Vision 2030 (2013)

VISION 2030

Jurisprudence Economics Geopolitics

Foreign Direct Investment Financial Services Energy

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AIB Corporate Banking Ireland Making Business Happen

Contents Liberty, Democracy & the Social Contract A discussion of the jurisprudential questions that arise from the NDAA

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Energy

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The Monetary Conundrum A look behind the headlines into the fundamentals of the international monetary system

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Pioneering the Cleantech Agenda An interview with Jim Rice, Managing Director of Schneider Electric Ireland

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The International System and its Discontents Questions that need to be raised about the role played by the World Bank and the IMF

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Ireland explores the potential of Ocean Energy A look at Ireland’s attempts to commercialise a new industry Energy Saving Innovation An interview with Jeremy Hendy, Nujira

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Foreign Direct Investment in Ireland

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Foreign Direct Investment in Abu Dhabi

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Banking Services for FDI in Ireland An interview with Diarmuid O’Neill, Head of International Corporate Banking, AIB

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Attracting Industry to Abu Dhabi An interview with H.E. Mohamed H. Al Qamzi, CEO of ZonesCorp

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The Irish Food Industry An interview with Aidan Cotter, CEO of Bord Bia

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Finding an Ideal Partner in Abu Dhabi, A profile of PAL Group

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Editor:

Grant Leech

Head of Cleantech:

Niall Dolphin

Head of Design:

Anton Lebed

Photography:

Adis Banda

Copyright 2012. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, without the prior written premission of CEO Financial Ltd. Whilst every effort has been made to ensure the accuracy of the information contained in this publication, the authors and publisher accept no responsibility for any errors it may contain, or any loss, financial or otherwise, sustained by any person or organisation using this publication.

Produced by: CEO Financial Ltd. , Co. Dublin, Republic of Ireland., Tel.: +353 87 747 3779

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Liberty, Democracy & the Social Contract

“The true democrat is he who with purely nonviolent means defends his liberty and, therefore, his country’s and ultimately that of the whole of mankind” - Mahatma Gandhi In the early thirteenth century, in order to keep the throne, King John of England signed into law the Magna Carta. He did so at the behest of a group of barons and powerful noblemen who could no longer countenance a regime in which the rights of men could be usurped with the whim of a single man, namely the king.

“No freemen shall be taken or imprisoned or disseised or exiled or in any way destroyed, nor will we go upon him nor send upon him, except by the lawful judgment of his peers or by the law of the land”.

- Article 39, Magna Carta, 1215.

Thus, it was enshrined into law that the life, liberty or property of free subjects of the king could not arbitrarily be taken away. This crucial document begot the seeds of due process from which the jurisprudence of all civilised jurisdictions has grown.

Hollywood has made us all very familiar with the Miranda rights – those four declarative statements, followed by a question;

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“You have the right to remain silent. Anything you say will be taken in evidence, and may be used against you in a court of law. You have the right to an attorney. If you cannot afford one, one will be appointed for you. Do you understand these rights?”

There is a reason that apprehended suspects are informed of these rights at the point of arrest. The first thing that they are informed of is their privilege against self-incrimination. They have a right to remain silent, ie. they are not obliged to say anything that may incriminate them and be used against them in court. Why? Because a fundamental building block of our criminal jurisprudence is the presumption of innocence. In a democracy, everybody is innocent until proven guilty. They have a right to an open trial before a jury of their peers, and their guilt must be proved beyond a reasonable doubt. That is the basic rubric under which our criminal justice system functions and it is the result of the evolution of legal doctrine over nearly 800 years.

Enter Bradley Manning – the US army private who allegedly leaked US government documents to Julian Assange’s Wikileaks. A pre-trial hearing recently concluded in a military courtroom in Fort Meade, Maryland. Divulging state secrets is of course a crime, of which he may indeed be convicted. Many have argued that Manning’s actions were those of a conscientious objector, laying the truth bare before the world so that we can all make our own

minds up. The case is reminiscent of that of Daniel Ellsberg, the legendary whistleblower behind the “Pentagon Papers” saga, who released a top-secret Pentagon study of US government decision-making in relation to the Vietnam war. Ellsberg has come to be regarded as a man of uncommon courage, who put his own safety at risk in order to expose government malfeasance.

Regardless of the details of the particular case, it is clear that the manner in which Manning has been treated since his arrest marks a departure from the legal doctrine that has evolved since Magna Carta.

Manning was arrested on May 26th, 2010. For much of that time, he was kept in solitary confinement.

Much of the testimony at the pre-trial hearing concerned the conditions in which his was held. It was argued that the conditions were tantamount to torture.

This lapse in democratic standards is an extension of the flagrant violation of the Geneva Convention that first began in Guantanamo Bay. Guantanamo could be viewed as solely a George W. Bush project. It is now clear that Bush lied about weapons of mass destruction, and hence, is responsible for the calamity in Iraq, a massive loss of innocent life and the havoc that was wrought thereafter. The suspension of the legal

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rights of detainees, some may argue, was simply an unfortunate by-product. Some may argue that Obama tried to un-do Guantanamo and just found it far more difficult than he had anticipated. Maybe. But the fact of the matter is that the Bradley Manning case is happening on Obama’s watch.

History will also show that Bush used 9/11 as a pretext to undermine the civil liberties of the citizenry of the United States by introducing the Patriot Act and its sequel. When he was first elected, it was unthinkable that Obama, as a former lecturer in Constitutional Law would ever entertain any legislation that usurps rights that have been protected for centuries.

Unfortunately, the unthinkable has come to pass.

On 31st December, 2011, he signed the National Defence Authorisation Act (NDAA) 2012 into law.

Section 1021 of this law allows the U.S. Government to detain people, even US citizens indefinitely without trial.

Section 1021 of the NDAA is in direct contravention of the United States Bill of Rights, the document that has underpinned the democratic rights of the citizenry of the United States since 1789. It does away with the Fourth Amendment of the U.S. Constitution which states, “The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no warrants shall issue, but upon probable cause, supported by oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.”

This law also does away with the cornerstone legal principle of Habeus Corpus, the origins of which date back to 1640.

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Section 1021 also gets rid of the aforementioned Miranda Rights, which entitle an accused person to legal representation and to a trial by a jury of their peers.

This act has set the scene for the reversal of hundreds of years of legal evolution. It undermines the rule of law and puts us on the fast track back to the Dark Ages. This legislation is begging to be abused, and will offer no recourse to its victims. As former presidential candidate and champion of the constitution, Ron Paul said in the House of Congress, the NDAA represents “a slip into tyranny”.

Thankfully, there has been resistance in the courts led by former New York Times reporter Christopher Hedges. In the case of Hedges v. Obama, U.S. District Court, Southern District of New York (Manhattan), District Judge Katherine Forrest wrote, “Here, the stakes get no higher: indefinite military detention - potential detention during a war on terrorism that is not expected to end in the foreseeable future, if ever. The Constitution requires specificity - and that specificity is absent”.

Forrest made permanent a preliminary injunction against the law that she ordered in May, ruling that the statute violates rights guaranteed by the First, Fifth and 14th Amendments to the U.S. Constitution.

The White House has however appealed the verdict and a federal judge in New York, Raymond Lohier, granted the Obama administration an “emergency” stay that temporarily blocks the ruling made by Judge Forrest. The case is ongoing.

“Don’t interfere with anything in the Constitution. It must be maintained, for it is the only safeguard of our liberties”.

- Abraham Lincoln, 16th President of the United States

The rapid onset of technology is something that the ruling classes are still grappling to come to terms with. Obama advisor and geopolitical theorist, Zibignew Brezinski said, “For the first time, we are dealing with the political awakening of humanity�.

