dubai presentation

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Doing Business in Dubai’ Event with Government of Dubai, Department of Tourism and Commerce Marketing and Smart Exporter‘Doing Business in Dubai’ Event with Government of Dubai, Department of Tourism and Commerce Marketing and Smart Exporter‘Doing Business in Dubai’ Event with Government of Dubai, Department of Tourism and Commerce Marketing and Smart Exporter

Doing Business in DubaiWith

The Government of Dubai,

Department of Tourism and Commerce Marketing

and Smart Exporter

25th March 2014

www.sdi.co.uk

Fayha Sultan

Marketing Manager, Government of Dubai, Department of Tourism & Commerce Marketing

Alex Watson

Head of Corporate Services, Davidson & Co, Legal Consultants

GlobalScot

Miranda Clegg

Head of Export, Highland Spring Group

Wendy Edie

Managing Director, eCom Scotland

Kirsteen Higgins

Smart Exporter Operations Manager for Scottish Development International (SDI)

Colin Crabbe

International Senior Manager, High Growth Markets Desk - Middle East, Scottish Development International

Please Welcome

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Today’s programme

09.00am Breakfast & Registration

09.30am Welcome from Colin Crabbe – Scottish Development International

09.40am Fayha Sultan– Opportunities in Dubai for Scottish companies

10.05am Miranda Clegg and Gemma Grierson from Highland Spring – experiences of doing business in Dubai

10.30am Wendy Edie from eCom Scotland - experiences of doing business in Dubai

10.55am Presentation from Alex Watson, Global Scot

11.30am Kirsteen Higgins at Smart Exporter

11.45am Panel discussion and Q&A

12.15pm Networking and Lunch

1.00pm Event ends

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Dubai wins World Expo 2020

Dubai's Expo 2020 plans in numbers

$7bn Expo 2020 financing costs

$23bn The impact of its successful bid

25 million Expected number of attendees

81,000 Number of new hotel rooms needed by 2020

chosen ahead of Ekaterinburg in Russia, Izmir in Turkey and Sao Paulo, Brazil

FAYHA SULTANMARKETING MANAGER - COMMERCE

AHLAN WA SAHLAN

AT A GLANCE

Moving forward

Investment

Laws

Investment Incentives

Economic Diversification

Economic Overview

FreeZones

WHO WE ARE

DTCM

The Government of Dubai, Department of Tourism and Commerce Marketing (DTCM) was established in

1997. The main responsibility of the department is the promotion of Dubai’s commerce and tourism

interests overseas.

DUBAI’S VISION

TO BECOME THE PREFERRED

INVESTMENT DESTINATION IN THE WORLD

H. H. Sheikh Mohammed Bin Rashed

Al Maktoum says:

“Most of people talk, we do things.”

ECONOMIC OVERVIEW

•Non-oil accounts for 96% of GDP

•Services sector 74%

•GDP grow 4.9% in 2013

www.definitelydubai.com

ADVANTAGES OF INVESTMENT

• Zero corporate & income tax

• Repatriation of capital

• Liberal business laws

• 5% customs duties on imported goods

• Social and Economic openness

• Safe Haven in the Regionwww.definitelydubai.com

ECONOMIC DIVERSIFICATION

Retail Tourism Infrastructure Trade

Finance Health Education ConstructionManufacturing

Connecting Minds Creating the Future

EXPO 2020

- Great opportunity for UK companies as there will be huge spending by the government and private

sector

- Will create 277 thousand jobs 40% in hospitality and 30% in construction

- HSBC estimates spending related to the expo could reach £11.4 billion

- Deutsche Bank estimates £27 billion in infrastructure projects will need to be developed in preparation for the event.

- Construction, financial, creative, education, health, tourism, retail, trade, entertainment

- Finances will be raised from mixed bond issues, bank borrowing, and cash raised from assets disposals and profits from Dubai Inc. businesses

PROJECTS IN THE PIPELINEAl Maktoum International Airport

Six runways to handle 160 million passengers Mohamed Bin Rashid City £9.3 billion

100 new hotels and a park larger than hyde ParkOpera House and Modern Art Museum

Cultural District galleries and design studiosAl Soufouh Tram

14.5 km to connect different points of the cityBlue Water Island 1.6 billion

World’s largest ferries wheel Business Bay Canal Project

Extension of water canals to the Arabian GulfCity of Arabia

Mall of Arabia, IMG World of Adventure, Wadi Walk, WaterfrontCulture Village

Museums, exhibition halls, hotels, traditional souks, theatresDubai Lifestyle City

