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TRANSCRIPT
Content
Economy
Massive development project planned for The Suez Canal Energy
Renewable Resource Atlas Launched in Saudi Arabia
Energy
Power sector developments in Kuwait
Economy
New oil and gas discoveries in Lebanese wa-
ters
Danish Foreign Services
Trade office in Erbil, Iraq
This issue’s spotlight:
The Crown Prince and the Minister of Devel-opment of Denmark visit a sustainable Abu Dhabi
Meet a commercial advisor in Denmark
Event calendar
THE TRADE COUNCIL’S
NEWSLETTER FOR THE MENA REGION February 2014
Welcome to the Regional Newsletter
Dear Reader, Welcome to the first issue in 2014 of The Trade Council’s Regional Newsletter for the MENA countries. We are pleased that you are taking the time to read our newsletter, where we aim to highlight some of the news and sectors that could be of interest for your personal and business related purposes. This edition of the Regional Newsletter will provide you with infor-mation on a severe expansion of the fiscal policy in Egypt involving an exploitation of the Suez Canal and its business opportunities. Moreover, we elaborate on the energy sector in Saudi Arabia and Ku-wait. These energy sectors are extensively focused on renewable energy as an instrument to encourage foreign investments within their respec-tive regions. Another country encouraging international investments is Lebanon, which is undergoing a shift from service into industry becoming an oil producing player in the international field of oil drilling. The Danish foreign services abroad have been undergoing radical mod-ernization reforms causing the closure of several representations, how-ever, this has also created the opportunity to set up new trade offices: In this edition you can read about our new initiative in Erbil, Iraq. The Newsletter Spotlight covers the visit from HRH Crown Prince Freder-ik and the Minister of Development from Denmark, who were signing a mutual memorandum of understanding for renewable energy and sus-tainability at WFES in Abu Dhabi. We hope that the MENA Newsletter will enlighten your knowledge about the Middle East, and we will be looking forward to a future coop-eration with you.
Astrid Svitzer Ching Nielsen Head of Commercial Section E-mail: [email protected]
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Economy
Massive development project planned for The Suez Canal
In an attempt to make Egypt live up to its former nickname “The Arab tiger on the Nile”, the Egyptian interim gov-
ernment is pursuing an expansionary fiscal policy. A key element in this strategy that aims to regain the pre-2011
growth rates and to promote social and economic equality,
are two economic stimulus packages worth USD 4.4 bn. and
USD 4.3 bn. Respectively, presented and partially imple-
mented by the Egyptian Government. Part of the second
stimulus package is an investment into a massive develop-
ment project in the Suez Canal and surrounding areas - USD
287 mil. has, this far, been allocated for preliminary studies
and infrastructure.
The 193-kilometre long Suez Canal, connecting the Mediterranean Sea and the Red Sea, is a unique East-West ship-
ping route, and 8 % of the world’s total shipping freight passes through here every year. A number the Egyptian au-
thorities are keen to increase this. A tender has, therefore, been made with 14 international joint ventures qualified
for the project. Forthcoming, a committee is going more thoroughly over the propositions, and the winner is going to
be announced in October 2014, with work set to begin on the project in 2015. The project on the Suez Canal itself
includes the development of four seaports in the three canal-bordering provinces – Suez, Ismailia and Port Said – as
well as a seaport in Al-Arish, the capital of the North Sinai governorate.
With the Suez Canal already being a focal point for international trade, a position only set to increase with the com-
ing expansion, the Egyptian authorities are looking to develop the surrounding area with a number of large scale
projects. This includes a “Technology Valley” in Ismailia, which is going to host several technology projects, as well as
a new industrial zone west of the Gulf of Suez. The idea is to make clusters of companies working in the same indus-
tries, thereby creating positive spill-over effects – as seen, for instance, in the “Silicon Valley”, California.
For further information, please contact: The Commercial Section at the Embassy of Denmark in Cairo Engy Basiouny - Head of the Commercial Section, [email protected] Marwa El Tawil - Commercial Adviser, [email protected] Phone: +20 2 2739 6500
Container ships passing through the Suez Canal
3
Economy
Renewable Resource Atlas Launched in Saudi Arabia
In line with its ambitious renewable energy plans Saudi Arabia has taken a vital step by launching a renewable re-
source atlas on 18th December 2013. The launch was attended by several academic entities, utility companies, indus-
try players and policy makers and, furthermore, by relevant Saudi ministers.