Indeed, he is right. The internet has enabled more people than ever before to educate and politicise themselves, over and above what has been served to them by the un-enquiring and self-censoring corporate media. The bungled attempts by the Obama Administration to arrest this political awakening in a Chinese-style regulation of the internet (under the pretense of protection of intellectual property) by means of the proposed SOPA ( Stop Online Piracy Act) & ACTA (AntiCounterfeiting Trade Act) legislation represented the first attempts by a Western power to exercise control over cyberspace.

A particular irony about recent global developments is that, as democracy has being systematically attacked, curtailed and suppressed in traditionally democratic Western societies, the Arab Spring meant that democracy finally blossomed throughout the Middle East and North Africa with revolutions against political dictators.

The massive displays of people-power in Tahrir Square inspired the Occupy movement in the West which railed against political corruption, the banking system and a new breed of capitalism that had lost all conscience. Scenes of police cracking heads of peaceful protestors became widespread. Coupled with those emanating from Greece and its austeritycrippled populace, one viewing these unfolding events could be forgiven for thinking that Western society hangs in the balance between liberty and democracy on the one hand and tyranny on the other.

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When the Greek Prime Minister had the audacity to propose putting a referendum on matters economic to the people, he was promptly removed from office and replaced by a technocrat until a new leader could be elected. How ironic that this should happen in the very birthplace of democracy itself.

A similar fate befell Italy after Berlusconi stepped down as president, only to be replaced by Goldman Sach’s technocrat, Mario Monti. Add to the mix a flawed international banking system run amok with corruption and thievery and the demise of the sovereign as it, in Ireland’s case, panders to the orders of the International Monetary Fund, the European Central Bank and the European Union.

Balance that with the Occupy movement and the actions of an international hodge-podge of superintelligent, idealistic hackers, and it is apparent that we are living through some very interesting times indeed. We are seeing the ebb and flow of democracy and tyranny right in front of our eyes. The forces that will undoubtedly shape our future are very much in conflict.

Any one of the above points could be explored in far more detail, and indeed, they will be throughout the rest of this publication. Having set the scene, and endeavored to point out the forces at play, the central point that I would like to make is regarding democracy and the social contract, as this becomes increasingly important as we see signs of tyranny entering our democracy.

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The argument that we should look to the past in order to anticipate the future is a compelling one.

In times of turbulence such as we are living through today, it is only wise and prudent to cast our eye back to see whence we have come, in order to make an informed decision as to the direction in which we should proceed.

The central tenet of all social contract theory is the concept that political authority is dependent on the consent of the people. When that consent is withdrawn, so is the authority. The social contract necessarily bestows a duty on those in authority to act in the best interests of those they govern, lest they fall short and be relieved of that authority.

In this age of rapid technological development and increased connectivity, it is easy to appreciate that it was the invention of the printing press that signalled the dawn of a new era, the Age of Enlightment.

The mid-17th Century was a time when several intellectuals wrote treatises of governance that have had profound on how we live today.

Ever since the Age of Enlightenment, democracy and capitalism have been happy bedfellows. In times past, when communists or anarchists decried the shortcomings and inequalities that inevitably arose from capitalism, the capitalists could always point to the inherent virtues of the democratic method as its saving grace. Democracy gave everybody a say in how society should be run, and it kept tyranny at bay.

In 1651, a book by Thomas Hobbes named Leviathan was published. It introduced the theory of a social contract between the ruler and the ruled. The concept of a de facto agreement between governments and those that they govern came to be widely accepted in political thought. Hobbes was in favour of absolute monarchies in which the citizenry would cede some rights to the sovereign for the sake of protection.

Subsequent to Hobbes, came John Locke, a more noteworthy contributor to the theory. Locke believed in the natural rights of men and his work was the driving force behind that most egalitarian of documents, the American Declaration of Independence.

2011 marked an unfortunate departure in this happy coupling. Just as the ubiquity of the internet marks the end of the age of the printing press, this new twenty-first century “capitalism�, (which in effect bears little resemblance to the free market principles its proponents espouse), is increasingly detrimental to the democratic ideals we hold so dear. Couple this with opportunism that has been displayed by the ruling class in curtailing the rights of individuals and the threat that democracy now faces becomes clear.

History has shown that economic crashes are prone to lead to the loss of personal liberty, coupled with the rise of fascism and the police state. Think about the Weimar Republic and how it created the conditions for the rise of Hitler and the Nazis.

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Europe’s central issue is that the social contract and the democracy it aspires to has been undermined by the economic crisis and the flawed monetary system. Under Locke’s rubric, the Sovereign that ruled with the consent of the people, is now the victim of a situation that has spiraled beyond his control, and is compelled to bring the people along for the ride.

As the United States is the foremost beacon of democracy in the world, we must carefully consider the developments with regard to the NDAA and the treatment of Bradley Manning.

It is prudent to look at how our jurisprudence has evolved and make sure that those that govern are not permitted to regress the legal system. A peaceful correction of the current course is essential for the survival of a legitimate democracy.

“Freedom is never more than one generation away from extinction. We didn’t pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same” - Ronald Reagan, 40th President of the United States Bradley Manning did just that, and although he may suffer for it in this life, history will remember him as a champion of truth and justice.

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The Monetary Conundrum Is the international monetary system fundamentally flawed?

“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world. No longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.”

- Woodrow Wilson, 28th President of the United States In 1910 a meeting took place in Jekyll Island, off the coast of the Southern US state of Georgia. The attendees of the meeting were instructed to use only one another’s first names, lest their identities be divulged to the public subsequently by eavesdropping waiting staff.

In attendance were a select cabal of some of the world’s leading bankers, including John Pierpont Morgan and Paul Warburg. They were joined by Senator Nelson Aldrich. The reason that secrecy was paramount at the week-long retreat was that the delegates were planning a critical change in the how the monetary system functioned. At that time, the US Treasury had the sole responsibility for printing

paper money, as per the constitution of the United States.The plan that was concocted was to move the power to print paper money from the Treasury, to a new entity, misleadingly named the Federal Reserve.

The Federal Reserve however, was not federal. It was and still is very private. So private in fact, that even today, it is more secretive than the CIA. It is owned by private banks, though the public are not allowed to know which ones. One can only presume that the ownership structure somehow involves the attendees of the Jekyll Island meeting.

The Fed’s main function is the control of interest rates, enabling it to regulate the overall money supply. It is a difficult balancing act. Keeping interest rates low makes money cheaper to borrow and hence expands the amount of money in the system. The converse also applies. There are many factors to be taken into account and rates may be adjusted for any number of reasons.

Former Republican presidential candidate and twelve term congressman, Ron Paul recently marked a new departure by getting a bill passed by the House of Congress to audit the Federal Reserve. Due to the fact that the US is the world’s largest economy and the US dollar is the world’s reserve currency, this development is hugely significant, as what happens in the US, reverberates around the world.

The seemingly simple transfer of the power to print money from the Treasury (a government department situated next door to the White House) to the Federal Reserve (a private central bank with limited government oversight) created the fundamental flaw in the monetary system that underlies all subsequent booms and busts.

Under the system that was signed into law by President Woodrow Wilson in 1919, the Treasury now orders dollar bills to be printed by the Fed – which then charges the government interest on the newly created money.

Under the fractional reserve banking regulations, banks are only required to only hold a reserve of 10% of the value of the loans that they make. This effectively means that a bank must keep one dollar in deposits for every nine dollars that is lent out.

This means that when a man walks into a bank and asks for a loan of $10,000, the bank must only have $1,000 in reserve in order to fulfill its fractional reserve requirements.

When the loan contract is signed, in consideration of the borrower pledging to pay back the full amount in installments, the remaining $9,000 is literally created by the private bank out of thin air.

