السالم علیكم و رحمة اهللا و بركاتھسیداتي سادتي

May the peace of God, mercy and blessings be with youLadies & Gentlemen

ASAE International ConferenceOpening Doors to Middle East

Ajay BhojwaniDirector – Abu DhabiMCI Middle East7th March 2008

Connecting Great Ideas and Great People

Agenda

§ Brief Introduction

§ About the Region§ Introduction to the region§ Key Drivers / Economic Engines and forces behind them§ Why the region ?

§ Quiz

§ Connecting Globally

§ Case Studies (Association Activity in Middle East)§ Congress / Conference§ National Association

Agenda

§ Desert Logic – Trading in Arabia

§ Group Discussion

§ Expanding into the region§ Congresses / Events§ Setting up offices§ Working through a partner

§ Quiz

§ Questions & Answers

Introduction

§ Background§ Link to Associations§ Breaking into Middle

East§ Dubai, 2006§ Abu Dhabi, 2007§ Qatar, 2008

§ Climbing the Sand Dunes§ Desert History

About Me

About the Region

The Region

§ Middle East

§ Gulf Cooperation Council (GCC)

§ Arab World

§ Middle East and North Africa (MENA)

§ Europe, Middle East & Africa (EMEA)

The Region – Middle East

The Region – GCC

Kingdom of Saudi Arabia

Kingdom of Bahrain

United Arab Emirates

Kuwait

Qatar

Sultanate of Oman

Country Profiles

2.72.6 309,500 MuscatSultanate of Oman6

1.10.9 11,437 DohaQatar5

3.43.2 17,818 Kuwait CityKuwait4

5.24.9 77,000 Abu DhabiUnited Arab Emirates3

1.10.7 711 ManamaKingdom of Bahrain2

25.925.3 2,240,000 RiyadhKingdom of Saudi Arabia1

(In million) (In million) (In sqm)

Estimates for 2007Population in 2006 Area

CapitalCountriesS.No

Source:

AMEInfo

Kuwait Finance House

Key Drivers / Economic Engines

§ United Arab Emirates – Abu Dhabi & Dubai

§ Kingdom of Saudi Arabia – Riyadh & Jeddah

§ Qatar – Doha

§ Kingdom of Bahrain – Manama

Forces Behind the Key Drivers

§ Economic Growth

§ Financial Strength

§ Infrastructure Development

§ Tax Free Environment

§ Oil & Gas Industry Support

Economic Growth

4.00%6.50%3.50%6.20%2.10%7.10%Kingdom of Bahrain

6.10%6.20%5.70%5.50%3.20%6.00%Sultanate of Oman

12.60%10.20%14.00%8.50%11.80%7.20%Qatar

5.40%5.10%5.00%3.90%3.00%7.60%Kuwait

5.00%5.20%4.10%3.10%2.20%4.30%Kingdom of Saudi Arabia

7.60%9.00%8.70%8.60%9.30%9.40%United Arab Emirates

Inflation (%)Real GDP (%)Inflation (%)Real GDP (%)Inflation (%)Real GDP (%)

Predictions for 200820072006Countries

Source: Monica Malik, Economist, EFG - Homes

Booming Industries

§ Construction and Real Estate

§ Tourism and Events

§ Oil & Gas

§ Banking & Finance

§ Healthcare

Economic Growth – Top 10 in 2008

8.10%Vietnam101.20%United States of America

8.50%Panama88.50%Georgia8

8.60%United Arab Emirates79.20%Kazakhstan69.50%Qatar5

10.10%China411.10%Eqatorial Guinea317.40%Azerbaijan221.10%Angola1

GDP Growth (in%)CountryRank

Source: Economist Intelligence Unit

Financial Strength

§ Sovereign wealth funds§ Project Financing & FDI’s§ Oil & Gas§ Construction§ Tourism

§ Corporate HQ’s § Oil & Gas§ IT§ Healthcare§ FMCG

Infrastructure - Bahrain

Infrastructure – Saudi Arabia

Infrastructure - Qatar

Infrastructure - UAE

Infrastructure - UAE

Aviation

Sources:

Business Intelligence Middle East

Center for Asia Pacific Aviation (CAPA)

Annual average growth of passenger traffic in Middle

East is predicted to remain strong at 6.9% in

comparison to global average of 4.8%

Investment in Aviation

§ Airport Development valued at over $43 billion in the

gulf

§ UAE - $16.8 billion

§ Saudi Arabia - $11.3 billion

§ Qatar - $5.5 billion

§ Over 900 aircrafts to be purchased

Source: Gulf News, 24 Feb 2008

Other forces

§ Tax Free Environment

§ Oil & Gas Industry Support

§ Safety & Security

UAE took 10th position globally in safety and security,

resulted in being considered safer than the UK at 44th

and USA at 45th

Source: World Economic Forum (WEF)

Why the Region ?

