Arab British Chamber of Commerce Newsletter 5

Arab-British Business Volume 36 Issue 1 January 2013 Monthly bulletin of the Arab British Chamber of Commerce Chamber Hosts Moroccan Tourism Minister Page 3

Agadir, Morocco

CHAMBER NEWS

MOROCCAN TOURISM MINISTER VISITS THE CHAMBER The Arab British Chamber of Commerce began its events programme for 2013 with an important Ministerial Business Roundtable with the Moroccan Minister of Tourism on the afternoon of 17 January.

The Chamber was privileged to host His Excellency Dr Lahcen Haddad, the Minister of Tourism for the Kingdom of Morocco, who delivered a detailed briefing on his country’s latest plans to attract more investors and visitors.

Introducing the Minister, Dr Afnan Al Shuaiby, Secretary General & CEO of the ABCC, pointed to Dr Haddad’s international professional qualifications and his impressive career background in leading organisations such as the World Bank and UNDP.

Monthly bulletin of the A-BCC Editorial Team Abdeslam El-Idrissi Cliff Lawrence David Morgan Dr Yasmin Husein Arab-British Chamber of Commerce 43 Upper Grosvenor Street London W1K 2NJ Tel: +44 (0) 20 7235 4363 Fax: +44 (0) 20 7245 6688 d.morgan@abcc.org.uk (English Editorial) y.husein@abcc.org.uk (Arabic Editorial) www.abcc.org.uk

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Morocco, he said, had achieved notable economic stability since the 1990s, controlling its inflation, managing its deficit and reaching an average growth of 5%. Even during the past exceptional year growth had reached 4.5%, the Minister said, and within ten years, Morocco had managed to triple its GDP. These impressive results had been achieved with the help of careful public investment to upgrade the country’s infrastructure and improve the business climate, H E Dr Haddad said.

Morocco was now seeking to attract more private investment to further strengthen its economic performance.

Dr Al Shuaiby warmly thanked the Moroccan Embassy and its Ambassador HRH Princess Joumala Alaoui, for their strong support for the work of the Chamber and for their co-operation in the planning of the ministerial roundtable.

Investors were attracted by the country’s modern infrastructure, including its 14 international airports; and its transport system that comprised highways, tramways and an expanding rail network.

She described HRH Princess Joumala Alaoui as a persuasive advocate of the benefits of doing business with Morocco.

The country’s 11 trade ports included the TangerMed cargo port which was a hub for trade in the Mediterranean and on track to become one of the largest ports in the world, the Minister said.

Chairing the discussion, Baroness Symons, ABCC Chairman, mentioned that the Chamber was planning a business delegation to Morocco within a few months.

H E Dr Lahcen Haddad explained the purpose of his visit to the UK which was to meet potential investors and introduce the new economic opportunities in Morocco’s tourism sector.

The Minister had already addressed a meeting of parliamentarians in Westminster and an event hosted by the Ambassador.

He praised the close relations that Britain and Morocco enjoyed together, which he characterised as historic, but with new potential emerging.

The Minister briefly outlined some of the successful measures that Morocco had taken over the past few years to attract investors by creating an open economy that was becoming integrated in the global economy.

Morocco had seven marinas which were attracting tourists and had plans to build more.

Other attractions cited by the Minister included Morocco’s competitive labour costs, its 55 free trade agreements with countries worldwide and its ease of doing business due to extensive law reform.

The tourism sector was the country’s second largest employer and first in terms of foreign currency. Tourism had achieved record growth since 2001, he said.

Proximity to Europe meant that visitors from European countries were Morocco’s biggest market.

The Minister described the country’s success in combining aspirations to modernity with respect for its traditions. Morocco was rightly proud of its rich culture with a diverse heritage coming from Europe, Africa and the Arab world.

CONTENTS Chamber News

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Members’ News

6

New Members

8

Rail Opportunities

10

Business & Project News

12

Arab Telecoms Markets

16

Distinctive Publishing or Arab-British Chamber of Commerce cannot be held responsible for any inaccuracies that may occur, individual products or services advertised or late entries.

No part of this publication may be reproduced or scanned without prior written permission of the publishers and Arab-British Chamber of Commerce.

Online Retail

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Tunisia Real Estate

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Law Reports

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Tenders

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Qatar Economy

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ISSN No: ISSN 0958-8116

Business Events and Trade Fairs

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CHAMBER NEWS

CHAMBER HOSTS LAUNCH OF BEST OF BRITAIN IN SAUDI ARABIA The Chamber held a launch event on the evening of 5th December to support the Best of Britain – Saudi Arabia 2013 exhibition which aims to provide a showcase for British brands in the fashion, design and retail sectors in the Saudi market.

The launch, chaired by Baroness Symons, was attended by more than 60 representatives of companies in the creative industries sector who were keen to learn more about the opportunities in the Saudi market.

The trade exhibition, which is being fully supported by UKTI and the British Council, is scheduled to take place in Riyadh over three days on 10-12 March 2013. It will consist

of exclusive viewings for specially invited customers and investors, workshops and displays to showcase products and talent, and a trade fair open to the public.

The exhibition is expected to provide a platform for innovative British brands and creative industries to introduce themselves to the Saudi consumer market where there is potentially huge demand for luxury and designer goods.

Baroness Symons, ABCC Chairman, Mr Chris Innes-Hopkins, the Commercial Counsellor and Director of UKTI in Saudi Arabia, Ms Ghadia Al Tobaishi, Executive Vice President, Dunia InterMedia, Ms Priya Kaur-Jones, Editor, Dunia InterMedia, and Mr Adrian Chadwick, Director, British Council in Saudi Arabia.

Opening the discussion at the launch, Baroness Symons, who is Chairman of both the ABCC and the Saudi-British Business Council, stated that the Chamber was extremely pleased to support such an initiative and urged UK businesses to look to the Saudi market.

She also encouraged them to join the ABCC and make use of its range of services, which includes help with visa applications, cultural training and export documentation.

CHAMBER NEWS

Ms Priya Kaur-Jones

Ms Ghadia Al Tobaishi

PROGRAMMES Saturday 9 March 2013 Harvey Nichols event 10.00 Set up of all exhibition stands 19.30 – 22.00 Harvey Nichols event at British Embassy – invitation only

Sunday 10 March 2013 Mr Chris Innes-Hopkins, the Commercial Counsellor and Director of UKTI in Saudi Arabia, stressed that the retail market in the Kingdom was the biggest in the Middle East and its economic growth remained strong having achieved 6.8% in 2011.

Saudi Arabia was no longer just an oil based economy but was changing rapidly and investing to diversify, he said. Consumer sentiment was high in the country where 60% of the population was under the age of 25.

Mr Innes-Hopkins stated that the forthcoming Best of Britain exhibition formed part of the “Great” campaign to promote British brands inspired by the success of the 2012 Olympics and the high profile that it generated for UK goods and services.

The event would offer opportunities for firms to establish a presence in the Kingdom and the chance to raise awareness of their brands in the market. It would provide important opportunities to meet potential investors and business partners in the Kingdom in order to market British brands more effectively in the Kingdom, Ms KaurJones stated.

Finally, Mr Adrian Chadwick, Director, British Council in Saudi Arabia, explained why his organisation was supporting the forthcoming exhibition and gave a brief outline of the activities undertaken in the cultural and education fields in the Kingdom, particularly in the provision of English language courses for Saudi nationals for which there was a growing demand.

Ms Ghadia Al Tobaishi, Executive Vice President, Dunia InterMedia, the Riyadh based events promotion company responsible for organising the exhibition, delivered a briefing on her company’s work on a wide range of major events in Saudi Arabia. Giving an insight into the dynamic events sector in the Kingdom, she explained that her company’s guiding ethic was “knowledge applied creatively”.

The launch event proved to be highly successful in highlighting the emerging opportunities for British innovative industries, leading brands and luxury goods in the Saudi high growth market.

Meanwhile, Ms Priya Kaur-Jones, Editor, Dunia InterMedia, explained in detail why businesses seeking to enter the Saudi consumer market should take part in the Best of Britain exhibition.

Companies seeking to find out more about Best of Britain –Saudi Arabia 2013 can check the website dedicated to the event:

Attendees indicated considerable interest in taking part in the trade exhibition which is going to be held at Riyadh’s exclusive Nayyara Banqueting and Convention Centre.

http://www.bobksa.org/2012/en/default.aspx

Invitation only 10.00 - 12.00 Grand Opening "by invitation" 16.00 – 22.00 Exhibition open for trade Workshops 16.00 – 18.00 Workshop 1 18.00 – 19.00 Workshop 2

Monday 11 March 2013 10.00 - 14.00 Exhibition open for trade only 16.00 – 22.00 Exhibition open to the public – entrance fee for charity

Workshops 10.00 – 12.00 Workshop 1 16.00 – 18.00 Workshop 2

Tuesday 12 March 2013 10.00 - 14.00 Exhibition open to the public – entrance fee for charity 16.00 – 22.00 Exhibition open to the public – entrance fee for charity

Workshops 10.00 – 12.00 Workshop 1 16.00 – 17.00 Workshop 2

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MEMBERS NEWS

LCP PUTS LONDON CENTRAL RESIDENTIAL ON THE SHARIA MAP It has been a tremendous year for specialist asset manager, London Central Portfolio (LCP).

Under CEO Naomi Heaton’s guidance, 2012 heralded the launch of London Central Apartments (LCA), the UK’s first Sharia compliant residential property fund. With the end of the year bringing with it a successful equity raise, ABCC member LCP is the only company to have pioneered and successfully brought to market three closed-ended residential funds exclusively targeting Prime London Central.

As Islamic investment options become increasingly important, LCA represents a major innovation. Outside the Middle East there have been very few investment choices for Muslim investors and LCA has been a welcome addition, with almost a third of the uptake coming from Sharia conscious investors.

The fund, which also qualified under the taxfriendly SIPP, ISA and QROPS rules, is now building up a diversified portfolio of one and two bedroomed properties in Central London, offering strong capital growth potential and attracting high quality tenants.

ARAMCO CONTRACT BOOST FOR BRITISH FIRM London-based engineering and management consultancy and ABCC member, Berkeley Engineering Consultants (BEC) has entered into an Agreement for Services with Saudi Aramco, the largest oil company in the world.

The contract, worth in excess of $500,000 will allow BEC to become a preferred engineering consultancy to Saudi Aramco projects, and will further embed its presence in Saudi Arabia.

Irteza Piracha, (CEO) from BEC said: “This contract is a huge boost to BEC, building on an already successful relationship in the Saudi market. It will also mean increasing staff in the UK. Assistance from UK Trade & Investment in the UK and Saudi has proved invaluable when incorporating our local Saudi Company and we would highly recommend tapping into UKTI’s global network when looking to establish your business overseas.”

LCA has already acquired its first five properties across Hyde Park, Marylebone, Kensington, South Kensington and Pimlico which are being renovated and interior designed as boutique hotel-style suites. The fund aims to achieve an annual return of 10% 13% (IRR) after a 5 year hold.

The year has also seen successful results posted for LCP’s first two funds. Closed just 18 months ago, the Recovery Fund has shown 23% growth in the last year. The first fund, the London Central Portfolio Property Fund (closed in 2008), has equally shown an above target return of 16% over the same period.

LCP’s other achievements in 2012 include continued success for its private client arm.

Direct investors seeking alternative safe haven assets have continued to see the advantages of the six square miles of London’s most prime real estate. LCP’s one-stop service not only helps secure the right properties at the best prices, but provides essential ‘follow-up’ including renovation, interior design, letting and management.

With the average price of a Central London flat breaching the £1m barrier for the first time, LCP will be launching two more investment opportunities in 2013, providing access, once more, to this exclusive market with the objective of maximising profit for its investors.

LCP is now developing a new Sharia compliant opportunity which will provide access to a professionally managed portfolio of apartment blocks. LCP is looking for a joint venture partnership with a Middle Eastern family office or institution. The aim is to offer consistent income, alongside London Central’s recognised capital upside; a combination favoured by Gulf investors, pension funds and institutions more generally.

LCP will also be looking at launching a residential REIT which will be another first for Central London, providing market access to the mainstream investor at a fraction of the cost of direct investment through a regulated vehicle.

For more information please contact Naomi Heaton, CEO of LCP at naomi@londoncentralportfolio.com or on 02077231733

Business Breakfast Meetings Mr Chris Woodward Dip IoD, Director, Louvre Trust Corporation (UK) Ltd, an ABCC member, is also a Trustee of The Ectopic Pregnancy Trust, and has given us notice of the following business breakfast networking meetings which are open to members to attend.

Tuesday 26 February: Speaker Tony McNally, MD, Amicus Mentor, Security & Crisis Management Thursday 16 May: Speaker Ian Glazer, MD, Glazer Business & Brand Consultants Ltd. Thursday 12 September: Speaker Alan Edwards, Outside Organisation Thursday 14 November: Speaker Felix Dodds, Associate Fellow at Tellus Institute, Writer, Lecturer, Speaker & Consultant.

Time Registration 7.30am Breakfast 8.00am Speaker & Q+A 8.45am Finish 9.30am Venue: KMA Planning LLP, 50 Brook Street, London, W1K 5DR Attendees should complete an online registration form and return by email to ept@ ectopic.org.uk by 11 February 2013.