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The man then lodges the $10,000 loan into another bank, and the cycle starts again. A massive inverse pyramid is created, and money itself is created out of thin air from debt. In this way, debt itself creates money. For the most-part, money itself is debt.

Only approximately 5% of the money in circulation is actual printed cash, the remaining 95% is bank credit created by private banks, as described above.

Each dollar can however be put into a cycle whereby it is used on multiple occasions over the course of time, hence the system perpetuates itself. In times of high confidence in the system, more loans are made and hence more money is created, leading to more cash in society as a whole.

When confidence is lost, outstanding debts are called in, banks stop lending, jobs are lost and production in the real economy is reduced. This leads to a reduction in the amount of money in the system overall.

In a boom, there is lots of money, because there is lots of debt. In a bust, the money disappears, but the debt remains. It is then called in, and the transfer of wealth and power begins, enriching and enpowering a select few, while putting the masses in the poor house. The system does this by design. Crashes are inevitable, as are the transfers of wealth that accompany them.

In centuries past, ruling elites that were privy to this knowledge exercised it wisely in the West and made sure that there was still solid infrastructure, education and a social safety net, so that the booms

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and busts would not undermine centuries of progress.

Unfortunately, this time around, there seems to be more opportunistic plundering and less sociallyminded foresight.

There is another drawback of the modern system that compounds this folly. It has been dubbed “financialisation”.

“Money is not the value for which goods are exchanged, but the value by which they are exchanged” - John Law, Political Economist, 1705 In days gone by, if a man had ten cows, he had a measure of wealth. If somebody wanted to buy a cow from him for themselves, money was the medium by which the exchange was transacted. The money then enables the seller to purchase other goods and services that he needed. With financialisation however, came the era of money for money’s sake.

Money itself came to be considered wealth. Money itself is now the end goal.

So much so that today, the world’s largest financial market is Foreign Exchange. Millions of transactions are conducted every day, buying and selling currencies in the hope of making profits due the fluctuation of exchanges rates.

This “industry” produces nothing of tangible benefit

whatsoever. It creates no value in the real economy, yet it is the single largest sector in financial services globally.

In the 1980s, Thatcher and Reagan were the foremost proponents of free market capitalism in which the government took a back seat. The outright dismantling of banking regulations in the 1990s and 2000s however, marked a reckless departure, creating a massive boom, followed naturally by the bust of 2008, the effects on which are ongoing.

The Clinton Administration oversaw the repeal of the Glass-Steagall act which was enacted after FDR’s “New Deal”. Glass-Steagall separated investment banks (which underwrite Initial Public Offerings and Mergers and Acquisitions) and retail banks, thus not allowing customer deposits to be utilised for speculative investments.

Under Glass-Steagall, a banking behemoth such as JP Morgan Chase could not exist. Glass-Steagall prevented institutions from being “too big to fail”. Its reintroduction should be sought forthwith.

Of the many questionable mechanics of international banking in the twenty-first century, some of the most damaging are derivatives. Some derivatives serve a social and economic function by enabling institutions to spread risk in a manner akin to insurance.

However, certain breed of derivative, created in 1994 by JP Morgan named the “Credit Default Swap” (CDS), currently threatens to collapse the real economy.

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A bank makes an investment in item A. It then considers the possibility that item A may fail and it will lose its investment. Not wanting to lose the investment, the bank hedges its bets and insures itself by investing money in item B. Item B is a promise that if item A fails, item B will pay out – item B derives from item A – hence, it is a derivative, a Credit Default Swap - item B is swapped for item A, should item A default on its credit.

Item A is usually something that exists in the real economy – a loan to a factory, a business or a mortgage. The problem arises with item B – the derivative. It is fictitious. It does not exist in the real economy. It is a bet to cover the bank just in case item A goes wrong.

The biggest problem facing the global financial system today is that these CDSs are not treated as fictitious. They are treated as real commodities and traded for real money. It is estimated that there is $25.5 trillion worth of derivatives in the financial system today being traded between banks, pension funds and hedge funds. To put that into perspective, the GDP of the United States in 2011 was $15 trillion.There is a major danger of these unraveling and precipitating a secondary financial crisis in the near future.

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What is presented here is a bird’s eye view. For what it is worth, I would make the following recommendations: 1) The Treasury should reclaim the right to create money from the Federal Reserve, eliminating the initial interest owed, 2) The Glass-Steagall Act should be reenacted, preventing investment banks from leveraging the deposits of retail banks, 3) Credit Default Swaps should be phased out, encouraging more prudent custodianship of the real economy, 4) Transactions between financial institutions should be taxed by 1% (currently banks and financial services companies pay no tax whatsoever on transactions), discouraging high-frequency trading conducted by computer algorithims, thus requiring banks to consider the necessity of each transaction more carefully, with the result that they will operate more in the real economy, investing in things that create actual value on the ground, 5) Governments should put out tenders for considerable programmes of public works infrastructure, 6) The real economy could be kick-started by offering loans at 0% interest to real-world production, including technological and scientific research and development, 7) As FDR implemented under the “New Deal”, there should be a tax on undistributed profits, meaning that offshore hoarding of cash (currently standing at $32 Trillion globally – more than twice the GDP of the US) would be discouraged.

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The International System and its Discontents

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The Bretton Woods Conference in 1944 recalibrated the international system and gave rise to the World Bank and the International Monetary Fund (IMF), both of which were instrumental in providing the necessary financial support with which nations rebuilt their infrastructure following the Second World War. Over the course of time, both of these institutions have grown to be pillars of globalisation, with noble goals. Time and again however, they have fallen short of their own objectives, and created the circumstances in which the considerable hardships have been foisted upon national populations.

The World Bank routinely provides loans to developing countries for capital programs. The IMF provides loans to countries in fiscal difficulty in order to ensure global economic stability and maintain the smooth functioning of the balance of payments system. A central goal cited by both institutions is the reduction of world poverty. Both institutions espouse the Western virtues of the free market economy, foreign direct investment and international trade with national growth in Gross Domestic Product (GDP) representing a key indicator of economic success.

The implementation of policies such as deregulation, privatisation, ever-smaller government and the liberalisation of markets are of central concern to both.

Both institutions are headquartered in Washington DC. A tacit agreement between the US and Europe has meant that the head of the World Bank is routinely appointed by the US, whereas the head of the IMF is a European. As the largest shareholder of the World Bank, the US exercises the largest voting rights, with 15.85% of the vote.

The World Bank’s Millennium Development Goals are admirable: •

Eradicate extreme poverty and hunger

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Achieve universal primary education

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Promote gender equality

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Reduce child mortality

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Improve maternal health

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Combat HIV/AIDS, malaria, and other diseases

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Ensure environmental sustainability

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Develop a global partnership for development

Unfortunately, the extent to which the interests of the dominant countries influence the implementation of policy in developing countries means that the medicine prescribed is not always what is best for the patient.

The relationship between these twin behemoths of the international system and the borrower states has often resulted in situations that have proven detrimental to the vulnerable economies. The IMF often attaches conditions that sometimes inhibit growth and social stability. As economist Jeffery Sachs once put it, “the Fund’s usual prescription is ‘budgetary belt tightening to countries who are much too poor to own belts’.”

A singular focus on matters pecuniary can lead to unforeseen social consequences. Cuts to public health and education can undermine domestic political institutions.

The worst case scenario is that private consultancies can manipulate Country Assistance programs for private gain. An interesting book makes a number of allegations in this regard. In 2004, John Perkins, a former international consultant wrote an unprecedented exposé of the hidden side of the international system, entitled “Confessions of an Economic Hitman”.