Sports facilities for tennis and golfDubai Pearl

Retail, dining, entertainment, leisure Dubai Sustainable City

Eco Tourism, planetarium, grass amphitheatre The World

Three hundred islands in the shape of the world

Free Zone Outside Free Zone

Simple Application

ProcedurePartnership

with UAE Sponsor

STARTING A COMPANY

STARTING A COMPANY IN THE FREE ZONECITIES AND CLUSTERS OF LIKE MINDED

Housing facilities

100% capital repatriation

No customs duty

Set up a branch on mainland

Simple setting up procedure

One stop shop

No income or corporate tax tax

100% foreign ownership and

control

Administrative support

LIFE STYLE (www.definitelydubai.com)

•http://www.thisisdubai.ae/

•Cosmopolitan lifestyle

•Sophisticated infrastructure

•Ideal location

•Optimistic, dynamic

•Climate

•Modern and comfortable

•International schools and universities

•International cuisine and shopping

•Safety

•Many activities for the kids, Kidzania, Sega World, Aquaventure,

•Sporting capital of the Middle East

•Art & culture

Dolphin Bay

4x4 Desert Safari

Ski Dubai

Sand Skiing

•Understand Islamic Culture

•Can I get a drink?•Build a relationship

•Get used to drinking coffee and tea!•Make regular visits •Draft short reports

•Give tangible evidence•Prioritise phoning to writing

•Gain their trust•Accept late and last minute

invitations•Remember Fridays and Ramadan

CULTURAL TIPS

MOVING FORWARD

Research

•Attend seminars

•Attend exhibitions

•Contact Chambers, trade organisations, UKTI…

•Contact Dubai Foreign Direct Investment

•Talk to law firms and relocations companies

www.definitelydubai.com

Contact Us

Government of Dubai Department of Tourism & Commerce Marketing (DTCM)4th Floor, Nuffield House41- 46 Piccadilly

London, W1J 0DSTel: 020 7321 6110Fax: 020 7321 6111Email:[email protected]

Web: ww.definitelydubai.com

Dubai Update website & monthly newsletter

http://www.dubaiupdateuk.com/

HIGHLAND SPRING GROUP

Miranda Clegg, Head of Export

DOING BUSINESS IN DUBAI

• We are the market leaders in bottled water in

the UK, No.1 brand since 2012(*)

• 20 years experience in the global bottled

water market

• We operate across 30 countries globally

• Highland Spring is the leading British Brand

in the Export market (**)

(*) SOURCE: ZENITH INTERNATIONAL, APRIL 2013 (**) ZENITH INTERNATIONAL, UK bottled water report 2012

Our Global Credentials

British Airways Exclusive Water Supplier

• On board and in airport lounges

• 31.8 billion passengers annually

• Lounges in 60 worldwide locations

• 233 planes

• 150 destinations

• More than 11 million litres per year

Our Group HistoryWe started bottling in 1979 and have exported throughout our history

0

50

100

150

200

250

300

350

400

450

500

Highland Spring Group Sales since 1988

HSG Litre

Sales in

millions

Greencore

Acquisition

Hydr8 & Hydr8 flavours

value water launch

Speyside

Glenlivet

Acquisition

Export is currently 2% of the business (over 10m litres)

We Are Industry Leaders

PIPELINEPIPELINE

•Our high quality assurance & standards to draw the water along our food grade stainless steel borehole from protected ground source to bottle ensures our water remains pure as can be

PRODUCTIONPRODUCTION

- Industry leading water usage factor 1.3Litres per Litre

- British retail consortium Global Standard – Food Grade A

- BRC/Institute of Packaging Global Standard – Packaging category – B

1.31.3

Two Key Brands in the Export Market

Highland SpringSpeyside Glenlivet

Highland Spring in the UAE

ME is 52% of the export volume, Kuwait, Bahrain, KSA, Qatar, Oman,

UAE

UAE is 9%+ of that ME volume

Our Importers in the UAE

• Highland Spring brand distributor

• Speyside Glenlivet brand distributor

• Franchise client – Almorooj/Alshaya (eg Starbucks)

• Franchise client – Jawad (Jamie’s Italian restaurant)

• British Airways

• Marks and Spencer (private label)

• His Excellency Al Tajir

+ Transhipping through Jebel Ali Port

Getting the Distributor Right…• Mainly traders not brand builders

• Little focus on marketing

• Strong customer loyalty

• Strong distributor/buyer relationships

• Changing distributor breaks the trust and damages relationships in market causing the brand to suffer

• If the distributor damages a client relationships it is “nearly impossible” to get them back …

• 84.5% of main workforce in private sector are Asian*

• Senior managers and buyers tend to be Arabs or typically

South African/English/Australian…

• Typically owners are Arab + an expatriate owner who run

the business

• Important to select the right regional manager /

distributor, who can interact at the right levels and be

taken seriously

* Emirates Hospital 2010 data on private sector

Employment Culture

Important to Understand…..

