Middle East presentation IHMEC Jukka Hahlanterä

Transcription

1 Middle East presentation IHMEC Jukka Hahlanterä

2 1% = 800 busd 2

3 Easiness of doing business United Arab Emirates 21 Bahrain 66 Oman 71 Qatar 83 Saudi Arabia 92 Kuwait 96 Iran 124 3

4 MAIN INDUSTRIES TRADE BASICS Country Overview KSA Population: 29 million Population growth: 1.5% (est.) Size of country: 2,149,690 sq km GDP: $646billion (2015) GDP growth: 3.4% (2015 est.) GDP/capita (PPP): $25,642 Inflation: 3% (2015) Main cities: Riyadh,Jeddah, Makkah & Dammam Religion:: Muslim Language: Arabic 2015 Figures Finnish export: 371 Million Finnish import: 26 Million Crude oil production, petroleum refining, basic petrochemicals, industrial gases, cement, fertilizer, plastics, metals, telecommunication, construction 4

5 Executive Summary Saudi Arabia is the 20 th largest economy in the world and the largest economy in the Middle East and North Africa Region - MENA. The Kingdom is one of the world's fastest growing countries worldwide, with percapita income forecast to rise from USD $21,000 in 2015 to USD $33,500 by It has substantial cost advantages due to the low domestic cost of energy and industrial land due to generous subsidies and incentives. It provides duty free access to other GCC and MENA economies and enjoys good transport and infrastructure links which will soon be supplemented by a national rail system. Despite the low price of oil being experienced in the market, GDP is forecasted to grow 1.9% in Oil prices now at 60+ level.

6 Business Opportunities KSA Oil, gas and petrochemicals Power, including nuclear and renewable energy Water and wastewater Education, training and human capital development Mass transport infrastructure including new rail, metro and bus links Environmental technology and services ICT Consumer and luxury goods Defense and security / cyber security Healthcare and Life Sciences Mining Very big known reserves Tourism

7 UAE 7

8 General facts UAE Total area of UAE is 83,600 sq km (equivalent to Austria) Abu Dhabi 62,340 sq km Dubai 4,100 sq km Total population is 9,5 million Abu Dhabi 3,0 million Dubai 2,6 million In 1971 the total population was Expats make up to % of the population

9 UAE Economy Main industries Oil and petroleum Fishing Cement Ship yards Construction material Fertilizers GDP 400 b$ GDP growth was 1,3 % in 2017, forecast for 2018 is 3,4 % FDI 10 b$

10 Business opportunities UAE Cleantech Water management Renewable energies Smart Grids Education Exam exchange Finnish CV schools Health Care Preventive health care Rehabilitation Medical Technology Bioeconomy W2E

11 Gulf area business opportunities WATER White and grey water management Ground water Lakes ENERGY AND RENEWABLE ENERGY (incl. nuclear power) Solar energy W2E Smart Grids and Smart metering MINING Mining and refining technology HEALTH CARE Hospital and clinical equipment Preventive health care Pharmaceuticals EDUCATION Vocational training PRODUCTION EFFICIENCY

12 GCC countries visions Diversification of industry base away from dependance on petrochemical industry Welfare of citizens and inhabitants Health: life style diseases Education: vocational training for young people Sustainable infrastructure and construction

13 BF services in ME Offices in Dubai and Riad (TF commercial attache in Tehran) Go-to-market services Advice Local networks Business opportunities Invest in Finland Visit Finland

14 7 things to remember Do not rush while greeting people Building trust is important since personal and professional relationships are not considered separate Remember that verbal commitments are valued more than contracts and agreements (honesty) Have patience before and during business meetings Negotiations will be tough and sales cycles will be long Best way to communicate is face-to-face Avoid business talk at social gatherings

15 Notes NOT countries It is not what you know, it is who you know Very competitive environment Not necessarily better prices Get yourself in and you stay in Local presence

16 Service Portfolio for Finnish Organizations Discover Opportunities Innovate Go to Market Scale Your Business Funding Build Your Network FUTURE

17 Go to Market Plan your international go-to-market strategy, i.e. how do you deliver your value proposition to customers and achieve competitive advantage. Define your target market, target customers, value proposition, product portfolio, business model, distribution channels and marketing Advice for go-to-market and international growth Find customers and partners Get feedback of your value proposition from customers Establish your business in target markets Work with consultants or experts in targets markets Market entry services: Global Access Program by UCLA, Gaselli accelerator program, Nordic Innovation House (USA) FinChi Shanghai, Fudan ilab, Tshinghua Finlab (China) NUS Mgmt (Singapore) Funding for participation in global accelerator programs Expert Search Digital service Find consultants and other experts across the world Shipping handbook Digital service and physical book Information on shipping requirements to countries across the world Business delegations High-level and highimpact support for your market entry and customer/decision maker introductions BF programs Enter target markets effectively by meeting buyers, participating to trade fairs, and building your offering together with other Finnish companies Funding Explorer funding TF trade fair grant Introbot/X-bot Business Finland digital selfservice

18 BUSINESS FINLAND S GLOBAL NETWORK 40 locations globally and 20 in Finland Silicon Valley Stamford Washington DC Mexico City Lima Rio de Janeiro Sao Paolo Santiago de Chile Helsinkiy Stockholm Oslo Copenhagen St. Petersburg Moscow Warsaw Brussels London Munich Vienna Bucharest Madrid Istanbul Lagos Abuja Nairobi Johannesburg Almati New Delhi Dubai Ryiadh Ho Chi Minh Kuala Lumpur Jakarta Beijing Shanghai Taipei Guangzhou Seoul Tokyo

19 WORLD IDEAS

20 Jukka Hahlanterä Commercial Counsellor, Middle East Business Finland Mobile: +971 (0) Office: Tel: Business Skype: Finland Trade Center, Embassy of Finland Level 05, Standard Chartered Tower Dubai Downtown Regus Office Room 505, PO Box Dubai, UAE Internet: Jukka.Hahlantera@businessfinland.fi