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Perkins’ central assertion was that the independent company for which he worked, Chas T. Maine Inc. was a proponent of economic empire involving the World Bank and the IMF, used to convince developing nations to take on loans that they could not afford to service, in order to benefit US business interests in the developing world.

Perkins outlined the modus operandi of the coconspirators; Maine would secure a contract to advise governments in the developing world as to how best to modernize their infrastructure.

In his capacity as a consultant and advisor on the national development programmes, Perkins then befriended the head of state of the country. As an “Economic Hitman”, Perkins would promote development plans that exaggerated the benefits to the populace at large. The ulterior motive was to get the sovereign state to borrow money from the World Bank in order to develop infrastructure that was less than critical.

The economics of the plans themselves were designed so that timely repayment of the loans would become a mathematical impossibility, thus necessitating the IMF to enter the country and impose an austerity programme under which the people suffered and the country’s natural resources were sold to the US at knock-down prices.

According to Perkins, the initial loans by the World Bank were never even given to the sovereign governments, but were transferred directly to the

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American engineering companies (Maine’s clients) to carry out the infrastructure development projects.

Most of the time, corrupt rulers went along with the scheme, which enriched them and their inner circle.

There were two notable exceptions however, General Omar Torrijos of Panama and President Jaime Roldós Aguilera of Ecuador. Both died in fiery plane crashes in 1981. Perkins is adamant that they were assassinated.

It is clear that Perkins himself was no angel. His exposure of this white collar criminality may not necessarily exhonerate him from his actions, but his need for redemption and attempts to make amends endear him to the reader.

Certainly, corruption on all sides still pervades the international system, with private gain taking pride of place as the motivating force.

It is difficult to hold large international institutions to account and even more difficult to prevent them from creating unwanted circumstances that they may not even forsee.

The fact that an increasing number of world citizens are now becoming aware of these shortcomings and the need for them to be addressed is encouraging.

The mechanism by which concerned citizens can address these issues however, remain elusive.

Shortcomings such as these are rife in the international economic system. This is a particularly difficult nut to crack.

Perhaps Perkins brings his own prejudice to his writing compunded by guilt and hence choose to take the angle that he did.

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FDI in Ireland

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Foreign Direct Investment in Ireland • Ranked 13th out of 125 countries in the Global Innovation Index • Ireland is one of the top 10 countries in the world for ease of doing business • Ireland recently replaced Singapore as the most globalised Western economy • Ireland is in the top 10 of the world’s freest economies • Ireland has maintained its corporate tax rate of 12.5% • A 25% Research & Development (R&D) tax credit is available • Ireland has an Intellectual Property (IP) regime which provides a tax write-off for broadly defined IP acquisitions • An effective zero tax rate for foreign dividends (12.5% tax rate on qualifying foreign dividends, with flexible onshore pooling of foreign tax credits) • An EU-approved stable tax regime, with access to an extensive treaty network and EU Directives • Generous domestic law withholding tax exemptions

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AIB Corporate Banking Ireland is proud to support global investment in Ireland

www.aib.ie/fdi As one of the most attractive countries for global Foreign Direct Investment, Ireland is home to many of the best-known and most successful companies from around the world.

And at AIB, we provide corporate banking services to more of these global companies than any other bank in Ireland. Talk to us about how we can help you locate and grow your company’s presence in Ireland.

Contact Details: Diarmuid O’Neill, Head of AIB Corporate Banking Ireland Tel: +353 1 641 4808 Email: diarmuid.e.o’neill@aib.ie Web: www.aib.ie/fdi

Allied Irish Banks, p.l.c., trading as AIB Corporate Banking Ireland, is regulated by the Central Bank of Ireland. Registered Office: Bankcentre, Ballsbridge, Dublin 4, Ireland. Registered in Ireland, No. 24173

AIB Corporate Banking Ireland 25 Making Business Happen

AIB Banking Services for FDI in Ireland Interview with Diarmuid O’Neill, Head of International Corporate Banking, AIB

The International Corporate Banking section of AIB deals with international companies that have made investments in Ireland.

It is well known that Ireland has had a lot of FDI from the United States. From what other countries are companies establishing offices here?

A: Ireland has always been a key global location of choice for FDI. When you look back over recent decades the US has been the main geography for FDI. The global recession has not changed this dynamic with close to 80% of FDI in 2012 originating from the US. The IDA launched their strategic outlook during 2012 and they see the BRIC countries as being a growth area – in fact the IDA forecasts that by 2014, 20% of green-field investments into Ireland will originate from these high-growth markets. To support this strategy, the IDA opened offices across these countries in an effort to diversify our FDI base.

Given your experience in dealing with multinational companies that make Foreign Direct Investments in Ireland, in what sectors do you see particular potential for growth?

A: The traditional FDI sectors such as pharma, manufacturing and financial services will continue to play a very important part in Ireland’s FDI growth. However Ireland continues to react to the changing face of global FDI through new pro investment policies. The new sectors of growth will

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include Global Services, High Tech Manufacturing, R&D and Innovation. This growth will be aided by Ireland’s increasing competitiveness and ready supply of skilled labour.

Please outline the services that the AIB FDI team supply to companies that invest here.

A: The AIB Foreign Direct Investment team provide financial services to more inward investment companies in Ireland than any other financial institution. We are the only Irish bank with a dedicated Foreign Direct Investment team, with over 30 years of specialist sectorial knowledge spanning many industries eg. Life Sciences, Med Tech, Pharma, ICT, Digital Media, Business Services, Cleantech and Consumer Products.

Our unique customer-centric relationship model, encompassing one single point of contact, is one of the reasons foreign multinationals choose AIB as their banking partner. Building and developing strong relationships is central to our approach.

We ensure that one dedicated Relationship Manager provides the single point of contact for all AIB products and services, and tailor our offering to suit each of our customers’ different requirements.

How does that differentiate you from the competition?

A: Our key competitive advantage is this customer centric relationship model. We spend significant time getting to know each of our customers’ businesses so that we can ensure a partnership approach and provide the most appropriate services to them. Our Relationship Managers are the single point of contact within AIB for our customer. This ensures that every customer request is dealt with in the most efficient way possible. Our Relationship Managers also spend significant time travelling to meet the parent companies of Irish FDI clients throughout the world, be they in Europe, the US, or Japan. This further reinforces the strong relationships we have with each FDI client. In summary, AIB’s business model is to provide a ‘One Stop Shop’ relationship banking approach to international companies setting up in Ireland with a single RM contact point who is responsible for overall credit and service delivery.

Cleantech is an area of specific interest for many of the readers of this publication. Please outline the FDI team’s experience in this area.

A: Ireland has clearly defined renewable energy and carbon targets, which means the Cleantech Sector will continue to grow and AIB wants to play its part in supporting both domestic and international companies who operate in this Sector. The island of Ireland has what are regarded as some of the best conditions for wind energy projects in Europe.

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This has lead to many of the leading international players entering the Irish market including turbine suppliers, specialised engineering companies and technical advisors. In addition to providing such companies with clearing, cash management and working capital facilities, AIB has provided Project Finance for a number of Irish renewable energy projects.

REFIT (Renewable Energy Feed-in-Tariff) backed projects remain an attractive credit proposition for banks. AIB is committed to delivering tailored funding solutions to enable continued development in renewable energy and broader infrastructure projects.

With regard to tailoring your solutions to the particular needs of companies; what do you require from a company that is making an investment in a wind energy project or a wave energy project, in order to provide them with the finance that they need?

A: Every project will be reviewed on its own merits but at a minimum the company should engage with a professional team to ensure that (1) planning, (2) applications for REFIT (where applicable), (3) professional confirmations on the suitability of the site for an energy project, (4) offtake/PPA agreements, and (5) independent confirmation of cashflows have been undertaken.

