Delano Plus - International

International OCTOBER 2021

LUXEMBOURG

Franz Fayot : the minister on economic and development priorities – CONVERSATION

Carlo Thelen and Cindy Tereba on doing business abroad – LUXEMBOURG IN DUBAI

Five things to discover

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A sense of community

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Editorial Phone: (+352) 20 70 70-150 E-mail: news@delano.lu publishing director

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To say that the last 18 months have tested the resilience of communities is an understatement. While the health pandemic didn’t spare any particular group, it carried vastly different socioeconomic impacts--hitting vulnerable communities particularly hard, at times even reversing humanitarian gains.

In Luxembourg, there were notable solidarity efforts which gave many a stronger sense of community. This may have resonated especially true for the many expats working and living in the grand duchy, many of whom suddenly found themselves longing for home, concerned about family and friends abroad. Despite this, they often found a richer sense of community, be it through expat groups, local business or school networks.

One of the perks of being an expat in Luxembourg is, in fact, automatically being part of a larger international community. Nearly half of the country’s population (and close to two-thirds of its workforce) are foreigners, and this figure rises to over 70% for the capital. The favourable business environment, general safety, support for families and more make it a great place to work and live. It’s easy to see why so many expats started off in the country on short contracts, yet never left.

This is Delano’s inaugural supplement--the first of many to come--and we focus on both inbound and outbound international business, highlighting the vast network worldwide that helps facilitate that. There’s a special section (pages 28-32) devoted to Luxembourg’s participation in the Expo 2020 Dubai, which kicks off on 1 October. It had unfortunately been postponed by a year because of the pandemic, but now there’s real buzz generating around it.

As economy minister Franz Fayot points out in our main story in this issue, Dubai will be among the first large-scale gatherings of the international business community--a time, as he puts it, “to exchange, to find new opportunities.”

Editor-in-chief, Delano magazine NATALIE A. GERHARDSTEIN

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OCTOBER 2021 INTERNATIONAL

Editorial #Welcome

Sharing your ambitions

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Pragmatism, performance & proximity We support all your transport and logistics projects, all the way to the borders of Europe.

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International October 2021

06 ON THE RADAR

“A very efficient network” for doing business abroad

08 CONVERSATION WITH FRANZ FAYOT

“A reflection I want to lead over the next three years”

22 IN FOUR POINTS

Essential moments in international expansion

12 Dossier

Luxembourg: the place to be

24 SUCCESS STORIES

Tales of international growth

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16 TOOLBOX

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18 DOING BUSINESS

Looking for support?

28 LUXEMBOURG IN DUBAI

Five things to discover

p.08 Franz Fayot on sector diversification, development and his dual portfolio

30 RETROSPECTIVE

Luxembourg at the World Expo 32 RISTRETTO

#WhyDubai 34 FORECAST

Photos

Romain Gamba

What’s on your 2022 agenda?

p.20 Luxembourg Chamber of Commerce’s Carlo Thelen and Cindy Tereba on international opportunities

OCTOBER 2021 INTERNATIONAL

20 CONVERSATION: GOING INTERNATIONAL

The gateway to Europe

Four advantages of Luxembourg

5

On the radar #Luxembourg

The gateway to Europe Tiny Luxembourg has often punched above its weight in the EU, of which it is a founding member.

47.4%

As of 1 January 2020, nearly half of Luxembourg’s population were foreigners, up from 43% in 2011.

Source

Statec

7th

TRADING PARTNERS

Regional benefits Close to other major European cities, the grand duchy also benefits from a regional network. Below are 2019 import-export figures with its neighbours: Germany, France, Belgium and the Netherlands (in €m).

Source

Statec

Seventh most resilient economy in the world among 130 economies studied.

Source

2020 FM Global Resilience Index

LUXEMBOURG

€5.5trn

NETHERLANDS EXPORTS: 731.9 IMPORTS: 1,213.0

Luxembourg’s fund industry assets under management approached a new record in June 2021.

Source

BELGIUM EXPORTS: 1,619.2 IMPORTS: 7,274.7

CSSF

GERMANY EXPORTS: 3,503.6 IMPORTS: 5,220.4

“ Private investment, together with public sector actors, can change and improve the world.”

FRANCE EXPORTS: 2,113.6 IMPORTS: 2,353.2

Luxembourg’s prime minister speaking with Delano in June 2021 about how proud he is that the country has become a global leader in green finance.

LUXEMBOURG’S GLOBAL NETWORK The network abroad includes Luxembourg Trade & Investment Offices in nine locations (listed to the right), plus 40+ embassies, general consulates and permanent representations, 160+ honorary consuls and 14 foreign trade advisors in 70 countries.

Source

Luxembourg Trade and Invest

Abu Dhabi/Gulf region

Shanghai

Casablanca

Taipei

NYC

Tel Aviv

San Francisco

Tokyo

Seoul

www.tradeandinvest.lu

Andrés Lejona

Xavier Bettel

Photo

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LUXEMBOURG @ EXPO 2020 DUBAI 01.10.2021 – 31.03.2022 © METAFORM architects

www.luxembourgexpo2020dubai.lu

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Franz Fayot was appointed to the dual role of minister of the economy and development cooperation and humanitarian affairs in February 2020 following a cabinet reshuffle

Conversation Franz Fayot

“A reflection I want to lead over the next three years” Luxembourg minister Franz Fayot (LSAP) reflects on the parameters framing the country’s growth and opportunities in diverse sectors, his dual portfolio in economy and development cooperation and what he’s looking forward to during the official missions to Dubai.

Interview NATALIE A. GERHARDSTEIN Photo ROMAIN GAMBA

I understand you’ll be participating in the official space mission to Dubai, among others. Could you tell us a bit about the potential you see in this sector: how important is it in terms of the diversification of Luxembourg’s economy?

It’s very important because internationally, it really puts us on the map as a country of innovation, as a country that does not hesitate to make bold moves by going into the new space economy, investing quite importantly in this Space Resources initiative, where the idea is to build an ecosystem, which involves research, incubators, [and also] legislation, partnerships such as the Artemis Accords, but also partnerships with a number of other countries… where new space companies can establish and set up shop in Luxembourg and really work with each other to advance with new business models. [These] are all geared towards seeing how you can, in the first stage, really use the data that you get through Earth observation, and combine that with data sets here on Earth, and use that, for instance, for space traffic, debris management.

I think these are the first applications that we see, but also Earth observation, with a range of different applications--in maritime, precision farming, also potentially in development cooperation and humanitarian fields to observe droughts, severe climate phenomenon and really make a difference also for the Earth.

I think that’s a very exciting field, and it’s one that has been started by my predecessor [Étienne Schneider], but which I’m also very keen to continue.

OFFICIAL SPACE MISSION: 8 LUXEMBOURG EXHIBITORS Franz Fayot will participate in the economic mission focused on the space sector, taking place in the UAE on 24-30 October and coinciding with the International Astronautical Congress (IAC), held for the first time ever in the Middle East. The flagship event is expected to bring in around 6,000 international participants. Eight exhibitors will be hosted by Luxembourg, with Luxembourg Space Agency’s support, including Gomspace, iSpace, List’s Erin, Maana, Offworld, Saturne Technology, SES and Spire.

Source

Ministry of the economy

There has been debate over the last two years about what sort of economic sectors Luxembourg should attract-the dichotomy between industrial entities like Fage and high-tech initiatives like the Google data centre, for instance. Which sectors are most promising, in your opinion? …We had [previously] identified a number of sectors to diversify our economy, which include healthtech, cleantech--all companies involved in basically making the Earth cleaner and also building on circular economy. This also involves everything that is digital, but I would qualify digital and ICT more as an enabling sector for the rest. Space is also among them.