For further details please see: http://www.ectopic.org.uk/wp-content/ uploads/Business-breakfasts.pdf

MEMBERS NEWS

RITCO SEES EXPANSION OF ME SHIPMENTS A member of the ABCC since 1989, Ruari International Trading Corp. Ltd. (Ritco) has been achieving considerable success lately in expanding its volume of shipments to the Middle East, primarily Saudi Arabia, the UAE and Oman. Ritco is a long established supplier of feed ingredients, from commodities to UK manufactured biosecurity products and nutritional aids, for the livestock industry.

Shipments of cottonseed in particular have increased substantially in recent years, reaching 40,000 metric tonnes in 2012 to the largest dairies in the region. This is a result of the close co-operation with those cotton gins that produce the highest quality seed in both the USA and Greece.

Ritco has also become active in supplying the equine sector in Saudi Arabia and Oman,

providing prestigious customers with both feed and bedding products for their valuable horses. Significant health benefits have been observed, and this business is expected to expand rapidly due to the importance owners place on the wellbeing of their animals.

More information about Ritco can be found at www.ritco.gr and about the parent group at www.shacolasgroup.com.cy

CHAUFFEUR CARS HELP YOU TO SHOP Shopping in London’s West End is a high fashion experience.

With luxury brands from all over the world making their home in places like Bond Street or Sloane Square you are able to spend many delightful hours. When shopping here you get a refreshing and rewarding feeling browsing from shop to shop.

With so many shops to choose from and so little time even with a full weekend free, your chauffeur can become an invaluable asset. You may think that transportation is not an issue,

but when you go on a shopping spree, you can very soon end up acquiring plenty of shopping bags. Then you begin to wonder, “Where could I leave all these goods?” If you have your own vehicle, you do not have to worry about bringing all those shopping bags because you can keep it in the car. At your request, your chauffeur will become your personal shopping assistant for the day. When you have too many bags they can be taken directly to your Mercedes S class for safe storage. The chauffeur can even wait at the store for your goods while you move on to your next venue.

At Robinson Chauffeur Service you can hire a chauffeured luxury car for a half day or full day shopping trip. And then at the end of the day he can take you on to the airport to fly home, your hotel to relax or to dinner at one of London’s finest restaurants. You will be safe, secure and your shopping will be looked after for you. And with a uniformed gentleman to assist you, you will be the epitome of “class”. http://www.chauffeurservicelondon.com/

SIGNATURE MUSEUMS - SIGNATURE ARCHITECTS: PLANNING AND RUNNING A SUCCESSFUL SIGNATURE MUSEUM Following on from many successful previous conferences, ClickNetherfield’s 2013 conference will take place on 26th February 2013 at the Museum of Islamic Art in Doha.

Entitled ‘Signature Museums - Signature Architects: Planning and Running a Successful Signature Museum’, the conference has a fantastic line-up of speakers and promises to provide significant opportunities for knowledge enhancement, relationship building and networking with a wide variety of international museums and museum professionals.

and Karen Exell, UCL Qatar. Director of the Museum of Islamic Art, Aisha Al Khater will provide with welcome for the day.

The V&A’s Moira Gemmill will give the keynote address, and other speakers include: Borina Andrieu, Wilmotte Design; Maria Piacente, Lord Cultural Resources;

Please contact Lesley Weir on l.weir@ clicknetherfield.com if you have any questions.

Please visit our dedicated events website at www.clicknetherfieldevents.com for more information and to book your place. Please note that A-BCC members qualify for a 30% discount on the £75 booking fee.

SGS SEES BUSINESS SUCCESS IN THE MIDDLE EAST IN 2012 ABCC member SGS has seen continued growth in the number of successful inspection and certification requests against exports bound for Middle East Markets in 2012, working predominantly with exporters sending a wide range of goods into Saudi Arabia (SASO certification) and up to November 2012 Kuwait (KUCAS).

In 2012 SGS issued certification for over 3,000 exports into Middle East markets and hope to continue our growth and success in this area, and these markets in 2013.

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CHAMBER NEWS

NEW MEMBERS Anamax Limited Anamax House Oxford Road GERRARDS CROSS Buckinghamshire SL9 7BB Tel: +44(0)1753-890 500 Fax: +44(0)1753-480 802 Email: grahamnye@anamaxgroup.com Website: www.anamaxgroup.com Contact Mr Graham Nye Managing Director Business Activity: Computer spares and election materials Bank of London and the Middle East plc (BLME) 12 Manchester Square LONDON W1U 3PP Tel: +44(0)20-7618 0078 Fax: +44(0)20-7618 0001 Email: michelle.arnold@blme.com Website: www.blme.com Contact Ms Michelle Arnold Head of Marketing and Communications Business Activity: Islamic investment banking and wealth management Bupa Cromwell Hospital 162-174 Cromwell Hospital LONDON SW5 0TU Tel: +44(0)20-7460 5700 Email: shams.maladwala@cromwellhospital. com Website: www.bupacromwellhospital.com Contact Mr Shams Maladwala Commercial Director Business Activity: Expertise and state-of-theart equipment as well as a comprehensive range of clinical services and medical and surgical specialties.

Jetrade Limited Unit G Henfield Business Park Shoreham Road HENFIELD West Sussex BN5 9SL Tel: +44(0)1273-495100 Fax: +44(0)1273-495015 Email: ness@jetrade.com; michael@jetrade. com; ryan.smith@jetrade.com Website: www.jetrade.com Contact Mr Michael Foreman Managing Director Business Activity: Supply and repair of aircraft spare parts

Alban Travel Ltd & Dar Aliman UK Ltd Winchester House First Floor Unit 103 259-269 Old Marylebone Road LONDON NW1 5RA Tel: +44(0)20-7170 4230 Fax: +44(0)20-7170 423 Email: daralimanukltd@hotmail.co.uk Website: www.daraliman.net Contact Mr Ahmed Jinidi Managing Director Business Activity: Travel agent for Hajj and Umrah

Sahara Africa AbiSetta Second Street Behind GhabbaSamawiya Tripoli LIBYA Tel: +218 21 3408 678 Fax: +218 21 3408 679 Email: d.nobre@compass-hq.com Website: www.compass-hq.com Contact Ms Kathryn Jennings Managing Director Business Activity: Oilfield equipment and consumables

Corporate Research and Investigations, CRI Group Level 33 25 Canada Square LONDON E14 5LQ Tel: +44(0)20-7038 8366 Email: zanjum@crigroup.co.uk Website: www.crigroup.co.uk Contact Mr ZafarAnjum Group Chief Executive Officer Business Activity: Global supplier of investigative, forensic accounting, business due diligence and employee background screening services. A member of the DIFC, CRI Group safeguards businesses by establishing the legal compliance, financial viability, and integrity levels of outside partners, suppliers and customers seeking to affiliate with your business.

Wachter-Gallagher Limited 3 Heasewood HAYWARDS HEATH West Sussex RH16 4TJ Tel: +(0)144-4410 991 Email: melanie@chearygallagher.com; sarahwachter@hotmail.com Website: www.wachter-gallagher.com Contact Miss Melanie Cheary Director Business Activity: Training and support services for women in the Middle East, Africa and Asia who seek to enhance their presence in business and politics; emphasis on transferring practical skills that can be implemented right away.

Ambition is to build a network of confident female communicators and leaders that will be sustainable for generations to come.

Management and Economics Consultants International Limited 1 Howard Close New Southgate LONDON N11 1EH Tel: +44(0)20-8361 9934 Fax: +44(0)20-8361 7632 Email: info@meciltd.com; kadom.shubber@ btinternet.com Website: www.meciltd.com Contact Dr KadomShubber Director & Chairman Business Activity: Management consultancy and training

Mr Hakim Azaiez University of Wales Finance Department, King Edward VII Avenue Cathays Park CARDIFF CF10 3NS Email: hakim@gulfcentralagency.com

ASSOCIATE MEMBERS

Dr HayaAlhargani King’s College London 23 Neptune House 1 Neptune Way SOUTHAMPTON SO14 3FN Email: hayone1@yahoo.com Dr Rami Ghannam Egypt Nanotechnology Centre Cairo University Zayed Campus Giza EGYPT Tel: +201 003441 856 Email: rmghannam@gmail.com Contact Dr Rami Ghannam Senior Research Scientist Business Activity: Nanotechnology research

TRADE SERVICES

ARAB BRITISH CHAMBER OF COMMERCE www.abcc.org.uk

FOREIGN OFFICE SERVICE

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RAIL OPPORTUNITIES

RAIL OPPORTUNITIES IN SAUDI ARABIA AND QATAR

Huge spending plans to develop railways in the Middle East and North Africa offer potentially lucrative opportunities for UK rail professionals and consultancy experts.

New opportunities across the supply chain in the sector are emerging as governments in the region invest in the growth and expansion of their transport infrastructure for the future economic and social development of their countries.

The scale of the opportunity was outlined at a seminar for rail industry executives held at the London offices of international lawyers, Clyde & Co, a member company of the ABCC, on 4 December 2012.

Detailed briefings from legal experts with the firm presented an overview of new rail projects taking place across the region as well as presentations that looked in more detailat the ambitions of Qatar and Saudi Arabia.

The aim was to explain the key issues that companies need to consider when doing business in the markets.

David Moore, a transport projects lawyer, began the seminar with an examination of the scale of the opportunities, stating that total investment total investment in MENA rail projects amounted to $190 billion of which less than 10% or $18bn worth had so far been completed.

Projects were planned or under way in a range of areas including the construction of new freight routes, urban light rail, city-wide metrosystems and high-speed long distance rail networks running crossing national borders.

Taken together, Qatar and Saudi Arabia made up about half of the total spending in the region. Moore stated.

Explaining some of the factors that were driving forward the Arab rail plans, he indicated, included the pursuit of greater efficiency, cooperation, redevelopment and the need for affordable transport to meet the rising demand of the local populations.

Saudi Arabia, for example, was investing in new freight lines in a bid to make better and more efficient use of its mineral resources.

It is expected that Saudi Railway Organisation (SRO) will be able to operate trains on the track from 2014.

Meanwhile, greater collaboration was enabling the construction of the GCC rail network from Kuwait to Oman.

North-South Line

Rail formed part of the reconstruction plans of Iraq.

A key driver behind plans to construct new metros concerned attempts to develop affordable transport which would ease urban congestion and address environmental targets, Moore said.

Saudi Rail Projects He went on to flag up the major projects in the Kingdom:

Mecca to MadinahHSR Link This high speed railway (HSR) linking the holy cities of Mecca and Madinah (Medina) is 444km long and costs $16bn.

The scheme presents considerable technical challenges, Mr Moore explained, due to the track’s length and the arduous weather and environmental conditions, namely the shifting sand dunes and the exceptional temperature levels, both of which can damage the track.

He said that a civil works package had been awarded in 2009 to a consortium including Al-Arrab Contracting and the China Railway Engineering Corp. The contract for the development of stations had also been let.

In 2011, a Saudi-Spanish consortium was awarded the contract for the track and signalling, for the procurement of rolling stock and for the operation and maintenance of the system for 12 years.

This has the record of being the largest railway construction project in the world. It is a 2,400kn long single track network that will eventually carry passengers as well as industrial materials and minerals.

It is planned that 8 to 12 trains a day will run on the track.

Its primary purpose is to carry bauxite and phosphates mined in the north of the country to the Gulf coast and assist Saudi Arabia in becoming the world’s second largest minerals exporter.]

Section 1 of the project has been constructed

by Thales and the Saudi Bin Laden Group with trial operations taking place in 2011.

The project is financed by a public investment fund managed by the Saudi Ministry of Finance.

Saudi Landbridge This is a delayed project designed to provide a rail linking the Red Sea with the Persian Gulf at a cost of $7bn. The 950kn line between Riyadh and Jeddah is conceived primarily for conveying container traffic.

The scheme was originally let as a Public Private Partnership but this was abandoned in 2009 and it was since decided to develop the project on a more traditional balance sheet basis via EPC tenders.

RAIL OPPORTUNITIES

It is the aim to have significant parts of the network up and operational by 2019 in time for the hosting of the 2022 FIFA World Cup when there is expected to be a major influx of visitors; the remaining sections are expected to be all operational by 2026.

Doha Metro This is designed to be one of the most modern urban rail networks in the world whose overall length will be 300km of track on which will be 98 stations. The scale of the project can be compared to the London Underground which consists of 402km of track and 270 Tube stations.

Mecca Metro The holy city of Mecca’s 18.1km metro monorail system opened in November 2010.

Phase One was constructed by China Railway Construction Corp at a cost of $1.8bn and in a record time of 21 months, allowing it to claim to be the fastest rail construction project ever.

This initial line is the part of what will be a five line network.

Riyadh Metro This $8bn scheme involves the construction of six lines totalling 180km of track of which 49km will be sub-surface.

Four bidders tendered to develop Lines 1 and 2 on a design and build basis and to provide the rolling stock. The remaining lines are to be tendered as Phase 2 of the project.

The seminar was informed that there are some reports suggesting that the task of operating the network is also being tendered.

Jeddah Metro This project is in its infancy and will comprise a 108km long railway that will run across the city with three main lines: one of 67km will have 22 stations; one 24km with 17 stations; and one 17km with 7 stations.

The rail system will also incorporate a bus network of 816 buses and 2,950 bus stops.

The project is to be split into three phases valued at $6.8bn, $5bn and $4.7bn lasting 3, 5 and 7 years respectively. Bids for Phase 1 are to be invited soon.

Qatar Rail Projects Turning to Qatar, David Moore explained that Qatar had an estimated $41.8bn worth of projects in the pipeline. The Qatar Integrated Railway Project consists of four metro lines in the capital Doha, tram routes in West Bay and Lusail, high speed lines and dedicated freight railways.

