New Focus for Business

Transcription

1 New Focus for Business The six Arab states of the Gulf that joined up 20 years ago to form the Gulf Co-operation Council (GCC) Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Bahrain and Oman share the advantages of a common Islamic heritage and oil wealth. They have been tested by international political and military crises, including the invasion of Kuwait but it is as centers for business and leisure that their fortune will be made in the 21st century. Two countries Qatar and the UAE are setting the pace for liberalization and pro-business policies. With its vast gas reserves Qatar, once a sleepy backwater, is a land of opportunity for its own citizens and foreign investors alike. The present Emir HH Shaikh Hamad Ibn Khalifa Al Thani s accession started a transition that has seen women get the vote and the economy moving ahead. Work-in-progress in the capital Doha includes not just infrastructure projects but huge new public and private sector investments in world-class tourist hotels, theme parks, shopping and sporting attractions. The Gulf states exhibit a new willingness to work together. The Dolphin project is an ambitious scheme to link Qatar, the UAE and Oman with a gas pipeline. While cities like Dubai, Abu Dhabi and Doha compete in tourism, they also share experiences. "Qatar is a very progressive and fast-paced country," says Sheikha Lubna Al-Qasimi, managing director of Tejari.com, Dubai s leading B2B marketplace. "Knowing what has taken place in Qatar so far, I do believe they are quite advanced in the way they plan their future." Both Qatar and the UAE are ideal locations for access to emerging markets. Their principal regional markets represent 1.5 billion consumers from the Gulf, the Indian Sub-Continent and East Africa. Indeed Sheikha Labna has found that the largest number of hits on Tejari.com are Saudis. While she values her Gulf traditions she points out that the UAE has the advantage of a "world" culture. "This is quite an element in the UAE," she says. "You can have 120 nationalities working here in harmony with no crime compared to other countries. This is quite a phenomenon."

2 Special Advertising Section UNITED ARAB EMIRATES UAE Leads in Middle East Business Richard Brandson opening Megastores in Dubai S2 Our unwavering aim is to make this the best place to do business, the top tourist destination and transport hub of the region and the undisputed commercial and communications capital of the Middle East The United Arab Emirates, still a major exporter of oil and gas, is leading the whole Middle East into the 21st century as the dominant center for business, investment and tourism. "Our unwavering aim is to make this the best place to do business, the top tourist destination and transport hub of the region and the undisputed commercial and communications capital of the Middle East," said HH General Sheikh Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and UAE Defence Minister, at the recent Dubai International Air Show. Indeed such is the UAE s confidence in the future that the Dubai-based Emirates airline has since the September attacks on New York and Washington announced its largest ever aircraft order, valued at a massive $15 billion for advanced Boeing and Airbus jetliners. Emirates chairman HH Sheikh Ahmed Bin Saeed Al Maktoum said:" We are determined not to allow present difficulties to deflect our resolve." Dubai often sets the pace in commerce within the federation of the seven emirates that comprise the UAE, a country the size the State of Maine. Yet the capital Abu Dhabi, and the other five states Sharjah, Ras Al Khaimah, Fujairah, Ajman and Umm al Qaiwain all contribute to the character of a country that gained independence exactly 30 years ago. UAE President HH Sheikh Zayed Bin Sultan Al Nahyan, also the Ruler of Abu Dhabi, has provided continuity and stability ever since the creation of the union. He is ably supported by the Vice President and Ruler of Dubai HH Sheikh Maktoum Bin Rashid Al Maktoum. The UAE s leaders have a clear vision of where they are heading faced by challenges from global economic slowdown and international terrorism. "Our country today stands foursquare at the world s crossroads, and has transformed itself into a major player on the global stage," said Sheikh Mohammed, the architect of Dubai s economic resurgence over the past 15 years. "Our goal now is to expand its dynamic growth into every area of commerce, tourism and transport." Sheikh Mohammed then referred to Dubai s latest projects. "Massive housing developments are rising from the sand. Two huge offshore islands visible from space will double our coastline. Dubai airport will grow to handle five times the 14 million passengers a year it sees today. We are not content simply to wait for the future