Prior to this launch, international companies in-
terested in the Saudi energy market had to de-
pend on data gathered mainly through satellite
observations and not on-the-ground stations.
However, this proved to be inefficient as the rate
of accuracy was inconsistent and unreliable not
meeting the standards demanded by developers.
In order to overcome this situation, King Abdullah
City for Atomic and Renewable Energy (K.A.CARE)
decided to put together a reliable and accurate
renewable resource dataset reflecting the country’s solar radiation spectrum, humidity and wind speeds in addition
to dust and atmospheric conditions. Due to the planning efforts and strategic design efforts the results of Saudi Ara-
bia’s Renewable Resource and Environmental Measurement and Monitoring (RRMM) project are now accessible via
the K.A. CARE website.
Furthermore, the atlas includes maps for Saudi Arabia’s electrical grid, roads, environmentally protected areas, pop-
ulation densities, elevations and slopes. Solar resource data will be collected at annual, monthly and daily average
levels and will be accessible publicly.
The Saudi national project is expected to attract national and international companies that are willing to engage in
initiatives for this type of investment. These initiatives are completely new to the Kingdom of Saudi Arabia.
For further information, please contact: The Commercial Section at the Royal Danish Embassy in Riyadh Safiye Kücükkaraca – Commercial Advisor Phone: +966 (0)11 488 0101 / e-mail: [email protected]
4
Energy
Power sector developments in Kuwait
The laws of Kuwait have helped private power and water schemes by making it
obligatory for all power schemes larger than 500MW to be developed as inde-
pendent water and power projects (IWPPs). Smaller power projects continue
to be carried out as lump sum turnkey projects for the Ministry of Electricity &
Water.
Following the passing of a parliamentary bill, allowing increased privatization in the power sector, there is reason to
think that Kuwait's energy sector may have turned a crucial corner. For the first time, private companies can hold a
stake in Kuwait's power sector and facilitate the channeling of foreign capital and expertise into the sector.
Kuwait's government aims to produce 10 % of its power from renewable sources by 2020, according to Eyad Ali al-
Falah, Assistant Under Secretary for Technical Services at the Ministry of Electricity & Water. The country is to collect
data on sunshine and wind speeds in order to secure its target for clean energy. As part of the five-year development
plan, the government is aiming to increase its power generation capacity to support growth in the manufacturing,
tourism and home building sectors, as well as freeing more oil for export.
The country's water distribution network will receive an overhaul following news that Kuwait's Ministry of Electricity
and Water awarded a USD 11.8 mil. contract to upgrade the network. Through the modernization project, the gov-
ernment is aiming to improve efficiency and cut costs in order to fulfil its development plans.
Another planned power linkup between grids in all GCC countries has noted down Kuwait and Qatar align their pow-
er networks and successfully test the synchronized network in preparation for the first stage of the GCC power grid
plan. This extensive commitment is crucial for Kuwait in order to reach its further goals.
In line with its vision Kuwait is fully committed to boost the clean energy production – and moreover the country
aims to save its crude for export by launching a programme to install 2GW of renewable energy capacity by 2030,
amounting to 15% of the country's electricity supply.
For further information, please contact: The Commercial Section at the Royal Danish Embassy in Riyadh Safiye Kücükkaraca – Commercial Advisor Phone: +966 (0)11 488 0101 / e-mail: [email protected]
Kuwait has launched a renewable energy
programme.
5
Economy
Business Opportunities in the Lebanese Oil and Gas Industry
Lebanon is predicted to witness a historical reshuffling of the economy and the country has the potential of seeing
substantial economic growth in the near future. The Lebanese economy will structurally change from a service ori-
ented economy to becoming a member of the oil and gas producing countries following the discovery of offshore oil
and gas reserves. Lebanon will benefit from an expected substantial rise in demand on the domestic skilled and un-
skilled workforce in the early stages of exploration, as the initial massive investments by foreign oil and gas compa-
nies to create the infrastructure, kick in prior to the
commencement of exploration operations. In addi-
tion, more than 30 different service subsectors will
need to be fully engaged in the build-up of exploration.