WASTAloosely translates into nepotism or clout or 'who you

know'. It refers to using one’s connections and/or

influence to get things done, including government

transactions

Financials

• Never had a problem with payments

• In fact, our current distributor had credit insurance limit increased x 6 this week

• Distributors expect lengthy payments terms to support the lengthy customer terms required

• Takes time to build the trust

Regulations• Our biggest challenge

• Recently changed with no clear notice

• Unclear process in terms of requirements and costs

• Changing process and timelines

• Specifications in Arabic, pre-audit papers in English & not clarifying the full requirements

• Compulsory onsite audit by Turkish auditors

• Necessary to have ISO 17025

• Costly and time consuming

SDI Support we used in UAE

• Enabled European funding towards our Regional Manager’s salary for one year the first time in market

• Scottish Pavilion at Gulfood Expo each year

• Scottish Receptions and networking events

• Contacts with local distributors/buyers and assistance in arranging meetings, helped to gain UK Embassy account

• Learning journey to the market and in store visits

• checked on our product in market

Summary

• Do your research

• Choose your distributor carefully

• Create a brand plan for your distributor

• Business relationships are often built through connections

• Be aware of changing regulations and customs requirements

• Consider how you can utilise social media

• Strong customer loyalty can be achieved

www.highlandspringgroup.com

www.highland-spring.com

www.speysideglenlivetwater.com

THANK YOU FOR YOUR ATTENTION

eCom Scotland

Leading the Way in

eLearning Solutions

Bespoke eLearningAward winning experts in creating customised eLearning using creative technologies.

Mobile LearningPublishing, managing and tracking mobile content, delivered onto multiple devices.

eAssessmentDelivering online assessments for formative, summative and adaptive testing.

E-Learning age shortlisted 2013 E-learning development company of the year

eNetEnterprise

eNetLearn

eNetAssess

A modern approach to skills management for building, managing and maintaining a high performance workforce.

A robust online portal where you can delivery, track, measure and evaluate your eLearning.

A tried and tested web-based assessment tool, testing skills and knowledge be it formative, summative or adaptive

TM

TM

TM

• Founder Member and current Board

Member of The eLearning Alliance

• Current Board Member of

The e-Assessment Association

• Towards Maturity Ambassador

Involvement in eLearning Groups

Accreditations

eCom Scotland are proud to be partnering DOOR Saudi Arabia

eCom Scotland hails Gitex 2013 a great success!

Burj Kalifa

ASTD MENA

eLearning makes the Gulf news

Thank you for listening

What is Dubai All About?

Alex Watson

GlobalScot

i UAE is UK’s largest Civil Export market in the Middle East

i UAE is 12th Largest export partner Globally

i Dubai largest market in Middle East.

i UK exported goods worth over £5.1 billion to Dubai in 2012 and GROWING

i 90% of trade conducted through Dubai and Northern Emirates.

i Minimum of 45% of imports are re-exported: Asia, Africa, GCC and Middle East.

i Gateway to a $150 billion market.

i Springboard into more challenging Markets.

TRADE

Al Maktoum (Ruling Family)

Al Futtaim, Al Naboodah, Al Ghurair, Al MajidAl Habtoor, Al Tayer, Al Gurg, Al Rostamani

Galadari, Lootah

HOW DUBAI WORKS

Ruling Family

Palm Island Projects, Healthcare City

The World, Dubailand, Dubai Creek Expansion

Meeras, City Walk, Meydan City,

Mohammed Bin Rashid City

Airport Expansions & New Airports

Over 100 New Hotels

Trump Golf

Business Bay

Yas Island

UAE MAJOR PROJECTS

High Value Opportunities for Scottish Businesses in airports, aerospace, railway, metro, infrastructure projects and professional services

MAJOR PROJECTS (Contd…)

UAE MAJOR PROJECTS

Not only will Dubai Expo 2020 be the first to be held in the Middle East, it will also be the closest the Expo has ever been to Africa and South Asia, truly

bringing to life the theme of “Connecting Minds, Creating the Future”

Scottish expertise in delivering such events is held in high regard globally, and given our close and historic links to the UAE, we stand in good stead to compete for at least AED 7.3 Billion of business planning, designing and

delivering the Dubai Expo 2020 site.

EXPO 2020

Don’t forget the growing Northern Emirates & Abu Dhabi

Niche opportunities for Scottish companies

Have a Middle East Strategy (and beyond?) not just UAE

Understand the wider pricing issues

Take legal advice with M.E knowledge

Research , research , research

KEY ISSUES

Direct Export - Agent/Distributor

Representative Office

Branch Office

Limited Liability

Joint Venture/Participation

Freezone or Sponsor/Partner?

