Belgium

Strength in Diversity

Yves Leterme, Belgium’s Prime Minister, is the leader of the Christian Democratic and Flemish party (CD&V) who previously served as the country’s Prime Minister from March 2008 to December 2008.

He has also served as Minister of Foreign Affairs, Deputy Prime Minister and Minister of Budget, Institutional Reforms, Transport and the North Sea in the Belgian federal government, and is former Minister-President of Flanders and Flemish Minister of Agriculture and Fisheries.

Yves leterme - Prime minister

The Prime Minister resigned his post in December 2008 following the crisis resulting from the sale of Fortis to BNP Paribas, but was reinstated in November 2009. During his tenure as Minister-President of Flanders, Leterme developed a reputation for budget reforms and for the promotion of regional investments. As Prime Minister, he continues to support increased regional autonomy.

In a speech delivered in January 2010, the Prime Minister outlined his goals for the EU, which is now led by the new European Council headed by former Belgian Prime Minister Herman Van Rompuy. Leterme said, “In spite of all declared policy on a free European market, there is still a large dose of economic nationalism around. The answer, in my opinion, has to be the enactment of clear, strong and enforceable European rules for fair and open markets. I think the Lisbon Treaty gives us more instruments to tackle those known as the ‘big boys’. It will be a priority of the Belgian EU presidency to contribute to further European integration and consolidation.”

Barbados

Barbados Does It Best

Prime Minister David Thompson is making sure Barbados’s many investment attractions are better known. He says, “Barbados is a very stable democracy with an excellent private sector that has developed strong competencies in service-oriented activities. We also have advantageous taxation agreements with countries all over the world. I think we have a good international profile.”

The Prime Minister predicts enhanced ties between Barbados and the United States in the future. He says, “We are an active member of CARICOM and we have seen more of our products entering the United States market this year. Also, the United States is our biggest tourism market.”

While Barbados is facing increasing competition from other destinations, it is promoting its very real advantages. The Prime Minister says, “Barbados’s strengths speak for themselves, but we are now working to broaden our tourism product. For example, we have witnessed a dramatic improvement in culinary skills, and we see Barbados as a culinary tourism destination. We are also encouraging Barbadians living abroad to bring more business to us.”

In addition to attracting American companies and visitors to Barbados, the government is helping local companies penetrate the United States market. The Prime Minister singles out a few success stories among local and foreign investors in Barbados, including Goddard’s, which has proved successful in Miami and South America; SOL Caribbean, Texaco, the Hilton group, Mount Gay Rum, Malibu, and several up-and-coming young companies.

New projects for the government include one to build a hospital with support from the Bill and Melinda Gates Foundation. Concerning the importance of New York for Barbados, Prime Minister Thompson says, “Most of our capital market loans are based out of New York, and some very influential Barbadians and their families live there. We view New York as a very high-value market for us.”

Curaçao

Caribbean Hub with Investment Appeal

Curaçao, seat of government for the Netherlands Antilles, has developed a diversified economy based on earnings from the island’s oil refinery (which account for around 90 percent of the island’s export revenues), remittances from the Netherlands, offshore banking, other services, trade, and tourism. Curaçao also operates the largest dry dock in the region at its bustling, well-equipped port in Willemstad, which serves as a major regional transshipment center as well as a top cruise port.

Most of the companies registered with Curaçao’s Chamber of Commerce are involved in wholesale and retail trade, hospitality, financial and other business services, and transport and communications.

Curaçao’s tourism sector is seeing strong growth, particularly concerning cruise visits. Around 200 cruise ships call at the island yearly, and Curaçao attracts around 240,000 tourist visitors each year, most of them from Europe.

Curaçao imports about 90 percent of everything that is consumed on the island, and is one of the three biggest importers of American goods in the Caribbean. The island is currently building on its strategic location and well-equipped port to position itself as a trade hub linking the European Union (thanks to Curaçao’s close ties with the Netherlands) and North, Central and South America, and destinations throughout the Caribbean.

Curaçao voted in a referendum to become an autonomous territory on an equal footing with the Netherlands, a goal the island hopes to reach by 2010. This will give Curaçao’s economy a significant additional stimulus.

Encouraging foreign investment is a cornerstone of Curaçao’s economic development strategies, and local government is working hard to create an environment that is attractive, open, and friendly to foreign investment through privatizing key enterprises, upgrading efficiency, and creating investment incentives.

With its highly developed infrastructure, stable government and strategic location, Curaçao has established the foundations for continued economic growth.

Prime Minister Positive About Curaçao’s Fresh Start

Emily de Jongh-Elhage, Prime Minister of the Netherlands Antilles

Curaçao, the largest of the five islands that make up the Netherlands Antilles, is well placed to thrive as an autonomous territory, according to Emily de Jongh-Elhage, Prime Minister of the Netherlands Antilles. “By 2010, we hope that Curaçao will be on its own as an equal partner within the Kingdom of the Netherlands,” she says.

Following referendums, Curaçao and St. Maarten will be autonomous territories in 2010, while the other islands in the group now have Netherlands city status.

The move will free Curaçao from the debt burden that the Netherlands Antilles as a whole has incurred, 70 percent of which will be taken on by the Netherlands. “Curaçao will have a fresh start,” the Prime Minister says.

Explaining why Curaçao will achieve success, the Prime Minister points out, “Curaçao benefits from being a small Caribbean island with a strong relationship with a great European country. This is why investors are here. We have much more to offer than sea, sand, and sun. We have a natural harbor, terrific infrastructure, a dry dock to repair ships, a strong offshore financial community, a refinery, a very large container transshipment area, a free zone, and a growing tourism sector.”

