NTDEC EXECUTIVE FORUM Current Conflicts in Middle East Presented by the North Texas District Export Council October 21. 2014 By Riad SUKKAR International Business Development AMC Global
Topics Conflicts in the region What is MENA Why MENA is a challenging Market How is the US is doing Opportunities How we can get involved
Conflicts The Palestine Israel conflict Sahara- Morocco Conflict Arab- Iranian conflicts The Arab Spring Throughout 2011, a rhythmic chant echoed across the Arab lands: "The people want to topple the regime." It skipped borders with ease, carried in newspapers and magazines, on Twitter and Facebook, on the airwaves of al Jazeera and al Arabiya. Arab nationalism had been written off, but here, in full bloom, was what certainly looked like a pan-arab awakening. Young people in search of political freedom and economic opportunity, wishing to end a long dark time of dictators rules for the last 50 years or more.
World bank defines the region which include the following 21 countries The whole north Africa countries, East Mediterrane an Countries, Gulf countries including Iran MENA COUNTRIES Figure 1
Why MENA is challenging Market Abundant Natural Resources, so in the oil-rich Gulf region, governments are now actively seeking to leverage state oil export revenue to support the development of other sectors and expand the employment opportunity. High Population 390 Million High Unemployment rate 12.3% ( which mean labor force power is available Low Manufacturing value added % GDP 10.8% ( which means they need a lot of investment in various industries to higher the value added manufacturing for their resources. The service sector is the lowest in the world and it needs a lot of investment opportunities
As it shows her that the from the economic indicators that the GDP is so high in some countries: Algeria $189 Billion Iraq $115 Billion Iran $ 331 Billion Qatar $173 Billion Saudi Arabia 577 Billion UAE $360 Billion
MENA has a tremendous numbers in Export and import But the export numbers concentrated in few key products such as oil has 62% of the total export, while imports are also heavily concentrated on manufactured goods, which is 54% of the total imports
How is the US is doing in this Market?
MENA s Biggest trading partner is the European Union (EU), and then Japan, United States, China, and India.
MENA USA Trade Facts Export $71 Billion Import $ 123 Billion Note: 90% with eight countries only, and 65% of export to US is oil
Total outward FDI was $4,156 billion and only $56 billion invested in MENA, likewise the total FDI inward is $2.548 Million and less than 1% invested with MENA countries $17 billion
US Trade & Investment Policy with MENA US interest in Deeping economic ties with certain countries in the middle East and north Africa ( MENA) has increased in light of the political unrest and transitions that have swept the region in the beginning of 2011. In may 2011, President Obama announced the MENA Trade and investment Partnership Initiative ( MENA_TIP) Many Federal government agencies are engaged in efforts to enhance trade and investment with MENA. Current U.S trade and investment policies with MENA countries are quite varied. The US has free trade agreement with five countries ( Bahrain, Israel, Jordan, Morocco,, and Oman)., but limited tie with others such as Libya. While Iran and Syria are both subject to Trade Sanctions.
US trade Policy is focused on using the trade and investment to : Foster economic growth Promote greater economic reforms Provide support for successful and stable democratic transitions. Creating and sustaining US jobs by opening international markets How this can be done Though different tools such as bilateral agreements, and other government programs in export assistance and financing.
Opportunities -Motor Vehicles -Machinery, Aircraft -Diamonds -Electrical Machinery -Mineral fuel -Cereals Beside all of that two things the US can export to the MENA is The know how and the system And no body in the world can compete them!
It is a time of perhaps unprecedented economic opportunities and challenges for the Middle East and North Africa (MENA). If the economies of the MENA region decisively harness the opportunities that have been created by the Arab Spring, they will potentially pave the way for a new phase of vibrant economic expansion led by a young, dynamic and aspirant private sector. Signs so far show that MENA is seizing those opportunities. Economic activity has shown high growth rates since the onset of the global financial crisis which is supported by accelerated government spending and large-scale infrastructure investment. The economies of the broader MENA region also have low levels of debt compared with Europe, Japan and the US.
Risks Slow Development Process: week integration with the global economy Easy money Non democratic political institutions Week business environment Week education system Lack of infrastructure spending (mostly goes on military spending ) Woman participation in labor force is low. Oil prices instability ( effect the spending for the Gulf countries.
What Sectors we can invest? - Petrochemical sector - Energy Sector Oil, gas and solar system - Wealth Management - Mergers and acquisitions( pharmaceutical sector) - ICT Sector - Banking and finance system - Infrastructure Projects ( High ways, airports, subways, and railways ). It might be through sub-contacting. - Project management and Operation - Recycling
HOW?. - Build a clear strategy for this region through incentives programs and linking the stability process with the funding policy - Identifying the opportunities - Study the market needs - Match your products with the market ( standards, price and quality ) - Manage the market through adaptation. - Develop the Product or the service - Expand the market. Working together with Business Development consultants with deep local knowledge of the region policy and procedures and at the have a believes in the US products, service, and the System.
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