Briefing for British Plastics Federation 30th August 2018 United Arab Emirates: The Basics • Federation of Seven Emirates; Population 9.3 m • Economic growth of 1.5% in 2017 • Abu Dhabi - federal capital • Dubai - commercial capital & regional hub • UK’s 12th largest trading partner globally • Only country in the world with 2 UK embassies Dubai • Large expat population • • Multi-cultural city • Youthful, vibrant market • Excellent infrastructure • Drive to create entrepreneurial & SME ecosystem • Regional / Re-exporting hub What you need to know • If you're not here….you're not here • Invest in legal advice • Tap into goodwill • Plan to leave • Caveat vendor • Abu Dubai • Wasta • Free Zones aren’t free • See you on Friday • Take a deep breath & smile Gulf Petrochemicals & Chemicals Association (GPCA) • Represents the downstream hydrocarbon industry in the Arabian Gulf • Plastics Committee • Encourages, promotes and supports the sustainable growth of plastics • Hosts events: PlastiCon, Supply Chain Conference and Plastic Excellence Awards The Environment and Vision 2021 • Drop it! • Stop Sucking! • Run for the Oceans • Planet or Plastic? • I choose to reuse The BCB at a glance • Founded in 2014 as part of DIT trade promotion initiative • Trade Advisory Services & Incubation offered in UAE • 9 staff in the United Arab Emirates • 31 incubator clients; 12 successful graduates • 185 Trade Service projects completed Incubator: What do you need to know? • Dubai & Abu Dhabi • Foreign Branch model; 100% UK-owned • Onshore; DED licensed • Fulfils registration criteria for local entities • BBG linkage Identify potential distributor, agent or Trade Services partner Market study report Identify and verify a list of (product/service/sector contacts with company specific) profile Arrange meetings or Market Research introductions for an agreed list of contacts British Centres Site selection and research for Business into company set up Event management options including local guest list Trade Services and on the day support at British Embassies or On the ground support & elsewhere local presence for Trade Shows and other events Trade Mission support including arranging Mystery shopping networking receptions, Competitor analysis store visits, meet the Retainer: provision of buyer events and legal medium-term in-market briefings representation and support 10 Incubator Case Study: Vital Certificates Sector: Creative Company Info Service Provided: Dubai Incubator Since 2005 Vital Certificates have been arranging for UK birth, marriage & death certificates to be Service Performed reissued, and/or legalised so that overseas The BCB provided our unique low cost market governments will accept them for the purpose entry solution, the required employment visa they are needed. and a 24 month incubation for Vital Certificates to set up their second international office. The Testimonial BCB also facilitated a new classification of “I can’t recommend the support we have activity at the DED, to enable their business received from Joe and the whole team highly activity to be officially recognised in the UAE. enough. From the outset, nothing has been too much trouble, and the assistance with forging Outcomes for client valuable connections in the region was a game Vital Certificates generated over 1 million AED changer for us. in revenue in their first year, and are now looking to expand in the region and further east. They also assist in supporting BCB clients with the documentation process. 11 Trade Services Case Study: Watershed Packaging Ltd Sector: Food & Drink Company Info Service Provided: Trade Service Watershed Packaging was established in 1993 and is now one of the largest providers of Packaging Machinery, Packaging Consumables, Service Performed Printed Adhesive Labels and Printed Flexible On behalf of Watershed Packaging we Packaging. contacted 10 UAE based manufacturers, introduced their products to them, secured confirmed interest from eight of them and Testimonial planned face-to-face meetings for Watershed “The meetings that Ali set up for us were above Packaging to meet with each of them. average. We would like to work with Ali again in the future.” Outcomes for client Watershed Packaging met with eight interested contacts in the UAE to discuss prospects in person and develop commercial matters. 