FINAL - Doing Business With GCC [Group-3]

8/14/2019 FINAL - Doing Business With GCC [Group-3]

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Oil Rigs


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DOING BUSINESS WITHGULF COOPERATION COUNCIL

PRESENTED BY:PRESENTED BY:

BINITI BHUSHAN- 16

GAURAV SHARMA- 26

SIDDHESH GURAV- 29

SARVESH HEGDE

- 31


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Prayer Rugs


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About GCCOfficial languages Arabic

MembershipArab states of thePersian Gulf

Leader of GCCSecretary-General Abdul Rahman Ibn

Hamad Al-Attiyah

Population wiseTotal Area 267,31,000 sqkm

GDP 823 Billion USDollar

Per capita 22.8 USDollar


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GULF COOPERATION COUNCILGULF COOPERATION COUNCIL

FOUNDATION:

The Gulf Cooperation Council was established on May 21, 1981.

GCC promote stability and economic cooperation among Persian Gulf nations.

GCC removes all barriers within GCC countries for cross country investment

and services trade.

GCC member nations abolished customs duties.


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OBJECTIVES:

Formulating similar regulations in various fields such as economy, finance,

trade, customs, tourism, legislation and administration.

Fostering scientific and technical progress in industry, mining, agriculture, water and animal resources.

Establishing scientific research centers.

Setting up joint ventures.

Encouraging cooperation of the private sector.

Strengthening ties between their peoples.

Establishing a common currency by 2010.


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ORGANISATIONAL STRUCTURE:

The Supreme Council: The highest authority of the GCC, and is comprised of the heads of all member states. It convenes yearly in one regular session.

The Ministerial Council: Composed of the Ministers of Foreign Affairs or otherministers acting on their behalf. It convenes every three months.

The Secretariat-General: Charged with the function of preparing studies relatedto cooperation, coordination, and integrated plans and programs for joint work.

Also preparation of periodic reports on the work of the GCC, follow up on theimplementation of the resolutions, and prepare reports and studies.


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Stages for Setting up an Enterprise Stages for Setting up an Enterprise

Stages Objective Action PlanAnticipated risks and

hurdlesEnd Result

Stage:1Familiarity with

GCC Find a right partner Non availability of

complete information One location

Stage:2 Demand analysis Get to know moreabout the productionfacilities

Demand potential andother players strengths

Sure of succeeding

Stage:3Understand legalformalities and

agreements

Appoint specialiststo draft

Terms are favorable tolocal partners

Get ready tosetup

Stage:4 Locate and setupRight kinds of

people (technicaland managerial)

Possible resistance if Indian bosses are

appointed

Production at lowcosts

Stage:5Markets local &

outside

Develop interior markets and

network out of GCC

Local tariff and non-tariff barriers in

provinces

Reduced cost andcompetitiveness


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MEMBERS:

BAHRAIN OFFICIAL NAME: KINGDOM OF BAHRAINCapital: Al Manamah

Area: 707 sq km (273 sq mi)

Population: 726,617 (2008 estimate)

Languages: Arabic (official), English, Persian (Farsi), Urdu

Religious Affiliations: Muslim, Christian

Currency: Bahraini Dinar (BD)Major trade partners:

For Exports India , U.S.A., Saudi Arabia, South Koreaand Japan

For ImportsSaudi Arabia, U.S.A., France,U.K., and Germany

Economic Indicators:

GDP growth (annual %) 7.6 %(2008)


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MEMBERS:

OMAN OFFICIAL NAME: SULTANATE OF OMANCapital: Muscat

Area: 309,500 sq km (119,500 sq mi)

Population: 2,566,981 (2008 estimate)Languages: Arabic (official), English, Baluchi, Urdu, Hindi

Religious Affiliations: lbadi Muslim, Hindu, Christian

Currency: Omani Rial (OR)

Major trade partners:

For Exports China, Japan, South Korea, U.A.E., and ThailandFor Imports U.A.E., Japan, U.K., U.S.A., Saudi Arabia


GDP growth (annual %) 6.6% (2008)


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MEMBERS:

QATAR OFFICIAL NAME: STATE OF QATAR Capital: Doha

Area: 11,427 sq km (4,412 sq mi)

Population: 812,842 (2008 estimate)Languages: Arabic (official), English

Religious Affiliations: Muslim, Roman Catholic, Hindu, Buddhist

Currency: Qatari riyal (QR)


For Exports Japan, South Korea, Singapore, U.A.E., U.S.A.For Imports Japan, Germany, U.K., and U.A.E., U.S.A.




