130618-FBC and FBG survey v1DUB
2100208-FBC and FBG survey v1 as presented
Respondents’ profile representative of the French Business Community
0
20
40
60
80
100%
Profile of the respondents
By Council
FBC
Both
FBG
69
By industry
Construction
Telecom and Media
Manufacturing
Retail & Distribution
Business services
Hospitality & food services
Healthcare / Education
Other
Logistics & transport
Utilities
Financial services
68
Source: FBC-FBG survey Apr 2013, N=69
0 20 40 60
Sales/pre-sales
Service delivery 26
Assembly &
Manufacturing
6
Logistics & distribution 5
Local R&D 5
By activity in UAE
58
130618-FBC and FBG survey v1DUB
3100208-FBC and FBG survey v1 as presented
Respondents together employ over 10,000 persons in the UAE, including ~2% Emirati
0
20
40
60
80
100%
50-99
10 to 49
Less than 10
500 or more
250-499
100-249
69
Number of respondents by workforce size
(# employees based in the UAE )
120
Average # employees
10,215
Participant workforce
0
20
40
60
80
100%
1-5%
0%
6-10%
Over 21%
11-20%
69
2%
Average % of Emirati
% of Emirati in the workforce
Source: FBC-FBG survey Apr 2013, N=69
130618-FBC and FBG survey v1DUB
4100208-FBC and FBG survey v1 as presented
Respondents are significant contributor to the UAE economy with AED10B sales including 60% export
0
20
40
60
80
100%
By turnover range
Over 500m
101m-500m
51m-100m
31m-50m
16-30m
1-15m
Less than AED 1m
10BTotal participant turnover (AED )
Turnover of respondents
143mAverage turnover (AED )
0
20
40
60
80
100%
Revenue of the UAE company in the region
(% of company revenue )
% sales
Other
Other MENA
Rest of GCC
UAE
Source: FBC-FBG survey Apr 2013, N=69
130618-FBC and FBG survey v1DUB
5100208-FBC and FBG survey v1 as presented
The French community is increasingly optimistic about the business climate
0
20
40
60
80
100%
Q2 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Next 6 month
Growth has
been flat
Growth
has
remained
positive
but lower
than
before
Growth
has been
positive
and
faster
than
before
In your industry what is the market growth in the region?
Source: FBC-FBG survey Apr 2013, N=69
130618-FBC and FBG survey v1DUB
6100208-FBC and FBG survey v1 as presented
The UAE did particularly well in 2012
0
20
40
60
80
100%
UAE
13%
(22% )
13% (13% )
50%
(44% )
23%
(20% )
KSA
24%
(30% )
7% (6% )
38%
(42% )
31%
(22% )
Rest of GCC
28%
(29% )
9% (8% )
23%
(27% )
40%
(35% )
In your industry, how has your sales evolved
during 2012 vs 2011 in each country?2013 results
2012 results
Source: FBC-FBG survey Apr 2013, N=69
130618-FBC and FBG survey v1DUB
7100208-FBC and FBG survey v1 as presented
Relatively stable price and profitability
0
20
40
60
80
100%
Profitability
HIgher
Stable
Lower
63
Price
Increased
Stable
Decreased
63
In your industry, how has the following metrics evolved in the last year?
Source: FBC-FBG survey Apr 2013, N=69
130618-FBC and FBG survey v1DUB
8100208-FBC and FBG survey v1 as presented
Continuation of high investment and recruitment trends
0
20
40
60
80
100%
Investment
Stable
Higher
Workforce
Stable
Increase ( recruit )
How do you expect the following metrics to evolve in the region?
