United Arab Emirates Royal Danish Consulate General June, 2015
FIRST THINGS FIRST
Yes : Pork and alcohol are sold in the UAE!
And Yes : It s the most amazing place to live and visit
Especially taking into consideration what it was 50 years ago From 90.000 people in 1960 to more than 9,5 million in 2015!
Agenda The United Arab Emirates (UAE) Areas of special interst: Green solutions - EXPO 2020 Food and Beverage Healthcare Maritme Investors
The UAE: A strong safehaven in the middle east Independence from UK in 1971 7 Emirates, Adu Dhabi official capital 9,5 million people Second largest economy in the Middle East GDP growth of ~5% annually
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Million people And the impressive population Growth is expected to continue From 1990-2030 the population in the UAE is expected to six-double from 1.8 million in 1990 to 12.4 million in 2030 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 2015:9.5 million
The worlds largest melting-pot of cultures? Less than 15% of the total population is local Emiraties 25% of the population are from India The British are representing the largest western community with close to 250.000 people 70% are men, 30% women 60% of the population is below 35 years of age
Billion (USD) GDP per capita (USD) The economy is doing very well 1000 900 800 GDP is expected to double from 2015 to 2030 Current growth is ~5% annually 45500 45000 44927,8 700 44500 600 44058,8 500 44000 43773,8 400 300 43500 43424 43345,1 43577,6 200 100 43000 0 42500 2013 2014 2015 2016 2017 2018 UAE Total GDP UAE GDP per capita
Who said financial crisis in the Middle East and the UAE?
Who said financial crisis in the Middle East and the UAE?
Oil and gas is dominant, but turisme is also a significant driver Passed 12 million tourist in 2014 Tourist growth of ~12% annually Goal of 25 million tourist by 2020
It s a great pleasure to do business Ease of doing business #22 (1) Paying taxes #1 (1) Registering property #4 (1) Getting electricity #4 (1) Trading across boarders #8 (1) Dealing with Construction Permits #4 (1) * World Bank Group, Doing Business Survey. # out of 189 countries world wide and in (x) # out of 20 countries in the MENA region
And very important: corruption is not a major issue #20: USA #21: Chile #22: Uruguay #23: Austria #24: Bahams #25: UAE #26: France
The UAE as a hub and commercial centre in MENA Direct flights to 80 countries and 150 destinations 1/3 of world s population within 4 hours flying time 4 billion people within 8 hour flight
More than 100 DK-companies are operating in and out of UAE SEMCO has been active in the Middle East for a number of years. However, especially the last three years has shown very strong growth and we have almost tripled our top-line. Managing Director, Semco Maritime UAE has been a great base for Arla exploring business opportunities in the Middle East and Africa. Year-by-year Arla is adding to our sales and setting new records in terms of revenue and qualities sold in the region. It s a great market for us. Senior Vice President, Arla Middle East For Blücher the MENA region has been a great experience. Revenue and profit is increasing year by year. Some of the largest contracts in the history of Blücher has in fact been signed in this region and we are currently working on expanding our strategy to increasingly focus on public contracts etc. General Manager, Blücher We started Export to the MENA region around 1o years ago. In 2009 we finally decided to set-up our own sales office and the region and today we are 18 hard core sales people in the region And it s a region where demand is high, supply and competition relatively low leaving us a great market opportunities Country Manager, Radiometer We are a small start-up producing clean water from extracting humidity from the air. Currently we only have a lab proto-type of our system, but nonetheless we decided to visit the Middle East to find partners/investors as the region invests and focus heavily on green solutions. Our visit went above expectation. We are now in dialog with several interested partners and clients. Next step will be our own office set-up in the region with our new local partner. Owner and Founder, Greenabout
Not everything is pure joy Starting a business #58 (2) Protecting Minority Investors #43 (1) Getting Credit # 89 (3) Resolving insolvency #92 (6) Enforcing contracts #121 (12)
Remember: Things take time and some-times lots of tea - perhaps even shisha
And yes please.. Remember not to
What we do.. Market exploration Market strategy Incorporation, establishment and incubation Global Public Affairs? Partner identification Customer identification and outreach First wave sales meetings CSR Support Recruitment
Agenda The United Arab Emirates (UAE) Areas of special interst: Green solutions - EXPO 2020 Food and Beverage Healthcare Maritme Regional HQ Investors
EXPO 2020: A new economic driver in the UAE In November 2013, the United Arab Emirates won the World Expo 2020. This will be the first time the World Expo is staged in the Middle East, North Africa and South Asia (MENASA) Dubai s World Expo is held under the theme of Connecting Minds, Creating the Future and with following three main themes: Mobility Sustainability Opportunity
The Sustainability theme is sparking a strong interest in green solutions 1 of 6 priority areas in UAE Vision 2021 Sustainable environment and infrastructure Sustainable City Grid connection Renovation projects
And they mean it seriously
