السالم علیكم و رحمة اهللا و بركاتھسیداتي سادتي
May the peace of God, mercy and blessings be with youLadies & Gentlemen
ASAE International ConferenceOpening Doors to Middle East
Ajay BhojwaniDirector – Abu DhabiMCI Middle East7th March 2008
Connecting Great Ideas and Great People
Agenda
§ Brief Introduction
§ About the Region§ Introduction to the region§ Key Drivers / Economic Engines and forces behind them§ Why the region ?
§ Quiz
§ Connecting Globally
§ Case Studies (Association Activity in Middle East)§ Congress / Conference§ National Association
Agenda
§ Desert Logic – Trading in Arabia
§ Group Discussion
§ Expanding into the region§ Congresses / Events§ Setting up offices§ Working through a partner
§ Quiz
§ Questions & Answers
Introduction
§ Background§ Link to Associations§ Breaking into Middle
East§ Dubai, 2006§ Abu Dhabi, 2007§ Qatar, 2008
§ Climbing the Sand Dunes§ Desert History
About Me
About the Region
The Region
§ Middle East
§ Gulf Cooperation Council (GCC)
§ Arab World
§ Middle East and North Africa (MENA)
§ Europe, Middle East & Africa (EMEA)
The Region – Middle East
The Region – GCC
Kingdom of Saudi Arabia
Kingdom of Bahrain
United Arab Emirates
Kuwait
Qatar
Sultanate of Oman
Country Profiles
2.72.6 309,500 MuscatSultanate of Oman6
1.10.9 11,437 DohaQatar5
3.43.2 17,818 Kuwait CityKuwait4
5.24.9 77,000 Abu DhabiUnited Arab Emirates3
1.10.7 711 ManamaKingdom of Bahrain2
25.925.3 2,240,000 RiyadhKingdom of Saudi Arabia1
(In million) (In million) (In sqm)
Estimates for 2007Population in 2006 Area
CapitalCountriesS.No
Source:
AMEInfo
Kuwait Finance House
Key Drivers / Economic Engines
§ United Arab Emirates – Abu Dhabi & Dubai
§ Kingdom of Saudi Arabia – Riyadh & Jeddah
§ Qatar – Doha
§ Kingdom of Bahrain – Manama
Forces Behind the Key Drivers
§ Economic Growth
§ Financial Strength
§ Infrastructure Development
§ Tax Free Environment
§ Oil & Gas Industry Support
Economic Growth
4.00%6.50%3.50%6.20%2.10%7.10%Kingdom of Bahrain
6.10%6.20%5.70%5.50%3.20%6.00%Sultanate of Oman
12.60%10.20%14.00%8.50%11.80%7.20%Qatar
5.40%5.10%5.00%3.90%3.00%7.60%Kuwait
5.00%5.20%4.10%3.10%2.20%4.30%Kingdom of Saudi Arabia
7.60%9.00%8.70%8.60%9.30%9.40%United Arab Emirates
Inflation (%)Real GDP (%)Inflation (%)Real GDP (%)Inflation (%)Real GDP (%)
Predictions for 200820072006Countries
Source: Monica Malik, Economist, EFG - Homes
Booming Industries
§ Construction and Real Estate
§ Tourism and Events
§ Oil & Gas
§ Banking & Finance
§ Healthcare
Economic Growth – Top 10 in 2008
8.10%Vietnam101.20%United States of America
8.50%Panama88.50%Georgia8
8.60%United Arab Emirates79.20%Kazakhstan69.50%Qatar5
10.10%China411.10%Eqatorial Guinea317.40%Azerbaijan221.10%Angola1
GDP Growth (in%)CountryRank
Source: Economist Intelligence Unit
Financial Strength
§ Sovereign wealth funds§ Project Financing & FDI’s§ Oil & Gas§ Construction§ Tourism
§ Corporate HQ’s § Oil & Gas§ IT§ Healthcare§ FMCG
Infrastructure - Bahrain
Infrastructure – Saudi Arabia
Infrastructure - Qatar
Infrastructure - UAE
Infrastructure - UAE
Aviation
Sources:
Business Intelligence Middle East
Center for Asia Pacific Aviation (CAPA)
Annual average growth of passenger traffic in Middle
East is predicted to remain strong at 6.9% in
comparison to global average of 4.8%
Investment in Aviation
§ Airport Development valued at over $43 billion in the
gulf
§ UAE - $16.8 billion
§ Saudi Arabia - $11.3 billion
§ Qatar - $5.5 billion
§ Over 900 aircrafts to be purchased
Source: Gulf News, 24 Feb 2008
Other forces
§ Tax Free Environment
§ Oil & Gas Industry Support
§ Safety & Security
UAE took 10th position globally in safety and security,
resulted in being considered safer than the UK at 44th
and USA at 45th
Source: World Economic Forum (WEF)
Why the Region ?