we are building it." The Palm development, described as Dubai s new crown jewel, is aimed at enhancing Dubai s appeal to upmarket tourists. Both islands will be created in the shape of palm trees and consist of 17 fronds surrounded by protective barrier reefs extending five kilometers offshore. "The islands are yet another icon of Dubai s great vision of the future and will serve as an example of the UAE s commitment to a diversifying economy and broadening property ownership within the community," says Sultan Bin Sulayem, chairman of Dubai Palm Developers and executive chairman of the Ports, Customs and Free Zone Corporation. In an era when joined up government is still an aspiration in the west, Dubai leads the way. Under Sulayem s leadership, Dubai offers investors a world of opportunity through the Jebel Ali Free Zone. The rules allow for 100% ownership rights and full management control, a 50-year guarantee of no corporate or personal taxes, no customs duties or trade barriers and full and free repatriation of capital and profits. Since 1991, the Dubai Ports Authority (DPA) and its twin terminals of Port Rashid in Dubai City and Jebel Ali, 35 kilometers from the

3 left: Minister of Petroleum H.E. Obaid Bin Saif Al Nasri right: Chairman of Dubai Duty Free Zones & Emirates Airlines HH Sheikh Ahmed Bin Saeed Al Maktoum downtown, can boast one of the world s highest cargo handling capabilities. They are firmly established as one of the fastest growing distribution hubs. Over 100 shipping lines serve Dubai through the DPA ports, making Dubai one of the great world transshipment centers. Responding to a government initiative, the Free Zone is complemented by Dubai Internet City and Dubai Media City and an innovative digital marketplace project Tejari.com - Oracle is providing the marketplace software technology and hosting platform. Headed by managing director Sheikha Lubna Al Qasimi, recently named IT Woman of the Year by the Aberdeen Group s Middle East affiliate Datamatix, the online marketplace enables buyers and sellers to transact Special Advertising Section and share information on goods and services through the Internet. However, Sheikha Lubna is also mandated to revolutionize public services. "To me the e- government in Dubai is a big picture," she says. "It s a very strong culture within the core of government that we are Dubai Inc. We don t have unions, we don t have any taxation, and we don t have complications. So it is very easy and simple. Who wants it? How are we going to do it? Does it work? No, we ll change it." Emirates airline chairman Sheikh Ahmed is the linch pin of another Dubai government strategy boosting tourism to 10 million visitors a year by Diversification is vital since oil sales are now only 7% of Dubai s GDP. Last year Dubai International Airport had 12.3 million passengers and 3.5 million people stayed in the city s hotels. "By the year 2006, as one of the fastest growing and most successful airlines, Emirates expects to fly more than twice as many customers as it does now," says Sheikh Ahmed. " We are ordering the aircraft of tomorrow whose time has come today." The Emirates airline dedicated terminal at Dubai International Airport, to be completed in 2005, together with a new cargo terminal, has a capacity of just over 20 million passengers a year "bringing our total capacity to around 45 million passengers a year," says Sheikh Ahmed. By the end of 2001, cargo will match the passenger growth with an annual air cargo throughput of 850,000 tonnes. We are determined not to allow present difficulties to deflect our resolvet A measure of this success is Dubai Duty Free that last year had revenue of $220 million the world s seventh biggest airport group by revenue and is on course to increase that figure this year. "We handle about 18,000 transactions a day in the Duty Free," says managing director Colm McLoughlin. "We move 24 million units of merchandise every year." With 29 nationalities at the Duty Free, speaking 37 languages, this is a microcosm of Dubai s commercial success. Dubai Duty Free is bullish about publicity and marketing. Its program includes sponsorship of horse racing in Dubai and overseas as well as ownership of a men s tennis tournament on the Association of Tennis Professionals tour. SPACIOUS The world s most luxurious all-suite hotel, re-defines everything you have ever expected of a hotel. Indulging your every wish, exceeding all your expectations and pampering you in exceptional style. Burj Al Arab. Isn t it time you lived your dreams? Member of THE WORLD S MOST LUXURIOUS HOTEL BURJ AL ARAB, P.O. Box 74147, Dubai, U.A.E. Tel: , Fax: , Website: burj al arab S3

