ukti gulf high growth uk tour (glasgow)
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Presentation slides from the UKTI Gulf High Growth UK Tour event in Glasgow on 9 June 2014.TRANSCRIPT
Microsoft PowerPoint - @Final presentation Gulf tour Glasgow
UKTIGULF HIGH GROWTH UK TOUR
GLASGOW
www.sdi.co.uk
9-13 JUNE 2014GLASGOWBELFASTDURHAM MANCHESTER LONDON
Keynote Speech
Ian Gibbons MBE
Gulf High Growth UK Tour 2014
Ian Gibbons MBE HM Deputy Consul General &
Director UK Trade & Investment Dubai
UKTIs mission Support UK companies to grow their
business through international trade; connect UK business to the worlds top
commercial opportunities;
attract high quality inward investment to the UK; and
establish whole-of-government relationships with major wealth creators to increase exports and investment.
Routes to Market & SDI Support
Colin Crabbe
Gulf High Growth UK Tour 2014
Colin CrabbeInternational Senior Manager
High Growth Markets Desk Middle EastScottish Development International
Scottish Development International (SDI) is the specialist inward investment and trade arm of the Scottish GovernmentScottish Government
Single point of contact for all international business development needs
Raise the ambition of more Scottish businesses to think, compete and trade globally
Attract investment and talent
International trade
Eco
no
mic
Develop
ment
Attract investment and talent which builds on Scotlands globally competitive sectors
Increase the global competitiveness of the business environment in Scotland
Enhance Scotlands image globally
Foreign investment
Eco
no
mic
Develop
ment
About
BackgroundStarted in 1981Joint venture: Scottish Government Scottish Enterprise Highlands & Islands
EnterpriseEnterprise
People230 staff 23 overseas offices Industry specialists Local staff throughout
Scotland
Budget36m
Supporting Scottish companies in their global growth
Trade
Identify market opportunities and provide market intelligence
International strategy development
Inward Investment
Collaboration and risk reductionIdentify staff, training, property and
academiaPrepare businesses to do business
overseas
Identify business partners and finance support options
Facilitate connections and business relationships
Identify business partnersPotential financial assistance
Dedicated aftercare
Sectors
Financial & Business ServicesEnergy Oil & Gas
Creative Industries &Electronic Technologies Food and Drink
Tourism UniversitiesLife Sciences Other Growth Sectors Aerospace, Defence,
Marine Chemicals Construction Forest Industries Healthcare Textiles
Month EventsJanuary World Future Energy Summit Abu DhabiJanuary Arab Health - DubaiFebruary Gulf Foods - DubaiFebruary Gulf Foods - DubaiMay INDEX International Design Exhibition - DubaiJune UKTI High Growth Markets Tour - ScotlandSept Dubai FDI visit to Scotland - ScotlandOct Horizontal MissionOct GITEX Technology Week - DubaiNov ADIPEC Abu Dhabi International Petroleum Exhibition
Thank You
Gulf High Growth UK Tour 2014
Panel Discussion
Opportunities & Challenges in United Arab Emirates, Kingdom of Saudi
Arabia, Qatar, Oman and Kuwait
Gula Al Sharafi
Gulf High Growth UK Tour 2014
Senior Trade AdviserBritish Embassy, Kuwait
Why Kuwait? Kuwait is one of the richest countries in the Arabian Gulf region, enclosed by Saudi Arabia in
the south and Iraq in the north. It is the gateway into Southern Iraq which is an importantaccess point for UK companies
Kuwait sits on an estimated 9% of the world oil reserves, a high percentage of which areeasily extracted.
Second most free economy in the Middle east.
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Second most free economy in the Middle east.
Trade has doubled over the last 5 years. The UK exported 531 million of goods to Kuwait in2013. UK exports in the financial, legal and other service sectors are worth around 900m ayear.
Kuwait Vision for 2035 is to transform Kuwait into a world class Financial and CommercialCentre.
Kuwait has just embarked on an ambitious Development plan. UK companies are wellplaced to take advantage of opportunities in many sectors.
Opportunities across a wide number of sectors, including Infrastructure, Transportation,Energy, Training & Healthcare/Life Sciences, Retail and Finance.
Sam Oliver
Gulf High Growth UK Tour 2014
Trade & Investment OfficerUK Trade & Investment,
British Embassy, Oman
Why Oman?
