UKTI Gulf High Growth UK Tour (Glasgow)

Microsoft PowerPoint - @Final presentation Gulf tour Glasgow

UKTIGULF HIGH GROWTH UK TOUR

GLASGOW

www.sdi.co.uk

9-13 JUNE 2014GLASGOWBELFASTDURHAM MANCHESTER LONDON

Keynote Speech

Ian Gibbons MBE

Gulf High Growth UK Tour 2014

Ian Gibbons MBE HM Deputy Consul General &

Director UK Trade & Investment Dubai

UKTIs mission Support UK companies to grow their

business through international trade; connect UK business to the worlds top

commercial opportunities;

attract high quality inward investment to the UK; and

establish whole-of-government relationships with major wealth creators to increase exports and investment.

Routes to Market & SDI Support

Colin Crabbe


Colin CrabbeInternational Senior Manager

High Growth Markets Desk Middle EastScottish Development International

Scottish Development International (SDI) is the specialist inward investment and trade arm of the Scottish GovernmentScottish Government

Single point of contact for all international business development needs

Raise the ambition of more Scottish businesses to think, compete and trade globally

Attract investment and talent

International trade

Eco

no

mic

Develop

ment

Attract investment and talent which builds on Scotlands globally competitive sectors

Increase the global competitiveness of the business environment in Scotland

Enhance Scotlands image globally

Foreign investment

Eco

no

mic

Develop

ment

About

BackgroundStarted in 1981Joint venture: Scottish Government Scottish Enterprise Highlands & Islands

EnterpriseEnterprise

People230 staff 23 overseas offices Industry specialists Local staff throughout

Scotland

Budget36m

Supporting Scottish companies in their global growth

Trade

Identify market opportunities and provide market intelligence

International strategy development

Inward Investment

Collaboration and risk reductionIdentify staff, training, property and

academiaPrepare businesses to do business

overseas

Identify business partners and finance support options

Facilitate connections and business relationships

Identify business partnersPotential financial assistance

Dedicated aftercare

Sectors

Financial & Business ServicesEnergy Oil & Gas

Creative Industries &Electronic Technologies Food and Drink

Tourism UniversitiesLife Sciences Other Growth Sectors Aerospace, Defence,

Marine Chemicals Construction Forest Industries Healthcare Textiles

Month EventsJanuary World Future Energy Summit Abu DhabiJanuary Arab Health - DubaiFebruary Gulf Foods - DubaiFebruary Gulf Foods - DubaiMay INDEX International Design Exhibition - DubaiJune UKTI High Growth Markets Tour - ScotlandSept Dubai FDI visit to Scotland - ScotlandOct Horizontal MissionOct GITEX Technology Week - DubaiNov ADIPEC Abu Dhabi International Petroleum Exhibition

Thank You


Panel Discussion

Opportunities & Challenges in United Arab Emirates, Kingdom of Saudi

Arabia, Qatar, Oman and Kuwait

Gula Al Sharafi


Senior Trade AdviserBritish Embassy, Kuwait

Why Kuwait? Kuwait is one of the richest countries in the Arabian Gulf region, enclosed by Saudi Arabia in

the south and Iraq in the north. It is the gateway into Southern Iraq which is an importantaccess point for UK companies

Kuwait sits on an estimated 9% of the world oil reserves, a high percentage of which areeasily extracted.

Second most free economy in the Middle east.

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Second most free economy in the Middle east.

Trade has doubled over the last 5 years. The UK exported 531 million of goods to Kuwait in2013. UK exports in the financial, legal and other service sectors are worth around 900m ayear.

Kuwait Vision for 2035 is to transform Kuwait into a world class Financial and CommercialCentre.

Kuwait has just embarked on an ambitious Development plan. UK companies are wellplaced to take advantage of opportunities in many sectors.

Opportunities across a wide number of sectors, including Infrastructure, Transportation,Energy, Training & Healthcare/Life Sciences, Retail and Finance.

Sam Oliver


Trade & Investment OfficerUK Trade & Investment,

British Embassy, Oman

Why Oman?

