works, when the remaining 564 km of the GCC will be built, is in tendering stage. via Saudi Arabia, Bahrain, Qatar and Saudi Arabia is responsible for two projects and 663 km of the total network, including the Ras Al Khair UAE. With expected cost of USD 15 to Jubail section which is currently under construction. The plan is to extend this line north to Al Khafji bn, the project should be completed and Kuwait, and south to Damman. by 2018 and foresees the construction of 2,117 km rail track. It is allocated to portions of 663 km in Saudi Arabia, 684 km in the UAE, 306 km in Oman, 283 km in Qatar, 145 km in Kuwait, and 36 km in Bahrain. The project might not be finished in time as there are numerous challenges in front of the participating The newly built network should boost countries. investments in the region by providing For instance, the majority of them are not experienced in railway construction. Saudi Arabia is the only improved links to industrial areas, Gulf Council member with pre-existing railway infrastructure. better access to materials, and facilitated movement of citizens and Additionally, the GCC regional project accounts for the smaller portion of USD 15bn out of a total Challenges residents. investment of USD 200bn in individual GCC railway projects. As a consequence, there will be high regional demand for construction equipment, skilled workers, project managers, and engineers and it will be difficult to allocate the limited capital and human resources among all six countries. Given the projected increase of demand, prices for materials like steel rails, cement and cabling are set to rise as well which will probably increase project cost.

Road Infrastructure

In the 2013-2014 World Economic Forum’s Executive Opinion Survey, Qatar ranked 34th out of 144 economies in terms of road infrastructure quality, meaning that the country offers well developed road network with high-quality facilities. The subsector accounts for the greatest share of the overall transport infrastructure in Qatar and is expected to grow by 10.8% y-o-y on average over the 2013-2018 period. In 2013, the country had a road network of 9,592 km and the second highest road density in the MENA region at 0.83 km/sq.km of land area. The country has constructed 602 km of roads in 2013 and continues to invest heavily in road works. In preparation for the World 2022 Soccer Cup, Qatar is currently executing road projects amounting to USD 16.4bn with focus on highway carriages of which around 350 km are to be built by 2017. The Expressway Programme aims to increase the weight of primary roads in the total road network distribution as they accounted for mere 10.6% in 2013.

Port Infrastructure

Thanks to its advanced port facilities, the country has registered the third highest score in MENA, just after UAE and Bahrain. Over the 2013-2018 horizon, port infrastructure industry in Qatar is expected to grow by 10.1% on average, contributing about 21.2% to the overall transport infrastructure industry. Port infrastructure includes 4 main ports – Doha, Mesaieed, Halul, and Ras Laffan. The new port south of Doha should be operational in 2016, providing increased general cargo, grains, vehicles, and livestock port capacity. BMI Research projects a 36% growth of tonnage throughput and a 16% growth of container throughput at Doha port in 2015. In the mid-term, tonnage throughput is expected to increase and container throughput is to grow by 96% (including operations at the New Doha Port from 2016 onwards). Some of the major factors that will fuel throughput increase are the expected provision of heavy materials to support Qatari infrastructure mega projects and the increased participation of the country in the regional trade among Middle East economies. In the 2013-2014 World Economic Forum’s Executive Opinion Survey, Qatar ranked 24th out of 144 economies in terms of port infrastructure quality.

Air Transport Infrastructure

Although it has only one international airport – Doha Hamad International Airport – the country is among the top performers in the world and certainly in MENA, ranking second after UAE. According to CAPA, in May 2014, Doha Hamad International Airport was the 4th largest in MENA in terms of seat capacity as it offered almost 245 thou seats. It was the fifth fastest growing airport in the Middle East between 2010 and 2014, increasing its capacity by about 60% (OAG data). Given the sheer scale of airport infrastructure projects, the subsector will account for some 22.5% of the transport infrastructure industry over the 2013-2018 period. However, BMI Research experts project a 7.5% real decline on the year in air transport infrastructure in 2015, since the year will not see any significant airport development works. In 2016-2018, an average 8.5% annual increase is anticipated as the Doha Hamad International Airport is set to expand its current capacity of 30 million to 50 million annual passengers per annum. In the 2013-2014 World Economic Forum’s Executive Opinion Survey, Qatar ranked12th out of 144 economies in terms of air transport infrastructure quality.

Selected Economic Indicators

2009 2010 2011 2012 2013 2014

GDP, constant prices 2005 (USD bn) 87 102 115 122 130 137.9e*

GDP, constant prices 2004 (QAR bn) 243 284 321 341 362 384

GDP, current prices (USD bn) 98 125 170 190 203 211.7e*

GDP, current prices (QAR bn) 356 455 618 693 740 771

GDP Growth Rate (%) 12.0 16.7 13.0 6.0 6.3 6.2e*

Foreign Direct Investment, net inflows (USD bn, current) 8.1 4.7 (0.1) 0.3 (0.8) n/a

Consumer Price Index (%) (4.9) (2.4) 1.9 1.9 3.1 3.0

Comments

The Qatari economy grew at the impressive CAGR of 9.7% over the 2009-2014 period. BMI Research experts maintain a positive forecast for 2015 with a real GDP y-o-y growth at 6.6%. Growth is mainly attributed to investment spending, especially in transport projects, expansionary fiscal stance, and population growth, as explained by Qatari ministry of development planning and statistics. Naturally, continuously falling oil prices are a key risk to the economic outlook of Qatar, the country being a major oil and gas exporter. However, the ministry considers state finances as a sufficiently strong to shield the wider economy in 2015 with a fiscal surplus of 8.7% of GDP. According to BMI Research, Inflation rate is expected to rise at 3.8% y-o-y in 2015.

Source: CEIC, World Bank, Ministry of Development Planning and Statistics – Qatar, IMF, Reuters, - * BMI estimates Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 17 - Qatar: Transport Infrastructure Indicators

Transport Infrastructure Indicators 2013 2014e 2015f 2016f 2017f 2018f Transport Infrastructure Industry Value, USD bn 2.17 2.45 2.72 3.12 3.57 4.05 Transport Infrastructure Industry Value Real Growth, % y-o-y 9.00 9.40 6.30 10.20 10.20 8.70 Roads and Bridges Infrastructure Industry Value, % of transport infrastructure 52.40 53.80 55.80 56.50 57.10 57.00 Roads and Bridges Infrastructure Industry Value, USD bn 1.14 1.32 1.52 1.76 2.04 2.31 Roads and Bridges Infrastructure Industry Value Real Growth, % y-o-y 9.90 12.40 10.50 11.50 11.50 8.50 Ports, Harbours and Waterways Infrastructure Industry Value, % of transport infrastructure 20.20 20.80 21.80 21.60 21.30 21.20 Ports, Harbours and Waterways Infrastructure Industry Value, USD bn 0.44 0.51 0.59 0.67 0.76 0.86 Ports, Harbours and Waterways Infrastructure Industry Value Real Growth, % y-o-y 9.90 12.90 11.50 9.50 8.50 8.10 Airports Infrastructure Industry Value, % of transport infrastructure 26.50 24.50 21.40 20.90 20.60 20.80 Airports Infrastructure Industry Value, USD bn 0.57 0.60 0.58 0.65 0.74 0.84 Airports Infrastructure Industry Value Real Growth, % y-o-y 6.90 0.90 -7.50 7.50 8.50 9.50 Railways Infrastructure Industry Value, % of transport infrastructure 0.90 0.90 1.00 1.00 1.00 1.10 Railways Infrastructure Industry Value, USD bn 0.02 0.02 0.03 0.03 0.04 0.04 Railways Infrastructure Industry Value Real Growth, % y-o-y 1.90 10.40 10.50 11.50 12.50 15.50

Comments Qatar has entered a phase of massive spending on transport infrastructure. Government investments in the sector aim to diversify the oil-dominated Qatari economy, to improve Qatar’s connection to global trade networks, and to prepare the country for the upcoming 2022 FIFA World Cup. BMI Research experts thus project an average transport infrastructure real y-o-y growth of 8.9% over the 2015-2018 period. Among subsectors, roads and bridges construction has the highest share in total transport infrastructure at an average of 55.4% between 2013 and 2018. Airport infrastructure ranks second as it is expected to hold average share of 22.5%, closely followed by ports, harbours and waterways with 21.2% average contribution to the overall transport infrastructure. Railways construction is the smallest subsector, accounting for 1% of the transport infrastructure industry over the 2013-2018 horizon. However, being significantly underdeveloped, this sector is expected to grow the fastest as Qatar plans 350 km railroads expansion between 2015 and 2030. Hence, BMI Research experts foresee railways infrastructure average annual growth of some 10.4% over the 2013-2018 period.

Real Growth of Transport Infrastructure Subsectors

12.9% 15.5% 11.5% 12.4% 11.5% 12.5% 9.9% 11.5% 11.5% 10.4% 9.5% 9.9% 10.5% 9.5% 8.5% 8.5% 6.9% 10.5% 7.5% 8.5% 8.1% 1.9% 0.9% 2013 2014e 2015f 2016f 2017f 2018f

-7.5% Roads&bridges infrastructure real growth, % y-o-y Ports, harbours and waterways infrastructure real growth, % y-o-y Airports infrastructure real growth, % y-o-y Railways infrastructure real growth, % y-o-y

Subsector Value, USD bn

4.05 0.04 2.17 2.45 2.72 3.11 3.58 Railways 0.04 0.84 0.03 0.74 Airports 0.03 0.65 0.86 0.02 0.58 0.76 0.02 0.60 0.67 Ports, Harbours and 0.57 0.59 0.51 Waterways 0.44 2.04 2.31 Roads and bridges 1.52 1.76 1.14 1.32 Total 2013 2014e 2015f 2016f 2017f 2018f

Quality of Road Infrastructure* Quality of Port Infrastructure*

5.4 5.4 5.4 5.2 5.2 5.1 5.0 5.0 5.0 4.9

4.6 4.6 4.5 4.5 4.5 4.5 4.4 4.3 4.3 4.3 4.2 4.3 4.3 4.2 4.1 4.0 4.0 4.0 4.0 4.0

2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 Global average MENA average Qatar Global average MENA average Qatar

Quality of Air Transport Infrastructure* Quality of Overall Infrastructure*

5.6 5.5 5.4 5.4 5.4 5.4 5.4 5.2 5.2 5.1 5.1 5.0 4.9 4.7 4.7 4.7 4.7 4.7 4.6 4.5 4.4 4.4 4.4 4.4 4.3 4.3 4.3 4.3 4.2

2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 Global average MENA average Qatar Global average MENA average Qatar

Source: WEF, - * The indices range from 1 to 7, with a higher score representing better performance. Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 20 - Qatar: Road Infrastructure

Road Network (km) and Road Density (km/sq.km of land area)

0.86 0.85

0.79 0.77 0.83

9,966

9,830

9,592

9,125 8,980

2009 2010 2011 2012 2013

Road length Road density

Road Network by Type of Road, 2013

Local Roads 67.4%

Third-class Roads 11.9% Primary Roads Secondary 10.6% Roads 10.1%

Source: Ministry of Development Planning and Statistics, Qatar Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 21 - Qatar: Port Infrastructure

Ports in Qatar UN/ Port Name Location Overview Maximum size LOCODE Doha Port QADOH The central eastern coast Port handles general cargo, Ro-Ro, passengers and containers. Port is operated and managed by Channel: LOA 215 m., depth 10.55 m. of Qatar, in the south of Qatar Navigation QSC (Milaha). Containers: LOA 200 m., draft 9.5 m. the Gulf. Passengers: LOA 200 m., draft 8.3 m. Ro-Ro: LOA 200 m., draft 9.5 m. Bulk: Depth 10.0 m Mesaieed Port QAUMS The eastern coast of Multipurpose port, handles oil, LPG, petrochemicals, fertiliser, bulk and general cargo. The port is Dry Cargo: LOA 240 m., depth 15.0 m. Qatar, approx. 20 nautical managed and administered by Qatar Petroleum, although a number of other private companies Containers: 40,000 d.w.t., LOA 185 m., miles south of Doha. operate terminals in the port. depth 12.0 m. Bulk: 133,000 d.w.t., LOA 270 m., beam 40.0 m., depth 15.0 m.Tankers: 320,000 d.w.t., LOA 340 m., beam 60.0 m., depth 19.5 m.Chemicals: 60,000 d.w.t., LOA 235 m., depth 13.0 m.Gas: LOA 290 m., depth 12.8 m. Halul Port QAHAL The port is situated on The Terminal serves as export terminal for Qatari marine crude oil, which is produced from the Crude: 550,000 d.w.t., draft 29.0 m. the Halul island which is offshore oilfields area. It disposes of 2 crude oil loading points - both are single buoy moorings. The 52 nautical miles north- port is managed and operated by Qatar Petroleum. east of Doha. Ras Laffan Port QARLF On the north-eastern Purpose-built port, designed as an export facility for LNG, LPG, condensate, GTL products, pygas, Dry Cargo: Displacement 60,000 tonnes, LOA coast of Qatar, 40 refinery products and sulphur derived from the processing of gas. Ras Laffan port disposes of an 180 m., draft 12.5 m. Bulk: 60,000 d.w.t., LOA nautical miles north of offshore terminal situated in Qatari national waters at 25 nautical miles east of the port entrance and 180 m., draft 12.5 m. Tankers: Displacement Doha. disposing of 2 single-point moorings. QARLF is operated by Qatar Petroleum. 320,000 tonnes, LOA 335 m., draft 22.0 m. Products: Displacement 152,000 tonnes, LOA 335 m., draft 12.5 m. Gas: Displacement 185,000 tonnes, LOA 345 m., draft 12.5 m.

Al Shaheen Terminal QAASN In Qatari national waters, The terminal consists of Floating Storage and Offloading (FSO) units moored to Single Point Moorings Crude: No limit approx. 80 nautical miles (SPMs). The FSOs are equipped for crude oil transfer to export vessels in tandem or ship-to-ship nort-northeast of Doha. (STS) operation concurrently with crude oil import and decanted/produced water export.

Al Rayaan Terminal QARYN In Qatari national waters, The terminal consists of the storage tanker (FSO) ``Falcon Spirit'', which is moored to a Single Point Tankers: 320,000 d.w.t., draft 21.0 m. approx. 35 nautical miles Mooring (SPM). Routinely, export tankers berth at the storage tanker in tandem mode. The storage off the northern coast of tanker receives Al Rayyan crude oil through a pipeline from a jack-up production facility, located Qatar. approx. 2 n.m. to the south-southwest.

Vessel Movement at Qatari Ports, 2014 Container Port Traffic, TEU (20 foot equivalent units)

4.7% 7.5% 7.5% 7.9%

5.7% 5,650 -1.8% -4.5%

-6.2% -6.9%

424,210

410,000

393,151

365,722

346,000

2,228

1,878 111

1,433 -15.6% Doha Port Mesaieed Port Halul Port Ras Laffan Total 2009 2010 2011 2012 2013 Port Container port traffic, TEUs YoY change No of vessels YoY change

Vessels’ Net Tonnage by Port, 2014 Comments

29.7%

. In 2014 the vessel throughput at Qatari ports totalled 5,650 units, 14.9% 13.8% registering a 4.5% y-o-y decrease. However, annual net tonnage 10.8% 6.0% throughput has increased significantly by 13.8% y-o-y.

. In 2014, Ras Laffan remained the busiest Qatari port in terms of 155,076

number and net tonnage of vessels because it accommodates the

30,171

101,722 11,003 12,180 export of natural gas – a key activity that dominates the shipping sector in the country. Doha Port Mesaieed Port Halul Port Ras Laffan Total Port

Net Tonnage, thou tonnes YoY change

Source: CEIC, World Bank, Ministry of Development Planning and Statistics, Qatar Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 23 - Qatar: Air Transportation Infrastructure

Airports in Qatar

IATA Airport Annual Airport Name Near city Terminals and other facilities Runway ID and length Code Throughput*

Doha Hamad International Airport DOH Doha Airport's passenger terminal covers 600,000 sq. Eastern runway: 4.85 km. long In 2013: 23.4 mn passengers, m. It offers 25,000 sq.m. of retail space and Western runway: 4.25 km. long 865,669 tonnes of cargo & 15,000 sq.m. dedicated to food&beverages. 168,762 flights. There are 138 check-in counters.