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MEMBERS:

SAUDI ARABIA

OFFICIAL NAME: KINGDOM OF SAUDI ARABIA

Capital: Riyadh

Area: 2,240,000 sq km (864,900 sq mi)

Population: 24,573,100 (2008estimate)Languages: Arabic (official), English (for business)

Religious Affiliations: Muslim, Christian, Hindu

Currency: Saudi Riyal (SR)


For Exports U.S.A., Japan, South Korea, Singapore andFrance.

For Imports U.S.A., Japan, Germany, U.K., and France




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MEMBERS:

UAE OFFICIAL NAME: UNITED ARAB EMIRATESCapital: Abu Dhabi

Area: 83,600 sq km (32,300 sq mi)

Population: 4,533,145 (2008 estimate).

Languages:Arabic (official), Persian (Farsi), English, Hindiand Urdu.

Religious Affiliations: Islam, Christian, Hindu

Currency: U.A.E. Dirham (Dh)

Major trade partners:For Exports Japan, South Korea, India , Thailand and Oman.

For Imports Japan, United Kingdom, Germany, and U.S.A.




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ECONOMIC ENVIRONMENT:

BAHRAIN:Limited oil resources will be maximized by next 10-15 years.Diverse economic base service sector emerged as leading sector.Bahrain's port and airport facilities has turned the country into a regionaltransport hub.Developed a regional banking sector whose assets stand around US$100bn.Manufacturing sector -ALBAs (Aluminum Bahrain) US $ 1.7 billion expansionproject will increase the annual production to 827,000 tones from 307,000tones.Construction sector is heavily reliant on government infrastructural contracts.Large private sector tourism and housing projects have been planned.


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KUWAIT:Dominated by petroleum, which accounts for 90-95% of the merchandiseexport earnings.Trade/GDP ratio, a typical measure of the openness of the economy, is around70%.Kuwait Petroleum Corporation (KPC) has the overall responsibility forinvestment in the country's domestic and foreign oil industry.Construction sector is dominated by public sector contracts.

Substantial expansion of infrastructure to allow hub for the rebuilding andreconstruction of Iraq.


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OMAN:Hydrocarbons form the most important sector.Diversification program to promote gas-based industries and tourism and toincrease the role of the private sector in the development of industries andinfrastructure.

QATAR:Oil and gas are the main drivers of the economy.Manufacturing, building, and construction sectors, as well as other sectors,such as finance, insurance, real estate, and trade have also shown impressivegrowth.To invest in Qatar, all sectors are opened except banking, insurance, real estateand commercial agencies.


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SAUDI ARABIA:Dominated by the oil sector.Oil revenues used to develop the agriculture industry, as well as otherindustries.Government encourages the development of the manufacturing sector in a bidto increase economic diversification and to create employment opportunities.Construction sector has accounted for 5.4% of GDP in 2004 and employedapproximately 15% of the workforce.


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UNITED ARAB EMIRATES:Heavily dependent on oil and gas.Construction sector has been a primary beneficiary of the boom in non-oildevelopment.Dubai - the tourism industry .


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GCC ANNOUNCED PROJECTS 2008-10GCC ANNOUNCED PROJECTS 2008-10

GCC PROJECTS ALL SECTORS($ MILLIONS)

GCC PROJECTS BY COUNTRY($ MILLIONS)


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FDI FLOWS AND INVESTMENT POLICIES :

BAHRAIN:Government has focused its efforts on the entry of new and private firms.Government seeks domestic and foreign private investments for largeinfrastructure projects.Foreign-owned companies are eligible for partial financing.