Relationship - UKs special bi-lateral relationship with Oman. High level collaborative engagement at ministerial level (to/from the UK)
UK is Omans No. 1 FDI Partner (3 billion)
Education - UK is the top 2 destination for Omani students and nearly 20
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Education - UK is the top 2 destination for Omani students and nearly 20 educational affiliations
Omans aspiration to become Gulfs logistics gateway
Opportunities across a wide number of sectors, including Infrastructure, Energy, Healthcare & Education & Training
2 HVOs Railway and Sultan Qaboos Medical City
Gareth OBrien
Gulf High Growth UK Tour 2014
Director of Trade & InvestmentBritish Embassy, Qatar
Why Qatar? Fastest growing economy in the world over last 7 years and highest GDP per capita in 2013
$220bn spend on infrastructure over next 8-10 years in lead up to Qatar 2022 World Cup and Qatar 2030 Vision
Third largest proven reserves of natural gas - 13% of world total Shell has largest single investment in Qatar - GTL plant at Ras Laffan ($21bn) - their largest
investment globally
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investment globally Qatar is UKs third largest export market in the Arab World, around 2bn. UK export of goods
up 67% in first quarter of 2014 Large sovereign wealth funds ($200bn) - with investments of 30bn in UK and growing Opportunities across a wide number of sectors including Infrastructure, Healthcare,
Education & Training, Security, Transport and Retail
Four HVOs: World Cup, Rail, Education & Food Security A lot of high level interest - 24 ministerial level visits in financial year 2013/14 Home to 20,000 UK nationals up from 1,450 in 1995
Mohammed Shokat
Gulf High Growth UK Tour 2014
Consul General,British Consulate-General, Jeddah
Why Saudi Arabia?
Saudi economy is the largest in the region. UK exports in goods and services worth over 7bn. UK second largest cumulative
investor with over 200 JVs estimated at 11.5bn Vast programme to upgrade human and physical infrastructure, with 2014 Budgeted
spending at $228bn Key sectors for Govt spending: education, health, transportation, water all are being
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Key sectors for Govt spending: education, health, transportation, water all are being targeted by UKTI as High Value Opportunities
In last 12 months, UKTI have helped UK companies achieve a total of just over 1bn within the HVOs
Fastest growing sectors in 2013 were the construction (8.1%), transport and communication (7.2%), as well as the retail sector (6.1%).
Rob Kelly
Gulf High Growth UK Tour 2014
Deputy Head of UKTI Abu DhabiUAE
Why UAE? UKs 12th largest trading partner globally with value of bilateral trade in goods and
services estimated at around 12 billion for 2013-14 UAE is the Logistical Hub of the Middle East. Dubai has Jebel Ali Port & Emirates. Abu
Dhabi has Etihad & KIZAD. In addition, 36 Free Zones in the UAE make the region one of the most attractive global entrepots
Home to in excess of120,000 UK Nationals, approximately 5,000 UK companies/subsidiaries 1,000,000 UK visitors each year
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companies/subsidiaries 1,000,000 UK visitors each year UKTI provided assistance to approximately 2,000 UK companies considering exporting
to the UAE in 2013-14 Opportunities across a wide number of sectors, including Infrastructure, Energy,
Education & Training & Healthcare/Life Sciences
Case study Sharing experiences
Gulf High Growth UK Tour 2014
Roddy Hammond,Worldteachers Recruitment
Coffee Break&
Networking opportunities
Gulf High Growth UK Tour 2014
Networking opportunitiesSign up for one to one meetings at the
registration desk first come first served basis
Gulf High Growth UK Tour 2014
Panel Discussion
Doing Business and Setting up in the Doing Business and Setting up in the UAE, KSA, Qatar, Oman and Kuwait
Panelists:HSBC / KPMG / Pinsent Masons / British Offset
Gulf High Growth UK Tour 2014
Finance Considerations
Carlos Guallart,Export Financial Adviser,
UK Export Finance
UK Export Finance - Brief History
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Who we are:UK Export Finance is the operating frame of the Export Credits Guarantee
Department, which is the UKs Export Credit Agency
Its statutory purpose is to support exports and investments made overseas
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UK Export Credit Agency established in 1919
We complement, we dont compete
We support exporters of all sizes and sectors
Trade finance and Insurance Solutions Group for smaller exporters and
medium size companies
What we do Provide assistance to exporters on trade finance and credit insurance
transactions whether in the private market or through UKEF products and
services;
Provide trade credit insurance to exporters against the risk of non-payment for
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amounts owed under export contracts;
Provide guarantees to banks to support working capital financing;
Provide guarantees to bank to issue contract bonds on behalf of exporters;
Provide guarantees to banks and issuers in the debt capital markets in respect
of medium/long term loans to overseas buyers who purchase goods and
services from UK exporters;
Lending directly to overseas buyers who purchase goods
What if I need to provide a bond to the overseas buyer?
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buyer?
Bond Support Scheme
Bond Support SchemeWhen you sign an export contract with an overseas buyer, your customer may
ask you to provide a bond from your bank.
There are several types of bonds:
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Advance payment bond Performance bond Warranty bond Bid bond
Your bank can help you by issuing the bond on your behalf to the overseas buyer
Banks often ask exporters to provide cash to issue the bond and cover the risk =
Bond Support Scheme (cont.)However we have to consider two issues:
34
=
Leave small companies without the working capital they need
Banks will limit the total value of bonds theyll issue for a company=
You might exceed this limit if you win several export contracts and they all require bonds
Bond Support Scheme (cont.)How can UKEF help?