§ Integrated international facilities
§ No VAT or Income Taxes (GCC countries)
§ Multi cultural environment
§ Hub between East and West
§ Growth of tourism
§ Government support for non-profit organizations and associations
§ Buoyant Market (Gulf states, Greater Middle East, Sub Continent and North Africa)
Quiz
Quiz
Saudi Arabia
Syria
Oman
Yemen
...
.
Quiz
The Muslim pilgrimage to Mecca is… ?Hajj
What is the language spoken in the region ?Arabic
Quiz
Name the city where this hotel is located ?
Dubai, UAE
Connecting Globally
Fundamental Differences
§ People
§ Culture
§ Art & Music
§ Religion
§ Economies
§ Politics
§ Values
§ Food
Comedy…(family values)
Globalization
New York / Dubai / London ?
Integration
Case Studies
Association Activity in the Region
§ Congress – FIATA 2007§ 1,200 pax§ 3 days§ 2 social events§ Spouse programme§ Pre & post tours§ Inaugurated by the ruling family§ Local host committee§ Government involvement & endorsement§ Local Sponsors and Attendance
Association Activity in the Region
§ Emirates Medical Association (EMA)
§ Membership
§ Events / Conferences
§ Journal
§ Funding & Sponsorships
§ Government Support
§ Legal Existence / Legislation
§ Influencing decisions on policy level
Desert Logic
Desert Logic – Trading in Arabia
§ Friday is weekend !
§ Be Patient
§ Politics & Religion discussions are taboo
§ Handshakes
§ Weekends / Work during off hours
§ Business meetings with Arabs
§ Simple and easy to understand communication language
§ Flexibility with Contracts
§ Time lines, Details on scope of work
§ Handshake agreements
§ Participation of government organizations
§ Business Models
§ Financial Discussions and Obligations
§ Over servicing of customers / members
§ Last minute, last minute, last minute…
Desert Logic – Trading in Arabia
Group Discussion
Group Discussion
§ Form your group
§ Each group to discuss the opportunities and threats of
expanding into the region
§ Present top 1 opportunity and threat to the audience
Expanding into the Region
Expanding into the Region
Holding a meeting / congress
§ Appoint a local host committee or representative
§ Engage a PCO / DMC with complete local knowledge and relationships
§ Partner with a governmental or national association
§ Get government endorsement and support
§ Address local or regional issues in the programme
§ Prepare a good budget due to rise in hotel and venue costs
§ Ensure regional press and media coverage
§ Be prepared for last minute changes and additions
Convention Venues in the region
Facts – Hotels in the region
168,684 147,188 120,037 90,202 CumulativeTOTAL
26,204 24,839 23,035 19,261 CumulativeKingdom of Saudi Arabia
12,622 11,382 9,372 6,068 CumulativeQatar
8,296 7,496 6,547 5,884 CumulativeSultanate of Oman
6,032 5,472 5,027 4,225 CumulativeKuwait
10,130 8,676 7,663 6,505 CumulativeKingdom of Bahrain
105,400 89,323 68,393 48,259 CumulativeUnited Arab Emirates
2010 2009 2008 2007 StatusCountry
Region's Hotels & Serviced Apartments - Number of Rooms - By Country (Projected)
Source: TRI Hospital Consulting
Number of Hotel Rooms in New York (2007) – 75,000
Increase of less than 10% y-o-y (2010) – 99,825
Hotel Rooms (2007-2010)
118%
56%
43% 41%
108%
36%
0%
20%
40%
60%
80%
100%
120%
% Increase
UAE Bahrain Kuwait Oman Qatar Saudi Arabia
Countries
Source: TRI Hospital Consulting
Expanding into the Region
Setting up offices
§ Local Partner Approach / Free Zone Approach
§ Office Space
§ Legislation§ Registration
§ Incorporation
§ Taxation
§ Banking
§ Human Resources
§ Build relationship with government and industry leaders
§ Marketing and attracting members
§ Be prepared to spend time in traffic
Free Zones in UAE
§ Over 18 free zones§ Internet City
§ Media City
§ Knowledge Village
§ Jebel Ali
§ Ajman Free Zone
§ And many more
§ Incorporation
§ Legislation
§ Office Space
Expanding into the Region
Operating through an Association Management Company§ Quick start§ Global expertise, local experience§ Local relationships§ Operational Benefit§ Financial § Technology § Human resources
§ Proven Results§ One Stop shop solution
Keeping track of Middle East
Keeping track of Middle East
Keeping track of Middle East
Quiz
Quiz
Jordan
UAE
Kuwait
...
Quiz
Where was the 15th Asian Games 2006 held ?Doha, Qatar
Where is the Formula 1 Race held every year in the Middle East ?Bahrain
Quiz
What is the national sport of Middle East countries?Soccer
Can you name the tallest building being built in Dubai ?Burj Dubai
Questions & Answers
Contact information:
Ajay BhojwaniDirector – MCI Abu DhabiPhone: +971 50 150 5235E-mail: [email protected]: www.mci-group.com
Connecting Great Ideas and Great People