Mackay Smith, Regional Director Southern Europe, Middle East and Africa Scottish Development International Dynamic Dubai Edinburgh 17 th November 2011

The Gulf Cooperation Council Countries The Gulf Cooperation Council Countries (GCC) consist of Bahrain, Kuwait, Qatar, UAE, Saudi Arabia and Oman. Saudi Arabia, United Arab Emirates (UAE) and Qatar designated high growth emerging market priorities

GCC GDP GCC GDP Growth and 2012 Projections GDP (nominal) 2011 ($bn)* GDP Real Growth Rate 2010 (%)** GDP (nominal) 2015 estimate ($bn)* GDP per Capita** Public Debt (% of GDP)** Public Debt country comparison to World (based on % of GDP)** Bahrain$ %$33.7$40, %36 Kuwait$ %$217.9$48, %120 Oman$664.2%$82.6$25,6004.4%130 Qatar$ %$234.8$179, %121 Saudi Arabia $ %$717.9$24, %114 UAE$ %$453.6$49, %61 UK$2, %$3,050.5$34, %23 *Source: IMF, World Economic Outlook Database, revised Aug 2011 **Source: CIA World Factbook, 2010 est

Closer look at the Age Profile Population – Age Structure and 2015 Projections (millions)* *Source: CIA, World Factbook, 2011 **Source: EIU, 2009 *** actual figure 848,016 Population (mn)* Population by age breakdown (%)*2015 Projections (mn)** UAE Saudi Arabia Qatar Oman Kuwait Bahrain

UAE Economy and Economic Plans Abu Dhabi: 2030 vision: less reliance on oil, focus on diversification and creation of a knowledge based economy. Dubai: Economic Development Plan seeks growth of 11% pa for next 10 years. Northern Emirates: Fair less well, although Sharjah and Rasal Khaimah are bases for manufacturing.

Recent Bond Issues - Dubai Examples of oversubscribed Dubai bond issuances Dubai Government - Sep 2010 $1.25bn ($500m over 5 years at 6.7%, $750m over 10 years at 7.75%) received over 370 orders of approximately US$500 billion Dubai Electricity and Water Authority - Oct 2010 $2bn (two tranches of $500 million over 6 years at 6.375% and $1.5 billion over 10 years at 7.375% 6.5 times oversubscribed Emaar prices - Jan 2011 $500mn sukuk at profit rate of 8.5% over five and a half years received $1.7bn in bids Emirates - Jun 2011 $500mn bond at 5.125%, five year maturity closed at $1bn

Key Sectors in Dubai Dubai has more limited hydrocarbon reserves, has diversified and focuses on being the: Regional Business Hub (e.g. Aggreko) Regional Logistics Hub (over 90% of all imports are re- exported) Media Hub (Media, Internet City) Leisure Hub (hotel occupancy is at 85% for 2011) Also opportunities in Education (e.g. Heriot Watt), Financial Services, Healthcare, premium Food and Drink/Textiles and ICT.

Education Opportunities With very young populations, Governments will continue efforts to create jobs and improve skills, resulting in heavy investment in education and job creation. The region is dependant on western education, with many educational institutions opening across the region.

Financial Services Opportunities The UAE is emerging as one of the key financial hubs in the region, through intermediation in Dubai and investment in Abu Dhabi. The Dubai International Financial Centre aims to be universally recognised as a hub for Institutional finance and a gateway for capital and investment to the GCC and MENA Regions as well as becoming a home for Global funds. The region has a number of sovereign wealth funds, with the UAE and Saudi Arabia having the largest funds. In addition there are a number of high net worth individuals. The Life Insurance segment is underdeveloped and Takaful (Islamic) Insurance only accounts for a small share of the industry but is seen as the driver for future growth.

Healthcare/Life Science Opportunities With a very young population and increasing western life style, GCC countries have always spent a high percentage of annual budgets on Healthcare, to address maternity care and health problems such as diabetes, which is almost endemic. This is manifested in a very active Government building programme of hospitals, clinics and associated supply of equipment and consumables. Research into the causes of these disease processes is limited, but developing. Dubai as a well connected regional hub hopes to benefit from this through Healthcare Tourism.

Food & Drink Opportunities Water is scarce in the GCC, which means that domestic agricultural production is costly. As a result GCC spending on Food Imports will more than double from $24 Billion in 2008 to $49 Billion by The emergence of a five star tourism industry in the UAE and the presence of many expats has created a demand for high end produce.

ICT Opportunities ICT is integral to enterprise and the state through e-government, e- learning, and m-banking. The large youth population is driving growth of new gadgets and mobile broadband, with smart phones in the ascendancy. The Telecom companies in the Middle East are vey powerful, involved in all stages from Infrastructure deployment to end-user entertainment, with sights set on being Global players. A strong growth in Arabic content is anticipated as 3G mobile services develop.

Some Issues to be Aware of… 51% ownership when in domestic UAE Local Partner – Choose wisely with legal advice Cost of Living – Dubai is ranked 55 th most expensive city in the world – equivalent to Los Angeles

SDI Support for Middle East Services in Scotland International Strategy Workshop Export Assessment and Preparing to Export programme Market Visits Setting up Operations Office in Dubai General advice and Contacts Market Research Organise Meetings (can accompany where appropriate) Facilitate contact with GlobalScots in market

A Cross section of Companies our GCC Globalscots work in

PROGRAMME OF KEY EVENTS FOR Creative Industries - SDI mission to GITEX Dubai 9-13 Oct 2011 Textile companies attending Index Oct 2011 Scottish Week from the 30th Oct - 4th Nov (included the Law Society of Scotland mission and an SDI Energy Mission. Dubai Air show 13th -17th Nov, 3 Scottish companies attending Life Sciences - The International Diabetes Federation congress 4-8 December World Future Energy Summit – Abu Dhabi Jan 2011 Life Sciences - SDI mission to attend Arab Health 23-26th Jan 2012 Food & Drink - SDI mission to attend Gulf Foods in Dubai from 19th – 22nd Feb 2012.

Dubai has Grown Rapidly and Continues to do so Sheikh Zayed Rd 1990 and again in 2003

THANK YOU Colin Crabbe Regional Manager Middle East Scottish Development International c/o The British Embassy Al Seef Rd PO Box 65 Dubai Mobile no;