Doha Hamad International Airport Throughput

26,702

23,389

18,305

15,859

866

845

812

699

168

156

137

118

n/a n/a

2010 2011 2012 2013 2014

Passenger traffic, thou people Cargo&mail traffic, thou tonnes Aircraft movement, thou units

Source: Ministry of Development Planning and Statistics – Qatar, Airport Data, - * Passenger throughput includes arrivals and departures and excludes transit passengers. Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 24 - Qatar: Investment Climate

FDI regime is primarily regulated by Investment Law No. 13/2000. It generally limits foreign investments to 49% of the capital for most business activities, with a Qatari partner(s) holding at least 51%. Gulf Cooperation Council nationals are treated as Qatari citizens in the ownership of companies listed on Qatar Exchange. However, the law allows, upon obtaining special government approval, up to 100% ownership by foreign investors in certain sectors, including: agriculture, industry, health, education, tourism, development and exploitation of natural resources, energy, mining, banking, insurance, business consultancy & technical services, information & communication services, cultural services, sports services, entertainment services, and distribution services. Meanwhile, certain sectors are not open for domestic or foreign competition, including public FDI transportation, electricity and water, steel, cement, and fuel distribution and marketing. In these sectors, a single semi-public company has complete Regime or predominant market control. A majority foreign stake in a project could be obtained only if the project fits into the country's development plans. In addition, preference is given to projects that use raw materials available in the local market, manufacture products for export, produce a new product or use advanced technology, facilitate the transfer of technology and know-how to the Qataris, and promotes the development of national human resources. In bids for government procurement the country treats preferentially suppliers that use local content. As a rule, participation in tenders with a value of QAR 1 mn or less is confined to local contractors registered by the Qatar Chamber of Commerce, and tenders with a value of more than this amount do not require any local commercial registration to participate, but in practice certain exceptions exist.

The establishment of all private business entities in Qatar is regulated by the Commercial Companies Law, Law No. 5/2002. Law No.15/1990 prohibits that foreign investors engage in a joint stock company with Qatari partners. As a consequence, joint ventures involving foreign partners are usually established as limited liability partnerships. Foreign partners in ventures organised as limited liability partnerships must Right to pay the full amount of their contribution to capital in cash, or in kind, prior to the start of operations. Usually, such firms are required to set aside 10 Private percent of profits each year in a statutory reserve until it equals 50 percent of the venture's authorised capital. This requirement is the only legal Ownership restriction to a foreign company desiring to repatriate all of its annual profit after tax deduction. Since August 2014 foreign investors can hold up to a combined total of 49% of the shares of Qatari companies listed on the Qatari Exchange. and Upon government approval, non-Qataris may have the right of land use over real estate for a renewable term of 99 years. Establishment Depending on the case, foreign investors might be offered incentives that include natural gas priced at 60-75 USD cents per MBTU (Million British Thermal Units); electricity offered at less than 2 U.S. cents per KWH; Industrial land offered at 27 U.S. cents per sq.m. per year for a period of 50 years, including options for renewing the lease; exemption from customs duties on imports of machinery, equipment and spare parts; exemption on export duties; exemption from corporate taxes for up to 10 years and from income taxes; low cost financing through Qatar Development Bank (QDB); and flexible immigration and employment rules to enable the import of foreign labour.

Since 2010, all non-Qatari companies and foreign partners in Qatari companies are subject to a 10% (corporate) flat rate. The only exception is in the energy sector where there is a 35% tax rate on all oil and gas operations, unless exempted by Emiri Decree. Qatari nationals do not pay any kind of Tax Rates corporate or income tax, except the “zakat” that amounts to around 2.5 percent of profits. Under Law No. 13/2000, the Ministry of Finance may grant a tax holiday of up to 10 years for new foreign investments in key sectors. Other and .exemptions may be granted under Law No. 21/2009 on a case-by-case basis for a period up to 6 years. Access to There is no restriction on the flow of capital. Loans are allocated on market terms, and the US Department of State reports that foreign companies are Credit essentially treated the same as the local ones. Almost all import transactions are controlled by standard letters of credit processed by local banks and their correspondent banks in the exporting countries. Credit facilities are provided to local and foreign investors within the framework of standard international banking practices. Foreign investors are usually required to have a guarantee from their local sponsor/local equity partner.

Being a signatory to the 1958 New York Convention and a member of the International Center for the Settlement of Investment Disputes (ICSID), Qatar accepts binding international arbitration in case of investment disputes. Dispute Qatari legal establishments that facilitate dispute settlement feature the Alternative Dispute Resolution (ADR) Centre that is primarily concerned with Settlement commercial matters arising from within the Qatar Financial Centre (QFC), as well as the International Court and Dispute Resolution Centre. There is no set duration for dispute resolution and the time to obtain a resolution depends on the case. The Qatar International Court and Dispute Resolution Centre publishes past judgments on its website, which may be used as a reference: http://www.qfccourt.com/Judgement.html.

Qatar's labor force consists primarily of expatriate workers. As of February 2015 non-Qatari residents are estimated to be around 89% of the population in the country, making up for one of the world’s highest ratios of migrant workers to population. The largest group of foreign workers comes from the Indian sub-continent. All expatriate labour must have a Qatari sponsor. Therefore, foreign investors should start discussing labour visa issues with their sponsors/local Labour agents/partners in the early stages of contract negotiation. In order to bring an expatriate employee into the country, sponsors must submit a request Conditions to the Ministry of Labor. It controls the number of workers that may come to Qatar through a quota system. The country has labor agreements with some countries that stipulate a minimum wage for certain types of work, but in general minimum wage is not regulated by the government.Since 2004 Qatari citizens have the right to form workers' committees in private enterprises with more than 100 Qatari citizen workers. Non-citizens are not eligible to form worker committees. Workers in the government sector, regardless of their nationality, are not allowed to join unions.Under the labor law, workers are granted the right to bargain collectively and to sign joint agreements. However, collective bargaining is not freely practiced, and the US Department of State reports that there are no workers employed under collective bargaining contracts. Source: US Department of State, May 2015 Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 26 - Qatar: Government Infrastructure Projects

Massive The development of the transport infrastructure sector is a strategic priority for Qatar. The country has entered a phase of massive Spending spending on transport projects. Business media MEED experts expect more than USD 35.8bn worth of transport project contracts to be awarded in 2015-2017 as Qatar builds the infrastructure it needs to deliver for the 2022 FIFA World Cup and beyond. Currently, on Qatar is executing major projects in all transport subsectors. One of the most important developments is the New Port near Doha since Transport it will serve as a major facility to accommodate the import of heavy materials that are necessary for the other mega infrastructure Infrastructure projects and cannot be transported via road or air. Projects

Qatar's Public Works Authority (Ashghal) has initiated an extensive Expressway Programme that consist of 10 projects in progress as of May 2015 at a total cost of approximately USD 10.25 bn. As of January 2015, the approximately USD 12 bn Sharq road project, Road consisting of 12 km. series of tunnels and bridges connecting HIA, Katara Cultural Village and the Dafna/West Bay business district of Infrastructure Doha, whose construction was supposed to start in 2015, has been postponed. Some of the major road developments under construction are presented in the Appendix of the present report.

As of May 2015, contracts worth USD 5.2bn have been awarded for the construction of a new port south of Doha. The project is expected to be completed in 2016 and is estimated to cost USD 7.4bn. It will consist of 26 sq km port site with per annum capacity of 1.7 mn tonnes of general cargo, 1 mn tonnes of grains, 500 000 vehicles, and 37 500 tonnes of livestock. The port basin will be Port approximately 3.8 km long, 700 m wide and 17 m deep. In addition, a new base for the Qatar Emiri Naval Forces (QENF) will be built offshore of the new port to provide technical and logistic support. The Qatar Economic Zone 3 (QEZ3) will also be located adjacent to Infrastructure the port. As of May 2015, the port site is 67% completed, while the QENF base is 17% ready and the QEZ3 is 62% finished. A major contract award by Q2 2015 will be for the construction of 225 buildings in the naval base. The contract for the construction of security facilities to serve the naval base is also expected. Qatari Government has stipulated that at least 50% of the work on the new port project should be awarded to domestic contractors.

MEED, Systra Group, New Port Project, Oxford Business Group, Ashghal, Doha News, J&P Group, Construction Week Online, Technical Review Middle Source: East Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 27 - Qatar: Government Infrastructure Projects (cont’d)

In 2014, Qatar completed its USD 15bn Hamad International Airport with a total area of 29 sq km. The new airport replaces Doha International Airport and thus becomes the only Qatari international airport. The passenger terminal is Air spread over an internal area of 600,000 square meters and has three concourses and 33 contact gates with capacity of 30 Transport million annual passengers. Foster + Partners is finalising design plans to expand the passenger terminal. The extension Infrastructure will increase the size of the passenger terminal to approximately 900,000 sq m and will add 24 plane gates. Upon completion of the extension project, HIA will have annual capacity of 50 million passengers, 2 million tonnes of cargo and 320,000 aircraft landings and take-offs. Bids for the project will be invited once the design is finalised.

The future passenger and freight railway network will connect key Qatari sites like Doha, Mesaieed Port, Ras Laffan, Dukhan, and Al Shamal and will also contribute to the regional GCC network through its connections to Saudi Arabia and Bahrain. The USD 28.8bn network will extend to 350 km at a speed of about 220-270 km/h for passenger trains and 120 km/h for freight trains. It will be built in Railway four phases between 2015 and 2030. Phase 1 foresees the construction of approximately 143 km of operational railway track with 34 Infrastructure turnouts (main tracks), one station, three freight yards, one intermodal yard, 59 bridges and 36 culverts (a tunnel for a road or drain going under a road or railroad). In February 2015, Qatar Rail launched a new prequalification process for the civil works on the first phase. Upon completion, the network will consist of five lines - freight line from Mesaieed Port to Ras Laffan, mixed line (passenger and freight) from Doha to Dukhan, mixed line from Doha to Al Shamal, mixed line from Doha to Saudi Arabia, and high speed passenger line from Doha to Bahrain.

The construction of the Doha Metro is an extensive project that is expected to be completed in 2026 at an estimated cost of USD 36 bn. Running underground as well as at elevated and at-grade levels, it will consist of four lines – Red (Coast) Line, Green (Education) Public Line, Gold (Historic) Line, and Blue (City) Line. Upon completion, the metro network will span approximately 230 km and will include Transport 107 stations. During the first phase 37 stations will be constructed and over 86.5 km of track will be laid by 2019. In the second phase Infrastructure (2020 – 2026), 70 stations and some 146 km of track will be added to the network. In addition, a light rail network will be built to connect Lusail City in the northern outskirts of Doha to the capital city. The EUR 2.5bn network will have a length of 34 km and will have 4 lines and 38 stations at at-grade and underground levels. The first line should be operational by 2018, while the remaining three lines are to be completed by 2020

Source: Airport Technology, HIA, BMI Research, Qatar Rail, Railway Technology, Railway Gazette, Gulf Business Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 28 - Qatar: Biggest Infrastructure Projects

Infrastructure Projects in Top 10 Biggest Projects, Q1 2015

Project Client Contract Award Year Expected Value, Completion USD mn

Qatar Integrated Rail Project: Doha Metro: Systems, Rolling Stock and Track Work Qatar Rail 4,129 2015 2017 Qatar Integrated Rail Project: Doha Metro: Gold Line: Tunneling Works Qatar Rail 3,300 2014 2018 Qatar Integrated Rail Project: LRT: Lusail Light Rail: Phase 2 Qatar Rail 2,722 2014 2018 Qatar Integrated Rail Project: Doha Metro: Green Line: Tunneling & Main Stations Works Qatar Rail 2,520 2013 2018 Qatar Integrated Rail Project: Doha Metro: Red Line North: Tunneling Works Qatar Rail 2,184 2013 2017 Expressway Programme: New Orbital Highway & Truck Route: Contract 3 Qatar Public Works Authority 1,691 2014 2017 Qatar Integrated Rail Project: Doha Metro: Red Line South: Tunneling Works Qatar Rail 1,500 2013 2018

Distribution of Top 10 Biggest Projects by Value Number and Industries of Top 10 Biggest Projects

Other industries 24.2%

Transportation 1 1 1 75.8% Transportation Construction Power Gas

Number of projects

Road Infrastructure In the 2013-2014 World Economic Forum’s Executive Opinion Survey, Saudi Arabia ranked 26th out of 144 economies in terms of road infrastructure quality. In 2014 Saudi Government announced plans to build USD 2.7 bn roads in Asir, Jazan, and Makkah regions. Besides those, road construction projects with total value of about USD 1.7 bn are underway at different stages of execution, as of June 2015. In 2013 Saudi Arabia had a road network of 202,246 km of which 61,376 km are paved. The country harsh climate and terrain pose serious obstacles to road construction. Despite the remarkable 3,064 km of road that were constructed in 2013, Saudi Arabia still had one of the lowest road densities in the MENA region at 0.09 km/sq.km of land area. In 2013, Riyadh, Madinah, Asir, and Qaseem were the regions with highest weight of new rural road developments and also with the densest network in general.

Port Infrastructure The main ports in the country are Jeddah Port, Jubail Industrial, Yanbu Industrial, and Dammam. They account for about 93% of total cargo throughput over the 2010-2014 period. There is a positive outlook in terms of port infrastructure as Saudi government has earmarked around USD 30 bn to expand the Red Sea Gateway Terminal at Jeddah Port, the seaport at King Abdullah Economic City, and the Dareen Port. In the 2013-2014 World Economic Forum’s Executive Opinion Survey, Saudi Arabia ranked 40th out of 144 economies in terms of port infrastructure quality.

Air Transport Infrastructure

This rather low ranking is attributed despite the extremely vast network of airports in the country, consisting of 4 international and 23 regional/domestic facilities. In May 2014, three out of the four international Saudi airports have found their place in the top 10 biggest MENA airports by seat capacity – Riyadh King Khalid Intl Airport, Jeddah King Abdulaziz Intl Airport, and Dammam King Fahd Intl Airport. Over the 2010-2014 period, Madinah airport has increased its capacity by 156%, Abha – by 119%, Jeddah – by 56%, Dammam – by 41%, and Riyadh – by 27%. They all have found place in top 10 fastest growing airports in the Middle East. Investments in increased airport capacity that are outlined in the government policy section of the current report set continuous positive outlook for the Saudi air infrastructure sector. In the 2013-2014 World Economic Forum’s Executive Opinion Survey, Saudi Arabia ranked 41st out of 144 economies in terms of air transport infrastructure quality. Railway Infrastructure Saudi Arabia is among the few countries in MENA that has operating railway system as at 2014. In the 2013-2014 World Economic Forum’s Executive Opinion Survey, the country ranked 50th out of 144 economies in terms of railway transport infrastructure quality. Currently, Saudi railway network consists of approximately 1,380 km of which 449 km are a passenger line, 556 km are a cargo line connecting King Abdulaziz Port to Riyadh, and 373 km are branch lines that connect industrial, agricultural and military sites. The railway infrastructure will develop at a huge pace in the years to come as Saudi Government has adopted an enormous USD 97 bn plan to expand its national railway network to 9,900 km by 2040.