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As a long term partner of the Renewable Energy Sector, AIB would welcome the opportunity to share our knowledge and guidance with any prospective companies looking to expand in this area.

The usual lead time to bring a foreign direct investment from conception to fruition is somewhere in the region of three years. At what point in the process would the FDI team engage a prospective client?

A: We are very happy to engage with prospective FDI clients at any point in the process.

As we are already travelling extensively worldwide, meeting existing FDI clients face to face, we are always happy to vist prospective clients in their home country. In some instances we meet prospective FDI clients when they are a very early stage in their decision making process and perhaps looking at a number of countries. I believe that every FDI service provider in Ireland, from banks, to accountants and lawyers, have a role to play in supporting the work of the IDA in selling Ireland Inc. It’s important that we all provide a consistent message regarding the ease of doing business in Ireland. We will of course make introductions to other FDI service providers if required by the client, and once they decide to bank with AIB we provide a streamlined implementation process to ensure all accounts are opened and services provided in a minimal timeframe and with minimum effort. We are also happy to facilitate any banking

requirements for FDI company employees moving to Ireland and the corporate Relationship Manager can also manage this process for our FDI clients.

How is the current instability in the global macro-economic environment affecting the FDI landscape?

A: Of course the uncertainty within the Eurozone and across the globe may affect investment decisions; however 2012 was one of the most successful for inward investment in Ireland. A record number of investments were secured by IDA Ireland in 2012, and 2013 looks to continue this momentum.

It is important that a clear message is provided to international markets regarding the benefits of establishing in Ireland, and this is especially true when dealing with emerging markets such as India, China, Brazil and Russia which are actively looking to grow in Europe and Western markets.

What is your message to companies that are considering the establishment of a European headquarters in Ireland?

A: Ireland has long proven itself as the number one choice for international companies operating in Europe. Ireland is the gateway to Europe and beyond. Just look at Ireland’s track record.

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Irish Food; Consistent industry producing consistently quality food of international renown

Against the backdrop of a year characterised by volatility and general uncertainty, both domestically and internationally, the Irish food industry actually had a great year. In a small piece of good news for Irish industry, national exports of food and drink reached an all-time high of €8.9 billion.

While we must be cognisant that much of this growth is attributable to a global surge in commodity and food prices, we should also recognise the hard work and good strategy that has gone into maintaining the good name of Irish food.

Bord Bia, the Irish Food Board, is the State Agency charged with coordinating the endeavors of the Irish food and drink industry. Its extensive research into how Irish food is perceived abroad informs the strategies that it implements at home, in order to maintain the esteem in which Irish food is held.

Chief Executive of Bord Bia, Aidan Cotter explains that, “We have a good reputation as an island that produces good food. While Ireland is not recognised as having any particular ‘cuisine’, we have a good name for excellent ingredients. The research that we have conducted among consumers, trade buyers and journalists indicates that Ireland is seen as green and unspoilt by industrial production. Our reputation for being friendly and welcoming also comes to the fore. All of these factors are attributable to the continued success of our food and drink produce in the international sphere.”

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“The roadmap that we operate on in terms of our overall strategy is called ‘Food Harvest 2020’, and working with this blueprint, we have seen our exports increase to the tune of 25% since the low of 2009”, assets Cotter, “Of course, this pace of growth can’t be expected every year, but we do anticipate a modest level of growth over the course of the next few years.”

According to the chief executive, energy consumption is also a major issue for Bord Bia. “We have an ongoing programme that we run in partnership with the Carbon Trust. By the end of 2012 we expect to have audited and achieved accreditation on the carbon emissions of over 30,000 farms. We cannot just be seen to be green – we must actually prove it.”

The UK, USA, France, Belgium, Germany, Sweden and China are among the main markets that Irish produce is exported to. Initiatives that are implemented by Bord Bia on the macro level, such as a biodiversity programme and carbon emissions programme, seek to have a lasting positive effect on the industry overall.

“Seeing as our research indicated that Ireland is perceived as green and natural, we must go the extra mile to ensure that it stays that way. We have therefore implemented a new biodiversity programme that seeks to protect and conserve our biological resources, heritage and tradition. There is no template for this programme internationally.

We are breaking new ground because it is the first programme of this sort undertaken in the world.

The programme takes a holistic approach to the management of our biological resources, from foliage to water.”

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w w w. a d a v i a t i o n . c o m

Abu Dhabi Aviation (ADA) provides aviation offshore oil support services to the Emirate of Abu Dhabi’s oil production companies, VIP passenger transportation services, Search & Rescue for the United Arab Emirates (UAE), crop spraying in the region, aerial construction, seismic support and fire fighting in Europe.

ADA is the largest commercial helicopter operator in the Middle East and currently operates a fleet of 82 helicopters. Key elements in all the company’s decision and operation processes are its quality and safety management, philosophy and systems. ADA has held the prestigious Helicopter Association International’s Platinum Award for Safety since 2006 and has achieved over one million helicopter flight hours with an enviable safety record, especially given the extremely high number of daily offshore takeoffs and landings.

The company has continued to expand its business through acquiring 50% equity of a VIP jet company, Royal Jet (www.royaljet.ae), which is the largest commercial operator of Boeing Business Jets (BBJ) and acquisition of 95% equity of Maximus Air Cargo (www.maximusaircargo. ae), a medium-size company based in Abu Dhabi that specialises in global cargo operations.

Abu Dhabi Aviation Address: P.O. Box 2723, Abu Dhabi, United Arab Emirates Tel: +971 2 575 8000 Fax: +971 2 575 7775 E-mail: adava@abudhabiaviation.com

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Energy

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Making the most of our energy Pioneering the cleantech agenda Interview with Jim Rice, Managing Director, Schneider Electric Ireland

“The world faces a real dilemma – energy demand is growing by a factor of 2 while we need to reduce our carbon emissions by 2”, says Jim Rice, Managing Director of Schneider Electric Ireland.

“This is the space in which we operate”, he continues, “our ambition is to help our customers face this challenge and allow them to reduce their energy costs while implementing robust and reliable systems”.

Founded in the nineteenth century, Schneider Electric has evolved into a gargantuan global enterprise, employing more than 110,000 people worldwide and generating annual sales in excess of €20 billion. Over the course of time, it acquired a multiplicity of well-known brands in the space (Merlin Gerin, Telemecanique, Square D) and has amalgamated them all under the Schneider Electric banner.

Schneider specialises in the distribution, automation, management and control of energy. It serves five major categories; Utilities & infrastructure, Industries & machine manufacturers, Non-residential buildings, Data Centres & networks and residential buildings,providing a multitude of products and services in five different areas: Power, Energy, Buildings, Industry & IT.

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Traditionally, Schneider has been well recognised as a world leader in the switchgear and automation business. In recent years, it has also developed an enhanced offer, including a comprehensive line up of critical power and cooling products and equipment for data centre solutions, as well as a complete offer for security and building automation.

“For instance, we have an energy management architecture entitled EcoStruxure, which enables comprehensive management of complex building environments all on a single IP platform. This enables our clients to save 30% on energy bills, which obviously represents a very significant reduction in both energy consumption and financial outlay”.

As Jim Rice outlines, “Being the energy management specialist brings with it an extensive portfolio of metering, monitoring, software and service solutions to enable end users to manage their energy more effectively”.

Such dramatic inroads in the area of energy efficiency certainly add to Schneider’s cleantech credentials.

One cleantech area in which the company is very interested is the Smart Grid.

“We are now seeing the convergence of power and information, culminating in a new level of sophistication in our ability to monitor and control our energy usage”, explains Rice.

“Managing the evolution and integration of new technologies, and giving the customer real-time information about their energy usage, means that they have more visibility, and hence enables them to make more informed choices regarding that usage”.

