dubai hamburg business forum 2008

CO-OPERATION PERSPECTIVES FOR UAE AND GERMANY

HamburgChamber of Commerce

18 and 19 December 2008Hamburg Chamber of Commerce

Hamburg – Germany

www.dubai-hamburg.com

PARTNERSHIP FOR GROWTH

SECTOR PROFILES BROCHURE 2008

Sector_Profile_RZ.qxd 03.12.2008 17:19 Uhr Seite 1

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HEALTHCARE & LIFE SCIENCE 23

LOGISTICS & FOREIGN TRADE, AVIATION & MARITIME INDUSTRIES 33

MEDIA & IT 43

Imprint:HAMBURG CHAMBER OF COMMERCEInternational DepartmentJens AssmannAdolphsplatz 1 · 20457 Hamburg · Germany

Photos:Dubai Chamber of Commerce & Industry Titel (Photo 2): Zapf Circulation: 500 copies

Design: zwei:c werbeagentur GmbH, [email protected]

Phone: +49 40 361 38-287Fax: +49 40 361 38-494E-Mail: [email protected]


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Abstract

The UAE and Dubai both have adequately establishedfinancial infrastructure in terms of banks, insurancecompanies and financial markets. This financialinfrastructure is closely monitored by the monetaryand financial authorities, enabling the financial systemto perform well in terms of funds intermediation,payment settlements and issuing of newly structuredfinancial instruments. However, a balance betweenefficient functioning of the financial system and stabilityof the system has to be taken into consideration inperforming in global economy. The persistence of UAE’sstrong macroeconomic growth has helped in reducingthe risk factors that can disturb the stability of the UAEfinancial sector.

Current Situation: Facts and Figures• Per capita income in the UAE in 2007 IMF database

is USD 42,934• Financial sector share in the UAE GDP is 6 % -

indicating potential in this sector• GDP growth of the financial sector on average since

2004-2007 is 20 % with a compound annual growthrate (CAGR) of 16 % since 2001

• UAE is the largest banking market in the region asof 2006

• Emirates NBD is the largest bank in the GCC byassets

• As of end 2007 UAE’s banking penetration ratioswere:- Loan / GDP ratio 102 %- Loan / Deposits ratio 100 %

• Central bank regulation restricts foreign banks to 8local branches which are subject to 20 % corporatetax rate versus zero tax rate locally owned banks

• Dubai International Financial Exchange (DIFX) ranks24 in the Global Financial Index

• In March 2008, Dubai International Financial Centre(DIFC) hosted the World Insurance Forum.

Sub-Sectors and Main PlayersBankingThe rapid economic growth of the UAE and Dubai haspositive bearing on the functioning of the commercialbanking sector. The 4.2 million UAE population isserved by 52 commercial banks, 24 banks are nationaland 28 banks are foreign, accounting for 22 % of thetotal market, with the two largest, HSBC and StandardChartered, accounted for more than 50 % of foreignbanks total assets. Among the locally incorporatedcommercial banks, there are also Islamic banks thatprovide sharia-compliant banking services. Islamicbanking in the UAE has been developing rapidly, astheir assets share in total bank shares has increasedfrom 8 % in 2002 to 12.6 % in 2006.

Head quarters of local and foreign commercial banksare mainly located in Dubai (ratio: 45 % are local banksand 71 % are foreign banks). Total assets of the bankingsystem as of June 2008 amounted to AED 1428.74billion, with a compound annual growth rate (CAGR) of67 % since 2004. The average annual growth rate ofthe bank credits and advances is 39.8 % over the lastthree years outpacing the average growth rate ofdeposits of 32.2 % for the same period, due to thebuoyant operating environment in the UAE. Measuresof the UAE banking sector profitability seem to berobust where the average growth in the operatingprofit of the UAE commercial banks for the last threeyears was 43.8 % and the return on equity (ROE) andreturn on assets (ROA) in 2007 were 22 % and 2 %respectively, indicating high returns to equity holdersand the efficient performance of the banking assets.

With global credit crunch crisis and the subsequentdownsizing at banks worldwide, Dubai managed tograb the opportunity and ease its human resourcecrunch at Dubai banks, by recruiting top internationalfinancial officers in the Emirate; another factor thatwill add to the efficient functioning of Dubai bankingsector, due to the transferred international know-howin global banking.

As of June 2008, other UAE financial institutions,which are non-commercial banks include 2 investmentsbanks, 16 financial companies and 16 investmentcompanies. In its special report, the Fitch rating agencypredicted that the 2007 positive performance trend of UAE banks will be maintained during 2008, due tothe international high oil prices that induce moregovernment infrastructure spending, as well as,augment the growth in retail and corporate lending.

InsuranceThe UAE’s insurance market is the largest in the MiddleEast. The sector has achieved growth rates between15-20 % during the last 3 years, driven by the growthof population, economic growth and the boom of localand international business. The growth of the UAEinsurance sector is evidence by the growth in thenumber of employees in the sector which has increasedby 17 % in 2006 compared to level of employment ofthe sector in 2005.

The two segments of the UAE insurance market; that is,non-life segment and the life segment, are predicted by Business Monitor International (BMI) to grow at compound annual growth rates of 17 % and 13 % respectively for the period 2007-2012. The UAE insurance market sizes as measured by totalamounts of premiums, amounting to AED 11.2 billion in2007. Posting CAGR of 25 % since 2004. In 2007, the non-life insurance activity represented 88 % of themarket size, while life insurance activity represented12 % only. Penetration rates for both segments in 2007 have been considered to be low relative to western economies, at 1.5 and 0.2 % respectively fornon-life segment and life segment. In 2006, Dubaiaccounted for the largest share of the UAE totalinsurance premium (51 %) of the UAE total insurancepremiums, Abu Dhabi (32 %), Sharjah accounted for11 %, the remaining 6 % was divided among the rest ofthe Emirates.

Beside conventional insurance, the Islamic co-operativeway of insurance, the „Takaful“, is growing rapidly. Thisnewly structured Islamic compliant insurance isencouraging a lot of investors entering the market. Thismay increase insurance penetration ratios in the UAE inthe future.

The non-life segment is dominated by local companies,which held 76% of the market share in 2006. Non-lifesegment growth is mainly derived by insurance againstaccidents and liability, which accounts for half of thepremiums collected in the non-life segment insurance,about USD 1.3 billion in 2006, growing by 26 % over 2005 levels. Fire insurance premiums reached USD 348 million growing by 22%, followed by themarine, aviation and transport segment worth USD331.8 million growing by 22 % over 2005 levels. Finally medical insurance stood at USD 258 million in2006.

The life insurance segment is considered as beingunderdeveloped due to religious and cultural reasons.According to the Ministry of Economy, the lifeinsurance premiums are growing with the economy.This market segment is currently dominated by foreigncompanies, capturing 76 % of the market.

According to the Dubai Chamber MembershipDatabase, there were 65 insurance companies(including branches) registered in Dubai in the thirdquarter of 2008. Around 40 % of these companies are foreign, which shows that Dubai has an open insurance market to cross-border firms.Approximately 89 % of Dubai insurance companiesare non-life insurance, whereas only 11% are lifeinsurance.

The UAE insurance market has witnessed someconsolidations, reducing the number of registeredinsurance companies to 51 down from 126.Nevertheless, the insurance market is regarded asbeing competitive and highly fragmented. The 51UAE registered insurance companies are mainlylocated in Dubai and Abu Dhabi. Among these, 24 arelocally incorporated, while the rest are foreigninsurance companies. The top three players control40 % of the gross written premiums. These are: theOman Insurance Company, part of Mashreq BankGroup, which holds 17 %; the Abu Dhabi NationalInsurance Company (partially owned by the govern-ment), which accounts for 15 %, and the Arab Orient


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Insurance Company (Al Futtaim Group), which holds8 %. This shows that the main market players arelarge conglomerates.

The regulatory framework of the insurance market inDubai has still to be clearly defined in order to meet theinternational best-practice needs.

Financial MarketThere are two exchanges in Dubai, both trade in equity and bonds: the Dubai Financial Market (DFM),specialized in trading local assets, which abide by theIslamic laws, and the Dubai International FinancialExchange (DIFX), the regional market for internationalinvestors. DIFX is part of Dubai International FinancialCentre (DIFC), the Emirates financial service free zone.While at DFM trading is restricted to dirham, this is notthe case at DIFX. DIFX has no restriction on ownershipand the market is regulated to be attractive to foreigninvestors who are interested to capitalize in theregion’s growth opportunities. Other exchanges are theDubai Gold & Commodities Exchange (DGCX), anexchange for international derivatives and commodi-ties, and the Dubai Mercantile Exchange (DME) fortrading of energy and commodity futures. UAE equitymarkets are not diversified in terms of traded equities,mainly dominated by banks, financial services,construction and real estates. On the other hand thebond market of the debt instruments market is smalland mainly composed of some traditional corporatebonds and „sukuk“ (Islamic compliant bonds), with atotal value of USD 8.5 billion.

2007 was a good year for DFM: the Market GeneralIndex increased by 43 %, and the number of tradedshares increased from 2006 level by 165 %. The totaltrading value amounted to AED 379 billion (USD 103million), 9 % increase from 2006. The market capitalization grew by 60 % to AED 499.72 billion (USD135 billion) over the previous years. Most of the firms in 2007 have sustained growth in profitability,therefore managed to have high stock prices.

In September 2008, the number of listed equities in DFM was 63. About 80% of the exchange total capitalization is currently dominated by fewleading stocks, mainly banks, financial institutions,real estate and construction firms. The remaining20 % is divided among firms operating in the

transport, telecommunication, materials and insurancesectors. As for DIFX, there are 37 listings, amongwhich 19 are „sukuk“, 13 are equities and the rest aredifferent types of bonds. The DIFX is challenged byliquidity problem, and facing strong competition fromlocal and regional exchanges.

DIFX’s activity in 2007 was low and weak. The value oftraded equities was USD 1.45 billion, while by June2008 the total market capitalization reached USD 5.9billion. DIFX figures are small when compared to DFM.Nevertheless the DIFX exchange puts constant effortsto activate and energize its activities. In August 2007,DIFX launched the DIFX Trax, a platform for financiallystructured products, currently including 23 instrumentsand with the prospect of including sharia-compliantstructured products, as well as more conventionalproducts in the future. DIFX also established apartnership with the US Exchange NASDAQ.

The main drivers of the equity market in the UAE arethe robust performance of the UAE economy and thestrengthening of the non-oil sectors, especially the realestate and construction sectors. Despite the fact thatUAE has well established capital market infrastructure,the market experiences some volatility.

Although the UAE debit market is still infant, it has a lot of potential. Until recently, there were nogovernment bonds, as the government budgets were atsurplus at the back of the soaring international oilprices. Accordingly, investors were facing a limitedrange of choices. The fixed income securities representeda small share of the activity recorded by DFM, about2 % of the total market capitalization.

Dubai is hosting most of the international banks. Dueto the US unstable financial markets, most of foreign investors are looking for offshore investments.Dubai represents the ideal destination for stable andrewarding investment opportunities. As financialtransactions in Dubai are becoming more sophisticatedand diversified, the establishment of leading interna-tional banks will facilitate dealing with sophisticatedfinancially structured products such as derivatives,options and hedging funds. In 2007 the net foreigninvestment grew by 417 %, and amounted to 120bndirham (USD 32 billion).

Key Challenges andOpportunities forBilateral Co-operationDubai has positioned itself as the most importantdestination for private banking. The presence of a huge amount of wealth, theincreased number of high-net-worth individuals in thecountry, as well as the increased number of thepopulation, growing by 7 % annually, signalize therobust UAE economic growth. Moreover, all thesefactors have given new opportunities to develop newbanking products and services, as well as increasing thedemand for efficient and sophisticated private bankingand assets management services.Certainly, the UAE is not overcrowded by banks. As theeconomy is growing larger and larger; there is always aneed for more banks to serve the increased volumesand value of newly created transactions. The UAEbanking sector has proven to be a fast growing sectorin the country, easily and quickly adapting to theenlargement of the economy. That is evident by thegrowth in the banking sector profitability figures, aswell as by the stability of the sector.Dubai is aiming to host 250 international financialinstitutions by 2009. That implies that the UAE bankingsector will be open up to more foreign competition,creating a highly competitive banking industry. Suchsituation may lead to change in the profile of localbanks, as they may rethink consolidations to face thethreat of foreign rivals. On the one hand, the establish-ment of German banks in Dubai will expose local banksto a fierce competition. On the other hand, new playerswill be able to find a niche in the private bankingindustry, by entering the market with differentiated orinnovated financial products, which can appeal to theevolving the UAE business and private customers. Alsoinvestment banking services can be considered as avalue-added services to private banking industry.Specialized banks for Small and Medium sizeEnterprises (SMEs) are another important actor in theUAE corporate banking industry, as the they occupy amarket segment which although not yet covered,requires attention in terms of business finance supportin the UAE.

