The Third Emirates Investment Forum showcases UAE investment opportunities in the industrial sector to German and foreign investors
The UAE Business and Investment Forum III, which is organized by the Abu Dhabi Department of Economic Development in cooperation with the German Arabic Chamber of Industry and Commerce, was launched today on the sidelines of the activities of Hannover Messe2014, in which the UAE is participating for the seventh year in a row, with a large pavilion involving 35 government and private sector entities, factories and companies operating in the State.
The Third UAE Business and Investment Forum, was attended by more than 200 people including investors, businessmen from German and European industries.
Present at the forum were H.E. Juma Mubarak Al Junaibi the UAE Ambassador to the Federal Republic of Germany, H.E. Excellency Bernd Strauch, Mayor of Hanover, Dr. Rudolf Gridl Head of the Unit North Africa and the Middle East at the German Federal Ministry of Economy and Energy, Dr. Peter Göpfrich CEO of the German Emirati Joint Council for Industry and Commerce and Mr. Olaf Hoffman, Vice President of the Arab German Chamber of Commerce and Industry.
In a speech he gave at the Forum, Mr. OLAF Hoffmann, Vice President of the Arab German Chamber of Commerce and Industry gave a speech said, „Today, the Emirati-German relations reached a stage of genuine partnership based on mutual interests. The UAE’s participation in various international exhibitions and forums organized by Germany is a sign of the depth of this strategic relationship.“
Mr. Hoffman noted that the volume of trade exchange between the two sides continuously increased during the past five years, which is a positive signal that economic relations between the two friendly countries will be growing at different levels and sectors of development, particularly the industrial and energy fields.
Mr. Hoffman added, „Holding the third Emirates Investment Forum on the sidelines of the UAE’s participation in Hannover reflects the keenness of the UAE side to attract more German and European investments in general to the UAE, with its promising investment opportunities in conjunction with major development projects to be carried out in the years to come“.
In turn, H.E. Juma Mubarak Al Junaibi the UAE Ambassador to the Federal Republic of Germany addressed the Forum saying, „The Hanover Messe is the barometer of the world“s industrial development, and it promotes dialogue and cooperation of the global industry; that is why the UAE has, year after year, shown strong interest in participating in the fair“.
The Ambassador noted that UAE participation grew by 50% compared to last year“s, involving 35 entities from different sectors of UAE industry. He added, „The United Arab Emirates and Germany are enjoying today excellent bilateral relations. Trade and investment is the cornerstone of our partnership, as the UAE continues to be Germany“s first trade partner in the Middle East with a trade volume of approximately EUR10.7 billion in 2013, taking into consideration that this volume has continuously been increasing over the past decade“. The Ambassador said, „Germany has increasingly discovered the great economic potential of the UAE market, as there are around 1000 German companies working in various sectors in UAE. For example, we have „Audi-Volkswagen Middle East“ and „Knauf“ for building materials both based in Dubai, and „Bilfinger Power Systems“ based in Abu Dhabi. UAE investors have also looked for opportunities in the German market; the Emirati microelectronics company „Globalfoundries“ is based in Dresden and „Merkel“ manufacturing shotguns and rifles is based in Suhl, to name but a few“.
„The UAE believes that the already existent industrial cooperation can act as a springboard to elevate our economic partnership to new levels in the coming years. Statistical data of 2013 showed upward trends in the economic performances of both Germany and the UAE; as the world financial crisis is subsiding: the UAE achieved a GDP Growth of 4% while Germany achieved 0.4% despite the European economic crisis. The economic predictions for 2014 onward are optimistic for both countries. This provides a golden opportunity for enhancing UAE-German industrial cooperation“, the UAE Ambassador said.
Ambassador Al Junaibi stressed that the UAE extends a hand of partnership to all and welcomes participation in UAE’s vision for industrial innovation, competitiveness and development; saying that the world is entering a phase of unprecedented innovation-intensive industries and the UAE is geared towards coping with global advancement.