DOING BUSINESS IN UAE

Direct Export - Agent/Distributor

No distinction between agent & distributor

Cultural aspects – research , research , research

Registered or Unregistered agent ?

Exclusivity can be via product line / specific service

Dubai and Abu Dhabi separate agencies ?

Agreement subject to UAE law – ICC possible ?

Ensure “getoutability” of contract


Representative Office

Branch Office

Sponsor generally needed – registration/formalities

Sponsors – no liability , investment , management

Fees are fairly established

Specialist UAE firms offer matching service

Termination may be difficult


Limited Liability Company - LLC

At least 51% to be held by UAE national/company

Initial share capital 150k dhs/300k dhs for Dubai – NOT necessary to deposit in the bank

Profit share may be disproportionate to shares

All or most share capital provided by foreign Investor

Vast majority of profits passed to foreign investor

Trust Documentation


Joint Venture/Participation

UAE Companies Law permits joint participation

2 or more partners agree to share profits/losses

Does not need to be formally registered

Establishment immediate

JP would use name/trade licence of local registered

Disadvantage – independent financing limited ?


Free Trade Zones

40+ FTZ’S – existing & proposed

No customs duties

No restrictions – profit transfer / capital repatriation

Exemption – corporate , withholding , inheritance taxes

No personal income tax or currency restrictions

BUT need local agent to trade in UAE


� Overseas Market Introduction Service � Market Visits

� Programme Arrangements � Exhibitions

� Company Information & Profiles � Major Project Data

� Market Summaries

But don’t forget others that can be helpful

� GlobalScot / SDI / Scottish Enterprise

� UKTI / British Business Group

�Arab British Chamber of Commerce

�UAE Chambers of Commerce

�Me!

HELP IS AVAILABLE

SUMMARY

iResearch , research , research

iUnderstand cultural issues

iDevelop a regional strategy

iMaintain personal contact

iPlan for the long term , not a quick fix

iDo not let the lack of a licence stop you from doing Business in the Middle East

iEnjoy the experience !!!

British Business Centres UAE

Key dates & progress

• May 2013 MOU signed with BBGs

• September 2013 Lord Green visit

• December 2013 CEO started

• March 2014 Lord Livingston visit; Dubai

launch

• October 2014 Abu Dhabi launch

Incubator premises at EBV

Incubator services

• Onshore licence

• 1 visa per company

• 12 months

• Facilitation, support & advice

• BBG membership & support

Sector focus

HOW CAN SMART EXPORTER HELP YOUR BUSINESS?

WHAT IS SMART EXPORTER?

• Smart Exporter is an international trade skillsprogramme designed to increase exporting skills and knowledge amongst Scottish businesses

• This initiative is delivered by Scottish Development International and funded by ESF

• Smart Exporter services are available on a free or subsided basis to businesses and individuals across Scotland

I need help identifying

an agent/distributor?

I’m new to

Exporting – where do I start?

Market Research support

I’m ready to export but I

don’t understand what export paperwork or licences I need?

I need help in

defining my Export Strategy

International Strategy Forum

International Strategy Workshop

Specialist Technical Support

HOW CAN SMART EXPORTER HELP YOUR BUSINESS?

We need an Export Expert to help implement our

International Strategy

International Business Manager

for Hire

Export Advisor –One to One support

Preparing to Export Programme

PREPARING COMPANIES FOR EXPORT

• SDI’s Preparing to Export Programme supports companies by helping them develop key skills in a range of business activities and equipping them with the knowledge to operate internationally.

• It is delivered at THREE levels: - Introductory - aimed at companies new to exporting, or individuals

- Intermediate – aimed at companies who are relatively inexperienced in international trade

- Advanced - for the more advanced exporter

• It is FREE to businesses across Scotland.

• It is delivered to between 6 – 10 companies by experienced International Trade Consultants

TECHNICAL SUPPORT – AREAS OF COVERAGE

•

Certificates of

Origin

76

Support for specific ‘technical’ issues i.e. issues / queries relating to documentation, delivery, certification, labelling, finance, customs, products & codes, supply chain logistics

Technical support via:

One to One Support - email, phone & face to face – up to One day’s support. Via [email protected]

Email: [email protected]

Telephone: 0800 0191 953

Website: http://www.smartexporter.co.uk

Events: http://www.scottish.enterprise.com/events

Email: [email protected]

NEXT STEPS – TALK TO AN EXPORT ADVISOR

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Ask your questions to our panel

Questions to the panel