4 PORTS, CUSTOMS AND FREE ZONE CORPORATION Business As Usual in Dubai Backed by more than 2,000 national and multinational companies from some 97 countries, Jebel Ali Free Zone, 35 km from the heart of Dubai city is a testimony to Dubai s business acumen and ability to adapt to changes in the international trade scenario. As leading trading hub between east and west, Dubai has maintained its "business as usual" principle, providing a boost to investor confidence throughout the region. if you are a global player you have to be here. This is an emerging market with strong growth potential Dubai is the ideal warehousing, distribution and industrial pivot, providing access to over 1.5 billion consumers in the AGCC, Iran, Indian SubContinent in addition to growing markets in Russia and the former Soviet states and Africa. With its outstanding tax and business incentives and voracious appetite for new technology, Jebel Ali Free Zone Authority (JAFZA) more than lives up to its mission to provide a first class infrastructure and modern facilities supported by quality value-added services. As Part of the international division Sultan Ahmed Bin Sulayen Executive Chairman, Dubai Ports, Customs and Free Zone Corporation Dubai Global, Jebel Ali Free Zone International is taking the Free Zone expertise offshore throughout the Middle East and Africa in addition to Dubai Ports International which has secured the container terminal management of Jeddah and Djibouti. Since setting up in Dubai in 1998, HP has doubled its Middle East business Over 100 of the world s major container shipping lines call at Dubai s container terminals of Jebel Ali and Port Rashid. Dubai International Airport, only 30 minutes by road from Jebel Ali Free Zone and Port, enjoys one of the fastest sea-air transfer times for cargo in the world. Consumers, investors and visitors converge in Dubai, and this renowned "the City of Merchants" is expected to attract over 10 million tourists each year by The day-to-day management of JAFZA is in the capable hands of Sultan Bin Sulayem, executive chairman of the Dubai Ports, Customs and Free Zone Corporation, a merger of three authorities joined together to offer the business community strategic leadership and streamlined, high quality services. One of his greatest concerns is to convey the message that Islam is a peaceful religion and that Dubai in particular incorporates into its pragmatism, safety and keenness to progress new projects and development, especially in tourism and technology. We are serving 12 markets from Dubai and are responsible for close to $1 billion of revenue "If people are hesitant to do business, if people stop living, then the terrorists will have won," says Sulayem. "Everybody is suffering from the attacks in the US but this insecurity will not have any long-term effect. There is global fear but we have to live with it." Earlier this year Bin Sulayem unveiled plans for the world s largest man-made islands off the Jebel Ali coastline. The Palm, two islands in the shape of palm trees, will incorporate 2,000 luxury villas, 40 leading hotels, shopping arcades, world class sporting facilities and a marine park. The islands will be visible to the naked eye from outer space and will add a further 120km of sandy beach to Dubai s already spectacular coastline. we can run our business as we wish without Sulayem s confidence any outside interference in Dubai is echoed by Hewlett-Packard, whose spokesman in Dubai says, "if you are a global player then you really have to be here. This is an emerging market with strong growth potential that can only be realized by having a secure local presence as HP has found." Since setting up in Dubai in 1998, HP has doubled its Middle East business and being located in the Free Zone HP says, "we can run our business as we wish without any outside interference." DaimlerChrysler Middle East has housed its entire regional management in custom-built offices at Jebel Ali Free Zone and operates a training and regional logistics center from Dubai. "The combined organization today totals 63 employees working in our own extensive facilities. We are serving 12 markets from Dubai and are responsible for close to $1 billion of revenue," says Per V. Rasmussen, president and CEO. Despite its rapid progress and prosperity, Dubai has never sacrificed quality for growth, a principle supported and appreciated by international investors from around the world. Ports, Customs and Free Zone Corporation P.O. Box 17000, Dubai, United Arab Emerates Tel: , Fax: , Tlx: DPA EM