The fast paced economic growth in Dubai is currentlycreating real opportunities also in the insurance industry,as the need for more sophisticated insurance products

emerges. With the low penetration ratios of theinsurance sector and the accelerated populationgrowth, the UAE has a significant growth potentialthat is expected to continue in the medium term.Despite the relative underdevelopment of UAEinsurance industry if compared to the internationalstandards, the market is growing very fast, about 25 %annually, and it is expected to expand in the incomingyears. Factors that will support the future expansion ofthe insurance industry are the growing demand forsharia-compliant products, the progressing interest inlife insurance products, as well as the new laws thatmandate the health coverage for expatriates. Theinsurance industry is still regarded as under regulated,and regulatory bodies organizing the functioning of the whole industry should be established. To facecompetition of the expected foreign entrants to Dubaiinsurance market and to retain their market shares,local insurance companies are required to upgradetheir asset management capabilities and riskunderwriting capacities. German training institutionscan give a significant contribution in boosting the localcompanies’ capabilities by offering specialized trainingprograms.

UAE and Dubai capital markets will continue to deepenand grow, at the backdrop of robust economic growthand diversification. That will boost up the demand fordiversified investment options. The turmoil in theinternational financial markets and the presence of thecredit crunch in the west and in the US, have given theDubai financial market the opportunity to flourish, as ithas the chance to attract foreign investors to thecountry. This trend will change the profile of theinvestors, as they will be more foreigners and will bringdiversity into the capital market, therefore moreactivity and less volatility.


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Abstract

Hamburg is one of Germany’s oldest and most importantfinancial centres. Its economy continues to rank amongEurope’s strongest. Without losing touch with itsillustrious tradition, Hamburg has become more thanjust a major port and trading city. Within the last fewdecades it has developed a very strong and innovativeservice sector with an important and uniquely diversefinancial hub.

Hamburg’s economic strength is based on thecommercial success of numerous companies in varioussectors. Creating synergies between production andservice industries on the one hand and the financialindustry on the other hand is one key asset forprosperity and growth.

The city’s success in growing its position in this areahas been a boom to the financial sector. This trend isfurther enhanced by the extremely positive develop-ments in our foreign trade relations and the continuedexpansion of cargo handling capacity at the Port of Hamburg. Hamburg is well prepared to furtherconsolidate its lead in the ship financing and realestate financing segments.

Key players of Hamburg’s financial sector have alreadyset up a joint initiative to further improve Hamburg as

a City of Finance. The „Hamburg Cluster of Finance“comprises all kinds of members from the financialsector as well as from the financial scientificcommunity. It is actively supported by the City ofHamburg. Major challenges of the „Hamburg Cluster ofFinance“ include fostering education and innovation infinance and making Hamburg even more attractive forinvestments.

Current Situation: Facts and FiguresHamburg’s financial sector consists of some 5,500businesses and the city is unrivalled in terms of thediversity and quality of banking, insurance, andspecialised financial services, such as asset management,international trade, shipping and real-estate financing.Despite the impact of worldwide consolidation withinthe financial sector, Hamburg remains a solid locationthanks to diversity with 47,500 jobs currently providedby insurance companies and banks. In addition, financialservices form a major part of Hamburg’s financialcommunity. Fostering constant innovation in new andimproved financial services is the distinctive element ofHamburg’s financial sector leading to new and highlyqualified jobs.

Sub-Sectors and Main Players

InsuranceA key player in Hamburg’s financial sector is itsinsurance industry, whose origins can be traced backto the 15th century. Marine insurance and creditinsurance have a long tradition in Hamburg alongwith fire and health insurance. The HamburgerFeuerkasse has been insuring Hamburg’s buildingssince 1676, and is thus the oldest insurer in theworld. The city’s 176 insurance providers employsome 22,000 people.

The life insurance segment is also very well representedin Hamburg. Another major segment of the Hamburg

insurance industry is casualty and accident insuranceand health insurance with companies such as Hanse-Merkur Allgemeine Versicherungs-AG, DeutscherRing Sachversicherungs-AG and the TechnikerKrankenkasse.

The credit insurance segment is also very wellrepresented, given Hamburg’s importance as aninternational centre of trade. The major player here isEuler HERMES Kreditversicherungs-AG, which is theworld’s leading export credit insurer, with a strongpresence in all risk categories. Due to its port and insurance exchange, Hamburg is also a specialist market for transit insurers. Companies in thissector include Hanse-Marine-Versicherung, F.LAEISZVersicherung AG, Condor Allgemeine Versicherungs-AG,SCHWARZMEER UND OSTSEE Versicherungs-AGSOVAG and Tokio Marine Europe Insurance Limited(German branch). Even companies headquarteredoutside Hamburg, such as DBV-Winterthur and AXA,tend to concentrate their transit business in Hamburg.

In addition, there are more than 1,100 insurancebrokers and about 3,300 agents operating in Hamburg.The Funk Gruppe, founded in Hamburg in 1879, iscurrently Germany’s largest independent insurancebroker. Its client base includes corporate customers of

all sizes and from all sectors, as well as industry andtrade associations, independent contractors andprivate individuals. With more than 5,500 industrialcustomers, Aon Jauch & Hübener-Gruppe is Germany’sleading broker of technical insurance and reinsuranceproducts. The majority of transit insurers are membersof the Hamburg Insurance Exchange, which specialisesin cover for large transport risks, but is also used forother commercial risks. London and Rotterdam are theonly other places in the world that have comparableinstitutions.

BankingBerenberg Bank, Germany’s oldest privately ownedfinancial institution, was founded in Hamburg in 1590.Despite today’s dominance of multinational financialinstitutions, Hamburg still has 12 privately ownedbanks, including 10 that are headquartered there.Hamburg is also home to the Hamburger Sparkasse, thelargest savings bank in Germany, founded in 1827, andlocally called ‘Haspa’.

Another special feature of Hamburg’s financial sector isthe great diversity of its market participants. Thesector’s range of financial service offerings is very

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comprehensive and includes all the types of packagestypical of big universal banks, private and investmentbanks, specialist banks, securities dealers, brokers andagents as well as the full range of lending services. Inaddition to core financial products for retail customers,small and medium-sized enterprises, private andinstitutional investors, the sector also has a richoffering of specialised services, such as real estate andproject financing, asset management and services forprivate foundations and trusts.

Another of Hamburg’s strengths is in the area of shipfinancing. HSH Nordbank is the world’s leading shipfinancer, managing the loan portfolio from its Hamburgheadquarters. Furthermore, Hamburg is recognised as Germany’s ‘equity-issuing capital’, with particularstrengths in shipping and real estate investment funds. Nearly 75 % of all German issuing houses forclosed-end shipping funds are located in the metropol-itan region of Hamburg. Local businesses also haveexcellent access to funds and expert advice, thanks tothe city’s venture capital firms.

Hamburg ExchangeThe Hamburg Exchange (Hamburger Börse) is a corepart of the city’s financial scene. Founded in 1558, itis Germany’s oldest exchange, and remains a key focus for market participants and the very nucleus and nerve centre of Hamburg’s commercial and financial sectors. The Hamburg Exchange consists of four separate exchanges: the Hamburg Stock Exchange (Hanseatische Wertpapierbörse Hamburg),the Hamburg Insurance Exchange (Hamburger Versicherungsbörse), the Hamburg Grain Exchange(Hamburger Getreidebörse) and the GeneralExchange (Allgemeine Börse). The General Exchangeis used primarily by the city’s estate agents toarrange and conclude property transactions. TheGrain Exchange is northern Germany’s spot andforward market for trading in grain, oilseed,foodstuffs, legumes and seed. The Hamburg InsuranceExchange is one of only three such exchanges in the world and specialises in cover for larger risks in the transport and commercial sectors. Together

with its sister in Hanover, the Hamburg StockExchange is Germany’s third-largest stock exchange.Besides offering trade in stocks and bonds, it initiated the „Fondsbörse Deutschland“, Germany’sleading platform for trading open-ended and closed-ended investment funds. The „PremiumCapital Port“ segment offers small and medium-sized enterprises simplified and efficient access to capital markets. Furthermore, the segment„maritime stock exchange“ is a unique platform com-prising prices and information on all kinds of mar-itime assets such as stocks of shipping companies,ship mortgage bonds or derivative instruments.

Financial ServicesThe city’s financial institutions and its various financial-sector service providers – including charteredaccountants, consultants and law firms – have excellentfuture prospects servicing the commercial sector and providing financial and consulting services tointernational companies as well as to small and medium-sized enterprises.

Hamburg’s financial sector is also on an expansioncourse in the personal banking and financial servicessegment – given the city’s high gross domestic productand population growth forecasts predicting an increase

from 1.74 million to 1.8 million by 2010. The city’sfinancial service providers can look forward to solidgrowth in their financial investment and assetmanagement businesses in particular. Local insurancecompanies, brokers and agents will expand theirspecialised offerings, thereby adding fresh impetus tothe Hamburg Insurance Exchange and further securingHamburg’s long-term future as a centre of excellencein insurance.

Key Challenges and Opportunities forBilateral Co-operation

Contractual economic relations between the Arabworld and Hamburg date back to the 19th century.The commercial contract between Hamburg as amember of the former Hanseatic League and theOttoman Empire of 1839 can be seen as a startingpoint of the professional and expanding economicdevelopment. Since the discovery of oil in the 19thcentury, the Arabian Gulf is one of the most impor-tant European trade areas.

Innovations made in Hamburg are in great demand all over the world. One key field of business between Hamburg and Dubai is the health sector,with environmental and construction technologies aswell as trade in general forming the core of Hamburg-Dubai business relations.

Until now, business relations between financial playershave been on an individual basis. Sound businessrelations maintained by companies from the productiveand service industries offer best practises for improvingbusiness relations within the Hamburg-Dubai financialsector.

Financial matchmaking between Hamburg and Dubaicould be supported through the Hamburg Cluster ofFinance with an exchange of information as well asmutual learning being the first steps towards exploringreal opportunities for further business relations. Forfurther information please contact Ms. Gabriele Rose([email protected]).

Hamburg´s financial sector – an overview

3 274 Insurance Agents

1123 Insurance Brokers

135 Banks andCredit Institutions

67 Insurance Companies

106 Investment Companies 391 Financial Services Companies(no Insurances)

© Hamburg Chamber of CommerceSources: Hamburg Chamber of Commerce, Deutsche Bundesbank, BaFin, Spring 2008


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Abstract

The UAE is a major oil producing country. Nonetheless,there are serious moves towards reduction of energyutilization leading to carbon emission and developmentof alternatives to carbon-based fuels for power and cooling. Dubai is vigorously advancing the principlesof green buildings / communities. Currently, a towerdesigned to be totally powered by solar and windenergies is planned. Also, construction of nuclearpower plants is being considered.

Already in the market are solar-powered equipmentmanufactured by companies operating in Dubai.

Meanwhile, with oil resources dwindling, Dubai’s rolein the oil market is shifting to becoming energy tradingcentre.

Current Situation: Facts and FiguresRecent reports concerning energy consumption in the UAE have stated that 25 % of Gulf water has beenconsumed, with 1/5 of it being used for electricalenergy. The reports also stated that the UAE wouldneed 10 billion dollars to satisfy energy demand for thenext ten years, due to developments and projects onland that are increasing by 12 % each year.The UAE has one of the highest levels of energyconsumption per capita in the world. Forecastsindicate that demand for utilities (electricity andwater) in Dubai will rise by 12 % and 14 % per annumuntil 2010, fuelled by high population growth andhigh per capita income. To limit the pressure onnatural resources that the rising demand poses, theDubai Electricity and Water Authority (DEWA) hasimplemented a slab system of tariff for electricityand water, charging higher rates to larger users. Thesystem is aimed at encouraging the population tokeep a close eye on their electricity and waterconsumption, a move that is expected to pave theway for a more responsible utilisation of naturalresources. In addition, DEWA is undertaking aninformation campaign bringing awareness amongusers of the need to conserve power and water andpointers on how this can be done.

Availability of relatively much cheaper fuel in theUAE has made unattractive the pursuit of the use ofrenewable sources of energy as alternative orcomplementary sources to meet the demands of thepopulation, business and industries. Nonetheless,DEWA has invested in studies exploring the use ofrenewable sources of energy. Current projects onreducing carbon emission from energy use have beenlimited to energy-saving buildings and communities,production of solar-powered tools and equipment.However, recent plans also include building nuclearpower plants.