This pedigree serves Schneider well to position itself in the cleantech space, particularly with regard to energy efficiency.

“I see the Smart Grid as a fairly loose concept”, asserts Rice, “as it necessarily has implications throughout every point along the energy distribution network from supply to demand side management.

We are very much in that space. I see this growing over time as the technology develops and integration becomes commonplace. We have significant offers and solutions for the Smart Grid. We are highly specialised and expert in making energy reliable, efficient and green”.

“Schneider Electric is leading through innovation with groundbreaking projects such as the strategic partnership with the world’s first zero carbon city - Masdar City in Abu Dhabi where Schneider will provide energy efficient solutions for data centres and renewable energy solutions for the entire 6km sq development.

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In addition to that, we have partnered with IBM on their “Smarter Cities” project, so Schneider technology is very much in play there, integrated with IBM’s systems. These are just two examples of Schneider Electric taking a leading role in the cleantech space.”

So, what is the message to potential partners?

“We believe in collaboration and partnership. This is evidenced by Schneider’s R&D collaboration agreements with many global companies such as IBM and Cisco, as well as a host of universities and research centres worldwide.”

“Schneider Electric values its business partners and works hand in glove with many specialists, but particularly in the switchgear area, application software and integration for projects in energy management, building automation and factory automation, as well as many other complementary added value activities.”

“Schneider Electric’s new focus on solutions requires its various product and service activities to work more closely together to develop innovation and offers with common hardware and software platforms, based on open architecture and standards. These platforms also facilitate the integration of products and solutions coming from acquisitions or partnerships.”

“Partnership is a way of life within Schneider Electric with end user partnerships and solution partners helping us all to make the most of our energy”.

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30%* off your building’s energy bill is just the beginning Imagine what we could do for the rest of your business Managing complex building environments while meeting your energy efficiency targets is no small task. Our EcoStruxure™ energy management architecture achieves this elegantly through intelligent integration of building systems on a single IP platform.

The savings go far beyond buildings

Active Energy Management Architecture from Power Plant to Plug™

Today, only EcoStruxure energy management architecture by Schneider Electric™ delivers up to 30% energy savings, uniting energy-intensive systems like HVAC, access control, video security management, and lighting control across your entire enterprise. Saving up to 30% of a building’s energy is a great beginning, and thanks to EcoStruxure energy management architecture, the savings don’t have to end there.

Data centres From the rack to the row to the room to the building, energy use and availability of these interconnected environments are closely monitored and adjusted in real time.

Industrial plants Open standard protocols allow for systemwide management of automated processes with minimised downtime, increased throughput and maximised energy efficiency.

Discover the facts inside our report today!

Download our Energy management report, and be entered to win and an Apple iPad® 2!

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Buildings Intelligent integration of security, power, lighting, electrical distribution, fire safety, HVAC, IT, and telecommunications across the enterprise allows for reduced training, operating, maintenance, and energy costs.

30% 41 ©2011 Schneider Electric. All Rights Reserved. Schneider Electric, EcoStruxure, and Active Energy Management Architecture from Power Plant to Plug are trademarks owned by Schneider Electric Industries SAS or its affiliated companies. All other trademarks are property of their respective owners.

35 rue Joseph Monier, CS 30323, 95506 Rueil Malmaison Cedex (France) • 998-2758 *EcoStruxure architecture reduces energy consumption by up to 30%.

Ireland explores the potential of Ocean Energy Niall Dolphin

Ireland has some of the best natural resources on the planet for ocean energy. Whilst it must be emphasized that the large scale commercialisation of wave and tidal energy is still unproven, Ireland is making considerable strides in the area.

A little known fact is that Ireland’s sea territory is ten times the size of its land territory, giving the country an advantage in the possible application of wave and tidal energy.

In 2005, the Irish Government launched its four phase ocean energy strategy. Currently in phase three, the “West Wave” Project constitutes a significant part of this phase.

This public sector and private sector partnership is working to ensure that Ireland fulfils its potential in the industry. “West Wave” is a joint venture led

by Electric Ireland in cooperation with several key players from the ocean energy industry, including Wavebob and Open Hydro - two leading Irish companies seeking to harness the power of the ocean to generate clean electricity. Both companies have made substantial progress in recent years.

Under the “West Wave” project, Electric Ireland has signed Memoranda of Understanding and NonDisclosure Agreements with these companies so that they may work together towards the development of the industry. Several other private companies, state bodies and other industry players are also supporting the project as associate partners.

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The project aims to generate an initial 5 Megawatts of electricity from ocean energy by 2015. Three sites have been identified as suitable locations for the development.

These are Annagh Head in Belmullet, Co. Mayo, Dooega Bay in Achill, Co. Mayo and Killard Point in Caherlean, Co. Clare. At present, site investigations have progressed well at Annagh Head in particular. This is due to the fact that the Sustainable Energy Authority of Ireland (SEAI) has been developing the Atlantic Marine Energy Test Site (AMETS) at the same location, a project Electric Ireland has also been involved in.

Marine surveys and equipment installation have only recently begun at the remaining sites. It is expected that all the relevant data will be collected from all three locations in the near future. A decision will then be made on which site will be used for the project. The decision to finance the project will be made prior to its construction, with Electric Ireland providing the majority of the capital. As the project is not commercial, the scheme has applied for funding under the European Commission’s New Energy’s Reserve Scheme. This funding will cover 50% of costs if successful.

Wavebob has taken huge strides in the industry and is now recognised as a leader on the global scale. Founded in 1999, the company has grown at a significant rate over the past twelve years and has a presence in the United States. This has led the company to develop relationships with some of the largest energy companies in the world including Chevron and Vattenfall.

Arguably the company’s biggest achievement has been the securing of a $2.4m grant from the U.S. Department of Energy in 2010. This complemented several other achievements of that year which include winning the Ocean Energy Technology Pioneer Award from the Energy Ocean Conference and the Green Machine of the Year award from the Science Gallery. Wavebob also received substantial investment from Bord Gais in 2010. The cornerstone of Wavebob’s research and development endeavour has been to harness the world’s vast wave energy potential in an economically viable and environmentally friendly manner. The key to Wavebob’s success lies undoubtedly in the technology itself.

The turbines applied by Wavebob have a long survival period; they are excellent at responding to large waves and have low operating and maintenance costs. Wavebob has successfully demonstrated its ability to generate electricity purely from absorbed wave power and is capable of an installed capacity of 1.5MW of electrical energy in a North Atlantic site with average electrical output of around 500KW. Specialising in tidal, rather than wave energy, Open Hydro finalised the world’s first official sale of a ocean turbine to the government of Nova Scotia and in November 2011. The company was named in the Global Top Ten Later Stage Awards by the Global Cleantech Cluster Association. Formed in 2005, Open Hydro has seen considerable uptake in its signature piece of technology, the Open-Centre Turbine. This unique style of turbine is deployed directly on the seabed, making it almost impossible to know that they are there.

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They are silent and invisible from the surface, which has been a key factor in the success of the company.

The first test unit produces enough energy to supply 150 average European homes and save the emission of over 450 tonnes of CO2 greenhouse gas each year.

In November 2011, Open Hydro received the prestigious best company award in the “Other Renewable Energy” category by the Global Cleantech Cluster Association. This award will undoubtedly help the company prosper in the coming years. Open Hydro turbines have already been installed in several sites worldwide. During 2006, Open Hydro became the first company to install a turbine at the European Marine Energy Centre in the Orkney Islands, Scotland. Following this, turbines have been installed in the Channel Islands and Nova Scotia, Canada.

ESBI Ocean Energy was founded to position ESBI to deliver on its ambitious targets for harnessing ocean energy. The ESBI has set a target of owning 150MW of generation from ocean energy by 2020. One of the key tactics being employed is that of supporting research and development through funding a variety of university projects.