Selected Economic Indicators

2009 2010 2011 2012 2013 2014 GDP, constant prices 2005 (USD bn) 405.8 436.0 473.4 500.9 520.7 543.04e* GDP, constant prices 2010 (SAR bn) n/a 1,976 2,172 2,289 2,350 2,432 GDP, current prices (USD bn) 429.1 526.8 669.5 734.0 748.5 751.6e* GDP, current prices (SAR bn) 1,609 1,976 2,511 2,752 2,791 2,798 Real GDP Growth Rate (%) 1.8 7.4 8.6 5.8 4.0 4.3e* Foreign Direct Investment, net inflows (USD bn, current) 36.5 29.2 16.3 12.2 9.3 n/a Consumer Price Index (%) 5.1 5.3 5.8 2.9 3.5 2.7 Saudi Budget on Infrastructure Development (SAR bn) 7.8 8.4 8.9 10.5 11.7 n/a

Comments

The Saudi economy grew at the considerable CAGR of 6.0% over the 2009-2043 period. BMI Research experts project favorable 3.7% y-o-y growth in 2015, despite the drop of oil prices. BMI Research claims that economic advancement will be driven by strong fiscal stimulus and high oil production but expects their effect to lessen from 2016 onwards. Moderate inflation is anticipated in 2015 at 3.2% y-o-y change of the consumer price index. However, in the mid-term it is possible that inflation rise following extended period of robust growth, coupled with loose fiscal and monetary policy. Impressively, over the 2009-2013 period, Saudi Government has allocated around USD 12.6 bn (or SAR 47.3 bn) on infrastructure development.

Source: CEIC, World Bank, Ministry of Economy and Planning – Saudi Arabia, Oxford Economics, BMI, - * BMI estimates, - ** Oxford Economics estimates Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 32 - Saudi Arabia: Quality of Infrastructure

Quality of Road Infrastructure* Quality of Port infrastructure*

5.4 6.0 5.3 5.8 5.8 5.2 5.5 5.1 5.0 5.3

4.6 4.5 4.5 4.4 4.6 4.3 4.5 4.5 4.3 4.3 4.2 4.3 4.3 4.2 4.1 4.0 4.0 4.0 4.0 4.0

2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 Global average MENA average Saudi Arabia Global average MENA average Saudi Arabia

Quality of Air Transport Infrastructure* Quality of Railway Infrastructure*

4.0 5.4 5.2 5.3 3.7 5.1 5.1 5.0 3.6 5.0 3.4 4.9 3.2 3.3 4.7 4.7 4.7 3.2 3.1 4.6 3.1 3.1 3.0 3.0 4.4 4.4 2.9 2.7 2.7

2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 Global average MENA average Saudi Arabia Global average MENA average Saudi Arabia

Road Network (km) and Road Density (km/sq.km of land area) Existing and Newly Constructed Roads, km.

202,246 Newly 199,182 3,064 195,974 construct 0.09 0.09 0.09 3,208 ed, km 0.09 0.09 193,037 2,937 187,559 5,479 Existing, 3,455 km 199,182 195,974 202,246 193,037 199,182 187,559 195,974 184,105 Total 193,037 road 187,559 length, km Road length Road density 2009 2010 2011 2012 2013

Rural and Main Paved Roads, km. Rural Roads Distribution by Region, 2013

202,246 195,974 199,182 Hail 8.9% 187,559 193,037 Makkah 12.5%

61,376 Main Tabouk 7.2% 54,974 58,036 59,143 60,336 paved roads, Madinah 13.1% Al Jawf 4.4% km Rural roads, Baha 4.2% km Jazan 3.5% 138,846 140,870 132,585 135,001 136,831 Najran 2.9% Total Qaseem 13.2% Eastern Province 2.7% road Northern Frontier 0.9% length, km Riyadh 10.9% Asir 15.5% 2009 2010 2011 2012 2013

Port Infrastructure

UN/ Port Name Location Overview Maximum size LOCODE Jeddah Islamic Port SAJED On the Red Sea coast of Jeddah Islamic Port is the principal Saudi port. It occupies 10.5 sq.km., with 58 deep water berths LOA 367 m., draft 15 m. Saudi Arabia having an overall length of 11.2 km. and a draft reaching 16 m., capable of accomodating the latest Dry Cargo: LOA 250 m., generation of large container vessels (with a capacity of 6500 TEUs).The port handles all types of draft 11.5 m. cargo and disposes of specialised equipment such as quay container gantry cranes, straddle carriers, Containers: Draft 15 m. rubber tired gantry cranes, yard cranes, reefer points to provide reefer containers with electricity, Ro-Ro: LOA 180 m., various types of forklifts, low and high trailer with different load capacities, bulk grain discharging draft 11 m. equipment, etc. A major port facility is the King Fahad Ship Repair Yard that consists of 2 floating Bulk: Draft 13.5 m. docks, capable of receiving vessels up to 45,000 tonnes, and two 170-meter long berths to receive Tankers: 100,000 d.w.t., LOA 250 m., vessels up to 60,000 tonnes. The port disposes of 2.1 sq. km. open storage area, 0.4 sq. km. covered draft 14 m. storage area (59 warehouses + transit sheds), grain silos, grain and rice mills and tanks to store edible oil.

King Abdul Aziz Port, SADMN Approximately mid-way This is a major Saudi port, acting as a gateway to the Eastern and Central Provinces of the country. It Dry Cargo: Depth 13 m. Dammam along the eastern coast of is well connected to the inland through highway system and railway to Riyadh Dry Port. Among the Containers: Depth 13.8 m. Saudi Arabia. major facilities are 39 berths, 18 warehouses, medical clinic, and fire department. The port also Ro-Ro: Depth 12.8 m. Bulk: Depth 13 m. disposes of 8 container gantry cranes, 15 new straddle carriers, 25 terminal tractors, 20 3-ton forklift trucks and 2 empty container handlers. It covers a total area of some 193 sq. km.

Dhiba Port SADHU On the west coast of Being a natural harbor protected on all three sides by hills, Dhiba Port is the nearest Saudi port to the Draft 10 m. Channel: Depth 11 m. Saudi Arabia, 25 km. Suez Canal and other Egyptian ports. It handles Ro-Ro, general cargo and livestock through its 3 northwest of Dhiba city berths and disposes of 6,000 sq. m. full covered storage area, 6,000 sq.m. top covered storage area, and 500 km. north of and 150,000 sq.m. uncovered storage area. Yanbu.

Dhiba Plant Terminal n/a On the west coast of This is a one berth multiproduct discharge facility that is connected to the shore by a causeway. Products: 50,000 d.w.t., LOA 200 m., Saudi Arabia, about 5 draft 12.8 m. km. southeast of the city of Dhiba and about 200 km. southwest of Tabuk.

Jizan Port SAGIZ On the southern Red Sea Jizan port is a deep water port that has road access to the hinterland container depots and thus is Dry Cargo: LOA 245 m., draft 11.5 m. Coast, 335 nautical miles able to serve the whole of the Arabian Peninsula's southeast. The port handles general cargo, south-southeast of foodstuffs, livestock, and cement clinker (bulk & bagged). It consists of 12 berths, 16,896 sq. m. of Jeddah. shed storage area, and 197,000 sq. m. of open storage area.

Source: www.findaport.com, Saudi Ports Authority, Al Arabiya, Saudi Aramco Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 35 - Saudi Arabia: Port Infrastructure (cont’d)

Port Infrastructure UN/ Port Name Location Overview Maximum size LOCODE Jizan Terminal n/a In the Red Sea, The bulk plant terminal comprises two CALM SBMs operated by Saudi Aramco. Products: D.w.t. 50,000 tonnes, LOA 220 m., southeast to the Jizan beam 35 m., draft 16.3 m. Port, approximately 335 nautical miles southeast of Jeddah and near the border with Yemen.

King Fahd Industrial Port SAJUB On the Gulf coast of The port consist of 19 opertional berths. It handles chemical fertilisers, iron ore, refined petroleum LOA 280 m., draft 13.3 m. (tidal). Jubail Saudi Arabia, approx. products, base lube oil products, ethylene, butadene, propylene, vynil chloride monomer, butene, Bulk: Draft 13.3 m. (tidal). 80 km. north of ammonia. Tankers: Displacement 360,000 tonnes, Dammam. draft 25 m.

Jubail Commercial Port SAJUB On the Gulf coast of The port covers area of approximately 4,1 sq. km. It consists of 8 berths for general cargo handling, 4 LOA 280 m., draft 13.3 m. (tidal). Saudi Arabia, approx. berths for bulk cargo handling, and 4 quays for container handling. In addition, there is 78,000 sq. m. Bulk: Draft 13.3 m. (tidal). 80 km. north of covered storage area , 1,800 sq. m. dangerous goods repository area, and 589 sq. m. internal storage Tankers: Displacement 360,000 tonnes, Dammam. yards in the customs area. The port is also equipped with mobile cranes (40-120 tonnes), forklifts (3- draft 25 m. 35 tonnes), locomotives and trailers, grabs with capacity of 6.3-20 cubic meters for handling bulk cargo, skips, excavators, street sweeping machines, etc.

King Fahd Industrial Port, SAYBI On the central western The port is among the largest ports for loading crude oil, its refined products, and petrochemicals in Containers: LOA 250 m., draft 12.6 m. Yanbu coast of Saudi Arabia, the Red Sea. It can handle all types and sizes of oil tankers and containers, general cargo, bulk cargo Ro-Ro: LOA 250 m., draft 12.6 m. 165 nautical miles north and Ro-Ro vessels. There are 23 berths, 40 points to supply reefer containers with power, an area of Bulk: 60,000 d.w.t., draft 14.0 m. of Jeddah and approx. 167,067 sq.m. for container storage, an area of 10,000 sq.m. for storage of general cargo, an area of Crude: 500,000 d.w.t., LOA 420 m., draft 29 m. 12 nautical miles 18,000 sq.m. covered by warehouses, and an area of 800 sq.m. for hazardous cargo. Chemicals: 80,000 d.w.t., LOA 260 m., southeast of Yanbu draft 14.2 m. Commercial Port. Gas: 280,000 d.w.t., LOA 299 m., draft 16 m.

Yanbu Commercial Port SAYNB On the central western Yanbu Commercial Port is the nearest major Saudi seaport to Europe and North America. It handles LOA 260 m., beam 55 m., draft 10.36 m. coast of Saudi Arabia, mainly the export of bulk cement and clinker, and the import of bulk-barley, bulk rutile, petcoke, and about 165 nautical miles project cargo. The port is thus suitable for handling various types of vessels including general cargo, north of Jeddah and ro – ro, passenger ships, bulk-cargo etc. It consists of 9 deep-water berths, covered storage space of approx. 12 nautical miles 61,950 sq.m. and open storage area of 529,400 sq.m. In addition, there are 2 silos each with a southeast of Yanbu storage capacity of 20,000 tonnes. Commercial Port.

Port Infrastructure UN/ Port Name Location Overview Maximum size LOCODE Rabigh SARAB On the west coast of A deep-water port protected by an offshore barrier reef running parallel to the coast. It serves mainly Dry Cargo: 21,200 d.w.t., LOA 152 m., draft 8.3 Saudi Arabia, about the Rabigh Refinery operated by Petro Rabigh, a joint venture of Aramco and Sumitomo Chemical. m. Ro-Ro: 13,740 d.w.t., LOA 150 m., draft 8.3 80 nautical miles north of The port consists of the Liquid Cargo Port, Pioneer Port, Dry Cargo Port and Dry Cargo Pier. m. Bulk: 15,000 d.w.t., LOA 155 m., draft 9.1 m. Jeddah. Tankers: 325,000 d.w.t., LOA 360 m., draft 23.5 m. Chemicals: 50,000 d.w.t., LOA 211 m., draft 12.63 m. Gas: 325,000 d.w.t., LOA 360 m., draft 23.5 m. Ras al Khafji SARAR On the northeast coast of The port consists of 2 CBM berths and two SBM berths for tankers. There are also barge facilities for Draft 20.1 m. Saudi Arabia, 17 km. handling dry cargo but these are rarely used. south of the Kuwait border.

Ras Tanura SARTA On a peninsula on the The port is a major oil operations center for Saudi Aramco. It consists of the Ras Tanura Terminal, Crude: Draft 21.0 m. Products: Draft 14. eastern cost of Saudi Juyamah Crude (SPM) Terminal, and Juyamah LPG Terminal. The Ras Tanura Terminal includes sea 1 m. (tidal). Arabia, about 32 nautical islands, and north and south piers with total of 12 berths. miles northwest of Bahrain

Juaymah Terminal SAJUT It is located 18 nautical The terminal handles the export of LPG to LPG carriers ranging from 25,000–200,000 d.w.t. No LNG LPG Terminal: Gas: 200,000 d.w.t., draft 23 m. miles northwest of Ras is handled. The terminal comprises one Single Point Mooring (SPM) berth. SPM berth: Crude: 750,000 d.w.t., draft 26 m., Tanura. depth 35 m.

Ras Al-Khair SARAZ On the eastern coast of The works on the port started in 2008 and it took 38 months for completion at a total cost of approx. General cargo: 70,000 d.w.t. Liquid cargo: 50,000 Saudi Arabia, 135 km. to 640 USD mn. It consists of 3 operational 785 meter-long and 15 meter deep berths; one 121 meter- d.w.t. the north of Jubail. long and 6-meter deep service berth; 700-meter diameter vessel turning basin; a 23-kilometer long, 16 meter deep and 170 meter broad approach channel and waves breaker; loading yards, 25 buildings among them buildings for the administration, customs, border guards, security and buildings as well as buildings for operation and maintenance services and warehouses. Work is in progress for building berths 5 and 6. The port serves more than 80 different industrial projects in the region.

Port Infrastructure

UN/ Port Name Location Overview Maximum size LOCODE Ras Al Mishab SARAM On the northeast coast This is a military port operated by the Ministry of Defence and Aviation. Draft 10.0 m. of Saudi Arabia, 28 nautical miles south of the Kuwait border.

Container Port Traffic, thou TEU (20 foot equivalent units) Port Throughput, thou tonnes 2010 2011 2012 2013 2014 Jeddah 49,165 52,027 62,723 60,384 55,652 King Abdulaziz, Dammam 23,596 25,873 27,364 29,027 31,275 Jubail, Industrial 46,386 44,700 45,872 44,634 58,857 Jubail, Commercial 4,357 4,709 6,787 9,107 10,224 Yanbu, Industrial 27,387 33,682 37,492 39,765 42,330 Yanbu, Commercial 1,583 1,612 2,492 3,225 3,057 Jazan 900 818 1,557 3,719 2,976 Dhiba 651 535 1,143 1,803 1,226 Ras Al Khair n/a 1,043 2,291 3,100 4,549 Total throughput 154,025 165,000 187,722 194,765 210,146

Source: CEIC, World Bank, www.findaport.com, Saudi Ports Authority, Al Arabiya, Saudi Aramco, Ports Data Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 38 - Saudi Arabia: Air Transport Infrastructure

International Airports

IATA Airport Annual Throughput*, Airport Name Near city Terminals and other facilities Runway ID and length Code 2013 International Airports

King Abdulaziz International Airport JED Jeddah The airport and its adjacent facilities cover a total 16C/34C: 3,299 x 60 meters 22.2 mn passengers area od 105 sq.km. There are 2 main passenger 16R/34L: 3,800 x 60 meters 467,181 tonnes of cargo terminals and a 465,000 sq.m. Hajj terminal that 16L/34R: 3,690 x 45 meters 187,446 flights is used only during the Hajj season.

King Khalid International Airport RUH Riyadh The airport and its adjacent facilities cover a total 15R/33L: 4,205 x 60 meters 18.5 mn passengers area of 315 sq. km. There are 4 passenger 15L/33R: 4,205 x 60 meters 448,831 tonnes of cargo terminals (only three of which are in use) with 161,314 flights eight gates and aero-bridges each. The triangular base of each terminal measures 47,500 sq. m.

King Fahd International Airport DMM Dammam The airport is among the largest in the world as it 16R/34L: 4,000 x 60 meters 7 mn passengers covers a total area of 776 sq. km. (of which about 16L/34R: 4,000 x 60 meters 121,655 tonnes of cargo 43 km. are utilised). The airport offers a 327,390 72,897 flights sq.m. six-level passenger terminal with 15 gates.

Prince Mohammad bin Abdulaziz MED Medina MED Airport serves the second holiest city in 17/35: 4,335 x 60 meters 4.4 mn passengers Airport Islam after Mecca. After construction works that 18/36: 3,060 x 45 meters 7,822 tonnes of cargo were completed in early 2015, the airport offers 41,110 flights 150,000 sq.m. terminal area, 64 check-in counters, 31 boarding bridges, extended runway, new taxiways, upgraded fueling and the lighting system, and a number of newly constructed ancillary buildings.