Other advantages the Prime Minister cites are Curaçao’s natural and cultural attractions, its highly educated and multilingual population, its strong judicial system that is comparable with that of the Netherlands, and its location outside the hurricane belt. “Curaçao has a lot of potential,” Ms. de Jongh-Elhage concludes.

Abu Dhabi, Thriving in Challenging Times

Keeping Plan 2030 on track

Abu Dhabi’s Plan 2030, one of the world’s most innovative and comprehensive urban-development programs, is set to move ahead as anticipated in spite of the challenge posed by the global financial crisis. Abu Dhabi’s government, typically proactive, is determined to keep the momentum going as it implements ambitious projects that will transform Abu Dhabi from an oil-based to a knowledge-based economy.

Proactive approach to maintaining liquidity

The government’s injection on February 4 of AED 16 billion (USD 4.36 billion) into five of its banks is just one sign that Abu Dhabi will do what it takes to keep Plan 2030 on track. When it announced the move, Abu Dhabi’s Department of Finance commented, “Given current global economic conditions, the government believes that this strategic initiative is an appropriate and proactive response to ensure that the strong confidence in Abu Dhabi’s financial institutions is further enhanced.” The five banks are Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, First Gulf Bank, National Bank of Abu Dhabi and Union National Bank.

Abu Dhabi shares closed at their highest level for almost two weeks after the capital injection. The ADX Banks and Finance Index climbed 4.7 percent while Abu Dhabi’s ADX General Index gained 1.7 percent. The recent move followed the UAE government’s decision to provide USD 32.6 billion in emergency funding facilities for the financial sector in September 2008. The government continues to guarantee all bank deposits, a strategy that is reassuring foreign investors.

his highness Sheikh Khalifa bin Zayed Al Nahyan, President of the U AE and Ruler of Abu Dhabi

New mortgage lender

In November 2008, in another move to keep Plan 2030 going forward, the government announced that Abu Dhabi would launch a new mortgage lender backed by Mubadala, the government-run development agency, to

revive the housing market in case liquidity dries up during the credit crisis. The new lender, Abu Dhabi Finance, is a joint venture between Mubadala, Abu Dhabi Commercial Bank, Aldar Properties, Sorouh Real Estate and the Tourism Development and Investment Company. This move aims to counteract the current trend among many local and foreign banks in the Gulf region to be more cautious in their lending and to cut certain credit lines in reaction to the global financial crisis.

Other Abu Dhabi lenders are continuing to finance private-sector projects. Abu Dhabi-based Khalifa Fund will inject funding into 100 new projects in Abu Dhabi in 2009 involving small and medium-sized enterprises (SMEs) and growth sectors such as manufacturing and tourism, according to Dr. Halah El Sokari, the fund’s Director of Strategy and Planning. He recently commented, “Despite the financial crisis and business slowdowns in other places in the region and the world, nothing has changed in our five-year strategic plan. We are continuing to inject funding into SMEs this year and plan to go on doing so every year over the next five years. We will also be introducing an equity participation model in the form of a venture-capital fund. We would like to promote enterprises in the priority sectors outlined in the Abu Dhabi Plan 2030.”

Strong off-plan sales indicate economy still thriving

One proof that Abu Dhabi’s economy is still going strong in spite of the global downturn is that, in contrast to Dubai, Abu Dhabi is continuing to pull in increasing off-plan property sales. While the Dubai market is regarded as saturated, in Abu Dhabi demand for space is still huge and the supply currently absent. Abu Dhabi has also been delivering better price appreciation over the past 12 months than Dubai has, according to industry analysts.

his Highness Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces

The building boom will continue, Abu Dhabi’s leaders insist. “Projects now underway, as well as many which have not yet been announced, will fulfill Abu Dhabi’s potential as a vibrant and productive capital city,” says Falah Al Ahbabi, General Manager of the Urban Planning Council (UPC), the organization mandated to oversee Plan 2030’s implementation.

Concerning fears that global financial problems will cause difficulties in achieving Plan 2030’s goals, Al Ahbabi says, “Inflation, regardless of how severe it is, will have no effect on the 2030 strategy and neither will any recession in the U.S. economy, as inflation is accompanied by an increase in oil prices. Besides, recession, even if temporary, means the existence of very large amounts of money searching for investment opportunities. These sums might be in India, China or here in the UAE, which is one of the most stable countries in the Middle East.”

Plan’s long-term vision not affected by short-term events

Other Abu Dhabi leaders agree that Plan 2030 will move forward. H.E. Nasser Ahmed Alsowaidi, Chairman of the Abu Dhabi Department of Planning and Economy (DPE), commented in a speech at the end of January 2009, “The long-term nature of Vision 2030 ensures that the transformation of Abu Dhabi’s economy will be unaffected by short-term economic events. The current drop in the price of oil is not expected to impact the plan’s realization, as the baseline data used for the forecasts take into account market fluctuations and oil-price volatility. The economic diversification targets set by the plan will continue to reduce volatility in Abu Dhabi’s economic performance and its vulnerability to fluctuations in future economic cycles.”

Targeted sectors offer investment appeal

Alsowaidi believes that Abu Dhabi should achieve real GDP annual growth of 7 percent through 2015 and of 6 percent between 2015 and 2030 to ensure that Plan 2030’s goals are met. He identified infrastructure and services, human-resource development and financial development as key to the plan’s success, and added that public-private partnerships as well as foreign investment will be essential in achieving these initiatives.

The government has chosen to focus on sectors in which Abu Dhabi has or can develop a competitive advantage; these are energy, chemicals, metals and mining, aviation, aerospace and defense, pharmaceuticals, bio-technology and life sciences, hotels, restaurants and services and healthcare equipment and services. In addition, the government is targeting regional focus sectors like transportation, trade and logistics, education, media, financial services and telecommunications. All these sectors represent outstanding opportunities for international investors.