Logistics is also a very strong field that we have--also a bit of an enabler because you see that logistics is really evolving into this supply chain management which is a very high added value form of logistics, and which has been instrumental in managing the covid-19 crisis. We have been able to draw on this strong logistics sector that we have--very high added value logistics, but also very competitive with Cargolux, with trains, very good infrastructure, such as our Euro hubs and strong digitalisation.

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Conversation

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And then, we also have the most traditional industry, which is really on the way to this green and digital transition, which is getting ever more sophisticated, evolving into industry 4.0. You see that in all the industries that we have: they are using ever more data to improve their business models. And I think that’s also very promising: to keep this industrial fabric that we have here in this country, and to accompany it in the transition towards a more sustainable and more digital future. And I think that’s the way to go.

When we really look at what’s happening in Europe, in the US, pretty much everywhere in the world, it’s a shift towards decarbonising the economy, towards digitising the economy, with the end goal to attain climate neutrality, to preserve biodiversity and to keep us competitive and productive, while at the same time [doing] it in a more sustainable way… I think everything pertaining to more low-tech businesses--meaning the arts and crafts, more manual work--is also something that is hugely promising.

You see that particularly during a crisis: you see how important it is to have a good plumber, a good electrician--all these jobs and crafts that have not been so prominently featured recently but which, I think, are also what’s becoming more digitised [and] which are also hugely important in the future.

A Eurostat country tracker [and report] focused on the Sustainable Development Goals (SDGs) shows that Luxembourg has been slipping a bit in certain areas, e.g., Goal 8 (“Decent Work and Economic

Growth”). How will the country get back on track in this area?

Obviously, there are two dimensions to the SDGs: there’s the international dimension, which is where my ministry of development cooperation is in charge of really tracking the progress on these SDGs, and the SDGs are applied to the national level…

I think we are making, of course, huge efforts here to preserve the working conditions, and I think it’s fair to say that we still have pretty decent work in international comparison. We have a very strong set of laws and regulations protecting workers.

Obviously, we have social security and global health insurance, which is not the case everywhere in the world. We have the minimum wage, which has also been increased recently [by 2.8%], adapted to the general inflation of salaries…

I think it’s fair to say that on decent work, we are really making huge efforts and, of course, it’s also my party’s role and my party’s bread and butter to make sure that this is still very much preserved. On competitiveness, that’s the big issue, or rather on sustainable growth, about qualitative growth, and that’s a discussion we have been leading now for five, six, seven years. Also in the context of what you mentioned… what kind of growth do we want? What sectors, industries are still a match with the country, which is small, which is also reaching its limits in terms of available industrial land, which also has an issue with traffic, housing, all these externalities that people are concerned about? Of course, [one] which wants to

“ … it’s obvious that future societies will be decarbonised [and] more environmentally friendly, and that our economic systems must also adapt to this new reality.”

preserve the quality of its environment, its nature, its biodiversity.

And that’s really the discussion at the end of the day about what’s the importance of growth, of classic growth in terms of GDP, as opposed to maybe more nuanced refer[ences] such as ‘PIBien-être’ (well-­ being index), all these alternative benchmarks that we now have also in the international discussion. And I think that’s really a societal discussion that we need to lead. That’s also why I have created ‘Luxembourg stratégie’ [which] has the mission to reflect on the future of the Luxembourg economy, on future growth, on its opportunities’ potential, by taking in all the different factors that are important in terms of demographics, social conditions, environment, the necessity to adapt to the Paris Agreement, CO2 neutrality--all these parameters that are now really conditioning the way a country also develops economically. That’s a reflection I want to lead over the next three years.

Let’s switch gears a bit to your other portfolio in development cooperation and humanitarian affairs. What intersections do you see between your two portfolios? How do you balance the two, and how has covid potentially shaped this more recently?

That’s an excellent question. What is quite obvious is that Luxembourg does not, and has never, used its development cooperation to further its economic agenda.

So there is a clear separation between the two. We don’t have that tradition, and I think that’s a very good thing. We don’t use our influence that we gain through development cooperation to further any business agenda. I think that this is one important point that is somehow raised [by] people who are critical of the fact that I accumulate these two ministries.

On the other hand, I think there are our unique selling propositions that we have as a country, from our economic development. That includes digitisation, space, the whole finance sector, and also inclusive finance, which can be used to advance the SDGs. It’s quite clear that ODA (official development assistance) in itself is not sufficient to finance the SDGs, in particular not by 2030, so the private sector is needed to participate in that effort.

That’s why I have launched this new strategy on inclusive finance. We have a microfinance, now inclusive finance sec-

Franz Fayot

The grand duchy has exceeded the UN’s 0.7% aid target. Other countries like the UK, however, are reducing their efforts. Is this a commitment that you see could be maintained despite the toll of the pandemic?

Absolutely. I think that’s a commitment that will be maintained. It’s quite clearly set in the coalition agreement, and we have also maintained it in 2021, despite, of course, a difficult financial environment. In 2020, the ODA decreased a little bit because mechanically, 1% of [GNI] was less than foreseen, due to the crisis, so we went down a little bit in 2020. In 2021, we went up again. But the 1% of GNI is not under discussion--and has

0.7%

Luxembourg was one of only seven OECD countries (also including Denmark, Germany, Norway, Sweden, Turkey and the UK) to meet or exceed the UN’s collective target of gross national income (GNI) to official development assistance (ODA) in 2020.

Source

OECD

never been under discussion--so I think that’s quite a strong commitment that Luxembourg has, and it is also one for which we are highly respected, because, as you said, you see countries like the UK or others who really use this as a kind of buffer, probably also in the aftermath of Brexit, to save money, which I think is the wrong signal. Anyway, I think we are really very strongly committed to that level of ODA. Could you tell us what you’re most looking forward to with the world expo--not only in Dubai in light of your upcoming visits, but also with an eye ahead to the next world expo in Osaka, Japan, in 2025?

First, I’m looking forward to being [in Dubai] in October. It’s hopefully less hot than now, or when we visited in June, which was excruciatingly hot already-mid-40s… So I hope it will be a little bit cooler when we are there during the expo season.

I think I will visit on three or four occasions--the first time in October, that will be the very first visit of a government official for this space summit, and again there are two or three more visits scheduled. Dubai will be hopefully the first big global gathering again of the international community, of course also the business community, so it will be an opportunity to meet with people, to exchange, to find new opportunities.

It’s also going to be obviously a very important rendez-vous in our external trade efforts to position our companies, but also to see what new markets we can access with our companies. On my first visit, I had very good discussions with the Emirati government authorities, which are very open to collaborations with Lux-

embourg, in a whole range of different fields from circular economy to clean energy, to renewable energies, to space.

Digitisation is, of course, also something that they are working on a lot, so that’s going to be a big potential. It’s something that is very well prepared by the Expo team, but also by our embassy and our LTIO on the ground… It’s the fullest, I think, schedule of any expo we had so far, so there are a record number of events that are already organised and planned.

Looking a bit further to Osaka, where we have declared that we would participate, this will also be a project that I’m very excited about because I really want to use this as a showcase of what we can do to make our economy more sustainable. The theme of Osaka is designing future societies and, for me, it’s obvious that future societies will be decarbonised [and] more environmentally friendly, and that our economic systems must also adapt to this new reality. So, the idea in Osaka is really to build a pavilion which is self-built, on a middle-sized plot, which will be fully circular. We already have a very good collaboration with Bâtiments Publics [the Public Building Administration], who are going to help us in building this pavilion, to make sure that right from the start, it’s designed so that we know what is going to happen with it at the end of the Expo, how we can reuse it and recycle it. So, it’s really going to be, I think, the very first building--and Dubai also has elements of circularity--where we really design it in this closed cycle of the circular economy. And I think that, in itself, it will be a very powerful statement on where Luxembourg is going with the future of its economic development.

