Over the past four years, the UAE has been impacted by geopolitical tensions and challenges including a decline in the performance of the global economy, slowing global trade and uncertainty over world economic policies

Diversifying to win in the global economy

ONE clear manifestation of the times was the fall in world oil prices and the unlikely possibility that the UAE will see a return to the oil price peaks of the past. The UAE regarded this as an economic opportu-nity rather than a threat, having adopted a diversification policy when oil was trading above $100 a barrel.

The Abu Dhabi Economic Vision 2030 provides for a shift from dependency on hydrocarbon exports towards an advanced, knowledge-based economy.

Multiple diversification initiatives are already well-advanced, with Abu Dhabi’s tourism, manufacturing, energy, transpor-tation, logistics and media sectors achiev-ing a remarkable transformation over the past few years.

While Dubai perhaps attracts more headlines for its ambitions to attract 20m tourists annually, by 2020, Abu Dhabi is also on track for transformation.

The emirate’s economy is forecast to grow by 3.9 per cent in 2018. Inspired by a vision to build a sustainable and diversi-fied, high value-added economy well inte-grated into the global marketplace, Abu Dhabi has developed an open, efficient and effective investment regime validating its position as a regional hub.

The UAE is the second largest econ-omy in the Arab world after Saudi Ara-bia, while the changing landscape of the region’s investment map, coupled with its growth potential, is making it an increas-ingly favoured investment destination.

This success is the fruit of continuing work by UAE governments to improve its legislation, legal system and government processes and build an attractive business cli-mate that has the confidence of investors and offers to expand businesses opportunities.

In Abu Dhabi, for example, the Gov-ernment has been following a vibrant

roadmap, targeting non-oil segments to capture more than 60 per cent of the over-all economy by 2030.

Engines for growth have now been iden-tified and prioritised. In the energy sector, plans for the development of unconventional gas resources have been approved as Abu Dhabi National Oil Company (ADNOC) seeks to enable future value-creation and make international investments that will position it as a global player in the down-stream market.

In property, Abu Dhabi has laid the foundation for a regularised, progres-sive sector capable of expanding, attract-ing investments and adapting with market changing conditions.

The real estate sector accounted for almost 8 per cent of Abu Dhabi non-oil GDP at con-stant prices during the period Jan-Sept 2017, compared with 7.6 per cent in 2016. While Dubai recorded Dh58 billion ($15.8 billion) in property sale transactions in the first quar-ter of this year and real estate accounted for 7.1 per cent of its GDP in 2017.

The sector maintains its historical posi-tion as the leading recipient of foreign direct investment (FDI), which flows into Abu Dhabi, accounting for 27 per cent of overall FDI stock.

“Given Abu Dhabi’s leading reputation as one of the GCC’s real estate hotspots, backed by the government’s on-going well-diversi-fied range of projects, the way ahead looks optimistic, capitalising on the maturing nature of UAE’s property market in general,’ says Saif Mohammed Al Hajeri, chairman of the Abu Dhabi Department of Economic Development, (ADDED).

In tourism, Abu Dhabi is investing to achieve its visitor targets, with ambitious plans for Saadiyat Island and Yas Island. Elsewhere in the UAE, new attractions include the manmade island of Bluewaters

just off Jumeirah Beach and Azizi Riviera, a mega project on the banks of the Dubai Canal, due for launch in 2019.

In financial services, opportunities are being developed in new and emerging areas, capitalising on growing demand for sophisticated sustainable and green finan-cial products.

Abu Dhabi and Dubai’s community of small and mid-sized firms is being nurtured, with entrepreneurs, business owners, start-ups and venture capitalists given a flourish-ing environment in which to grow.

Mr Al Hajeri says: “I am strongly con-fident that Abu Dhabi’s on-going efforts are increasingly capable of promoting a more competitive investment climate, to attract both local and foreign investors, offering an optimum environment for businesses to flourish.”

UAE’s founding principle in August 1966 was that real wealth is not material gain but is found in the people who will build the future of their nation.

Some 52 years later, founding father Sheikh Zayed’s proclamation has become his legacy. For the anniversary this year, a 140m mural was unveiled in Dubai, con-veying themes inspired by the UAE Found-ing Father’s values of wisdom, respect, sustainability and human development.

Recent announcements by the UAE Government have included thousands of new jobs, the relaxation of some immi-gration rules and a Human Development Report that plans to increase the number of working women in the nation.

Nigel Green, the founder and CEO of financial advisers deVere Group, believes that thanks to some of these moves Dubai and Abu Dhabi could soon join London, New York and Hong Kong in the world’s top 10 global financial centre rankings.

He says: “Dubai and Abu Dhabi are per-

ennially popular destinations for ambitious expatriates looking to embark upon or fur-ther their careers because of the incredi-ble possibilities offered in terms of finance, trade and commerce, plus the famous ‘can do’ attitude and the low-tax environment in these destinations.

“But they will become even more attrac-tive locations for overseas talent thanks to the government passing new laws that allow expats to stay on in the UAE long after they retire.

“With Dubai and Abu Dhabi becoming ever-more appealing relocation destina-tions, recruiting more top talent here will inevitably become easier for companies based in these emirates.

“Dubai is already recognised as one of the most powerful financial centres in the world. But this new legislation will not only galvanise this position, but signifi-cantly strengthen it.”

Earlier this year, Dubai was revealed as the number one city for graduates seeking a career in financial services in an annual deVere Group survey. London didn’t make the top ten.

Security is also being taken seriously,

with Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi, meeting with Gen-eral Raheel Sharif, Pakistan’s former chief of army staff, to discuss action to uproot ter-rorist organisations and review work carried out by the Islamic Military Counter Terror-ism Coalition.

Sheikh Mohammed said: “The UAE con-tinues to work with regional and interna-tional partners to confront terror groups and all extremist ideas that spread chaos and unrest in the world.”

Practical, on-the-ground measures are facilitating this vision. Some banks and sov-ereign wealth funds have been consolidated to improve productivity, efficiency and qual-ity, enhancing the Emirate’s competitiveness.

ADDED has invested in simplifying the licensing process with the introduction of risk-based economic activity classifica-tion, remote validation and e-services and smart applications that eliminate time and geographic boundaries.

The Government has also drawn up a plan to create a friendly business environ-ment, facilitate access to finance and provide a solid basis for the implementation of pub-lic-private sector partnership projects.

It is to be hoped that such initiatives and projects will have a significant impact on the stature and reputation of the UAE as an ideal destination for conducting business as it moves on from simple diversification from oil and gas and attempts to build a sustainable, knowledge-based economy. Long after the 2020 and 2030 visions have been achieved, this needs to be the UAE’s lasting legacy.

THE Abu Dhabi Investment Office has revealed that it is working on the intro-duction of a PPP Framework to bolster FDI inflows and enhance the private sec-tor’s participation in the creation of urban infrastructure and the provision of ser-vices in education, healthcare, housing and transportation.

ADIO, which operates under the Abu Dhabi Department of Economic Devel-opment (ADDED) to support investors in making commitments in line with Abu Dhabi’s Economic Vision 2030, is working with government and private sector part-ners to use financial, technical, and regu-latory criteria to screen proposed projects and assess their pre-feasibility for PPP.

Forthcoming details of the pipeline of future and shortlisted projects are seen as building interest in a new stream of invest-ment opportunities in all sectors of the economy and society that are attractive and mutually beneficial to investors and the government.

ADIO provides a list of strategic invest-ment opportunities that supports and com-plements the Economic Vision 2030’s targeted sectors including manufactur-ing, tourism, media, financial services and insurance, transportation and logis-tics, education, health, energy and utili-ties, ICT and communication, real estate and construction.

Abu Dhabi comprises approximately two-thirds of the UAE’s $350 billion economy and competes for foreign direct investment sectors including manufactur-ing, education, renewable energy, logistics and tourism.