© Abu Dhabi Tourism

Massive construction underway or planned

Plan 2030 calls for the creation of more than 500,000 residential units as well as related infrastructure, including schools and hospitals; a sevenfold increase in the number of the emirate’s hotel rooms, which currently total 10,000; more roads and public-transport facilities; a new port; an industrial zone at Taweelah; expansion of Abu Dhabi International Airport; new special economic zones; and a new high-speed passenger and freight railway, among many other initiatives that will help cope with Abu Dhabi’s expected population and tourism growth over the next two decades.

Private sector continuing to launch new projects

Meanwhile, Abu Dhabi’s private sector continues to move forward in launching new projects. Al Qudra Holding recently inaugurated the region’s first academy in the Middle East North Africa region that provides real-time simulation of industrial facilities. The Emirates Simulation Academy (ESA), developed with an investment of AED 80 million (USD 22 million), is a joint venture between Al Qudra, the Center of Excellence for Applied Research and Training of Higher Colleges of Technology, and GSE Systems (US). “At a time when our region is especially reliant on oil, gas, and other energy sectors, ESA fills a critical role by being the main opportunity for professionals to be trained on emergency situations,” commented Mahmood Al Mahmood, CEO of Al Qudra Holding.

Estidama, Plan 2030’s cornerstone

Plan 2030 includes many “green” projects, and these are definitely going forward since they are key to the plan’s overall success. As the UPC’s General Manager Al Ahbabi comments, “Sustainability is central to the work of the UPC, and a key element of Plan Abu Dhabi 2030. In fact, the cornerstone of Plan 2030 is the Estidama initiative.” Estidama, which means “sustainable” in Arabic, is an ambitious integrated program to devise guidelines and regulations for sustainable, green design, operation and maintenance of all types of buildings and communities throughout Abu Dhabi.

Stimulus package a possibility

Projects like these require massive investment, but the government is confident that this investment will be forthcoming. As Alsowaidi said in his recent speech, “The Abu Dhabi government believes that the growth targets set by Plan 2030 are achievable. Even if the Emirate misses an annual growth target in an adverse year, this will not impact the ultimate achievement of the plan’s long-term growth and diversification targets. In addition, in any year of good growth, Abu Dhabi will easily exceed the set annual growth target.”

Would Abu Dhabi’s government create an economic stimulus package as other countries are doing to keep their economies on track? Al Suwaidi indicated this could happen. He said, “The Abu Dhabi government will do all that is necessary to assist in achieving the growth and diversification targets set by Plan 2030. Any actions that may be required to support economic activities in the coming period will be announced in due course.”

Plan 2030 seems certain to become yet another Abu Dhabi success story.

Al Qudra Holding

“Advancing Abu Dhabi’s Private Sector.”

Mahmood Ebraheem Al Mahmood CEO

Despite current market conditions, Abu Dhabi remains one of the fastest growing cities in the world. The city and the country’s success, usually associated with the production of crude oil, are also based on the government’s strategy to have a well-diversified economy.

Leading Abu Dhabi-based investor, Al Qudra Holding, stands out as the private company dedicated to realizing a similar vision of investing across sectors. Steady, long-term investment in fundamental sectors is critical for overall development of the Emirate and the region. Mahmood Ebraheem Al Mahmood, CEO of Al Qudra Holding states, “At a time like this, the most important thing to do is to try to maintain steady growth as realistically as possible in the most essential areas.”

Al Mahmood leads a large team of industry professionals who monitor all macro and micro changes in the market, enabling the company to adapt to dynamic needs and make strategic investment decisions that are consistent with demand. Al Mahmood emphasizes that the company pursues projects and processes that add sustainable value and focuses on establishing strategic relationships. As Al Mahmood states, “As the Middle East develops, Al Qudra is leading the way – we are the pioneer in this process. What differentiates Al Qudra Holding is our value-creating investment opportunities and our ability to deliver what we promise.”

Like the UAE, a major reason behind Al Qudra Holding’s success lies in its strategic investment across many sectors. “We have created several companies that focus on five main sectors that will achieve the right diversification to meet regional needs. Additionally, we are complementing other leaders in the region, particularly in Abu Dhabi” says Al Mahmood.

Al Qudra Holding provides integrated solutions for the real estate industry, infrastructure development, utilities production and distribution, industrial production, and agriculture. The Holding also encompasses many ventures from various industries including healthcare and education. Al Mahmood believes it is Al Qudra’s ability to combine solutions vertically and horizontally among the sectors that give the company the flexibility and adaptability to address the unique needs of the market and community.

Success is also driven by innovation and investment in people, continues Al Mahmood, “We want to pioneer new technologies and more efficient methods thus ensuring that, in all our developments and companies, we are always at the leading edge and promoting the highest standards. We are also investing in finding and developing the best people, including local talent.” Taken together, Al Qudra’s integrated, multi-sector strategy plus its investment in innovation and talent will be key building blocks for future success.

Al Qudra’s innovation is reflected in all of the company’s projects. Al Qudra’s wellness-themed Ain Al Fayda development in Al Ain is a groundbreaking, innovative housing development that has been singled out for its sustainability, innovation and future-focused design. In agriculture, Al Qudra has pioneered technologies that are helping to dramatically increase farming productivity in order to close the food gap in the region.

Being an exemplary corporate citizen also underscores Al Qudra’s commitment to the region. Al Mahmood believes that Al Qudra Holding should focus on win-win solutions in which the company should give back to those communities and regions in which it operates. The solutions that the company provides must also promote deeper success by transferring proper knowledge and skills.

Al Mahmood also emphasises the fact that all of Al Qudra’s initiatives are in line with the government of Abu Dhabi 2030 plan and the success of Al Qudra’s operations demonstrates that Abu Dhabi’s economy remains healthy with plenty of room for investment to be done by the private sector. With this in mind, Al Qudra is the benchmark for any private investment in the region.