OCTOBER 2021 INTERNATIONAL

tor, which has been built up over the last 20 years--which includes all fields [ranging] from microcredits to micropayments, microinsurance, financings to small farmers, women, etc.--but also drawing on the more traditional finance to set up funds, which go into development cooperation, which are typically de-risking funds.

We have set up two of those. One of them is the Build Fund, which we’ve done together with UNCDF [UN Capital Development Fund]. The other one is the ABC [Agri-Business Capital] Fund on farming, and these have been set up with a management company, Bamboo Capital. It’s really an example of what can be done to bring in the traditional financial sector, to participate in these efforts, to lift up the least developed countries and to achieve the SDGs. The same goes for the digitisation strategy, which we are going to present, which is called digital development, where we draw on the infrastructure we are building up, but also on the skills in cybersecurity and fintech to make a difference with our partner countries and generally in the global south.

So I would say it’s using the strength and synergies of the private sector to make progress on development cooperation, under the leadership, of course, of the ministry in charge of structuring that.

I also see this potential in space. As I told you, observation is a very powerful tool.

I think it’s quite a unique position to be in as a minister, because you see all these things in the economy, these innovations and what businesses are doing, and how you can use them in development cooperation work.

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Dossier

“There’s capacity to get things done efficiently and quickly”

Luxinnovation CEO Sasha Baillie took on her role in 2018

Luxembourg isn’t just a financial centre: choosing to do business from Luxembourg presents a host of opportunities on both the professional and personal fronts.

Words NATALIE A. GERHARDSTEIN Photo ROMAIN GAMBA

Photo Andrés LejonaWords Natalie A. Gerhardstein

The place to be

WORKING ENVIRONMENT Here’s a quick look at the composition of Luxembourg’s workforce.

+70%

The share of the Luxembourg workforce that are cross-border workers or immigrants

200,000

Photo

Andrés Lejona

Estimated number of daily cross-border workers, around half hailing from France

10,000 Approximate number of international officials and civil servants Source

www.adem.lu

we are developing in Luxembourg, what is it that those sectors have in Luxembourg and where are there gaps--and how do we fill those gaps? What is it that we need to attract to Luxembourg that’s going to be reinforcing and complementary to what we already have?”

Its clusters--in areas ranging from cleantech and healthtech to creative industries--reinforce those business-research links to help boost innovation.

3 QUESTIONS TO Nicolas Mackel What are Luxembourg’s top three selling points?

The ecosystem [and] expertise that exist here in certain activities, e.g., fund activities, wealth management; the economic, political and regulatory stability; and we provide firms coming here with multijurisdictional expertise, built on an international community.

Assistance in accessing funding Its specially dedicated EU funding team also helps entrepreneurs gain knowledge How does Luxembourg and insight into funding opportunities, com­pare to other at the national level and beyond. It serves international cities? as the national contact point for H ­ orizon It has many of the features of Europe, the EU’s key research and innoother big cities--international vation funding programme which aims population, cultural and sports to achieve the United Nations’ Sustainoffer[s]--but also many advan­ta­ able Development Goals. ges of a small city. The mistake “We follow those programmes, and many make is to simply look we make the connection between what’s at the number of inhabitants… going on there, where we have compaLuxembourg is a European nies that have the competencies--or at capital, with many of the large least the potential to take part in such EU institutions, and a major consortia--to develop also new technolinternational financial centre… ogies with other companies in Europe or other research and technology organAny trends for the year ahead? isations, and how we can help our comSustainable finance: it’s really panies apply [and] take part in these happening in the financial programmes where there’s going to be indus­try because it’s a necessome European financing coming in,” sity. Everyone is aware of the Baillie says. urgency to act for the environA total €95.5bn has been earmarked ment. But the crisis has also until 2027 for the Horizon Europe proshown that housing, healthcare, gramme, but Baillie says the application education, safety of workers, process can be quite “complex… with etc., are very important. So are a lot of details to be provided,” and so governance and diversity... the Luxinnovation team helps organise Other trends are the continued seminars or one-to-one briefings with rise of alternatives, where potential applicants to help get them Luxem­bourg has seen massive on their way. growth over the last “At a success rate of nearly 20%, we are couple of years, the third highest in the EU [in terms] on the back of “Sustainable of success in applications,” Baillie ­continued adds. “That really is thanks to this low-­interest finance: it’s really team that prepares the companies rates. happening in and research organisations as well, with their funding applicathe financial industry tion, so it really is as fluid and as because successful as possible.”

A “tremendous” evolution Baillie also understands the challenge of adapting to new cultures, as her career previously took her abroad to Brussels, Belgium, and Moscow, Russia.

it’s a necessity.”

NICOLAS MACKEL CEO, Luxembourg for Finance

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For those living in the grand duchy, the benefits of the country are evident: not only is Luxembourg located in the heart of the EU, but it’s business-friendly, with a multilingual and multicultural fabric to boot.

But the country isn’t just well connected to the greater region or Europe.

Inside the borders, plenty of players are helping to connect the dots. Case in point: ­Luxinnovation, the national innovation agency, whose mission is to foster ­companies and research organisations in their innovation and economic developments, also helping to attract international ­investment in line with the gover­n­ment’s ­objectives.

In Luxembourg, “you can be in the centre of things, where there’s an ease of interaction, and this is something that really matters to businesses,” explains Sasha Baillie, Luxinnovation CEO. “There’s the capacity to get things done efficiently and quickly by these personal direct ­connections to key decision makers.”

The agency is part of a broader ecosystem to help businesses and other partners easily link up. Its services help facilitate large-scale cooperation projects, i.e., with research and tech players. ­Targeted prospecting also plays a role.

As Baillie explains, “what we have done is help to identify better the key sectors

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A financial centre, but not just Another individual who has found it easy to work and live in Luxembourg as an expat is John Psaila. The Deloitte Luxem­ bourg managing partner has been based in the country for two decades, initially arriving in 1999 for a five-week exchange and later returning in April 2001 after deciding his native Malta no longer suited him. “Working in a multicultural environment like Luxembourg has a unique charm. You may start the day with a ‘Moien’ [Luxembourgish for “hello”], continue your work in English and then switch to French, German or Italian, depending on the client or colleague you are dealing with,” he says. “I believe it comes with a higher mutual understanding and respect, and creates positive social dynamics that unite the wide diversity of p ­ eople living here.”

According to Luxinnovation figures, in fact, the share of foreign citizens in Luxembourg’s workplace--which counts both cross-border workers as well as non-national residents--is above 73%.

The highly skilled workforce is also evident in the fact that inhabitants speak, on average, 3.6 languages, which puts the grand duchy top of the EU league table.

Psaila has also witnessed the country rapidly evolve since he first arrived over 20 years ago and still praises it for providing an excellent quality of life, both personally and professionally.

“Excellent schools, a rich cultural life, a truly multi­cultural environment, and a dynamic and highly qualified labour market are only a few of the pillars on which Luxembourg’s success is built,” he says, adding that the location in the heart of the EU provides “endless opportunities” for those wanting to explore more of Europe, all the while having a good place to root themselves.

JOHN PSAILA Managing partner, Deloitte Luxembourg

“Working in a multicultural environment like Luxem­bourg has a unique charm.”

DAVID CAPOCCI Managing partner, KPMG Luxembourg

“​… this collective drive to create the future here in the grand duchy is what makes it such an exciting place to be.”