Source: Airports Data, General Authority of Civil Aviation – Saudi Arabia, Airport Technology, www.worldaerodata.com, - * Passenger throughput includes arrivals and departures and excludes transit passengers. Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 39 - Saudi Arabia: Air Transport Infrastructure (cont’d)

Domestic Airports Domestic Airports IATA Airport Annual IATA Airport Annual Airport Name Near city Runway ID and length Airport Name Near city Runway ID and length Code Throughput, 2013 Code Throughput, 2013 Domestic Airports Domestic Airports Abha Regional Airport AHB Abha 13/31: 3,350 x 45 meters 2.3 mn passengers Arar Airport RAE Arar 10/28: 3,050 x 45 meters 202 thou passengers 3,840 tonnes of cargo 360 tonnes of cargo 20,112 flights 2,118 flights Prince Sultan Bin TUU Tabuk 17/35: 4,006 x 45 meters 1 mn passengers Wedjh Airport EJH Al Wajh 15/33: 3,050 x 45 meters 50 thou passengers Abdulaziz Airport 2,033 tonnes of cargo 25 tonnes of cargo 8,567 flights 1,030 flights Rafha Airport RAH Rafha 11/29: 2,997 x 45 meters 53 thou passengers Taif Airport TIF Taif 07/25: 3,735 x 45 meters 921 thou passengers 29 tonnes of cargo 17/35: 3,350 x 45 meters 410 tonnes of cargo 922 flights 7,771 flights Najran Airport EAM Najran 06/24: 3,050 x 45 meters 579 thou passengers Prince Naif Airport ELQ Tabuk 15/33: 3,000 x 45 meters 947 thou passengers 528 tonnes of cargo 909 tonnes of cargo 5,905 flights 9,185 flights Al Qaisumah/Hafr al Batin AQI Al 16/34: 3,000 x 45 meters 130 thou passengers Hail Airport HAS Hail 18/36: 3,720 x 45 meters 576 thou passengers Airport Qaisumah 118 tonnes of cargo 1,092 tonnes of cargo 2,166 flights 5,027 flights Al-Jouf Airport AJF Sakakah 10/28: 3,661 x 45 meters 331 thou passengers King Abdullah Bin GIZ Jazan 15/33: 3,050 x 45 meters 1.3 mn passengers 641 tonnes of cargo Abdulaziz Airport 2,457 tonnes of cargo 3,684 flights 9,485 flights Al-Ahsa Airport HOF Hofuf 16/34: 3,060 X 45 meters 186 thou passengers Al-Baha Airport ABT Al-Baha 07/25: 3,350 x 45 meters 328 thou passengers 168 tonnes of cargo 130 tonnes of cargo 5,494 flights 2,857 flights Al-Gurayat Airport URY Al-Gurayat 10/28: 3,050 x 45 meters 168 thou passengers Wadi Al-Dwaser Airport WAE Al-Dwaser 10/28: 3,050 x 45 meters 110 thou passengers 314 tonnes of cargo 10 tonnes of cargo 1,664 flights 1,982 flights Prince Abdulmohsin Bin YNB Yanbu 10/28: 3,210 x 45 meters 766 thou passengers Sharurah Airport SHW Sharurah 08/26:3,650 X 45 meters 131 thou passengers Abdulaziz Airport 275 tonnes of cargo 82 tonnes of cargo 7,707 flights 1,941 flights Prince Abdulmajeed ULH Al-Ula 12/30: 3,050 X 45 meters 9 thou passengers Airport 1 tonne of cargo Turaif Airport TUI Turaif 10/28: 3,000 x 45 meters 53 thou passengers 217 flights 24 tonnes of cargo 983 flights Prince Salman Bin DWD Dawadmi 15/33: 3,050 x 45 meters 21 thou passengers Abdulaziz Airport 8 tonnes of cargo Bisha Airport BHH Bisha 18/36: 3,050 x 45 meters 363 thou passengers 434 flights 124 tonnes of cargo Rabigh Airport RGB Rabigh 15/33: 2,359 x 32 meters 1 tonne of cargo 3,573 flights 34 flights

Source: Airports Data, General Authority of Civil Aviation – Saudi Arabia, Airport Technology, www.worldaerodata.com Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 40 - Saudi Arabia: Investment Climate

The US Department of State considers Saudi Arabia as attractive and relatively stable market for investment. Saudi foreign-direct-investment law permits foreigners to invest in almost all sectors of the economy with priority being given to investments in industry, transportation, education, health, communications technology, life sciences, and energy; as well as in four "Economic Cities" that are at various stages of development. However, there is a “negative list” that currently prohibits FDIs in 2 industrial sectors and 13 service sectors, among them real estate investment in Mecca and Medina, some subsectors in printing and publishing, audiovisual services, land-transportation services excluding inter-city transport by trains, and upstream petroleum. All foreign investment projects in Saudi Arabia must obtain a license from the FDI Saudi Arabian General Investment Authority (SAGIA). Investments in specific sectors may require additional licenses from other government Regime authorities, including, but not limited to, the Saudi Arabian Monetary Agency (SAMA), the Capital Market Authority (CMA), or the Communications and Information Technology Commission (CITC). SAGIA licenses should be granted or refused within 30 days of receiving an application and supporting documentation from the prospective investor. In an attempt to ensure that investors do not just acquire and hold licenses without investing, SAGIA performs periodic license reviews. However, these reviews might be seen as disincentive to longer-term investment commitments as the possibility of cancellation adds uncertainty for investors. While SAGIA has set up the infrastructure to support foreign investment, the US Department of State notes that many companies consider the process cumbersome and time-consuming. Importantly, SAGIA is responsible to maintain and review periodically the activities that form the “negative list” of sectors with prohibited FDI regime. Foreign investors are not required to take local partners in many sectors and may own real estate for company activities. However, offices practicing law, accounting and auditing, design, architecture, engineering, or civil planning or providing healthcare, dental, or veterinary services must have a Saudi partner with a minimum of 25% stake in total investment. Right to Foreign investors are allowed to transfer money from their Saudi-based enterprises outside of the country and can also sponsor foreign employees. Private Minimum capital requirements to establish business entities range from zero to SAR 30 mn (USD 8 mn) depending on the sector and the type of investment. Ownership Foreign partners in service and contracting ventures organised as limited-liability partnerships must pay, in cash or in kind, 100 percent of their and contribution to authorised capital. Despite the bureaucracy and red tape that accompany the establishment of such an entity, foreign investment is Establishment generally welcome in Saudi Arabia as long as it promotes economic development, transfers foreign expertise to Saudi Arabia, creates jobs for Saudis, and/or expands Saudi exports. There are no legal requirements for foreign investors to purchase from local sources or export a certain percentage of output, and their access to foreign exchange is unlimited. While not required to procure from local sources, investors may avoid import duties on raw materials only if they can prove that these are not available locally. There is no requirement that the share of foreign equity be reduced over time. Investors are not required to disclose proprietary information to the SAG as part of the regulatory approval process, except where issues of health and safety are concerned.

In July 2003, the corporate tax rate on foreign investors has been lowered to a flat 20%. It replaced a tiered system with tax rates as high as 45%. While this has been a step towards more balanced treatment of foreign and Saudi-owned capital, the government tax policy still favors Saudi companies and joint ventures with Saudi participation. Hence, Saudi investors do not pay corporate income tax, but are subject to a 2.5% tax, or Tax Rates “zakat,” on net current assets. and After the financial crisis of 2008, followed by the default on USD 20 bn in debt by two Saudi business concerns and the debt restructuring in Dubai, Access to credit availability has been limited to all parties. Credit became somewhat more available in 2011 and 2012, but extraordinary public spending has Credit limited the demand for private lending. In addition to large-scale supplemental programs, credit is available from several government institutions, such as the Saudi Industrial Development Fund, which allocate credit based on government-set criteria rather than market conditions. In order to qualify for credit, companies must have a legal presence in Saudi Arabia. The private sector has access to term loans, and there have been a number of issuances of sharia-compliant bonds, known as "sukuk," but there is no fully developed corporate bond market.

US Department of State notes that Saudi Arabia does not offer transparent, comprehensive legal framework for resolving commercial disputes although SAG is making progress in this direction. The indicator that affects most negatively the country’s ranking in World Bank’s “Doing Business” Dispute is resolving insolvency, on which it ranks 163rd out of 189 economies (Data from June, 2014). Disputes with the government and over commercial issues generally fall under the jurisdiction of the Saudi Board of Grievances. The Board also Settlement reviews all foreign arbitral awards and foreign court decisions to ensure that they comply with Sharia law. This review process can take years, and outcomes are unpredictable. Even after a decision is reached in a dispute, enforcement of a judgment can take years. Therefore it is highly advisable to consult with local counsel in advance of investing to review legal options and appropriate contractual provisions for dispute resolution.

Recruitment of expatriate labor in Saudi Arabia is regulated by the Ministry of Labor and the Ministry of Interior. The large majority of the private-sector workforce consists of workers coming from Bangladesh, Egypt, India, Pakistan, the Philippines, and Yemen with Westerners making up less than 2% of the labor force. However, the Ministry of Labor aims to reduce the expatriate population from approximately 30% currently to 20% of the total population. Hence, the government encourages the so-called “saudisation” - recruitment of Saudi employees - through series of incentives and limits placed on the number of visas for foreign workers Labour available to companies. The “Nitaqat” plan, which was rolled out in 2011, has divided companies into sectors, each with a different set of quotas for Saudi Conditions employment based on company size. In 2013, the Ministry of Labor and Ministry of Interior have launched a campaign to deport illegal and improperly documented workers, which has resulted in higher labor costs for many businesses. In addition, all companies operating in Saudi Arabia, regardless of sector or size, are currently obliged to pay USD 640 per year for each expatriate employee in excess of the number of the company’s Saudi employees. Saudi labor law forbids union activity, strikes, and collective bargaining. However, the government allows companies that employ more than 100 Saudis to form "labor committees". The minimum age for employment is 14.

Source: US Department of State, May 2015 Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 42 - Saudi Arabia: Government Infrastructure Projects

In 2014, Saudi Government announced that it is launching a 1.6 USD bn project to connect the regions of Asir and Jazan in the southwest of the country. The project foresees the construction of a 135 km. dual carriage road, stretching from Al-Far'a recreation park in the south of Abha to Beesh Road in the north of Jazan area. Tender documentation on the project was being accepted until April 5th, 2015. In addition, the Government is rolling out another 1.1 USD bn road project to link Makkah and Jazan areas via the Asir region. The related tender documentation was being accepted until Infrastructure April 20th, 2015. Road infrastructure projects that are underway as of May 2015 are presented in the Appendix of the present report.

King Abdulaziz International Airport (KAIA) is undergoing a massive expansion that is organised in three phases. They are expected to be completed by 2035 leading to ultimate capacity at around 80 million annual passengers. Prince Mohammed Bin Abdulaziz Airport Prince Mohammed bin Abdulaziz Airport expansion project aims to accommodate the influx of Hajj and Umrah pilgrims every year by providing annual capacity of approx. 8mn passengers. The USD 2.4 bn was completed in early 2015 and includes a 153,000 sq m passenger terminal with 31 passenger boarding bridges, 26 auxiliary buildings, extended runway, three parallel taxiways and over 300,000sq m of apron. Air As of May 2015, projects are being implemented to expand the capacity of King Khalid International Airport (from 15 to 20-25 million annual Transport passengers), Al Baha Domestic Airport (from 200,000 to 500,000 annual passengers), the Abha Regional Airport (from 9 400 sq m to 78 000 sq m Infrastructure and 5 million annual passengers), Arar Domestic Airport (from 1 810 sq m to 7 560 sq m and 518 000 annual passengers), Al Jouf Domestic Airport (from 2 900 sq m to 13 000 sq m and 1 million annual passengers), Al Qassim Domestic Airport (from 5 500 sq m to 36 000 sq m and 1.5 million annual passengers). In addition, King Fahd International Airport is undergoing infrastructure improvements due for completion by 2018. Finally, a tender is in progress for building a new international airport to serve pilgrims to Mecca in the nearby city of Taif. Upon completion, the 57 sq km airport will have capacity of 400 000 annual passengers. King Abdullah Bin Abdulaziz Airport in Jazan will also be replaced by new 55 000 sq m airport with 3.6 million annual passengers capacity.

Saudi Tenders, Railway Technology, Railway Gazette, Public Transport Authority – Saudi Arabia, KAIA Airport, MEED Projects, Arab News, NACO - Netherlands Source: Airport Consultants, SUSRIS – Saudi-US relations information service, BMI, Saudi Railways, www.roadtraffic-technology.com, Zawya Projects via KFHR, Port Any redistributionTechnology, of this information www.constructionweekonline.com is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 43 - Saudi Arabia: Government Infrastructure Projects (cont’d)

During the first Saudi Maritime Congress held in November 2014 Saudi authorities announced that the country will spend about USD 30 bn to improve port infrastructure. Some of the mega port projects to be realised in the coming years include an expansion of the seaport at King Abdullah Economic City, whose construction total value is USD 26.6 bn and should be completed by 2020. In addition, Port Saudi Government has undergone a USD 510 mn expansion of the Red Sea Gateway Terminal at Jedah Islamic Port, that has increased annual capacity to 1.8 mn TEUs and has seen the construction of two berths: a 740 m. main berth, and a 390 m. feeder Infrastructure berth. The terminal’s annual capacity is set to increase to 2.5 mn TEUs. Additionally, terminal’s quay length will be enhanced by a further 255 m. to 1,324 m., the main berth extended from 745 m. to 850 m., while the new second berth will be enhanced from a feeder berth to a complete new 474 m. berth. In 2013, USD 210.6 mn works on Marafiq's Yanbu Industrial City-Marine Facilities were completed and Dareen Port was expanded at a cost of USD 35 mn in 2014.

Saudi Arabia has adopted an impressive USD 97 bn plan to expand its national railway network. During the first USD 16.8 bn stage, continuing from 2010 to 2025, 5,500 km are to be built. In the second USD 55.7 bn phase 3 000 km are to be built between 2026 and 2033. In the last USD 24.8 bn stage, 1 400 km of railway will be constructed between 2034 and 2040. Among other improvements and construction works, the first stage foresees the construction of the connection to the GCC railway network with lines between Batha at the UAE Border - Hofuf and Jubail - Ras Al Khair - Kuwait Border, as well to Qatar and Bahrain. In addition, some other major projects that are part of the first 2010-2025 phase are the railway landbridge Railway between Riyadh and Jeddah, the Haramain high speed railway connecting Makkah – Jeddah – Madinah, and north-south mineral line between the northern regions, Ras Al Khair/Jubail and the capital Riyadh. The landbridge involves the construction of approx. 1,100 km of railway - 950 km new Infrastructure line between Riyadh and Jeddah, and 115 km new line between Dammam and Jubail . Passenger trains running on the track will be designed to travel at 250 km/h and freight trains at 140 km/h. The landbridge project is expected to improve significantly the inland transportation capabilities of the country. It will facilitate the freight of cargo imported from East Asian countries via King Abdul Aziz Port in Dammam, and from Europe and North America via Jeddah Islamic Port. Moreover, with the construction of the Jeddah-Riyadh rail link the time taken for passenger transport will be cut double to 6 hours instead of the current 10 to 12 hours via bus. For freight trains the maximum travel time should take 12 hours. The Dammam- Jubail link will be 1 hour for passenger trains and 3 hours for freight trains.