Looking to the future, Al Qudra will continue to establish ventures that add value to existing operations by building integrated competencies. Going forward, Al Mahmood expands, “We want investors to know that we are not just local or regional; we are enhancing our presence throughout MENA and becoming increasingly global. We aim to be an international brand and to ensure quality in all we do. I am excited about the future and, in particular, the new talent we will be working with, because talent breeds talent. At Al Qudra, we embody foresight and entrepreneurship. We want to be known as a leading portal for strategic investment.”

Bermuda

Bermuda has developed a thriving economy based on financial services and tourism and now has the third-highest per capita income in the world, more than 50 percent higher than in the United States.

Bermuda means business

Ewart Brown, Premier

Premier Ewart Brown, Bermuda’s Head of State since 2006, says that while Bermuda’s economy, which is closely tied to that of the United States, will certainly be negatively affected by the current global financial crisis, the country’s business services and tourism sectors are well placed to weather the challenge. In a recent speech, he commented that in this period of global financial insecurity, “Bermuda’s international business sector, cemented in insurance and reinsurance, is well managed and continues to play a vitally important role in the world of risk management.”

Bermuda’s tourism sector is also on solid ground although the decrease in international air travel due to rising oil prices and financial woes will certainly affect this sector. As the Premier explains, “In addition to the United States market, source of 80 percent of our visitors, we have room for growth from Canada and Europe, London in particular, but airlines are reluctant to add routes these days.”

Paula Cox, Deputy Premier and Minister of Finance

Bermuda’s strategy is to create irresistible high-end offerings that will draw visitors even in an era of global financial challenges. It has launched what the Premier calls a “platinum period” of development focusing on luxury amenities. He says, “We have begun a phase of new hotel development, upgraded hotel properties, enhanced golf courses, and luxurious transportation options.” Bermuda’s great natural beauty, proximity to the United States, and welcoming population make it a natural for tourism development.

Brown urges American travelers to discover or re-discover everything that Bermuda offers as a tourism destination. He says, “We are blessed in Bermuda with natural beauty and we have worked to cultivate a first-class tourism industry. It’s a winning combination. It also doesn’t hurt that we are less than two hours from the United States. You can leave home after breakfast and be on the first tee here before lunch. What could be better than that?”

Bermuda Chamber of Commerce

“Bermuda is still in a growth stage.”

Philip Barnett, President

Bermuda is booming, as the construction cranes above the Hamilton skyline prove. The country’s per capita GDP has risen from USD 38,000 only a few years ago to today’s USD 84,000 and investors continue to target this business-friendly island nation. Now Bermuda is building even more cutting-edge infrastructure to support continued economic growth.

“Hamilton has many picturesque 200-year-old buildings, but the city definitely needs more high-level office space. Bermuda is still in a growth stage,” says Philip Barnett, President of the Bermuda Chamber of Commerce (BCC). He adds that the BCC is working to help maintain

Diane Gordon, Executive Vice President

Bermuda’s competitive advantage.

Bermuda’s niche over the past few years has been the re-insurance sector, and today the country is home to 13 of the world’s top re-insurers. Many foreign companies in other sectors have chosen to establish operations in Bermuda as well, thanks to its advantages as a business base. “Bermuda is a repository for knowledge workers, and it is a tax-free jurisdiction. It is also conveniently near the United States,” Barnett points out.

The BCC aims to make sure investors continue to target Bermuda, not just for ventures in financial services and insurance but also in tourism. “We want to promote more activity in the tourism sector. We believe the country should focus on upscale, high-end tourism rather than budget travel,” Barnett explains. He adds, “We want Bermuda to find a balance between tourism and international business.”

As for the impact on Bermuda of the credit crunch in the United States, Barnett notes that the two country’s economies are closely linked, but that Bermuda is currently experiencing strong growth, unlike the United States. He points out, “People say that if the United States sneezes, Bermuda catches a cold, but Bermuda is not in a recession. Property values here are as high as ever.”

Bermuda International Business Association

“Bermuda has a robust regulatory environment.”

The Bermuda International Business Association is bullish on Bermuda – and for good reason. As CEO Cheryl Packwood explains, Bermuda’s GDP has tripled since 2001 to reach per capita GDP of USD 84,000. “International business is the number one economic driver here, and Bermuda has been part of a growth explosion,” she says.

The Bermuda International Business Association is an organization of Bermuda-based international companies and financial services providers working together to promote Bermuda internationally and to enhance Bermuda’s business environment and its legal and regulatory framework. It works closely with the local government as well as the Bermuda Monetary Authority, concerning issues of importance to the business community. It also supports local education campaigns and sponsors a number of community-service projects.

United States is a privileged partner

Cheryl Packwood, CEO

Packwood points out that the United States is a privileged partner for Bermuda; the history between the two countries reaches back to before the United States achieved its independence. The reaction of Bermuda’s insurance sector to the events of 9/11 demonstrated Bermuda’s commitment to getting its work done and to supporting its ally to the north. “Bermuda is known to pay without fighting over it. We paid out on 9/11, a high marker for Bermuda, and we also insured telephone traffic after 9/11 so that East Coast communications were able to continue,” Packwood says.

The Bermuda International Business Association welcomes firms establishing operations or relocating to Bermuda, which has positioned itself as an ideal base for business. Packwood notes that when companies relocate to Bermuda, the result can be more jobs in the United States. She adds, “Here in Bermuda, we have expertise and brains, as well as a robust regulatory environment that is able to evolve to match the marketplace. We are also only 90 minutes from the United States. Bermuda has what Dubai lacks in terms of a long history of appropriate regulation, international recognition for quality and innovation, talent and expertise, together with an outstanding reputation as the premier jurisdiction for the institutional as well as private client worldwide.”