An innovation mindset Similarly, David Capocci, managing partner of KPMG Luxembourg, fell under what he calls the “Luxembourg spell,” one with which many long-term expats in the grand duchy are familiar. Capocci has also worked in the grand duchy for more than two decades.

“From two-year contracts being extended well past 20 years, to people who commit hour-long commutes every day from the neighbouring countries, Luxembourg has a unique way of grabbing your attention and never letting it go,” he tells Delano.

Capocci took over the reins for a fouryear term in October 2020 and has a CV that includes 20 years’ experience in alternative investment funds. He’s also an avid cyclist--one of many to take advantage of the more than 600km cycling paths across the country, some along picturesque rivers, others following converted railway lines. This path network is constantly expanding.

“As I cycle along the path that connects Cloche d’Or with Kirchberg, the two financial centres of the grand duchy, I could easily forget that I am cycling through the heart of a city,” he explains. “This ability to step outside of my office and five minutes later be lost in one of the best-kept forests in Europe is one of the ways Luxembourg hooks you in.”

Whether taking in the architecture or noticing new businesses taking up residence, the exec is impressed not just by the accelerating development of the country, but also for the sort of opportunities presented to employees which might not be as readily accessible in other financial centres. In Capocci’s words: “Employees have needed to upskill continuously in order to keep up with Luxembourg’s expansion. You can feel this innovation mindset pulsating from every building and, as a result, this collective drive to create the future here in the grand duchy is what makes it such an exciting place to be.”

Photos

OCTOBER 2021 INTERNATIONAL

Upon her return to the grand duchy eight years later, she says she was impressed with the way Luxembourg had “evolved tremendously”--not just due to government investment and infrastructure, “but in culture, and in evol­ving mindsets. It’s become more open-minded, inviting…

I have a lot of my friends who really feel very comfortable in Luxembourg and wouldn’t leave anymore, built up their own network of c ­ olleagues and friends, and really become part of Luxembourg.”

Deloitte Luxembourg, KPMG Luxembourg

Dossier The place to be

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Struggling with climate-related and environmental risks Our expert team supports our clients to seek innovative solutions by integrating Environmental, Social and Governance risks into their risk management framework. www.99-advisory.lu | +352 208 001 21 23

Dossier Toolbox

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1

International

The grand duchy is regularly praised for its multicultural and multilingual dimensions.

Nearly half of Luxembourg’s population are foreigners, hailing from around 170 countries, meaning English is increasingly used as a business or vehicular language.

There are plenty of platforms and services geared to the expat community, including international and European schools. In 2018 the World Economic Forum ranked Luxembourg third most inclusive advanced economy, out of 103 listings, taking into account growth and development, inclusion, intergenerational equity and sustainability.

3

Ease of access

Four advantages of Luxembourg Words NATALIE A. GERHARDSTEIN

Freeport

Innovation

The grand duchy has a vibrant startup scene, with plenty of programmes for entrepreneurs. The country has also rapidly advanced in areas like fintech, climate finance, health tech and more, all boosted by current digitalisation strategy. In June 2021, the Meluxina supercomputer became operational; with a 10-petaflop calculating power, it’s in the top 50 most powerful supercomputers in the world. The burgeoning space sector is also making strides, with new announcements forthcoming. Through the Space Resources initiative, this sector has rapidly developed. Some 50 companies operate in the sector, while the University of Luxembourg offers unique space-related degrees to foster talent in this domain. The country was one of the first of eight to sign up with Nasa’s Artemis Accords.

2

Key international cities like Frankfurt, Paris or London are reachable within an hour’s flight. Luxembourg is also a key logistics hub: freight carrier Cargolux, for example, ended 2020 with a record €637m profit, driven by high demand for medical equipment. The country’s size also makes it easy to network and gain access to key decision-makers. Business-oriented, with a solid AAA rating and highly reactive legislators and supervisors, it’s an optimal place for accessing the EU-27 and its nearly 450m consumers. As Delano reported in March 2021, there have also been more than 60 Brexit moves by financial sector businesses to enhance or establish a foothold in the EU from the UK.

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Launched in 2014, the Luxembourg Freeport is a secure site where valuable goods (e.g., works of art, luxury cars) can be stored. A series of taxes (VAT, import taxes, etc.) can be avoided, while all goods transiting through the site are controlled by customs, with anti-money laundering regulations still respected. It serves as a useful tool for private bankers in terms of tax optimisation and wealth management.

Dossier Doing business

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Looking for support?

Entrepreneurs often cite Luxembourg’s network as a huge positive.

The following is a rundown of key organisations with business expertise, locally and further afield.

Words DELANO STAFF

ODL – Luxembourg Export Credit Agency The public body describes itself as a “one-stop shop for exporters”.

It awards financial support to Luxembourg exporters, helps them tackle insurance issues related to exports and investments and offers advice on a company’s international prospects. www.odl.lu

Luxembourg Trade & Invest

Ministry of foreign & European affairs

Part of the economy ministry, this organisation is devoted to developing Luxembourg’s economy by helping local businesses expand or export internationally, as well as attracting foreign direct investment. It also provides information about funding and innovation opportunities within the country, useful initiatives and programmes for businesses, with links to matchmaking organisers, market information and agencies that can help with internationalisation.

The ministry looks after Luxembourg’s foreign and European policy, promoting and defending the country’s interests and image abroad.

www.tradeandinvest.lu

House of Entrepreneurship The platform gathers parties across Luxembourg’s business creation value chain and offers services for new and established entrepreneurs alike, including personalised advice, workshops, funding and aid. It also represents a useful networking hub. www.houseofentrepreneurship.lu

Ministry of the economy The economy ministry promotes Luxembourg’s economy abroad via frequent trade missions, as well as other initiatives.

As part of the government, it also oversees economic policy and fosters the development of the national economy.

maee.gouvernement.lu

Luxinnovation The agency, a state initiative, offers valuable (and free) services to firms of all sizes, such as helping them find collaborative opportunities with public research organisations. It also works to attract money, firms and skilled workers to Luxembourg. www.luxinnovation.lu

Enterprise Europe Network

Besides running the Houses of Entrepreneurship, Startups and Training, Luxembourg’s Chamber of Commerce holds regular workshops and networking events.

It’s furthermore a great resource for analyses, surveys and infographics of Luxembourg’s economy.

A European Commission initiative, the network is dedicated to helping entrepreneurs expand their business activities in Europe.

It helps firms find international partners with which to manufacture or distribute products, access new markets, find the right technology or carry out research projects. Its advisory services cover subjects such as exporting products or services, securing EU funding, financing plans for growth and protecting intellectual property and assets abroad. It holds trade missions, conferences and workshops around Europe.

www.cc.lu

een.ec.europa.eu

meco.gouvernement.lu

Chamber of Commerce

Boost and protect your exports The one stop-shop of the Luxembourg Government

as well as insurance solutions for international trade and investment risks.

www.odl.lu

Conversation

SEPTEMBER OCTOBER 2021 INTERNATIONAL

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“A very efficient network” for doing business abroad The Luxembourg Chamber of Commerce boosted digitalisation when the pandemic hit, which proved valuable for companies considering international expansion. Carlo Thelen and Cindy Tereba talk about opportunities when going abroad.

Words NATALIE A. GERHARDSTEIN Photos ROMAIN GAMBA

CINDY TEREBA Director international affairs, Luxembourg Chamber of Commerce

CARLO THELEN General director, Luxembourg Chamber of Commerce

Going international

21

A NETWORK ABROAD that it’s important not to get lost in digitalisation, and that for some markets, face-to-face contact is still ideal.

