dubai: a global trade hub for goods and services£o-paulo-paixão.… · joão paulo paixão head...

João Paulo PaixãoHead of International Office – Latin America (Brazil) Dubai Chamber of Commerce and Industry

Dubai: a global trade hub for goods and services

November 2017

UAE & Dubai Business Climate

UAE & Dubai Business Climate

IN ARAB WORLD FOR DOING BUSINESS1st

UAE

• Trade share of GDP 30%

• Reached $349bn in 2015

TRADE IS THE BIGGEST CONTRIBUTOR

TO DUBAI’S GDP

SUSTAINED GROWTH IN TOURISM AND HOSPITALITY

• 14.2m visitors in 2015 (growth 7.5%)

• 676 hotels – 102,845 rooms

• 4,457 new rooms in 2016

• 139 new hotels by 2017

• 20m tourists by 2020

WORKING TOWARDS EXPO 2020

IN GLOBAL COMPETITIVENESS17th

IN EASE OF DOING BUSINESS21st

DUBAI

3rdMOST BUSINESS FRIENDLY CITY

MOST INFLUENTIAL CITY IN THE WORLDTop 10

KEY SECTORS / HIGHLIGHTS

• $9 billion investment on infrastructure

development & operation

• 100% increase in number of hotel

rooms in 5 years

• 25m million visitors

Doing Business in the UAE

Ranking of Ease of Doing Business of GCC, 2018,

(out of 190),

Source: DCCI, World Bank Doingbusiness

102

94

83

66

63

21

Kuwait

Saudi Arabia

Qatar

Oman

Bahrain

UAE

62

52

44

30

25

Oman

Kuwait

Bahrain

Saudi Arabia

Qatar

Ranking of Global Competitiveness Index of GCC, 2018,

(out of 138)

UAE 17

Source: DCCI, World Economic Forum

Ranking of Global Retail Destination Index, 2016

Source: DCCI, Global Innovation Index

Innovation and retail in the UAE

77

66

56

55

49

35

Ranking of Global Innovation Index in GCC, 2017, (out of 128)

UAE

Qatar

Saudi Arabia

Kuwait

Bahrain

Oman

1

2

3

4

5

6

7

Source: DCCI, Savills

New York

London

Honkong

Dubai

Singapore

Paris

Milan

0

20

40

60

80

100

120

2014 2015 2016e

Source: Dubai Chamber, Dubai Statistics Center

2011 2012 2013


CAGR: 3.8%

Dubai’s Historical GDP Performance (USD bn)

Dubai EconomyOverview

• Dubai GDP (at constant prices): US$ 102.3 bn (+2.7%)

US

Db

illio

n

Dubai’s Sectorial Size and Performance(2016e)

Dubai EconomySectoral Performance

Note: other services and activities are not shown in the table


Notes: All figures in this report are provided at constant prices.

2016 figures are annualized estimates of Dubai Chamber based on DSC data for the first 9 months of 2016.

Sectors Value Added ($ mn)CAGR

(2011-16)

TOTAL 101,752 3.8%Wholesale and retail trade 28,046 3.3%

Transportation and storage 12,303 5.3%

Financial and insurance activities 10,815 1.5%

Manufacturing 10,198 4.7%

Construction 6,775 -0.1%

Real estate activities 6,661 4.0%

Public administration and defence 5,202 3.1%

Accommodation and food services 4,795 7.0%

Information and communication 3,949 6.0%

Professional / technical services 3,444 4.2%

Administrative and support service 2,574 3.3%

Electricity, gas, steam and AC 2,541 7.0%

Mining and quarrying 1,764 3.9%

Human health and social work 1,067 10.0%

Education 670 11.1%

Activities of households as employers 538 3.7%

Arts, entertainment and recreation 241 12.1%

Agriculture, forestry and fishing 132 1.1%

Water supply; waste management 37 8.2%

Selected Sectors Value Added ($ mn)CAGR

(2011-16)

Subtotal 59,620Wholesale and retail trade 28,046 3.3%

Transportation and storage 12,303 5.3%

Manufacturing 10,198 4.7%

Accommodation and food services 4,795 7.0%

Electricity, gas, steam and AC 2,541 7.0%

Human health and social work 1,067 10.0%

Education 670 11.1%

Selected Sectors (2016e)