The capture of 37 per cent of 2017 FDI flows into The Middle East and North Africa region has helped to double UAE’s FDI stock from $64 billion to $130 billion since 2010.

Capitalising on recent enhancements to the business investment regulations in 2018, the emirate expects to achieve annual FDI growth rates exceeding 10 per cent, and maintain a majority share of UAE FDI inflows over the next few years.

European countries were the highest contributors to Abu Dhabi’s total FDI in recent years, but the emirate is now wit-nessing a substantial rise in Chinese investments in its Industrial Free Zones.

Ahmed Bin Ghannam, ADIO Acting Chief Executive, said, “Our ambition is to channel FDI promotion efforts towards non-oil sectors and enhance private sector participation in Abu Dhabi’s targeted sec-tors where there are growing investment opportunities. Our goal is to boost eco-nomic growth and competitiveness.”

“Current global economic and invest-ment conditions suggest a positive out-look in the short and medium term. Investors are benefiting from the synchro-nisation of stable interest rate levels and abundant liquidity.”

In addition to general growth in global equity markets, new investment opportuni-ties are emerging, especially in the technol-ogy sector. Innovations in technology offer a growing capacity to analyse large vol-umes of data, a trend that is leading to the development of new productivity tools that enable investors to leverage opportunities and better manage risks.

“To achieve Vision 2030’s goals, there is a special emphasis on building an open, effi-cient, effective and globally integrated busi-ness environment,” says Mr Bin Ghannam.

“This involves maintaining a disciplined fiscal policy and a resilient monetary and financial market environment. Abu Dhabi is also committed to enhancing its advanced infrastructure, improving the efficiency of the local labour market, and nurturing the highly skilled and productive work-force that is necessary to meet the emirate’s 2030 goals.”

As part of the longer-term goal of ensuring non-extractive activities contrib-ute to 64 per cent of the economy by 2030, the government is resolute about encour-aging and attracting investments to ensure the success of this diversification strategy.

The measures undertaken to sup-port this strategy includes the develop-ment of one of the world’s most advanced transport and communication infra-structure and the creation of a network of investment zones serving local and international businesses.

The strength and advantages of Abu Dhabi’s business environment include zero personal income tax, no exchange controls and no restrictions on repatri-ation of funds; a stable and well-capi-talised banking sector; a strategic geo-graphical location, a flexible labour force, excellent infrastructure, and access to low-cost energy.

ADIO provides a digital platform to inform, engage and attract inves-tors to Abu Dhabi, organising trade del-egations and comprehensive investor support services.

Mr Bin Ghannam is confident that the new investment law, which permits 100 per cent ownership to foreign companies outside of the emirate’s free zones, will encourage more international investors to start operations in Abu Dhabi.

The recent AED 50 billion ($13.61 bil-lion) stimulus package for Abu Dhabi announced by Sheikh Mohammed Bin

Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, seeks to enhance the emir-ate’s business environment, provide new job opportunities, attract new investments and technologies, support local indus-trial production and encourage SMEs to improve their competitiveness both locally and internationally.

“We recognise that investors need clar-ity and support when dealing with govern-ment entities,” says Mr Bin Ghannam.

“To help make the process of setting up a business in Abu Dhabi as smooth and hassle-free as possible, ADIO provides a full portfolio of world-class integrated ser-vices to current and prospective investors.”

“We have direct communication and close cooperation with key government players and partners from both the public and private sectors, which helps us facil-itate the start-up process for new busi-nesses in terms of regulations, facili-ties and access to data needed relating to statistics, laws, trade agreements, and business procedures.”

UAE’s founding principle in August 1966 was that real wealth is not material gain but is found in the people who will build the future of their nation

There is a special emphasis on building an open, efficient and globally integrated business environment and nurturing the highly-skilled and productive workforce

GLOBAL VISION: The vibrant cities of Abu Dhabi and Dubai are ready for overseas investment growth

SOLID FOUNDATIONS Abu Dhabi is set to create sustainable future growth

Capital Gate building, a Guinness World Records-certified structure which inclines 18 degrees

INTRODUCTION

INTERVIEW

The initials PPP may have been sullied in the UK and globally by public sector outsourcing contracts that have gone sour, but Public Private Partnerships could be about to take off in Abu Dhabi

A new era of investments in Abu Dhabi

Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi

Travel & Trade Hub for global Visitors Page 3

Mission to MarsUAE collaborates in space Page 8

Portal to the UAEFree trade zone attracts global investors Page 7

World Business Times is a leading global provider of business intelligence and insight 26 September 2018

A WORLD BUSINESS TIMES REPORT PRODUCED BY:

Vesna Obradovic, Managing Director & Editor; Andrew Cave, Editor; Sarah Newton Boyd, Michael Mursell and Tina Wei, Creative Directors & Production

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LAST year’s opening of Louvre Abu Dhabi welcomed visitors to the first uni-versal museum in the Middle East, and Saadiyat Cultural District aims to follow that up by becoming a nucleus for global culture, attracting local, regional, and international visitors with unique exhibi-tions, permanent collections, productions, and performances.

The first cultural district of its scale and scope in the UAE, Saadiyat’s ambi-tion is to become a global hub, housing the world’s largest single concentration of premier cultural assets. Alongside Lou-vre Abu Dhabi will be Zayed National Museum and Guggenheim Abu Dhabi, and Mohamed Khalifa Al Mubarak, chairman of Abu Dhabi’s Department of Culture and Tourism (DCT), believes these cultural assets, combined with the emirate’s established museums and insti-tutions, will help develop Abu Dhabi as a global destination for cultural tourism.

“We are committed to fostering a thriv-ing international cultural hub that engages both residents and tourists,” he says, “firstly by highlighting the emirate’s rich cultural diversity and historic heritage, but also by establishing an interactive dialogue between Abu Dhabi and the world, creat-ing its own cultural characteristics around its urban and contemporary landscapes.

“We see enormous opportunity for the travel sector across the Middle East, and Abu Dhabi has all the requirements to seize a share of this development.

“Last year, the MENA region saw a 5% increase in visitors compared to 2016 and we expect this growth path to continue.”

“By 2030, it is estimated that the Mid-dle East will be one of the top three regions globally that will see growth in international travel.”

Abu Dhabi is aiming to welcome an increase in tourist numbers by 500,000 to a record 5.5 million this year and target-ing 8.5 million visitors by the end of 2021.

This will still leave the emirate well behind its neighbour, Dubai, which has been focusing on tourism for longer. In 2017, Dubai increased its number of tour-ists by 6.25 to 15.8 million, putting it on track to meet its target of attracting 20 mil-lion visitors annually from 2020.

Abu Dhabi seeks a higher quality trav-eller over mass numbers and has identi-fied adventure and medical tourism as key areas of focus. It is also investing in tech-nology and innovation to create a seam-less and hassle-free traveller experience.

Passengers arriving at Abu Dhabi International Airport are now able to obtain tourist visas for 96 hours within 15-30 minutes.

New initiatives include a key asset from DCT’s partnership with Miral, Abu Dhabi’s destinations management com-pany, on Yas Island: Warner Bros. World Abu Dhabi.

This opened in July and is one of the world’s largest indoor theme parks, offer-ing 29 rides, family-friendly attrac-tions and a full calendar of shows and live performances.

Tourism is highly vulnerable to shocks and economic slowdowns but Mr Al Mubarak believes Abu Dhabi is well-prepared.

“Any country must be prepared to handle global political or economic tur-bulence in order to maintain stability,” he says. “The UAE has long been an oasis of stability and peace in the region. Despite macroeconomic headwinds, more than 2 million guests visited the emirate since the beginning of the year until the end of May. We believe we are on the right track.”