Despite the recent reversals in the trend of worldprices of oil, prices are not expected to go down anyfurther. Instead, oil price increases are expected torise as demand increase during the colder seasonsahead. Oil is expected to be the major source ofincome in the region for the years to come.

To meet its energy requirement, Dubai is focusing ondownstream operations, refining oil and producingby-products. Other projects in which Dubai isinvolved include the Dolphin Gas Project, whichwould supply its current natural gas requirement.


The Eco-Friendly Buildings andCommunities

The Emirates Green Building Council (EmiratesGBC)was formed as a non-profit organization in 2006,with the goal of advancing green building principlesfor protecting the environment and ensuring sustain-ability in the UAE. The commitment to reduce theCarbon emissions in the country through the use ofinnovative renewable energy and green technologiesis part of the Kyoto Protocol to which the UAEadhered.

Solar and Wind PowerThe renewable energy sector in Dubai is in its infancy.To-date, the applications of renewable energy are

generally small, limited to parking meters, trafficlights, offshore buoys, water heating in some hotels, monitoring systems (water flows), oil rigs andtelecommunications. However, the number of companiesengaged in renewable energy has been growing overrecent years.

Two structures meant to harness solar and wind powerto supply the energy requirements are currently in thepipeline. Scheduled for completion at the DubaiSilicon Oasis in late 2009, the German Business Park,designed by Claus Fischer and his team of Germanspecialists engineers and consultants, is an ecologically„green building“, the design taking advantage of theabundant sunlight to power its climate controlsystems, converting the sun’s heat into cool air. Thissystem is expected to be so efficient to produce a netgain in energy, which could be used to power some ofthe building’s other features. The evaporative coolingtechnology is a high-tech product including state-of-the-art solar absorber materials and accessoriesthat are being economically integrated into thebuilding’s superstructure and distinctive façade.

Enclosed within its unique German styled environment,the structure will provide German companies with afull compliment of office space for sale, a businessclass hotel with adjunct serviced apartments, a luxuryretail and restaurant area and underground parking for1,700 cars. A part of the complex will also be the home

of the German Centre Dubai, an exclusive businessenvironment of offices, services and networks, firstlyestablished by the Landesbank Baden-Württemberg(LBBW) and now operating in six other important citiesworld-wide (Beijing, Shanghai, Singapore, Yokohama,Jakarta and Mexico-City). The mission of the GermanCentre Dubai is to provide comprehensive support anddedicated office space to small and medium-sizedGerman companies seeking to establish effective basesof operation in Dubai.

The Burj Al Taqa (Dubai Energy Tower), a 60-storeytower that is designed to be self-sufficient in power, isalso under construction. The design combinestraditional building ventilation techniques, popular inthe Middle Eastern countries, are able to generate100 % of its energy needs using wind and solar power.With Eckhard Gerber as lead architect, the tower isdesigned by Gerber Architekten International GmbH, inco-operation with environmental engineers DS-Plan,structural engineers Bollinger + Grohmann Ingenieureand fire engineers Buro Happold.

Energy TradingTaking advantage of its geographical position and itsfacilities, Dubai is making a bid to become the energytrading centre of the oil-rich region. On 1 June 2007,the Dubai Mercantile Exchange (DME) launched the

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in the country, the Dubai government is also consideringnuclear power to meet its long-term needs. In January2008, the UAE has signed a deal with France involvingthe building of two 160-MW nuclear reactors over the next decade by the French firms Areva, Total and Suez. In collaboration with the GCC, the UAE has approached the International Atomic EnergyAgency for supervision of any potential civil nuclearactivity. In August 2008 the press also reported onongoing talks between the UAE and General Electric, the world’s biggest manufacturer of powerplant equipment, over a proposed nuclear energyprogramme.

Nonetheless, Dubai is not abandoning gas-firedpower stations, which supply most of its currentelectricity needs. The UAE power grid is expected tolay down the cornerstone for future co-operation forinter-emirates power exchange, with surplus in oneEmirate being channelled to other Emirates. Anotherimportant project in the pipeline is the GCC grid that will link the electricity network of all GCC states. Overseen by the GCC InterconnectionAuthority, the USD 1.95 billion project could avoid the cost of constructing more power generationplants, allowing the UAE to import a total of 900 MW.

Another option Dubai is looking into is the electricitylink with Iran.

Key Challenges andOpportunities forBilateral Co-operation

Germany is a world leader in harnessing renewablesources of energy for domestic and industrial uses.Within the Kyoto Protocol, Germany can invest on ajoint project in Dubai which would increase the useof renewable sources of energy and lead to reductionof carbon dioxide emission. This joint project wouldupgrade Dubai’s technology and would earn forGermany an emissions reduction certificate forcutting down emissions abroad.

More promisingly, on a more micro level, constructionin Dubai is a big business. Construction and real

estate companies have already acknowledged theimportance of integrating green initiatives into theplanning and building stages into Dubai’s urbandevelopment. Dubai is currently engaging in buildingEnPark (a retail, housing and commercial environmentalhub) as well as a few other buildings incorporatingenergy saving systems. For the time being, the mostpromising area for collaborative work betweenHamburg and Dubai can be found in the transfer of know-how, trade of specialised materials and,ultimately, the development of ‘green’ buildings andzones.

first and only physically delivered Oman Crude OilFutures Contract. In early 2008, the DME announced itsintention to launch two new financially settledcontracts, the Brent Crude Oil Financial Contract andthe Oman Crude Oil Financial Contract. The DME’sBrent Crude Oil Financial Contract is cash-settledagainst ICE’s Brent Crude Futures Contracts, while thenew Oman contract is cash-settled against the DME’sbenchmark Oman Crude Oil Futures Contract. In addition to being cleared at the NYMEX Clearinghouse,the new contracts will also be available for block trading (recently introduced by the DME) as well as Exchange for Physical (EFP) and Exchange for Swap (EFS) trades, using NYMEX’s ClearPort® Clearing.

Furthermore, the Dubai Multi Commodities Centre(DMCC) plans to introduce Liquefied Natural Gas (LNG)Futures Contract. DMCC has already entered into ajoint venture with LNG Impel for the LNG storagefacility project to provide 40-65 billion cu of storagespace, as well as services for LNG quality blending andLNG loans.

Future Developments In spite of all the programs for the utilisation ofrenewable sources of energy, oil remains the largestresource of the Middle East in the long-term. Takingadvantage of Dubai’s location and facilities, DubaiPetroelum Establishment (DPE) is partnering with

Petrofac to establish the Dubai Petroleum TrainingCentre (DPTC), which should meet the safety andtechnical training needs of the oil and gas industriesin the Middle East, as well as servicing the otherindustries within the energy sector.

Short to medium term expectations for the use ofrenewables in Dubai remain low. Only 1% of theelectricity produced is expected to come fromrenewables. This percentage, however, is expected togrow rapidly in the long-term, due to the potentiallyhigher competitiveness of renewable energy usage.The Department of Renewable Energy predicts that upto half the UAE's required energy will come fromrenewables by 2050 as the UAE wishes to maintain itsposition as a net exporter of energy.

The Dubai Electricity and Water Authority (DEWA) is looking into building a carbon emission-freehydrogen-fired power station. The DEWA also signeda Memorandum of Understanding with US-based SinoGlobal International, Canada’s Skyline Services Groupand China’s Samena Power & Energy for the conductof a feasibility study on the project. If found viable,the 2000-MW power station would be the world’slargest hydrogen-fired power station. However, thereare serious objections to the project as building costsare expected to be higher than for a conventionalpower station of similar output.

Consistent with the UAE’s plan of building nuclearreactors to complement the existing sources of energy

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Abstract

Renewables account for a steadily growing share ofGermany’s total energy mix, supplying more than 14%of the country’s electricity requirements, more than5 % of its heating, and just 3.5 % of its fuel needs.Renewables make up over 6 % of Germany’s total energysupply (useable electricity, heat and fuels). In 2005, the country invested an estimated EUR 16 billion in the construction and operation of renewable energyplants.

Current Situation: Facts and FiguresHamburg’s renewables sector is still in its infancy, withthe majority of start-ups and relocations having takenplace only in the last five years. Even so, the sector isproducing leading-edge innovations that have madetheir mark on the international power engineeringmarkets. Hamburg-based renewables companies havefiled at least 70 worldwide patent applications in thelast five years, and in 2005 alone they generatedaround EUR 1.5 billion in sales – nearly a 140 %increase on 2003. Hamburg’s renewable energy sectoris therefore growing more than twice as fast as theGerman national average.

In 2005, the 80 industrial, trade, and service companiesin Hamburg that can be classified as belonging whollyor in part to the energy sector or which have commerciallinks to the energy sector employed some 1,100 peoplelocally. Two-thirds of the sector's businesses are smalland medium-sized enterprises (SMEs), each with fewerthan 250 employees.

Hamburg is an ideal location for a thriving renewablesindustry, offering plenty of highly qualified people inthe technical and engineering fields, short commutingdistances and an excellent transport and logisticsinfrastructure. In particular, the city’s port, internationalairport and highly internationally focused businesssector provide a solid basis for successfully exportingnew technologies. The city has also been providinggood opportunities for solar energy companies sincethe 1980s via its support programmes for solar thermalplant and equipment.

The skilled trades also have a part to play in therenewables-sector value chain – mainly in the areas ofplant distribution, installation and maintenance. Forexample, the database maintained by Hamburg’s„Initiative Arbeit und Klimaschutz“ (a group of tradefirms committed to energy efficiency in the residentialbuilding sector) lists over 180 local trade firms thatprovide solar energy systems. Hamburg’s serviceprofessions are also involved, and the city boasts anumber of translation firms and seminar organisersthat can provide specialist skills in the renewablessector.

At EUR 1.3 billion annually, the construction, sale anddistribution of energy production plants accounts forthe biggest share of Hamburg’s renewables-sectorbusiness volume.


Solar EnergyWith sales of over EUR 530 million in 2005, ConergyAG ranks among the world’s leading solar energycompanies. It manufactures a full range of renewableenergy systems used to produce electricity, heatingand cooling from sunlight, wind energy and biomass.Sharp Electronics (Europe) GmbH is the Europeanhead office of the Sharp Group, the world’s leadingmanufacturer of solar cells. Hamburg is home to thecompany’s European sales, marketing, communicationsand service operations. Solara AG produces photo-voltaic modules, and sells grid-connected solar powersystems as well as stand-alone systems for mobilehomes, sailing boats and buoys. NorddeutscheAffinerie AG has developed a flexible, copper-basedsolar cell via its subsidiary CIS Solartechnik GmbH &Co. KG and is currently in the process of building apilot production facility.

The Hamburg office of BP Solar, a subsidiary ofDeutsche BP AG, specialises in distributing photo-voltaic modules, project planning and implementation,as well as concept development for photovoltaic unitsto be used as building materials. The core business ofReinecke + Pohl Sun Energy AG lies in the technical

planning, support, supply and installation of large-scalephotovoltaic arrays for industrial and agriculturalapplications. SunEnergy GmbH develops and implementsphotovoltaic projects while providing all the necessarycomponents and photovoltaic modules together withplanning services, training and marketing support.Yandalux GmbH designs stand-alone photovoltaicsystems and distributes solar energy components.Solar Contakt also distributes solar energy systems.

In the solar thermal segment, VELUX DeutschlandGmbH provides solar water heating systems that mirrorskylights and roof windows in terms of design andmethod of installation. MHG Heiztechnik GmbHdistributes flat-plate and evacuated tubular collectorsas well as pellet-fired-boiler hot-water systems.microsol Solarsysteme GmbH is an engineering firmand wholesaler of high-end systems for photovoltaicand solar thermal plants.

WindIn February 2005, the world’s largest wind turbine wascommissioned in Brunsbüttel, on the North Sea coastto the north-west of Hamburg. The turbine has aninstalled capacity of 5 megawatts (MW) and was builtby REpower Systems AG, Germany’s second-largestwind turbine manufacturer in terms of sales. REpowerspecialises in the development, production andinstallation of multi-megawatt-class turbines withcapacities ranging from 1.5 to 5 MW. Siemens AG, along-established manufacturer of generators, automa-tion and energy transmission systems, is now also oneof the leading manufacturers of wind turbines, havingtaken over Danish wind energy specialist BONUSEnergy. The company’s new division, Siemens WindPower, is primarily targeting offshore projects.

Skysails GmbH & Co. KG develops, produces anddistributes a towing-kite wind propulsion system forcontainer ships (international patent pending). Thesystem is used in commercial shipping as an auxiliaryto main engine power.