5 left: Dubai Duty Free, Managing Director Colm McLoughlin right: Tejari, Managing Director Sheikha Lubna Al Qasimi "Last year we had the first ever World Tennis Association sanctioned women s tennis tournament here and the world Our goal now is to expand its dynamic growth into every area of commerce, tourism and transport We are not content simply to wait for the future we are building it number one Martina Hingis won," says McLoughlin, a veteran of 18 years in Dubai. The UAE has an outstanding offer for visitors seeking to enjoy the sunshine, beaches, leisure and sport at worldclass hotels, such as the Burj Al Arab, Jumeirah Beach Hotel and Emirates Towers, all part of Jumeirah International of Dubai. Jumeirah International, which is totally committed to the exponential growth of Dubai as a business and leisure destination, has established itself as global pacesetters in the highest standards of service. The Burj Al Arab, already a Dubai landmark, with its billowing sail-shaped architecture, is the ultimate in luxury, combining the latest in technology with longstanding traditions of Arab hospitality. Emirates Towers, both the hotel and offices, were designed to meet the needs of the business traveller a fast growing segment of the hospitality industry in Dubai. The 2003 annual IMF meeting is scheduled for Dubai the first time ever in the Middle East. "That will launch Dubai onto another level of convention venue. The commitment to meetings Special Advertising Section and conventions is fantastic, " says Gerald Lawless, managing director of Jumeirah International. "The Government of Dubai also had a vision of what was going to happen in terms of tourism, and we came on board to actually run it. We ve expanded rapidly and we ll see what we do in the future. If something interesting comes up, we ll have a look at it." The extensive Jumeirah Beach Club, one of Jumeirah International s luxury properties, offers water sports, gymnasium, tennis and swimming in one of the UAE s most exclusive locations. It comprises 48 junior suites and two beachfront Paradise suites all fully equipped with high-tech gadgets and services. The neighbouring Jumeirah Beach Hotel s close proximity to Dubai s business districts, world-class international golf course and shopping malls make it the perfect base for business and leisure travellers. Lawless says Dubai is already showing strong signs of recovery from the tragic events in the US. "All the cancellations were short-term immediately after the attacks," he says. "For the New Year holiday period we have normal bookings. I believe there is plenty of room for expansion in terms of the tourism and S5 leisure industry. We have announced plans for a new Medinat Jumeirah resort of 900 bedrooms 300 rooms will be ready in 2003 before the IMF meeting. Jumeirah International is investing in Dubai s future through establishing the Emirates Academy of Hospitality Management, accepting students for degree courses from the UAE and overseas. "There is a huge demand for training in this part of the world." says Lawless. "The purpose of setting up this academy is to have a company focussed on tourism here. I hope we will have many UAE citizens interested in this The islands are yet another icon of Dubai s great vision of the future business." Lawless also praises the UAE leadership s business acumen and social responsibility. "No product, no city, no country thrives or expands at the pace of Dubai or the UAE without two major ingredients," he says. "One is leadership the other is energy. The respect people have here for the rulers of Our Mission is to become the premier universal Islamic financial institution, operating in accordance with Shari a principles, by sharply focusing on customer needs, offering innovative products and services, motivating and rewarding our employees, and using state-of-the-art service delivery systems, while maximizing investors and shareholders returns. For more information, please contact: Ahmed M. Elshall SVP Strategic Planning & Financial Control Abu Dhabi Islamic Bank Tel: (971-2) Fax: (971-2) elshall@adib.co.ae

6 this country is amazing because they have the country s needs at heart and the vision, energy and leadership to make it happen." Quality of service is an aspiration within the whole UAE. The 236-room Crowne Plaza Hotel in Abu Dhabi offers we are Dubai Inc. We don t have unions, we don t have any taxation, and we don t have complications 11 state of the art meeting and conference rooms, ideally situated in the heart of the capital s commercial and business district and is described by general manager Jihad Hazzan as "the perfect place for business and pleasure". The UAE also derives its strength from its respect for traditional Arab and Islamic values. The UAE Central Bank presides over a soundly based financial infrastructure where its 47 banks are profitable and well managed. "We have no inflation, because our borders are open," says the central bank s governor Sultan Bin Nasir Al Suwaidi. "We have adopted the World Trade Organization principles a long time ago. We are following the developments in Basle and the new capital Basle accord, which we have studied. We are going to adjust our systems in the near future for it. The other