KUWAIT:Companies can be established with 100% foreign capital.Foreign investors can transfer ownership of their investment to another foreignor national investor.Foreign investors have the right to transfer their profits and capital abroad.


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FDI FLOWS AND INVESTMENT POLICIES :

OMAN:Foreign investors, especially in the industrial, information technology, tourism,and higher education fields are particularly welcomed.

QATAR:Solid base of attractive investment packages - politically and socially stable.Successful in reaching joint venture agreements with foreign partners todevelop its massive gas reserves.

Law allows real estate to be leased to foreign investors for them to establishtheir investments projects.Foreign investors are free to make transfers related to their investments.


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FDI FLOWS AND INVESTMENT POLICIES:

SAUDI ARABIA :Government encourages FDI in infrastructure, including power, water,telecommunications, and transportation.

The FDI law allows foreign investment in all sectors except for specific activitiescontained in a "negative list".

Foreign investors are no longer required to join with local partners.


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INCENTIVES:

Planned and serviced plots are provided for industries in the industrial estates.

Ready built factories 25 years (renewable).

Annual rent for land plots US$ 0.65/sq m for first 5 years and there after US$1.30/m 2.

Rent for built-up factory building US$ 5.2 to 10.4 /sq m.


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INCENTIVES:Electricity US$ 0.06/ KW/H.

Water US$ 0.007/gallon

Exemption from Customs duty is allowed on Raw materials, Plant &machinery and spares imported for industrial production.

Local Products are given 10% advantage over imported goods on Government purchases


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INCENTIVES:

Oman is the only country in the whole of GCC which has its own National creditguarantee agency.

KOM (Knowledge Oasis Muscat) provide state of the art infrastructure facilities with high bandwidth up to 155 Mbps to ICT firms with 100% foreign ownership,

and tax free income for 5 years subsidized Incubator facilities to IT startupsand first generation entrepreneurs.

Foreigners can own properties in designated areas for a lease period of 99 years.


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BUSINESS CULTURE:

Business appointments in the Gulf region are necessary.

Businesspeople prefer face-to-face meetings, and business is mostly doneagainst an intensely personal background.

You should abide by the local standards of modesty, and dress appropriately.

Business cards are common but not essential to Gulf business culture. If you do

intend to use business cards while in the Gulf region, ensure that you have theinformation printed in both English and Arabic.

Gift-giving in the region is appreciated, but not necessary. If you are offered agift, however, it is considered impolite and offensive if you do not accept it.


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FOREIGN TRADE OF THE FOREIGN TRADE OF THE GCC COUNTRIES GCC COUNTRIES

MAJOR EXPORTS AND IMPORTS:BAHRAIN KUWAIT OMAN QATAR S.A. U.A.E.

EXPORTITEMS

Oil, Non-oilexports

Oil exports,Ethyleneproducts,

Manufacturedfertilizers

Crude oil, LNGexports, Re-exports, Non-

oil exports,Refined oil

Oil and Gas,Non-oil

exports

Mineral products,Chemicalproducts, Plasticproducts, Re-

exports, Basemetals andarticles.

Oil and Gas,Re-exports,Free ZoneExports

IMPORTITEMS

Fuels,Machinery,

Transportequipment,Agriculturalproducts,Chemical andalliedProducts,

Textiles andclothing

Consumergoods,Intermediategoods, Capitalgoods

Machinery, Transportequipments,Manufacturedgoods,Foodand liveanimals,Chemicals andrelatedproducts,Crudematerials

Machinery, Transportequipment,Agriculturalproducts, Ironand steel,Chemical andrelatedproducts,

Textiles andclothing

Machinery,Appliances,Electricalequipment,

Transportequipment,Foodstuffs, Basemetal andarticles, Chemicaland alliedproducts, Textileand textilearticles, Artificialresins and plastic

materials

Machinery, Transportequipment,Pearls,precious andsemi-preciousstones,

Jewelry, Basemetal andarticles,Agriculturalproducts,

Textiles andarticles,Chemical andalliedproducts


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PROHIBITED AND RESTRICTIVE IMPORT PRODUCTS:

ProductProhibition Special licenses

Certificate SASO (SAUDI ARABIAN STANDARDS

ORGANISATION)License

Pig XRepresentational objects of art XAgricultural semen XBooks, magazines, films, tapes XPharmaceutical products XLiving animals, fresh and deep-frozen food

X

Farm products XAlcoholic drinks XToys XElectronics and electricity XMotorcar XChemicals X


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(In USD Million)

Country India's Exports2004-2005

India's Exports2005-2006

India's Imports2004-2005

India's Imports2005-2006

Bahrain 156.46 192.25 121.87 189.56

Kuwait 421.44 513.73 305.94 461.85

Oman 267.67 408.43 20.61 265.59

Qatar 209.42 259.34 672.85 901.62

Saudi Arabia 1412.06 1809.77 1301.15 1632.34

U.A.E. 7347.88 8591.79 4641.10 4354.08

Total 9814.93 11,775.31 7063.52 7805.04


INDIA-GCC TRADE RELATIONS:India's total trade with GCC countries grew from USD 5.5 billion in 2000-2001to USD 16.35 billion in 2004-2005.Rise in both exports to and imports from the GCC countries have underlinedthe increase in India's overall trade with the region.


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INDIA-GCC TRADE RELATIONS:

BAHRAIN: Accounted for 1.5% of India's exports to the GCC region and 1.6% of India's total importsfrom the GCC region in 2004-2005.

KUWAIT:Exports share of 4.3% of India's total exports to the GCC region.

OMAN:Increase in exports of machinery and instruments, manufactures of metals, and non-ferrous metals.

QATAR:Smallest share of India's exports to the GCC region.


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INDIA-GCC TRADE RELATIONS:

SAUDI ARABIA:Second largest trading partner after the U.A.E. in the GCC region. Accounting for 14.6% of total exports and 18.3% of total imports during 2004-2005.

UNITED ARAB EMIRATES:Second largest market for India's exports, after the U.S. Accounted for 9% of India's total exports, and imports from the U.A.E. accounted for4.3% of India's total imports during the year 2004-2005.


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INDIA-GCC TRADE RELATIONS:BAHRAIN KUWAIT OMAN QATAR S.A. U.A.E.

EXPORTITEMS OFGCC

Metaliferrous Ores And Metal Scrap;

Non-ferrous Metals;InorganicChemicals; Pulp And Waste Paper;Sulfur AndUnroasted IronPirates; CrudeFertilizer;Manufactures Of Metals; TransportEquipment; Cotton Yarn And Fabrics; And Non-electricalMachinery

Organic Chemicals;

Metaliferrous Ores And Metal Scrap;Sulfur AndUnroasted IronPirates; ArtificialResins And Plastic -Materials;InorganicChemicals;Electronic Goods;Pulp And WastePaper; Wool Raw; And Iron And Steel

Metaliferrous Ores And Metal Scrap,

Non-metallicMineralManufactures, NonFerrous Metals, Iron And Steel, ArtificialResins, PlasticMaterials, Dyeing And ColoringMaterials, Fruits And Nuts, Trans-port Equipment,Pulp And WastePaper, ElectricalMachinery

Organic AndInorganicChemicals;Fertilizer

Manufactures; Artificial Resins And PlasticMaterials; Sulfur And Unroasted IronPirates;Metaliferrous Ores And Metal Scrap;Pulp And WastePaper; Non-electricalMachinery;ElectricalMachinery; AndDyeing AndColoring Materials

Organic Chemicals;Inorganic Chemicals, Artificial Resins AndPlastic Materials;Metaliferrous Ores AndMetal Scraps; Leather;Gold And Silver;Fertilizer Manufactures; And Pulp And WastePaper

Pearls, Precious AndSemi-preciousStones, Gold, AndSilver


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INDIA-GCC TRADE RELATIONS:BAHRAIN KUWAIT OMAN QATAR S.A. U.A.E.