BiomassBIOWATT Energy GmbH builds biogas plants andprovides planning and advisory services and operational-phase support.

ComponentsMankiewicz Gebr. & Co. (GmbH & Co. KG) hasdeveloped a special coating system for wind turbinerotor blades. Beck Electrical Insulation GmbH suppliesimpregnating and trickle resins for wind turbinegenerators. The data recording equipment, wind andweather sensors provided by Wilmers MesstechnikGmbH give energy plants added environmental dataanalysis capabilities. Karberg & Hennemann GmbH &Co. KG produces polishing filters for transmission oilsand lubricants, and James Walker Deutschland GmbHmakes seals and bolts. Josef Blässinger GmbH & Co.KG ranks among Germany’s foremost wholesalers ofnon-friction bearings and also stocks leading linear-motion and drive-technology brands. EssoDeutschland GmbH has made a name for itself as aleading manufacturer of advanced greases, hydraulicand transmission oils for wind turbines.

Energy Generation and SupplyLichtBlick – die Zukunft der Energie GmbH and GREEN-PEACE energy eG are Germany’s two largest suppliersof 100 % eco-friendly electricity. In a similar vein,energy company Vattenfall Europe Hamburg AG offersits customers an eco-power product called „HamburgNewpower“. Local energy company E.ON Hanse AGpurchases electricity generated from renewablesources and supplies it to customers on Germany’sliberalised energy market. It also operates photovoltaicarrays on its own buildings in Hamburg’s Altonadistrict.

BioCycling GmbH collects organic waste and uses it inbiomass plants. Müllverwertung Borsigstraße GmbHproduces electricity from the safe combustion ofcontaminated waste wood, and BIOWERK HamburgGmbH & Co. KG operates Hamburg’s first-ever biogasplant.

Oelmühle Hamburg AG produces biodiesel fromvegetable oils, while Envitec Engineering GmbH turnsbiogenic residue and waste materials into fuels.

Stadtreinigung Hamburg (a local government agency)operates the Greater Hamburg region’s largest photo-voltaic array on the site of a former landfill in the NeuWulmstorf district. Ten years ago, E.ON Hanse AG builtHamburg’s largest solar thermal energy plant, with a

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total collector surface area of 3,300 m2, in the city’sKarlshöhe district. This is about to change, as VattenfallEurope Hamburg AG plans to build an even larger solarthermal plant in Hamburg’s new HafenCity developmentzone.

Research and DevelopmentIn general, Hamburg’s renewables technologies stillhave some way to go before they can be commer-cialised, a fact that is creating enormous localdemand for R&D services. Around 30 Hamburg-basedcompanies currently undertake R&D work either intheir own facilities or in partnership with universitiesand research institutes. The Hamburg University ofApplied Sciences (HAW) is home to the „LifetecProcess Engineering“ unit, which specialises inresearch into the fermentation of wet biomass andthe direct liquefaction of dry biomass. The Lifetec unitbelongs to the „Biogas-Crops-Network“, whichcomprises ten university-based research institutes.Hamburg-Harburg Technical University (TUHH) iscurrently conducting research into the use of biomassin thermal power stations and into foundationsystems for offshore wind turbines. Helmut Schmidt

University is currently conducting research withregard to integrating renewable energy productionplants into the power grid. ZEBAU GmbH (Centre forEnergy, Building, Architecture and the Environment) isa joint project between HAW, TUHH and the HamburgUniversity of Fine Arts (HfbK). ZEBAU providesconsulting services for architecture and technicalbuilding systems, including solutions to integratesolar energy systems into building structures. In 2003,HAW, TUHH and a number of local companies teamedup to implement the „Sunbrellas“ project – a series ofsolar arrays that also serve as sunshades and parasolsfor outdoor seating areas.

Future DevelopmentsThe renewables sector is optimistic about the future.Alongside their Japanese counterparts, German compa-nies are the world leaders when it comes to wind andsolar energy technologies. Most of Hamburg’s renew-ables sector companies are confident that their exportvolumes will grow in the coming years. The industry’skey export markets are the Mediterranean countries,the USA, Canada, China and India. There are also plansfor offshore wind farms in the North and Baltic Seas.

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Key Challenges andOpportunities forBilateral Co-operation The market for renewables generally, and for solarenergy systems in particular, is a fast-growingmarket for Hamburg, as mentioned above.

As well as their vast oil and gas resources, the UAEhave enormous potential when it comes to renewables.With almost 360 days of sunshine annually, the regionis ideally suited to photovoltaic and solar energy. Windpower is also a viable option, as an initial test facilitybuilt on an island in the Gulf by German companies hasalready proven.

Increasingly, the UAE are rising to the renewableschallenge. They are realising the importance ofsystematically promoting the development and useof solar energy despite the fact that it is not yet acommercially-viable alternative to fossil fuels onaccount of the region’s low energy prices. Abu Dhabi,for example, is planning to create a special economic

zone exclusively for renewables. Located near the city of Abu Dhabi, the zone will be home to acluster of energy companies, research and scientificinstitutes, and providers of financial and other services.

The UAE are aiming to become regional leaders inrenewable energy as part of their modernisation andeconomic diversification policies. And they haveexpressed a desire to partner with Germany toachieve this. Opportunities in this regard include the planned establishment of a special economiczone for renewables and a proposal to jointly stagean international „Renewables“ conference in 2007.

In the Gulf region, the main driver of demand forelectricity and the primary cause of the doubling inpeak load that typically occurs during the summermonths is air-conditioning. This being the case, solarcooling is a very real potential application for solarenergy in the UAE, especially as peak demand for air-conditioning tends to coincide with periods ofpeak solar radiation. This fact could well be the focusof a specific cooperative project between Hamburgand the UAE.


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Abstract

Socio-economic development in the UAE, characterizedby an increasing per capita income and by the accessto modern amenities and services, has led to changesin the population’s nutritional and lifestyle habits. Withadequate capacity for dealing with relatively lowincidents of communicable diseases in place, newapproaches to the delivery of healthcare services focuson lifestyle-related medical conditions, such cardio-vascular diseases, cancer and diabetes, as well as inproviding facilities and services to accident and traumavictims and to children with genetic disorders andcongenital abnormalities.

In order to upgrade the state of healthcare and lifescience in Dubai and following a strong public-privateapproach to healthcare, the Dubai Health Care City(DHCC) and the Dubai Biotechnology and Research Park(DuBiotech) have been established as free zones, activelyencouraging investments in education, research anddevelopment, and in provision of modern approaches todelivery of healthcare services.

In June 2007, the establishment of the Dubai HealthAuthority (DHA), the health body responsible for theentire health sector in Dubai, was announced. DHAtargets include full health provision coverage forEmiratis by 2009 as well as a phased coverage forexpatriates over several years. Completion in 2015features basic health provision in Dubai at par withinternational benchmarks.

Current Situation: Facts and FiguresThe Ministry of Health (MOH), for MOH-run facilities,and the Department of Health and Medical Science(DOHMS), for all other facilities, are responsible for theadministration of hospitals, health centres and clinics inDubai. In the meantime, the newly-created DHA is alsoestablishing structures for primary care and hospitalfunding, creation of new central clearing house, andrecruitment of full-time staff to help manage programme.

According to the Dubai Health Provision Report (June2007), there is a total of 2,934 hospital beds in Dubai,

with 69 % (2,021) in public hospitals. Healthcareprofessional manpower consists of more than 6,000doctors; 1,000 dentists; 7,000 nurses; 1,400 pharmacistsand 4,000 technicians. Five hospitals operates under theDOHMS, while the MOH supervises 2 hospitals. Inaddition to the public hospitals, 18 private hospitals andabout 600 polyclinics and healthcare centres providehealthcare services. Some 400 pharmacies ensure wideaccess to medical consumables and equipment. Pricesof medicines are regulated by the MOH.

The recent mandatory health insurance policy, designedto ensure that everyone in Dubai is given access tohealthcare facilities, has led to an increased demand forhealthcare services and products. Furthermore, in orderto facilitate access of blue-collar workers to the health-care system, a system enabling their registration tohealth clinics in their vicinity has been established.Accordingly, licenses for the establishment of newclinics are given only to those locating in areas withinsufficient medical facilities.


Medical Technology and MedicalConsumables

Until recently, healthcare in the Emirate had beenlimited to the delivery of healthcare services andmedical consumables. The establishment of DubaiHealthcare City (DHCC) in 2002 has been the first steptowards the creation of a global hub for specializedhealthcare and medical services in Dubai. This hasbrought to the acquisition of locally availabletechnologies as well as technologies from abroad, theoperation of healthcare facilities such as hospitals,general and specialized clinics in all major medicalfields, pharmaceutical companies, pharmacies, phar-maceutical warehouses and manufacturing plants,medical laboratories, x-ray centres and other facilities,industries, medical and healthcare services as well assupport industries.

DHCC, the world's first healthcare free zone, boasts twocomplementary communities, namely, the MedicalCommunity and the Wellness Community. The Medical

Community, which focuses on acute care services,occupies an area of 4.1 million square feet. The WellnessCommunity covers 19 million square feet and completesDHCC’s healthcare continuum by housing hospitals,outpatient clinics, luxury spa resorts, and the entirespectrum of wellness services. DHCC will be a base forestablishing healthcare and medical corporations,institutions, foundations and other healthcare servicecompanies that will directly or indirectly meet the needsand objectives of the Healthcare City. It will also conveymedical institutes and centres that conduct research andstudies in the healthcare and medical fields. The DubaiHealthcare City has a total investment of approximatelyUSD 3 billion and will be completed in the year 2010. Thefour entities involved in delivering DHCC’s vision are:• Dubai Healthcare City Freezone (DHCC FZ) • Center for Healthcare Planning and Quality (CPQ) • Harvard Medical School Dubai Center (HMSDC) • Dubai Harvard Foundation for Medical Research

(DHFMR)The Mohammed Bin Rashid Al Maktoum AcademicMedical Centre is at the core of the DHCC’s clinical andeducational structure. This central core comprises fivecomponents, namely, the University Hospital; the HarvardMedical School Dubai Centre Institute for PostgraduateEducation and Research; the Dubai Harvard Foundationfor Medical Research; Al Maktoum Harvard MedicalLibrary; and Boston University Dental Health Centre &Institute for Dental Research & Education.

Biotechnology and ResearchInstitutes

A large project, critical to the establishment of a viablelocal research base, is the Dubai Biotechnology andResearch Park (DuBiotech). The USD 400 million centrefeatures a 300-hectare biotech science park with 30mnsquare metres of office and laboratory space. Presently,some 30 international companies are partners of thecomplex. The park comprises two main ‘clusters’: an industry cluster, and the government-fundedFoundation for Research and Innovation (FRI).DuBiotech attracts a mix of biotechnology andpharmaceutical companies active in R&D, scientificdiscovery, testing, production, storage, sales and distri-bution, as well as business support and legal services,and venture capital (VC) firms specializing in thebiotech industry. Companies locating in the DuBiotechPark receive 100 % exemption on corporate and

personal tax guaranteed for 50 years, 100 % ownershipof their business, 100 % repatriation of capital andprofits, no currency restrictions, support services,simplified incorporation, and a fast-track visa-application process.

PharmaceuticalsThe pharmaceutical sector in the UAE in general, andparticularly in Dubai, is considered one of the vitalsectors. There are eight pharmaceutical factories inUAE with investments totalling USD 64.2 million. Localmanufacturing industry activity has increased notablyover the past few years, with a strong focus on regionaland global exports. The leading player is the GulfPharmaceutical Industries (Julphar), in addition to newcompanies such as Globalpharma, Gulf Inject andMedpharma, Neopharma and Pharmacare. PfizerInternational Corporation has recently become apartner of DuBiotech.

The Dubai’s pharmaceutical market was estimated atAED 1.1 billion in 2005. The value of pharmaceuticalsin Dubai’s exports in 2005 was AED 56.4 million, whilethe imports were more than AED 1.2 billion. About AED179 million of these imports were re-exported to othercountries. In 2007, total exports of pharmaceuticalproducts reached AED 84.4 million, while re-exportsreached AED 194 million. Total imports during the yearamounted to AED 2.15 billion. Largest suppliers ofpharmaceutical products were the UK, Germany andFrance, supplying 45 % of Dubai’s imports of theproducts.

The local manufacturing of pharmaceuticals is muchless than in other countries. The current manufacturingproducts are dependent on the unpatented products.More to spend on R&D in the sector and the establish-ment of more developed institutions to provide qualityproducts are needed.