The Doha Metro will run in part through underground tunnels, overhead rails and at the ground level. It will link all the major destinations in the capital such as the Education City, West Bay, Lusail urban development area, Doha airport and the business and conference centre.

The project is being developed on a “traditional basis”, Moore explained, with the construction of Phase 1a of 75.4km scheduled to begin in early 2013. It is expected to be completed in 2019.

Lusail New City Rail and West Bay The Lusail New City Rail system is planned to connect the districts within the new Lusail 38km waterfront development located 15km north of Doha.

It will consist of four main tram lines extending over 30.5km both underground and overground with 36 stations.

The project is being procured on a traditional basis.

Linked to this is the prestigious West Bay area “people mover” rail project, which will be a 10km looped metro system connecting the Doha peninsular and financial district.

It is planned as an underground system, but costs may mean that it is redesigned as a above-ground project.

Heavy Rail A 350km/hr high-speed passenger railway to Bahrain will include a further 25km of tunnelling under Doha, four stations and a causeway. There will be a 250km/hr highspeed passenger railway to Saudi Arabia and there will be a freight rail provision. This will link to the GCC rail network.

Major Rail Projects in Other Arab Countries Qatar and Saudi Arabia are not alone in their plans to develop their rail networks. Several other key Arab countries have rail plans at various early stages of development.

These include Kuwait which is developing a metro and a high-speed railway; Oman which is planning to announce a national railway project soon; and, not least, the UAE which already has the Dubai Metro, operating since September 2009 and one of the first urban rail networks in the Arabian Peninsula.

According to reports, more than 110,000 people, nearly 10% of Dubai’s population, used the metro in its first two days of operation; the metro carried an estimated 10 million passengers during its first six months of operations. The UAE also has plans for an Abu Dhabi Metro and Etihad Rail.

Outside the GCC, Iraq and Jordan have significant plans for new rail projects: Iraq is planning a high-speed rail and upgrading the track from Basra to Baghdad and Baghdad to Mosul. It has also announced plans for an 11km monorail in the southern province of Karbala and various metro systems around the country. Meanwhile, Jordan has plans for a light rail connecting Amman and Zargu and an Aqaba rail link with Amman.

There are several intended uses for the various railway schemes envisaged in the Middle East from long distance travel at high speed, to urban citywide commuter rails and heavy freight lines.

The projects could be financed by two main methods, Moore told the seminar, namely the traditional public sector financing and project finance or PPP. The fact that several of the networks were cross-border operations raised separate issues of coordination and collaboration.

The range of infrastructure that was required consists of components needed for the track, construction materials required for new stations and depots. Opportunities existed for rail suppliers and consultants.

In addition, the region was in need of expertise in rail maintenance and operating infrastructure such as timetabling and signalling.

There were two main options available for obtaining the required rolling stock and these were leasing or outright purchase.

The question of who would operate the trains was also an important issue. Efficient regulation of the networks was required to manage questions of fares and freight charging and put in place standards that ensure safety. Another challenge was how the national networks would be able to coordinate their operations.

The seminar concluded with detailed presentations on the investment opportunities and options for establishing a company presence in the Qatari and Saudi markets delivered by respectively Jason Majid, a corporate commercial lawyer based in Doha and Ben Cowling, a partner in Clyde &Co’s Riyadh office.

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BUSINESS & PROJECT NEWS

40 GLOBAL FIRMS SET UP OPERATIONS IN BAHRAIN A total of 40 international businesses established operations in Bahrain potentially creating 900 jobs as a result of direct outreach activities carried out by the Economic Development Board (EDB).

The EDB attracted investments in 2012 from North America, Europe and Asia as well as the Middle East.

Non-financial services related investments comprised more than $102 million, particularly in the areas of professional services and information and communications technology.

During the year, the EDB continued to assist companies that had initiated projects in the kingdom in 2011, including the inauguration of a project by German industrial firm RMA. These businesses, along with Indian Polyester company JBF, invested $200m during 2011.

As a leading business and financial hub at the heart of the Gulf, a market now worth $1.4 trillion, Bahrain has long been considered the gateway to the region, with easy access to the large economies of Saudi Arabia, Kuwait and Qatar.

"We are delighted at the on-going international investment we have seen in 2012," Transportation Minister and EDB acting chief executive Kamal Ahmed.

"The increase in the number of foreign investors over the last year illustrates the kingdom's wide-ranging attractions, from the most skilled workforce in the region and liberal business environment to the low

costs, competitive taxation and ready access to the GCC market," he said.

"As we look forward to 2013, the EDB, both in Bahrain and in our offices around the world, will continue to work alongside our key partners across government and the private sector, to ensure we help deliver further opportunities for Bahrain," he said.

According to the companies that have set up in the kingdom, the reasons provided for the decision to invest in Bahrain during 2012 have included its long history as a regional financial centre and its unique role as a base in the GCC for international exports.

They also commended the availability of a highly skilled workforce and a low cost base and the active support provided by the EDB throughout the process of setting up and operating in Bahrain.

Foreign investments in 2012 include PineBridge Investments, the global multi-asset class investment manager, international service company Serco Consulting, Notz Stucki, the Geneva-based asset management firm, First Flight Couriers, India's largest domestic and international courier and Petra Solar, the US-based provider of smart energy solutions.

Gulf Daily News, 10/01/2013

SAUDI ARAMCO TO BOOST GAS EXPLORATION Saudi Aramco is boosting its gas exploration and development efforts to meet rising demand for electricity in the kingdom, Arab News reported.

using an advanced drilling ship designed to carry out operations in deep waters in order to find oil and gas in the Red Sea, the newspaper reported.

"King Abdullah has given instructions to carry out more gas drilling and development operations … to use gas, instead of oil, for electricity generation, as oil can be exported or kept for future generations," the newspaper quoted Petroleum and Mineral Resources Minister Ali Al-Naimi as saying.

The kingdom double the amount of gas previously estimated in the Madyan gas well, Naimi added.

Aramco is drilling at two new wells in Tabuk, which has "substantial reserves of oil and gas in commercial quantities" and is also

Aramco will drill more wells to appraise the Madyan field, which is forecast to produce 75m cubic feet a day of gas and 4,500 barrels a day of condensate for a 20-year period, according to the newspaper.

Arabian Business, 07/01/2013

UAE MOST CONNECTED ARAB COUNTRY The UAE is the most connected country in the Arab world and is in the top 25 globally, according to the DHL 2012 Global Connectedness Index.

The courier company’s index analyses the global connectedness of 140 countries, covering 99% of the world’s GDP and 95% of its population.

The index reveals the UAE is 23rd worldwide for connectivity, and that the Middle East and North Africa region is the fourth-most connected globally.

Of the top 10 connected countries, nine are in Europe.

The index however notes a “broad shift of economic activity toward emerging markets that has accelerated since the onset of the financial crisis: 72% of GDP growth around the world from 2008 to 2011 took place in emerging market countries.

The National, 07/01/2013

OMAN’S PETROCHEMICALS CAPACITY RISES Oman’s petrochemicals capacity grew at compound annual growth rate (CAGR) of 17% between 2007 and 2011 to reach 8.5 million tonnes in 2011, according to data released by the Gulf Petrochemicals & Chemicals Association (GPCA). Oman saw the value of its non-oil exports rise to $6.4 billion in 2010 which is an increase of 32% from the year before, the GPCA said.

The data shows that Oman’s Real GDP grew 5.4% in 2011 over the previous year.

The petrochemicals sector in Oman employed just 1,261 people in 2011, representing two per cent of the total number of employees in the sector across the GCC and 15% of the total workforce in its manufacturing sector.

The findings show that Oman’s manufacturing sector employed 121,310 people in 2011 comprising 9% of the total number of employees in the GCC manufacturing sector.

Times of Oman, 02/01/2013

BUSINESS & PROJECT NEWS

$1.6BN CANARY WHARF PROJECT PLANNED Canary Wharf Group and Qatar’s sovereign wealth fund are seeking to build as many as 790 homes at the site of Royal Dutch Shell’s London headquarters to gain from surging prices and rising rents in the UK capital.

Canary Wharf, which controls the financial district of the same name, and a unit of the fund will spend more than £1bn ($1.61bn) to develop eight buildings on the south bank of the River Thames. Six of the buildings, including a 37-story tower, will be residential properties, John Pagano, Canary Wharf’s managing director of development, said.

“Our aim is to enhance an area in need of a renaissance,” Mohammed bin Ali alHedfa, chief executive officer of Qatari Diar Real Estate Investment Co, said. “We are confident that our proposed development will put a reinvigorated South Bank at its rightful place at the capital’s heart.”

Shell, based in The Hague, will lease one of the two new office buildings and will also continue to own its existing 27-story office tower at the site near Waterloo rail station, the three companies said in a statement. Shops and streets will also be built at the project, which is scheduled to be completed in 2019.

Qatari Diar and Canary Wharf agreed to buy the 5.25-acre (2.12-hectare) site for £300mn, according to a July 2011 statement. The deal was contingent on the project winning planning approval within three years.

The companies are seeking to get planning permission by June and complete construction of the new Shell building in 2015 or 2016, Canary Wharf’s Pagano said.

One of the housing buildings may be kept and used for renting out units, he said.

Lambeth Council has asked developers around Waterloo, including Qatari Diar and Canary Wharf, to improve the area’s appearance and to build more attractive buildings than existing ones.

“The intention is that the station becomes part of a network of buildings and streets, rather than a single structure that dominates at the expense of other ‘place making’ ambitions,” the borough said.

Qatari Diar projects, including CityCenterDC in Washington and Chelsea Barracks in London, have a combined value of more than $35bn, according to the fund’s website.

Canary Wharf is controlled by Songbird Estates, in which a separate Qatari investment fund owns an almost 28% stake.

Bloomberg, 14/12/2012

LIBYA SET TO IMPROVE TERMS FOR FOREIGN OIL COMPANIES Libya plans to improve the terms for foreign oil firms ahead of its next licensing round and could begin seeking bids in the third quarter of 2013, the new oil minister said.

Libya has reserves of over 40bn barrels, but analysts have warned that some of the toughest terms in the business could act as a deterrent for companies, some of which have yet to return after the 2011 transition.

Abdelbari al-Arusi said he has made it a top priority to consult with foreign oil firms on how to make the country more attractive.

“I would say August or maybe July we will start looking for bids,” he added, without providing further details.

In the last bidding round, after the government in 2004 opened up territory that had been off-limits for years, oil companies scrambled for deals and accepted some of the industry’s tightest exploration and production terms.

In an interview with Reuters, al-Arusi said Libya could see another licensing round within the 15-month term of the interim government, adding “it depends on the situation here in Libya”. Other senior oil officials previously said there would be no new deals for at least a year.

Africa’s third largest oil producer has boosted output faster than many analysts expected to around 1.5mn-1.6mn bpd, and the focus is now shifting to expanding exploration of its vast desert acreage.

Al-Arusi, speaking on the sidelines of his first Opec meeting in Vienna, said no decision has been made on carving up responsibilities between the new oil ministry and the National Oil Corporation, headed by Nuri Berruien.

The hydrocarbons sector, which accounts for around 90% of government revenue, was run by the NOC before the revolution, and its former head, Shokri Ghanem, represented Libya at Opec.

In a sign that the oil ministry under al-Arusi could become more assertive, he said he would give final approval to 2013 crude oil contracts worth around $50bn.

He has announced a proposal to separate Libya’s exploration and production activities from refining, by creating two NOC bodies that would be based in Tripoli and Benghazi.

The capital would be the headquarters for an exploration and production company, and a separate company headquartered in Benghazi would deal with refining and petrochemicals.

Reuters, 14/12/2012

INVESTMENT BANKING BOOMING IN MIDEAST Middle Eastern investment banking fees reached $536.1 million during 2012, a 19% increase over 2011, according to a report from Thomson Reuters.

It also said M&A (mergers and acquisitions) transactions with Middle Eastern targets reached $20.0 billion last year, double the activity seen in the region during 2011 ($9.8bn), and the strongest annual total since 2008.

The report said equity capital markets issuance reached $9.4bn last year while total debt issuance reached $38.6bn in 2012, a 26% increase over 2011. M&A fees totalled $157.9mn during 2012, up 23% from the previous year ($128.8mn), and accounting for 29% of the overall fee pool.

Barclays topped the completed M&A fee rankings for 2012, earning 9% of the fee pool.

M&A transactions with Middle Eastern targets reached $20.0bn during 2012, double the activity during 2011 ($9.8bn), and the strongest annual total since 2008.

Telecoms was the most targeted industry with 30% of the year’s activity, followed closely by financials with 27%.

Egypt was the most targeted country during 2012, while Qatar was the most active Middle Eastern ‘acquiror’.

The UK is the most popular target for outbound Middle Eastern M&A transactions, followed by Brazil and India.

Arab News, 14/01/2013

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BUSINESS & PROJECT NEWS

ARAB MAGHREB UNION CREATES INVESTMENT BANK

20% GROWTH IN SAUDI REAL ESTATE GROWTH FORECAST

The five nations of the Arab Maghreb Union have created an investment bank with capital of $100 million to finance infrastructure projects in the region, Mauritania’s central bank governor said.

A pivotal change in the Saudi real estate market is expected in 2013, according to a number of financiers and specialised developers.

The investment bank will launch operations by the end of the first quarter 2013, and will partner with the private sector to finance projects in Algeria, Libya, Mauritania, Morocco and Tunisia.