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ESBI Ocean Energy has four main aims.

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to gain the technical expertise in wave and tidal technologies through technology support agreements,

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to identify potential wave and tidal sites in Ireland, the UK and other targeted countries in the EU,

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to invest in wave and tidal projects in Ireland and,

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to prepare studies and offer consultancy services in initial project phases.

These objectives are central to ESBI’s Strategic Framework toward 2020, halving carbon emissions within twelve years and achieving a carbon net-zero position by 2035.

Given the geographical position of the island, the cooperation between the various bodies using Ireland as a test-bed to prove the viability of the technological advances, it seems that the future of the ocean energy in Ireland looks promising. Working together, these stakeholders hope to realise the possibility of Ireland becoming a global leader in ocean energy.

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Energy saving innovation The green energy agenda is in full swing. The progress that the green agenda made at COP 18 in Doha, Qatar in December 2012 represented one of the first overt examples of the new face of global agreement on the climate issue. Now that governments throughout the world have agreed upon a framework in which to work in order to cut carbon emissions, an extra impetus has been given to renewable energy projects.

The production of renewable energy however, is only part of the solution to a wider problem. Inefficient energy use is one of the most important issues that we face in modern times and an easier place to start is in the efficient consumption of the energy that we already use. Thankfully, a number of companies are carving niches in particular areas with regard to this issue.

One such company is Nujira. This UK-based company specialises in high-tech products that optimise the energy efficiency of radio transmitters used in mobile communications and has significant implications for that most ubiquitous of modern-day contraptions, the mobile phone.

Nujira has taken a technology that was first theorised in the 1930s, and has cleverly engineered its theoretical constructs into a commercial reality - cutting energy consumption for today’s telecommunications companies and consumers.

Jeremy Hendy, Sales & Marketing Director, explains that,

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“Nujira has solutions for reducing the energy consumption of the masts at the base stations, and also at the individual mobile phone level. With regard to the base stations, which are “always on”, and typically waste up to 80% of the energy supplied

to them, our technology cuts energy wastage in half, and has already been incorporated into several base stations. Our offering at the handset level is also compelling.”

“The transition from 3G to 4G means that the efficiency of the radio transmitter is even lower”, he continues, “and this has consequent effects on the energy required by the device. Our technology results in less heat, faster data, and longer battery life for the phone itself.”

Energy consumption is one of the single largest costs that mobile phone operators incur. According to Vodafone, the cellular industry uses around 75 billion KW per year, of which 80% is in the base station networks. As Hendy notes, “The evolution from 3G to 4G is a great inflection point for the business.”

The broad application of the technology has attracted “universal interest” from base station manufacturers such as Sumitomo, Ericsson, Nokia-Siemens, AlcatelLucent and Huawei. The company is also working with several “household names” in the handset industry, and expects the technology to be widely adopted in 2013.

This potential was recognised by investors Amadeus Capital Partners, Climate Capital Change Private Equity, Environmental Technologies Fund and Mitsubishi UFJ Capital. Nujira has raised $60 million in venture capital investment from these four funds in order to develop their technologies.

With an intellectual property portfolio that includes 135 different patents, it seems that the company is looking to position itself as a trailblazer in this niche technology, which has vast potential.

Reducing radio transmitter costs and carbon emissions

Lower power consumption and longer battery life

Award-winning technology powering the world’s highest efficiency Digital TV transmitter

Nujira’s products are at the heart of the world’s most energy efficient 4G base station

Radio transmitters consume more than 100 billion kWh per year, and dissipate up to 80% of this energy in the form of waste heat. By solving this problem at its source, Nujira’s innovative Coolteq products reduce energy consumption by up to 40%, and are used by leading OEMs to power the world’s most energy efficient 4G cellular base stations and Digital TV transmitters.

Nujira is now applying the same energy efficient technology to smartphones and other portable wireless devices - delivering higher data rates, longer battery life, and better connections.

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Find out more at www.nujira.com

FDI in Abu Dhabi 48

ZonesCorp Attracting Industry to Abu Dhabi Interview with HE Mohamed H. Al Qamzi, CEO of ZonesCorp

Mohamed H. Al Qamzi is Chief Executive of the Higher Corporation For Specialized Economic Zones, better known as “ZonesCorp”. The organisation plays a major role in driving innovation and economic diversification.

ZonesCorp is the government backed agency responsible for the establishment, management and operation of specialised economic zones in Abu Dhabi.

According to its own literature, ZonesCorp’s remit is to “empower [Abu Dhabi] to develop its infrastructure and to enable the business environment to reshape the Emirate’s economic landscape through the implementation of targeted industrialisation and investment programmes.”

It also serves as the licensing authority for all industrialised activity in Abu Dhabi and plays a pivotal role in strategy and policy setting in line with the Vision 2030 government mandate. Central to this is a strategy of industrial clusters which Mohamed H. Al Qamzi, Chief Executive of ZonesCorp describes as “a critical factor in the attractiveness of Abu Dhabi for any investor”.

According to the chief executive, “Our ability to cluster specific industrial groups together throughout our developments, means that we save money for companies that establish within the zones. The infrastructure that serves each cluster is specifically tailored to that cluster’s needs. All logistics are well catered for.”

The corporation’s zones, ICAD (Industrial City Abu Dhabi) numbers 1 to 4 ( and a 5th in the pipeline) are located around Mussafah on the city’s outskirts.

They are complimented by the existence of Workers Residential Cities, providing accomodation for the manpower of the industrial zones. Following a number of concerns expressed internationally about the living conditions of immigrant workers in the UAE, Al Qamzi stresses the fact that new living quarters have been provided for workers that are a considerably better than those previously provided.

ZonesCorp was created in 2004 by a decree from His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of UAE and Ruler of Abu Dhabi. The organisation serves as one of the first ports of call for an industrial investor in the Emirate. Operating through Public-Private Partnership management structures, ZonesCorp can leverage “off an enhanced financial capability” and provide “services to facilitate investors”.

Companies can enjoy duty-free import of machinery and raw materials, free repatriation of profits, tax exemptions, competitively priced utilities as well as duty-free access to the GCC market. Already only 12 minutes from the Abu Dhabi International Airport, 50 minutes from Jebel Ali Port and Airport, the zones will soon be served with the forthcoming “Abu Dhabi Industrial Port” as well.

Al Qamzi concedes that the cost of rental is expensive but maintains that this is compensated for by the government-supported infrastructure which has been specifically designed to be conducive to good production.

“We are proactive in our outreach to the industrial sector. We have created a value chain from top to

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bottom as a focal point for servicing the needs of the investor. We are the only entity that can grant industrial licenses and industrial land and therefore occupy a pivotal role for industrial FDI”.

“We work with GHC (General Holding Co.) and ADBIC (Abu Dhabi Basic Industries Company) with regard to the overall strategy, and implement it from there. We are open to all kinds of industrial enterprise, as long as it is self-financing and has a product that is competitive. Whatever is in my control, I will do to facilitate an investor, particularly in high end, capital intensive industries that require less in manpower. Each business has its own complexities, so we can meet each other, find a mechanism that works, agree a rental price and start from there.What we say, we deliver on, because the success of investors is our success.”

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Of the government’s Vision 2030 plan, Al Qamzi says that; “There is only one vision. It is cascaded down to each entity and we each implement our part of it in conjunction with one another.”

A point made and reiterated by ZonesCorp representatives at the Abu Dhabi Economic Forum, which took place in the Emirates Palace Hotel in Abu Dhabi and again at the Abu Dhabi Investors Forum in London was that the impact of the financial crisis has actually served to benefit the industrial sector in Abu Dhabi by bringing down prices.