Hospitals and ClinicsAccording to the Dubai Healthcare Provision Report ofMarch 2007, there are 7 public hospitals; 5 of whichmanaged by DOHMS and 2, by MOH. The former havecapacity of 1,711 beds and the latter, 310 beds. Of theDOHMS-managed hospitals, one is specialized inmaternity / paediatrics and one is an emergency hospital,

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while the rest are general hospital. One of the MOH-managed hospitals is specialized in psychiatry whilethe other is a general hospital. In addition, 18 privatehospitals add capacity of 913 beds. The NeurospinalHospital, with 36 beds, is specialized in neurosurgicaland rehabilitation, a 14-beds hospital is specialized inmaternity and surgery and another 4-beds hospital isspecialized in plastic surgery.

In addition, the DOHMS manages 6 public specialtymedical centres, while MOH manages a diabetes centreand a blood bank. A total of almost 700 outpatientclinics are operating in various parts of the Emirate.Other healthcare-related facilities includes 22 dentallaboratories, 227 optical shops, about 400 pharmaciesand 65 drug stores (retailers). Reported diagnosticservices are 21 laboratories, 9 radio-diagnostics, and15 radio-diagnostics and laboratories. Major diagnosticequipment includes 10 MRI, 17 CT, 5 Gamma Camera,16 Mamogram, 7 C.Cath Lab, 6 Lipthotripsy, 58 dialysismachines, and 9 bone density.

Personal Care ManpowerNearly half (49 %) of the total number of nurses inDubai are employed in DOHMS-managed facilities,while 6 % work in MOH-managed facilities. In contrast,more than three-quarters (77 %) of doctors operates inprivate facilities and only 21 % in public facilities.Dentists and pharmacists in the private sector accountsfor 84 % of their respective total numbers, while 58 %of technicians are active in the private sector.

In the public sector, there is a ratio of 3 nurses for everydoctor. Surprisingly, in the private sector there aremore doctors than nurses, for a nurse-doctor ratio ofonly 6 nurses for every 10 doctors, suggesting sharingof nurses’ services in private clinics and healthcare centres.

Healthcare InsuranceHistorically, the Ministry of Health is the primaryhealthcare provider in the UAE. Free, high quality careand medicines have been readily available at thegovernment’s hospitals and pharmacies ever since. Forthe UAE nationals, healthcare is totally free of charge.Until 2001, expatriates have been entitled to use thegovernment’s health services on deliverance of a annualhealth card, which costs AED 300 (USD 82).

The federal government has adopted an innovativestrategy to introduce a comprehensive health insurancescheme throughout the country. This scheme alreadystarted in Abu Dhabi, targeting only companies havingemployees greater or equal to 1,000. The Dubaigovernment recently issued a decision entitling Dubai'sresidents and visitors to be covered by a healthinsurance scheme. The government has formed up atemporary health insurance policy committee to drawup a plan for health insurance in the Emirate.

In April 2007, the Health Insurance Committee (HIC) wascreated to look into the future of healthcare funding inDubai. In December of the same year, the committeesubmitted its full report and recommendations to TheExecutive Committee (TEC). This led the DHA, the agencytaking over from DOHMS the responsibility for the entirehealth sector of Dubai, to implement the healthcarefunding system.

While being largely employer or sponsor funded, the DHAhealthcare funding structure will not stop individualsto secure private „top-up“ health insurance in additionto the basic compulsory system. The basic principles ofthe funding system are: • Outpatient Care Practices (OCP) will be at the centre

and will be responsible for managing patient care • Patients have the right to treatment at the OCP in

which they enrol• Hospitals will continue to be the sole provider of

acute care, funded by the health benefits contribu-tion (HBC).

Fitness and WellnessIn addition to world-class services provided by hospitals and clinics, leisure and sports facilities arestrategically located to provide the population withaccess to services and facilities for healthy activities. In addition, the Emirate has a non-smoking policy in public places often visited by the generalpopulation.

DHCC’s wellness program includes the creation ofcommunity featuring the following:

• Clinical villas or a cluster of villas devoted to provisionof conventional and alternative medicine outpatientclinics, located immediately adjacent to a largemedical wellness resort

• Alternative medicine – including acupuncture,chiropractic services, and osteopathy and medically-supervised health programs

• Long-term care, including nursing homes, post-trauma rehabilitation centres and terminally-illmedical care facilities

• Healthcare mixed-use to house representativesfrom each healthcare-related service, such asmedical equipment companies, insurance firms,pharmaceutical companies, healthcare consult-ants, and complementary and alternative medicinesuppliers

• Spa resorts• Hotels catering to visiting patients and their

families as well as to rotational healthcare providers

• Residential facilities for long-term accommodation

Future DevelopmentsIn the healthcare sector, Dubai’s strategy for the year2015 focuses on developing organizational, legislativeand legal frameworks based on international bestpractices to upgrade and improve the private andpublic health services.

The DHA is actively developing the healthcareinfrastructure, which ensures that the roll-outscheduled for 2009 will lead to the full healthinsurance coverage for UAE nationals and start thesmooth transition for expatriate population for whomfull coverage will be attained over several years,culminating to the provision of basic health servicesequivalent to the international benchmarks.

In the immediate future, the number of hospital beds isexpected to reach 5,415 by 2010, or nearly double thecapacity available in 2007. These will be made possiblethrough the establishment and expansion of 9 hospitalsin Dubai, contributing 1,075 beds to the currentcapacity; and 9 hospitals at DHCC, contributingadditional 1,006 beds.

The initiatives of establishing DHCC and DuBiotechaligned with global positive healthcare prospects willincrease the investment in the sector and attract moreFDI to Dubai giving the growth of the population thatexpected to grow by 6 %, the higher per capita incomeand purchasing power of both locals and expatriatesresiding in Dubai.

With modern hospitals and clinics, skilled healthcaremanpower, and wellness facilities, supported by stronghealth tourism and modern transport facilities, Dubaimakes a strong bid for leadership in the region.


Due to the investment opportunities Dubai offers andthe technology and expertise of Hamburg, opportunitiesfor bilateral co-operation between Dubai and Hamburginclude the following: • Transferring patients requiring special care /

treatment. This requires established linkages amonghospitals and clinics in Dubai and in Hamburg forflexibility and ease of transferring patients requiringspecial attention / treatment not available in thelocation.

• Research & Development partnership- Establishing medical R&D in biotechnology, phar-

maceutical and medical products and equipment- Developing stringent regulatory standards for

R&D on life sciences• Training and education of doctors and nurses

through exchange programs and the establishmentsof medical institutions and centre

• Popularization of e-health- Learning new business models in delivery of

healthcare- Education of patients to accept non-traditional

method of delivery of healthcare- Re-education of health practitioners for accept-

ance of non-traditional method of delivery ofhealthcare

• New concept of hospitals and delivery of services- Increasing focus on prevention / wellness- University hospitals- New concepts of hotel based hospital care (indoor

vis-à-vis outdoor)- Development of specialized medical services to

address population demographics (needs of agingpopulation of Germany and needs of young andexpatriate population of Dubai)

- Development of medical facilities and services formedical tourism.

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Abstract

Due to the increasing average age of the Germanpopulation, technical advancements, wide-spreadhealth awareness and increasing privatisation,Germany’s health sector is expected to see rapidgrowth of up to 75 % over the next 15 years. As amajor and wide-ranging economic branch, the healthsector is ready for this development and manyHamburg-based companies are big players at thedomestic and international levels.

Current Situation: Facts and FiguresIn Hamburg more than 3,500 companies with approx.70,000 staff operate in the following areas: medicaltechnology and disposables, pharmaceuticals, biotech-nology, research facilities, pharmaceutical trade andmedical product trade, hospitals and clinics, nursingcare facilities and individual medicine, health insurancecompanies, fitness, wellness.


Medical Technology andDisposables

Hamburg is one of Germany’s leading medical technol-ogy locations. The 6,500 employees in some 100companies generate annual sales of approx. 3 billioneuros. This sector is dominated by SMEs: only 8 % ofcompanies in this field have a staff of more than 250.Medical technology companies are also highly innovative: Hamburg is in third place in terms of thenumber of patent applications filed by German cities.

The city’s core competences are in imaging diagnosis,prosthetics, production of disposable items for wounds,dental technology, orthopaedics, otorhinolaryngology,intensive care therapy, neurology and cardiology. Someof the largest companies based in Hamburg includePhilips Medizin Systeme GmbH, Olympus Europe Group

and its subsidiaries, Olympus Winter & Ibe GmbH,Siemens AG Medical Solutions, Waldemar Link GmbH &Co. KG, Weinmann Geräte für Medizin GmbH & Co. KGand Beiersdorf AG.

PharmaceuticalsAbout 50 companies, mainly SMEs and employing some2,000 people, are active in the production of pharma-ceuticals in Hamburg with annual sales of 800 millioneuros. The pharmaceutical industry focuses on neurology,hygiene, oral therapy and allergology.

Desitin Arzneimittel GmbH specialises in medication forthe central nervous system. Strathmann AG is theGerman market leader in many areas of pain therapy,while Bode Chemie heads the European market with itshand disinfectant Sterillium.

Biotechnology More than 60 companies, mainly SMEs and employingapprox. 2,200 people, are active in the biotechnologysector in Hamburg. The companies’ scope ranges fromgenetic engineering, cell engineering, and activesubstance screenings through to upgrading industrialtechnology. The world’s leading manufacturer ofmolecular biology and cell technology tools, EppendorfAG, is also based in Hamburg, as is Evotec AG, a leadingactive substance research and development company.Within the scope of sponsored research, Evotec AGcooperates with global leaders in the pharmaceuticalindustry. Indivumed GmbH, which only started operationsin 2002, has developed the world’s first tissue bank and database containing extensive information regarding clinical data and analysis results which inturn vitally support the development of medication for cancer.

Research Facilities A key factor in the success of life sciences in Hamburgis the broad research infrastructure. The biggest shareof Hamburg’s research facilities can be found atHamburg university. The main focus of research at theUniversity Medical Centre Hamburg-Eppendorf is onneurobiology, metabolism and endocrinology, oncology,transplantation / stem cell therapy and the skeletal

system. The Heinrich Pette Institute of ExperimentalVirology and Immunology at the University of Hamburgresearches the biology and immunology of humanviruses and viral illnesses.

Hamburg University of Technology (TechnischeUniversität Hamburg-Harburg – TUHH ) mainly investi-gates engineering issues such as new approaches forproducing active substances or modern cell culturetechnology with regard to producing artificial organs.Hamburg University of Applied Sciences focuses onbiotechnology and bioengineering.

The Bernhard Nocht Institute has been working ontropical diseases since 1900 and is internationallyrenowned as a point of reference throughout Germanyfor tropical pathogens.

CAN GmbH (Centre for Applied Nanotechnology),founded in 2006, links nanotechnology with biotech-nology and works closely with industrial partners todevelop innovative nanoparticles which link up withcertain cell receptors which then helps to recognisecertain illnesses as well as plaque and pathological cellchanges prior to tumour formation, and in turn allowssuch problems to be treated.

DESY (Deutsches Elektronen-Synchrotron) generateshigh-intensity X-rays used to decrypt bio molecularstructure. The European X-ray laser project XFEL basedin Hamburg will enable structure analyses to beperformed, and with it unique research opportunitiesfor the life science sector.

Pharmaceutical Trade andMedical Product Trade

Hamburg is home to more than 1,000 companiesinvolved in the international trade, wholesale and retailof pharmaceutical, medical and orthopaedic products.The city’s 465 chemist’s and 165 sanitary stores supplythe general population with medication and othermedical products while playing a vital part in theinternational pharmaceutical trade. Some 150 firms,mainly in the business of wholesale and internationaltrading of pharmaceutical raw materials and activesubstances, make Hamburg Europe’s key importlocation and international transit hub for thepharmaceutical sector.

Hospitals and ClinicsHamburg is also well represented in this area, with 53hospitals and more than 12,000 beds. Asklepios KlinikHamburg, which was privatised at the beginning of2007, has more than 5,670 beds available in sevenhospitals, some 20 service companies and annualturnover in excess of 775 million euros – making it oneof the largest health companies in Europe. Hamburg’shospitals provide its inhabitants with excellent care onaccount of the comparatively high density of hospitalbeds (more than 73 beds per 10,000 residents) andwide range of high-quality medical services. In addition,25-30 % of these capacities are used to serve thepopulation in the Hamburg area.

Nursing Care Facilities The care market is enjoying a strong growth trend. InHamburg there are 150 in-patient geriatric care andnursing care providers with some 15,000 nursing places.There are also 320 out-patient care services which lookafter 30,000 people in need of care every year andsupport 64,000 people in need of help at home. TheHamburg care market generates annual turnover inexcess of 1 billion euros.