The Bahamas

The Bahamas has developed a thriving, internationally oriented economy based primarily on financial services and tourism.

IMF praises 30 years of prudent macroeconomic management

The Rt. Hon. Hubert Alexander Ingraham, Prime Minister and Minister of Finance

Area: 5,382 square miles Capital: Nassau Government: Democracy  Population: 307,451 (July 2008)  Language: English (official) GDP per capita: USD 25,000 Monetary unit: Bahamian dollar (BSD) Exports: mineral products and salt, animal products, rum, chemicals, fruit and vegetables Imports: machinery and transport equipment, manufactures, chemicals, mineral fuels, food and live animals

It is no surprise that The Bahamas’ tourism sector is going strong, because as a tourism destination, The Bahamas has it all: close proximity to the United States, outstanding natural beauty, and some of the world’s most luxurious hotels.

The financial-services sector also benefits from proximity to the United States but more importantly has been guided by far-sighted leaders who have focused on providing world-class services, an investor-friendly and reliable regulatory environment, and great diversity of offerings.

The financial-services sector had a good year last year. Market capitalization on the Bahamas International Securities Exchange (BISX) grew 24.3 percent to reach USD 3.9 billion.

The local construction sector is performing very well, too, with several large-scale projects currently underway. The Bahamas is also a major trading partner, relying on imports from the United States for almost all its food and manufactured goods.
The government’s current economic goals include balancing the budget and reducing debt to between 30 percent and 35 percent of GDP by 2012. The government also intends to improve tax administration, privatize national telecom and electricity companies, streamline import duties and tax concessions, and control public spending.

Four percent GDP growth in 2008

Like other developed countries, The Bahamas has been hard hit by rising oil prices as well as by uncertainty in global tourism. Nevertheless the country has been achieving steady economic growth for many years, with 3.3 percent growth in 2005 and 4.6 percent in 2006 followed by 2.8 percent growth last year.

The International Monetary Fund recently predicted 4 percent GDP growth for The Bahamas this year, and commended the country for its prudent macroeconomic management for the past three decades. The Bahamas has long benefited from its economic and political stability and has the highest standard of living in the Caribbean.

Dubai

Dubai: Leading Progress and Innovation

The kinds of ambitious, far-reaching goals detailed in Dubai’s Strategic Plan 2015 – ‘Vision 2015’ – would seem like an impossible dream coming from anyone other than His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai. But Sheikh Mohammed and the emirate he governs have a track record of achieving the seemingly impossible in record time.

Ambitious vision for the future

HH Sheikh Mohammed Bin Rashid Al Maktoum

HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

HH Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE

Dubai’s previous strategic plan, ‘Vision 2010’, was announced in 2000 and appeared just as difficult to pull off as the current plan, yet Dubai managed to reach the plan’s goals a full five years ahead of schedule.

Rather than basking in this success, Dubai quickly moved on to the next set of apparently impossible targets. As Sheikh Mohammed put it, “With our achievements come new hurdles, responsibilities and challenges.” He has vowed to make Dubai “a pioneering global city” whose economy is “free of the direct influence of oil-price fluctuations,” and now Dubai’s non-oil sector accounts for more than 95 percent of total GDP.

HH Sheikh Khalifa Bin Zayed Al Nahyan

An ancient trading center on the Gulf whose economy was based on trade and pearling until oil was discovered there, Dubai has transformed itself from a desert outpost into a major world capital with a constitutional monarchy and a flourishing business-friendly economy. Dubai’s neighbors are working to imitate its success story, but Dubai still enjoys the advantage of having been first out of the starting gate in the race to diversify, promote private-sector expansion and attract foreign investment.

Jordan illustration

January 20, 2008

Jordan

Jordan has been reforming its economy significantly under King Abdullah, including eliminating fuel subsidies, passing legislation targeting corruption, and beginning tax reform.

Area: 35,997 square miles Capital:AmmanGovernment: Constitutional Monarchy Population: 6.053,193 Languages: Arabic (official), English widely understood among upper and middle classes GDP per capita: USD 5,100 Monetary unit: Jordanian dinar Imports: crude oil, textile fabrics, machinery, transport equipment, manufactured goods. Exports: clothing, pharmaceuticals, potash, phosphates, fertilizers, vegetables, manufactures.

Foreign investment reaches record levels

Jordan has achieved outstanding success in boosting GDP, modernizing the financial sector, upgrading education and health care, and creating incentives for investors (including Qualified Industrial Zones).
A force for stability in a volatile region, Jordan has strongly aligned itself with the United States and welcomes American investors. The free-trade agreement established between the two countries in 2001 adds to Jordan’s attractions.

As Ziad Fariz, former Deputy Prime Minister and former Minister of Finance, points out, “Jordan’s economy is becoming very attractive for foreign and domestic investors. In 2006, foreign investment reached a record of about USD 3 billion.” Concerning links between Jordan and the United States, he adds, “Our relationship with the United States is very important for the future growth of Jordan. Jordan’s policies are directed towards promoting good relations with the United States.”

Jordan is especially interested in technology transfer, for example concerning investments in key sectors like electricity and water services. Fariz cites telecommunications and pharmaceuticals as other fast-growing sectors with investment potential.

As for the financial sector, Jordan’s banks now provide the highest quality services and meet international criteria concerning the control of money-laundering. “The banking sector is now diversified, the capital base has been enhanced, and the type of lending is moving from traditional short-term overdrafts into instruments,” Fariz explains.

With GDP growth of 6.4 percent in 2006, Jordan offers significant investment opportunities.