12 Trade Services Case Study: Seabrook Crisps Sector: Food & Drink Company Info Service Provided: Trade Services Seabrook supplies 12 million bags of crisps a month to over 1 in 4 UK households. All their crisps are vegetarian friendly and gluten free. Service Performed On behalf of Seabrook Crisps the BCB Testimonial contacted 11 UAE based grocers & distributors “I just wanted to say thanks for all of the effort in 2016, introduced their products to them, and organisation you put in. I think we had a very secured confirmed interest from all of them and productive 3 days and I really valued you taking then planned face-to-face meetings for the time to accompany me to meet all of the Seabrook to meet with each of them. buyers and distributors. The overall trip was very well managed by you and I am hoping will lead to a step forward for business in the region for Outcomes for client Seabrook.” Seabrook are now selling into the UAE and can be found in most supermarkets Contact us • www.bcbuae.com • @bcbuae • [email protected] UAE Construction sector 15 Construction (UAE) The construction & Rail industry in the United Arab Emirates is expected to sustain its workflow going forward even though overall business conditions are tougher with project activity slowing down since 2015. This will be driven by economic and demographic needs, initiatives associated with the Abu Dhabi Economic Vision 2030, Dubai Plan 2021, Expo2020 as well as tourism related projects, and the commitment from the federal government towards infrastructure investment. A number of multibillion dollar schemes, especially around Expo2020 and roads / metro infrastructure, have contributed to the increase of total contract awards in the region over the last few years. According to the Middle East Economic Digest (MEED), more than 23 Expo 2020-related construction contracts worth more than $2.5bn are expected to be awarded by the end of 2018 UK contractors / Consultants Top 10 UAE developers Major construction Web resources in the UAE related trade events • www.constructionwe 1. Kier 1. Emaar properties • www.thebig5.ae ekonline.com 2. Laing O’Rourke 2. Dubai Holding • www.cityscapegloba • www.meed.com 3. ASGC 3. Meraas / North 25 l.com • www.bncnetwork.co 4. Mclaren 4. Nakheel • www.fm-expo.com m 5. Expo2020 5. Khansaheb Interserve • www.thehotelshow. • www.thebig5hub.com 6. ARUP 6. Roads and Transport Authority 7. Mott Macdonald 7. Imkaan Abu Dhabi com • https://esource.expo2 8. Atkins 8. Aldar • www.windowsdoors 020dubai.ae 9. WSP 9. Miral Asset Management andfacadeevent.co 10. AECOM 10. Department for Culture and Tourism m • www.terrapinn.com/ exhibition/middle- east-rail Key Personnel Ivan Venantius, Trade & Investment Advisor, [email protected] Aisha Shariff, Trade and Investment Officer, [email protected] 15 Value of GCC contract awards, 2015-2017 ($m) 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Bahrain Kuwait Oman Qatar SaudiArabia UAE 2015 2016 2017 Source: MEED Projects Value of GCC contracts awarded 2017 ($m) 60,000 Total = $120bn 50,000 2017 worst case scenario = $112bn 48,413 The market performed a little better than the worst case scenario 40,000 UAE, Oman and Bahrain performed much better than expected. KSA performed substantially worse than anticipated 30,000 25,409 20,000 13,042 13,864 12,764 10,000 6,525 0 Bahrain Kuwait Oman Qatar SaudiArabia UAE Source: MEED Projects Comparison of GCC sector awards, 2016/17 ($m) 60,000 50,000 40,000 30,000 20,000 10,000 0 Chemical Construction Gas Industrial Oil Power Transport Water 2016 2017 Source: MEED Projects Outlook for GCC Contract Awards ($m) 2018 best case =$145bn 2018 worst case =$100bn 160 144.9 142.4 140.5 139.2 140 122.6 120.1 118.2 120 116.9 100 100.3 97.8 95.9 94.6 80 60 40 20 0 2018 2019 2020 2021 Forecast BestCase WorstCase Source: MEED Projects Major EPC Projects planned in the UAE Project Area Sector Value($m) Expo 2020 – Country Pavilions and event delivery Dubai Construction 1000 Emaar - Dubai Creek harbour tower and Dubai Square retail development Dubai Construction 3000 Dubai Holdings - Marsa Al Arab Dubai Construction 1700 Dubai South – Logistics, Aviation cities Dubai Construction 3000 Dubai Electricity & Water Authority HQ Dubai Construction 300 Sharjah Airport Expansion Sharjah Airports 400 DAEP : Al Makhtoum International Airport expansion phase 1 Dubai Airports 8000 RTA: Green (creek Harbour) / Red line (Mirdif) Extension Dubai Rail 4000 Etihad Rail: Stage 2 of Freight rail line linking ports AD/DXB Rail 5600 Imkaan: Makers District on Reem Island Abu Dhabi Construction 200 TDIC - Saadiyat Island: Sheikh Zayed National Museum Abu Dhabi Construction 272 TDIC / Guggenheim Foundation - Saadiyat Island : Guggenheim Abu Dhabi Museum Abu Dhabi Construction 680 Miral - Yas Bay : Hilton Abu Dhabi Yas Island Resort Abu Dhabi Construction 250 Majid Al Futtaim / Al Jazira Sports and Cultural Club JV - City Centre Al Jazira Abu Dhabi Construction 381 EXPO2020 - Masterplan Route 2020 RTA Star Emaar Expo Village DWTC CO-EX DWTC Al Wasl UAE Meraas Masdar Mobility Emaar Sustainability Emaar 21 EXPO 2020:Progress and Timescales Milestones 22 EXPO 2020 - Progress and Timescales Major Contracts 23 Challenges