Individual MedicineRegistered doctors covering more than 40 specialities in3,600 surgeries help to keep Hamburg’s people healthy.There are also more than 1,100 psychotherapists, 670non-medical practitioners and 500 physiotherapy centres.

Health Insurance CompaniesInsurance has a large presence in Hamburg with a largenumber of private and statutory health insurancecompanies headquartered in the city. HanseMerkur,Hamburg Mannheimer and Deutsche Ring areexamples of private health insurance companies whileDeutsche Angestellten Krankenkasse (DAK), andTechniker Krankenkasse (TKK), two of the three largeststatutory health insurance companies, are all based inHamburg. A number of well-known Hamburg businessessuch as Axel Springer, Shell, Beiersdorf, Gruner + Jahror Norddeutsche Affinerie all have their own healthinsurance schemes.

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Fitness, WellnessHamburg is a city that enjoys a high quality of life.Various companies make a contribution in this respectwith some 900 Hamburg firms active in the sport andrecreation sector. This in turn means that Hamburg’sfitness industry is right at the top when compared withthe rest of Germany. The national average of peoplewho visit a fitness centre is about six per cent, while inHamburg this figure rises to 10.75 %. The number ofsport activities available is increasing all the time alongwith the wellness offering including saunas and Asianrelaxation techniques. Market leaders in this sectorinclude MeridianSpa, Fitness-Company and Kaifu-Lodge. There are also more than 100 private businessesoffering sport facilities such as tennis courts, golfcourses or riding halls with around 300 companiesoperating swimming and leisure pools, saunas,solariums and massage parlours.

Management ConsultingHamburg is known throughout Germany as a manage-ment consulting stronghold. Alongside generalists thatalso advise companies from the health sector, there isalso a number of specialist consultants who have spe-cialised in certain areas of the health industry such asIT consulting for hospitals, hospital management, qualityassurance, insurance company consulting, corporatecommunication within the health sector or operationalhealth management.

Future DevelopmentsThe health industry and life sciences have majoreconomic standing, which applies to medical technology,new medication development, biotechnological innova-tions as well as care services, prevention and digitalinformation and communication services. In 2003,Germany’s national health bill was somewhere in theregion of 260 billion euros.

Developments for the future are being viewed positively.The medical technology product and systems marketalone is one of the strongest-growing markets world-wide. The previous average growth rate was 7+% andthis trend is set to continue over the course of the nextfew years. In Hamburg and the rest of Germany themarket is largely covered by SMEs with a large share of

sales generated through exports. Germany is thenumber two exporter after the USA.

The market for biotechnologically produced medicationhas grown continually over the last few years. InGermany in 2004, about 9 % of chemist’s sales weremade up of biopharmaceutical products. The globalmarket is worth around 60 billion US dollars. Expertsexpect all pharmaceutical therapeutics newly developedin the future will be based on biotechnological findingsand methods. Despite the fact that biotechnology inGermany, as in the rest of Europe, is currently goingthrough a phase of consolidation, highly specialisedindividual companies with research laboratories areacknowledged internationally as having expertise interms of basic research.

The Hamburg legislature, the Senate, has also recog-nised the importance of life sciences and is promotingthem as a major cluster for the city with the motto„Metropole Hamburg – Wachsende Stadt“ (Hamburg –A Growing City). The legislative period that has juststarted aims to expand life sciences to become a healthindustry strategy. Together with the German federalstate of Schleswig-Holstein, Norgenta NorddeutscheLife Science Agentur GmbH was founded with the aim of bundling all the activities of those involved while promoting Hamburg as a location to do business in.

In 2007, the Hamburg Chamber of Commerce launchedthe „Arbeitskreis Gesundheitswirtschaft“ (health industryworkgroup) which has teamed up with more than 60companies and institutions and currently taking part ina national competition to become „health region of thefuture“ under the motto „Urban Health – Hamburg, theCity of Health”.

These figures prove that life sciences and the healthindustry are both sectors that are independent ofeconomic effects and can be consistently developedfurther. They are however subject to strong influencefrom socio-political conditions. Demographic changesare having a fundamental effect on our society: InGermany in 1910, the average age was 23.6; in 2003 itwas 40.9 and the forecast for 2050 is about 50.Population figures and the number of people of workingage are set to drop drastically. A forward-looking andcarefully planned health care concept is thereforeimperative in order to maintain knowledge, expertiseand ever-dwindling resources. In this respect, Hamburg

and its range of services are well prepared for thefuture. Demographic development has far-reachingsocial and socioeconomic consequences that are set toaffect social insurance systems, the labour markets andeconomic growth. As a result, the increasing lifeexpectancy of people in industrialised countries willcreate new challenges for the current care system. The likelihood of needing nursing care increases rapidly with age: In Germany in 2003, 34 % of men and53 % of women over the age of 85 needed nursingcare.


Dubai, the United Arab Emirates and the entire Arabworld are important markets for the life science andhealth care industry in Hamburg. This is the backgroundfor a huge amount of co-operation and activitiesestablished in the last years. A good example for that isthe common presence at the Arab Health organised bythe states of Northern Germany with the support of theHamburg Chamber of Commerce in the last years. Inaddition the Hamburg Chamber of Commerce, theGhorfa – Arab-German Chamber of Commerce andIndustry and the Hamburg government host theGerman-Arab Health Care Forum in Hamburg thisautumn bringing decision makers from hospitals,ministries and health care companies together. It isplanned to continue this conference in Hamburg in thenext years. All these activities are accompanied by anexchange programme for guest medical practitionersrun by the Free and Hanseatic City of Hamburg and the University hospital of Hamburg-Eppendorf. Thisprogramme is applied in co-operation with many Arabcountries and delivers an important contribution to theeducation of young medical practitioners in the Arabworld.

Partnerships can be formed in various areas. ManyHamburg-based companies do business in matureand saturated markets in Germany and Europe. But due to Hamburg’s traditional focus on exports toall countries in the world, the companies have anatural interest in contacts to emerging markets aswell.

Hamburg’s life science companies are able to furnishentire hospitals with medical equipment. Operatingtechnology, imaging diagnostics and laboratory diag-nostics are the core expertise on offer as Hamburg isalso able to competently deal with lifestyle-relatedillnesses such as diabetes and cardiovascular diseasesand their prevention through diagnostics technologyand clinical knowledge in hospitals.

Over the last few years, the many hospitals in Hamburghave been busy adjusting their organisational andmanagement structures as well as their serviceprovision processes to meet the changing needs of themarket. The experience gained results in expertise thatis invaluable to modern hospital services currently inthe midst of change. Efficient Hamburg-based consultingfirms are on hand to shape this expertise and tosupport the transfer process.

In the meantime, existing contacts between Dubai andHamburg should be developed and systemised.

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Abstract

Strategically located between Europe in the West andthe Asian tiger with its emerging economies (China,Japan, South Korea, Singapore and Malaysia) in theEast, and almost in the same geographic location asIndia and Pakistan, Dubai is in a position to bridge the East and the West trade and transport routes and position itself as the region’s trading and transportation hub. With its world-class airports andports, transport facilities and long tradition of trading,Dubai has become an international transport andtrading hub.

Dubai’s rapid economic growth of the recent years isexpected to bring about demand for better transportand logistics and trading facilities, which are beingaddressed by the massive development projects on-going at all fronts – air, water, and land.

Current Situation: Facts and FiguresTourism and trade have contributed significantly toDubai’s phenomenal growth, and they are expected toeven become more important in the coming years.Necessarily, as these two sectors expand, massive projects are being undertaken for the expansion anddevelopment of transport and logistics facilities in theemirate.


Air TransportStatistics of the past five years show continuingdouble-digit growth in the number of visitors andcargo that made their way into Dubai, exertingpressures in the current facilities. In 2007 alone, some34.4 million passengers and 1.57 million tonnes ofcargo passed through Dubai airport.

On-going projects involve expansion of capacity of theairlines through the addition of A380s and super-jumbos, and the expansion of the airports to accommo-date them. Targeted to open late this year, Terminal 3will increase the airport’s capacity to handle 70 millionpassengers, with first-class lounges and additional 180check-in counters and underground parking spaces for2,600 cars. It will also add 27 new gates and 59passenger-loading bridges, and 20 new contact gatesfor A380. A health club and hotel with 235 rooms and19,000 square metres of shopping facilities will beadded by then end of 2009.

A second international airport, the Al MaktoumInternational Airport (JXB), is currently under construc-tion some 40 km away, soon to be the world’s largestaviation facility. It will be the central axis of the DubaiWorld Central project, the transport and logistics clustercity being built in Jebel Ali. As of May 2008, 40 % ofthe low-cost terminal for regional and charter airlineshad been completed by the UAE-German joint venture.

The establishment of Dubai Aerospace Enterprises(DAE) signalled the move towards acquisition of know-how and development of technology in support ofDubai’s bid to become an aviation centre. As it seeks tobecome a player in the aerospace industry in the nextdecade, the DAE is investing heavily in education,business opportunities, research, and in partnerships.

Land TransportLack of adequate and efficient public transport system inDubai has made car-owning a necessity. The 409 peakbus schedules running on 62 routes serve only 250,000passengers daily, a far cry from the 1.4 million populationcomposed mainly of workers who travel regularly totheir places of work. Thus, expansion of capacity of busservice is currently being undertaken, targeted at bringingthe fleet to 2,500 buses in 2009. The first of the twocontacts has been signed with German engineering MANfor purchase of 626 new buses, consisting of 150standard, 300 articulated and 170 double-deckers.

Bidding for the second contract for 1,616 units, thebiggest bus contract any country has ever tendered inone lot, is on-going. To run over the Dubai creek, waterbuses and water taxis are designed to complement thepublic road transport system. During the 7 months of operation, the 10 waterbuses transported 102,217

passengers. Full operations, however, are targeted forearly 2009.

Aware of the fact that the expansion of the current roadtransport system can only be a short-term solution, thegovernment is rolling out projects in all directions todevelop a long-term solution to the problem. The DubaiMetro, to start operation in 2010, will be the longestdriverless system in the world. It will link the industrialareas, the airports and ports, the city and residentialcentres. It will offer 3 classes – Gold Class (VIP), Womenand Children Class and Silver Class (Economy Class). TheGold Class is tailored to the wealthy locals and will haveluxurious interiors and leather seating and will be avail-able at higher fare. The Women and Children Class willprovide extra spaces for bags and baby trolleys, while theSilver Class will have comfortable facilities for sittingand standing passengers.

Finally, the Al Safooh Tram Project, the 15-kilometerstate-of-the-art tram network, would run from DubaiMarina via Dubai Media City and Knowledge Village toMadinat Jumeirah, Mall of the Emirates and Burj Al Arab,not only becoming an effective solution to the trafficwoes, but another major tourist attraction. Works onboth projects are on track.

Simultaneous with the above projects, many city roadsare undergoing work. Projects that have been completedor are nearing completion include the expansion ofEmirates Road Project, adding 3 new lanes to theformerly 3-lane road, and the Dubai Bypass RoadProject, a large-scale project designed to ease the trafficcorridor between the borders of Sharjah and Abu Dhabi.

The expansion of the Al Maktoum Bridge and thereplacement of the Al Garhoud Bridge are two massiveprojects that had been recently completed.

The Road and Transport Authority (RTA) plans theconstruction of 500 km of new roads, 95 new inter-changes, and 9 new ring roads. The Sixth Crossing overDubai Creek, unveiled in May 2008, is destined tobecome an icon. The project has been awarded anddelivery is scheduled for 2012.

MaritimeDubai leads the UAE in its race towards becoming oneof the Middle East’s leading hub for shipbuilding and

repairing. At the end of 2006, Dubai’s maritime industryconsisted of about a hundred companies, employingabout 10,000 workers. Dubai Drydock, one of theworld’s largest ship repairing facilities and the premieryard between Europe and the Far East, leads the industry.Conceived and established in 1983 as a shipbuildingfacility, Dubai Drydock has expanded its operations toinclude ship conversion and building as well as offshoreconstruction. It employs about 150 technical staff and5,000 production workers.

Maintained by the Government of Dubai, JADAF Dubaioffers dry docking, ship repairing and maintenance facil-ity, hosting more than 130 offices and showrooms ofcompanies which provide marine services; 50 offices pro-viding spare parts for oilfields; 7 offices in marine paints;and about 30 offices of machinery / equipment rentals.