Amman Stock Exchange

Jalil Tarif, CEO

Jordan has made remarkable progress in implementing economic and legislative reforms aimed at liberalization and integration in the global economy. Since his accession to the throne, HM King Abdullah II has been determined to transform Jordan into a viable model in the region, designed to be a catalyst for building the new Middle East. As a result, sustainable development, economic growth, and social welfare are at the top of the national agenda and are being realized in an environment that safeguards solid political and democratic reforms and social cohesion in order to provide Jordanians with the necessary tools to contribute to the development of the country.

The financial sector, particularly the capital market, is distinguished in having an independent supervisory body represented by the Jordan Securities Commission (JSC) whose reference is the supremacy of the law. Besides, there are well-developed stock exchange and banking institutions. Amman Stock Exchange (ASE) is considered one of the most advanced in the region. It also contributed to the establishment of most of the regional markets.

Among the regional stock markets Jordan has the largest market capitalization as percent of GDP said Mr. Jalil Tarif, the CEO of ASE. “The ASE reached 218 percent by the end of July 2007, and its market capitalization reached USD 31.2 billion. Jordan has a well-developed and sophisticated banking system. The financial sector constitutes around 70 percent of the ASE market capitalization. The ASE introduced electronic trading in March 2000. Trading on the ASE takes place on an automated, order-driven system with remote access.

Mr. Tarif said that the ASE is open to foreign investors, and there is no ceiling on foreign ownership of companies listed on the ASE. Non-Jordanian investors are treated on equal footings with Jordanian investors; non-Jordanians own 46 percent of the ASE market capitalization. No taxes on cash dividends, on capital gains, or on the repatriation of proceeds of sale of securities, or income. A number of steps will be taken to enhance the market efficiency, such as: upgrading the trading and surveillance systems, implanting Internet trading, and introducing new financial instruments.

Securities Depository Center

“The SDC plays a key role in promoting investment activity in Jordan.”

Samir Jaradat, CEO

Jordan’s Securities Depository Center (SDC) was established in 1997 along with the Jordan Securities Commission and the Amman Stock Exchange, and began operating in 1999. The SDC’s responsibilities, according to Jordan’s Securities Law, are to register securities, handle deposits of securities, transfer ownership of securities, and oversee the deposit, clearing and settlement of securities.

As Samir Jaradat, CEO, points out, “Holding the ownership registry for all listed shares in the country, the SDC plays a key role in promoting investment activity in Jordan and in ensuring transparent, fair and efficient equities trading. The SDC operates according to the highest international standards and has been recognized by the Association of National Numbering Agencies (ANNA). All shareholder registers at the SDC are numbered according to the International Security Identification Number scheme.
The SDC’s members include publicly listed companies (banks, insurance firms, services companies and industrial enterprises), public-sector entities, brokers and others.

In one example of its forward-thinking approach to securities trading, the SDC developed its own “Securities Central Operation Registry Processing and Information Online” (SCORPIO) system that provides a complete solution for the registration, deposit, clearing and settlement of securities. Jaradat explains, “SCORPIO also offers a mechanism for risk management and surveillance of clearing and settlement, and its modules include brokers, issuers, custodians, surveillance and auditing systems.” Through SCORPIO, SDC can provide investors with an impressive array of services.

As for the future, the SDC aims to establish a central registry of securities to make it easier for investors to follow up on the progress of securities and thus to help increase investor confidence in the local market. In addition, the SDC aims to continue to implement new procedures and technologies to ensure efficient, fair and safe trading. The SDC is one reason American investors can be confident about entering the Jordanian market.

Abu Dhabi

Abu Dhabi illustration

Abu Dhabi, the largest of the seven emirates and the federal capital of the United Arab Emirates, serves as a model for other countries in the region.

Area: 26,263 square miles Capital: Abu Dhabi City Population: 1.702 Languages: Arabic GDP per capita: USD 184,96 billion Monetary unit: UAE dirham Imports: rmachinery and transport equipment, chemicals, food.. Exports: crude oil, natural gas, reexports, dried fish, dates.
Enlightened leadership ensuring long-term prosperity

Sheikh Khalifa Bin Zayed Al Nahyan President of the United Arab Emirates and Ruler of Abu Dhabi

Sheikh Mohammed bin Zayed Al Nahyan Crown Prince of Abu Dhabi and Deputy Supreme Commander of the United Arab Emirates Armed Forces

Benefiting from the far-sighted leadership of the Al Nahyan family, Abu Dhabi has wisely employed its vast oil wealth – Abu Dhabi possesses around 10 percent of the world’s oil reserves – to achieve sustainable development, prosperity for its people and stability for the United Arab Emirates as a whole.

The discovery of oil in 1958 and its subsequent export beginning in 1962 transformed Abu Dhabi from a quiet trading and fishing center to one of the world’s most prosperous economies. Guided by the late H.H. Sheikh Zayed bin Sultan Al Nahyan for more than four decades, Abu Dhabi used its oil revenues to create state-of-the-art infrastructure, telecommunications, hospitals and schools.

H.H. Sheikh Mohammed helping to promote diversification

H.H. Sheikh Mohammed bin Zayed Al Nahyan, crown prince of Abu Dhabi, who has served as the Chairman of the Abu Dhabi Executive Council since 2004, was H.H. Sheikh Zayed’s security advisor. He is an active member of the Supreme Petroleum Council and is head of the Abu Dhabi Council for Economic Development, Mubadala Development and the Abu Dhabi Education Council. He has said, “The real story of Abu Dhabi in 2006 and beyond is much broader than oil and gas. It is a story of rapid growth, breath-taking diversification and strategic liberalization of the economy.”