EXPO 2020: A multi-billion dollar project First tenders floated Q1 2015 ~35 infrastructure projects expected for ~45 billion DKK: A 15km extension of Dubai Metro Red Line to the Expo Site Extension of the Dubai Metro Green Line Stage two of the Etihad Rail Project Phase Two of the Dubai Tram and Urban Rapid Transit System Main Venue for the Expo Mohammad Bin Rashid Al Maktoum Solar Park Adding to this facillities for 25 million visitors: 283 new hotels EXPO village including apartment and office buildings A museum Mall of the World A 3 billion dollar resort and theme park next to the EXPO site
MARKET AREAS: FOOD & BEVERAGE
Everything is imported: Very limited local production 0,8% Arable land (0,9% contribution to GDP)
Much more import is needed The UAE s food imports will double from 2014 to 2024 Sultan Al Mansouri, UAE Minister of Economy 31 st March 2015
The UAE is already a top world food importer The 15th biggest importer of food in 2012, according to WTO 1.1% of the world's imports Annual % increase in food imports was 13 percent in 2012 Food imports to the GCC region will increase by as much as 100% to USD52.8bn by 2020
Trends in food and beverage Softdrinks: UAE has the highest level of soft drinks consumption: 107 L per head and 123 L bottled water Packed foods: Retail sales of packaged foods grown 7,2% from 2009 to 2013 Alcohol: Average CAGR across different types of alcoholic drinks is 25% since 2008 and ongoing. Especially beer, wine and spirits are facing major growth rates Healthy and organic food: Food intolerance products is witnessing a 14% current value CAGR Fish: The UAE consumer eats 24,5kg fish yearly (world average is 19,2kg). Overfishing an issue leading to increase d import
Segments in growth Hospitality: ~USD2bn turnover in food and beverage at hotels alone amounting to approximately 45% of the total hospitality turnover Private label: Share of private label market has grown from 3% to 10% over the last three years Eating out: 11,000 stand-alone restaurants in the UAE, with approximately 500 added each year Home delivery: 50% of the population has take-away atleast once a week. In comparison the global average is 34%
MARKET AREAS: HEALTHCARE
UAE in world top 20 in health care expenditures per person Each person spend USD1200 each year in healthcare, ranking it among the top 20 countries in the world for healthcare spending per capita Total Healthcare Expenditure increased ~50% from 2010 to 2015 In 2018 total costs are expected at USD16.5bn In 2023: USD21.19bn, which equates to an CAGR from 2013-2023 of 6,2% The Government will cover more than 65% of the expenditure in 2018, and the Private Sector 35%
Major investments hospitals, staff and medical equipment There are currently 104 hospitals throughout the seven Emirates 43 new hospitals under construction 22 hospitals under concept and design phase The demand of Doctors, Nurses, Dentists and Pharmacists will increase massively towards 2025 Source: Ministry of Health, National Statistics United Arab Emirates
Major health issues are diabetes and obesity, but costs are also in focus Top priorities in vision 2021: Increase the average healthy life expectancy Reduce the number of people smoking tobacco Reduce deaths caused by cardiovascular diseases, diabetes and cancer Reduce obesity amongst children Other healthcare priorities Rehabilitation E-Health System Robotics Home Healthcare
Medical Devises and Drugs are good business. Medical device imports supply most of the market in value terms. Imports rose by 19.7% from 2013 to 2014, reaching USD0.9bn Devise market projected to continue expansion at a 2013-2018 CAGR of 8.7%, increasing to a value of USD1.3bn in 2018 The leading suppliers are Europe, the USA and China In 2012 the UAE pharmaceutical market reached a value of USD1.8bn, and is expected to reach USD2.4bn in 2017 Drug spending per capita in the UAE is already the highest in the GCC region with USD240 per capita in 2013
MARKET AREAS: MARITIME
A new Singapore The UAE has one of the world s fastest growing maritime sectors. With a new Maritime Sector Strategy additional billions of dollars are set to be invested in the sector making Dubai a world maritime forerunner
MARKET AREAS: INVESTORS
Huge number of investments funds, venture funds etc. exists in the UAE
And now a few commercials before we say hello to you in the UAE
Gulfood Royal Danish Consulate General are arranging a joint stand, reception, and market visit in Dubai in relation to the Gulfood show! Almost 5,000 exhibitors participating from over 120 countries Biggest European showcase ever Largest South American participation
Gulfood Manufacturing 1.000 international exhibitors Largest manufacturing exhibition in Middle East, Africa, and South East Asia Access to new emerging markets Transport and hotel included DKK 7,500 with teo attendees per company
EXPO 2020: Green Strategic Alliance
Down Town Design
Dubai 2016 Invitation: Two days of Networking & Business Development The Royal Danish Consulate General in Dubai and Danish Maritime are pleased to invite you to join a business development program in Dubai in association with Dubai Maritime City Authority Exploring Maritime Opportunities in the UAE February 2016
Healthcare: Best way to start is to join the Danish Healthcare Group Experienced export advisors, sector experts and companies within the healthcare sector supplying or servicing the health care industry Knowledge sharing, market information feeds and a number of yearly planned A- Z delegations and meetings etc. First delegation in October 2015 Visit to a public and private hospital to learn more about procurement Metting with DHA and SEHA Meetings and reception with leading distributors Individual meetings