The Ambassador explained that in the last decade, the UAE government had focused on developing the country“s industrial and manufacturing sector, as part of a clear strategy to reduce its economy“s dependence on oil exports. From 2007 to 2011 the UAE increased the value of industrial investments to approximately EUR22.7 billion, which marked an increase by 57%.
„The UAE“s policy of economic diversification and the government“s efforts to encourage industries and manufacturing have paid strong dividends, as the UAE“s industry has made remarkable achievements. In 2011 the contribution of the non-oil sector to the UAE“s GDP had increased by 71%.“ The Ambassador said.
„Recently the industrial and manufacturing sector has developed to more capital-intensive, high-technology products such as electronics and machinery. Other industries such as plastic, fiberglass and processed metal, construction materials, handicrafts, textiles, food, and dairy products are among the country’s expanding industries, driven by local and international demand“, the Ambassador was quoted as saying.
Al Junaibi explained „Today the UAE“s plans for expansion of its infrastructure, energy and industrial sectors present vital opportunities for investment, even more so now that Dubai will be hosting Expo 2020.“ The ambassador emphasized that the UAE sincerely welcomes German enterprises to actively participate in the process of industrial change and development, adding that there is a vast reservoir of potential for business opportunities in the UAE, which does not just belong to UAE enterprises alone, that also belongs to companies around the world. He said that UAE adheres to the basic national policy of opening up, and offers favorable tax laws, excellent facilities, and political stability.
H.E. Hamad Abdullah Al Mass Executive Director of International Economic Relations Sector of Abu Dhabi Department of Economic Development, delivered a speech at the opening session of the Investment Forum, in which he said that, „Hannover Messe as a leading fair specialized in technological and industrial innovations in the world represents ideal platform for strengthening partnerships at the public and private sectors levels; and promotion the UAU as a competitive investment site and for products and services in accordance with advanced and modern technologies.
Al Mass noted that this that the UAE Investment Forum provides opportunities for interaction with investors, building relations entrepreneurs and attracting international investments. He added that the participation of UAE in Hannover is increasing year after year, as the UAE pavilion expanded from 90 square meters in 2008 to more than 1000 square meters this year; and the number of participants went up from 6 in 2008 to 36 government and private sector establishments this year.
Al Mass also explained that the relations between UAE and Germany witnessed substantial progress since 2004, when they started their strategic partnership. Bilateral cooperation was boosted by concluding agreements in many in areas, such as renewable energy, knowledge, tourism, construction, manufacturing, water, and waste management.
Al Mass noted that total bilateral trade between the two countries amounted to more than EUR 10.5 billion at the end of 2012, up 23% compared to 2011, and that UAE emerged as Germany’s largest business partner in the Middle East, and a major market for German companies in several sectors.
Non-oil trade between Dubai and Germany, according to Al Mass, continued to increase, and Germany was ranked fourth worldwide as a partner of Abu Dhabi in the non-oil foreign trade in 2012. Al Mass explained that although the total non-oil trade between Abu Dhabi and Germany dropped to EUR1.6 billion at the end of 2013 decreasing by 20% compared to 2011, but Germany is still one of the top ten key partners in Abu Dhabi’s non-oil trade.
Al Mass noted that the UAE has major investments in Germany across several sectors including manufacturing, financial services, real estate and renewable energy; where these investments are concentrated in major German companies such as DaimlerChrysler and Deutsche Bank, in addition to „Masdar“ PV’s manufacturing plant in Ichtershausen, and ATIC Globalfoundries in Dresden, which all reflect the depth and soundness of bilateral relations between the two countries.
The number of German companies in UAE is growing, as there are more than 1000 German companies currently operating in UAE and benefit from the State’s strategic location which allows access to more than 3 billion consumers in the region.
Al Mass said in his speech that Abu Dhabi has adopted a comprehensive policy for economic diversification, especially in recent years, and as a result of these policies, Abu Dhabi maintains an advanced economy, achieves consistent annual growth, due to the rational and responsible utilization responsible of natural resources, inspired by the guidance of the sagacious leadership in the UAE.