issue is to put in systems to conduct anti-money laundering policies within the banking sector and the financial sector as a whole." Al Suwaidi is a passionate advocate for the strengths and freedoms implicit in the liberal and pro-business UAE economy. "We are very competitive with good facilities, infrastructure, telecommunications, roads, ports, airports and storage," he says. "We have open policies towards foreign labor. The entry of foreign labor has been free so there is no restriction on expertise that can be imported from outside. This puts the UAE in an important position versus the rest of the world because other countries impose restrictions." Perhaps the most innovative UAE banks is Abu Dhabi Islamic Bank (ADIB), established in 1998 and now the 12th largest in the country in assets and deposits. Islamic banking s distinguish S6 feature is its being asset backed as opposed to being based on interest and that financing must comply with Islamic ethics, ruling out tobacco, gambling and liquor. However, this has not prevented ADIB, whose mission is to become a universal Islamic bank with a reputation for By the year 2006, as one of the fastest growing and most successful airlines, Emirates expects to fly more than twice as many customers as it does now service delivery, from taking part in large scale project finance, such as the syndicated deal for the regional Thuraya Satellite Company, in which ADIB underwrote the Islamic tranche of $100 million. Recently, ADIB made two strategic investments involving an Islamic ratings agency in neighboring Bahrain and an Islamic bank in Bosnia, both of which are sponsored by the Jeddah-based Islamic Development Bank. Energy exports, however, principally We are ordering the aircraft of tomorrow whose time has come today from sales of million barrels of crude oil a day, underpin the UAE s diversification strategy with up to 90% of the federal government s budget derived either directly or indirectly from the oil sector. The Minister of Petroleum and Mineral Resources HE Obeid Bin Saif Al Nasri is clear about the government s commitment to reduce dependence on hydrocarbons and to concentrate on maximizing the potential for sales of environmentally-friendly products such as liquefied natural gas. While the minister is adamant that OPEC should avoid increasing production because of the slowdown in the global economy he considers that the "inherited" policy of keeping oil prices as low as possible is not fair and has to be corrected. "The correction should be gradual rather than sudden, so that oil-producing countries get a fair price for their product," he says. "Otherwise it will have an adverse

7 Special Advertising Section Our Mission is to become the premier universal Islamic financial institution, operating in accordance with Shari a principles, by sharply focusing on customer needs, offering innovative products and services, motivating and rewarding our employees, and using state-of-the-art service delivery systems, while maximizing investors and shareholders returns. For more information, please contact: Ahmed M. Elshall SVP Strategic Planning & Financial Control Abu Dhabi Islamic Bank Tel: (971-2) Fax: (971-2) elshall@adib.co.ae left: Dubai Duty Free, Managing Director Colm McLoughlin right: Tejari.com, Managing Director Sheikha Lubna success. Dubai Duty Free is bullish about publicity and marketing. Its programme includes sponsorship of horse racing in Dubai and overseas as well as ownership of a men s tennis tournament We are not content simply to wait for the future we are building it on the Association of Tennis Professionals tour. "Last year we had the first ever World Tennis Association sanctioned women s tennis tournament here and the world number one Martina Hingis won," says McLoughlin, a veteran of 18 years in Dubai. The UAE has an outstanding offer for visitors seeking to enjoy the sunshine, beaches, leisure and sport at worldclass hotels, such as the Burj Al Arab, Jumeriah Beach Hotel, Emirates Towers and World Trade Centre Hotel, all part of Jumeriah International (JI) of Dubai. JI, which is totally committed to the exponential growth of Dubai as a business and leisure destination, has established itself as global pacesetters in the highest The islands are yet another icon of Dubai s great vision of the future S7 standards of service. The Burj Al Arab, already a landmark symbol of Dubai, with its billowing sail-shaped architecture, is the ultimate in luxury, combining the latest in technology with longstanding traditions of Arabian hospitality. The 2003 annual IMF meeting is scheduled for Dubai the first time ever in the Middle East. "That will launch Dubai onto another level of convention venue," says Gerald Lawless, managing director of JI, whose luxury properties in Dubai include the Jumeirah Beach Club.