We are committed to fostering a thriving international cultural hub that engages both residents and tourists

CULTURAL VISION: The Louvre in Abu Dhabi welcomes visitors from home and abroad

Culture is at the centre of Abu Dhabi’s efforts to grow its tourism industry

Abu Dhabi seeks to join culture club

CULTURE

KHALIFA Qubaisi, chief operating officer of Abu Dhabi National Exhibition Cen-tre, the multi-award winning, 73,000sqm indoor exhibition space says: “We’re see-ing large numbers of event organisers coming from the US and Europe, trying to launch new conferences and exhibitions and we’ve been very successful this year.

“We’re pleased that we are achieving our primary objective, which is increasing tourism in Abu Dhabi.

“The environment is very robust. In 2017, we contributed around Dh3 billion ($816.7 million) from cultural impact, hosting a large number of events includ-ing the World Diabetes Conference, which was attended by 8,000 delegates. While there’s still tough competition from more established European and US destinations, the UK’s events industry is worth over £40 billion; but there’s no doubt that exhi-bition spaces like these will attract inter-national interest.

Next year, Abu Dhabi will play host to The World Energy Conference and The International Road Congress Conference, which are both expected to bring in more than 5,000 delegates, while the Special Olympics World Games are also antici-pated to be a major draw.”

Mr Qubaisi says: “We have a list of the top 100 international associations that we want to target and we work closely with our partners to approach them and convince them of the importance of hold-ing their event in Abu Dhabi.”

“It is not only about the economic impact; it’s about the transfer of knowl-edge. When you have a conference of 8,000 delegates discussing the impact of diabetes, it’s a good opportunity for doc-tors and scientists to exchange ideas.”

UAE means businessBusiness visitors have a role to play in helping Abu Dhabi meet its visitor’s targets and the emirate is working hard to attract conferences, congress and association meetings in the education, medical, transport, and environmental sectors that have been identified as part of its vision

Hallway of Abu Dhabi National Exhibitions Company

Abu Dhabi aims to welcome an increase in tourist numbers by 500,000 to a record 5.5m tourists

By 2030, it is estimated that the Middle East will be one of the top three regions globally that will see growth in international travel

Targeting 8.5m visitors

20212018 2030

Mohamed Khalifa Al Mubarak, Chairman of Abu Dhabi’s Department of Culture and Tourism (DCT)

The highlighted ten-year residency visas will be available for qualified investors, entrepreneurs and specialists holding post-graduate degrees in medical, technical and scientific research fields are expected to be implemented by the end of this year

IN fact, sidelining cash is official govern-ment policy. The UAE’s Vision 2021 pro-ject, launched in 2010 to guide the Emir-ates towards ambitious socio-economic goals by 2021, identified digital commerce and cashless transactions as key priorities.

As a result, even though 75 per cent of the country’s transactions still involve cash, the move towards a cash-free envi-ronment is gathering pace.

For example, Dubai motorists who pay driving fines in cash at a transport author-

ity centre pay Dh100 ($27) more than those paying digitally.

And those Dubai motorists don’t really have an excuse for paying in cash. Aside from the usual ways of settling up, includ-ing online payments, there are even stand-alone kiosks where the penalties can be paid.

About 1,000 of the automated kiosks can be found in places such as airports and shopping malls, a physical sign of the innovation being encouraged in the pay-

ments industry throughout the UAE.Developments in smartphone technol-

ogy for payment processing have been adopted wholeheartedly in the region. As a result, the UAE now has the high-est mobile spend per purchase globally, according to accountancy group KPMG.

According to a recent Gartner report, 88 per cent of UAE’s population are now

internet users with smartphone penetra-tion at 78 per cent. Yet just 15 per cent of the businesses in the UAE have an online presence and as much as 90 per cent of online purchases are being shipped from overseas. These statistics clearly show the opportunities that lie ahead for online commerce to grow, with a potentially seismic shift from traditional bricks and mortar retail to e-commerce.

Guillaume Pousaz is chief executive of Checkout.com, an online payment solu-tions provider which is taking advan-tages of technological advances to make accepting money in any form easier and quicker for merchants.

He says: “We’ve seen smartphones change commerce drastically on a global scale, and the UAE is no exception. This transformation has completely altered the way products and services in this region are purchased.”

He goes on to comment: “Want to order takeout, buy new jeans or book a roman-tic spa day for two? Mobile is the plat-form of choice.

“The UAE is rapidly adopting new technology. We enabled merchants to offer Apple Pay as soon as it became available in the region, in October 2017, two years after its initial US launch. “Apple Pay in the UAE is a game-changer for mobile-centric shoppers in the region – an area that is in the top five globally for purchases made via mobile devices.

There is still work to be done, but Checkout.com reports that the pace of change is quickening. The company, founded in 2012, expanded into the UAE, where Switzerland-born Mr Pousaz is

based, in 2013 with an office in Dubai.It now has eight offices in the US,

Asia and Africa, with customers includ-ing Simba, Yoyo, EasyGroup, Deliveroo, TransferWise and Virgin Active. The group plans to quadruple the size of its operations over the next few years.

It says that the UAE’s payments indus-try is innovating rapidly, not because tra-ditional banks are pushing change, but because consumers are embracing it.

Mr Pousaz says: “Along with this change, there are naturally new business requirements and customer pain-points that need to be addressed. “E-commerce in the UAE is already huge and is still growing, but there remain many fric-tion points that make it difficult for for-eign companies to process online pay-ments. He added: “As a fast-growing market in the Middle East, online retail will be fuelled by the availability of ever more convenient and diverse online pay-ment methods. “Accordingly, consumer expectations are shifting quickly. Keep-ing on top of these payment innovations and fulfilling these consumer demands are key for merchants in the area.”

As the UAE develops, innovation in payments will be vital to keep pace with international rivals, streamline efficiency at home and ease consumers’ lives.

As Mr Pousaz points out, as consumers and businesses become comfortable with new ways of exchanging money, they begin to expect nothing less.

The UAE now has the highest mobile spend per purchase globally, according to accountancy group KPMG

Apple Pay in the UAE is a game-changer for mobile-centric shoppers in the region – an area that is in the top five globally for purchases made via mobile devices

THIS status quo appears to be coming to a much welcome end with a range of new measures announced in May, such as a ten-year visa and a separate series of changes focused on expatriate employees’ families and international students unveiled in July.

The changes, announced in Dubai after a Cabinet meeting chaired by UAE vice-president and prime minister Sheikh Mohammed Bin Rashid Al Maktoum, were aimed at reinforcing the UAE’s posi-tion as a top destination for global senior talent and international investors.

The most significant change is the high-lighted ten-year residency visas that will be available for qualified investors, entrepre-neurs and specialists holding post-graduate degrees in medical, technical and scientific research fields expected to be implemented by the end of this year.

Alongside the long-term visa pro-posal, the UAE announced sweeping new reforms to allow 100 per cent for-eign ownership in companies, even those outside of free zones, and long-term res-idence visas for skilled and creative employment categories.

Students studying in the UAE can now obtain five-year residency visas, while those deemed to be exceptional artists or trades-persons have the opportunity to obtain ten-year permits.

There is also an extension of residency of two years after graduation for non-na-tional students sponsored by their expa-triate parents after the completion of their graduate studies to allow them ample time to start a business, join the workforce or take time off to decide on career paths.

Announcing the changes, Sheikh Mohammed stated that the UAE offers an “open and tolerant living envi-ronment, deeply-rooted values and excellent infrastructure”.

He added: “Our flexible regulations attract international investments and

exceptional talent. The UAE will always shine as the land of opportunities.”

In July, meanwhile, a raft of new visa rules was announced, intending to cater for a broader segment of UAE society, facilitating visas for visitors, residents, families and people overstaying their reg-ular visas.

Transit passengers are now exempted from all entry fees for the first 48 hours, while transit visas can be extended for up to 96 hours for a fee of Dh50 ($14).

Also, a new six-month visa has been introduced for job seekers who over-stay their visa but still wish to work in the country.