IMPORTITEMS OFGCC

Cotton Yam Fabrics And Made Ups; Aluminum OtherThan Products;Machinery AndInstruments;Manufactures Of Metals, Paper Or Wood Products;TransportEquipment; Fresh Vegetables; RMGCotton And Acces-sories; Manmade Yarn And Fabrics; And Primary AndSemi-finished Iron And Steel

Basmati Rice; Glass,Glassware, AndCeramics; RMGCotton And Accessories;Primary And Semi-finished Iron AndSteel; Petroleum And CrudeProducts; Manmade Yarn And Fabrics;Machinery AndInstruments; Meat And Preparations;Manufactures Of Metal; And Oil Mills

Manmade Yarn AndFabrics, Meat AndPreparations,Electronic Goods,Poultry Products,Plastic AndLinoleum Products,TransportEquipment, And Wheat

Glass, Glassware, And Ceramics;Machinery AndInstruments;Manufactures Of Metals; TransportEquipment;Primary And Semi-finished Iron AndSteel; ElectronicGoods;ManufacturedRubber Products;Pro-cessedMinerals; Meat AndPreparations;Plastic AndLinoleum Products

Basmati Rice; RMGCotton And Accessories;Manmade Yarn AndFabrics; Non-basmatiRice; Manufacture Of Metals; RMG ManmadeFibers; And Metal AndPreparations

Gems And Jewelry;Plastic And LinoleumProducts; PetroleumProducts; Manmade Yarn And Fabrics;RMG Cotton And Accessories;Manufactures Of Metal, Machinery, And Instru-ments;Primary And Semi-finished Iron AndSteel; And Cotton Yarn And Fabrics


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INDIA-GCC INVESTMENT RELATIONS:

A number of Indian joint ventures and wholly owned subsidiaries have been approved inthe GCC region.

Major areas of operations include software development services, engineering services,tourism, readymade garments, chemical products, and agriculture and related activities.


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TRADE POTENTIAL:

Points are considered when identifying potential export items to the GCC regions:

India's export capabilities, and the commodities being imported by the GCC countries

Commodities for which India has a comparative advantage in global exports

Commodities whose exports to other countries have registered high growth

Commodities for which India has been doing well in other markets


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INVESTMENT POTENTIAL IN SECTORS:BAHRAIN KUWAIT OMAN QATAR S.A. U.A.E.

POTENTIALSECTORS

IT AndTelecommunications, Education And Training,Tourism, HealthCare, And

FinancialServices

Construction;Operation AndManagement Of Infrastructure

Enterprises; Bank And InvestmentCorporations;Insurance Com-panies; IT AndSoftwareDevelopment;Hospital AndMedicinesManufacturing;Land, Sea And AirTransport;Tourism; AndReal EstateInvestment

Agriculture And Fisheries,Manufacturing, Tourism AndTrading

Foodstuffs,Chemicals,Petrochemicals,Plastics AndRubber, MetalIndus-tries,Engineering,Education,Tourism, AndHealth CareSectors

Water AndDrainage;Telecommunications; AirTransportation AndServices; Railways,Roads, And Sea PortServices;

EducationalServices; Agricul-tural Services; AndHealth Services

Information AndCommunicationTechnology;Media AndEntertainment;FinancialServices;Construction AndReal Estate; AndTravel AndTourism


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STRATEGIES TO ENHANCE COMMERCIAL RELATIONS:

Enhancing exports through local partnerships

Focus on trading activities in the GCC region

Cooperation in the banking and financial sectors

Focus on privatization programs

Entrepreneurship development


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STRATEGIES TO ENHANCE COMMERCIAL RELATIONS:

OTHER MEASURES:

Cooperate closely with development funds to set up projects in the GCC region.

Indian companies can enter into joint ventures and tie-ups with local companies forcontracts in Iraq.

Indian companies/institutions could also explore the possibilities of setting up technical

and vocational colleges and coaching institutes for higher education in the GCC region.

Indian companies can explore the possibilities of setting up IT parks, hospitals, hotels,

and tourist facilities.

Indian companies could also share their expertise in providing software programs and

services for banks and financial institutions in the region.

K b


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Kaaba


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Documents

FINAL - Doing Business With GCC [Group-3]