8 left: Qatar National Bank, General Manager Saeed Al Misnad (photographer, John Lawrence) right: Qatar Industrial Development Bank, General Manager Sheikh Hamad Hasser Al Thani ambitious projects, Qatar can rely on a new generation educated since oil wealth began who are returning in droves from higher education in the US and Europe. model hydrocarbonsbased economy, with a sound diversification strategy The architect of its conspicuous success in global banking circles is Minister of Finance, Economy & Commerce HE Yousef Hussain Kamal, born in 1948 and known as the Gulf s Iron Chancellor for his rigid fiscal prudence. "The government has borrowed more than $10 billion and going forward we are going to invest over $11 billion," says Kamal, "We have reached our peak and the level of our debt challenges resulting from globalization, information technology and the commitments inherent in WTO membership rated BBB+ by ratings agency Standard & Poor s - will start to fall." The balance of payments is now in surplus and borrowing is targeted at world-class projects that will bring in future revenue, especially from gas since only Iran and Russia exceed Qatar s reserves of at least 300 trillion cubic feet. Added to this the government is committed to support the private sector and has completed the privatization of the state-owned Qatar Telecommunications (Q-Tel), of which Special Advertising Section 10% was sold to foreign investors including some from the US. With the twin pillars of earnings from sales of 10 million tons a year of Liquefied Natural Gas (LNG) and 720,000 barrels a day of crude oil, Qatar has a well developed wholesale and retail banking community with Qatar National Bank (QNB) at its apex. Established in 1964, and with total assets exceeding $6.7 billion, QNB was recently rated Best Bank in Qatar for the fifth consecutive year by the leading capital markets magazine Euromoney. The government is committed to spending the equivalent of QR70 billion over the next five years, of which 80% will go on industry and the rest on infrastructure. QNB s chief executive and general manager Saeed Al Misnad says some of the major petrochemical units and the proposed causeway between Qatar and neighboring Bahrain require huge funding. His bank has participated in major syndicated facilities for Qatari corporates, including the Qatar Fertilizer 4 expansion project, the RasGas II LNG plant, the financing of new fleet of six Airbus jetliners for Qatar Airways and a term-loan for Qatar s first private sector healthcare project the Al Ahli Hospital Company. Corporate and investment banking is only part QNB s offer to its customers as a full service domestic and regional bank and the largest broker on the Doha Securities Market (bourse). With 30 branches supported by 50 ATMs, its network is the largest in Qatar as well as the most innovative with the inauguration of Qatar s first fully-automated self-service e.branch, open 24/7. The bank s new strategy will focus on expanding its involvement in syndicated loans and will examine cross-border opportunities. QNB is fully aware of the new challenges resulting from globalization, information technology and the commitments inherent in WTO membership and believes these developments will be positive for the whole Qatari banking sector. QNB positions itself as the "partner of choice" for all aspects of banking requirements arising from trade and investment flows to and from Qatar. Another major player is Qatar Industrial Development Bank (QIDB), established in 1997, and now scheduled to have its capital tripled to QR700 million as part of a major revamp for the country s first specialized bank. QIDB is slated to become the principal facilitator of industrial growth in Qatar and Qatar Steel Company - the Gulf's first integrated steel mill - puts Qatar at the forefront of technological development the Finance Ministry is engaged in a restructuring exercise to transform the bank into a public corporation. Its current role is not only to provide long and medium term soft loans to industrial projects but also to stimulate new industries by accessing sources of capital and new technologies and by assessing sound industrial investment opportunities. Its new role will enable QIDB to open channels for more foreign investment in Qatar including joint ventures in sectors such as agriculture and fisheries that will improve soil and water usage. It will also support export-oriented projects to make textiles and medical equipment. S8

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