Public transport developments in Riyadh are in line with the Riyadh Public Transport Project (RPTP). A major project that is currently being executed is the USD 23 bn Riyadh Metro Rail Project. The network, due for completion in 2018, will be approximately 178 km long with six lines and 85 stations including underground, elevated and at-grade sections. In addition, an 85 km three-line Bus Rapid Public Network (BRT) will be built and integrated with the metro stations. Transport As of May 2015, three substantial public transport projects are in tendering phase - Jeddah Metro Light Rail Transit System Project Infrastructure (planned network of 149 km), Makkah Mass Rail Transit System Development Project (planned network of 188 km, including 88 stations), and Medina Metro Project (planned network of over 95 km). Saudi Public Transport Authority is also working on the design of public transport system in Dammam, Buraydeh, Jazan, and Taif and is developing public transport master plans in Abha, Hufof, Hail and Tabuk

Saudi Tenders, Railway Technology, Railway Gazette, Public Transport Authority – Saudi Arabia, KAIA Airport, MEED Projects, Arab News, NACO - Netherlands Source: Airport Consultants, SUSRIS – Saudi-US relations information service, BMI Research, Saudi Railways, www.roadtraffic-technology.com, Zawya Projects via KFHR, Port Technology Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 44 - Saudi Arabia: Biggest Infrastructure Projects

Infrastructure Projects in Top 10 Biggest Projects, Q1 2015

Project Client Contract Value, Award Year Expected USD mn Completion

Riyadh Light Rail Transit (Riyadh Metro): Lines 1 & 2 Arriyadh Development Authority 9,450 2013 2018

Haramain High-Speed Rail Network: Phase 2 Saudi Railways Organisation 8,396 2011 2016

Riyadh Light Rail Transit (Riyadh Metro): Lines 4, 5 & 6 Arriyadh Development Authority 7,820 2013 2018

Riyadh Light Rail Transit (Riyadh Metro): Line 3 Arriyadh Development Authority 5,942 2013 2018

KAIA: Phase 1: New Terminal: Package 1 General Authority of Civil Aviation 4,034 2010 2015

Distribution of Top 10 Biggest Projects by Value Number and Industries of Top 10 Biggest Projects

5 4

Other industries 33.18% 1

Transportation 66.82% Transportation Construction Power

Number of projects

Road Infrastructure

The 2013-2014 World Economic Forum’s Executive Opinion Survey ranked UAE 1st out of 144 economies in terms of road infrastructure quality. Clearly, the country is also a regional leader among MENA states. In 2013, UAE had a road network of 12,215 km and road density of 0.15 km/sq km of land area – about average for the MENA region. Over the 2008-2012 period, the country has built average of about 460 km of new roads a year. In 2012, expressways and arterials accounted for some 45.2% of total roads. As of June 2015, roads with total cost of approx. As much as USD 2bn are being built and should be completed by 2017.

Port Infrastructure

The country offers a vast network of ports and offshore terminals, including state-of-the-art facilities like Port Khalifa’s semi-automated container terminal – the first of its kind in the region. The port is set to increase its capacity to 2.5 mn TEUs per annum from the current 2 mn TEUs through an USD 81.7 mn loan by Abu Dhabi Commercial Bank. The UAE are also home of one of the few yards in the region that handle ship construction, repair, and conversion works - Dubai Drydocks World. Other major infrastructure facilities include Jebel Ali – the principal port of Dubai, Zayed – Abu Dhabi’s oldest commercial port, Fujairah – the only multi-purpose port on the eastern seaboard of UAE, Khorfakkan Port, Rashid Port, and others. In the 2013-2014 World Economic Forum’s Executive Opinion Survey, the UAE ranked 3rd out of 144 economies in terms of port infrastructure quality.

Air Transport Infrastructure

The Emirati airport infrastructure consists of seven international airports. In 2014, ACI ranked Dubai Intl Airport 6th globally in terms of overall passenger traffic and 1st in terms of international passenger traffic. Naturally, on national level, the airport accounts for the biggest share of passengers, cargo, and aircraft movement. It is also leader in MENA in terms of available seats (471 thou units), according to CAPA data from May 2014. Abu Dhabi Intl Airport holds the 9th place in MENA in the same ranking, with 110 thou seats. Over the 2010-2014 period, the airport has increased its capacity by 66%, Dubai Intl Airport – by 44%, and Sharjah Intl Airport – by 39%. Accordingly, they were among the fastest growing airports in the Middle East. UAE Government has rolled out extremely ambitious airport expansion plans. It is noteworthy that Al Maktoum International Airport (the second Dubai airport), is set to become the biggest airport in the world after undergoing USD 32bn expansion that will lift passenger capacity to 220 mn people annually by 2023. In the 2013-2014 World Economic Forum’s Executive Opinion Survey, the UAE ranked 2nd out of 144 economies in terms of air transport infrastructure quality.

Selected Economic Indicators

2009 2010 2011 2012 2013 2014

GDP, constant prices 2005 (USD bn) 200.2 203.4 213.4 223.4 235.0 244.1e*

GDP, current prices (USD bn) 253.5 286.0 347.5 372.3 402.3 412.2e*

Real GDP Growth Rate (%) (5.2) 1.6 4.9 4.7 5.2 3.9e*

Foreign Direct Investment, net inflows (USD bn, current) 4.0 5.5 7.7 9.6 10.5 n/a

Consumer Price Index (%) 1.6 0.9 0.9 0.7 1.1 2.3

Comments

Emirati economy grew steadily at CAGR of 4.0% over the 2009-2014 period. BMI experts anticipate 4% y-o-y real GDP growth in 2015. Dubai is to contribute with larger weight in growth compared to Abu Dhabi thanks to increased activity in trade, tourism and real estates. Private’s sector access to credit in 2015 will be constrained as commercial banks increase provisioning to safeguard against potential loan losses due to the debt funding cliff. According to BMI, inflation is set to rise at 4% y-o-y change of the consumer price index in 2015. The transport and storage industry grew moderately at CAGR of 2.4% over 2009-2014, well below the GDP growth rate. The completion of a number of major transport facilities such as the Dubai International Airport prior to 2009 has led to relatively lower activity in the sector in the subsequent years.

Source: CEIC, World Bank, BMI, Euromonitor, - * BMI estimates Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 48 - United Arab Emirates: Quality of Infrastructure

Quality of Road Infrastructure* Quality of Port infrastructure*

6.6 6.5 6.6 6.5 6.3 6.3 6.4 6.4 6.2 6.2

4.6 4.5 4.5 4.6 4.5 4.4 4.3 4.2 4.5 4.3 4.3 4.3 4.3 4.0 4.0 4.0 4.0 4.0 4.2 4.1

2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 Global average MENA average UAE Global average MENA average UAE

Quality of Air Transport Infrastructure* Quality of Overall Infrastructure*

6.5 6.4 6.4 6.4 6.3 6.4 6.4 6.2 6.2 6.2

5.1 5.0 4.9 4.7 4.7 4.7 4.7 4.6 4.7 4.5 4.4 4.4 4.4 4.3 4.3 4.3 4.3 4.2

2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 Global average MENA average UAE Global average MENA average UAE

Road Network (km) and Road Density (km/sq.km of land area)

0.13 0.14 0.15

0.12 0.13

12,215

11,799

11,208

10,809 9,916

2008 2009 2010 2011 2012

Road length Road density

Road Network by Type of Road, 2012

Collectors Local Residential 19.7% 17.4%

Freeways 12.3%

Expressways 20.8% Local Industrial/Commercial 5.6% Arterials 24.4%

Source: Roads & Transport Authority, United Arab Emirates Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 50 - United Arab Emirates: Port Infrastructure

Ports in the United Arab Emirates

UN/ Port Name Location Overview Maximum size LOCODE Emirate of Sharjah Ports Khalid Port AESHJ On the Gulf coast, Port Khalid is also known as Sharjah port. Its facilities consist of 21 berths and one oil Channel: Depth 12 m. (tidal). approx. 15 nautical terminal. The port is capable of handling general, reefer, dry, liquid, and bulk cargo and Dry Cargo: Draft 12 m. miles northeast of provides oil and offshore support services as well. It is connected to the inland through Containers: Draft 12 m., LOA 300 m. Dubai. multilane roads and highways. RoRo: Draft 9.5 m.Bulk: Draft 12 m. Tankers: 60,000 d.w.t., draft 10 m. Khorfakkan Port AEKLF On the Gulf coast of A natural deep-water harbour that is situated only three hours from the UAE's main Channel: Draft 16 m., UKC at least 10% of UAE, 15 nautical miles centers of population - Dubai, Sharjah and Abu Dhabi. Khorfakkan's location attracts draft. north of Fujairah. shipping lines with large transshipment volumes. The port disposes of 6 berths (2 km total Containers: Draft 16 m. length) to handle container vessels; storage area of 450,000 sq.m. of which 100,000 sq.m. Ro-Ro: Draft 10.4 m. are an open storage area; and 20 container gantry cranes including 6 super post-panamax gantries, and 4 mega-max tandem-lift cranes. In addition, there are 26 yard gantries, 30 container handlers, and 116 terminal tractors. The port has annual capacity of 5 mn TEUs. Mubarek Terminal AEMUB Offshore, south- The terminal is under the jurisdiction of the Emirate of Sharjah and is operated by the n/a southeast to the island Crescent Petroleum Company. It represents an offshore floating storage unit (FSU) of of Abu Musa. 87,000 d.w.t. that is permanently moored to an SPM and used for the storage of crude oil. Al Hamariyah Port AEHZP On the Gulf coast, Al Hamariyah Port facilitates non-containerised cargo movements between Dubai, Arabian LOA 230 m., draft 12.6 m. approx. 16 nautical Gulf, East Africa and Western India. It is capable of handling dhows, break-bulk, ro-ro miles northeast of vessels, and 190 fishing boats at any given time. The port also includes a large quarantine Dubai. facility that accomodates livestock imports. Its proximity to Dubai’s used car market makes it an attractive hub for used car trading. Al Hamariyah LPG n/a On the Gulf coast, The terminal consists of a shore tank with related onshore facilities, and an offshore Gas: 57,000 d.w.t., LOA 230 m., Terminal approx. 7.5 nautical loading berth composed primarily of a single point mooring buoy (SPM). draft 12.6 m., depth 14 m. (tidal). miles northwest of Hamriyah. Al Hamariyah SBM n/a In the Emirate of Hamriyah SBM Oil Terminal handles condensate and is owned by Sharjah National Oil Crude: Displacement 150,000 tonnes, Terminal Sharjah between Umm Corporation (SNOC). depth 22.9 m., draft 16 m. Al Qaywayn and Ajman, 7.6 nautical miles offshore.

Source: Ports Data, General Authority of Ports Border and Free Zones Security –UAE, www.findaport.com Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 51 - United Arab Emirates: Port Infrastructure (cont’d)

Ports in the United Arab Emirates

UN/ Port Name Location Overview Maximum size LOCODE Emirate of Abu Dhabi Ports Khalifa Port AEKHL On the Gulf coast, about Khalifa port is a state of the art facility that handles all of Abu Dhabi’s container traffic following the Draft 15 m. 22.8 nautical miles 100% TEU traffic transition from Zayed Port in late 2012. It has the first semi-automated container Channel: Depth 16.5 m. norteast of Zayed Port, terminal in the region, the only one in radius of 5,000 km. The offshore port is built on a reclaimed DryCargo: Depth 18 m. (CD). and 23.7 nautical miles area of 2.7 sq. km. and the container terminal is situated more than 4 km. out to sea. The container Containers: Draft 16 m. (tidal). southwest of Jebel Ali. terminal is operated by Abu Dhabi Terminals (ADT), has 6 post panamax container cranes, and a RoRo: Depth 18 m. (CD). Bulk: Depth 18 m. (CD) dedicated quay of 1.2 km. using 3 berths. The total land area dedicated to general cargo (dry bulk, . break bulk and ro-ro) is approx. 850,000 sq.m. and is combined with 4 berths measuring 1.8 km. in total. In addition, Khalifa Port has a dedicated bulk terminal built for EMAL (Emirates Aluminium). It contains two vacuum ship unloaders that transfer coke and alumina onto wharf belt conveyor system. There is also a container freight station of 116,360 sq.m. that includes 89,475 sq.m. freight station, warehouse of 10,500 sq.m., open storage area of about 45,000 sq.m., and a container depot of 26,885 sq.m. Zayed Port AEMZD Adjacent to the city of Zayed Port, also known as Mina Zayed, is Abu Dhabi’s oldest commercial port and has been the main Channel: Depth 15 m. (Zayed Port), 8 m. (Free Abu Dhabi, in the mid- city port for the last 40 years. The port covers 5.1 sq. km. area and consists of three basins - Zayed Port), 8 m. (New Free Port) Draft: 13 m. (Zayed northern part of the UAE. Port for deep water vessels, Free Port for smaller vessels, and New Free Port for lay-by and vessels Port), 7.5 m. (Free Port), 7.5 m. (New Free Port) that require minor repairs. The port handles ro-ro, general and bulk cargo, as well as the emerging cruise business, with future plans to develop the port as a world class cruise destination. Hence, the port authorities have undertaken the development of a cruise terminal. The first phase being completed, Zayed Port is now capable to accommodate two large cruise ships and one small vessel. The upcoming development phases of the cruise terminal foresee the construction of a terminal building and a traditionally themed souk and heritage area, with activities for both passengers and the general public. Zayed Port offers 1 ro-ro berth and more than 143,000 sq.m. of covered warehousing and cold storage with a capacity of 20,000 tonnes. The Free Port has 1 ro-ro berth as well and offers open storage space.

Musaffah Port AEAMF Approx. 16 km. southeast Musaffah Port is the second oldest Emirati port following Zayed Port. It has an extensive waterfront of Draft 9.0 m. (tidal). of central Abu Dhabi city. nearly 40 km. The port handles heavy lift, general cargo, ro-ro, dry bulk,over dimensional cargo and projects. In February 2011, the new Musaffah channel replaced the existing access channel to the Musaffah industrial area. The new channel has provided opportunity for larger ships with deeper draughts to access the port as it is 53 km. long, 200 m. wide and 9 m. deep. Jebel Dhanna AEJED In Abu Dhabi's territorial Jebel Dhanna is operated by Abu Dhabi Company for Onshore Oil Operations (ADCO) and serves to Tankers: 450,000 d.w.t., LOA 377 m., waters, about 96 nautical store and export crude oil produced by the company. It consists of three SPMs, located 3.0 n.m. draft 14.3 m. miles west of Abu Dhabi. offshore and spaced 1.2 n.m. apart.