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PAL Group of Companies An ideal partner in Abu Dhabi

PAL Group is an Abu Dhabi conglomerate with a wide variety of interests.

The company started at a small scale, but PAL now consists of 15 diversified companies with a foot print all across UAE and at international level as well.

“PAL is perhaps one of the ideal examples of the surging ambitions that UAE has fostered, becoming one of the leading business and social hub for developed economies. It is diversified because of the broad range of sectors that the company operates in.

Broadcasting, construction, robots, hotels, tourism, logistics, information technology, design consultancy, defense and fisheries to name but a few”, asserts CEO Syed Basar Shueb.

Such a wide variety of concerns are handled via a partnership model. The CEO is keen to position the group as the venture partner of choice for companies of interest that are looking to enter the Emirate & international frontiers. PAL Group’s affilation with Royal Group as its holding entity provide a powerful business front to operate and charter a daring course of expansion which they are proud to be a part of.

PAL is committed to deliver and operate the group as a self driven, professional company based on systems and processes. Their mission, vision & core values are adding value and growing in line with Abu Dhabi’s Vision 2030 and the UAE Government.

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Group companies are already certified and operating under strict compliance and certification processes known as IMS – Integrated Management Systems (Includes ISO 9001, ISO 14001 & OHSAS 18001).

They are in the process of integration and building their system to be more lean to become a leading company demonstrating sustainable and accountable systems and processes in the region. These growth strategies are directed by the leadership of Syed Basar Shueb enable PAL Group to grow globally whilst also allowing the enhancement of the local business foot print. “Green PAL Group” – GPG will be the upcoming theme for 2013, which will minimize the operational carbon foot print and add value to the current compliance with Estidama guidelines for UAE. PAL Group is a forward-thinking company, and as such, has keenly established its cleantech credentials.

One of the core areas in which the group excels is construction. One of the main subsidiaries, PAL Technology is involved in district cooling, water desalination, waste water treatment, dredging and reclamation projects. Fuelled by professionals seasoned in engineering, procurement, installation, operation and maintenance, PAL Technology’s Construction & Utility Divisions along with dredging services is a dominant player in the region.

Under its comprehensive infrastructure blueprint, “Plan 2030”, Abu Dhabi recently built a new

central business district, named Reem Island. The construction company, Tamouh was responsible for the majority of the building that took place, but it was PAL Technology that were responsible for the construction of the District Cooling Plant, which was completed in record time – just 18 months.

In a climate as hot as that of the Arabian Gulf, air conditioning is a must-have. Power costs and environmental impact can be reduced considerably by amalgamating the cooling requirements of a local district and serving them using a large cooling plant instead of individual units. The net effect of the plant is that energy consumption is reduced by 50% in the new Marina Square devlopment that the plant serves.

Tafseer Contracting Company is also a very fast growing construction contracting PAL Group company. Since its launch, it has executed a diverse portfolio of real estate and infrastructure projects.

Today, the company encompasses an array of plants and state of the art equipment as well as multinational team of highly qualified staff. Our clients recognize our commitment to the highest quality of work delivered on schedule and within budget. Drawing on its robust resources the company has earned a prestigious reputation with particular recognition for its Civil and Building works. They are certified for Integrated Management System for all three standards providing all type of building construction, civil and infrastructure building services, labour camp and warehouses construction, industrial construction and steel works for all type of sectors in the UAE.

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One of the central issues that face the world over the coming decades will be the availability of potable water. This is another issue which, for now, is felt more acutely in the Gulf than in Europe. PAL Technology recently built a desalination plant for Dubai Electricity & Water Authority. The plant utilises an advanced technique of reverse osmosis which represents a new departure in water treatment in the region by converting sea water in to potable water.

PAL Technology has also been responsible for a considerable number of housing development projects throughout the Emirate. The implementation of eco-friendly living systems are a priority in such developments, as exemplified by the adoption of the “Neopour” insulation technique which originated in Germany. This particular building technique means that the insulation guarantees reduced air conditioning costs and hence, mitagates the environmental impact.

Professional Arabian Construction Engineers (PACE) part of PAL Group serving as Class a Technical Consultancy services for Construction and Oil and Gas industries. PACE is committed to provide a complete spectrum of integrated design and management solutions through dedicated team of engineers, technologists, and technicians and by utilizing the most advanced equipment available on the market. They have an impressive roster of clients across the UAE. Of course, green credentials are all very well and certainly identify a company as progressive and socially-conscious. One should be mindful however, to keep an eye on progressive technologies, just to keep one informed. Which brings us to an interesting footnote on one of PAL’s other interests, Robotics.

PAL Robotics produced a humanoid robot with face recognition and navigation systems., The robot has been deployed in the Abu Dhabi National Exhibition Centre (ADNEC) in order to direct delegates at the Exhibition Center.

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Another PAL venture, Hydra Chess, has the stated goal “to dominate the computer chess world and finally have an accepted victory over humans”. As the great newsman Kent Brockman may say at this juncture, “I don’t know about you, but I for one, welcome our new robot overlords”.

PAL Systems is another emerging brand providing integrated IT infrastructure solutions across the region.

They plan, design, build, support and manage IT solutions that help the client to achieve their strategic goal to have effective and efficient communication structure.

PAL’s Infinity TV 1 & 2 serves as a family TV station which provides a variety of entertainment and education shows that are suitable for all viewers. These include movies, sitcoms, documentaries, and musicals as well as children and sports programs. By catering to the tastes and preferences of its audience, Infinity TV has succeeded in building a loyal viewer base mainly from the Gulf Region by presenting round the clock entertainment for the entire family.

Al Jaraf Fisheries is one of the leading companies specializing in shrimp farming, fish farming and the production of the finest fresh and frozen seafood.

They provide complete solutions for coastal & inland aquaculture, rated Grade A by Abu Dhabi Food Authority in 2012.

Fabulous Abu Dhabi Hotel Management Company compliments PAL Group’s growth, it was established in 2009. The first four hotels to be operated by Fabulous will be in the UAE, Mexico, Kazakhstan and Morocco. Sub-brands under Fabulous include Canvas Hotel Group, Near East Lebanese Restaurant, Café ByDesign, Palette All Day Dining, Taste Revolution and the Bootleg Bar. Al Jaraf Travel & Tourism (AJTT) came into being on 15th May, 2003, as our subsidiary. Since then the pursuit of excellence and quality service remains our central and salient assignment to be justified with.

Being young but challenging, pushed us through within no time to grab our share in the volatile travel market of U.A.E. From initially a relatively modest travel agency, we have expanded our activities into travel, tourism and cargo in the past years, and today, spanning over two year’s time, we are one of the fastest growing agencies in United Arab Emirates.

PAL serve nearly all the government organizations in Abu Dhabi, the capital of the UAE. Whether the trip is business or leisure, air tickets or packages, car-rentals or cargo forwarding and clearance, AJTT is a one-stop shop for anything.

Today the company is known for being a leading business solution provider as a result of sheer persistence and accrued in-house expertise. As a multipurpose corporate entity with integrated investments across a wide range of industries, PAL continues to grow and explore unique and innovative business fronts across the region and international markets.

PAL also emerged as CSR (Corporate Social Responsibility) based organization, delivering sustainable responsible business solutions and adding value to the society. The company invests in community building, in employee development programs and make contributions to development societies.

They engage employees in healthy activities which enable them to balance between work & family responsibilities.

Helping developing communities through donations & charity drives help group operations to become Socially Responsible Agent (SRA).

As a group, PAL have a strong footing in the local market.

The company welcomes proposals for joint ventures, and purports to be “Your Ideal Joint Venture Partners in Abu Dhabi”.

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