Dubai EconomyOverview

CHINA19%

USA9%

INDIA7%

GERMANY6%

JAPAN5%

VIETNAM4%

SOUTH KOREA

3%

UK3%

ITALY2%

FRANCE2%

Others40%

SWITZERLAND14%

INDIA9%

OMAN6%

SAUDI ARABIA6%

TURKEY5%

IRAQ5%

SINGAPORE4%

USA4%

KUWAIT3%

HONG KONG2%

Others42%

IRAN13%

SAUDI ARABIA11%

INDIA9%

IRAQ6%

BELGIUM5%

HONG KONG

5%USA4%

KUWAIT4%

OMAN3%

QATAR3%

Others37%

ExportsImports Re-exports

USD 348 bn in 2016 in non-oil trade with the world being: USD 219 bn in imports USD 39 bn in exports USD 90 bn in re-exports

LogisticsOverview Dubai Logistics Sector Value Added

(USD bn)

US

Db

illio

n• Sector GDP: US$ 12.3 bn• 4.5% growth in 2016• Average growth of 6.6% per year since 2011

o Jebel Ali Port will be connected to the GCC rail network(Etihad rail) by 2021, providing unparalleled reach forDubai’s supply chain industry;

o Smooth and quick movement of cargo between Jebel AliPort and Al Maktoum International Airport is madepossible through a single customs zone: SEA – AIRLogistics Corridor;

o Al Maktoum Airport is being expanded to reach anannual capacity of about 220 million passengers to hostEmirates Airline by 2025;

0

2

4

6

8

10

12

14

16

18

2011 2012 2013 2014


2015 2016e

CAGR: 6.6%

LogisticsOpportunities

The new SEA – AIR Logistics Corridor links Jebel Ali Port with Al Maktoum International Airport,creating lucrative opportunities in warehousing and freight forwarding.

Air TransportationBusiest Airports in the World (2005-16)


20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

100,000,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Hartsfield-Jackson AtlantaInternational Airport

Beijing Capital International Airport

Dubai International Airport

Los Angeles International Airport

Tokyo International Airport

Pass

enge

rs

Innovation

25% of the police force comprised by roboticofficers by 2030;

Wearing a police cap and moving on wheels,the robot features a computer touch-screenon its chest that can be used to report acrime or inquire about speeding tickets;

At 1.70m tall and weighing 100kg, it canspeak six languages and is designed to readfacial expressions;

The robot, to be deployed mainly at touristspots, is equipped with a camera thattransmits live images to the operations roomand it can identify suspects wanted by police;

Free Zones in Dubai

Specializations

Benefits

• 100% foreign ownership and repatriation of capital• No income, corporate, import or export tax;• One-stop-shop administration services;• Access to consumers of MENA, CIS and India;• Stable and clear regulation;• Access to pool of talented professionals;

• Services: Trading, Finance, IT, Education, Research, Health, Logistics, Media, Movie production, Printing, Design, Packaging, Humanitarian hub and etc.;

• Industry: Precious metals, Food and Beverage, Textile, Machinery, Energy;

Restrictions

• Free Zone company can not trade directly with UAE market (only through locally appointed distributors);

• Custom Duty of 5% is applicable for trading with Dubai custom territory;

• Employees with free zone visa can work only from the company’s offices;

27

Number

1. Dubai Airport Free Zone

2. Dubai Auto Zone

3. Dubai Cars and Automotive Zone

4. Dubai Design District

5. Dubai Flower Centre

6. Dubai Gold and Diamond Park

7. Dubai Healthcare City

8. Dubai Industrial City

9. Dubai International Academic City

10. Dubai International Financial Centre

11. Dubai Internet City

12. Dubai Knowledge Park

13. Dubai Logistics City

14. Dubai Maritime City Authority

15. Dubai Media City

16. Dubai Multi Commodities Centre

17. Dubai Outsource Zone

18. Dubai Science Park

19. Dubai Silicon Oasis

20. Dubai Studio City

21. National Industries Complex

22. Dubai Textile City

23. Energy and Environment Park

24. International Humanitarian City

25. Jebel Ali Free Zone Authority

26. Jumeirah Lakes Towers Free Zone

27. Dubai Production City

Dubai Free Zones

Areas 2021 Targets

Renewable EnergyIncrease share of clean energy contribution from 0.23% (2015 report) to 27%.

TransportIncrease Logistic Performance Index rank from 13(2016 report) to among top 10 countries.

EducationReach World Class Education Standards and apply Smart system as well as devices.

HealthIncrease Health Quality Index rank from 28 (2016report) to 20.

TechnologyIncrease Network Readiness Index rank from 26 (2016 Report) to among top 10 countries.

WaterIncrease desalinization of water and waste water treatment.

Space Mission to Mars and build city in Mars by 2117 year.

