1. Supplies for Local Projects through Equity Joint Ventures
09/10/2019
Supplies for Local Projects through Equity Joint Ventures
Successful Examples of Two German Companies in the GCC

2. BACKGROUND Two Medium Sized German Companies – Railway Suppliers
09/10/2019
BACKGROUND
Two Medium Sized German Companies – Railway Suppliers
Technology and Market Leaders
Catenary System Poles and Concrete Sleepers
Western European Markets are High Margin Markets but relatively saturated
Increasingly Global Role of German Infrastructure Companies

3. VISION Local Energy and Raw Material Supplies
09/10/2019
VISION
Local Energy and Raw Material Supplies
Success through Local Partnership
Choice of Partner
Long-Term Strategy
Genuine Specialization
Think Regional
The Path to Partnership
Business Plan and Joint Venture
Secondment and Training

4. Reasons Reasons for move to GCC Reasons For Partnership
09/10/2019
Reasons
Reasons for move to GCC
Cost Efficiency, Energy and Raw Materials
Hub into the Entire GCC Market
Emplyoment Cost
Tender/Customs Advantages
In one case: JV with System Supplier
Reasons For Partnership
Local Knowledge Counts
Local Resources
Local Administration
Costs and Control

5. APPROACH Identification of Market and Project Potential
09/10/2019
APPROACH
Identification of Market and Project Potential
Approached by Local Partner
Development and Planning
Partner and Product Due Dilience
Detailed Market Study
Business Plan
Shared Cost
Define Strategy
Secure Initial Supplies
Define Milestones

6. Challenges Transparency and Market Data Local Investment Laws
09/10/2019
Challenges
Transparency and Market Data
Local Investment Laws
Oman
Saudi Arabia
Incorporation – One-Stop-Shop
National Industrial License and Customs
Human Resources
Saudization
Omanization

7. Challenges II Contributions in Kind - Licenses
09/10/2019
Challenges II
Contributions in Kind - Licenses
Technology Transfer and Protection
Investment Protection
Dispute Resolution
Codification of Law
Enforcement
Oman
Saudi Arabia

8. Structure and Conclusion
09/10/2019
Structure and Conclusion
Flexible Distribution Structure
Regional Vehicle
Exclusivity
Suitable Level of Detail but Keep it simple
“Management Mix“
Flexibility and Cost
Local Knowledge vs. Foreign Managers
Key Issues
Personal Element
Focus on the Feasible (e.g. technology, trademark issues)