Al Mass in his speech, said that the economy of the „Emirate of Abu Dhabi“ is currently one of the most dynamic economies in the Middle East, and that initial expectations indicated that the real GDP growth in the Emirate by the end of 2013 would amount to more than 7 percent, after an increase of 5.6% in 2012. He added that the Emirate’s economic diversification plans are proceeding ahead, as non-oil economic activities contribution to real GDP increased from 41% in 2005 to 48% in 2012, and is expected to continue in the same trend in the future, because the majority of mega-projects undertaken recently were non-oil projects.
Al Mass indicated that Abu Dhabi’s economy growth stems from the sound policies of openness and free trade adopted by the Emirate, and the attractive environment for foreign investment, and well as the expansion of the involvement of the private sector in development, in addition to the political stability; which are all vital factors in achieving economic growth and sustainable development in the Emirate, targeted by Abu Dhabi Economic Vision 2030.
„The economic development and diversification plans are on track, and this enables the UAE businessmen to partner in new investment in Germany; we are also working on developing new local industries in the areas of advanced technology, clean and renewable energy, nuclear energy, and we seek to build collaborative relationships with leading German companies in these areas“, Al Mass said.
In this context Al Mass stressed the keenness of Abu Dhabi to increase cooperation with Germany to higher levels, in the areas of knowledge, technology, innovation, renewable energy, small and medium-sized enterprises, health care, tourism, financial services and heavy industry.
Al Mass said that the knowledge-based economy is one of the strategic objectives of the Abu Dhabi Economic Vision 2030″, especially that Abu Dhabi has created a modern and integrated infrastructure to meet the requirements of the knowledge-based economy, benefiting from best practices. He pointed out that many lessons could be learned from the German experience in this area.
The activities of the Forum started with a discussion session about the industrial sector in the UAE which involved Engineer Ayman Al Makawi, the Director General of Industrial Development Bureau, of Abu Dhabi Department of Economic Development, H.E Mohamed Hasan Al Qamzi CEO of ZonesCorp and H.E. Khaled Salmeen Al Kawari CEO and Managing Director of the Khalifa Industrial Zone Abu Dhabi (Kizad).
Engineer Ayman Al Makawi, Director General of the Industry Development Bureau of Abu Dhabi Department of Economic Development said during the discussion session of the Forum, “ the Industrial Development Bureau is envisaged with the implementing of the industrial strategy of the Emirate of Abu Dhabi, and its recommendations, to provide an attractive industrial environment for investment, by the development of appropriate laws, rules and regulations governing the industry; and strengthen the supervisory and regulatory role of the Bureau to ensure the quality of industrial plants and enable them to compete at the regional and international levels“.
Al Makawi said, „The IDB Bureau is promoting the industrial sector in the Emirate of Abu Dhabi by providing various incentives, facilities and enablers that will make Abu Dhabi before attractive destination to investors in the region, through coordination and cooperation between the Bureau, the higher Corporation for specialized Economic Zones and Kizad, where roles will be integrated to achieve this common goal“.
Al Makawi stated that in addition to its legislative, regulatory and supervisory role, the Industrial Development Bureau works to develop industrial financing policies and development of business, by broadening the Emirate’s industrial base and encouraging small and medium-sized enterprises.
Al Makawi explained to the German and foreigners participants, businessmen and investors that IDB is specifically targeting 13 industrial sectors including aerospace industries, clean technology, engineering, chemicals, electronics, food and beverage processing and transport equipments.
H.E. Suhail Mubarak bin Athaeeth, CEO of SENAAT, during the panel discussion session indicated that SENAAT has strengthened
its leading role in the non-oil industrial sector in Abu Dhabi after 2012, when it achieved quantum leaps in financial indicators, which reflected the strength and stability of the company’s financial situation, and its steady growth since 2004.
Bin Athaeeth said, „The value of assets managed by SENAAT in 2012 amounted to AED 25.3 billion, registering an increase of 7.8% over the year, while revenues rose by 7.2 % to AED12.3 billion, which highlights the record success of SENNAT and its ability to bring value to its portfolio companies“.