Emerging Industries of the UAEUAE Vision 2021

World Expos (1851-2020)

World Expo 2020 – Dubai, UAEConnecting minds, creating the future

Date

20 October 2020-10 April 2021

Expected 25 million visitors

30%Regional

70%International

Location

Dubai South district- 438 ha site

Capacity to accommodate up to 300,000 visitors per day

Business Opportunities

Procurement Portal

Business Connect

SME Online Marketplace

8,326Local and

International Companies

3,167SMEs


Procurement Portal: https://esource.expo2020dubai.ae/esop/uae-e20-host/public/web/login.jst


https://esource.expo2020dubai.ae/esop/uae-e20-host/public/web/login.jst

DubaiMain advantages

• Dubai represents a fertile ground for investors and traders to develop their presence in UAE, GCC, MENA and the entire world, supported by the following facts:

Friendly business environment, with tax free treatment;

Costs of trade: among the cheapest in the world;

Proximity: links the 2 booming continents of Asia and Africa;

Advanced and large scale infrastructure: ports, airports, roads, and soon rails;

27 different free zones;

Numerous free trade and double taxation avoidance agreements;

Leading financial, touristic, industrial, and innovation hub in Middle East;

Long-Term strategic vision;

Dubai-Argentina

Potential Synergies: Argentina-UAE

USD 188 mn (2016): non-oil trade with Dubai Cereales (maíz, cebada y mijo) Torta de soya Cacahuetes, semilla de girasol, alfafa Peras, mandarinas, manzanas, cerezas, limones


-

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

2011 2012 2013 2014 2015 2016

Argentina's Exports to Dubai

Others

Preparations of vegetables,fruit, nuts, other parts ofplanEdible fruit and nuts, peelof citrus fruit or melons

Oil seeds, oleaginous fruit,industrial or medicinalplantsResidues and waste fromfood industries, preparedanimal foodCereals

2011 2016Articles of iron & steel 23% 11%

Cosmetics 24% 0.3%

Soya been oil 25% 6%

Potential Synergies: Argentina-Dubai

Ranked # 106 on Dubai’s trading list partners

24 Argentinian companies registered with Dubai Chamber and operate in Dubai.

Key investment sectors include Logistics, Renewable energy, Tourism, Agribusiness and manufacturing/mining

Scope of Dubai-Argentina trade has expanded beyond agricultural commodities and foodstuff to other categories such as machinery, metals, and chemical products.

Emirates Airlines flies to Buenos Aires and DP World operates the Terminales Rio de la Plata in Puerto Nuevo


Dubai Chamber aims to increase Latin America’s share of Dubai’s total foreign trade from 3% to 6% over the next 3 years

Dubai Chamber led trade mission to Argentina in April 2017 where UAE delegations met with Argentina’s Vice President H.E. Gabriela Michetti and other key stakeholders from the country’s public and private sectors

Dubai Chamber recently announced plans to open a new representative office in Buenos Aires, Argentina, which will become the Chamber’s 2nd office within Latin America

Dubai Chamber of Commerce & Industry

A non-profit public organization

Founded in 1965

210,000 members

8 offices overseas

Mission: to represent, support and protect the interests of the business community in Dubai

Dubai ChamberValue Proposition

Dispute resolution(mediation and arbitration);

Issuing certificates of origin & ATA Carnets;

Legal services;

Receiving foreign commercial delegations & sending delegates abroad;

Organizing trade fairs & economic forums;

Organizing training programmes for entrepreneurs;

Serving business groups & councils;

Providing credit rating services;

Business matchmaking services;

Access to updated market intelligence reports;

Support for start-ups and foreign companies on how to open a business in Dubai;

Dubai ChamberInternational Offices

10

7

Existing Offices

Future Offices

9

11

5

1

84

6

2

3

AzerbaijanBaku

BrazilSao Paulo

ArgentinaBuenos Aires

ChinaShanghai

EthiopiaAddis Ababa

GhanaAccra

IndiaMumbai

IraqErbil

MozambiqueMaputo

NigeriaAbuja

KenyaNairobi

7

8

9

10

11

1

2

3

4

5

6

Dubai ChamberEvents: Global Business Forum – Latin America

Opportunities to:

Attend the event and meet +500CEOs, investors and governmentauthorities from Latin America andthe Middle East

Speak at the event and debate withthe current most influential thinkersand businessmen

Sponsor the event and promote yourbrand to top businessmen,government entities and the MiddleEast media

February 27th – 28th, 2018 (4 days after Gulfood Exhibition)http://www.gbflatinamerica.com/

http://www.gbflatinamerica.com/

Thank You

João Paulo PaixãoHead of Dubai Chamber International Office – Latin America (Brazil)

[email protected](+55) 11 2246-2938

(+55) 11 9-8532-0744Website: www.dubaichamber.com

mailto:[email protected]

http://www.dubaichamber.com/

dubai: a global trade hub for goods and services£o-paulo-paixão.… · joão paulo paixão head...

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