Relationship - UKs special bi-lateral relationship with Oman. High level collaborative engagement at ministerial level (to/from the UK)

UK is Omans No. 1 FDI Partner (3 billion)

Education - UK is the top 2 destination for Omani students and nearly 20

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Education - UK is the top 2 destination for Omani students and nearly 20 educational affiliations

Omans aspiration to become Gulfs logistics gateway

Opportunities across a wide number of sectors, including Infrastructure, Energy, Healthcare & Education & Training

2 HVOs Railway and Sultan Qaboos Medical City

Gareth OBrien


Director of Trade & InvestmentBritish Embassy, Qatar

Why Qatar? Fastest growing economy in the world over last 7 years and highest GDP per capita in 2013

$220bn spend on infrastructure over next 8-10 years in lead up to Qatar 2022 World Cup and Qatar 2030 Vision

Third largest proven reserves of natural gas - 13% of world total Shell has largest single investment in Qatar - GTL plant at Ras Laffan ($21bn) - their largest

investment globally

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investment globally Qatar is UKs third largest export market in the Arab World, around 2bn. UK export of goods

up 67% in first quarter of 2014 Large sovereign wealth funds ($200bn) - with investments of 30bn in UK and growing Opportunities across a wide number of sectors including Infrastructure, Healthcare,

Education & Training, Security, Transport and Retail

Four HVOs: World Cup, Rail, Education & Food Security A lot of high level interest - 24 ministerial level visits in financial year 2013/14 Home to 20,000 UK nationals up from 1,450 in 1995

Mohammed Shokat


Consul General,British Consulate-General, Jeddah

Why Saudi Arabia?

Saudi economy is the largest in the region. UK exports in goods and services worth over 7bn. UK second largest cumulative

investor with over 200 JVs estimated at 11.5bn Vast programme to upgrade human and physical infrastructure, with 2014 Budgeted

spending at $228bn Key sectors for Govt spending: education, health, transportation, water all are being

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Key sectors for Govt spending: education, health, transportation, water all are being targeted by UKTI as High Value Opportunities

In last 12 months, UKTI have helped UK companies achieve a total of just over 1bn within the HVOs

Fastest growing sectors in 2013 were the construction (8.1%), transport and communication (7.2%), as well as the retail sector (6.1%).

Rob Kelly


Deputy Head of UKTI Abu DhabiUAE

Why UAE? UKs 12th largest trading partner globally with value of bilateral trade in goods and

services estimated at around 12 billion for 2013-14 UAE is the Logistical Hub of the Middle East. Dubai has Jebel Ali Port & Emirates. Abu

Dhabi has Etihad & KIZAD. In addition, 36 Free Zones in the UAE make the region one of the most attractive global entrepots

Home to in excess of120,000 UK Nationals, approximately 5,000 UK companies/subsidiaries 1,000,000 UK visitors each year

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companies/subsidiaries 1,000,000 UK visitors each year UKTI provided assistance to approximately 2,000 UK companies considering exporting

to the UAE in 2013-14 Opportunities across a wide number of sectors, including Infrastructure, Energy,

Education & Training & Healthcare/Life Sciences

Case study Sharing experiences


Roddy Hammond,Worldteachers Recruitment

Coffee Break&

Networking opportunities


Networking opportunitiesSign up for one to one meetings at the

registration desk first come first served basis


Panel Discussion

Doing Business and Setting up in the Doing Business and Setting up in the UAE, KSA, Qatar, Oman and Kuwait

Panelists:HSBC / KPMG / Pinsent Masons / British Offset


Finance Considerations

Carlos Guallart,Export Financial Adviser,

UK Export Finance

UK Export Finance - Brief History

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Who we are:UK Export Finance is the operating frame of the Export Credits Guarantee

Department, which is the UKs Export Credit Agency

Its statutory purpose is to support exports and investments made overseas

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UK Export Credit Agency established in 1919

We complement, we dont compete

We support exporters of all sizes and sectors

Trade finance and Insurance Solutions Group for smaller exporters and

medium size companies

What we do Provide assistance to exporters on trade finance and credit insurance

transactions whether in the private market or through UKEF products and

services;

Provide trade credit insurance to exporters against the risk of non-payment for

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amounts owed under export contracts;

Provide guarantees to banks to support working capital financing;

Provide guarantees to bank to issue contract bonds on behalf of exporters;

Provide guarantees to banks and issuers in the debt capital markets in respect

of medium/long term loans to overseas buyers who purchase goods and

services from UK exporters;

Lending directly to overseas buyers who purchase goods

What if I need to provide a bond to the overseas buyer?

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buyer?

Bond Support Scheme

Bond Support SchemeWhen you sign an export contract with an overseas buyer, your customer may

ask you to provide a bond from your bank.

There are several types of bonds:

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Advance payment bond Performance bond Warranty bond Bid bond

Your bank can help you by issuing the bond on your behalf to the overseas buyer

Banks often ask exporters to provide cash to issue the bond and cover the risk =

Bond Support Scheme (cont.)However we have to consider two issues:

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=

Leave small companies without the working capital they need

Banks will limit the total value of bonds theyll issue for a company=

You might exceed this limit if you win several export contracts and they all require bonds

Bond Support Scheme (cont.)How can UKEF help?