An eye on Dubai, and beyond At the time of writing, the Chamber of Commerce was already well underway helping to organise the first of several official missions linked with the Expo 2020 Dubai, including an ICT mission taking place on 17-22 October, which includes a visit to the Gulf Information Technology Exhibition (GITEX)--the Middle East’s leading consumer c­ omputer and electronics trade fair--as well as the space mission on 24-30 October, to coincide with the International Astro­nautical Congress there. Thelen is certain there will be high interest.

Additional missions include the “Made in Luxembourg” week, with others focused on sustainability, health tech and food and beverage. And on 23-25 January 2022, the Chamber, along with its Enterprise Europe Network, will organise a matchmaking fair, packed with networking opportunities. Such b2fair events have served as flagships at other trade fairs in the past, including, for example, at the Shanghai World Expo in 2010. “In Dubai, it will be very international, and that’s a huge advantage for members to focus on--they will find business people from around the world,” Thelen explains.

Thelen and Tereba see investments in Dubai as valuable not just for the local market, but markets beyond. “Dubai-and the UAE--is really a turning platform in logistics, trade, finance, within a region which has totally different geopolitical interests and positioning,” ­Tereba says.

“From this perspective, it’s very interesting, because it’s kind of a safety hub… it’s peaceful, and it becomes a very interesting point of access to a region, which, for the European, remains quite difficult to access.”

Having spent four years in the UAE, she praises its evolution, melting pot of cultures and more. “The dynamic of this region was incredible… not typically compar[able] with anything that you see in Europe.”

OCTOBER 2021 INTERNATIONAL

Business clubs

Many companies were recently forced The Luxembourg Chamber of Commerce counts around to ramp up their digitalisation efforts 90,000 affiliated members, anyway, but a digital guide--powered by representing 80% of GDP. the Chamber along with the ­economy Its international network includes business clubs ministry and Luxinnovation--was in Paris, Berlin and Brussels, ­laun­ched at the end of 2020 in a bid to with another set to launch help c­ ompanies not only boost their online in London in Q1 2022, as well as the European opportunities but also orient their interEnterprise Network. national strategies. www.cc.lu The grand duchy is an export-intenMissions and more sive country, exporting around 80% of For more information its goods and services. As Chamber of about the official missions Commerce general director Carlo Thelen to the Expo 2020 Dubai: www.cc2020.lu explains, the main export-import partners are France, Germany and Belgium, then the UK. Which is why the Chamber has four bureau offices in those countries, in partnership with the ministry of foreign affairs, with plans for another in ­companies were really venturing to this London to officially open in Q1 2022. new format.”

Luxembourg’s network abroad also One example deemed a success was includes around 40 embassies, Luxem­ the “Go International” e-mission to bourg Trade & Investment Offices (LTIO) W ­ isconsin, US, which the Chamber held in nine locations and over 160 honorary in spring 2021, in close partnership with counsels (see page 6). “It’s a very efficient the economy ministry, Luxinnovation, network,” Thelen explains. “Luxem­bourg the Luxembourg House of Financial is small, so we have to focus on the best ­Technology and the Wisconsin Economic possible networks and hubs.”

Development Corporation. The threeThis year marks the centenary of the day virtual mission was deemed a success, Belgium-Luxembourg Economic Union as 250 business professionals participated, as well. “In this framework it says that while economy minister Franz Fayot (see in every country where we do not have page 8) also announced an innovative a diplomatic representation, the Belgian programme for Luxembourg startups to representation supports Luxembourg for get support through a partnership between economic topics,” Thelen adds. the economy ministry and gener8tor, an “For small- and medium-sized c ­ om- accelerator with a Wisconsin base. The ­pa­nies, it’s very important to have a direct initiative allows for five grand duchy ­partner to ask questions when it comes startups per year to discover the US marto exporting a good or service.” ket, utilising gener8tor’s already established network there.

Laser-sharp focus Already by 2019, exports and imports Prior to joining the Luxembourg ­Chamber between the grand duchy and the US state of Commerce as an attaché to launch equalled $7.23m and $2.69m, respectively. the first permanent office in Berlin in But the e-mission allowed for new early 2012, Cindy Tereba was r­ esponsible ­companies to make contacts, s­ trengthening for international business development bonds in areas like tech and innovation.

“That was the positive thing about at the German Emirati Joint Council for Industry and Commerce in Abu Dhabi. ­Wisconsin: without travelling, we were The international affairs director able to identify the areas of cooperation, acknowledges both opportunities and the companies interested, the niches, and challenges in doing cross-border busi- to inform about these regions,” Tereba ness digitally. “On one hand, we were says. “The next logical step would be to trying hard to keep contacts up and run- travel there because we’ve clearly idenning during this period, with foreign tified the target group and target sectors.” markets and partners, and this was well While such digital tools can be pragaccepted by companies,” she says, a ­ dding matic for connecting business leaders that upon analysis of participation rates and creating platforms--and even if on e-missions, digital trade fairs or webi- ­Luxembourg companies have been open nars, “we were pretty surprised that to operating more digitally--Tereba adds

In four points

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Essential moments in international expansion Plenty needs to happen between having the desire to expand across the border and realising that goal successfully.

Here is a deeper dive into four important moments along the way, with underlying questions to be answered through research, training and internal audits.

2 3

Words DELANO STAFF

1

Putting goals on paper You want to expand your business, but what are your specific objectives? Formalising long-term and short-term goals is easier said than done: on the one hand, you’ll need quantitative goals that demand careful research into the target marketplace and its economy, while, on the other hand, there are qualitative goals that require definitions of success rendered in the local context.

Granular goals should, furthermore, fit within the broader framework of what you want to achieve.

To meaningfully set all these objectives, research into the target marketplace is essential.

This can be done with the help of communication and cultural advisors, internationalisation training and area-specific specialists.

Finally, there are also more fundamental questions to ask about how the internationalisation should happen. Many firms will choose an import/export model of expansion, but there are other ways too. For example, capturing foreign investors, joining a value chain with global implications, moving your operations to another country, etc.

4

Getting help Internationalisation can’t be done in a vacuum.

Organisations in both your current and target environments hold expertise that will be vital to the process, starting with chambers of commerce and economy or trade ministries.

Beyond these, finding the right strategic partners can determine your long-term success across the border. Places like Enterprise Europe Network specialise in assisting entrepreneurs with sourcing such partners. (See page 18 for other institutions that can help in the process.)

Defining your unique selling point You have analysed your products and/or services and decided which have the potential to move across the border. You have looked at the underlying methods of their production and confirmed that they can handle internationalisation. It’s time now to establish a new understanding of these chosen products/services in the local context.

Who are your competitors in the target market? What do customers think of them?

What can you offer that differentiates you?

Will customers appreciate that selling point?

What will your pricing strategy be?

These are again questions that require research and a sense of the target market, but equally important is a look inwards. Each international expansion brings its own unique set of challenges, depending on the place and on the firm. To be successful, companies therefore need to be aware of their own strengths and weaknesses. What obstacles might arise because of the current size or structure of the firm? What work is the brand image currently accomplishing? What is the state of IT infrastructure in terms of being able to extend across borders? The best practice will be to conduct an internal audit that is as thorough as possible.

Finalising your business plan The latter steps of the process require a detailed look at business practicalities.

What are the tax and customs regulations that will affect your activities? How well are local supply chains able to accommodate you? How easy will it be to recruit local talent?

What challenges may arise on the marketing side of things, perhaps related to other languages or customs? These questions and others will have an impact on your business plan and budgeting process.

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Success stories

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OCTOBER 2021 INTERNATIONAL

Tales of international growth Many companies have chosen Luxembourg as a base for wider operations, whether they emerged in the grand duchy specifically for that reason or not. The following are four stories of four highly divergent firms that have managed to cross borders.

