Middle East North

Africa – Open for

Business

GCC Opportunities Abound

Agenda Connect with the GCC - MENA is open for business

Trade, Investment and Education

Food Security and Agriculture

Infrastructure – Rail Projects in the Gulf

MENA is open for business;

MENA in 2014 is the Gulf Cooperation Council (GCC)

and Morocco;

A unique 2014-2022 window of opportunity has opened;

and

Australia is well regarded and networked in MENA.

MENA is open for business

GCC – opportunities abound

MENA Network

GCC – opportunities abound

Austrade Concentration:

GCC countries – UAE, KSA,

Oman, Qatar, Kuwait, Bahrain

Morocco

MENA Region Population – about 381 million people, 6% of the total world population

MENA accounts for 70% of the world’s oil reserves & 46% of natural gas resources

Image Source: http://arabiangazette.com/mena-witness-tech-boom-coming-years/

The region is being propelled by critical drivers and

market triggers;

They are committed to delivering projects; and

They have the capacity to pay through large surpluses

and state funding.

Critical societal and environmental drivers

GCC – opportunities abound

Need to position increasingly urbanised societies for a post-oil world

through development of the non-oil sector, including services,

construction and mining and up-skilling through education and

training;

Training the local the labour force and creating jobs;

Water, energy and food security; and

Stabilising the region and demonstrate political and cultural strength

in the region and globally.

Key economic and social drivers in the GCC

GCC – opportunities abound

"Our country is facing a threat with the continuation of its near-complete reliance on oil,

especially as 92% of the budget for this year depends on oil. It is necessary to diversify

sources of revenue, establish a clear vision for that and start implementing it

immediately." – Prince Alwaleed Bin Talal, Saudi billionaire and founder of

Kingdom Holding Company

Concentration of economic growth (4.5%) and stability in GCC countries; Saudi, UAE, Qatar, Oman and Kuwait;

GCC represents 58% of MENA GDP and 81% of MENA exports;

Over 30,000 Australians live in the region;

There are 400 Australia companies present; and

We have close to 16,000 GCC students in Australia.

GCC for Australia

GCC – opportunities abound

Tried and True

GCC – opportunities abound

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In trade, focus on sectors critical to the GCC achieving its goals where Australia has experience and capability;

With investment, reinforce connections between major investors and SWF‟s in the GCC and Australia;

In education to consolidate relationships with key government entities in the GCC, to promote Australia as a study destination and to provide quality vocational education and training, addressing demand for skills in market;

Support and coordinate a whole of Team Australia approach to the market; and

Build understanding and greater awareness between Australia and the GCC through the Australia Unlimited 2014 program.

Austrade’s strategy to gain a greater market

share

GCC – opportunities abound

Australian strengths - GCC requirements

GCC – opportunities abound

Agribusiness and food

Ensuring a sustainable food supply – e.g. meat supply in Saudi Arabia;

Developing skills and technologies around agriculture production.

Energy efficiency and sustainability

Green building technologies and expertise;

Urban water management, desalination and waste water.

Infrastructure

Rail freight corridor across the GCC to connect the Indian Ocean directly with the GCC and Europe;

Social infrastructure.

Expo 2020 and FIFA 2022

Investment

Grow the pipeline of GCC financial investors and use senior Government representation to key investors

Education

Scholarships (i.e. King Abdullah Scholarship Program);

Institution to Institution partnerships and collaboration;

Vocational training in-market;

ELICOS and tertiary education in-market and in Australia.

Opportunities in the Market

GCC – opportunities abound

New Dubai air bridge – 24 hr access to 1bn new

customers for Australian Producers

GCC – opportunities abound

Emirates and Qantas

98 flights between Australia and Dubai every week

55 Australian destinations with nearly 5,000 flights per week

Virgin Australia and Etihad Airways

28 flights between Australia and Abu Dhabi every week

48 Australian and New Zealand destinations added to Etihad‟s

global network

So what does this mean for Australian businesses?

Growth in airfreight capacity changes Australia‟s export capability

to a region with a high reliance on imported quality food and

beverage

Increased regional connectivity for businesses and students

Global and regional gateway The Dubai International Airport serves more than 145 airlines flying to

over 260 destinations across six continents

GCC – opportunities abound

Host Cities:

April 13, 2014 – Dubai (UAE)

April 14, 2014 – Abu Dhabi (UAE)

April 16, 2014 – Riyadh (Saudi

Arabia)

Supporting Events in:

Muscat (Oman),

Kuwait City (Kuwait)

Rabat (Morocco)

Australia Unlimited 2014

GCC – opportunities abound

Work with us to coordinate a team Australia approach

Join us in 2014 to promote Australian capabilities across

sectors

Participate in Australia Unlimited 2014

Call to action

GCC – opportunities abound

Bribery and Corruption Act

Bribery is a crime. Crimeprevention.gov.au

Australia’s anti-bribery laws apply overseas and

Austrade will not provide business related services to any

party who breaches the law

Business must understand the risks and that Austrade

will report credible evidence of bribery.