Conceived to provide excellent environment to theglobal maritime industry, the Dubai Maritime City iscurrently undergoing the third and final phase ofconstruction, involving primarily infrastructure devel-opment. It will have several districts, consisting ofDubai Maritime City Campus, Harbour Offices, HarbourResidences, Maritime Centre, Marina District andIndustrial Quarter managed by Dubai Drydocks.

In 2006, exports accounted for only about 5 % of thevalue of sales of the industry. Only two maritimecompanies operating in Dubai were wholly foreign-owned, being branches of world-renowned maritimeindustry players – NICO INTERNATIONAL and GOLTENSCOMPANY LIMITED (DUBAI BRANCH), while the restwere all national companies. However, of the 308persons and entities investing in the industry, 120 wereforeign nationals while 188 were UAE nationals. Interms of activity, only 15 % of the companies engagedin ship building and repairing while the rest dealt withboat building and repairing. Most companies werecatering to the domestic market, with only about afourth exporting.

Dubai’s success in its bid for maritime leadership in theGulf is closely related to the city’s ultra-modern infra-structure for ocean-going trade and transport. Operatedby DP World, one of the largest global ports operators,the Dubai Ports posted a combined growth of 17 % toreach 5.8 million TEUs for the first six months of 2008.

Despite the escalating property rentals which havepushed up the cost of maintaining presence in Dubai,

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many businesses still consider the city as an advantageouslocation, owing to the modern maritime facilities andservices available, government support to the industry,friendly business environment and access to the pool oftechnical and skilled workers in the neighbouring Asiancountries. The annual Dubai International MaritimeAwards is one of the programs actively pursued by theEmirate to put Dubai in the forefront of the globalmaritime industry.

However, the local educational system is not supportiveof the industry, as evidenced by the lack of technicaland maritime schools and training institutions. Mostcompanies „do on-the-job training“ and R&D units arevirtually non-existent.

LogisticsAbout 3,000 active members of the Dubai Chamber areengaged in the provision of cargo handling, storageand warehousing, as well as other auxiliary services.Starting operation in 1991, the Cargo Village presentlyservices the requirements of the Dubai InternationalAirport for cargo handling. However, it is already oper-ating at double its capacity and undergoing expansionto allow reach maximum handling capacity of 2 milliontons per year. Further expansions of cargo handlingcapacity are planned for the Dubai World Central.

Dubai Logistics City (DLC) will be part of the world’sfirst truly integrated multi-modal logistics platform ina single-bonded free zone environment also includingAl Maktoum International Airport, DWC Aviation Cityand Jebel Ali Port. With a capacity to handle over 12million tonnes of air cargo annually, DLC is strategicallylocated alongside the apron of the new AMIA andadjacent to one of the world’s largest containerhandlers, Jebel Ali Port and Free Zone. It is designed asthe region’s unchallenged logistics hub catering tosome two billion people throughout the Middle East,Indian Sub-continent, Africa and the CIS – all withinthree-to-four hours flying time from Dubai.

Dubai's Department of Civil Aviation has awarded thebiggest contract so far on the Dubai Logistics City(DLC) development at Jebel Ali, worth an estimatedAED 1,500 million (USD 409 million). Kuwait'sMohamed Abdulmohsin Kharafi & Sons has won themain construction contract for the DLC headquartersbuilding and office park. The 25-square-kilometre DLC

is designed to handle 12 million tonnes a year of aircargo in up to 16 air cargo terminals. The 26-monthcontract involves the design and construction of a three-storey headquarters building, a 10-building office park,ancillary buildings, and extensive underground parkingwith a total built-up area of 430,000 square metres.

DLC will also have its own aviation area, a dedicatedcluster for specialised aviation industry suppliers andoffering direct apron access, warehouses and cargohandling facilities. It will also have a dedicated labourvillage, with a built-up area of 350,000 square metres,to accommodate up to 40,000 workers in purpose-builtsurroundings

Dubai World Central (DWC), the vast urban aviationcommunity taking shape in Jebel Ali, is going to be akey entry point for Korea’s expanding trade with theUAE and the Middle East, according to a leading Koreanofficial. During a 30-strong delegation of KoreanLogistics providers to Dubai, Jae-Sook Kim, ManagingDirector of the Korean International Trade Association,KITA – the country’s largest non-profit businessassociation – said DLC would be pivotal to developingKorea’s expanding export footprint within the MiddleEast. Dubai and the UAE have been actively courtingKorean trade over the past year.

As the regional centre for re-export, retail, leisure,aviation, IT and banking, Dubai already accounts formore than 60 % of the entire Middle East’s importstransiting its borders, accounting for a logistics marketgrowing in excess of 20 % annually. DLC is meant tobecome the most comprehensive facility of its kind,anywhere in the world, as well as the world's largestsupply chain community, alongside Dubai WorldCentral International Airport (JXB), which is the world'slargest airport taking shape at Jebel Ali. The project hasalready received the highest acclaim from Europe's toplogistics players. DLC won the „SIL Award” in the „BestInternational Logistics Project” category on thesidelines of Europe's largest logistics fair – Barcelona's„Salón Internacional de la Logística y de la Manutención”(SIL). The award is in recognition of the best initiativesand professionals in logistics and material handling indifferent business fields, and strengthens Dubai bids aslogistic hub.

As part of Dubai World Central, DLC offers potentialinvestment opportunities as home to global companies.Companies can establish distribution centres (DCs) here

and replenish them via land, sea or air, and deliver tocustomers using the most cost and time effectivemethods. Companies will be able to move shipmentsfrom the sea terminal directly to the air cargo terminalwithout ever having to leave the bonded free zonearea. Already several industrial delegations haverecently come to the facility. To date, over 150companies have reserved over 400,000 square metersof land. The German corporate group Ehrhardt +Partner, internationally leading expert for warehouselogistics, has been the first company to establish in DLC.

Scheduled to be fully operational in mid-2009, DLC isopen for visits. Cargo operations will start by the endof 2008 or by the first quarter of 2009.

Foreign TradeDubai has an open economy, highly dependent onimports of consumer goods and of raw materials for itsindustries, in addition to capital goods. Its modernports and logistics facilities make the Emirate the portof entry of goods destined to countries in the regionand to Africa. In 2007, the value of the re-exports wasalmost a third of the value of the imports. The Emiratealso serves as port of transhipment of goods flowingbetween Europe and Asia.

Dubai’s foreign trade has widened considerably in2007, reaching 30 %. annual growth. While theimports’ growth from major European countries hasbeen declining, or at least slowing down, Dubai’simports from Germany continued to rise, These consist-ed primarily of machinery and mechanical appliances,electrical and electronic equipment, as well as vehicles.Dubai’s imports of these products accounted for 69 %of the total imports from Germany. In 2007, 214 DubaiChamber members exported to Germany.

Dubai’s non-oil exports paled in comparison to itsimports, reaching only AED 1.3 billion, leading to atrade deficit of AED 25.5 billion. Last but not least,Dubai’s import market for electronics and electricalequipment widened into Asia.

Dubai’s retail trade is expanding rapidly and indicatorshows there still remains room for further growth.Given the year round flow of tourists and foreign buyersin the Emirate, the per capita Gross Leasable Area (GLA)

is still way below the US standards (at less than 1square meters compared to 2 square meters for US).The expansion of the ports and of transportationservices, as well as the greater efficiency of supplychain management, has gradually changed the conductof retailing activities: retailers are becoming morespecialized, and consumer spending is becoming moreand more centralized to malls and markets.


The mega projects on-going or planned for in Dubaipose a challenge to the human and technical resourcesavailable in the Emirate. The above scenarios lead tothe identification of the following as potential areas ofco-operation between Dubai and Hamburg:• Training of young unskilled workers (example: job

oriented dual system, exchange programs and workapprenticeships) in areas of aircraft and ship main-tenance, complete logistic solution, supply chainmanagement, and other aspects of the jobs in thesectors

• Development of rules and regulations concerninghuman resource safety in the relevant industries

• Adoption of complete transportation solutions /Innovative solutions to support trade (includingsystem for transportation chain)

• Research and development in the relevant areas(production of components and parts and systemsautomation)

• Application of technology to automate supplychains and logistics

• Marketing services for technical products / estab-lishment of intermediate distribution centres tofacilitate procurement of even the difficult-to-findproducts and services

• Provision of ship financing and management(completion of the maritime cluster) in Dubai

• Provision of aircraft services and aircraft mainte-nance

• Increasing of port services / capacities to handlelarger vessels and container vans


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Abstract

Accession to the Hanseatic League in 1321 and a seriesof friendship, shipping and trade treaties in the 18thand 19th centuries have ultimately made Hamburgwhat it is today: Germany’s most important foreigntrade centre. And, owing to its new-found geopoliticalimportance at the heart of an expanded EU, it is nowalso one of Continental Europe’s leading import andexport hubs, with commensurately large potential forgrowth.

Current Situation: Facts and FiguresHamburg is the ‘Gateway to the World’, not justbecause of its port, but also – and just as importantly– because of the great number of importers, exportersand transit traders based in the city. Hamburg hasabout 5,000 foreign trade-sector companies, includingsome 2,500 long-established import and export firms.Hamburg is also at the forefront of the China business– due to the 900 local companies that do businesswith China and, more importantly, due to the 400 orso Chinese companies with branch offices in the city.Another key to the city’s success as a foreign tradehub is that it is home to about 3,500 foreign-ownedsubsidiaries.

The German reunification in 1990, the accession ofSweden and Finland to the EU in 1995 and the eastwardEU expansion rounds of 2004 and 2007 have pushedthe Greater Hamburg region from the periphery rightinto the midst of an enlarged, rapidly unifying market.And, being a port city and key logistics hub, Hamburgis also benefiting from growing market globalisation.In short, the Greater Hamburg region is in a primelocation at the crossroads of trade between therapidly growing regions of Central and Eastern Europeand those of Asia. Hamburg has every opportunity todynamically develop and expand its strengths asEurope’s gateway to the world and the world’sgateway to Europe.


Foreign TradeIf one includes the exporting industrial sector andinternationally focused commercial representatives andservice providers such as banks, insurance companies,transport and logistics companies, lawyers andaccountants, then the number of Hamburg-basedcompanies with cross-sectoral commercial ties beyondGermany amounts to an impressive 20,000.

Some two thirds of Hamburg’s foreign trade volume(2005: approx. EUR 68 billion) come from goodsimports, primarily semi-luxuries, copper ore, electricalproducts, tropical fruits, textiles and aircraft, with thestatistical significance of the latter due almost entirelyto Hamburg’s Airbus plant. Key export goods includeaircraft, medical equipment and chemical products.However, the foreign trade picture would not becomplete without transit trade, which accounts forsome 20 % of all cargo passing through the port.Hamburg’s most important trading partners are France,the UK, the USA and China.

As well as traditional import and export operations,Hamburg’s foreign-trade sector is involved primarily inclose-to-market activities, ranging from engineering,after-sales, packaging, logistics and distribution services,through to financing, exchange rate and warranty riskmanagement services. Hamburg is one of Europe’sforemost textile transhipment centres and its largesttrading hub for pharmaceutical commodities. The cityis home to Helm AG, the world's largest independentchemicals marketing company. Marquard & Bahls andits subsidiaries rank among the world’s leadingindependent oil traders. Thanks to its coffee importers,such as Neumann Kaffee Gruppe, its roasteries andcoffee processing businesses, Hamburg is also Europe’smost important coffee-trade centre. The same is true oftea: Hälssen & Lyon stocks over 5,000 varieties, makingit the world’s largest supplier of tea specialities. Thereare also a great number of foreign trade-orientedcompanies in the regions surrounding Hamburg, suchas Basler AG in Ahrensburg, Grundfos PumpenfabrikGmbH in Wahlstedt, Sterling SIHI GmbH in Itzehoe,Digisound GmbH in Norderstedt and DOW Deutschlandin Stade.

Maritime The maritime industry is one of the most enduring sec-tors of the Hamburg economy. J.J. Sietas KGSchiffswerft, arguably Germany’s oldest shipyard, hasbeen in continuous operation here since 1635. In theyear 2007 the Hamburg shipyards alone produced avolume of EUR 560 million which equates to 11 % of thetotal national business volume in this market segment.

Hamburg is home to about 200 shipbrokers who wereresponsible for more than three quarters of theworld’s modern container ship tonnage under charter.Hamburg also heads the list when it comes to financingthe construction of new ships and is home to a large number of shipping firms of internationalreputation.