However, to build the necessary infrastructure, it is
estimated that foreign companies will need to invest
around USD 250 mil. for each operated block and ap-
proximately USD 1.5 bn. for the exploration, drilling
and production processes.
The Lebanese government is committed to exploit its offshore resources, even though the neighbouring countries
are much more advanced in the drilling process. Experts predict that Lebanon has higher deposits of offshore gas
than its neighbours - estimated to be around 25 trillion cubic feet. Lebanon enjoys huge oil reserves along the south-
ern coast that are classified as the most preeminent in the area. International experts’ prediction indicates that Leb-
anon will be ready to yield gas and oil in 2019.
In view of the future perspectives in the oil and gas sector and supporting industries, we encourage Danish oil and
gas related companies, logistics and service providers to grasp this opportunity. Lebanon is a newcomer to the oil
and gas production industry and will need all sorts of cooperation with foreign businesses.
For further information, please contact: The Royal Danish Embassy in Beirut Ahmad Mahmoud El Loubani – Head of Commercial Section Tel. 009611970804 Mobile: 0096170222956 / E-mail: [email protected]
6
Danish Foreign Services
Trade office in Erbil, Iraq
The Ministry of Foreign Affairs of Denmark recently launched a large reform that is to modernise the Danish Foreign
Service abroad to match international standards.
In brief the new representation structure is based on: “More focus on the World, less on Europe – and more on the
EU”. With the new structure came what
was the end of a number of representa-
tions, but also the announcement of a
new trade office in the city Erbil in Kurdi-
stan. Denmark will now provide a sharper
representation of the Danish interests in
the Kurdish region of Iraq.
Covering some of the world's largest un-
tapped oil and natural gas reserves, the Kurdish region of Iraq is experiencing a surge in investment and construc-
tion. This new demand for business support, combined with liberal investment laws, is opening up the economy in a
part of the world where business was once reserved for people with family or political connections. Forthcoming,
this means that the need for improved infrastructure, housing and educational options will increase rapidly. Some of
these needs will be financed by reinvesting revenue from local oil production.
Danish companies find great interest in the markets of oil industry, agriculture, agro industry and food supplies as
well as social and physical infrastructure. Furthermore, the long heritage of Danish-speaking Kurds and Kurdish-
speaking Danes, and the fact that Danish products are well known in this particular region, creates a strong funda-
mental ground for future mutual business cooperation and opportunities in Iraq.
Iraq is expected to experience the largest growth rate in the world from 2010 – 2017, which indicates a lucrative
market for Danish investment initiatives. Moreover, Erbil itself is a market going through great growth, and supple-
mented by its position as gateway to the wide-ranging market of Iraq, it makes the city essential for a representation
of a Danish trade Office.
For further information, please contact: The Royal Danish Consulate General in Dubai Edith Mathilde Estrup Christmas, Commercial Advisor Phone: +971 4 348 0877 / e-mail: [email protected]
Aerial view of Erbil, Iraq. Kurdistan Region
7
Spotlight
The Crown Prince and the Minister of Development visit a sustainable Abu
Dhabi.
This year’s Abu Dhabi Sustainability Week was enriched with a significant Danish attendance by HRH Crown Prince
Frederik and Minister of Development Rasmus Helveg Petersen. The visit centred round the signing of a Memoran-
dum of Understanding for cooperation regarding renewable energy and sustainability.
The signing ceremony took place at a separate Dan-
ish/Emirate event after the opening ceremony of the con-
ference. The event was held under attendance of HRH
Crown Prince Frederik and the UAE foreign minister and
member of the reigning family, Sheik Abdullah bin Zayed Al-
Nahyan.
The Crown Prince opened the ceremony with a speech ac-
knowledging the UAE’s sustainable visions and furthermore
praised the effort that the country has made to convert
ambition into action. Simultaneously, the Crown Prince,
emphasized that Denmark, likewise, focuses on a green profile and, therefore, the two countries make ideal partners
for global sustainability.