Source: Ports Data, General Authority of Ports Border and Free Zones Security –UAE, www.findaport.com Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 52 - United Arab Emirates: Port Infrastructure (cont’d)

Ports in the United Arab Emirates UN/ Port Name Location Overview Maximum size LOCODE Emirate of Abu Dhabi Ports (Cont’d) Ruwais Port AERUW Approx. 250 km. west of Abu The Ruwais port consists of six major terminals. The crude oil terminal is operated by The Abu Dhabi Ro- Dhabi. Company for Onshore Oil Operations (ADCO). The other five terminals are a refined oil terminal operated by Ro: Depth 7.0 m. (CD).Bulk: Displac Abu Dhabi Oil Refining Company (TAKREER), a gas terminal operated by Abu Dhabi Gas Industries Ltd. ement 85,000 tonnes, LOA 248 m., (GASCO), a bulk cargo area and liquid ammonia terminal operated by Ruwais Fertilizer Industries (FERTIL), a draft 13.5 m., depth 14.8 sulphur handling terminal operated by GASCO, and a polyethylene terminal operated by the Abu Dhabi (CD).Tankers: Draft 11.0 m. Polymers Company Ltd. (BOROUGE). In 2016, phase one of the ChemaWEyaat (Abu Dhabi National Chemicals Company) terminal should start operating with three new berths and after phase 12 (planned for 2030) 18 new berths in total will be in commission. Das Island AEDAS An island in Abu Dhabi's territorial The port facilities are operated by Abu Dhabi Marine Operating Company (ADMA-OPCO) and Abu Dhabi Gas Crude: Displacement waters, approx. 70 nautical miles Liquefaction Company Ltd (ADGAS). Hence, it handles the export of crude oil, liquefied gas and its by- 360,000 tonnes, east-southeast of Doha. products, and molten sulphur. draft 24 m.Chemicals: Displacement 8,500 m., LOA 130 m., draft 10 m.Gas: Displacement 100,000 tonnes, LOA 300 m., draft 14 m. Zirku Island AEZUR An island in Abu Dhabi's territorial Zirku Island is about 5 km. long and 2.5 km. wide and accomodates a harbour and on oil terminal that is Oil Terminal: Crude: 350,000 d.w.t., waters, approx. 75 nautical miles situated 8 nautical miles off the island. The harbour consists of a small boat service jetty. The oil terminal draft 21 m., depth 27 m. Harbour: west-northwest of Abu Dhabi. comprises 2 single point mooring buoys (SPMs) for the export of crude oil from Upper Zakum, Umm Al-Dalkh Depth 4.5 m. and Satah Fields. Mubarras Island AEMBS An island in Abu Dhabi's territorial This is a crude oil export terminal comprising a SPM, offshore Central Facilities Platform (CFP), and operations Dry waters, approx. 51 nautical miles and storage facilities. Cargo: Draft 3.66 m. Tankers: Draft west of Abu Dhabi. 13.5 m. Umm Al Nar AEULR At the southeast tip of Abu Dhabi This is a petroleum port that consists of 2 island-type berths connected to the shore through a causeway. 30,000 d.w.t., LOA 170 m., Island. draft 9.50 m., beam 26.5 m. Mugharraq Port n/a In the west of the emirate of Abu The port handles cargo services, primarily ro-ro, and supports ferry and logistics connections to Sir Bani Yas LOA 70 m., draft 2.6 m., Dhabi, 5 km. west of Jebel Island and Delma Island. Currently, there are construction works on additional slipways, a revetment for depth 2.6 m. Dhanna. shoreline protection, deepening of the port basin, installing of additional equipment like fenders, and the modification of the existing landing ramp. Al Sila Port n/a In the west of the emirate of Abu The port handles commercial vessels such as containers, general cargo and ro-ro, as well as fishing vessels Dhabi, 95 km. west of Jebel for fisheries. Dhanna Sir Baniyas Logistics n/a On the western side to Sir Bani The port is located on the Sir Bani Yas Island, which is developed and operated as a tourist destination by the Ro-Ro: LOA 50 m., draft 5.0 m. Port Yas Island, 6.3 nautical miles Tourism Development & Investment Company (TDIC). The port thus handles the transfer of all construction northwest of Jebel Dhanna. materials and workers.

Source: Ports Data, General Authority of Ports Border and Free Zones Security –UAE, www.findaport.com, Picolli C., Assessment of port marine operations performance by Any redistributionmeans of this informationof simulation, is strictly Octprohibited. 2014 Copyright © 2015 EMIS, all rights reserved. - 53 - United Arab Emirates: Port Infrastructure (cont’d)

Ports in the United Arab Emirates

UN/ Port Name Location Overview Maximum size LOCODE Emirate of Abu Dhabi Ports (Cont’d) Shahama Port n/a About 4 km. off the The port is currently redeveloped into a prime commercial, leisure and tourism hub and is n/a main Abu Dhabi – aiming to become one of the largest one-stop shops for leisure boat users in the region. Dubai highway, and has direct access to all the surrounding residential areas. Emirate of Dubai Ports Rashid Port AEPRA In Dubai city. Port Rashid, also known as Mina Rashid, is one of the major ports of the UAE. It is a multi- LOA 230 m., Depth 11 m. purpose port equipped to handle both cargo and passenger operations. However, all cargo operations have been transferred to Jebel Ali in 2008. The port consists of 18 berths and has cruise and ferry terminals. The cruise terminal covers 2 sq. km. area and is capable of handling 7 mega cruise vessels / 25,000 passengers simultaneously, being one of the leading cruise terminals in the Middle East. The Rahid Port's Ferry Terminal is located adjacent to the Cruise Terminal. Currently, it handles some 20,000 passengers annually. Jebel Ali Port AEJEA On the Gulf coast of Jebel Ali Port is the principal port of Dubai, being a multi-modal hub with sea, air and land Dry Cargo: Draft 14.5 m., depth 16 m. the UAE, 40 km. connectivity, complemented by extensive logistics facilities. The port is a technologically Containers: Draft 17 m., depth 17.2 m. southwest of Dubai advanced facility, employing state-of-the-art equipment, a total of 63 berths (3 additional berths Ro-Ro: Draft 10.5 m., and 90 km. northeast under development), and 87 cranes (10 additional cranes on order) to accomodate the world’s depth 11.5 m. of Abu Dhabi. largest container vessels. It includes 3 terminals - container terminal, general cargo terminal, Bulk: Draft 14.5 m., depth 16 m. and tank terminal and offers storage area of about 1.4 sq. km., plus 3,900 sq.m. cool storage Tankers: 120,000 d.w.t., LOA 275 m., and 5,765 sq.m. cold storage. The port benefits significantly from its access to over 2 bn draft 14 m.,depth 15 m. people, its connection to the main UAE/GCC Road network, the proximity of Al Maktoum Gas: Draft 14 m., depth 15 m. International Airport (16 km.), and its location within the Jebel Ali Free Zone, which houses more than 6,400 companies active in variety of industrial and service-orientated sectors. Fateh Terminal AEFAT In Dubai's territorial This is oil loading terminal operated by Dubai Petroleum Company (DPC). It consists of the Tankers: 350,000 d.w.t., seasonal, waters in the Arabian crude oil production and export facilities of the Fateh, SW Fateh, Falah, Jalilah and Rashid depth 45.7 m. Gulf, approx. fields. 40 nautical miles west- northwest of Port Rashid. Source: Ports Data, General Authority of Ports Border and Free Zones Security –UAE, www.findaport.com Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 54 - United Arab Emirates: Port Infrastructure (cont’d)

Ports in the United Arab Emirates UN/ Port Name Location Overview Maximum size LOCODE Emirate of Dubai Ports (Cont’d) Dubai Drydocks World n/a Adjacent to Rashid Port Dubai Drydocks World is a ship repair yard that handles vessels conversions, as well as new building and offshore construction. It handles 350 vessels in Dubai. per annum on the average, among them mainly ULCCs (Ultra Large Crude Carriers) and VLCCs (Very Large Crude Carriers), bulk carriers, containerships, ro-ro vessels, cargo vessels, gas carriers, chemical tankers, offshore vessels and rigs. The yard has specialised LNG handling capabilities. In order to support the conversion and repair works, the yard operates its own steel shop with a monthly fabrication capacity of over 2,000 tonnes, as well as a pipe shop equipped with modern CNC profile cutting, CNC pipe bending machines, GTAW/SAW welding equipment, an auto SAW welding station, Orbital Tig (GTAW) and Plasma Automatic Welding (PAW) station. There is also a mechanical shop with an extensive range of equipment including one of the world’s largest ram borers, a 20 meter shaft lathe, a 20 tonne balancing machine, a sophisticated modern milling machine, a single Girder EOT crane of 5 tonne lifting capacity and height of 11.5 m. and two jib cranes 5.5 m. long of 2 tonne lifting capacity. The yard's electric shop is capable of rewinding of 10,000KW HV motors and overhauling power transformers, testing motors of 11KV & 10,000 KW capacity, and overhauling motors of 45 tonnes weight and 12 MW & 11 KV capacity.

Emirate of Ajman Ports Ajman Port AEAJM Approx. 6 nautical miles The port is located opposite to the Ajman Free Zone and handles containers, general cargo, and ro-ro Dry Cargo: LOA 150 m., beam 22 m., draft 7.5 m. northeast of Port Khalid, cargoes. It also offers 55,000 sq.m. of closed warehouse storage as well as temperature controlled Containers: LOA 150 m., beam 22 m., Sharjah and 12 nautical storage facility of 7,200 sq.m. (min. temperature 15 C) draft 7.5 m. miles northeast of Port Ro-Ro: Draft 4.7 m.Tankers: Draft 4.7 m. Rashid Dubai. Emirate of Umm Al Quwain Ports Ahmed Bin Rashid Port AEQIW Approx. 30 miles The facility is wholly owned and managed by the Government of Umm Al Qiwain and has Free Zone LOA 200 m., draft 10 m. northeast of Dubai, in the status. It includes 845 m. of quay wall with 400 m. capable of handling ocean-going vessels. Containers: 16,900 d.w.t., LOA 200 m., Emirate of Umm Al draft 9.8 m. Passengers: 30,000 g.t., Qiwain. LOA 210 m., draft 9.5 m. Bulk: 25,000 d.w.t., LOA 176 m., draft 9.8 m. Tankers: 20,000 d.w.t., LOA 164 m., draft 9.5 m. Emirate of Fujairah Ports Fujairah Port AEFJR Outside the Strait of Port of Fujairah is the only multi-purpose port on the Eastern seaboard of the United Arab Emirates. It Containers: Draft 11.5 m., depth 12 m. Hormuz, on the eastern handles general cargo (incl. project cargoes), bulk cargo (incl. aggregate exports), and wet bulk cargo Passengers: Draft 11.5 m., depth 12 m. flank of the Arabian (including crude, fuel, gas oil, condensate, gasoline, Jet A-1, naphtha and base oil) and is an Bulk: Draft 13.5 m., depth 15 m. Peninsula, overlooking important hub for bunkering & oil trading activities. The port includes 2 oil terminals. Terminal 1 offers Crude: 320,000 d.w.t., LOA 340 m., depth 56 m. Arabian Sea, 3 km. north 3 berths with total length of 840 m. and capacity of DWT 100,000 tonnes/berth. Terminal 2 includes 4 Products: Draft 16.5 m., depth 18 m. of Fujairah town and berths with total length of 1,500 m. and capacity of DWT 180,000 tonnes/berth. Gas: Draft 16.5 m., depth 18 m. 20 km. south of Khor Fakkan Port.

Source: Ports Data, General Authority of Ports Border and Free Zones Security –UAE, www.findaport.com Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 55 - United Arab Emirates: Port Infrastructure (cont’d)

Ports in the United Arab Emirates UN/ Port Name Location Overview Maximum size LOCODE Emirate of Ras Al Khimah Ports Saqr Port AEMSA On the Gulf coast in the Saqr Port, also known as Mina Saqr, handles large amounts of dry bulk cargo including cement, LOA 225 m., draft 12 m. Bulk: Depth 12.2 m. north of the country, aggregates and ores. It consists of 8 bulk-handling berths, 3 container handling berths and 1 general 60 nautical miles purpose berth. The port also offers 42,000 sq.m. of covered warehouse, as well as open storage northeast of Dubai and areas in excess of 84 ha. 40 nautical miles southwest of the Strait of Hormuz. Ras Al Khaimah Khor Port AERKP Close to the entrance of RAK Khor Port is a unique city center port that covers approx. 323,858 sq.m. Being a city port that n/a the Strait of Hormuz, at conforms with the requirements of the local community, it handles mainly general/dry cargo, as well the entrance to the Ras as transhipment cargo, and the storage and distribution of imports from the GCC, East Africa and Al Khaimah creek. Indian Subcontinent. The port offers 8 berths, including 1 ro-ro berth. It also taps on the increasing interest in leisure activities in the Northern Emirates, and provides access to a new passenger cruise terminal. Ras Al Khaimah Maritime AERMC Adjacent to Saqr Port Launched in May, 2011, RAK Maritime City operates simultaneously as a port and a free zone. It Harbour entrance approach: Depth 9 m. Berths: City occupies an area of 8 sq.km. and has a dedicated harbour covering 820,000 sq.m. of water, and Depth 7 m. almost 5 km. of new quay wall with private/exclusive use jetties. The facility offers state-of-the-art repair and ship maintenance facilities, retail, warehousing and general cargo handling zones as well as areas for tank storage, industrial production and manufacturing Al Jeer Port AEAJP Located on the Ras Al The port handles general cargo and livestock but is providing services mainly for sailing yachts, large n/a Khimah border to the luxury yachts and private leisure vessels. It includes a 266-berth marina for commercial and leisure Musandam, Oman. facilities, 41 covered warehouses (incl. 2 temperature controlled), open storage areas, qurantine facility, incinerator, etc. Al Jazeera Port AEJAZ At the entrance to the Al Jazeera Port's main activities are dry docking, ship repairing, marine operations, agency Service, LOA 110 m., draft 5.2 m. Gulf, on the northwest cargo handling, and warehousing&storage. coast of Ras Al Khaimah, The port covers a total area of over 105,000 sq.m., including a Dry Dock and Ship Lifting System UAE. area. Inaugurated in late 2010, this 50,000 sq.m. facility has 12 dry berths – 8 berths are 67.5 m. long x 30 m. wide and 4 berths are 77.5 m. long x 30 m. wide. Al Jazeera Port offers covered storage space of 7,000 sq.m., and open storage space of 55,000 sq.m.

Hulaylah Terminal AEHTL In Ras Al Khaimah's The terminal handles crude oil transactions. Crude carriers are moored to an IMODCO SPM. Crude: 350,000 d.w.t., LOA 396 m., territorial waters, about beam 54.86 m., draft 21.33 m., bow to manifold 6.2 nautical miles from 182.8 m. Mina Saqr. Source: Ports Data, General Authority of Ports Border and Free Zones Security –UAE, www.findaport.com Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 56 - United Arab Emirates: Ports Throughput

Container Port Traffic, thou TEU (20 foot equivalent units)

15.63%

14,425 6.71% 5.21% 3.26%

-2.24% 17,548

15,177

19,336 18,121

2009 2010 2011 2012 2013

Container Port Traffic, thou TEU YoY change

Arriving Vessels at Dubai Ports by Type, 2014

10.47% 7.23% 8.53% 7.15%

0.36%

-7.58% 22,740

14,747

934

649

195 6,215

Containers General Cargo RORO Passengers Others Total

Number of vessels YoY change

Source: CEIC, World Bank, UNCTAD, Dubai World, Department of Naturalisation & Residency - Dubai Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 57 - United Arab Emirates: Air Transportation Infrastructure

Airports in the United Arab Emirates

IATA Airport Name Near city Terminals and other facilities Runway ID and length Airport Annual Throughput* Code Abu Dhabi International Airport AUH Abu Dhabi The airport consists of 3 terminals, 58 gates, and Runway 1: 4,000 m In 2014: 19.6 mn passengers & 109 check-in counters. Completed in 2009, Runway 2: 4,100 m 154,821 flights Terminal 3 is the hub of Etihad Airways. Both runways dispose of CAT IIIB (instrument landing) capability Dubai International Airport DXB Dubai The airport comprises 3 terminals with Terminal 3 Northern runway: 4,000 m. by 60 m. In 2014: 70 mn passengers, 2.4 being dedicated for use by Emirates airline only. Southern runway: 4,500 m. by 60 m. mn tonnes of cargo & 357,842 Terminal 2 is home to Dubai’s budget airline flights flydubai. There are also 257 check-in counters and 82 gates. Al Maktoum International Airport DWC Jebel Ali, Dubai The airport comprises one passenger terminal 12/30: 4,500 m. X 60 m. (compatible In 2014: 845,046 passengers, with capacity of 5 mn passengers per annum with Airbus A380 aircrafts) 758,371 tonnes of cargo & (expandable to 7 mppa) and a cargo terminal 47,655 flights building with a capacity of 1 mn tonnes per annum. There are also 12 gates.

Sharjah International Airport SHJ Sharjah The airport consists of one 105,300 sq. m. Runway 1: 4,060 m. X 45 m. In 2014: 8.1 mn passengers, passenger terminal and 5 cargo terminals with a Runway 2: 4,060 m. X 60 m. 273,250 tonnes of cargo & total floor area of 32,000 sq.m. There are also 25 (compatible with Airbus A380, Boeing 70,559 flights aircraft stands and eight departure gates. SHJ is 747-800 and giant freighters like the home base of the low-cost carrier Air Arabia. AN124 and AN225) Ras Al Khaimah International Airport RKT Ras Al Khaimah The airport consists of 2 passenger terminal 16/34: 3,760 m. X 45 m. In 2012: 339,979 passengers buildings (arrivals and departures), and a cargo terminal facility. The main apron is 115,550 sq.m. and has 19 aircraft parking positions.

Fujairah International Airport FJR Fujairah The airport consists of 1 passenger and 1 cargo 11/29: 3,750 m x 45 m. In 2014: 2,718 passengers terminal. The main apron has 15 aircraft stands.