“Today it was decided to make this creation effective and to provide Maghreb investment bank with a capital of $100 million, with an equal participations from each of the five member states,” Sid’Ahmed Ould Raiss said after the meeting of the union in the Mauritanian capital.

“The bank is intended to finance development projects, such as highways, promoting new technologies and also investing in energy,” Mr Raiss said.

The IMF head, Christine Lagarde, who attended the meeting, lauded the creation of the bank saying it would foster integration and spur regional investment.

The National, 10/01/2013

Al Eqtisadiah newspaper pointed out that this year will witness a boom in the market, as housing projects with affordable prices for citizens with limited income will be implemented, stressing that growth in this sector will exceed 20%.

Meanwhile, another study by Banque Saudi Fransi showed that public and private construction companies will need to build 275,000 housing units annually until 2015 to meet the demand for 1.65 million new houses.

Despite the lack of data on the real estate sector and mortgages, experts said that banks and financial institutions granted funds worth between SR 15 billion and SR 20 billion in 2012 and large sums of money were channelled by the Real Estate Development Fund for the direct purchase of houses.

In the same context, experts say that 2013 will witness stability in the rental prices of villas, as landlords will fear the competition generated from the new housing projects.

ABU DHABI SETS ASIDE $90BN FOR PROJECT

Commenting on the issue, Yasser Abu Atiq, CEO of Dar Al Tamleek said: “We are very optimistic about this year. We think that mortgage finance will stimulate the sector, especially in the aftermath of the regulations issued last July and the draft of Saudi Arabian Monetary Agency (SAMA) that was issued in November.”

Abu Dhabi has announced that it will spend $90bn over the next five years on social infrastructure.

“The real estate market is on the threshold of a new era. It will become a really organised industry, excluding all other unproductive

In a statement issued by the Executive Council, the emirate said that a total of 12,500 housing units are being built via nine major projects. In addition, 34 schools and 10 kindergartens will also be built.

Other infrastructure work currently being carried out in Abu Dhabi includes the Strategic Tunnel project and the 328-km MafraqGhuweifat road connection.

The Executive Council said that “the government has launched several initiatives aimed to improve the investment environment by offering incentives and facilities to investors.

“To that end, the emirate has developed a number of specialized economic zones covering different industrial and trade fields.

These offer various exemptions to investors, as well as advanced infrastructure in terms of transport and communication networks, making the emirate a springboard to other countries in the region.”

Arabian Business, 14/01/2014

parties,” he added, pointing out that the regulations to be issued will protect citizens as well as financing institutions. “This will balance issues and rights of all parties concerned, as financing institutions used to impose strict terms to protect their rights, while some individuals took advantage of certain gaps. But with the existence of regulations, the sector will be further organized,” he said.

The Banque Saudi Fransi study said the new mortgage regulations would serve to stimulate the growth of the real estate market in the medium term. However, the bigger challenge lies in enhancing the ability of citizens to buy houses, due to the core problem of gap between real estate prices and ordinary citizens’ incomes.

The high cost of land is currently inhibiting the ability of low and middle-income earners to build or purchase houses.

Another study recently conducted by Al Sharqiah Chamber said the new mortgage regulation would encourage an increase in the number of instalments and mortgage financing companies, which is expected to reach more than 50 companies in the first year of implementing this law. “This will result in widening the base of opportunities for funding and would lead to an increase in the supply of residential housing, accompanied by a decline in interest rates,” the study said.

The study forecast a number of positive effects of the adoption of the mortgage regulation. First and foremost, it will increase the proportion of credit allocated by commercial banks to finance the sector.

Arab News, 08/01/2013

QATAR DRAFTS NEW COMPANY LAW Qatar has completed a new draft company law, the Minister of Business and Trade Sheikh Jassim bin Abdulaziz bin Jassim bin Hamad al-Thani has said.

starting and doing business. He explained that it will contribute to raising the ranking of Qatar and will attract foreign investment.

In a press statement, the minister said the draft law will meet the requirements of the political, economic and social changes in accordance with Qatar National Vision 2030 and will keep pace with modern developments in businesses.

It aims to simplify and facilitate the procedures of establishing commercial companies.

The Minister said that in completing the new draft law the Ministry of Business and Trade had taken into consideration the international standards on which countries are classified in terms of ease of

He pointed out that the draft law was posted on the ministry’s website to enable all parties to contribute their opinions.

The draft law consists of 340 articles in 13 sections.

Gulf Times, 15/01/2013

BUSINESS & PROJECT NEWS

REVIVAL OF IRAQ CONSTRUCTION SECTOR Iraq is continuing with efforts to stimulate the local building sector to aid in the country’s reconstruction process.

Kerbala Cement Manufacturing, a subsidiary of France’s Lafarge, is rehabilitating a state-owned plant near the city of Kerbala. The company is undertaking the work under a concession agreement with the government of Iraq.

The IFC, a member of the World Bank Group, is providing a $70 million loan to assist the renovation project.

The financing is expected to help bolster Iraq's construction sector, a key source of jobs, and support rebuilding efforts in the country.

“This financing will help address the cement shortage that Iraq is facing and help the country meet supply gaps in its infrastructure,” said Guy Ellena, IFC Director for Manufacturing, Agribusiness and Services in Europe, Central Asia, the Middle East, and North Africa. “It will also play a catalytic role in attracting other foreign investors to Iraq.”

EGYPT SEEKS AVERAGE GROWTH RATE OF 7% Egyptian Prime Minister Hesham Qandil said the government is seeking to reach an average growth rate of 7% by 2022.

The Prime Minister made the statement in a speech to the opening session of the annual conference of the US Chamber of Commerce in the Middle East and North Africa.

Egypt’s short-term plan between 2012 and 2014, according to Qandil, included an ambitious economic programme that aims to strike a balance between social justice and economic growth and that envisages a growth rate to rise from 2.2% in 2011/2012 to 3.5% in 2012/201 and 4.5% in 2013/2014.

The short-term plan aims to achieve sustainable development and enable growth rates to reach 7% by 2022, in addition to creating at least 800,000 jobs by the end of the current fiscal year.

One of the economic priorities of the Cairo government is to improve the investment climate and to develop relevant laws.

Qandil said that the government pays special attention to the development of the financial sector, citing a comprehensive plan that includes unspecified new tools and mechanisms. The plan also envisions new projects in the Suez Canal area, New Valley and Upper Egypt.

The government is also reportedly setting up an investment map that includes all of Egypt.

Al-Masry Al-Youm, 13/01/2013

Kerbala Cement is a joint venture between Lafarge and MerchantBridge, a London-based private equity group. The financing of the project is being supplemented by a $20 million loan from Proparco, a development financial institution funded by the French Development Agency and private shareholders. London home prices have risen 24% from a May 2009 low as a resilient job market fuelled demand and foreign investors bought property to protect their wealth from volatile markets elsewhere in the world. Home-rental rates in the UK capital have risen more than 6% in the past year to a record, even as employment in the financial-services industry fell to a 20-year low, according to HomeLet, the UK’s largest tenant reference checking and rentals-insurance company.

The agencies are working with Kerbala Cement to implement an environmental and social strategy, to help align the company with international standards for sustainability. This initiative is part of IFC’s efforts to support the development of Iraq’s private sector.

IFC, 27/12/2012

RETAIL GIANT PLANS NEW DOHA AIRPORT OUTLETS UK retail giant WHSmith is set to open eight shops at the New Doha International Airport (NDIA), officials have said.

UK LOOKS TO THE UAE FOR GREEN ENERGY The United Kingdom’s massive push into renewable energy will draw heavily on investments from the UAE and other Gulf countries, said the country’s energy minister in Abu Dhabi.

Britain is looking to the UAE to help steer its £200 billion (Dh1.18 trillion) push into renewable energy.

The country is committed to reducing greenhouse gas emissions by 34% by 2020, and the transformation of the energy sector will cost about £200bn over the next decade, according to Greg Barker, the minister of state for energy and climate change.

The requisite green energy capacity will be built by the private sector, with Parliament set to pass an energy bill aimed at encouraging investment.

“The latest energy law [is] going to substantially expand the number of investments coming to Britain, of which we expect a very substantial number to be from the Gulf,” said Mr Barker on the eve of the World Future Energy Summit.

The bulk of the UK’s renewable energy will be drawn from wind farms and Abu Dhabi’s Masdar owns a stake in the London Array, the world’s largest offshore wind farm.

“The London Array is just the beginning,” said the minister. “I’m really delighted at the way in which the investment relationship between a number of actors from Abu Dhabi and the UK is developing.”

According to the Moodie Report, the British retailer will take a total of 8,000 sq ft of space at the new airport.

After a 17-month construction period, the array’s wind turbines are starting to feed electricity into the grid, and Masdar’s appetite for investing abroad remains undiminished.

Akbar Al Baker, Qatar Airways CEO, told the website: “We are thrilled to have yet another high-calibre international retailer on board which shares our vision to be one of the world’s greatest airports.”

“The UAE is investing in the future of energy by working with investment partners and governments, like the UK, to build sophisticated, large-scale renewable energy projects,” Sultan Al Jaber, Masdar’s chief executive, said.

WHSmith chief executive Kate Swann added: “The opening of eight new WHSmith stores in this exclusive airport development further demonstrates our commitment to be the leading travel retailer across the Middle East.”

Last year, Qatar's Al Meera Holding said it had entered into a franchise agreement with WHSmith Travel Ltd to operate book shops in the Gulf state.

Under the agreement, Al Meera Holding has been granted the exclusive rights to establish and operate bookstores under the WHSmith brand in Qatar.

With more than 1,100 stores worldwide, including locations in UAE, Oman, Kuwait and stores to come in Saudi Arabia and Jordan, WHSmith is present at major international airports.

Arabian Business, 04/01/2013

The UK’s new energy bill will guarantee investors a minimum return from their power projects by setting generous electricity prices paid for clean energy.

The UAE’s investments in the UK’s energy sector are not restricted to renewables, and Abu Dhabi National Energy Company, known as Taqa, recently added to its oil production base in the British North Sea by striking a $1bn deal with BP. Abu Dhabi’s engagement in the UK’s energy sector comes after decades of activity by UK firms in the UAE’s oil and gas fields. Shell and BP are both pumping crude from the Abu Dhabi onshore reservoirs, and are keen to continue after the current concession is renewed next year.

The National, 15/01/2013

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ARAB TELECOMS MARKET

TELECOMS MARKETS IN THE MENA

Demand for telecommunications technologies throughout the Middle East and North Africa will continue to develop but at different rates depending on local market factors, a new survey shows.

In its annual sector analysis of the telecommunications market in the MENA region, business consultancy Frost & Sullivan says that the wealthier GCC states are continuing to invest in the latest communications technologies, LTE/4G, Fibreto-the-home (FttH) as well as high-speed IP/ VPN access for enterprises.

At the same time, consumers are using more data services and new devices which are also areas of vulnerability if you fall behind. Along with this data growth, operators have to invest in their networks again, and whether upgrading to LTE/4G or building out 3G, the potential levels of returns are just not the same as the first 3G or GPRS spends.

While in the developed world network investment will be mostly focussed on LTE/4G as older networks go onto the back-burner, in MENA the opportunity to expand and improve 3G networks remains high. Market share can still be gained by well-targeted coverage improvements or expansion.

In the Levant region, Jordan and Iraq are steadily pushing ahead into 3G services, a situation which also characterises the North African states of Tunisia and Algeria with Morocco being slightly more advanced. North Africa’s most significant market, Egypt, remained adrift after continuing turmoil throughout 2012 as do Syria and Libya, the survey says.

Among telecommunications equipment providers, Huawei and Ericsson caught the LTE/4G wave as operators in the GCC upgraded. While NSN and ZTE lost a little ground, they are expected to return in force especially outside the Gulf for 2013.

Making sure that the latest apps and video services are also delivered effectively on your network is important; word-of-device is now faster than word-of-mouth. Social media means that today messages about a company and its products can reach a lot more people, a lot quicker.

Across the region, the volumes of population moving into work age each year continue to rise. Governments are responding with initiatives such as Arabisation and education programmes, but there remains much that needs to be done to enhance skillsets in many areas not just in specific technical fields.

Within the industry, the focus of telecoms operators has been on three areas: customer retention, new networks and Average Revenue per User (ARPU) or value-share growth. With high penetration across the region, the need to focus on retention and customer experience should be obvious, the consultancy says.

The network shift is more problematic. In the move to new 3G or 4G networks, some customers will take the opportunity to switch plans or operators. To respond, operators will need to both ensure an excellent roll-out experience for new coverage, as well as continue to offer the best value to their own existing user base.

Communications players also benefited from the growth in demand for cloud services and security issues that dominated the IT world.

Connections between data-centres, cloud services and multiple end-user devices became a high priority for ICT leaders in 2012. With more data and apps being communicated to a growing number and variety of devices, the infrastructure of enterprises needs to be kept up to speed.

The roll-out of LTE/4G that happened in many markets should enable and improve access to these services.

Bring Your Own Device (BYOD) became a reality during 2012, and CIOs/IT managers needed to adjust strategy and services quickly. But the proliferation of devices also meant that the appropriate levels of security needed to be in place, which wasn’t always the case.

Most cybercrimes begin with social engineering and with more personal devices connecting to corporate systems, the threat of unauthorised access has grown significantly. Communications providers should do more to ensure that corporate customers are also improving security from the end-device right through to back-end servers and data-centres.

The availability of high-speed networks will deliver both opportunities for more revenue as well as improving in-company communication. Within companies, networks have been relatively high in performance for some time, but now video-calling with other sites, clients and suppliers becomes much more accessible.