The aim of the new visa regime and the rules relaxations is a response to the need for a more flexible work environment required to enhance the UAE’s position as a technology, design and finance hub and cement it as the destination of choice in the Middle East for talented and ambi-tious professionals.

According to the UAE government’s 2017 Annual Economic Report, the UAE has a labour force of 6.3m, with 91 per cent of the total male population above the age of 15 in work. The rate of partic-ipation of women in the UAE workforce was more than half the male proportion, at about 41 per cent of the total female population, one of the highest in the Middle East.

Currently, the top four sectors by work-force are public administration, defence, wholesale and retail trade and construc-tion. The new visa regime intends to change this by promoting hi-tech and innovation “transformative industries” that require young, multi-lingual, mobile professionals with career ambitions and multinational options.

Although the UAE still has some way to go on permanent residency and citizen-ship paths, with many groups of work-ers still unable to apply for these rights, the changes align with the Government’s “Emiratisation” policies to increase the employment of local citizens.

The second phase of the Government’s

Emiratisation and direct employment programme will see 3,500 jobs made available in the financial, banking, insur-ance, retail and tourism sectors. An ear-lier phase covered aviation, transport, IT, real estate and services and secured 5,740 positions.

Combined with the visa changes, this should help the UAE compete with other hotbeds of talent, such as Hong Kong, Singapore and Silicon Valley. It is a much welcome change for long-stand-ing Expats who feel they can finally lay down a modicum of roots in their adopted country.

Future of workWhat will the future workforce look like in the UAE? This is a topic that has engaged UAE cabinet members several times this year and a frequent discussion with long-term UAE expats since the country’s formation. Up until now, no matter how long an expat lived in the UAE, her or his residency would have been tied to their job and required renewal every two to three years

FUTURE OF WORK

PAYMENTS REVOLUTION

WOMEN POWER: The UAE has the highest percentage of female workers pro rata in the Middle East

The UAE is home to several endangered species, including the sand dune cat and the Arabian Tahr. To that list may soon be added common cash – old-fashioned, grubby, difficult to track and unloved by the UAE authorities

SHOPAHOLICS: The famous shopping malls of the UAE must embrace them

INFRASTRUCTURE: The UAE looks to its people to help support growth

The payments revolution

The aim of the new visa regime is to enhance the UAE’s position as a technology, design and finance hub

2 | UAE World Business Times is a leading global provider of business intelligence and insight 26 September 2018 UAE | 3 www.world-businesstimes.com

THE hot and dry environment, water shortages and a dearth of arable land com-bine to make the region one of the toughest in the world to turn the rhetoric and prom-ises into actual living practice.

When these environmental factors are combined with statistics showing that the UAE imports up to 85 per cent of its food and forecast that the nation’s popu-lation will grow by more than 20 per cent to 11million by 2030, the scale of the task becomes even more daunting.

After recent progress, the UAE now boasts more than 50 per cent self-suffi-ciency in eggs production and 70 per cent in fresh milk. Recent increases in agricul-tural production have not kept pace with growth in consumption but project tri-als are underway that may make a seri-ous contribution to achieving sustainable farming goals. Low-water farming using hydroponic technology could reduce the need for fruit and vegetable imports, while smarter production methods can also use up to 90 per cent less water than conven-tional means.

As the use of water in agriculture accounts for about four-fifths of the UAE’s total water usage, this could have signif-icant consequences not just for agrarian industry but the economy as a whole. By reducing food imports, smart production of domestic food could also reduce the UAE’s carbon footprint – one of the high-est per capita in the world.

Other projects are trialling saline and dry condition agriculture, irrigation technolo-gies and cultivation methodologies, which could all help raise production levels with reduced environmental impact. When put

into practice, all this can benefit the coun-try and region in terms of increased pro-duction with reduced input.

In Dubai, the International Centre for Biosaline Agriculture (ICBA) is using modern irrigation systems and net houses to increase environmental controls and improve yields, compared to open fields.

Other methods include using treated wastewater for crop irrigation, grow-ing crops such as quinoa with high-saline water and reviving salt-affected farms by growing climate-resilient and salt-tolerant halophyte plants.

Over the next three years, Abu Dhabi Food Control Authority (ADFCA) has

some schemes in place to control plant pests and diseases, expand the use of alter-native irrigation sources and convert tar-geted farms to use treated wastewater.

It also wants the agricultural sector to become increasingly self-managed, including plans to enable the production of honey from approved local bee species and looking at biosecurity and regional animal production strategies.

In biosecurity, ADFCA has deployed an electronic surveillance programme to detect diseases and epidemics and has started tracking the movement and changes of animals through the animal identifica-tion and registration system.

ADFCA has also developed an inte-grated electronic program to manage sub-sidiaries including the electronic feed-sup-port program efficiently.

Saeed AlBahri Salem Al Ameri, ADFCA director-general, says: “With the advance-ment of agricultural technology and food science, it is possible that big steps can be taken towards improving self-sufficiency in the UAE.”

ADFCA has formed an investment com-mittee that has identified 15 essential areas of investment in food and agriculture and has the mandate to encourage public-pri-vate partnerships in these areas.

Success here is likely to depend upon maintaining a favourable environment for foreign investors.

While there is always likely to be a residual level of imported food, the focus going forward will place a heavy empha-sis on achieving a much more equal bal-ance between domestic production and imported food.

SUSTAINABLE AGRICULTURE

THE UAE provides over 700 diverse filming locations to choose from and has invested in state-of-the-art infrastructure, attracting the world’s leading studios with incentives including a 27 per cent rebate on production spend from Abu Dhabi Film Commission.

In Abu Dhabi, twofour54 has been cre-ated as a media zone that is about much more than just property...It helps firms to secure business and talent via a briefing room connecting them with live briefs, net-working events, production and post-pro-duction facilities and a 13,000-strong youth community providing local insights and feedback.

Abu Dhabi has also established a robust and multilingual freelance pool with more than 580 freelancers. Current initiatives include expansion of twofour54’s new Stu-dio City at Mina Zayed, which will cover 300,000 sqm and feature an outdoor film set, a permanent backlot and an assortment of studios.

Abu Dhabi is also focusing on attracting more local, regional, and international pro-ductions. This year has seen the shooting of Salman Khan’s action movie Race 3, South Indian film Saaho and Hollywood block-buster Mission: Impossible – Fallout.

Noting that Abu Dhabi contributes 65 per cent of the UAE’s economy and is the wealthiest emirate in terms of GDP and per capita income, Maryam Al Mheiri, two-four54 chief executive, says: “We want Abu Dhabi to be the region’s first choice for film-makers, animators, games crea-tors, digital entrepreneurs, publishers, writ-

ers and all other media organisations, so there has never been a better time to set up home in Abu Dhabi.”

Abu Dhabi sees a significant oppor-tunity for brands to create quality Ara-bic content and twofour54, has entered into production partnerships with brands including O3 Productions and Discovery Communications.

The latest partnership with the Depart-ment of Economic Development allows firms in the media free zone to connect with the government sector by applying for a special branch license in addition to their existing free zone license, with-out the need to have a second additional onshore office or premises.

Production house Media Mania and creative communications agency All About Brands were among the first firms to receive branch licenses and both say they have opened new doors for them.

Continued inward foreign media investment is a priority with Abu Dhabi, determined to capitalise on the Middle East and North Africa as being one of the fastest growing media markets globally – predicted by accountants Pricewater-houseCoopers to grow by 7.4% between 2016-2020.

The UAE government reached an agreement for Arab Satellite Telecommu-nication Organization (Arabsat) to launch a new set of satellite TV channels on the Arabsat Badr-4 satellite.

Arabsat offers twofour54 partners and broadcasters across the region the abil-ity to distribute content to a sizeable audi-ence directly from the free zone, provid-ing more than 500 TV channels, 200 radio stations, pay-TV networks and HD chan-nels to tens of millions of homes in more than 80 countries across the Middle East, Africa and Europe.