Al Ain International Airport AAN Al Ain The airport consists of one passenger terminal, 01/19: 4,000 m. x 45 m. In 2013: 44,107 passengers 10 check-in counters, and 4 gates.

Source: Airport Data, Airport Technology, www.worldaerodata.com, www.routesonline.com, - * Passenger throughput includes arrivals and departures and excludes transit passengers. Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 58 - United Arab Emirates: Investment Climate

At present, the Emirati regulatory and legal framework favors local over foreign investors. The UAE maintain non-tariff barriers to investment in the form of restrictive agency, sponsorship, and distributorship requirements. In order to do business in the UAE outside one of the free zones, a foreign business in most cases must have a UAE national sponsor, agent or distributor, with at least 51% ownership of the business. The US Department of State reports that government tendering in UAE is not conducted according to generally accepted international standards, and re-tendering is the norm. Federal tenders must be accompanied by a bid bond in the form of an unconditional bank guarantee for 5% of the value of the bid. However, UAE federal government entities can tender internationally since foreign companies sometimes are the only suppliers of specialised FDI goods or services that are not widely available. Incentives are given to foreign investors in the free zones. Outside the free zones, no incentives are Regime given, although the ability to purchase property as freehold in certain favored projects in Dubai would appear to be incentives aimed at attracting foreign investment, as noted by the US Department of State. Four major laws affect foreign investment in the UAE: the Federal Companies Law, the Commercial Agencies Law, the Federal Industry Law, and the Government Tenders Law. These laws, especially the Federal Companies Law, are seen as the largest obstacles to foreign direct investment in the UAE. In addition to the mandatory Emirati major stake in businesses involving foreign partners, these laws stipulate that branch offices of foreign companies must have a national agent, that distribution of foreign companies’ products in the UAE is only possible through exclusive commercial agents that are either UAE nationals or companies wholly owned by UAE nationals, that industrial projects must either be managed by a UAE national or have a board of directors with a majority of UAE nationals, among others.

The UAE restricts foreign ownership of land, with rules varying from emirate to emirate. Individual emirate policies allow non-GCC nationals to have freehold or leasehold rights in designated areas, but as codifying and procedures for title documentation remain to be established, it remains unclear Right to whether the "freehold" title means the same as it does in Europe or the United States. In December 2010, Abu Dhabi Executive Council (ADEC) Private issued Resolution No. 64 of 2010 on Regulations of Property Ownership stipulating that non-UAE natural or juristic persons have the right to own, Ownership buy, sell, rent, mortgage and invest in investment areas. Non-UAE nationals may hold “mustaha” rights for up to 50 years (subject for renewal to a similar duration) and sign “usufruct” contracts for up to 99 years in properties located inside the investment areas. and The major attraction of the free trade zones (FTZ) is the waiver of the requirement for majority local ownership. Hence, in the free zones, foreigners Free Zones may own up to 100% of the equity in an enterprise. In addition, all free zones provide 100% import and export tax exemption, 100% exemption from commercial levies, 100% repatriation of capital and profits, multi-year leases, assistance in labor recruitment, and advanced infrastructure and logistic environment including easy access to sea and airports, buildings for lease, and energy connections (often at subsidised prices). Moreover, the free zone authorities provide significant support services, such as sponsorship, worker housing, dining facilities, and security. According to the UAE Embassy in UK, there are 21 FTZ around the UAE, the biggest ones among them being Jebel Ali Free Zone, Sharjah Airport Intl Free Zone, Dubai Airport Free Zone, Dubai Media City, Dubai Internet City, and RAK Free Trade Zone.

Source: US Department of State, June 2014 Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 59 - United Arab Emirates: Investment Climate (cont’d)

There is no personal income tax in the UAE. Foreign banks, outside of the free zones, pay 20% tax on their profits. Foreign oil companies with equity in concessions pay taxes and royalties on their proceeds. There are no consumption taxes, and the GCC states formally implemented a single import tariff of five percent on most goods. Companies located in the numerous "free zones" across the UAE are Tax Rates exempt from the tariff on imports and re-exports that do not leave the zones. However, some exceptions do exist. and Dubai imposes a rental housing tax on expatriates equaling five percent of the rental charges. Access to UAE financial system is highly integrated and concentrated, thus remaining exposed to global vulnerabilities. However, in 2013 the IMF has Credit noted that “the banking system maintains significant capital and liquidity buffers, and non-performing loans may finally have peaked at 8.7 percent in December 2012,” suggesting a significant turnaround in the UAE banking sector’s post-2008-2009 crisis health.

In 2006 UAE entered effectively the UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards. As a result, arbitration awards issued in the UAE are enforceable in all 138 states that have acceded to the Convention, and any award issued in another member state is directly enforceable in the UAE. In general, disputes are resolved by direct negotiation and settlement between the parties themselves, by recourse in the Dispute legal system, or arbitration. In order to enforce arbitration judgments rendered in the UAE, a court certification that may take a long time is required. Settlement Commonly, commercial disputes involving foreign parties are heard in the civil courts in the federal system in front of three-judge panel. However, commercial disputes might also come before the criminal courts, if one of the parties alleges criminal fraud or theft arising from a contractual dispute. All cases involving banks and financial institutions are required to be heard by civil courts. Interestingly, the Court of Dubai International Financial Center (DIFC) is also instrumental in commercial disputes resolution. The DIFC Court system operates independently of the UAE legal system on commercial disputes as part of the DIFC free zone. In October 2011 the Vice President and Prime Minister of the UAE and Ruler of Dubai signed a law allowing any Dubai-based business to use the English language DIFC Courts to resolve commercial disputes. The US Department of State reports that around 85% of UAE residents are non-Emiratis and approx. 98% of private sector labour are foreign workforce. To alter this ratio, the government has set a goal to increase UAE nationals’ participation in the workforce, dubbed “Emiratisation”. As of December 2010, all private corporations were required to reserve at least 15% of positions for UAE nationals. At banks, Emiratis must comprise at Labour least 40% of the workforce. The UAE National Human Resource Development and Employment Authority (Tanmia), is the federal body responsible to foster Emiratisation. In May 2009, the Cabinet approved the establishment of the UAE Emiratisation Council (UEC), which is responsible for Conditions formulating policies and standards to promote Emiratisation and for supporting the development of skills and competitiveness among nationals. Given Emiratis’ strong preference for public sector employment, in 2013, the UAE Ministry of Labor proposed changes to its labor law to attract more citizens into the private sector. The changes include proposals to bring private and public sector salaries in line; adjust working hours and days, and increase the number of private sector holidays. Visas, residence permits, and work permits are required of all foreigners in the UAE except nationals from GCC countries.

Source: US Department of State, June 2014 Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 60 - United Arab Emirates: Government Infrastructure Projects

Having opened its doors to passengers as recently as 20 months ago, Al Maktoum Intl Airport at Dubai World Center will undergo an enormous USD 32bn expansion. Once completed, it will turn the facility into the biggest airport in the world. The ambitious project is spread in two phases over six to eight years. Remarkably, upon completion, the airport will be able to accommodate more than 220 million passengers per annum. The entire development will cover an area of 56 sq km and will include 5 parallel Code F runways of Air Transport 4.5 km each, 2 terminal facilities on either west and east side of the airport site, 4 concourses, each with 100 wide body aircraft contact Infrastructure: stands and 65 million passengers per annum capacity, a 6 track train system, connecting the airport’s two terminals with its four Dubai concourses, and a massive 8 sq km cargo facility area. Airports The other airport located near Dubai, Dubai Intl Airport, is also undergoing expansion works. The multiyear USD 7.8 bn expansion project aims to increase passenger capacity to 90 million people per annum by 2018. Airport facilities that are to be built or undergo expansion include Terminal 2 (by 2013), and Concourse 4 (by 2015) with total newly constructed area of 675,000 sq m. The project also foresees expansion of DWC passenger terminal building arrivals (PTB) by 2018. In addition, 30,000 sq m cargo processing capacity will be added to airport’s cargo mega terminal.

The Abu Dhabi Airport’s Midfield Terminal is scheduled for completion in July 2017. The almost USD 3bn project comprises the construction of 700,000 sq m main terminal building that will be the largest in the Emirate of Abu Dhabi and will have an initial capacity of 27-30 million passengers per annum. It will offer approximately 28,000 sq m of retail and food and beverage outlets. As of May Air Transport 2015, the project is 46% complete. In December 2014, the airport launched operations on its newly renovated southern runway. Given the expanded runway, the airport’s annual capacity is expected to reach 500,000 aircraft movements, making it one of the largest two- Infrastructure: runway operations in the world. In March 2015, the airport opened recently improved facilities at its Terminal 1, such as new 350 m Abu Dhabi, long walkways, nine new Code E aircraft stands, 16 new X-ray screening machines with capacity of 2,000 transfer passengers per hour, and new road network. Sharjah, Sharjah Intl Airport is also set to expand its capacity in order to meet increasing traffic. However, in April 2015 it became clear that the Al Ain initially prepared expansion master plan would be revised due to budget cuts. The current project timeline sees capacity lifted from 8.5 million passengers per annum in 2013 to 15 million by 2017/2018, and ideally 25 million by 2019. The master plan also proposes the Airports construction of a hotel and shopping mall to be built near the airport. As of June 2015 project cost remains unclear. Finally, Al Ain Intl Airport is also undergoing expansion. By Q1 2017, the airport should double the size of its departure lounge and check-in areas, as well as add a new cargo terminal, an in-flight catering facility, more office space and other improvements to operations.

Source: Journal of Commerce, Airport Technology, Gulf News, Construction Week Online, Airport Data Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 61 - United Arab Emirates: Government Infrastructure Projects (cont’d)

A 62 km main road between Abu Dhabi and Dubai, called E311, is expected to be completed by 2017. The USD 545mn project will run parallel to the existing Abu Dhabi-Dubai (E11) motorway. It aims to ease traffic on the E11 as it is expected to increase from 700 vehicles an hour at peak time now to more than 12,000 vehicles by 2030 as a result of population growth. A 327 km Mafraq-Ghweifat main road has been rolled out by the department of transport, and is expected to be completed by 2017 as well. The USD 1.4bn project extends from Mafraq to the international border linking the UAE with Saudi Arabia in Ghweifat. The Road finished road will have three lanes in each direction, with the road expanding to four lanes in each direction in the 22km closest to the And Port borders with Saudi Arabia, from Silaa to Ghweifat. Infrastructure In the first half of 2015, work has started on USD 130mn contract to build bridges to a new island being built off the coast of the Jumeirah Beach Residence (JBR) district in Dubai. The project includes a main two-lane bridge stretching 1,400 m, as well as bridges for a “automated personal rapid transit system” connecting with the Nakheel Harbour & Tower metro station, as reported by Al Arabiya. In October 2014, Jebel Ali Port opened its third container terminal. Thanks to the USD 850mn facility, the port has increased its capacity to 15 mn TEUs per annum. However, as of May 2015, the new terminal is not yet completely operational. Once it is fully online, another 4 mn TEUs will be added to the current capacity.

UAE’s USD 10.9bn national rail network will be approximately 1,200 km long, extending from the border with Saudi Arabia to the border with Oman. It will also connect with the GCC network. The project, which is developed and operated by Etihad Rail, is organised in three phases. Phase one is already completed and comprises a 264 km network at a cost of USD 1.28bn. Phase two is at Railways its tender stage. It envisages the construction of a 628 km railroad, reaching Mussafah, Khalifa Port and Jebel Ali port. In phase three, And Public a 279 km of railroad will be built to connect Dubai to the northern regions of the country. Transport Dubai’s metro network will extend to ensure connectivity to the Expo 2020 site. In April 2015, Sheikh Mohammed bin Rashid al Maktoum approved a 15 km extension of the Red Line from Nakheel Harbour & Towers to the Expo 2020 site. At the other end of the Infrastructure line, a 3.5 km one-station has been approved. The project is expected to be tendered in July 2016. Four further lines, the Purple, Gold, Blue, and Pink ones, have been proposed and are scheduled for completion by 2030. Major public transportation projects in Abu Dhabi include the construction of 130 km two-way track metro network, and 340 km two-way track tram network.

Source: Al Arabiya, Department of Transport – Abu Dhabi, Abu Dhabi Airports, The National, Etihad Rail, Reuters Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 62 - United Arab Emirates: Biggest Infrastructure Projects

Infrastructure Projects in Top 10 Biggest Projects, Q1 2015

Project Client Contract Value, Award Year Expected USD mn Completion

Abu Dhabi Airport Expansion: Midfield Terminal Complex Abu Dhabi Airport Company 2,960 2012 2017

Distribution of Top 10 Biggest Projects by Value Industry Distribution in Top 10 Biggest Projects

4 Other industries 88.4% 3

1 1 1

Transportation Construction Power Oil Industrial

Transportation 11.6% Number of projects

Top M&A Deals in the Infrastructure Sector in MENA in 2013 and 2014*

Deal Value Stake Date Target Company Deal Type Buyer Country of Buyer USD (mn) (%)

11-Nov-14 Arabtec Holding PJSC Minority stake Aabar Investments PJS UAE 962.7 15.99 purchase (Market estimate) 14-Aug-14 Arabtec Holding PJSC Open market Undisclosed buyer(s) n/a 48 0.95 purchase (Market estimate) 12-Jun-14 Arabtec Holding PJSC Minority stake Undisclosed buyer(s) n/a 160.6 2.75 purchase (DW estimate)

Industrialization & Energy Services Co 1-Oct-13 (TAQA) Minority stake Arab Petroleum Investments Corp Saudi Arabia 45 5.62 purchase (Official data)

SETE Energy Saudia for Industrial Projects 30-Sep-13 Ltd Acquisition Haji Abdullah Alireza and Co (HAACO) Saudi Arabia n/a n/a

Nama Development Enterprises; Petrofac UAE; United 18-Jul-13 Petrofac Emirates LLC Acquisition Ltd Kingdom 70 51.00 (DW estimate) 11-Jul-13 Archirodon Group NV Minority stake Undisclosed buyer(s) n/a 190 40.00 purchase (Official data) 8-Jul-13 Arabtec Holding PJSC SPO Undisclosed buyer(s) n/a 641.1 50.00 (Official data) 30-May-13 Al Musdaq Modern Trading LLC Acquisition Al Fajar Al Alamia Co SAOG Oman 7 99.00 (Official data)

Number and Value of Deals in MENA’s Transportation Sector Number of Deals by Deal Value, USD (%)

4 500.1-1000;

22.2% 963 100.1-500mn; 1 1 1 1 1 Undisclosed;

901 22.2% 0 0 11.1% 161 7 45 48 50.1-100mn; Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 11.1% 2013 2014 0-50mn; 33.3% Total value of deals (USD mn) Number of Deals

Number of Deals by Deal Type (%) Number of Deals by Region of Investors (%)

Minority stake Saudi Arabia purchase Open market 33.3% UK 16.7% 44.4% purchase 11.1%

Oman 16.7%

SPO 11.1%

Acquisition UAE 33.3% 33.3%

Income Statement (Consolidated, USD mn) Highlights . Arabtec Holding PJSC is a United Arab Emirates-based company that is established in 1975 and acts as a Holding 9.6% Company to its subsidiaries, primarily investing in the 8.7% construction sector through the acquisition of contracting and related companies. Listed on the Dubai Financial Market 6.1% since 2004, the company is one of the largest heavy

2,667 2,667 construction players in MENA.