If in any doubt, seek independent legal advice.

GCC – opportunities abound

Austrade Support

GCC – opportunities abound

Austrade… Assists clients with introductions and navigating the complex business environment

Experienced staffs across the Gulf and Morocco provide strong in-market support to Australian firms

Has strong relationships and networks with Government and business – linking Australian companies with key decision makers across the region.

Well positioned to influence investment decisions and pitch Australia as an attractive investment destination to domestic Sovereign Wealth Funds

Identifies market openings for new entrants and provides insights on market barriers to Australian suppliers.

Works with the business community and influencers to highlight Australian capability and investment potential

Provides a balanced informed assessment of risks and rewards associated with business insights and opportunities

Well established links to in-market allies, industry associations, service providers, local government and other Australian agencies

Food Security &

Agribusiness

GCC – opportunities abound

Agenda A food secure future

Look at global food supply

Market insights

The demographic dividend: A growing GCC population points

towards increased dependence on imported food staples.

The region’s dependence on desalinated water means that

meeting more of its food needs through domestic production is not

an option in the long term.

In the aftermath of the food price crisis, the main alternative

strategies of ensuring food imports is by controlling the source of

supply and buying or long-term leasing land in a range of countries

to use for export-oriented farming.

Source: „The GCC In 2020: Resources for the Future‟

Drivers of a Food Secure Future

GCC – opportunities abound

GCC food security rests on international trade.

Geopolitical issues may sharpen food import risks.

Food availability and accessibility as a potential area of civil conflict

in the region.

Strategic investment in port and rail infrastructure, as well as food

storage facilities, may dampen these risks.

Land based investments in food-insecure countries.

Source: „Chatham House – Edible Oil: Food Security in the Gulf‟

Key Geopolitical Issues

GCC – opportunities abound

16% of GCC members merchandise imports

attributed to food* …

Source: World Bank database 2012 – based on 2011 data or earliest data available by country (2009, 2010)

*Food comprises the commodities in SITC sections 0 (food and live animals), 1 (beverages and tobacco), and 4 (animal and vegetable oils

and fats) and SITC division 22 (oil seeds, oil nuts, and oil kernels). GCC – opportunities abound

Market Focus: Saudi Arabia

Food and Beverage/Agriculture

– Short term opportunities in red meat

– Longer term sustainability issues with the dairy sector – change will be required.

– Animal Feed and Fodder .

– Rapidly expanding retail sector combined with „Western‟ diets and food preferences.

– Huge potential and interest in sustainable aquaculture practices

Food Security (Investment)

– Grains and red meat

Vocational Education and Training in Food and Agriculture

GCC – opportunities abound

Market focus: UAE

Food and Beverage

– Dubai is the logistic hub for the Middle East.

– Growing demand in chilled lamb, organic and wagyu beef;

– Market competition is fierce from other supply countries.

– Expansion in the hospitality sector as a result of increasing tourists numbers.

Agriculture

– Governance, policy and technology transfer..

– A regional fund dedicated to aquaculture projects.

Food Security (Investment)

– Domestic farming not sustainable – is considerable strain on already scarce land and water

resources

– Africa and Asian emerging markets are still being considered

GCC – opportunities abound

Market Focus: Oman

Aquaculture.

Indian Ocean Rim Association.

Foodstuffs are exempted from customs duty.

Rising consumer spending on food and agriculture

GCC – opportunities abound

Imports of Commodities and primary agricultural goods.

Morocco‟s « Green Plan »: 10-year Government program.

At the doorstep of the EU Market.

Market Focus: Morocco

GCC – opportunities abound

A final word…

Food and Beverage/Agriculture

– Commodity market will keep tracking – meat, dairy, grain.

– Professional services is a growing opportunity in commodity sectors.

– Fodder and feedlot solutions.

– Aquaculture is an emerging opportunity to solve protein demand.

Food Security (Investment)

– Encourage investment in the supply chain – particularly in grain and red meat

where areas of interest in GCC meet areas of need in Australia.

Vocational Education and Training in Food and Agriculture

– In areas of particular capability – human capital development, food and

hospitality, tourism and manufacturing.

GCC – opportunities abound

Austrade support

Events:

– Food and Beverage

• Gulfood (February 2014) – 150+ Australian companies attending – largest

food show in the Middle East and Africa

• SIAL Middle East (November 2014)

• Autumn shows - Speciality Food Festival / SEAFEX / Sweets Middle East /

World of Perishables (November 2014).