Words JEFF PALMS

SES

Cargolux

YEAR OF CREATION 1985

REVENUE IN 2020 €1.9bn

YEAR OF CREATION 1970

REVENUE IN 2020 €2.62bn

HEADQUARTERS Betzdorf, Luxembourg

NO. OF EMPLOYEES 2,100

HEADQUARTERS Sandweiler

NO. OF EMPLOYEES 2,368

INTERNATIONALITY Operating in 34 countries

CEO Richard Forson

INTERNATIONALITY Offices in 50 countries

CEO Steve Collar

SES, Cargolux

The covid-19 pandemic has had a series of impacts on businesses. Many small firms went bankrupt or switched to survival mode, while “Cargolux sees others found themselves itself as an ambassador needed with a new intenfor Luxembourg.” sity. In the latter group Richard Forson is Cargolux, LuxemCEO, Cargolux bourg’s freight airline, which posted record numbers in 2020--numbers to the tune of €637m in profits.

These results nearly quadruple the previous record year of 2018 and are about 32 times higher than profits from 2019.

The boon came as the company celebrated its 50th year.

Back in 1970, the firm had just one aircraft, whose first job was flying from Stockholm to New York to pick up strawberries and iceberg lettuce.

Half a century later, Cargolux operates a fleet of 30 planes and is looking towards improving its sustainability. CEO Richard Forson comments: “We are looking at all options of reducing our carbon footprint, including the acquisition of new generation widebody freighter aircraft and projects involving the production of sustainable aviation fuel.”

Photos

From its headquarters in the village of Betzdorf (­population: 250), SES runs the biggest fleet of s­ atellites in the world: 70 units across two orbits. It specialises in B2B services in the telecommunications sector, with over 1bn people relying on its technology for the delivery of their news and entertainment, according to the company’s website.

Ferdinand Kayser, strategic advisor to the CEO, says that the firm’s early success came from having an on-the-ground understanding of where it was operating: “We had offices and small teams in the respective markets supporting our customers in deploying the ecosystem.

What’s often forgotten is that, yes, you’re operating satellites “Our business and generating revenues by is international selling bandwidth--but­ what matters is the entire ecosystem,” by definition.”

Ferdinand Kayser he explained.

Strategic advisor Kayser is most excited to the CEO, SES about SES’s new O3b mPower satellites, which provide a “full constellation” of coverage. “When we start operations with mPower, we will be operating globally as of the first day.”

Success stories

Photos

LuxAI, B Medical Systems

Founded in 2016 by a computer scientist and a m ­ edical doctor, LuxAI applies robotics to special education.

The firm’s flagship item is QTrobot, a robotic platform that teaches emotional skills, social skills and e ­ arly-stage development. It’s particularly well suited for children with autism, who often gravitate towards the rulebased logic of machines. “Tireless and non-­judgemental” is how the LuxAI website describes it.

Until recently, QTrobot was made for research institutes, special schools and autism centres, but in 2021, the firm launched a new version meant for parents at home. And later this year both versions will become available in German and French, a natural progression for a Luxembourg-based company. “We’re excited to reach more children with autism with QTrobot,” say cofounders Pouyan Ziafati and Aida Nazarikhorram.

The firm stays in close contact with its customers, which the founders cite as a secret to its success. “We continue to get feedback on QTrobot as well as its custom-made educational curricula,” they say.

“Luxembourg “We meet all parents oneoffers a friendly to-one each month to disenvironment for new cuss their child’s progress, companies to build their which modules they are working on with their brands across Europe.” child, what their child has Pouyan Ziafati and Aida Nazarikhorram Cofounders, LuxAI accomplished and what they are struggling with.”

QTrobot is now used by therapy centres and research institutes in 15 countries and has won several awards, including the Top 10 Best Ideas of Europe by the European Commission.

HEADQUARTERS Luxembourg City CEO Pouyan Ziafati

TEACHING UNITS 200+ units (autism content) INTERNATIONALITY Units sold in 15 countries

OCTOBER 2021 INTERNATIONAL

B Medical Systems

LuxAI

YEAR OF CREATION 2016

25

The whole world spent a year anticipating covid-19 vaccines, and “We wouldn’t the moment they arrived, the be able to have the conversation turned to new health statistics and scourges success we are currently of misinformation. Through having without all all that noise, however, the people working for most people took one thing B Medical Systems.” for granted: the transporLuc Provost tation of vaccine doses from CEO, B Medical one point to another.

Systems But handling medical sub­­ stances is not always simple: mRNA vaccines, for instance, require storage at ultra-low temperatures. If any part of the “cold chain” is broken, the vaccine is ruined.

Headquartered in a village in the Éislek region, B Medical Systems specialises in the transport and storage of blood, plasma and pharmaceuticals like ­vaccines. Among its recent developments is a special freezer capable of operating at various temperatures between -86°C and -20°C. “This feature provides the much-needed ‘versatility’ for countries in their covid19 vaccine rollout programmes,” explains CEO Luc Provost. “By procuring our ultra-low freezers, the country can store the Pfizer vaccine, Moderna vaccine, or even Sputnik V vaccine in the same unit.”

The firm has recently inaugurated subsidiaries in the US and India, thanks in part to the Luxembourg government and the commune of Hosingen. “Luxembourg has always been at the core of our company’s DNA,” says Provost, citing the country’s ecosystem, supportive government, skilled and diverse workforce, and infrastructure as business positives.

YEAR OF CREATION 2015

PATENTS 100+

HEADQUARTERS Hosingen

CERTIFIED MEDICAL DEVICES 100+

CEO Luc Provost

INTERNATIONALITY Offices in 3 countries

OCTOBER 2021 INTERNATIONAL

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Sponsored content by PARTNRS

The world of professional services is one of the last strongholds not to be totally transformed by the digital revolution. However, this looks set to change with the arrival of PARTNRS onto the scene. By moving away from traditional patterns, the newcomer is asserting a disruptive approach towards the sector. We chatted to Cyril Lamorlette, founding partner of the group.

The economy is currently experiencing a profound shift of paradigm. Almost every business sector has undergone a dramatic change thanks to digitalisation. Events linked to the current health crisis have only accelerated this trend,

and if businesses want to survive, they must embark on a journey towards full recovery.

“Our mission is to help our clients to remain one step ahead in a constantly shifting environment. To achieve this, we ourselves must be one step

an option,” asserts Cyril Lamorlette, before adding: “Our size, governance and structure offer real flexibility and reactivity that traditional industry players can no longer deliver.”

To achieve this, PARTNRS has adopted an approach that brings together three often considered watertight concepts: the nature of the job and the challenges involved, the regulatory dimension – which is crucial – and finally the technological environment.

“Innovation and the new digital tools we offer are the key elements that complete our range of services,” details the founder. For example, the group has adopted a document dematerialisation service and smart process management, integrating DeMaSy ERP software and databots, not forgetting, of course, electronic signature.

Furthermore, it also has an artificial intelligence platform dedicated to risk management and

Photo

Get the Edge

ahead of change, be that technological or regulatory change,” explains Cyril Lamorlette. It’s clear that having a stable partner by your side, one with innovative tools and solid expertise on issues relating to regulatory and compliance matters, is crucial for a successful transformation.

PARTNRS is a new type of professional services company. A group of experienced entrepreneurs teamed up to launch the group at the beginning of 2021, receiving guidance from well-known figures from the Luxembourg professional services environment. The group has three main business lines, and is affiliated to a think tank dedicated to innovation (see insert opposite), a set-up which signals a departure in the way this type of group views and delivers its services.

“We champion an alternative mindset, one with a modern and disruptive vision.