2,009 2,009 . Its projects vary greatly and include offshore and onshore oil

1,542 1,542 and gas installations, airport development, aircraft

193

162

134

103 58 38 maintenance hangars, passenger terminals, departure lounges, fuel tank farms, drainage & electrical high and low 2012 2013 2014 voltage, contracting services to residential projects, luxury Net Revenues EBITDA Net Profit EBITDA margin villas, hotel interiors, cinema complexes, hypermarket fit outs, food courts. Balance Sheet (Consolidated, USD mn) . The company has organised its operations in the following business lines: o High Rise Development 1.14

o Residential Development 3,911 3,911

3,490 3,490 0.28 o Hotels and Hotel Interiors o Airport Development

2,441 o Commercial Development

1,625 o Luxury villas

1,571

45 152 912 o Stadiums -2.17 o Mixed Use Development o Industry Projects 2012 2013 2014

(417.82) o Oil & Gas Total Assets Shareholders' Equity Net Debt Net Debt/EBITDA

Share Price Statement, 2014 Highlights 8.71 . Arabtec is a key contractor in some of the largest airport 6.09 infrastructure projects in UAE. They include the 5.26 4.96 construction of: 4.32 5.03 4.73 4.56 3.61 o Midfield Terminal Building at Abu Dhabi Intl Airport – a 3.91 3.51 3.18 USD 2.9 bn contract awarded to a JV between Arabtec,TAV and CCC, o Air Traffic Control Tower at Dubai World Central Intl Airport (DWC) in 2007-2008 – a USD 40 mn contract, Q1 Q2 Q3 Q4 Highest price, quarter average o Cargo Terminal Building at DWC – a USD 76 mn contract, Lowest price, quarter average o Passenger Terminal at DWC – a USD 26.7 mn contract Closing price, quarter average awarded to Arabtec/Max Boëgl JV, o Central Utility Plant at - a USD 7.1 mn contract, Allocation of Shareholders’ Equity by Geography, 2014 o TD-119 VIP Pavilion & Crew Access Building at Dubai Intl Airport – a USD 1.9 mn contract,

Arab 17% o Expansion of Terminal 2 at Dubai Intl Airport – a USD 163 mn contract, o Renovation and expansion of Dubai Intl Airport Terminal 1 – a USD 50.1 mn contract. Local 68% GCC 6% . Currently Arabtec employs over 40,000 people.

Others 9%

Income Statement (Consolidated, USD mn) Highlights

7.4% . Drake & Scull International PJSC, or DSI, became a publicly listed company in 2008 when it rolled out its IPO on the Dubai Financial Market. . The company specialises in mechanical, electrical and 6.7% plumbing services along with infrastructure, water and

1,330 1,330 power and civil construction services. 1,298 1,298 6.2%

905 905 . DSI has streamlined its operations in the following units:

o Drake and Scull Construction offers general construction

45 27 26 services for commercial, industrial, power and water as well as heavy general contracting projects. 2012 2013 2014 o Drake and Scull Engineering offers engineering (MEP and Net Revenues EBITDA Net Profit EBITDA margin Water and Power) services for large scale projects in aviation, education, mixed use, residential, tourism, Balance Sheet (Consolidated, USD mn) district cooling, hotels, commercial offices and data centres. 5.18 o Drake and Scull Rail offers complete EPC solutions for all systems and services for stations, depots and tunnels. o Drake and Scull Oil and Gas offers construction and 2,333 2,333 construction management contracting services of civil,

3.12 1,953 piping, equipment, electrical & instrumentation to the

1,753

839 811 755 petrochemical industry.

1.84 418 o Drake and Scull Development focuses on public-private 181 188 partnerships for large scale infrastructure projects in the MENA region, South Asia and Europe. 2012 2013 2014 o Passavant Energy and Environment develops Total Assets Shareholders' Equity Net Debt Net Debt/EBITDA technologies and processes in municipal wastewater, sludge, water and industrial wastewater treatment. Source: Company Data, EMIS Insight Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 69 - Drake & Scull International PJSC (cont’d)

Backlog by Business Stream, 2014 Highlights

Engineering . DSI has executed mechanical, electrical and plumbing 38% engineering works on airport infrastructure projects including: o International Airport Terminal phase II, Abu Dhabi – UAE, Oil & gas 15% o Extension for Military Airbase, Dubai – UAE, o Kai Tak Airport - Hong Kong, o Phase I Air Cargo Terminals - Hong Kong, General o New Doha International Airport CP15 – Qatar, Water contracting o Dar Es Salaam International Airport,Dar Es Salaam – 42% treatment 5% Tanzania. • The company has also incorporated HVAC (heating, Backlog by Geography, 2014 ventilation, and air conditioning), smoke ventilation, general air extraction, fire protection & alarm systems, exit Dubai 10% Abu Dhabi 8% systems, and electrical distribution systems in railway Algeria 6% infrastructure projects that include:

Jordan 7% o Channel Tunnel Rail Link Line Infrastructure - London UK, o St. Pancras Station Redevelopment -London UK, Egypt 18% Qatar 5% o Jubilee Line Extension Project - London, UK. Kuwait 2% . DSI has established offices in UAE, Saudi Arabia, Kuwait, Iraq 1% Oman, Qatar, Egypt, Jordan, Algeria, Iraq, Thailand, Vietnam, India, China, Germany, Romania, and Turkey. Saudi Arabia Others 8% 35%

Income Statement (Consolidated, USD mn) Highlights

21.0% 19.1% . Combined Group Contracting Company, or CGC, was 16.5% established in 1965 in Kuwait as a limited liability company. The company became a publicly traded shareholding company in 2006, when it was listed on the

847 Kuwait Stock Exchange with a capital of approx. USD

694 40mn.

162

444

114 93

92 . The company operates in the construction industry and its 56 24 activities include carrying out civil, mechanical and contracting work, trading of loose and packaged cement, 2012 2013 2014 manufacturing and selling in building materials and related Net Revenues EBITDA Net Profit EBITDA margin products. Balance Sheet (Consolidated, USD mn) . Through its branches and subsidiaries, CGC is present in Kuwait, Saudi Arabia, UAE, Qatar, Syria, Iraq, Lebanon and Oman. 1.48 . Among the assets owned by the company are a concrete 1.15 mixing plant with a production capacity of 160 cubic meters / hour, asphalt plants with production rate of 440 tonnes/hour, and extensive fleet of earth moving, road

paving and construction equipment, as well as pumping

915 911

838 equipment together with numerous other transportation

1,390 1,390 1,329

0.43 1,326 vehicles 169

108 . Currently CGC employs around 10,000 people. 69

2012 2013 2014 Total Assets Shareholders' Equity Net Debt Net Debt/EBITDA

Revenues by Division in 2014, KWD thou Highlights

52,357 . In the Roads & Infrastructure sector, the company has executed projects in countries like Kuwait, UAE, Qatar, 38,486 Indonesia, and Mongolia. . Some of the major road infrastructure projects that CGC 19,026 17,489 has worked on include: 5,532 5,015 o Design, construction and completion works on sea bridge connecting Kuwait City and Subiyah (project still in 1 progress). CGC’s share of total works on the bridge amounts to approx. USD 570 mn. Construction Highways Water & Electricity o Infrastructure development of small and medium scale Oil Maintenance & Services Others industrial area in Doha, Qatar. The USD 189.6 mn project was completed in March 2012. Revenues by Geography in 2014 o Infrastructure development for north residential and west waterfront areas at Lusail City, Doha, Qatar, The USD Qatar 21% 183.2 mn project was completed in January 2013. o Construction, completion and maintenance of the interchanges of the main highways (Sixth Ring Road) connecting to new housing area at South Jahra, Kuwait. Kuwait 66% The USD 140.2 mn project was completed in November, UAE 13% 2013.

Income Statement (Consolidated, USD mn) Highlights

12.2% . Founded in 1972, Galfar Engineering & Contracting 10.5% SAOG, also known as Galfar, is the largest construction 9.1% company in Oman with capabilities in the Oil & Gas, Roads & Bridges, and Civil & Utilities sectors. It operates

1,104 1,104 in Oman, and in other GCC countries as well as India. 969 969

855 855 The company is listed on the Muscat Securities Market.

. It offers to its clients various services in the domains of

116

104 88

24 engineering, procurement, construction, operations & 20.16 0.44 maintenance, and project management. 2012 2013 2014 . Galfar’s Roads & Bridges Unit was established in 1989. Net Revenues EBITDA Net Profit EBITDA margin Since then, it has completed the construction/ rehabilitation of over 1,500 km. of roads in Oman. The unit Balance Sheet (Consolidated, USD mn) has a central full-fledged materials testing laboratory for soil, asphalt and concrete testing in addition to various site laboratories. It is also self-sufficient in the production 5.95 of major road building materials such as aggregates and asphalt. 4.42 . Galfar owns 1,134 heavy machines, 794 light machines, 4.03 811 miscellaneous machines, 977 electrical machines, 69

stationary plants, 1614 heavy vehicles and 2178 light

1,306 1,306

522 513

1,284 1,284 vehicles.

1,187

421

276 267 237 . It employs more than 23,000 people and is the largest employer of Omani nationals in the private sector. 2012 2013 2014 Total Assets Shareholders' Equity Net Debt Net Debt/EBITDA

Source: Company Data, EMIS Insight Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 73 - Galfar Engineering And Contracting SAOG PLC (cont’d)

Segment Results, OMR thou Highlights

9,009 . Some of the major roads & bridges projects that are already completed include the dualisation of Wadi Adai Al Amerat Road, Rushtaq-Miskin Road, rehabilitation of Batinah Highway, and the USD 340 mn value Muscat Expressway. 1,083 1,550 1,054 107 5 61 . Transport infrastructure projects that are currently being executed by Galfar include: December, 2013 December, 2014 o Construction of Batina Expressway (Package 1), value of (126)(2,343) (2,620) contract USD 422 mn, Construction Manufacturing Hiring of equipment o Development of Salalah International Airport Project, Training Inter segments value of contract USD 236 mn, o Rasl Al Hadd Airport Development Project (Package 2, Segment Assets, OMR thou Airfield Development), value of contract USD 104 mn, o Construction of Hasik - Ash Shuwaymiyah Asphalt Road, 496,539 514,568 value of contract USD 288 mn, o Dualisation of Nizwa - Thumrait Road (Izz - Adam Section), value of contract USD 132 mn, o Dualisation of Taqah - Mirbat Road, value of contract USD 105 mn, 4,641 3,138 178 6,387 2,893 133 o Construction of Grade Separated Junctions along Batinah December, 2013 (8,738) December, 2014 (21,696) Highway - Stage 3 (Part 1), value of contract USD 59 mn, o Procurement and construction of asphalt road in the Construction Manufacturing Hiring of equipment Khazzan area, value of contract USD 24.2 mn. Training Inter segments

Income Statement (Consolidated, USD mn) Income Statement (Consolidated, USD mn) Highlights

21.0% 19.1% 16.5% . The National Marine Dredging Company was established in 1976 as a sector of Abu Dhabi National Petroleum

847 847 Company. It was then established as a shareholding

694 694 independent company in 1979. The company is listed on

162

444 444

114 93

92 the Abu Dhabi Securities Exchange. 56 24 . It is primarily engaged in the execution of dredging contracts and associated land reclamation works in the 2012 2013 2014 territorial waters of the United Arab Emirates and Qatar. Net Revenues EBITDA Net Profit EBITDA margin . The dredging and reclamation works, the company’s main business, comprise capital and maintenance dredging Balance Sheet (Consolidated, USD mn) (inclusive deepening of water passages); artificial island construction; land reclamation using dredged material; 1.48 and creating water channels, intakes and outfalls. . Since 2009, the company has diversified its operations 1.15 into marine construction as well. It includes activities like construction of breakwaters, revetments, groins and

related rock works; concrete armor protection;

915 911

838 construction of gravity quay walls, retaining and

1,390 1,390 1,329

0.43 1,326 diaphragm walls; boat ramps and slipways; beach 169

108 construction and nourishment; and marinas and pontoons. 69

2012 2013 2014 Total Assets Shareholders' Equity Net Debt Net Debt/EBITDA

Growth in 2013 vs. 2010 Highlights 19% . Among the projects undertaken by the National Marine Dredging 18% Company are dredging works to construct a “Destination Village” to host the Volvo Ocean Race in Abu Dhabi in 2011; dredging works to nourish the beach of Yas Island; rehabilitation 11% and 2.7 km. extension of the Corniche public beach in Abu Dhabi; land reclamation on Sir Baniyas Island; dredging and sand reclamation to create the Nareel Island in 2007; site preparation works on Al Maryah Island (Abu Dhabi); and 0.29% dredging and sand reclamation works to create Al Gurm Island Resort. 1 . Marine construction projects include dredging the channel and basin of the Sulphur terminal at Ruwais Port and creation of 20 Revenue growth Fixed assets growth mn m³ artificial island; dredging a navigation channel at Equity growth Share price growth Ghantoot Harbour; capital and maintenance dredging at berths 14 & 15 at Jebel Ali Port in Dubai; dredging and reclamation for Market Capitalisation vs. Equity to Market Value the new central areas of Fujairah Port, deepening of the then 1.70 existing port to a depth of -15 m. and dredging of a complete new basin to a depth of -18 m.; dredging, reclamation and 1.36 1.35 marine works for the New Fishing Port at Abu Dhabi (2009- 2011); construction of the Mussafah Channel, Abu Dhabi, (63.5 2,276 km. long, 200 m. wide; 9 m. deep); and design and 1.05 2,278 construction of a private marina (Al Bateen Marina) for the

berthing of yachts with a design depth of – 8.5 m., New Abu 2,087 Dhabi Datum.

1,959 . The company’s fleet consists of cutter suction dredgers (CSD) with capacity from the small Beaver dredger Jananah (1,795 KW) to the most powerful automated dredger the Al Sadr 2006 2007 2008 2009 (20,725 KW). The dredgers are supported by tugs and multicat crafts, and A-Frame barges wherever necessary. Market capitalisation, AED mn Equity to market value

Road Infrastructure Projects, Qatar Road Infrastructure Projects, Saudi Arabia Project Expected Project Value, Completion Value, Expected USD mn Date USD mn Completion Date New Orbital Highway and Truck route, 145 km Rennovation of Qulaiba-Abu Ajram road 757.0 Q2 2015 road section 3,760 2017 Jubail - Al Qassim expressway 97.0 July 2016 New Orbital Highway and Truck route , 44 km Contract to be awarded as of Hail - Madina dual carriageway extension 48.0 July 2016 road section May 2015 Riyadh Roads - Group 20 48.0 Q1 2017 Abu Hadriyah/ Hafr Al Batin/ Rafha road refurbishment 37.3 H2 2015 East West Corridor 1,070 2017 Madina to Tabouk expressway road 37.3 Project in progress as Dukhan Highway East, 9.7 km. of dual four-lane of May 2015 road 1,020 2017 Northern Borders roads rehabilitation 37.1 January 2016 Lusail Expressway, 5.3 km. four-lane highway 962 2017 Al Jamjom to Al Zema highway 37.0 2017 Rawdat Al Khail Street project, 10 km of new dual 2016 Jazan coastal highway extension 37.0 Project in progress as carriageway 632 of May 2015 Al Wakra Bypass, 11 km. of dual five-lane carriageway 601 2017 Yanbu to Al Sharaf roads repair 35.0 December 2015 Al Kharj to Al Gwayiyyah dual carriageway 33.4 July 2016 North Road enhancements, 95.2 km. of route 594 2016 King Fahed and Rawda road intersection 28.8 Q2 2015 Dukhan Highway Central, 15 km. of double four- 2016 Al Jawf Main Roads - Group 1 27.5 H1 2016 lane road 385 Jazan agricultural roads - Group 26 27.2 July 2016 Al Rayaan Road, Phase 1, 2.9 km. of dual Madina roads extension - Group 17 24.0 July 2016 carriageway 280 2016 Riyadh roads extension 27.2 July 2016 Al Rayaan Road, Phase 2, 5.5 km four-lane dual 2017 carriageway, 6 km of side roads and 11 km 944 Jazan roads extension 22.5 July 2015 associated service roads Makkah Road Group 21 22.5 September 2016 Local road projects 6,140 Q2 2016 Al Kharj to Riyadh/Dammam highway dualisation (approx. total diversion 21.5 July 2016 Smaller projects 288.0 Projects in progress as cost) (total value) of May 2015

Ashghal, Doha News, J&P Group, Construction Week Online, Technical Review Middle East, www.roadtraffic-technology.com, Zawya Projects via Source: KFHR Any redistribution of this information is strictly prohibited. Copyright © 2015 EMIS, all rights reserved. - 77 - Contact:

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