Plan Abu Dhabi 2030

The Al Nahyan family’s strategy of building for the future is reflected in Abu Dhabi’s ambitious Abu Dhabi 2030: Urban Structure Framework Plan, a comprehensive plan for the development of the emirate over the next quarter-century. Overseen by the Urban Planning Council, the plan specifies land uses, building heights and transportation plans for Abu Dhabi, whose population is projected to grow from the current 1.6 million to over 3 million people by 2030.
Thanks to enlightened leadership, Abu Dhabi has established the foundations on which to build future prosperity.

H.H. Sheikh Zayed one of the world’s great leaders

H.H. Sheikh Zayed bin Sultan Al Nahyan

H.H. Sheikh Zayed bin Sultan Al Nahyan, born in Abu Dhabi in around 1918, was the ruler of Abu Dhabi from 1966 until his death in November 2004, and became one of the most highly respected leaders in modern history.
H.H. Sheikh Zayed distinguished himself through his honesty, fairness, long-term strategies, willingness to take on ambitious goals and the determination to achieve them, and dedication to making sure that the emirate’s vast oil wealth was used to bring about long-term prosperity.
When H.H. Sheikh Zayed was born, Abu Dhabi was poor and undeveloped, with an economy based primarily on fishing and pearl-diving. In H.H. Sheikh Zayed’s youth, he learned all he could about the lives of Abu Dhabi’s citizens, particularly the nomadic Bedouin. He also learned to appreciate the fragility of the desert environment and the need to protect it, and, after watching the decline of the pearl industry throughout the region, he learned that no country should depend on a single source of income.
When oil was discovered in Abu Dhabi, H.H. Sheikh Zayed commented, “I had dreamed about our land catching up with the modern world, but I was not able to do anything because I did not have the wherewithal in my hands to achieve these dreams. I was sure, however, that one day they would become true.” He launched a massive program of constructing schools, housing, hospitals and infrastructure. “First, I knew we had to concentrate on public welfare. Then, I wanted to approach other emirates to work with us,” he said of his early years as ruler.
Along with the late Ruler of Dubai, H.H. Sheikh Rashid bin Saeed Al Maktoum, H.H. Sheikh Zayed took the lead in calling for a federation that eventually became the United Arab Emirates in December 1971, and H.H. Sheikh Zayed’s fellow rulers chose him as the new federation’s first president. In later years, he commented, “That which has been accomplished has exceeded all our expectations, and that, with the help of God and a sincere will, confirms that there is nothing that cannot be achieved in the service of the people if determination is firm and intentions are sincere.”

Dubai

As H.H. Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai and Prime Minister of the United Arab Emirates, explains, “The United Arab Emirates is like a tree that has been protected by its leadership so that it will grow strong and bear fruit in abundance

Dynamic Global Hub Still Going Strong

Long-term strategies continue to bear fruit

Enlightened leadership since the United Arab Emirates was officially formed in 1971 has definitely born fruit. The federation’s GDP rose by 23.4 percent in 2006 to reach AED 599.2 billion, while the balance of payments surplus rose by 44.3 percent and the total assets of local banks increased by 34.7 percent to reach AED 859.57 billion. The Emirates now enjoy one of the world’s highest standards of living, and indicators suggest that this success story will continue.

Increasingly diversified economy

High oil revenues (which increased by 29 percent in 2006 to reach AED 223.4 billion) and rising oil prices have of course benefited the United Arab Emirates since its beginnings, but the government has made sure that even if oil revenues decline, the local economy will continue to thrive.

In 2006, a 20.3 percent growth in non-oil sectors, which now account for 62.7 percent of total GDP, reflects the government’s successful diversification strategy. In addition, thanks to the government’s willingness to remove trade barriers, liberalize the business sector and promote private-sector growth, the United Arab Emirates has also created the Arab world’s most competitive economy, according to the latest Arab Competitiveness Report.

This very modern economy has a history stretching back 100,000 years. Once a collection of H.H. Sheikhdoms, the area came under the protection of Great Britain in the 19th century when it was known as the Trucial States. The local economy was traditionally based on trade, pearl-diving and shipbuilding, but the discovery of oil in the 1930s transformed these lands forever. The first oil shipments from what is now the United Arab Emirates were from Abu Dhabi in 1962, followed by shipments from Dubai in 1969.

Cooperation and long-term strategies

H.H. Sheikh Zayed bin Sultan Al Nahyan, ruler of Abu Dhabi at that time, and H.H. Sheikh Rashid bin Saeed Al Maktoum, then the ruler of Dubai, adopted a strategy of cooperation and long-term planning that continues today. In 1971, thanks to their efforts, the United Arab Emirates was formed as a constitutional federation with six member countries: Abu Dhabi, Dubai, Sharjah, Umm al-Qaiwain, Ajman, and Fujairah. Ras Al Khaimah joined the following year.

H.H. Sheikh Zayed and H.H. Sheikh Rashid determined to invest their countries’ vast oil wealth in development projects that would ensure a prosperous future as well as better quality of life for their citizens. Initially, government played the leading role in all projects, but as the economies of the Emirates have matured, particularly in Abu Dhabi and Dubai, the private sector has taken on a larger role and foreign investors have been welcomed. As H.H. Sheikh Mohammed says, “It is people who will shape the future, not machines or capital.”

Dubai, whose oil resources are limited, has been particularly dynamic in developing its private sector, and Dubai-based enterprises have made their mark throughout the world in many fields as well as making Dubai one of the world’s leading business hubs.

The United Arab Emirates’ enlightened approach to development is reflected in its strategic plan for 2008 to 2010, the country’s first nationwide strategic plan. It focuses on international competitiveness, diversification, and corporate governance, creating more opportunities for local citizens, and providing more investment opportunities. Sustainable development is the key goal.

The UAE’s fast-growing economy and many investment incentives attracted USD 37.1 billion in foreign direct investment in 2006. Meanwhile, the Emirates are increasing their own foreign investments, investing a total of USD 11.83 billion abroad in 2006. Dubai is leading the way.