By the end of 2013, consumer use of video is likely to grow hugely both as a tool for communication and personal entertainment.

In many of the wealthier MENA countries and particularly in the cities, bandwidth from fixed FttH and mobile LTE/4G networks will enable both interactive video services and streamed content to be delivered at acceptable quality levels.

When everyone has a camera and a decent screen to watch it on, video’s superior abilities over simple, static images will be compelling for communicating, educating and advertising. As well as video-calling or Skype, there will be an Instagram for video clips. It is most likely that one of the existing picture-sharing apps will dominate this space, but there is still the opportunity for a new player, even a MENA upstart or operator, to drive the market.

ARAB TELECOMS MARKET

As Over the Top (OTT) services become increasingly more significant, operators may begin re-establishing some control over both usage and suppliers. By bringing in and promoting services within a portal or virtual service operation setup, operators can both protect service levels of the OTT offering, while at the same time working with suppliers to control other aspects such as quality of delivery and even different charging rates.

One way to reduce pressures on CAPEX is infrastructure sharing and over 2013 governments will get more involved in driving this rather than allowing masts and poles to go up all over the country, especially as green issues rise across the region.

The platform for delivery of communications services is also shifting fast. Windows8 will drive a wave of upgrading laptops as well as some smartphones and tablets. The new generation of device users will be using other devices than laptops or desktops to access apps and services. We are at the start of another major turning point for devices that

could create a similar wave of change to that witnessed in the PC revolution in the late 80s/early 90s.

The wide proliferation of platforms that we see today by devices (tablets, minitablets, smartphones and e-readers) and for OS (BB10, iOS, Android, Windows8 etc) is usually a lead indicator of this kind of change. However, with today’s industry spread globally and right across consumer and enterprise segments, it is unlikely that a single platform will dominate in quite the same way that the PC-Microsoft OS combo did in the past.

The world of apps is now accessible to people across the region. Smart operators will be embracing and extending the best of these OTT services to provide a quality, overall experience and to start leading their customer base to grow usage. Increasingly, services delivered by communications providers will be IP based, especially now that core text (WhatsApp etc) and voice (Skype, Viber etc) services are in play.

MENA consumers are becoming aware of the new services, pricing differentials and latest promotions. Brand loyalty and customer base will be eroded if transparency and clear communications are not used effectively. Even if all consumers are not highly educated, the enabling social media will ensure that they will quickly learn about what’s good and what’s bad.

Quality barriers in the region are rising and companies will only win if they can clear all the hurdles.

Broadband is now widely seen as essential infrastructure which means that regulatory requirements on operators for high-speed service roll-out are likely to grow.

For core services, data will continue its rapid growth as smartphones penetrate the MENA further.

The above are some of the highlights of the report, Telecommunications Market in the Middle East and North Africa: Yearly Sector Analysis, by Frost & Sullivan, January 2013.

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ONLINE RETAIL

ONLINE SHOPPING BOOM The transformation in the way people shop is having an increasingly significant impact on the retail industry worldwide and UK retailers are increasingly looking to the Arab markets to win new customers.

The move towards more online shopping is having a noticeable effect in the UK where one recent report predicts that up to 5,000 high street stores could close by March 2013.

The information is derived from BDO’s High Street Sales Tracker which analyses like-forlike spending at non-grocery retailers with annual sales of between £5m and £500m.

Fashion, DIY, pharmacy, electrical, music and stationery sectors are some of the sectors hardest hit by the upward trend in online sales, according to the Centre for Retail Research.

Commenting on the findings, Don Williams, National Head of Retail and Wholesale at BDO LLP, said: “Mobile shopping channels are also becoming more sophisticated and clothes shoppers are now more comfortable with trading an in store experience for a fast, convenient and hassle-free online shopping experience. When backed by a strong brand and outstanding customer service this is becoming an increasingly important addition to retailers revenue figures and we expect this trend to continue, especially with the arrival of 4G.”

Popular brand name retailers are likely to shut their more struggling stores to focus on attracting more online customers – who now account for about 20% of total spending.

This follows a Christmas shopping period which witnessed a rise in online retail sales by 17.8% in December - the fastest rate for a year - as UK shoppers equipped with smartphones and tablets took advantage of more sophisticated websites and increasingly popular ‘click and collect’ services.

Helen Dickinson, Director General of the British Retail Consortium, said: “Online was the stand-out performer. Consumers are increasingly taking advantage of the convenience that online shopping offers them at every stage of the customer journey, from comparing prices to reserving and collecting in-store.”

The BRC and KPMG said like-for-like sales inched up by just 0.3% in December, compared with the same month the previous year. Store sales actually fell once healthier online sales are taken out - the first Christmas since 2008 that this has happened.

Leading British supermarket chain Morrisons announced that it is considering the launch of an online grocery store, after it reported poor sales over the festive season as shoppers opted for online orders and home delivery on offer from rival stores.

According to research carried out by BDO LLP, retailers in the UK were buoyed by a 30.9% year-on-year growth in non-store sales with shoppers becoming ever more comfortable with online purchasing – especially from big name brands - as well as making use of growing Wi-Fi and 4G coverage to pick up bargains while on the move.

Delivery firms are benefitting from this rise of online retailing as shoppers become more comfortable with buying over the internet, the Financial Times reported.

In November 2012, DPD, a British parcel delivery subsidiary of France’s La Poste, the second largest postal group in Europe by revenues, announced it was spending £175m over the next five years to build its fourth delivery hub in the UK, add 10 new branch depots, and upgrade its IT and GPS systems.

The expansion follows a similar move by Royal Mail Group, which committed to spend £75m over four years on its UK express parcels business.

Delivery firms are expanding to follow the shift from traditional business-to-business parcel delivery towards consumer-focused groups such as Asos, the fast-growing online clothing retailer, and Amazon.

Online shopping is becoming more popular in the Arab world as well and its potential for expansion is considerable given the growth in Internet users.

The number of Internet users in the Middle East and North Africa is sky rocketing as figures showed that at least 70 million log onto the web daily, according to a study published 4 December 2012. The study, conducted by Internet research firm, Ipsos, showed that the number of social media users is nearly 72% of the population.

Residents of the region spend more time on the Internet than sleeping, the report showed. “MENA residents spend nine hours a day with visual and electronic media (using the Internet, watching TV, listening to the radio, etc.), while they sleep, on average, 6.9 hours a day,” said Mohammed Minawi, general manager of Ipsos Jordan. “The study showed that at least 81% of smartphone owners use their devices in bed and 50% in the bathroom,” he added.

British retailers are paying closer attention to developments in the MENA region where opportunities are opening up to enable smaller retail firms to enter the market as a result of the growth in online shopping.

This means that international expansion is no longer the exclusive preserve of the retail giants.

E-commerce has created a borderless retail landscape where it has never been easier for smaller retailers to expand overseas swiftly without the associated overheads of opening physical stores, according to research from Barclays Bank. Of those retailers already generating sales abroad, 35% are said to be from ‘bricks’ and 65% from ‘clicks’, Barclays found in research published in September 2012.

When asked by Barclays researchers how they plan to enter their chosen markets in future, companies gave online as their top choice with 62% of retailers using a transactional website as the preferred method of entry. Only 18% of retailers stated that they had any plans to open physical stores.

For further information about this topic see the following: BDO LLP http://www.bdo. uk.com/press/bdo-hsst-high-street-salessteady-not-spectacular-december Centre for Retail Research http://www.retailresearch.org/ onlineretailing.php

TUNISIA REAL ESTATE

TUNISIA REAL ESTATE REVIVAL As Tunisia is still working to put its economy on a firm footing, the country has benefitted from a revival in real estate investor interest, with figures indicating that foreign direct investment (FDI) for the sector edged close to pre-revolution levels in the first 10 months of 2012.

Several large-scale tourism projects, together with a huge government social housing initiative, are spurring a sizable influx of capital into the country.

Foreign investment in tourism and real estate accounted for 4.5% of all FDI between January and October 2012, nudging nearer to its 2010 figure of 4.8%, according to data from the Foreign Investments Promotion Agency in Tunisia (FIPA).

In total, TND75m (€36.5m) was invested from abroad in Tunisia’s real estate and tourism sectors during the first 10 months of 2012.

This is compared to the TND82.3m (€40m) seen in the first 10 months of 2010 and is a year-on-year (y-o-y) increase of 588% from the same period of 2011.

The primary contributor to the sector was Qatar real estate investment company Qatari Diar, which, in October 2012, channelled TND70m (€34m) into an $80m (€60.8m) luxury hotel project in Tozeur.

In a separate testament to investor confidence in the sector’s long-term potential, the Emirates’ Bukhatir Group has reiterated its commitment to roll out a major tourism and real estate development once it receives the go-ahead from Tunisia’s government. Valued at $5bn (€3.8bn), the mixed-use Tunis Sport City project, which has been in the pipeline for several years, will combine sports facilities with luxury homes.

While real estate prices rose on average by 0.82% between January and November 2012, the market also showed significant regional variations. Values have fallen in some coastal resorts where foreign buyers and tourists have been slower to return in large numbers, preventing the real estate market from making a full recovery. Property prices in both Djerba and Merzouga fell 7% in summer and were also down 2% in Nabeul.

However, property prices in popular residential areas are on the increase, particularly in newly built neighbourhoods near Tunis. Prices in the prime location of Soukr shot up 14% during the first six months of the year, while in Sidi Bousaid, the

Monastir, Tunisia

most expensive part of Tunis, they reached TND2600 (€1265) per square metre. In other key locations, such as Maâmoura, property values rose even higher, up 22%, and they also increased 12% in El Kantaoui.

Nadhir Ben Ammar, the general manager of Edifia Promotion Immobilière, pointed out in a recent interview with OBG that prices for land in Tunisia had also risen sharply.

“Usually, prices used to go up 4% to 5% a year, which was a normal rate of increase for a stable market like Tunisia,” he said. “But lately we’re seeing increases that are 12% to 13% a year.”

Part of the reason behind rising price of new builds has been widely linked to speculators selling cement above a maximum price laid down by government of TND6.5 (€3.16) per bag. The practice prompted the Ministry of Commerce in April to intervene, calling on industry players to abide by the regulations.

Tunisia’s daily production of cement stands at 30,000 tonnes per day, which exceeds national demand.

Aware that sharp price increases are making it difficult for Tunisia’s lowerincome households to access property, the government announced a TND1bn (€486.9m) plan in April 2012 to build 30,000 social housing units throughout the country in 2013.

The government has said families with a monthly income of around three times the guaranteed minimum wage will be eligible for the programme.

In September, the Ministry of Equipment launched an international call for tenders to finance the first phase of the plan, which will see the construction of 11,800 units in Tunis, Ariana, Ben Arous, and Manouba.

A further 3,800 units are to be built in the governorates of Nabeul, Zaghouan, Bizerte, Sousse, Monastir, and Mahdia, and 2,400 homes are also earmarked for Beja, Jendouba, Le Kef, Siliana, Kairouan, Kasserine and Sidi Bouzid. An additional 2,300 units will be constructed in the governorates of Gabes, Medenine, Tataouine, Gafsa, Tozeur and Kebili.

OBG, 11/01/2013

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LEGAL

ACTION ON PATENT AND TRADEMARK LAWS IN 2012

Djibouti sees new patents and industrial designs regulations The regulations implementing Industrial Property Rights Law no. 50/AN/09/6ème L (issued on April 27, 2009) came into force in Djibouti on November 25, 2011 by virtue of Official Decree no. 2011-079.

Oman - Formal Examination Begins The Omani Patent Office started formal examination of all pending patent applications. During the beginning of 2012, all applicants were required to bring their files in line with the new formalities which were introduced in February 2010. This procedure comes as a preliminary step for substantive examination which is expected to begin soon.

Morocco - Changes in Regulations The official fees for patent related matters were revised in Morocco, effective October 1, 2012. Fees have substantially increased in comparison with their current level. The new schedule of fees is applicable to all new applications as well as applications that have still not matured to registration.

It is also worth noting that maintenance fees in the country will be due annually on the anniversary of the filing date of the patent. There is a six-month grace period for late payment with a surcharge. Previously, annuities were paid every five years. The 1st through the 5th patent annuities were payable at the time of filing. The remaining annuities were payable in groups of 5 years at the time of payment of the 6th, 11th and 16th annuities.

Qatar- Patent Applications Filed

Tunisia Accedes to the Hague Agreement

The Qatari Patent Office started accepting both local applications and national phase PCT applications for the first time in the country.

Tunisia acceded to the Hague Agreement Concerning the International Registration of Industrial Designs on June 13, 2012.

Qatar also joined PCT on August 3, 2011.

The instrument of accession contains the declaration that, pursuant to Article 64(5) of the said Treaty, the State of Qatar does not consider itself bound by Article 59 of the said Treaty. According to Article 59, any dispute between two or more countries of the Treaty concerning the interpretation or application of the Treaty or its regulations, not settled by negotiation, may, by any one of the countries concerned, be brought before the International Court of Justice unless the countries concerned agree on some other method of settlement. Therefore, with regard to any dispute between Qatar and any other country of the Treaty, the provisions of Article 59 shall not apply.

Saudi Arabia Automating the Patent Filing System The Patent Office in Saudi Arabia launched a new system to file patent applications electronically. On-line applications became acceptable as of March 28, 2012. This new system allows applicants to fill out an electronic application form, check and review it for accuracy and precision, and then submit it directly over the internet to the Patent Office. The system then generates a filing date and a filing number. At a later stage, the supporting documents would be submitted to the Patent Office in order to complete the registration requirements.