Bin Athaeeth predicted that the same trend will continue further for SENAAT accomplishments, through it’s by sound investment approach; He indicated that since 2004, the company had achieved an increase of 30 % in profits and revenues and volume of assets. The company also invested more than AED16 billion in the different business lines, including AED2.7 billion annually over the past five years.
As for the performance of the SENAAT portfolio companies in 2013, despite falling global demand for steel last year, and the increase in global production coupled with fluctuation of raw material prices, the revenue of „Emirates Steel Industries“, during the year increased to AED 6.5 billion up by 8% compared to 2012. Bin Athaeeth added: „Agthia Group, during 2013 achieved sales worth AED 1.51 billion, up 14% from previous year; in addition net profit which increased by 28% per cent, to AED160.1 following the increase in the volume of net sales and improved profit margins.
„Many of the companies in the investment portfolio of SENAAT are leading companies in the region and internationally, which meet the regional and global demand for certain products and materials, including renowned export firms operating in GCC markets. Some of those companies export their products to a number of global markets, including America, Europe and South East Asia. The first shipment of „Emirates Steel“ marked „made in UAE“ dispatched to the Americas during the past year, which is a clear indication of the quality of our products“, Bin Athaeeth said.
Engineer Bin Athaeeth, emphasized the commitment of SENAAT to contribute to the economic development of the Emirate of Abu Dhabi in the industrial sector, as it aims at promoting growth and development of the industrial sector; and enhancing its contribution to the economy of the Emirate.
According to Bin Athaeeth, the company’s industrial activities, contribute to the enhancement of industrial assets in UAE, and creates jobs requiring a high degree of skill. SENAAT follows an active and efficient approach in the management of its portfolio investment; and it has privatized its assets and direct investment. He added that SENAAT currently operates in four sectors: metals, oil and gas services, building materials, food and drink; which are the main sectors of focus for Abu Dhabi Economic Vision 2030, targeted for diversifying the Emirate’s economy.
On his part, H.E. Saeed Al Mazrouei (Designate CEO of UAE Operations for EGA) said, „The formation of Emirates Global Aluminium by Mubadala Development Company and the Investment Corporation of Dubai, through the integration of their respective assets in the aluminium industry, will yield an enterprise valued at approximately US$15 billion. This offers the UAE a large-scale operating platform to maximize penetration of global markets, as well as for implementing ambitious international and local expansion plans. EGA’s support for the development of the UAE’s aluminium industry, in particular, will provide excellent international investment opportunities“.
Auf der Hannover Messe präsentieren sich Firmen aus den Vereinigten Arabischen Emiraten aus Industrie, Handel, Pharmazie, Verkehr, Technologie und Umweltschutz, Freihandelszonen sowie das Wirtschaftsministerium und Investmentunternehmen. Ihre Produkte, Technologien und Dienstleistungen präsentieren folgende Firmen und Organisationen: Etihad Rail, Zonescorp, ADNOC, KIZAD, SENAAT, Department of Municipal Affairs, Abu Dhabi Chamber, QCC, Urban Planning Council, ADFCA, Industrial Development Bureau, Etihad Airways, Mubadala, Masdar, ATIC, SCAD, Khalifa Fund, ADCED, Ministry of Economy, Emirates Global Aluminum, Dubai Silicon Oasis Authority, Department of Economic Development Ras Al Khaimah, RAK Free Trade Zone, Sharjah Economic Development Department, RAK Chamber of Commerce and Industry, International Golden Group, Abu Dhabi Environment Protection Technology Factory, AM Marine Works, Al Ghurair Iron and Steel, Al Nasser Industrial Enterprises, Emirates AquaTech, Emirates Float Glass, Emirates Steel, Exeed Industries, Gulf Flour, Ittihad International Investment, Jindal Saw Group, Jopetwil Industrial Company, Mcwane, Neopharma und Tuboscope Manufacture.
Department of Economic Development der Vereinigten Arabischen Emirate
Thomas Rentschler
Herderplatz 5
55124 Mainz
+49 6131 21 63 20
tr@recompr.de
http://www.recompr.de
ReComPR
Ron Zippelius
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55124 Mainz
+49 6131 21632-13
rz@recompr.de
http://www.recompr.de