During a period when there is intense scrutiny in the West on the openness and transparency of Arab media, this kind of growth is attractive but also brings poten-tial cultural and political risks. The con-tinued expansion of the UAE’s media sec-tor will, therefore, depend to some degree on balancing these tensions, both at home and with its Arab neighbours.

Over the past ten years, the UAE has built a thriving media ecosystem and sustainable media economy, attracting more than 470 companies, including major names such as Sky News Arabia and CNN Sustainable agriculture is

a buzz phrase across the globe, but few places are as challenging to make it a 21st

Century reality as the Gulf

MEDIA

Nurturing the shoots of agriculture

THIRST FOR FARMING: Hydroponic technology is one solution for the UAE to become more self-sufficient

We want Abu Dhabi to be the region’s first choice for film-makers, animators, game creators, digital entrepreneurs, publishers, writers and all other media organisations KEY WORKERS: The UAE is keen to produce

it's own honey from local bee species

Maryam Al Mheiri, Chief Executive Officer, Media Zone Authority of Abu Dhabi and twofour54

A new world for media

THE UAE has long been known for cut-ting-edge property developments, with Dubai’s luxury schemes at The Palm and The World having been well-publicised for their ambition and celebrity owners as well as for the mini-exodus that followed the 2008 global financial crisis.

Less is known outside the UAE about Abu Dhabi’s claims in the global luxury residential market and the changing appe-tites of buyers. However, that is set to change rapidly.

Talal al Dhiyebi, chief executive of Aldar Properties, says that, while quality remains a priority, the company is seeing a trend to develop real estate that appeals to a broader range of the buyer spectrum...

“For homeowners and tenants alike, it is all about the quality; an enriching experience and lifestyle - a place you call home,” he says.

“This demands urban amenities, a sense of community, convenience of loca-tion and facilities, good views and main-tenance services.

“People increasingly are looking to live in communities which offer more than just homes.”

It is fair to say that this is not what UAE residential property is best-known for outside the nation.

Privacy, rather than community, status rather than convenience and prestige over practicality have previously been dom-inant perceptions, even if these did not always reflect reality.

The trend is, therefore, to deliver desir-able destinations by creating whole com-

munities equipped with urban amenities that provide residents with an enriched living experience through comfort, acces-sibility and convenience.

For example, Aldar’s recently launched Alghadeer master development includes convenience-driven amenities such as a British curriculum international school, a supermarket and a community clinic.

The perceived attractiveness of UAE residential property is also evolv-ing. With GDP per capita estimated at $75,000 per person, a population that increased by 70 per cent between 2008 and 2015, rapid urbanisation and a grow-ing reputation as a leisure, entertain-ment and cultural hub, Abu Dhabi was

last year ranked as the second best busi-ness city in the world to live in after New York by the Ipsos City Index.

Aldar cites interest from investors in Saudi Arabia, India, China and Russia, as well as to the UK, which accounts for five per cent of the company’s buyers.

Yet the investor case is not always attractive in relation to other options. In 2017, property consultants Knight Frank ranked Abu Dhabi last and Dubai 134th out of 150 global cities for prop-erty price performance.

Abu Dhabi prices slumped 9 per cent last year, according to the agency’s annual rankings, while Dubai suffered a 2 per cent dip.

The flip side of this is increased global competitiveness going forward, with Knight Frank finding in September 2017 that Dubai’s average tower rents were

seven times cheaper than similar proper-ties in Hong Kong.

The consultancy also found that the upper floors of Dubai tower blocks over 30 storeys tall did not command premi-ums over lower floors, as is common in Hong Kong, New York and some other world cities.

The stated reason was again that occu-pier priorities in the Emirate are increas-ingly focused on the efficiency of the property floorspace, amenities, the speed of the lifts and the location of the building.

Change in UAE property happens slowly, with market fundamentals in Abu Dhabi governed through controls on property supply and the 2016 Real Estate Law, which laid down benchmarks for a fair and transparent property market and introduced master developer licenses.

However, the UAE government recently pledged a $13.6 billion stimulus package to help fund capital projects for a three-year plan to support economic activity through the creation of 10,000 jobs.

The introduction of VAT does not appear to have quelled demand, while the new rules for visas are expected to have a positive effect in boosting demand from overseas.

The issue is how Abu Dhabi and Dubai property is perceived overseas and the effect that this has on domestic prices and affordability.

If the focus truly switches from out-towering the most recent tallest build-ing to providing homes that people want to build communities around, talk about

sustainability in the UAE property market may finally be justified.

First, the nation’s biggest cities must escape the cycle of boom and bust that has caused instability in the past.

Glamorous and up-market property developments in the UAE have set a benchmark to the world’s property developers, but what’s planned next…

Abu Dhabi was last year ranked as the second best business city in the world to live in after New York by the Ipsos City Index

LEISURE TIME: Abu Dhabi is growing a reputation as a leisure, entertainment and cultural hub

COMMUNITY MATTERS: The Eastern Mangroves complex with design inspired by a souk-type avenue

UAE property market opts for community spirit

Lulu island is premier low-density, low-rise, and mixed-use residential resort island development with investment zone status

PROPERTY

Phot

o co

urte

sy: a

ldar

.com

4 | UAE World Business Times is a leading global provider of business intelligence and insight 26 September 2018 UAE | 5 www.world-businesstimes.com

AIMED at creating and maximising value and ensuring smart growth in ADNOC’s upstream and downstream businesses, while strengthening access to the overall market, it will involve an investment of more than Dh400 billion ($109bn) on a series of expansion and growth projects over the next five years.

ADNOC, the national oil company of the UAE, is increasing daily production capacity from 3.3 million barrels of oil to 3.5 million barrels by the end of 2018.

It also plans to explore and appraise Abu Dhabi’s unconventional gas resources and pursue international investments positioning it as a global player in the downstream market.

Founded in 1971 -12 years after oil was discovered in the UAE at the Mur-ban Bab oil field following a 30-year search - ADNOC has always seen itself as a long-term, reliable supplier of crude.

However, the new strategy also aims to position the company on a new track of value creation, designed to stretch the margin on every barrel of oil it pro-duces through downstream investment in the long-term market growth of refined and petrochemical products, particularly from non-OECD countries.

Dr Sultan Ahmed Al Jaber, UAE Min-ister of State and ADNOC director-gen-eral and chief executive, says: “Creating a more valuable downstream business will allow ADNOC to become a more flexible, resilient and diverse energy company, ensuring it remains an inte-gral part of the UAE economy and prosperity.”

A major focus will be on a $45 bil-lion expansion of the assets, capabilities and product range of the Ruwais Indus-trial Complex, transforming it into the world’s largest, fully-integrated refining and petrochemicals complex.

ADNOC will expand the Ruwais com-plex’s refining capacity by more than 65 per cent, or 600,000 barrels per day, by 2025 through the addition of a third, new refinery, creating a total capacity of 1.5 million barrels per day.

It will also develop a new, large-scale, manufacturing ecosystem through the cre-ation of petrochemical derivatives and conversion parks that it wants to act as catalysts for the next stage of petrochem-ical transformation by inviting partners to invest and produce new products and solutions.

Meanwhile, the Ruwais Conversion Park is aimed at spurring business creation further down the value chain, taking feed-stock from both the Derivatives Park and other Ruwais assets, to manufacture high-er-value end products, including packag-ing materials, coatings, high voltage insu-lation and automotive composites.

“The strategy will be executed through a select number of long-term partners,” says Dr Al Jaber. “Importantly, they will be partners in growth, not merely assets or capital.” ADNOC’s proposition to them is clear: invest in the UAE, to access global growth. Invest local, grow global.

“Partners who bring finance, tech-nology or market access to the partner-ship will, in turn, benefit from ADNOC’s reach and market influence.”

A particular focus of ADNOC’s down-stream strategy is a forecast doubling of demand, from Asia for products across the petrochemical value chain.