The Minister of Development, Rasmus Helveg Petersen, signed the framework agreement on behalf of Denmark,
while the UAE Minister of State, Dr. Sultan al Jaber, signed on behalf of the United Arab Emirates. Dr. Sultan Al Jaber
furthermore holds the position as CEO for the government-owned prestige business, Masdar City, a city designed to
be a hub for cleantech companies and to be a sustainable zero-carbon car-free city focussing on sustainable energy -
and who, furthermore, holds the role as organiser of Sustainability Week.
The framework agreement paves the way for mutual cooperation within both commercial and research matters as
well as a strengthened cooperation between state-launched green initiatives and projects.
The agreement has already given rise to numerous significant agreements. The most advanced development exam-
ple is the cooperation of the programme “Wind for Prosperity” between Vestas and Masdar. During his speech at
Cooperation: The Danish Minister of Development, Rasmus
Helveg Petersen and Minister of UAE, Dr. Sultan Al Jaber sign-
ing the bilateral MoU.
8
the event the CEO of Vestas, Anders Runevad, emphasized that Wind for Prosperity was inspired by the bilateral
agreement between Denmark and the United Arabian Emirates.
The Minister of Development took part in a panel debate about Wind for Prosperity, arranged by Vestas, since the
program opens up to large development political perspectives: Older windmill models will be set up in the poorest
regions of the World in order to supply access to energy and thereby generate ground for further development that
combines growth and sustainability.
The Crown Prince experienced numerous samples of the Emirates´ dedication towards green adjustments during the
days in Abu Dhabi. The Crown Prince visited both SHAMS 1, which is one of the World’s largest solar cell facilities
placed in the desert of Abu Dhabi, just as he was introduced to the CO2 neutral Masdar City, accompanied by the
Danish Minister of Development.
For further information, please contact: The Royal Danish Consulate General in Dubai Astrid Svitzer Ching Nielsen – Head of Commercial Section Phone: +971 4 348 0877 / e-mail: [email protected]
UAE’s sustainable flagship:
HRH Crown Prince Frederik, Danish
Minister of Development, Helveg Pe-
tersen, and Danish Ambassador, Poul
Hoiness, being introduced to the CO2-
neutral city by Masdar City by Christo-
pher D. Sorensen (on the right)
9
Events, exhibitions and other
Meet a Commercial Advisor in Denmark Get a chance to meet some of the commercial advisors from the MENA region in Denmark and boost your business opportunities in the Middle East and North Africa. Date: Commercial advisor:
24.03 – 27.03 Vibeke Nurgberg, Royal Danish Consulate General, Dubai
24.03 – 27.03 Safiye Kücükkaraca, Royal Danish Embassy, Riyadh
28.04 – 30.04 Edit Christmas, Royal Danish Consulate General, Dubai
14.05 - 15.05 Ahmad Mahmoud El Loubani, Royal Danish Embassy, Lebanon
14.05 – 15.05 Engy Basiouny Ahmed Metwali, Royal Danish Embassy, Cairo
14.05 – 15.05 Astrid Svitzer Ching Nielsen, Royal Danish Consulate General, Dubai
02.06 – 04.06 Astrid Svitzer Ching Nielsen, Royal Danish Consulate General, Dubai
02.06 – 04.06 Safiye Kücükkaraca, Royal Danish Embassy, Riyadh
10
Events
UAE:
For further information, please contact: The Royal Danish Consulate General in Dubai Astrid Svitzer Ching Nielsen – Head of Commercial Section Phone: +971 4 348 0877 / e-mail: [email protected]
Gulfood
Date: February 23th – 27th 2014
Location: Dubai International Convention and Exhibition Centre
Web: www.gulfood.com
Description: When you invest in Gulfood you are choosing a trade show with proven credentials. Established over
25 years, Gulfood has a well deserved reputation amongst exporters for delivering spectacular return
on investment. For the exporter seeking new sales from the Middle East, Africa and South Asia,
Gulfood provides a trade and sourcing platform without equal, where international flavours find
world-class business. Benefit from the region's premier knowledge exchange from education, training,
competitions & live events. Gulfood strives to inspire and inform.