UKEF can issue a partial guarantee to your bank =

Share the risk with your bankEnables the bank to issue the bond/s without requiring as much of your cash

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UKEF up to

80%

Your bank

20%

Enables the bank to issue the bond/s without requiring as much of your cash No minimum maximum value / term

Improves your working capital

Bond

How it works? (e.g. 1M Export Contract)

International BuyerUK companyExport Contract

30% upfront payment

Bond Support Scheme (cont.)

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30% Advance payment bond

20% Performance Bond

10% Warranty Bond

Your Bank 300K

200K

100K

Bank will ask the exporter for cash before issuing the bond

300K 200K 100K

UKEFCould

guarantee up to 80% of the

value of the bond 4060K 20K 120K

600K++ +

+

=

=

We provide government guarantees to participating banks who issuebonds on behalf of UK exporters. (e.g. performance, warranty, bidbonds)

Specific contract Support extends to all bonds related to an export contract (e.g.


performance, warranty, advance payment, bid bonds) Covering up to 80% of the bond value

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Eligibility UK based exporter 20% Minimum UK content

Benefits

The bank is able to issue the bond

Sharing the risk with your bank enables it to issue more bonds on your


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Sharing the risk with your bank enables it to issue more bonds on yourbehalf or to issue a bond without requiring as much of your cash orcollateral

No minimum or maximum contract values or duration

Improves your working capital

Case Study / J&C Joel

http://vimeo.com/63897556


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What if I need export working capital?

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What if I need export working capital?

Export Working Capital Scheme

Export Working Capital Scheme (cont.)How it works?

International BuyerUK companyExport Contract

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UKEFCould guarantee up to 80% of the approved

facility 75% of the export contract

Not enough security

Contract is too big

Financial situation

Your Bank

UKEFShares the risk with the bank =

Enables exporters access to finance

Export Working Capital Scheme (cont.)How it works?

We provide a partial guarantee to the bank in order to increase its capacity to lend you the money you

need to deliver your export contract.

UKEF up to

80%

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need to deliver your export contract. We can guarantee up to 80% of the approved facility.

The maximum value of the finance must be no moreThan 75% of the export contracts value

Export contract value

Approved facility

80%

UKEF up to

75%

Export Working Capital Scheme (cont.) We provide government guarantees to participating banks providing

trade finance loan facilities to UK exporters to fund export contracts Specific contract Covering up to 80% of the loan value

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Eligibility: UK based exporter 20% Minimum UK content Finance up to 75% of the contract value

Case Study / JDR Cable Systems Ltd


Export Working Capital Scheme (cont.)

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How do I protect myself against not being paid by the overseas buyer?

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by the overseas buyer?

Export Insurance Policy

Export Insurance

We insure exporters against the risk of not getting paid by overseasbuyers or of not being able to perform a contract due to specific events(e.g. war, political or economic events)

Specific contract

How can UKEF help?

Specific contract No minimum contract / Premium starts from 250 All sectors, up to 95% cover Not for EU / Rich OECD markets below 2 year risk horizon

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Eligibility: UK based exporter / Customer based overseas Exporter must have been refused to get insurance from private sector 20% Minimum UK content

Trade Finance and Insurance Solutions

Bank based schemes / No cost to Exporter

No security required by UKEF

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No security required by UKEF

Formal application through bank

Insurance policy via insurance broker or direct

What if I need Export Finance Advice?

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What if I need Export Finance Advice?

Free consultation with an Export Finance Adviser

Export Finance Advice

Assist exporters, banks, insurance brokers and intermediaries withadvice and guidance on UKEF products and services

Assist exporters with applications for UKEF support and liaise with

How can UKEF help?

Assist exporters with applications for UKEF support and liaise withbanks and insurance brokers as needed

Provide guidance to exporters in accessing private market trade andcredit insurance, and provide suitable introductions

Provide free assistance and guidance

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Export Finance Advice (cont.)

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Carlos Guallart, Export Finance Adviser, ScotlandTel: 07580 742533 Email: [email protected]

TAKE YOUR BUSINESS FURTHER.FURTHER.


Closing Remarks

Ian Gibbons MBEHM Deputy Consul General &

Director UK Trade & Investment Dubai

Networking Lunchfollowed by 1-2-1 sessions

Gulf High Growth UK Tour

followed by 1-2-1 sessionsSign up for one to one meetings at the

registration desk

first come first served basis