To help meet this demand, ADNOC will triple production of petrochemicals to 14.4 million tonnes a year by 2025.

Dr Al Jaber says ADNOC’s goal is to shift to become not only a ‘producer’ but also a customer-focused marketer of energy. However, this will mean invest-ment in employees as well as natural resources.

He states: “The UAE’s most precious resource lies not in the ground, or under the sea, but in its people and the nation’s long-term economic prosperity will be founded on world-class human capital.

“In line with the leadership’s direc-tives, ADNOC is unlocking the poten-tial of its national workforce and setting a best-practice benchmark.

“It is investing heavily in up-skill-ing its Emirati talent to give them the tools to succeed, including better train-ing and greater mobility within the organ-isation, which will present rewarding career opportunities for current and future employees.

“Overall, ADNOC’s goal is to make its national workforce smarter, highly skilled and competitive, as it continues to create a more commercially minded and perfor-mance driven organisation.”

ADNOC believes strategic partner-ships and investment can build a man-ufacturing ecosystem in Ruwais that will significantly stimulate in-country value creation, private sector growth and employment.

The strategy is a central pillar of a national economic development plan designed to secure the UAE’s future prosperity of the nation by adding more than 15,000 direct and indirect special-ised jobs by 2025 and contributing an additional 1% to annual GDP.

UAE Minister of Energy Suhail Mohammed Faraj Al Mazrouei believes the plan is the way forward for ADNOC and the nation.

“The company is in a very active phase of exploration, growth and devel-opment and will advance and then bring on-stream a number of new oil and gas projects in the years ahead,” he says.

As the UAE’s largest energy pro-vider, ADNOC possesses a uniquely-in-

tegrated upstream-downstream value chain with secure, competitive access to high-quality feedstock, underpinned by world-scale assets and operations.

Its open and flexible operating model is also a competitive advantage. How-ever, the real test of the new strategy will be whether ADNOC is ready after five decades of international partner-ship experience for a strategic shift that will position it for the next phase of development.

Developing its human capital and directing a path through global mar-ket dynamics may prove a harder chal-lenge than delivering the technological advancements, but the prize is a more diversified, higher-value operation that holds the promise of long-term stability and growth.

New horizon for renewable energyMoving from fossil fuels to a knowledge-based economy is far from the only diversification strategy in play in the UAE. Within the energy sector, there is also a concerted attempt to balance carbon-heavy oil with sustainable resources via ambitious plans for renewable energy, particularly in solar and wind power

More than 550 organisations including the International Renewable Energy Agency (IRENA), Emirates Nuclear Energy Corporation and Siemens, are already based in Masdar City

RENEWABLE ENERGY

OIL & GAS

CLEANER ENERGY: Solar is one idea to balance energy reliance on carbon heavy resources

GOING DOWNSTREAM: The UAE has big plans for downstream business investment

Invest in the UAE to access global growth. Invest local, grow global

The UAE’s most precious resource lies not in the ground, or under the sea, but in its people and the nation’s long-term economic prosperity will be founded on world-class human capital

THE UAE has set long-term energy targets of achieving 50 per cent clean energy in the capacity mix by 2050, including a 6 per cent allocation for nuclear energy. A move than many envi-ronmentalists applaud as an example of a fossil fuel rich nation making a signif-icant capital investment to reduce their carbon footprint.

This goal is supported by plans to achieve a 40 per cent reduction in energy demand by increasing energy efficiency.

“The UAE’s leadership has always supported sustainable development and created a council for the United Nations Sustainable Development Goals,” says UAE Minister of Energy, Suhail Moham-med Faraj Al Mazrouei.

“Diversification is the keyword which featured in our energy strategy formu-lation. The key to the security of supply is the balance of fossil fuel technologies and clean energy sources. Therefore our energy mix includes gas, coal, nuclear, solar as well as wind and waste to energy.”

“We see that economic development with the ethos of sustainability embed-ded in the practices of the government and private sector will be beneficial for the nation in the future.”

A prime example is the Masdar City project in Abu Dhabi. Being built by Masdar, a subsidiary of Mubadala Development Company, with seed cap-ital from the Abu Dhabi government, it claims to be the world’s most sustainable urban community.

Within five years, Masdar City expects to be home to 11,000 resi-dents, with another 11,000 people working and studying there. More than 550 organisations including the Inter-national Renewable Energy Agency (IRENA), Emirates Nuclear Energy Corporation and Siemens, are already based in the development.

The focus is on sustainability. This year, Masdar unveiled the Etihad

Eco-Residence, Abu Dhabi’s first pur-pose-built, LEED-Platinum-rated cabin

crew accommodation rated platinum under the Leadership in Energy and Environmental Design green building rating system.

To attract more small businesses spe-cialising in clean technology and sus-tainability, Masdar has relaunched The Catalyst, the region’s first clean technol-ogy start-up accelerator, which provides funding and mentorship.

Buildings within Masdar City are designed to reduce energy and water consumption by at least 40 per cent in accordance with Estidama guidelines.

Last year, Masdar launched the Eco-Villa, a pilot project conceived as a tem-plate for affordable and highly energy- and water-efficient residential villas in the UAE, which uses around 72 per cent less power and 35 per cent less water than a typical dwelling in Abu Dhabi, while displacing an estimated 63 tonnes of carbon dioxide annually.

Masdar partnered with ADNOC to develop the world’s first commer-

cial-scale carbon capture utilisa-tion and sequestration facility and is working with ADNOC Distribution to form a hydrogen fuelling station at Masdar City.

This year Masdar published the find-ings of its Renewable Energy Desal-ination Pilot Programme partnership, concluding that solar energy powered desalination is a commercially viable option for the UAE.

Masdar City already ranks as one of the UAE’s largest clusters of high-tech businesses focusing on sustainable technologies.

It says it is committed to continu-ing to expand on its existing pipeline of innovative demonstration facilities, where sustainable technologies from solar renewable energy, batteries and electric mobility networks to biofuels, recycling, and sustainable agriculture are piloted and implemented.

“Masdar City is demonstrating the economic viability of sustainable real

estate by adopting commercially viable solutions in the reduction of energy and water demand and waste,” says Mas-dar chief executive Mohamad Jameel Al Ramahi.

“We are driving clean-tech innovation through the deployment of advanced clean technologies at scale.”

Masdar, which has renewable energy projects in more than 20 countries, is also developing the GCC’s first large-scale wind farm in Oman and the UAE’s first waste-to-energy plant in Sharjah.

In 2016, a Masdar-led consortium set a record-low price for solar power gen-eration to develop the third 800-mega-watt phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai.

“Sustainability is in the DNA of the UAE,” adds Mr Al Ramahi. “The UAE’s founding father, Sheikh Zayed Al Nahyan, recognised the importance

of environmental stewardship early on. Sustainable development is therefore fundamental to the long-term prosper-ity of the UAE.”

It may still come as a surprise to observers who have long viewed the nation’s natural carbon reserves as ephemeral.

However, the development of sustainable resources, if administered and managed adroitly, could trans-form the way the UAE is perceived internationally as well as position-ing the nation at the heart of the global sustainability movement.

NMC Health, which has operations in 17 countries, employing 2,000 doctors and 18,000 nurses and allied staff at 185 separate facilities, has acquired three private hospitals in London for £10 mil-lion ($12.9 million). Fellow Abu Dhabi healthcare investment group UE Med-ical, which has a women’s and chil-dren’s hospital, an Abu Dhabi facility run in partnership with London’s NHS Moorfields Eye Hospital, six speciality centres and 14 family clinics, has also expanded to invest in Saudi Arabia.

Both expansions are partly predicated on demand for oncology and orthopae-dics services: two areas where the UAE healthcare system is under-served. “Because of the introduction of com-pulsory health insurance in the UAE, the government has been gathering data for the last eight to ten years, which we are using statistically to identify where the gaps in the market are,” says UE Medical chief executive Mohammed Al Shorafa.