11
Egypt
For further information, please contact: The Royal Danish Embassy in Egypt Engy Basiouny – Head of Commercial Section Phone: +20 2 2739 6500/ e-mail: [email protected]
CAIRO INTERNATIONAL FAIR 47
Date: March 19th – 28th 2014
Location: Fair Ground – Nasr City, Cairo
Web: www.cairofair.com
Description: This event is a well-established multi-sectorial trade event that has been taking place for the last 46
years; providing a unique platform for marketing products and services, enabling participants from
overseas to introduce new and improved technologies to Egyptian and Middle- Eastern markets.
CIF attracts more than 800 exhibitors from 17 countries, and the number of visitors for this year was
estimated to be more than one million attendees.
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Key economic figures for the MENA region
Population (2013)
Bahrain 1.2 million
Egypt 84.2 million
Iran 77.1 million
Iraq 34.8 million
Jordan 6.5 million
Kuwait 3.9 million
Lebanon 4.1 million
Oman 3.2 million
Qatar 1.9 million
Saudi Arabia 29.6 million
United Arab Emirates 9.0 million
Yemen 26.6 million
Syria N/A
Total 282.1 million
Source: All figures are estimates from IMF
13
Key economic figures for the MENA region
GDP per capita - Purchasing Power Parity (2013)
Bahrain USD 29,775
Egypt USD 6,553
Iran USD 12,803
Iraq USD 7,132
Jordan USD 6,115
Kuwait USD 39,647
Lebanon USD 15,832
Oman USD 29,772
Qatar USD 103,400
Saudi Arabia USD 31,309
United Arab Emirates USD 29,877
Yemen USD 2,348
Syria USD N/A
Total USD 314,563
Source: All figures are estimates from IMF
14
Key economic figures for the MENA region
GDP - Real Growth Rate, percentage change (2013)
Bahrain 4.4 %
Egypt 1.8 %
Iran -1.5 %
Iraq 3.6 %
Jordan 3.3 %
Kuwait 0.8 %
Lebanon 1.5 %
Oman 5.1 %
Qatar 5.1 %
Saudi Arabia 3.6 %
United Arab Emirates 4.0 %
Yemen 5.9 %
Syria N/A
Source: All figures are estimates from IMF
15
Key economic figures for the MENA region
Inflation rate – Average consumer Prices (2013)
Source: All figures are estimates from IMF
Bahrain 2.6 %
Egypt 6.9 %
Iran 42.3 %
Iraq 2.2 %
Jordan 5.9 %
Kuwait 3.0 %
Lebanon 6.3 %
Oman 2.8 %
Qatar 3.7 %
Saudi Arabia 3.7 %
United Arab Emirates 1.5 %
Yemen 11.9 %
Syria N/A
16
Danish companies’ entry to the Middle Eastern market The Trade Council is the official Danish Ex-port and Investment Organisation. Its pur-pose is to promote and help Danish compa-nies with matters relating to their export and internationalisation. In the Middle East, we are represented in Egypt, Iran, Iraq, Leba-non, Saudi Arabia, Syria, and the United Arab Emirates, but our network and competences cover several other markets in the region, including Kuwait, Jordan, Oman, Qatar, Bah-rain, and Yemen.
Because the Middle East is a very diverse area and presents great opportunities for competitive Danish firms, your business can benefit from the Trade Council’s local knowledge and network. We offer a range of services within the commercial area and can help your business with entry, and conse-quent expansion, to the Middle Eastern markets.
If you or your firm is interested in more than one market in the Middle East, please con-tact Astrid Svitzer Ching Nielsen [email protected].
If you wish to receive this newsletter, please send an email to [email protected].
About Us
For more country specific information and contact infor-
mation, please refer to the specific websites:
EGYPT
Danish Embassy - Cairo
http://egypten.um.dk/en.aspx
IRAN
Danish Embassy - Tehran
http://iran.um.dk/en.aspx
LEBANON
Danish Embassy - Beirut
http://libanon.um.dk/en.aspx
SAUDI ARABIA
Including: Bahrain, Kuwait, Oman and Yemen
Danish Embassy - Riyadh
http://saudiarabien.um.dk/en.aspx
UNITED ARAB EMIRATES
Including: Qatar and Iraq
Royal Danish Consulate General - Dubai
http://fae.um.dk/en.aspx