UKEF can issue a partial guarantee to your bank =
Share the risk with your bankEnables the bank to issue the bond/s without requiring as much of your cash
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UKEF up to
80%
Your bank
20%
Enables the bank to issue the bond/s without requiring as much of your cash No minimum maximum value / term
Improves your working capital
Bond
How it works? (e.g. 1M Export Contract)
International BuyerUK companyExport Contract
30% upfront payment
Bond Support Scheme (cont.)
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30% Advance payment bond
20% Performance Bond
10% Warranty Bond
Your Bank 300K
200K
100K
Bank will ask the exporter for cash before issuing the bond
300K 200K 100K
UKEFCould
guarantee up to 80% of the
value of the bond 4060K 20K 120K
600K++ +
+
=
=
We provide government guarantees to participating banks who issuebonds on behalf of UK exporters. (e.g. performance, warranty, bidbonds)
Specific contract Support extends to all bonds related to an export contract (e.g.
Bond Support Scheme (cont.)
performance, warranty, advance payment, bid bonds) Covering up to 80% of the bond value
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Eligibility UK based exporter 20% Minimum UK content
Benefits
The bank is able to issue the bond
Sharing the risk with your bank enables it to issue more bonds on your
Bond Support Scheme (cont.)
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Sharing the risk with your bank enables it to issue more bonds on yourbehalf or to issue a bond without requiring as much of your cash orcollateral
No minimum or maximum contract values or duration
Improves your working capital
Case Study / J&C Joel
http://vimeo.com/63897556
Bond Support Scheme (cont.)
39
http://vimeo.com/63897556
What if I need export working capital?
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What if I need export working capital?
Export Working Capital Scheme
Export Working Capital Scheme (cont.)How it works?
International BuyerUK companyExport Contract
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UKEFCould guarantee up to 80% of the approved
facility 75% of the export contract
Not enough security
Contract is too big
Financial situation
Your Bank
UKEFShares the risk with the bank =
Enables exporters access to finance
Export Working Capital Scheme (cont.)How it works?
We provide a partial guarantee to the bank in order to increase its capacity to lend you the money you
need to deliver your export contract.
UKEF up to
80%
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need to deliver your export contract. We can guarantee up to 80% of the approved facility.
The maximum value of the finance must be no moreThan 75% of the export contracts value
Export contract value
Approved facility
80%
UKEF up to
75%
Export Working Capital Scheme (cont.) We provide government guarantees to participating banks providing
trade finance loan facilities to UK exporters to fund export contracts Specific contract Covering up to 80% of the loan value
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Eligibility: UK based exporter 20% Minimum UK content Finance up to 75% of the contract value
Case Study / JDR Cable Systems Ltd
http://vimeo.com/66330861
Export Working Capital Scheme (cont.)
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http://vimeo.com/66330861
How do I protect myself against not being paid by the overseas buyer?
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by the overseas buyer?
Export Insurance Policy
Export Insurance
We insure exporters against the risk of not getting paid by overseasbuyers or of not being able to perform a contract due to specific events(e.g. war, political or economic events)
Specific contract
How can UKEF help?
Specific contract No minimum contract / Premium starts from 250 All sectors, up to 95% cover Not for EU / Rich OECD markets below 2 year risk horizon
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Eligibility: UK based exporter / Customer based overseas Exporter must have been refused to get insurance from private sector 20% Minimum UK content
Trade Finance and Insurance Solutions
Bank based schemes / No cost to Exporter
No security required by UKEF
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No security required by UKEF
Formal application through bank
Insurance policy via insurance broker or direct
What if I need Export Finance Advice?
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What if I need Export Finance Advice?
Free consultation with an Export Finance Adviser
Export Finance Advice
Assist exporters, banks, insurance brokers and intermediaries withadvice and guidance on UKEF products and services
Assist exporters with applications for UKEF support and liaise with
How can UKEF help?
Assist exporters with applications for UKEF support and liaise withbanks and insurance brokers as needed
Provide guidance to exporters in accessing private market trade andcredit insurance, and provide suitable introductions
Provide free assistance and guidance
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Export Finance Advice (cont.)
50
Carlos Guallart, Export Finance Adviser, ScotlandTel: 07580 742533 Email: [email protected]
TAKE YOUR BUSINESS FURTHER.FURTHER.
Gulf High Growth UK Tour 2014
Closing Remarks
Ian Gibbons MBEHM Deputy Consul General &
Director UK Trade & Investment Dubai
Networking Lunchfollowed by 1-2-1 sessions
Gulf High Growth UK Tour
followed by 1-2-1 sessionsSign up for one to one meetings at the
registration desk
first come first served basis