“One of the most significant gaps in the market is oncology. The Govern-ment is still sending patients outside the UAE. Orthopaedics is another major item in Abu Dhabi.

“We have to look at these specialisa-tions from a regional perspective now, not just from Abu Dhabi.”

NMC’s acquisition is Aspen Health-care, which operates nine health facil-ities across the UK, including the Parkside, Holly Private and Highgate hospitals in London.

Founded in Abu Dhabi in the 1970s by Bavaguthu Raghuram Shetty, an Indian pharmacist, NMC’s recent expansion aided by UAE healthcare reforms, has helped to boost its UK-listed shares by more than 40 per cent this year to a record high, valuing the group at about £8.5 billion.

Aspen, acquired from Tenet Health-care Corporation, offers a broad range of specialities, particularly in orthopae-dics and oncology and its acquisition is aimed at giving NMC greater expertise in these two sectors, which represent about half of Aspen’s revenues.

NMC agrees with UE that both these segments remain highly underserved in the UAE, and says the Aspen deal offers the potential for patient referral to NMC’s international facilities when the required medical treatment is una-vailable at home.

It says the acquisition is aimed at introducing NMC’s fertility services to Britain.

It is NMC’s growth in the UAE that has enabled it to build out its geograph-ical footprint globally.

Prasanth Manghat, chief executive and executive director of NMC Health, says: “The government of UAE has paved the way for rapidly expanding healthcare sys-tem to meet the medical needs of Emiratis and expatriates.

“But even after the government’s major emphasis on healthcare, the surging demand and cost are keeping the health-care concerns at the top of the develop-ment agenda of the country.

With the well-being of its citizens identified as a top priority by the UAE government, the healthcare sector in the country is seeing an astonishing boom in both the quality and quantity of services it provides.

“NMC believes technology has the potential to exploit and reduce the ineffi-ciencies in the current health care system and has signed a number of partnerships with leading tech firms. Technology has been leaving its fingerprints on every field, but no sector has been affected more than the healthcare industry,” adds Mr Manghat.

“NMC Healthcare is working on inno-vative efforts which are focused on new products such as drugs and devices and artificial intelligence, which have the potential to change the paradigm of healthcare delivery system.

“We are also taking initiatives

which can simplify various rou-tine processes such as admission pro-cess, discharge process, medical record filing, reimbursement claim and revenue management.

“This can create process efficiencies and improve decision-making necessary to boost quality which overall improves patient satisfaction and quality of care provided.”

Healthcare technology is evolving rapidly and reaping dramatic improve-ments in quality of care, with advances in telehealth enabling reduced outpatient visits, redeploying doctors and nurses to provide dedicated inpatient care.

UE Medical is also a big believer in the new trend of individualised medi-cine, which uses patients’ genetic map-ping to pinpoint potential health risks and increase preventative care.

“We believe it is going to come to Abu Dhabi,” says Mr Al Shorafa. “Stem cell technology is another exciting area.”

Abu Dhabi’s new healthcare sector has plenty of growth opportuni-ties ahead.

Think of a Middle East port. Any port. Jebel Ali in Dubai might come to British minds but Yanbu and Jeddah in Saudi Arabia, Mina Sulman in Bahrain and Israel’s Haifa – the other constituents of Worldatlas.com’s March 2018 list of the region’s top five busiest cargo ports - may well not

FEW people outside the UAE might also be familiar with Abu Dhabi’s Khal-ifa port or the 418 sq km Khalifa Indus-trial Zone (KIZAD) that it is being con-structed to support. Opened eight years ago, Khalifa did not even rank in Worl-datlas’s top ten. Yet its five phases are expected to form one of the world’s larg-est industrial zones in the world when completed in 2030.

Developed to take over from the neighbouring Mina Zayed Port, Khal-ifa Port is expected to contribute up to $22 billion a year to Abu Dhabi’s GDP by 2030, or 15 per cent of the emirate’s anticipated non-oil gross domestic prod-uct. Currently, the percentage of non-oil GDP represented by Abu Dhabi Ports’ activities is 3.3 per cent, while its oper-ations support more than 56,000 direct and indirect jobs.

Selected to host a multi-billion dol-lar industrial park and port operation on a greenfield site next to Khalifa Port in Taweelah, KIZAD became Abu Dhabi’s first industrial free zone, offering 100 per cent foreign ownership to any operation located there. Sited on an artificial island halfway between Abu Dhabi and Dubai, KIZAD’s strategic location linking east and west and its sea, air roads and rail links, give investors easy and efficient access to more than 4.5 billion consum-ers across four time zones.

A 30-year concession agreement signed with MSC Mediterranean Ship-ping Company to establish a new con-tainer terminal plus a major new con-tainer terminal and freight station for COSCO Shipping Ports Company will make Khalifa Port one of the top 25 ports worldwide in handling containers by the beginning of next year.

Overall, Khalifa Port’s capacity is expected to increase from 2.5 million 20-foot equivalent units TEU to 8.5 million over five years.

The fledgling port has a lot of expansion ahead before it can rival Jebel Ali, however, with a total cargo volume of 170,000 tonnes – nearly three times that of second-placed Yanbu, Jebel Ali is by far the busiest port in the Middle East and the ninth largest in the world, with annual cargo tonnage of 13.6 million TEU.

Indeed, Dubai is an example of how a long-term port infrastructure project, prop-erly directed and managed, can create and

maintain sustainable growth, spreading prosperity and economic wealth.

An important port since the beginning of the 20th Century, Dubai has used revenues from trading activities to build infrastructure over the past 60 years and has now devel-oped Jebel Ali into the largest container port between Rotterdam and Singapore.

KIZAD’s development is much more recent and illustrates the industry’s expo-sure to geopolitical risks, opening just two years after the onset of the global financial crisis of 2008. In the past few years, there has also been a slowdown in the worldwide shipping market.

However, Capt Mohamed Juma Al Shamisi, chief executive of Abu Dhabi Ports, the government-owned ports com-pany that has developed Khalifa Port and KIZAD, is hopeful that calm is returning to the sector.

“While there has been some slowdown in the market, there is more reason for optimism in the industry than we have had for several years,” he says.

In the cyclical industry of shipping, analysts predict that bulk carrier and con-tainer ship operators will continue to decline. However, Capt Al Shamisi sees this playing to Khalifa’s strengths, with the new port designed to respond flexibly to the change in size, volumes and catego-ries of cargo loads.

Khalifa Port has become the first port in the Gulf to have Capesize vessel capacity through its 2017 partnership with Emir-ates Global Aluminum. It is also building a position in car transportation through a strategic alliance between Abu Dhabi Ports and Autoterminal Barcelona to cre-ate “Autoterminal Khalifa,” a 300,000 sqm car terminal, with more than 550m of dedicated quay.

Capt Al Shamisi says AD Ports intends to continue with a four-pronged approach emphasizing infrastructure, innovation and technology, talent and strategic partnerships.

“Part of our strategy is to attract world-class partners who can accelerate our ambitions and deliver value to Abu Dha-bi’s economy,” he says.

“Investors are looking for the high-est levels of efficiency and the best value proposition.

“Automation and data is the way for-ward and relevant entities who are adopting the latest technologies and

coming up with innovative solutions will be of prime interest to investors.

“We are focused on innovation, oper-ational excellence and continued expan-sion of our infrastructure or services to attract additional investment into Abu Dhabi.”