The Hague Agreement currently has a total of 60 contracting member states. Member states from the Arab region include: Egypt, Morocco, Oman, Syria and Tunisia.

Yemen First Letters Patent Granted The first two letters patent were issued by the Patent Office in Yemen on July 11, 2012. These first patents carry the numbers 1 and 2.

In principle, the maintenance fee will be due annually on the anniversary of the filing date. However, the Patent Office is still working on its new setup in preparation for implementing the new regulations and, to date, has not yet started accepting annuity payments. Patent applications in Yemen will be accepted as long as they have already been published by other Patent Offices.

TRADEMARK DEVELOPMENTS 2012 Bahrain Consumer Protection A Consumer Protection Law (Law No. 35 of 2012) was issued in Bahrain and entered into force on August 3, 2012.

The Consumers Protection Law includes provisions on the rights of consumers. Its main objective is to protect the consumer’s health and ensure that quality control is efficient in the country. It also aims at combating unfair business practices such as the availability of counterfeit products in the market and it imposes sanctions on those who are in breach of its provisions.

LEGAL

Iraq - Request for Comments on the Draft Trademark Law During 2012, the Iraqi authorities sought views of IP experts and lawmakers on the newly drafted Trademarks and Geographical Indications Law in the country. The proposed draft was published among IP professionals and was discussed so that a general opinion including all the relevant details may be formed.

Libya - Growing Importance of Trademark Protection For the first time since 1977, the Libyan Trademark Office started issuing trademark certificates of registration. This development is an explicit recognition by the authorities in Libya of the growing importance of trademark protection. This means that the registration certificates of all pending trademark applications (that have been accepted and published) are expected to be issued in the future.

Morocco - Changes in Regulations The official fees for trademark related matters were revised in Morocco, effective October 1, 2012. Fees have substantially increased in comparison with their current level. The new schedule of fees is applicable to all new applications as well as applications that have still not matured to registration.

Also the fees for the filing and the renewal of trademark applications will be payable separately for each and every class, and not up to the first 3 classes, as was the practice before.

Oman Tenth Edition Adopted The Omani Trademark Office adopted the 10th edition of the Nice International Classification for Goods and Services which entered into force on January 1, 2012. The goods or services of all valid registrations must be reclassified (if required) at the time of renewal.

Arabic Domain Names Soon Arabic domain names are expected to be launched soon in Oman. No specific date has been set yet and no official notification has been issued in this regard.

Qatar New Advertising Law A new Advertising Law (Law no. 1 of 2012) was issued on March 19, 2012. The Law will only be effective once the implementing regulations are issued.

The salient features of the new law are as follows: l Arabic shall be the main language used

on billboards. Other languages may be used along with Arabic according to rules determined by the relevant municipalities. l The advertisement shall not violate public morals and shall not cause any insult to any religion. l The trademarks and trade names mentioned in the advertisement shall not breach the Law or any other official statement. l The advertisement shall not create any confusion with the traffic sign boards. l The advertisement shall not be installed in a way that blocks visibility and shall not constitute any obstacle to the vehicle traffic and pedestrian movement.

It shall not be installed as well in places of worship, historic or archeological facilities, trees and traffic lights. l The advertisement shall not be installed in a private property without the written approval of the property owner. It shall not as well harm any public facilities. l A renewable license shall be given to the owner of the advertisement who should remove it once the validity period is over.

The new Law does not apply to newspaper advertisements. Penalties will be imposed on everyone who violates the provisions of the new Law.

Sudan Simplified Formalities The Trademark Office dropped the legalization requirement for powers of attorney submitted in support of trademark applications. The only authentication requirement will be a valid attestation by a Notary Public.

Also, applicants will be required to submit a statutory declaration, simply signed, within 2 months from the end of the opposition period. This declaration is used to affirm that the nationality of the applicant has not changed since the date of filing. It is thus similar to an affidavit.

UAE Recordal in Abu Dhabi Soon Recordal of trademarks is expected to be implemented in the Abu Dhabi Emirate very soon. The filing requirements for the recordal and the recordal period have not been announced yet. Customs recordal in UAE is now available in three Emirates only out of seven: Dubai, Sharjah and Ras Al Khaimah.

The recordal in the three Emirates is valid for the trademark’s protection term, renewable for like periods.

SABA & Co IP http://www.sabaip.com/NewsArtDetails. aspx?ID=954

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Choosing your corporate venue is always an important decision because it sets the tone for the entire event Choosing your corporate venue is always an important decision because it sets the tone for the entire event

& Conference & ConferenceBooking Booking Contemporary yet stylish, set in the heart of Mayfair, the Arab British Contemporary yet stylish, set in the heart of Mayfair, the Arab British Chamber of Commerce business meeting rooms combine a central London Chamber of Commerce business meeting rooms combine a central London location with with complete dedication to to service and variety ofof location complete dedication service anddiscretion discretionto to suit suit a a variety corporate meetings and events. corporate meetings and events.

Fully Fully equipped venues typically hold: AGM’s, equipped venues typically hold: AGM’s,Board BoardMeetings, Meetings, Conferences, Conferences, Presentations, Trade Shows, Exhibitions, Product Presentations, Trade Shows, Exhibitions,Workshops, Workshops, Lectures, Lectures, Product Launches, Professional DevelopmentSeminars.

Seminars. Each Each venue venue can Launches, Professional Development can be be customized to meet the individual requirements of your event. customized to meet the individual requirements of your event.

For venue enquires please contact OmarBdour Bdouron on omar@abcc.org.uk omar@abcc.org.uk For venue hire hire enquires please contact Omar +44 (0) 20 7659 4860, or visit our website for more information and the +44 (0) 20 7659 4860, or visit our website for more information and the range range of available venues. of available venues.

www.abcc.org.uk/venuehire

www.abcc.org.uk/venuehire

 AV and PA system

 AV and PA system

 Plasma screen

 Plasma screen

Stationery Stationery Wi-Fi Wi-Fi Administration support Administration support Tea & coffee Tea & coffee Fruit juice & biscuits Fruit juice & biscuits  Still and sparkling water

 Still and sparkling water

 Pre-ordered catering

 Pre-ordered catering

CHAMBER NEWS

Seminar: Cross-Cultural Considerations for Life and Business with the Arab World

You are cordially invited to attend a seminar on Wednesday 27 February 2013.

This is a seminar mainly for Non-Arabs who seek to do business with the Arab World. The seminar ends with a networking lunch.

This seminar, given by ABCC member Jeremy Williams OBE, MD of Handshaikh Ltd, a former Army Officer and Defence Attaché in the Gulf, will address most of the cross-cultural pitfalls and their solutions.

The speaker, with some 40 years exposure to the Arab World, has witnessed countless western faux pas in the Middle East.

A copy of his best-selling book, Don’t They Know It’s Friday? (Motivate Publishing, Dubai) will be provided for each delegate, signed if requested, and this is included in the seminar fee. Topics to be covered will include the following and many more issues: l How should I behave and what should I

wear?

l How can I understand Gulf protocol and

l How do I address and write to an Arab

business leader?

wear in the Gulf?

what’s important to an Arab audience?

Location:

meeting?

The Arab British Chamber of Commerce

Safety issues?

country?

work in or with the Gulf? – what are the main attributes needed?

personal etiquette? l What do ‘The GCC’, ‘The Magreb’ and ‘The Levant’ mean?

l I’m a business woman – what should I l I’m giving a presentation in the Gulf;

l How should I prepare for a business

43, Upper Grosvenor Street, London, W1K 2NJ When: Wednesday 27 February 2013 – 9.00am to 2.00pm Registration: 9.00am - 9.30am Networking Lunch: 1.00 pm Cost: ABCC Member £200 + VAT Non-ABCC Member £300 + VAT

l What about Race, Gender, Same-sex and l Can I serve wine if Arabs are present? l How do I negotiate? l How do I chase a debtor in an Arab l How should I select the right people for

Please visit the website below to register for this event online alternatively email our membership team on steven@abcc.org.uk http://www.abcc.org.uk/Cross-culturalTraining-2013

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LIBYA TRADE DAY

LIBYA TRADE DAY

The New Economic Landscape

The potential business opportunities for British companies seeking to trade with and invest in Libya are abundant as the country moves rapidly forward with its reconstruction programmes and becoming more integrated within the global economy.

To assist British businesses with accessing the Libyan market, the Arab British Chamber of Commerce in association with the Embassy of Libya, UK Trade & Investment, and Federation of Libyan Chambers of Commerce, is organizing the Libya Trade Day one day conference.

The event will bring together key business and industry executives, policy makers, diplomats, government ministers and other stakeholders. We will also welcome the Libyan Business Delegation to the United Kingdom who’s purpose of visit is cooperation with their British counterparts.

www.abcc.org.uk/libya-trade-day

UK Trade & Investment 1 Victoria Street London, SW1H 0ET United Kingdom

10 APRIL 2013 9am – 2pm The one day conference will focus on 4 major sectors of the Libyan economy:  Session 1 Transport & Infrastructure Construction & Utilities

 Session 2

This is a high demand event and we strongly encourage you to book your place early. The online registration is now open and will last until all spaces have been filled. For more information on sponsorship opportunities please contact Cliff on cliff.lawrence@abcc.org.uk or +44 (0) 20 7659 4881

In association with:

Conference Venue:

Finance & IT Energy & Security

 Lunch  One-to-one meetings

Federation of Libyan Chambers

of Commerce, Industry & Agriculture Embassy of Libya

TENDERS

TENDERS

EGYPT REQUEST OF OFFERS FROM CONTACTORS QUALIFIED FOR PUBLIC WORKS TO DREDGE EL-MAHMOUDIYA CANAL IN THE SECTION FROM ITS START (KILO ZERO) TILL (KILO 0.700) INCLUDING THE CONSOLIDATION OF ITS SIDES USING REINFORCED CONCRETE PIPES OF 60CM DIAMETER FOR 400 METERS LENGTH SECTION OF EACH SIDE, INCLUDING THE REMOVAL OF AN OLD BRIDGE AT KILO 0.580. PROJECT IS FUNDED

BY THE WORLD BANK Document Cost: LE750 Bid Bond: LE260,000 Contact General Department for Irrigation Development Projects in West Delta Abdel Salam El Shazli St, Damanhour Tel: 045 - 3349944 Fax: 045 - 3340237 Deadline: 28/01/2013

IRAQ

PROVISION OF ACCESSORIES, CHEMICALS AND STANDARD SOLUTIONS FOR PERKINELMAR ATOMIC APSORPTION SPECTROMETER ANALYST-700 Contact South Oil Company Email: info@soc-basrah.com http://www.soc-basrah.com/pages/ contact%20us%20(e).htm Deadline: 15/02/2013

SPARE PARTS FOR MDR MICROWAVE 7GHZ ALCATEL Contact South Oil Company Email: info@soc-basrah.com http://www.soc-basrah.com/pages/ contact%20us%20(e).htm Deadline: 15/02/2013

LEBANON

BID INVITATION FOR OFFSHORE OIL AND GAS EXPLORATION Bid Invitation from the Ministry of Energy in Lebanon for the extraction of the offshore Oil & Gas discovery The Lebanese government indicated that it will launch the pre-qualification round for companies that are interested in participating in the country’s first tender for offshore oil & gas exploration on February 1st 2013.

It added that it will publish the list of qualified firms by March 21st and start receiving their formal applications on May 2nd.

The cabinet appointed the board of directors of the petroleum sector authority for a 6 year term in November 2012.

The ministry claims that recent seismic surveys on half of Lebanon’s EEZ suggest the presence of up to 25 trillion cubic feet.

“Launching the international tenders can and should be completed in the next three months and we will make a big effort to do this,” Lebanon’s Energy Minister Gibran Basil told Reuters on 5 January.