Political stability and dynamic leadership

The United Arab Emirates is led by President H.H. Sheikh Khalifa bin Zayed Al Nahyan, current ruler of Abu Dhabi, who has held this position since 2004. The government also includes a Council of Ministers led by the prime minister, with each emirate represented by at least one minister. In Dubai, the very popular ruler, H.H. Sheikh Mohammed, is known for his energetic, pro-business approach, and as Prime Minister he is also playing a larger role at the federal level. The United Arab Emirates’ three-year plan, for example, is being implemented and monitored directly by the prime minister’s office.

Analysts believe that the United Arab Emirates will continue to liberalize and diversify its economy and create high-potential new investment opportunities for years to come, and Dubai is expected to continue to serve as a model of economic openness, forward-thinking government policies and private-sector dynamism.

Proactive Dubai sets the mark even higher

Dubai’s strategy of enlightened long-term strategies, economic diversification and daring development projects has clearly paid off: the emirate achieved the ambitious goals of its ten-year Vision 2010 strategy five years ahead of schedule.

The government’s goal in 2000 was to increase GDP to USD 30 billion and per-capita income to USD 23,000 by 2010; instead, by 2005, Dubai’s GDP had already reached USD 37 billion and per capita income totaled USD 31,000.

Now Dubai has developed a new plan to build on its accomplishments. As Dubai’s ruler, H.H. Sheikh Mohammed bin Rashid Al Maktoum, explains, “With achievements come new hurdles, responsibilities and challenges.”

The Dubai Strategic Plan 2015 focuses on economic and social development; infrastructure; land and environment; public-sector excellence; and safety, security and justice. A priority is to improve the lives and working conditions of all Dubai’s residents, for example through finding solutions for the traffic problems and rising living costs that the emirate has faced in recent years.

Potential oil-price fluctuations will not be significant in the new plan because, as H.H. Sheikh Mohammed says proudly, “We have succeeded in diversifying Dubai’s sources of income and reduced dependence on oil to the point that oil’s contribution to GDP is a mere 3 percent today. We were in a race against time, and we won.” The services sector now accounts for an impressive 74 percent of the emirate’s GDP.

Goal of 11 percent annual GDP growth

The plan calls for Dubai to sustain its real economic growth at a rate of 11 percent per year to reach a GDP of USD 108 billion by 2015, with per capita GDP to grow to USD 44,000. The plan also aims to create around 890,000 new jobs.

H.H. Sheikh Mohammed singles out tourism, transport, trade, construction, and financial services, in addition to new sectors with sustainable competitive edge, as key growth sectors that will help the emirate achieve these goals. He also calls for greater emphasis on human capital, productivity, innovation, quality of life, policy and institutional frameworks, and laws and regulations.

Dubai aims to become a leader in the new international knowledge economy. As H.H. Sheikh Mohammed puts it, “Building a road or a bridge may take a year or two, but developing people takes a lifetime. We live today in an era of ever-changing knowledge, which requires continuous learning.”

Dubai Cares

“We can reshape the future of underdeveloped countries in the region and globally  ”

Mohammed Al Gergawi Minister of State for Cabinet Affairs and Chairman of Dubai Holding

When he launched Dubai Cares in September this year, H.H. Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai, called on the private sector to support the humanitarian initiative, which is designed to improve educational opportunities for school children in poor countries all over the world. “Together, we can reshape the future of underdeveloped countries in the region and globally,” he said.

Local firms, including many American companies operating in Dubai, quickly responded to H.H. Sheikh Mohammed’s appeal. Just four days after Dubai Cares was launched, contributions had already reached the project’s initial target of AED 250 million (USD 54.5 million), and within eight weeks the total had risen to AED 1.7 billion. On November 25, H.H. Sheikh Mohammed announced that he would personally double the contributions already made, to bring the total donation to Dubai Cares up to AED 3.4 billion.

As H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Chairman of Dubai Executive Council, points out, “The response to Dubai Cares reflects a collective humanitarianism taking root in our society and is testimony of the will of the people and institutions of Dubai to contribute to the welfare of the less fortunate around the world.”

Dubai Cares will use the donations in some of the world’s poorest countries to build and renovate schools, train teachers, promote gender equality in education, provide teaching materials, offer scholarships, organize school meal programs and establish annual medical check-ups for students. The venture reflects H.H. Sheikh Mohammed’s belief in the importance of humanitarian efforts, particularly concerning education. Earlier this year, he announced a donation of USD 10 billion to support educational opportunities throughout the Middle East.

The Dubai Cares campaign also demonstrates Dubai’s commitment to helping achieve the United Nations’ Millennium Development goal of providing primary education for every child in the world by 2015. As H.H. Sheikh Mohammed points out, “The importance of education has increased tremendously in the ‘knowledge age’. Promoting education and providing the support it needs to flourish are now prerequisites for global development.”

Corporate citizenship

Of the 120 million school-age children throughout the world, around a third lack access to at least five years of education, judged as the minimum to achieve literacy. Supporting Dubai Cares gives companies a chance to respond to this need while also boosting their image, particularly in the Arab world where the Islamic faith advocates helping those less fortunate.

Of the many companies that have contributed to the initiative, Dubai World made the single largest contribution, AED 260 million (USD 71 million). Sultan Ahmed bin Sulayem, Chairman of Dubai World, comments, “We believe that it is incumbent on Dubai World to do its best in support of this noble cause.” Mohammed Al Gergawi, Minister of State for Cabinet Affairs and Chairman of Dubai Holding, explains, “Dubai Cares takes the local private sector’s contribution beyond Dubai. We see ourselves as corporate citizens of the world.”