– Agribusiness

• Global Innovation for Agriculture Forum (February 2014)

• AGRA Middle East (March 2014)

• Food and Agriculture as part of Australia Unlimited 2014

GCC – opportunities abound

Rail Projects in

the Gulf

Saïd Metwalli

Trade Commissioner

Abu Dhabi & Qatar

Some GCC numbers for scale…

Fastest growing Rail region in the world - US$100Bn+ budget

Over 10,000km of Rail in 6yrs

108,000 new rail staff by the end of the decade

UAE:

– Etihad Rail moved 60 million cubic meters of earth for Stage 1

– Dubai metro - longest driverless metro with 350,000 passengers/day in 2012

Saudi Arabia:

– 2 million Hajj pilgrims in 2013

– Mecca Metro handles 500,000 pilgrims every 6-8 hours

Qatar:

– Largest metro in history to be built in one go (100km underground)

– 22 tunnel boring machines to arrive in 2014

GCC – opportunities abound

Key Drivers

Nation building and legacy – funded by budget surpluses

Population growth: locals, expats, tourists and pilgrims

Efficiency and cost reduction

Diversification of economies, industrialisation & mining

Geopolitical – Bypassing the Straits of Hormuz

Generate significant number of jobs for nationals

Catalyst for a Common Market & Custom Union

Promote social integration, economic development & growth

GCC – opportunities abound

GCC – opportunities abound

UAE Freight Route Network

GCC – opportunities abound

KSA Rail Map

GCC – opportunities abound

Challenges

GCC – opportunities abound

Challenges

Harsh environment: Sand, shifting sand dunes & heat

Tunnelling difficulties for CBD Metro projects

Traffic management in urban areas under construction

GCC coordination – Political and technical

Border crossing – Customs & Immigration

Vendor and resource competition – pressure on prices & quality

Shortage of skilled rail labour force willing to work in the region

Developing local expertise in the Rail Industry (GCC-ization)

Passenger uptake rate & forecasting demand

Future linking of GCC to Europe via Turkey (Iraq/Syria?)

GCC – opportunities abound

Opportunities across the value chain

Design consulting, engineering and construction services

Track construction, maintenance & specialized equipment

All forms of rolling stock and their components

Signaling, communications, and electrification solutions

Component repair and workshop service

Railway operation and maintenance

Training and education

GCC – opportunities abound

Australian Rail successes in the GCC

Laing O’Rourke (via Barclay Mowlem) built a section of the North-South line in Saudi Arabia in 2011

John Holland and Leighton (HLG) in a consortium with Siemens was recently awarded the People Mover project in Education City, Qatar.

GHD sub-contracted & Martinus Rail supplying turnouts for above

Institute of Railway Technology‟s work on the Dubai Metro

Track IQ providing acoustic bearing monitoring and wheel impact detection equipment to Etihad Rail

International Transport Training & Development (ITTD) has already delivered training and consulting services in the UAE

Rail Skills Australasia (RSA) awarded training contract for Etihad Rail for the delivery of intro/advanced rail programs to staff

Australia can add value and there are more successes to come…

GCC – opportunities abound

GCC Green

Building & Water

Management

Green Building Opportunity

GCC Opportunities Abound

GCC countries are feeling the effect of rising energy prices and water scarcity.

GCC Governments are driving policies of sustainable development and energy efficiency.

GCC green building accreditation systems include LEED, Estidama, BREAM, Pearl, GSAS, QSAS.

Major high profile international events with a sustainable theme include: Dubai Expo 2020 & FIFA World Cup 2022.

Notion that developers “pay our architects and engineers for what they save not what they spend” is still evolving however progress is rapid.

Image Sources: www.uvmbored.com ; http://www.dstyleinc.com ; http://workplace-2020.com/2020-workplace/sustainability/

Water Resource Management Opportunity

GCC countries continue to be faced with water scarcity similar to Australia therefore they are keen to understand Australia's experience and technology in water resource management.

Services and products that result in more efficient use of water resources.

Services and solutions that reduce water leakage through better management of water utilities and potable water distribution.

Consulting services relating to aquifer recharge, storm water management and brine pollution from desalination plants

Water Grid for agriculture and power generation

Flood mitigation planning for urban areas

Water recycling management and policy

GCC Opportunities Abound Image Source: www.fooddrinkeurope.eu

January 2014

DEWA CEO visit to Australia

April 2014

Morocco Ministry of Housing Business

Delegation

13-14 April 2014 Urban Water Symposium

14-16 April 2014

WETEX

Austrade Managed Key Events

GCC Opportunities Abound

Leading regional water exhibition

Sponsored by DEWA

Australian Government Pavilion

Theme: Water conservation, protecting natural resources and sustainable development

500 exhibitors;

12,900 visitors from 28 countries

Visitor profiles: Senior government officials, CEOs, managing directors, general managers, investors, industry experts and researchers.

Key GCC Water Conference and Trade Event: Dubai

GCC Opportunities Abound

Call to action: • dubai@austrade.gov.au

• www.austrade.gov.au/MENA

• Like: Australia Unlimited MENA

• Add: Austrade MENA