Contacts Ministry of Energy and Water http://www.energyandwater.gov.lb/pages. asp?Page_ID=8 UK Trade & Investment http://www.ukti.gov.uk/export/howwehelp/ item/427680.html Deadline: 28/02/2013

OMAN

SUPPLY, AND OPERATION OF COMPUTER FOR PUBLIC AND BASIC FUNDAMENTAL EDUCATION SCHOOLS OF MINISTRY OF EDUCATION YEAR (2013/2014) Tender No: 154/2012 Document Cost: OR175 Contact Oman Tender Board Muscat Oman PO Box 787/133 Al Khuwair Tel: (968) 24602652 Tenderom@Omantel.net.om Deadline: 18/02/2013

PROPOSED (14) CLASSROOMS MIXED BASIC EDUCATION SCHOOL (1-12) AND STAFF ACCOMMODATION AT JABAL A,SURAH, WILAYAT IBRI Tender No: 153/2012 Document Cost: OR656 Contact Oman Tender Board Muscat Oman PO Box 787/133 Al Khuwair Tel: (968) 24602652 Tenderom@Omantel.net.om Deadline: 25/02/2013

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TENDERS

WATER DISTRIBUTION NETWORK FOR DUQM PORT Tender No: 152/2012 Document Cost: OR3000 Contact Oman Tender Board Muscat Oman PO Box 787/133 Al Khuwair Tel: (968) 24602652 Tenderom@Omantel.net.om Deadline: 25/02/2013

PROVISION OF TEMPORARY POWER GENERATION SERVICES TO OMAN MAIN INTERCONNECTED SYSTEMS – 2013 Tender No: 151/2012 Document Cost: OR3,000 Contact Oman Tender Board Muscat Oman PO Box 787/133 Al Khuwair Tel: (968) 24602652 Tenderom@Omantel.net.om Deadline: 11/02/2013

CONSTRUCTION OF WADI MISTAL ASPHALT ROAD, STAGE-2 Tender No: 150/2012 Document Cost: OR2,500 Contact Oman Tender Board Muscat Oman PO Box 787/133 Al Khuwair Tel: (968) 24602652 Tenderom@Omantel.net.om Deadline: 18/02/2013

DESIGN, SUPPLY, INSTALLATION, COMMISSIONING AND PROVISIONING OF THE NECESSARY HARDWARE AND SOFTWARE FOR TD LTE,3G & 2G RAN BACKHAULING THROUGH MW (PTP) International Tender No: 149/2012 Document Cost: OR3,000 Contact Oman Tender Board Muscat Oman PO Box 787/133 Al Khuwair Tel: (968) 24602652 Tenderom@Omantel.net.om Deadline: 11/02/2013

DESIGN, SUPPLY, INSTALLATION, COMMISSIONING AND PROVISIONING OF THE NECESSARY HARDWARE AND SOFTWARE FOR TD LTE,3G & 2G RAN BACKHAULING THROUGH MW (PTP) International Tender No: 146/2012 Document Cost: OR3000 Contact Oman Tender Board Muscat Oman PO Box 787/133 Al Khuwair Tel: (968) 24602652 Tenderom@Omantel.net.om Deadline: 11/02/2013

ENGINEERING, PROCUREMENT AND CONSTRUCTION FOR DEVELOPMENT OF SOHAR REFINERY PROJECT Tender No: 146/2012 Document Cost: OR3000 Contact Oman Tender Board Muscat Oman PO Box 787/133 Al Khuwair Tel: (968) 24602652 Tenderom@Omantel.net.om Deadline: 11/02/2013

CONSTRUCTION OF 132/33 kv GRID STATION AT AMRAT, CONSTRUCTION OF 132/33kv GRID STATION AT MABELLA-2 AND INSTALLATION OF REQUIRED 132kv OVERHEAD LINE 132kv CABLES IN MUSCAT GOVERNORATE Tender No: 143/2012 Document Cost: OR3000 Contact Oman Tender Board Muscat Oman PO Box 787/133 Al Khuwair Tel: (968) 24602652 Tenderom@Omantel.net.om Deadline: 11/023/2013

CONSTRUCTION OF NEW 132kv GRID STATION AT RUSAIL & ASSOCIATED 132kv FEEDER WORKS Tender No: 142/2012 Document Cost: OR3000 Contact Oman Tender Board Muscat Oman PO Box 787/133 Al Khuwair Tel: (968) 24602652 Tenderom@Omantel.net.om Deadline: 11/023/2013

QATAR PROVISION OF STORE KEEPERS AND MATERIALS HANDLERS AT HALUL Tender No: GT13100100 Scope of Work The successful contractor shall provide a dedicated crew comprising of three Store Keepers and four Material Handlers for stores on Halul Island for a contract lasting five years. Proposed start date: 01/06/2013.

Document Cost: QR500 Bid Bond: QR150,000 Contact Qatar Petroleum PO Box 3212, Doha, Qatar Tel: (974) 4440 2000; Fax: (974) 4483 1125 www.qp.com.qa Deadline: 10/02/2013

TENDERS

EPIC FOR FIRE & GAS FIELD DEVICES UPGRADE AT NFA

ESTABLISHMENT OF A PUMPING STATION

DUBAI AIRPORTS SEEKS BIDS FOR ADVERTISING CONCESSION

Tender No: GT12114700 Scope of Work

Ministry of Water and Electricity http://www.mowe.gov.sa/English/ electricitysectorhist.aspx?AspxAutoDetectCo okieSupport=1 Deadline: 16/03/2013

Dubai Airports is inviting specialist advertising companies to submit expressions of interest to be awarded the official concession for Concourse D, currently under construction at Dubai International.

Engineering, design, Procurement, Offshore construction/installation, Testing, Pre-commissioning and Commissioning assistance of the work which includes demolition of the existing F&G detectors at NFA , upgrade the complete fire & gas field devices which include the F &G control panels new I/O cards to suit new type of detectors.

Document Cost: QR500 Bid Bond: QR150,000 Contact Qatar Petroleum PO Box 3212, Doha, Qatar Tel: (974) 4440 2000; Fax: (974) 4483 1125 www.qp.com.qa Deadline: 03/02/2013

SAUDI ARABIA EPC OF MARDUMAH 115/13.8kV SUBSTATION 20BD Scope of Work The project includes installation of new 115kV GIS for Mardumah 115/13.8kV Substation 20BD and various installation/facilities for the underground 115kV cable work Contact Royal Commission in Jubail Supply Management Department Tel: (03) 341-4127/4163; Fax: (03) 341-2201 Deadline: 04/03/2013

GENERATION OF TRANSMISSION LINE FROM THE WELLS TO THE RESERVOIR Ministry of Water and Electricity http://www.mowe.gov.sa/English/ electricitysectorhist.aspx?AspxAutoDetectCo okieSupport=1 Deadline: 17/03/2013

SUPPLY AND INSTALLATION OF GENERATORS Ministry of Water and Electricity http://www.mowe.gov.sa/English/ electricitysectorhist.aspx?AspxAutoDetectCo okieSupport=1 Deadline: 10/03/2013

UAE SUPPLY OF CHEMICALS AND CONSUMABLES FOR D, E, G, H, K, L & M POWER STATIONS Tender No: 2051200091 Document Cost: AED1000 Contact Dubai Electricity & Water Authority Office of the Contracts Manager, Zabeel East, PO Box 564, Dubai Tel: (9714) 3244444 Fax: (9714) 3248111 Email: contracts@dewa.gov.ae www.dewa.gov.ae Deadline: 29/01/2013

SUPPLY OF CAST RESIN DISTRIBUTION TRANSFORMERS

Concourse D will become the new home of more than 100 international airlines that fly to and from Dubai International when it opens in 2015. The new facility, which will house all gates and extensive commercial outlets, will be linked Terminal 1 via a new elevated train.

On-airport advertising has become an increasingly important part of Dubai Airports’ non-aeronautical revenue, as the Dubai International’s growing network of destinations and ballooning passenger numbers allow brands to target a wide and cosmopolitan audience.

“As one of the busiest airports in the world, and given the global attention generated by the recent opening of Concourse A - the world’s first purpose built A380 facility Dubai International offers potential bidders a very attractive proposition. With sustained passenger growth and our unique passenger profile, the case for continued growth within advertising is proven,” said Eugene Barry, SVP Commercial at Dubai Airports.

Tender No: 2051200081 Document Cost: AED5000 Contact Dubai Electricity & Water Authority Office of the Contracts Manager, Zabeel East, PO Box 564, Dubai Tel: (9714) 3244444 Fax: (9714) 3248111 Email: contracts@dewa.gov.ae www.dewa.gov.ae Deadline: 30/01/2013

“Concourse D will be a modern and vital addition to Dubai International, ensuring that we not only cater for the growth in traffic but offer a travel experience our customers have come to expect. As a brand, Dubai Airports is globally associated with quality and innovation. We are keen to choose competent partners who will add to that reputation and contribute to our growth.”

SUPPLY OF MINERAL OIL FILLED DISTRIBUTION TRANSFORMERS

Contact Expressions of interest should be submitted (in English) before noon on Friday, 15 February 2013 for the attention of Eugene Barry, SVP Commercial, PO Box 2525, Dubai or by email to commercial@dubaiairports. ae and must include a company profile and contact details.

Tender No: 2051200083 Document Cost: AED1000 Contact Dubai Electricity & Water Authority Office of the Contracts Manager, Zabeel East, PO Box 564, Dubai Tel: (9714) 3244444 Fax: (9714) 3248111 Email: contracts@dewa.gov.ae www.dewa.gov.ae Deadline: 06/02/2013

Based on the prequalification criteria included in the application, Dubai Airports will issue the Request for Proposal (RFP) documents in Q2 2013.

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QATAR

GROWTH IN THE QATAR ECONOMY – AN END OF YEAR REPORT The combination of its enormous hydrocarbon wealth and small population give Qatar the highest GDP per capita in the world. Furthermore, hydrocarbon reserves and revenue per national are significantly higher than elsewhere in the GCC. Rapid economic growth has been rooted in the success of Qatar’s long term oil and gas investment programme, which has greatly raised export revenue.

Growth in the economy has been driven by the development of the country’s enormous reserves of natural gas, which boosted nominal GDP to $173bn in 2011, representing 13% of GDP in the GCC. Qatar has been the world’s largest exporter of liquefied natural gas (LNG) since 2006 and accounted for 31% of global LNG exports in 2011. The country also has sizable reserves of crude oil and condensates. Including manufacturing, which is mainly downstream oil and gas products, the hydrocarbon sector accounted for an average of 62% of nominal GDP in 2007-11.

The population reached an estimated 1.7m in mid-2011, which is 3.7% of the GCC population. In fact, the population reached 1.75m as of October 2012, according to the Qatar Statistics Authority.

Oil and gas production is currently close to planned capacity and, consequently, real growth in the sector is expected to continue at a decelerating rate. Therefore, economic diversification away from raw hydrocarbon production is becoming increasingly important to deliver future growth.

To cater for this, Qatar has already invested in industries that leverage its comparative advantages in hydrocarbon feedstock and energy inputs. These include petrochemicals, fertiliser manufacturing and metal production.

Additionally, Qatar’s services sector companies, including renowned brands such as QNB, Qatar Airways and Qatar Telecom, are competing on the international stage. In the financial sphere, the Qatar Financial Centre (QFC) has been successful

in attracting globally renowned companies.

This has helped expand the financial services sector, particularly in the areas of advisory services, insurance, asset management and wealth management.

The government aims to push diversification and economic development forward by building a knowledge-based economy in Qatar. The aim is to boost the contribution of services to GDP and raise research and development spending to 2.8% of GDP. A key step in achieving this objective has been the establishing of the Qatar Science and Technology Park (QSTP), an initiative of Qatar Foundation (QF). QSTP hosted 48 companies with 800 staff at the end of 2011 and expects this to rise to 50 companies with 1,000 staff in 2012. The companies include global high-tech research leaders, such as Cisco, ConocoPhillips, ExxonMobil, Microsoft, Qatar Petroleum (QP), Shell, Siemens, Total and Williams F1.

Even larger investments have gone into education, developing Qatar University and attracting top-class foreign universities to set up affiliates in Doha in QF’s Education City campus. To date, six US universities have established affiliates in Qatar’s Education City. These include Weill Cornell Medical College, Georgetown, and Northwestern as well as one UK institution, University College London.

QNB Group estimates that public spending on education is currently around 3% of GDP, one of the highest in the GCC. Qatar’s long-term goals were set out in 2008 in the Qatar National Vision 2030 which is based on the principles of sustainable economic, social, environmental and human capital development. It will be implemented through a series of medium-term plans, beginning with the National Development Strategy 2011-16.

Many infrastructure projects outlined within this strategy are already underway.

The investments in developing a first-class infrastructure are being accelerated as the country prepares to host the 2022 FIFA World Cup. The largest project is the metro and rail project, with an estimated cost in excess of $35bn. It will be implemented in two phases, the first will be completed by 2020, ahead of the 2022 World Cup, and the second will be completed by 2029. Other focal areas include roads and motorways, mixed-use developments, a new airport and a new port.

The current strategy aims to increase the proportion of nationals in the private sector workforce to 15% by 2016. Solid progress has already been made with the proportion of Qatari workers in the private sector rising from 6.0% of the total local workforce in 2007 to 8.4% in 2011.

It proposes three strategies to further increase Qatari private sector participation.

Qatar has adopted a strategy to encourage entrepreneurship. The percentage of the local workforce that are either employers or selfemployed increased from 2.5% in 2007 to 3.0% in 2011, indicating greater entrepreneurship.

The government has launched various entrepreneurship initiatives, such as Enterprise Qatar, which was established in 2008 to support the development of smalland medium-sized enterprises (SMEs). Its activities include facilitating access to capital for entrepreneurs and setting up projects to help young entrepreneurs, such as business incubation programmes.

Silatech is another initiative, launched in 2008, to connect young people, in Qatar and across the Arab world, with employment and enterprise activities. It hosts conferences, makes partnerships and helps raise funds for young entrepreneurs.

QATAR END OF YEAR REPORT

Asia has been the primary destination for Qatar’s LNG exports for some time as the region is characterised by a shortage of hydrocarbon resources combined with rapidly rising demand for gas-fired power generation. The largest Asian destinations in 2011 were Japan (15.8m tonnes), India (13.0m) and South Korea (11.1m). These countries were also the major Asian importers in 2007.

LNG from Qatar being delivered to the UK

Another initiative is the Roudha Centre, which will be completed in 2015 and aims to provide support to female entrepreneurs.

The Qatar Development Bank (QDB) has launched the Al Dhameen programme to encourage banks to finance SMEs by providing guarantees of up to $4.1m, to existing companies and startups with a lack of credit history. The programme focuses on industry, medical care, education, tourism and agriculture.

However, a significant proportion of new skilled jobs will be filled by expatriates with global experience and skills. Lack of job opportunities, followed by lack of suitable work, were the most commonly cited reasons for unemployment among Qataris in the 2011 Labour Survey.

The oil and gas sector was the largest component of nominal GDP, accounting for 57.7% in 2011. It includes raw gas and crude oil production. Manufacturing accounts for 9.8% of GDP and is dominated by oil refining, GTLs, petrochemicals, fertilisers, steel and aluminium.