The status quo is no longer

Edouard Olszewski

Professional services

BRAND VOICE

“Always challenge the status quo” PARTNRS wants to be a game changer. We stand up for our convictions, even if it means sparking controversy very often, this is what triggers the start of successful idea sharing.

1

360° expertise Although these areas of professional services activity are a given, the difference lies in their implementation.

Let’s revisit the classics, PARTNRS style.

Internal audit, Risk & Regulatory

“More digital must go hand in hand with more human and more meaning too“ Despite the benefits of digital applications, the human aspect remains at the centre. Technology must give meaning to projects.

2

“We expect our customers to be demanding” All of the company’s employees are highly skilled, experienced professionals. Thanks to their in-depth knowledge and expertise, we can respond to even our clients’ most particular requests.

Olivier Riehl

3

compliance, developed in partnership with Delta RM, a leading software and computing services company based in Paris.

PARTNRS is also creating and implementing cutting-­ edge tools in collaboration with many other partners, such as Luxtrust, Officient, TeamMate or Teroco. The company’s groundbreaking positioning determines the types of clients it attracts.

“Whatever their size or area of activity, what connects our clients is that they share our new mindset: the desire to do things differently and based on a relationship of trust.

They come to us so together we can build their success story,” explains Cyril Lamorlette. Indeed, PARTNRS currently has a wide range of clients, from European banking groups to startups from Luxembourg’s LHoFT, plus private equity funds, an automotive supplier and even private entrepreneurs.

Business Advisory Cédric Flipo Business line dealing with all transformation-related issues: managing initiatives aiming to assess, define and implement processes and tools, while taking into account ESG aspects that are essential today.

This entity also helps its clients to optimize their operational performance thanks to cutting-edge technology like artificial intelligence.

Internal audit services and compliance and regulatory consultancy relating to AML, MiFID and GDPR, using innovative applications and protocols: live action plan monitoring tools, constant customer interaction and dynamic mapping solutions for risk management.

Autonomous Open Innovation (AOI) Wesley Deglise

Domiciliation, Tax & Accounting Eric Babaud Accounting firm registered at the Ordre des Experts-Comptables, providing tax and accounting services, equipped with digital tools like data management solutions and electronic signature. Basic tasks are thus automated, and documents are dematerialised and secure, meaning employees can focus their time on providing support and customer advice, which are the real added value.

With Inno, PARTNRS is affiliated to a think-tank and an innovation programme which encourages creativity and idea engineering. The aim is to expand the range of solutions, focusing on pioneering topics such as blockchain, tokenization and sustainable finance, artificial intelligence and to function as an innovation laboratory for the group and its clients.

ation, inform at e r o For m e website visit th eu

s.

partnr

www.

OCTOBER 2021 INTERNATIONAL

THE COMPANY’S 3 KEY VALUES

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Luxembourg in Dubai

OCTOBER 2021 INTERNATIONAL

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Five things to discover Words NATALIE A. GERHARDSTEIN

1 WOODSY SCENT The open-air, green atrium repurposes water and showcases Luxembourg’s natural beauty--also through scent. Smell Marketing, specialised in olfactory signatures, created a fragrance reminiscent of the Mullerthal woods, so visitors to the Dubai site can be transported through scent. www.smell-marketing.lu

2 SCHUEBERFOUER-

INSPIRED SLIDE

Luxembourg’s pavilion is the only one of over 190 pavilions to include a slide, which connects the top of the ramp to the ground floor atrium. The slide is a nod to the country’s summer funfair, the Schueberfouer. Both kids and adults are encouraged to use it. luxembourgexpo2020dubai.lu

3 SCENOGRAPHY Walking up the ramp, visitors will experience sights and sounds of Luxembourg through the scenography concept created by Stuttgart-based Jangled Nerves. The experience captures Luxembourg’s diversity, connectivity, sustainability, entrepreneurial spirit and beauty. www.janglednerves.com

The €32m pavilion will be gifted to the UAE after the world expo, where it will be integrated into a new urban complex. Commissioner general of Luxembourg to the Expo 2020 Dubai Maggy Nagel tells Delano that it was important from the beginning that “visitors are able to discover the whole story of our country” through five senses.

3 QUESTIONS TO

KIM KEVIN DE DOOD

Executive chef, Schengen Lounge

4 THE DESIGN The Möbius ribbon-inspired pavilion, designed by Metaform, lends itself to the three-storey, interactive experience inside. The infinite shape symbolises the openness, dynamism and circular economy aspects of the country.

luxembourg.arcelormittal.com

Photos

5 NOD TO STEEL HISTORY Luxembourg’s long history of steelmaking is showcased in the pavilion: integrated into its structure are 170 tonnes of hot-rolled structural steel shapes from ArcelorMittal’s Belval and Differdange sites, produced from 100% recycled scrap as raw material.

Metaform Architects, Luxembourg Expo 2020 Dubai, Jangled Nerves, Romain Gamba, Nader Ghavami, Shutterstock

www.metaform.lu

What’s the inspiration behind the dishes prepared in the pavilion--and your personal favourite?

The idea of the pavilion was to show Luxem­bourg as a young, modern country with a lot of international influences…

Due to restrictions in Dubai, some of the very traditional Luxembourgish dishes containing some foods and wine were not possible to do. So, all the dishes on the menu are based on Luxembourgish dishes, but always with an international hint, or a little twist, to make them interesting--even for Luxem­bourgish guests.

One of my favourite dishes is Kniddelen, which classically have bacon and cream.

But in Dubai, you can’t use bacon due to halal restrictions, so I make them with smoked duck. As smoked duck doesn’t work that well with cream, I make a reduction of duck jus with fresh herbs. We take the Kniddelen, pan fry them slightly crispy, toss them with the jus, then garnish with smoked duck. It’s so hearty, but also light and delicate. It’s very nice.

How will you source ingredients?

We will have to source most of them in Dubai, due to issues with the import regulations [and] halal certification…

We don’t have many Luxembourgish products, but we still try to present Luxembourgish products and food as much as we can.

Are there any particular pavilions in Dubai where you’re keen to try the food?

I’m actually not sure how many pavilions have food, but I definitely hope to visit all of them. I’m most interested in the pavilion of the Philippines, as my partner is from there. www.ehtl.lu

OCTOBER 2021 INTERNATIONAL

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Retrospective

Luxembourg at the World Expo Luxembourg has a long history of participating in various forms at World Expositions.

Words DUNCAN ROBERTS

1

Luxembourg’s return to the World Expo scene saw the country build a glass and steel cube designed by architects Paul Fritsch and Bohdan Paczowski. 41.8m visitors attended this expo, which was spread over 215ha2 and open for 176 days, closing on 12 October, the 500th anniversary of the “discovery” of America by Christopher Columbus--the expo’s motto was “The Age of Discoveries”.

Like many others, Luxembourg’s pavilion was demolished post-expo.

1992: Seville

2

1998: Lisbon

Like Seville before it, the specia­ lised expo (not an official World Expo) in Lisbon commemorated the quincentenary of a great explorer’s discovery--Vasco de Gama’s arrival in India in 1498.

The seafaring theme was em­ phasised by the “The oceans, a heritage for the future” label.

Luxembourg’s pavilion, by architect Jim Clemes, paid tribute to it with a design incorporating a sail, the bow of a ship and cargo containers.

3 4

2010: Shanghai

Luxembourg’s most recent par­ ti­cipation at a World Expo was probably its most successful.

The pavilion at Shanghai, an ico­nic François Valentiny design, not only drew around 7.2m visitors (around 10% of total visitor numbers), but it also created a revenue of €5.8m for the Luxembourg for Business initiative. One of the main attractions was the exhibition of the Golden Lady statue, which usually sits atop the Monument of Remembrance in the heart of Luxembourg City. The pavilion was later used as a design school and a virtual reality lab.