§ Integrated international facilities

§ No VAT or Income Taxes (GCC countries)

§ Multi cultural environment

§ Hub between East and West

§ Growth of tourism

§ Government support for non-profit organizations and associations

§ Buoyant Market (Gulf states, Greater Middle East, Sub Continent and North Africa)

Quiz

Quiz

Saudi Arabia

Syria

Oman

Yemen

...

.

Quiz

The Muslim pilgrimage to Mecca is… ?Hajj

What is the language spoken in the region ?Arabic

Quiz

Name the city where this hotel is located ?

Dubai, UAE

Connecting Globally

Fundamental Differences

§ People

§ Culture

§ Art & Music

§ Religion

§ Economies

§ Politics

§ Values

§ Food

Comedy…(family values)

Globalization

New York / Dubai / London ?

Integration

Case Studies

Association Activity in the Region

§ Congress – FIATA 2007§ 1,200 pax§ 3 days§ 2 social events§ Spouse programme§ Pre & post tours§ Inaugurated by the ruling family§ Local host committee§ Government involvement & endorsement§ Local Sponsors and Attendance

Association Activity in the Region

§ Emirates Medical Association (EMA)

§ Membership

§ Events / Conferences

§ Journal

§ Funding & Sponsorships

§ Government Support

§ Legal Existence / Legislation

§ Influencing decisions on policy level

Desert Logic

Desert Logic – Trading in Arabia

§ Friday is weekend !

§ Be Patient

§ Politics & Religion discussions are taboo

§ Handshakes

§ Weekends / Work during off hours

§ Business meetings with Arabs

§ Simple and easy to understand communication language

§ Flexibility with Contracts

§ Time lines, Details on scope of work

§ Handshake agreements

§ Participation of government organizations

§ Business Models

§ Financial Discussions and Obligations

§ Over servicing of customers / members

§ Last minute, last minute, last minute…

Desert Logic – Trading in Arabia

Group Discussion

Group Discussion

§ Form your group

§ Each group to discuss the opportunities and threats of

expanding into the region

§ Present top 1 opportunity and threat to the audience

Expanding into the Region

Expanding into the Region

Holding a meeting / congress

§ Appoint a local host committee or representative

§ Engage a PCO / DMC with complete local knowledge and relationships

§ Partner with a governmental or national association

§ Get government endorsement and support

§ Address local or regional issues in the programme

§ Prepare a good budget due to rise in hotel and venue costs

§ Ensure regional press and media coverage

§ Be prepared for last minute changes and additions

Convention Venues in the region

Facts – Hotels in the region

168,684 147,188 120,037 90,202 CumulativeTOTAL

26,204 24,839 23,035 19,261 CumulativeKingdom of Saudi Arabia

12,622 11,382 9,372 6,068 CumulativeQatar

8,296 7,496 6,547 5,884 CumulativeSultanate of Oman

6,032 5,472 5,027 4,225 CumulativeKuwait

10,130 8,676 7,663 6,505 CumulativeKingdom of Bahrain

105,400 89,323 68,393 48,259 CumulativeUnited Arab Emirates

2010 2009 2008 2007 StatusCountry

Region's Hotels & Serviced Apartments - Number of Rooms - By Country (Projected)

Source: TRI Hospital Consulting

Number of Hotel Rooms in New York (2007) – 75,000

Increase of less than 10% y-o-y (2010) – 99,825

Hotel Rooms (2007-2010)

118%

56%

43% 41%

108%

36%

0%

20%

40%

60%

80%

100%

120%

% Increase

UAE Bahrain Kuwait Oman Qatar Saudi Arabia

Countries

Source: TRI Hospital Consulting

Expanding into the Region

Setting up offices

§ Local Partner Approach / Free Zone Approach

§ Office Space

§ Legislation§ Registration

§ Incorporation

§ Taxation

§ Banking

§ Human Resources

§ Build relationship with government and industry leaders

§ Marketing and attracting members

§ Be prepared to spend time in traffic

Free Zones in UAE

§ Over 18 free zones§ Internet City

§ Media City

§ Knowledge Village

§ Jebel Ali

§ Ajman Free Zone

§ And many more

§ Incorporation

§ Legislation

§ Office Space

Expanding into the Region

Operating through an Association Management Company§ Quick start§ Global expertise, local experience§ Local relationships§ Operational Benefit§ Financial § Technology § Human resources

§ Proven Results§ One Stop shop solution

Keeping track of Middle East

Keeping track of Middle East

Keeping track of Middle East

Quiz

Quiz

Jordan

UAE

Kuwait

...

Quiz

Where was the 15th Asian Games 2006 held ?Doha, Qatar

Where is the Formula 1 Race held every year in the Middle East ?Bahrain

Quiz

What is the national sport of Middle East countries?Soccer

Can you name the tallest building being built in Dubai ?Burj Dubai

Questions & Answers

Contact information:

Ajay BhojwaniDirector – MCI Abu DhabiPhone: +971 50 150 5235E-mail: ajay.bhojwani@mci-group.comWebsites: www.mci-group.com

Connecting Great Ideas and Great People