Construction accounts for 3.6% of GDP and has been experiencing rapid growth owing to investments in large-scale development projects.

Services accounted for 28.5% of GDP in 2011.

It includes financial services, government services, wholesale and retail trade, and transport, storage and communications (logistics).

Large-scale projects in the North Field have led to major increases in gas production.

Qatar ranks fifth in the world in terms of total production of raw natural gas. Its share of global production is small relative to its reserves because significant development of reserves only began during the last decade.

As it continues to develop its resources and as production from more mature gas fields in other countries declines, Qatar is likely to rise up the rankings of the world’s largest gas producers.

Total natural gas production in Qatar has risen at 27% per year from 42m tonnes/year (t/y) in 2007 to an estimated 109m t/y in 2011.

In 2011, around 68% of the gas was allocated to LNG production. It is estimated that this proportion will fall slightly going forward as Qatar increases production in 2012 to feed new GTL facilities and to meet domestic demand from 2014.

National oil and gas company Qatar Petroleum (QP) is responsible for all phases of the oil and gas sector and has two gassector subsidiaries, Qatargas and RasGas. QP has developed the LNG sector through partnerships with international oil companies who have the technology and expertise to implement the projects. Such partnerships help in the transfer of knowledge and skills to Qatar. They also entrench strategic synergies, as many of the foreign companies purchase LNG from the projects that they have invested in. For example, Total has an 8% stake in the Qatargas 2 project and also buys some of the LNG produced by these trains, selling it in France and the UK. The most important foreign partner is ExxonMobil, which has major stakes in all but two of Qatar’s LNG projects, or a share of around 20% in overall LNG production capacity. The other partners have a further 12% share, with QP holding the remaining 68% share.

LNG exports are mainly sold through sales and purchase agreements (SPAs). The terms of the SPAs are not public (as they are negotiated bilaterally on a case by case basis) and could vary. In general, the SPAs tend to be long-term agreements that are linked to oil price benchmark indices. The long-term nature of the contracts provide Qatar, and other debt and equity partners in the LNG projects, with a degree of confidence that they will be able to recoup an appropriate financial return from the massive investment made in constructing LNG infrastructure. Recent high oil prices have boosted the revenue received through many of the SPAs. With regard to the spot market, sales of individual LNG shipments have become increasingly important in the sector recently and prices have increased owing to strong demand in Asia.

However, Europe has taken an increasing share of Qatar’s LNG exports, mainly as the UK has signed SPAs for 12.3m t/y a year and imported a total of 22m tonnes in 2011.

The UK has increased imports from Qatar as production from its domestic North Sea reserves has declined. In general, Europe is looking to diversify its sources of gas imports.

Qatar is expanding its involvement in international oil and gas. Qatar Petroleum International (QPI) is a subsidiary of QP that was established in 2006 to make strategic investments across the energy value chain around the globe. It has signed various Memoranda of Understanding (MoU) with national and international oil companies and governments to explore potential energy investment opportunities. Its current holdings and activities include: A joint-venture LNG project in the Yamal Peninsula, in the Russian Arctic, together with Total; A possible stake in Russian gas producer, Novatek; A joint venture (JV) with the Egyptian General Petroleum Corporation to build a $3.6bn refinery project in Greater Cairo; Stakes in LNG regasification terminals, such as South Hook in the UK, Adriatic in Italy and Golden Pass in the US; Petrochemical joint-ventures, including one with Shell in Singapore, the Long Son project in Vietnam and a planned complex in China; A 20% stake in oil exploration in Mauritania, together with Total, with exploration currently underway; MoU with Shell, Maersk and MOL (Hungarian oil and gas major) to jointly develop upstream and downstream international hydrocarbon and petrochemical projects.

Qatar leverages its hydrocarbon resources through the manufacturing sector, which is mainly focused on processing crude oil and raw gas into more sophisticated products such as refined petroleum products, including GTLs, NGLs, petrochemicals and fertilisers.

Abundant hydrocarbon resources also give Qatar a competitive advantage in low-cost energy, which benefits energy-intensive industries, such as aluminium and steel production.

Qatar Economic Insight, QNB, 2012

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OMAN

OMAN OPENS DOOR TO ISLAMIC FINANCE The recently released Islamic Banking Regulatory Framework (IBRF), a 500-page document setting out the regulations that will govern Oman’s financial sector, is set to open the door for both conventional and Islamic banks to market sharia-compliant products.

In a statement accompanying the regulations, the Central Bank of Oman (CBO) described the IBRF as “a detailed and comprehensive document covering all aspects of Islamic banking”.

While conventional lenders will be allowed to conduct Islamic banking operations, the IBRF requires them to open separate branches for the two different products and make clear the sources of their funds and what they are used for. The requirement for individual branches for both conventional and Islamic operations will impose additional costs on banks seeking to operate in both segments, although the strict reporting requirements should limit any concerns regarding crossover of funds from non-accepted sources.

The regulations do not put in place a centralised body to supervise and vet Islamic products, allowing each bank to have its own sharia board to oversee products. Each board is required to have a minimum of three scholars – each with a proven knowledge of legal and financial matters and a minimum of 10 years of experience.

All such scholars will be subject to performance assessments throughout their terms of office and will be limited to serving two consecutive three-year terms. These requirements are tighter than many applied in other Gulf countries, as is the restriction on board members being allowed to work for two competing Islamic financial institutions.

Another area where the regulations are more stringent than those in other markets is tawarruq or commodity murabaha, the buying of an item or product from a bank through a deferred payment arrangement by a person or entity, who then sells the item to

a third party for cash. The IBRF rules out this instrument, saying, “Commodity murabaha or tawarruq, by whatever name called, is not allowed for the licensees in the sultanate as a general rule”. Tawarruq has come under criticism by some scholars for not being fully compliant with Islamic financial requirements.

Oman’s banking sector has long been awaiting the CBO’s regulatory framework, after Sultan Qaboos bin Said Al Said issued a decree in May 2011 authorising the establishment of Islamic banking. Currently, seven conventional lenders – Ahli Bank, Bank Dhofar, Bank Muscat, Bank Sohar, the National Bank of Oman, the National Bank of Abu Dhabi and the Oman Arab Bank – are planning to offer services in the shariacompliant segment, along with the two dedicated Islamic banks in the market, Bank Nizwa and Alizz Islamic Bank. With the IBRF now in place, most will be looking to open their Islamic windows early this year.

Though banks have been lining up to enter the market, Oman’s new sharia-compliant banking sector will face a number of challenges and potential pitfalls in its early stages, according to Khalid Yousaf, the director of Islamic finance advisory services at KPMG in Oman, a financial services firm.

“The biggest challenge will be for the industry to educate their customers and general public about the essential, basic facts about Islamic finance, and the biggest threats may be the shortage of skilled resources as well as the shortage of available products for banks to place their surplus liquidity,” Yousaf told media in December.

Central Bank of Oman

As Oman does not have a history of formal sharia-compliant banking, it has a shallow pool of experienced staff and Islamic scholars well versed in financial matters.

However, banks will be able to tap experts from other Gulf states for rulings on regulatory issues, and many lenders have already begun training courses for staff in anticipation of opening their Islamic banking windows.

The Fitch ratings agency has also suggested it may not be plain sailing for the Islamic banking sector, saying in a note issued in October that it will be some time before stand-alone Islamic banks in Oman will be able to compete effectively with their conventional rivals, which will have their established networks, brand names and operational scales of efficiency to back up their own Islamic windows.

“Newly created Islamic banks in Oman will face competition from incumbents such as Bank Muscat and HSBC Bank Oman, which are setting up Islamic banking arms in preparation for the upcoming rule changes,” Fitch’s note said. “While the established banks will need to keep their existing and Islamic operations separate at the point of contact with the customer, there will be plenty of opportunities for cost savings at the operational level.”

While the report identifies that there is a market for dedicated Islamic banks, with higher government spending and economic growth opening doors in the retail banking segment, the agency said many clients would chose to remain with their existing lenders, even if they shift to sharia-compliant accounts.

Oman already has a competitive banking sector and the opening of the Islamic segment of the market will only serve to make it more so. The success of the two dedicated sharia-compliant banks, and that of the segment as a whole, will likely depend on how well new products are promoted and services are provided.

OBG, 11/01/2013

BUSINESS EVENTS

BUSINESS EVENTS, TRADE FAIRS AND CONFERENCES The Hospitality Show 2013 The UK’s largest foodservice and hospitality show 21-23 January 2013 NEC Birmingham Contact Keterina Albanese Event Co-ordinator Tel: +44 (0) 207 886 3066 Email: keterina.albanese@freshmontgomery.co.uk http://www.hospitalityshow.co.uk Arab Health Exhibition & Congress 28-29 January 2013 Dubai International Convention & Exhibition Centre, Dubai, UAE Contact Inga Stevens Informa Tel: + 971 (0) 4 407 2743 Fax: + 971 (0) 4 336 4021 Email:inga.stevens@informa.com Web: www.informaexhibitions.com Middle East and North Africa Energy 2013 Adapting to new resource realities 28-29 January 2013 Chatham House, London, UK This conference will explore the intersection of energy, security, and international politics in the Middle East and North Africa and ask how changing global and regional dynamics are affecting the energy industry in the region.

Speakers include: HE Mohamed bin Dha’en Al Hamli, Minister of Energy, United Arab Emirates Contact Conference Unit Chatham House Email: conferences@chathamhouse.org Tel: +44 (0)20 7957 5729 www.chathamhouse.org The 2nd Annual Emerging Airports Exhibition & Conference 2013 30-31 January 2013 Al Bustan Rotana Hotel, Airport Road, Dubai, UAE Contact Ram Muthaiah Conference Manager Tel: +9714-398 5838 Fax: +9714-398 5837 E-mail: ram@emergingairports.com www.emergingairports.com Me-Tech: Middle East Technology Forum 18-20 February 2013 Jumeirah Madinat Hotel, Dubai, UAE Contact Euro Petroleum Consultants 44 Oxford Drive, Bermondsey Street, London Tel: + (44)-(20)-73578394

3rd Basrah Food Expo 22-25 February 2013 Basrah, Iraq Contact Elan Expo Tel: +902122731818 Fax: +902122731819 Email: sezgi@elanexpo.net Green Growth: Transforming economies for competitiveness and resilience?

25-26 February 2013 Chatham House, London, UK Contact Chatham House Email: conferences@chathamhouse.org www.chathamhouse.org Signature Museums - Signature Architects: Planning and Running a Successful Signature Museum 26 February 2013 Museum of Islamic Art, Doha, Qatar Contact Lesley Weir Email: l.weir@clicknetherfield.com www.clicknetherfieldevents.com 12th Annual Islamic Finance Summit 26-27 February 2013 The Landmark Hotel, London Contact Stacey Kelly Euromoney Seminars Tel: +44 (0) 20 7779 7222 Email: s_kelly@euromoneyplc.com www.euromoneyseminars.com/islamic2013 International Conference on Sustainable Technologies 5-6 March 2013 Crowne Plaza Dubai, UAE Contact World Academy of Science Engineering & Technology (WASET) Blackpool Victoria Hospital, UK Tel: + (44)-(782)-4879405 www.waset.org Paperworld Middle East 2013 5-7 March 2013 Dubai International Convention & Exhibition Centre, Dubai, UAE Contact Tel: +971 4 389 4500 www.paperworldME.com

Unconventional Gas Key topics covered include technology advances, regional developments, gas market futures and investment.

6-7 March 2013 Copthorne Tara Hotel, London, UK Contact Andrew Gibbons Tel: +44 (0) 20 7827 6156 Email: agibbons@smi-online.co.uk Unconventional Gas 6-7 March 2013 Copthorne Tara Hotel, London, UK Contact Andrew Gibbons Tel: +44 (0) 20 7827 6156 Email: agibbons@smi-online.co.uk www.unconventionalgas-smi.com World Ports and Trade Summit 19-20 March 2013 St Regis Saadiyat Island Resort, Abu Dhabi, UAE Contact Chris Adams Seatrade Middle East Email: cadams@seatrade-middleeast.ae www.worldportsandtrade.com/index.php/contacts Oil and Gas Telecommunications 20-21 March 2013 Copthorne Tara Hotel, London Contact Jules Omura SMi Group Ltd Tel: +44 (0)20 7827 6018 Email: jomura@smi-online.co.uk World Luxury Expo 31 March-2 April 2013 St Regis Hotel Doha, Qatar Contact World Luxury Group Tel: +966 1 2795129 Arab World Conference on Public Health 4-6 April 2013 The Ritz-Carlton, Dubai International Financial Centre, Dubai, UAE Contact MCI Middle East PO Box 124752, Dubai, UAE Tel: + (971)-(4)-3415663 10th Leading CEO Conference: new strategies, challenges and opportunities 10 April 2013 Burj Al Arab Hotel, Dubai, UAE Contact Datamatix Group Tel: +971 4 332 6688 Email: info@datamatixgroup.com http://www.datamatixgroup.com/contactus.asp The Internet Show 2013 16-17 April 2013 Madinat Arena, Madinat Jumeirah, Dubai, UAE Contact Tel: +971 4 440 2500 Cityscape Abu Dhabi Abu Dhabi’s only international real estate event 16-18 April 2013 Abu Dhabi International Exhibition Centre, Abu Dhabi, UAE Contact Iman Eissa, Conference Manager Tel: +971 4 407 2756 Fax: +971 4 335 1891 Email: iman.eissa@informa.com

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