2000: Hanover The much-maligned 2000 expo in Hanover (which attracted just over half of its expected 40m visitors and made a loss of some $600m) saw the grand duchy showcase its space sector. Rather than a pavilion, Luxembourg had a stand inside the famous Hanover fair sponsored

by SES and titled “Luxembourg connects people – Planet Astra”.

The stand, which cost 200m Luxembourg francs (€4.96m), was designed by architect Christian Bauer and, over the five months of the expo, drew in around 5% of total visitor numbers to the expo.

Stas Knop/Shutterstock, Isa Fernandez Fernandez/Shutterstock, Lukas Roth, Schu He

The grand duchy has had pavilions at three of the five World Expos staged since 1992 and was also present at the specialised expo in Lisbon in 1998. But prior to 1992 in Seville, Luxembourg had not had a presence since the one held in Seattle in 1962, when it was part of a collective show put on by the European Economic Community.

Before WWII, however, Luxembourg regularly used World’s Fairs, as they were then known, to showcase industry and agriculture, in particular its steel companies, wine growing and renowned rose cultivating.

Indeed, according to the government, Luxembourg has participated in World Expos “whenever the theme corresponded to its DNA.” Six representatives from Luxembourg were at the very first World’s Fair--the Great Exhibition in the specially built Crystal Palace in London in 1851. A great many of the subsequent World Expos took place in Paris or in cities in Belgium, which were handily placed for Luxembourg exhibitors.

It first had its own pavilion at the Paris expo of 1900.

But the grand duchy’s industrialists, farmers and artists and tourist agents also travelled further afield to expos in the United States bet­ween 1876 and 1939, including at the 1933-34 Chicago event where, for the first time, Luxembourg’s financial centre was repre­sented.

Photos

OCTOBER 2021 INTERNATIONAL

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E XPO 2020 DU B AI SIX TRADE MISSIONS AND MUCH MORE

17-22 OCT. 2021 ICT MISSION

23 JAN. 2022 LUXEMBOURG DAY

24-30 OCT. 2021 SPACE MISSION

23-25 JAN. 2022 MATCHMAKING EVENT

31 OCT.–6 NOV. 2021 WEEK «MADE IN LUXEMBOURG»

24-27 JAN. 2022 HEALTHTECH MISSION

17-20 JAN. 2022 SUSTAINABILITY MISSION

13-17 FEB. 2022 FOOD AND BEVERAGE MISSION

R E GIST E R N OW WWW.CC2 02 0.LU

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Ristretto #WhyDubai

ICONIC PROJECTS

“The Middle East is an important market for the steel solutions we produce in Luxembourg. Heavy beams and sheet piles are integrated into iconic projects there, including the Burj Khalifa.”

Managing director and vice-chairman of ArcelorMittal Luxembourg Roland Bastian on how the Expo 2020 Dubai is another opportunity to showcase its innovative know-how.

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NEW COLLECTION

“We’ll launch a capsule collection, targeted to women in the UAE, and have a pop-up shop there, after exhibiting...”

Fanny Bervard, Romantico Romantico Studios founder, on representing the made in Luxembourg jewellery brand at the Luxembourg pavilion in November.

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SPACE OPPORTUNITIES

“The UAE is a space-emerging country. Its government is investing a lot in pushing their space programme, subcontracting a lot of expertise to foreign entities.”

Redwire Europe designs and produces robotics arms for space applications.

General manager Jaroslaw Jaworski sees the UAE as a country of interest and opportunity.

4

GAME-CHANGING

Vanessa Engel, head of non-European private banking clients at Banque Internationale à Luxembourg (BIL), on why she is looking forward to a trade mission there.

ArcelorMittal Luxembourg, Romain Gamba, Redwire Europe, SolarCleano, BIL

“We’ll announce new solutions dedicated to very large plants deployed in desert area, aiming [to] becom[e] a real game changer...”

Selected by NATALIE A. GERHARDSTEIN

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OCTOBER 2021 INTERNATIONAL

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SolarCleano CEO Christophe Timmermans on how Expo 2020 Dubai is part of the strategy to enlarge the company’s scope, tackling global challenges with robotics.

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NETWORKING

“It provides a great opportunity to strengthen our links with local business partners and to meet clients and prospects.”

Shareholders’ rights in light of corporate interests with Pierre-Alexandre Degehet, Partner in the Corporate and M&A department (BSP)

W E D N E S DAY

29 SEPTEMBER AGENDA 08:15 Welcome 08:30 Keynote 09:15 Breakfast 09:30 End of the event

VENUE

Join us to hear from Pierre-Alexandre Degehet, Partner in the Corporate and M&A department as he addresses the following questions “What are the main shareholders’ rights? What is the corporate interest? How to balance shareholders’ rights with an efficient corporate governance?”

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Forecast

What’s on your 2022 agenda?

Delano caught up with three Luxembourg business leaders to get their perspectives on hot topics heading into next year.

Words NATALIE A. GERHARDSTEIN

JULIE BECKER CEO Luxembourg Stock Exchange (LuxSE)

NASIR ZUBAIRI CEO Luxembourg House of Financial Technology (Lhoft) For Lhoft, digitalisation was only accelerated by the health crisis, as the initiative created its own app and widened its own online offerings. But a “critical” trend Zubairi anticipates for 2022 is the quickly growing interest in crypto asset investing and digital assets.

“Bitcoin and Ethereum are now the most actively traded assets in the US market, [trading] more than Tesla, Apple or Google,” he explains. Despite this, “Luxembourg still does not have a single crypto fund registered in our jurisdiction, nor do we have any service providers that could service a crypto asset fund. We’re seeing very clear and large-scale demand coming, more requests to set up these kinds of vehicles… I think this will determine and have huge repercussions in waves for the future financial services as a whole, particularly asset management, the core sector in Luxembourg.”

“Finance needs to be a part of the solution to our global challenges and support the real economy.”

“2021 has finally brought important clarifications and thus comforted concerned data exporters.”

GARY CYWIE Partner Elvinger Hoss Prussen Data transfer, protection and AI are hot topics Cywie predicts for the year ahead. “In 2022, data controllers and data processors will have gained some more clarity and legal certainty on the transfers of personal data from the EU to third countries outside the European economic area,” he explains.

Strides have been made to clarify international data transfers. He also anticipates a stricter agenda by the National Data Protection Commission (CNPD) on enforcement of the GDPR, citing its 2021 fine on Amazon to the tune of €746m; he expects further fines will follow. Finally, the EU’s AI regulation proposal will have a worldwide impact, as “an important benchmark setter of the EU for a global ethical AI”, even if some have criticised it “as a tool to hinder the development of AI [and] thus situate to downgrade the EU as a competitor next to China, the US or the UAE”.

Mike Zenari, LuxSE, Elvinger Hoss Prussen

“We’ll [be] looking at digitalisation in the context of Luxembourg’s future competitiveness.”

For Becker, the three main pillars for the year ahead will be digitalisation, data and sustainability. “We are in the process of moving our entire IT infrastructure to the cloud and are the first financial institution of a certain size to do so,” which, she adds, allows LuxSE to better respond to customers’ needs.

Earlier this year, LuxSE and London-­ based fintech Origin completed the first fully digital listing by a Luxembourgish bank. Data is increasingly important, and new services were developed around ESG and the LGX data hub, which, Becker says, “allows the investor to make informed investment decisions and to better understand non-financial aspects of investments”. ESG data will be the next target of policymaking, and sustainability is already at the core of their mission.

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OCTOBER 2021 INTERNATIONAL

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