Source: FBC-FBG survey Apr 2013, N=69
130618-FBC and FBG survey v1DUB
9100208-FBC and FBG survey v1 as presented
Respondents are overwhelmingly positive on the future prospect of the region
0
20
40
60
80
100%
Q2 2009
10
9
8
7
6
5
4
3
2
2010
10
9
8
7
6
5
4
3
2
1
2011
10
8
7
6
5
2012
10
9
8
7
6
5
2013
9
8
7
6
5
How would you rate the potential of the Middle East in the next three years
for your business activity? (1: no potential, 10: high potential )
Source: FBC-FBG survey Apr 2013, N=69
130618-FBC and FBG survey v1DUB
10100208-FBC and FBG survey v1 as presented
Top challenges are regional stability, Asian competition, government regulations and HR
0
10
20
30
Top 3 challenges ( # of answers )
Regio
n
geopo
litics
21
Asian
com
petit
ion
20
Govern
men
t
regu
latio
ns
14
HR
13
Cost
Infla
tion
10
glob
al
econ
omy
8
public
inve
stm
ent
8
Comm
odity
price
5
Acces
s
to
financ
e
4
Paym
ent
term
s
4
Tour
ism
3
Source: FBC-FBG survey Apr 2013, N=69
130618-FBC and FBG survey v1DUB
0
10
20
30
Beyond the GCC, which country in the region has the most
potential to grow your business in the coming 5-10 years?
Iraq
21
Turkey
12
Iran
9
Egypt
7
Jordan
3
2
Morocco
1 1
Pakistan
1
Tunisia Libya Syria Yemen
Lebanon
Algeria
Beyond GCC, Iraq and Turkey are the top priority markets for expansion
Source: FBC-FBG survey Apr 2013, N=69
130618-FBC and FBG survey v1DUB
12100208-FBC and FBG survey v1 as presented
BACK UPS FROM PREVIOUS EDITIONS
130618-FBC and FBG survey v1DUB
0 20 40 60 80%
Create supplier development teams in State Owned Enterprises to provide technical assistance to local manufacturer
16
Better market the UAE to potential foreign investors
24
Develop export promotion programs for locally-incorporated companies
28
Split tender requirements into smaller components to allow locally incorporated companies to compete technically
and financially
29
Expand the availability of adequately-serviced industrial land
31
Create an industrial bank that provides easier and cheaper access to finance
39
Improve availability of gas and utilities
40
Improve technical training
44
Introduce some preference for products manufactured in the UAE over imported products, in tenders for
Government and State Owned Enterprises
47
Improve the legal and regulatory environment to best practices
56
Encourage companies to invest locally by creating longer term tender contracts where government or state-owned
buyers commit to buying a minimum quantity over time
56
Foster regional integration and create a single GCC market
63
Allow majority foreign ownership of industrial ventures
Very highHigh 72
Impact on Manufacturing FDI
( % high & very high )
Respondents recommend eight key actions to increase manufacturing FDI in the UAE
The UAE is keen to accelerate the development of manufacturing in the country. Which of the following initiatives would be most effective to achieve this objective in your sector?
Source: Bain & FBC survey of foreign investors in the UAE, Feb 2012, N=87
130618-FBC and FBG survey v1DUB
14100208-FBC and FBG survey v1 as presented
Although strong by regional standards, the UAE business environment is not world-class on six dimensions
0 10 20 30 40 50
Administrative efficiency
13
Quality of the social infrastructure ( education, healthcare,
entertainment )
15
Personal Taxation
17
100% foreign ownership
23
Ability to attract talent
24
Corporate Taxation
26
Business friendly laws
26
Quality of the transport infrastructure ( port, airport,roads... )
28
Cost of doing business
33
Attractiveness of the local market
34
Confidence in the rule of the law and ability to enforce contracts
44
13
6
14
16
19
42
9
40
48
5
2
World
class
29
20
35
48
46
34
28
17
11
41
31
Best of
Region
How important are the following factors when
deciding where to locate your regional
headquarter? (% critical )
Source: FBC-FBG survey Jan 2010
Back up from 2011 survey
130618-FBC and FBG survey v1DUB
15100208-FBC and FBG survey v1 as presented
The UAE – especially Dubai – remains the preferred location for a regional headquarter
0
20
40
60
80
100%
Q2 2009
Other Countries of the GCC
Egypt
Levant
Qatar
KSA
UAE – Other cities
UAE – Dubai
UAE – Abu Dhabi
180
H2 2010
Other Countries of the GCC
Egypt
UAE – Other cities
UAE – Dubai
UAE – Abu Dhabi
91
In your industry, where is the best location to setup a headquarter to serve the region?
(you can make multiple choices )
Source: FBC-FBG survey Jan 2010
Back up from 2011 survey