Part of our strategy is to attract world-class partners. Automation and data is the way forward

Khalifa Port became a state-of-the-art gateway to Abu Dhabi, handling all its container traffic, with deepwater facilities to accommodate the largest ships in the world

Technology has been leaving its fingerprints on every field, but no sector has been affected more than the healthcare industry

STRATEGIC LOCATION: with access via sea, air and rail, Khalifa Port is positioned for growth

INDUSTRIAL ZONESGateway to UAE

HEALTHCARE

By 2030, KIZAD aims to contribute 15% of Abu Dhabi’s non-oil GDP

Khalifa Port’s capacity is expected to increase from 2.5 million TEUs to 8.5 million TEUs over five years

Autoterminal Khalifa will create a 300,000 sqm car terminal

15%

non-oil GDP 2.5m

8.5m

HEALTHCARE BOOM: The growth of quality medical care is not just restricted to UAE citizens

Healthy connections

The Government is still sending patients outside the UAE. The most significant gaps in the market are oncology and orthopaedics

Two major private healthcare providers lead the way to meet demand and market opportunities in the UAE and beyond

Diversification is the keyword. Our energy mix includes gas, coal, nuclear, solar, wind and waste to energy

With so many geopolitical headwinds in play potentially affecting global oil prices, the new strategy of the Abu Dhabi National Oil Company (ADNOC), is being viewed as a highly complex plan that also involves marketing risks, but it could potentially unlock new value for the UAE in downstream oil and gas production

Abu Dhabi refines downstream production

6 | UAE World Business Times is a leading global provider of business intelligence and insight 26 September 2018 UAE | 7 www.world-businesstimes.com

WHILE the UAE Space Agency is only four years old, it is already involved in the Mars mission of the Hope spacecraft, which is scheduled to arrive on the red planet in 2021 to mark the 50th anniversary of the founding of the UAE.

Before that, the UAE will send an astro-naut to the International Space Station next year. In addition, it has launched the Mars Science City project, a $140 million research city that will serve as a “viable and realistic model” for the simulation of human occupation of the Martian landscape.

The UAE Space Agency is also in talks with the UK Space Agency about a joint venture based in the UAE that will enable satellites to be used in emergencies, such as earthquakes and other disasters.

Closer to home, it is helping Saudi Arabia to establish its own space agency, having already aided the development of Bahrain’s space agency. The UAE Space Agency is also working with Egypt and other coun-tries in the region.

In investment terms, the space indus-try is potentially very lucrative. The global space industry is valued at $360 billion according to the Global Space Industry Market and Technology Fore-cast to 2026 and is expected to grow to $556 billion by 2026, fuelled by the pro-curement of satellite systems by coun-tries in the Asia Pacific, European and North American regions.

Yet how is space exploration contributing to the technological richness and diversity of the modern UAE?

Dr Mohammed Al Ahbabi, director gen-eral of the UAE Space Agency, firmly believes that the development of the UAE space programme has a vital part to play in helping the nation flex its muscles as a major international economy, enhancing national capabilities and nurturing a prom-ising hotbed of scientific talent.

“We are the first space agency in the Mid-dle East, and now we have the first Arab and Islamic mission to Mars,” he says.

“The amount that has been invested in this space capability over the past 20 years is around $6 billion, and we are achieving an annual 7 per cent growth in the UAE space market. About 500 people are work-ing in space activity in the UAE and 30 per cent of them are women.

“What we’re doing is strategic, economic and scientific. It’s a fascinating time for the UAE and we have a lot of extensive and sig-nificant projects being implemented at the same time.”

Founded in 2014 with the task of devel-oping, fostering and regulating a sustaina-ble and world-class sector, the UAE Space Agency has carefully defined its limits and also its opportunities.

“When I was tasked with my team to develop the UAE Space Agency, I looked at what would be the best model and the one that we are closest to is the UK Space Agency,” says Dr Al Ahbabi.

“We are a small space agency with about 50 direct employees. We don’t operate sat-ellites ourselves but we are a facilitator, coordinator and integrator and we also work as a funding agency, essentially as a win-dow for international cooperation. This is a very light, agile and efficient space agency. We have decided not to be big. We want to start with something small and grow.”

Seven satellites are operated in the UAE and later this year will see the launch of an eighth, the KhalifaSat, a remote sens-ing, earth observation imaging satellite that is being manufactured in the UAE at the Mohammed bin Rashid Space Centre in Dubai.

The first satellite to be built in the clean rooms of the Dubai government’s space science and research facility, it has been developed entirely by a team of Emirati engineers.

After its launch in Japan, it will be in situ for five years, providing high-resolution imagery of the earth for use in urban plan-ning, environmental and climate change monitoring, area classification and aiding relief efforts for natural disasters.

‘It’s a great testament to the capabilities of the UAE,” says Dr Al Ahbabi. “The UAE is now not only a user of satellites but also makes them.”

Meanwhile, the effort to put the first UAE astronaut in space on a Soyuz space-craft next year to conduct experiments on the International Space Station has received 4,000 applications, including 1,500 women.

The selection is now down to the final nine candidates, who have been undergoing medical tests and training in Russia.

Four astronauts are expected to be selected later this year, creating a pool from which the first and later missions will be crewed.

“There’s a lot of excitement and we hope it will inspire our young people in their education, similar to the way that Tim Peake has inspired people in the UK.” says Dr Al Ahbabi.

The Mars mission will aim to collect data using the Hope spacecraft, a compact hex-agonal craft of the same size and weight as a small car. It will launch in 2020 and arrive at the red planet in early 2021.

“Our space programme is comprehen-sive now,” says Dr Al Ahbabi. “We have space exploration, space services and satel-lites and now we have human space flights as well.

“We are often asked why space and why the UAE and why at this particu-lar time, but the answer is very easy. The UAE is developing and we want to demonstrate this by taking the lead with a vision for the region.’’

“We are trying to influence neighbour-ing countries by undertaking projects in space, nuclear energy, aviation, tourism,

real estate, shopping malls; all these things,’’ added Dr Al Ahbabi. “We’re try-ing to show the positive side of the region and demonstrate that we can be a good global citizen and change the image of this region with science and technology.

Our space programme has an excellent capability for the future and is a signif-icant tool to prepare our society and inspire our young people in science and technology.”

Collaboration agreements have been forged with local and international part-ners, with more than 25 space coop-eration agreements signed with other space agencies.

The UAE plays an active role in United Nations space regulations and has joint projects with space agencies including NASA, Roscosmos and The Japan Aer-ospace Exploration Agency (JAXA) and The Centre National d’Etudes Spatiales (CNES) in France. Collaboration with the UK Space Agency is next on the agenda.

“We are speaking to the UK Space Agency about some small projects in remote sensing and disaster manage-ment,’’ says Dr Al Ahbabi. “As part of these discussions, we may establish a joint centre in the UAE to exchange data and information. Other areas where we are working with international partners are in education, space regulation and human space tourism. Space is all about cooperation. In the past, countries used to compete in space but the trend recently has been a change from competition to collaboration,’’ says Dr Al Ahbabi.

“We try to utilise international partners and cooperation and we also try to utilise the private sector and bring it in as a con-tributor to space activity.”

Space is not a linear business, with uneven flows of activity, but Dr Ahbabi is patient. “There is a big satellite launch and then the next year there is nothing,” he says. “Satellites can cost between $400-$500 million, so these are big pro-jects. However, over the next five to ten years, we see significant growth. We are making a significant investment. Our message to our region and to the rest of the world is that this is possible.”

Mission to Mars

From the orange sands of Dubai to the red dust of Mars. Having revitalised its desert economy, the UAE is now aiming to become a major player in space

In the past, countries used to compete in space but the trend recently has been a change from competition to collaboration

We are the first space agency in the Middle East, and now we have the first Arab and Islamic mission to Mars

SPACE EXPLORATION

NEW HORIZON: Inspiring people in the fields of science and technology

Hope orbits Mars for two years in celebration of 50 years of the UAE

Hope spacecraft launches for Mars

First UAE astronaut in space

Launch of UAE built KhalifaSat

2021202020192018

50th

Prepare for lift-off

The development of the UAE space programme has a vital part to play in helping the nation flex its muscles as a major international economy, enhancing national capabilities

8 | UAE World Business Times is a leading global provider of business intelligence and insight 26 September 2018