With more than 163,000 people directly and indirectlyreliant on it for employment and with an annualcargo turnover of 140.4 million metric tons andalmost 10 million containers (TEU), the Port ofHamburg is the economic powerhouse of NorthernGermany. In the next ten years, the port’s containerturnover is set to rise by 125 % while only minimallyincreasing its land area. This growth is enabled andaccelerated by the most efficient hinterland linkagesin Europe. Strong hinterland connections appear to bethe most important factors in international portcompetition, which is why Hamburg makes everyeffort to sustain this comparative advantage.

The Port of Hamburg is Germany’s largest sea port. Itis also the second-largest container port in Europeand ranks among the ten largest container ports inthe world. In 2007, more than 12,200 ships passedthrough the port. Around 40 scheduled services onthe Eastern Asia – Europe shipping route call atHamburg, and therefore play their part in providingaround 163,000 directly and indirectly port-relatedjobs in the Greater Hamburg region. In Germany, thePort of Hamburg is the source of more than 265,000jobs. Hamburg’s shipyards are also prized for theprecision and quality of their maintenance and repairofferings, as evidenced by big-name clients like theCUNARD Line. These very positive statistics revealgreat scope for cooperative ventures withinHamburg’s maritime industry. Another avenue forleveraging cooperative ventures is the Shipbuilding,Machinery & Marine Technology (SMM) trade fair,which is held every year in Hamburg.

Hamburg is home to a number of very large shipyardsand maritime-industry suppliers. Blohm + Voss GmbH,one of the world’s leading marine shipbuilders, isHamburg’s biggest shipyard business with 970employees and EUR 300 million in annual sales. J.J.Sietas KG Schiffswerft has a staff of 900 and builds awide range of vessel types. Hamburg has a total of 14companies with more than 20 employees and whosecore business is shipbuilding or ship repair. In the shiprepair segment, Hamburg boasts names like Blohm +Voss Repair GmbH, MAN B&W Diesel AG, HinrichGoltz & Söhne GmbH and Scantrading SchiffstechnikGmbH. Most of the city’s maritime-industry suppliershave fewer than 100 employees. The other companiesin the maritime industry provide an extremely diverserange of maritime-related products and services –ranging from highly sophisticated filter units andnavigation systems to life jackets.


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AircraftAfter Seattle and Toulouse, the Greater Hamburg regionranks as the world’s third-largest centre for civil aircraftbuilding, outfitting and maintenance – a ranking it oweslargely to Airbus Deutschland GmbH and its Hamburgplant. The final assembly of the Airbus A318, A319 andA321 and the production, assembly and delivery ofmajor components of the new Airbus A380 are key partsof what makes Hamburg an aircraft industry centre ofinternational standing. Hamburg’s electronics andmicroelectronics companies and research institutes areheavily involved in the avionics sector. Employmentfigures in Hamburg’s aircraft construction and repairsectors have been rising steadily since the mid-1990s,bucking the general trend in the local manufacturingindustry. The city’s aircraft industry employs around27,000 people (as at the end of 2007), and the„Hamburg / North Germany Aviation Cluster” employssome 36,000 people. In 2005, the Hamburg aircraftindustry generated just over EUR 4 billion in sales.

Servicing almost 13 million passengers annually andwith spare capacity to service around 3 million additional passengers, Hamburg Airport is wellprepared for further growth in the future. Oncecompleted in 2008, the urban rail link will integratethe airport even more closely with the city centre.40 % of all travellers using Hamburg Airport arebusiness people. This, combined with non-stop servicesto North America and the Middle East, makesHamburg Airport a leading hub of internationalcommerce.

At the heart of the Hamburg Aviation Cluster are twoglobal players: Airbus Deutschland GmbH and LufthansaTechnik AG. They are also the two largest companies inthe German aircraft industry. Their production facilitiesare fed by some 300 small and medium-sized aircraftcomponent suppliers and subcontractors. The mainfocus of these industrial operations is on aircraft cabinoutfitting. Aircraft cabin systems need to be light-weight, compact and easy to use; but they also need tobe safe, well designed and laid out, cost-effective andcapable of delivering maximum passenger comfort andconvenience. The design requirements are thereforeextremely complex and challenging. Thanks to its strongline up of aircraft-industry companies, both large andmid-sized, and its research institutes, Hamburg is amplyendowed with the expertise needed to meet thesechallenges. Hamburg’s aircraft-industry companies and

institutes cooperate closely to develop solutions for the cabin requirements of today and innovativeconcepts for the cabins of the future. The inaugurationof a daily flight from Dubai to Hamburg by EmiratesAirlines in March 2006 has linked both cities evencloser together.

Future DevelopmentsA study conducted by the Hamburg Institute ofInternational Economics (HWWI) predicts thatHamburg’s container transhipment volumes will growby 9.2 % per annum until 2015. This means that thePort of Hamburg’s current container volume willdouble to 18.1 million TEU by the year 2015, with thisfigure set to rise to 27.8 million TEU by 2025. This issupported by a number of very robust studies thatindicate that the growth enjoyed by Hamburg’sshipping and air transport sectors over the past fewyears is likely to continue.

The Port of Hamburg constitutes a strategic interfacebetween Western Europe, Central and Eastern Europe,and Asia. It benefits considerably from its traditionallyvery close trade ties with the fast-growing markets ofAsia and is the gateway to Europe for many Asianmanufacturers. The main trading partner is China,which accounts for nearly a third of the port’s annualthroughput. The port’s plans to upgrade its existingterminals, increase their productivity and developspace for new terminals will ensure that it continues togrow faster than its competitors along the North Seacoast.

The outlook for Hamburg’s aircraft industry hinges ondevelopments at Airbus and Lufthansa Technik.Lufthansa Technik is a world leader in aircraft mainte-nance, repair and overhaul services and is continuallyexpanding and developing its activities. Airbus’s inter-nal production chain, split between Germany andFrance for the A380 super jumbo jet, is likely to remainin its current configuration. Airbus plans to continue tobuild and assemble major components of the A380 inHamburg and undertake A380 final assembly anddelivery there. This, combined with production of theentire A320 family in Hamburg will also provide a greatdeal of planning certainty for local components suppli-ers and subcontractors. The fuselage for the new A350jet will also be made in Germany. The fact that a gooddeal of the fuselage will be made from carbon-fibre

composites means that Germany will now also have astrong foothold in the carbon-fibre technology sector,which is widely regarded as the way of the future inaircraft construction.

Hamburg recently managed to assert itself in a nation-wide competition for cluster funding provided by thegovernment and now has a fourth share of a EUR 200million fund for its innovative aero technical strategy„new aviation“.


Dubai is also growing in importance as a sales anddistribution hub for Hamburg companies, with manyusing the Emirate as their gateway to the entireMiddle East region. Companies in this categoryinclude Eppendorf AG, Beiersdorf AG and oil whole-saler Oiltanking AG.

In 2007, the volume of international trade betweenHamburg and the UAE amounted to EUR 140 million.There are currently more than 400 Hamburg-basedcompanies engaged in trade with the UAE; more than300 companies export from Hamburg to theEmirates; more than 50 Hamburg companies haveoverseas representatives in the Emirates; and morethan 20 companies have branch offices there. TheHamburg-based foreign trade-sector companies thathave branch offices in the UAE include Jos. Hansenund Söhne, TPM, E.G. Kistenmacher, Terramar GmbHand Jebsen & Jessen.

Hamburg and the UAE / Dubai are both centres oftrade and regional goods transhipment hubs servic-ing important hinterlands. As such, both stand tobenefit from the increasing globalisation of trade. Asthe UAE and the other Gulf States continue alongtheir (industrial) development path, Hamburg-basedcompanies will increase their trade in commoditiesand semi-finished products (such as petrochemicalproducts) and boost their sales in industrial finishedproducts (machinery and machine parts) and medicalproducts (pharmaceutical products, medical equip-ment).

Currently, there are 23 liner services from Hamburgto Dubai, offered by 20 different shipping lines.Services are mostly run in weekly frequency. Infuture, there are two areas representing opportunitiesfor co-operation between the Port of Dubai and thePort of Hamburg. Firstly, both ports are closelyintegrated into cities. In Hamburg, the suburb ofFinkenwerder is separated only by a narrow canalfrom the Eurogate container terminal, which currentlyhandles close to 3 million TEU every year. And on theRiver Elbe’s Veddel Island, industrial land lies imme-diately adjacent to residential land. In Dubai, PortRashid is located right next to the old part of the cityat the mouth of the Dubai Creek. It may therefore bepossible for the two ports to jointly discuss andcompare their respective difficulties, challenges andopportunities via a ‘Network of City Ports’. Secondly,the Hamburg Cruise Terminal and the new CruiseTerminal in Dubai might conceivably enter into some form of co-operation in the area of passengershipping.

There is also scope for bilateral co-operation betweenHamburg and Dubai in the maritime industry, in theareas of raw materials and components production.The United Arab Emirates are home to a number ofsteel processing plants which could supply parts forthe shipbuilding industry.

Also aircraft industry, in the areas of raw materialsproduction, there could be good opportunities forbilateral co-operation between Hamburg and Dubai.Specifically, Dubai could potentially supply thealuminium that Airbus and other companies requirefor the manufacture of aircraft components.


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Abstract

Dubai makes an efficient use of latest technologyavailable. Due to the easy entry of media and IT firmsinto the market, Dubai’s population has access to thelatest gadgets and IT equipment and facilities, as wellas to global communications and media programs. Toaddress the lack of inherent capability to develop newtechnologies and bring them to market, Dubai hascreated investment areas and vigorously invitestechnology companies to locate in these areas.

Current Situation: Facts and FiguresIn its bid to gain media leadership in the region, Dubaihas founded the Dubai Press Club, the Dubai MediaCity, and, recently, the Mohammad Bin Rashid MediaCollege. The latter is aimed at developing a newgeneration of professionals capable of assumingleadership roles in the rapidly changing global informa-tion landscape. Since September 2008 the college enrolsstudents for the Bachelor of Media Arts programme.

Currently, 14 publishing houses, 18 printed and onlinemagazines, 14 printed and online newspapers, 28

television network and single channels, and 12 radionetwork and single stations serve the needs of thepopulation for information and entertainment. The 6companies engaged in film production are primarilyinto production of advertising materials.

Etisalat leads the UAE Telecommunication Industry,with du gaining its own share of the market.Furthermore, 35 other companies are engaged inproviding value-added services and facilities fortelecommunications.


MediaThe media sector in Dubai and in the UAE haswitnessed a steady growth in the last few years,especially in the radio and television sectors. TheDubai Media City (DMC), which has been establishedJanuary 2001, has played a major role in this devel-opment. This dedicated media free zone provides anadvanced infrastructure environment, being at thesame time authorized to license activities related topublishing, broadcasting, film, media and related services.

DMC opened with 60 media outlets, includingReuters, CNN, MBC, and CNBC. Today, more than1,200 companies are located in the free zone,including the global players Associated Press (AP),Bertelsmann, International Advertising Association(IAA), McGrawhill Platts, and Sony; and regionalplayers as Saudi Research & Publishing and TajTV.

The television networks operating in Dubai includeDubai Media Incorporated, owned by Dubai govern-ment department and administers Dubai TV, SamaDubai, Dubai One and Dubai Sports Channel.

ITDubai Internet City (DIC) provides a KnowledgeEconomy Ecosystem designed to support the develop-ment of business Information and CommunicationsTechnology (ICT) companies. DIC is the Middle East’sbiggest ICT infrastructure inside a free trade zone. DICis a strategic base for companies targeting emergingmarkets in a vast region, extending from the MiddleEast to the Indian subcontinent, from Africa to the CIScountries. This area is estimated to cover almost 1.8billion people, with a GDP of USD 1.6 trillion.

Within a short period of time, a dynamic internationalcommunity of ICT companies has established in DubaiInternet City. The global ICT giants are all there:Microsoft, Oracle, HP, IBM, Compaq, Dell, Siemens,Canon, Logica, Sony Ericsson, Schlumberger and Cisco,to name a few. In addition, many small and medium-

sized enterprises and entrepreneurial ventures nowoperate at DIC.

The ICT cluster in Dubai Internet City comprisescompanies from various sectors: Software Development,Business Services, Web Based & e-Commerce,Consultancy, Education & Training, Sales & Marketingand Back Office Operations. Moreover, DIC provides ascalable state-of-the-art technology platform to com-panies that engage into cost effective Remote Services,such as call centre operations. DCCI not only providesan environment that attracts most elements of thevalue chain for an ICT business, but it has alsodeveloped programs that can be leveraged by the ICTcommunity to explore and expand channel andbusiness development opportunities.

TelecommunicationsThe UAE has the most developed telecommunicationssector in the region, with the state telecommunicationsgiant Emirates Telecommunications Corporation (ETI-SALAT) having the monopoly until two years ago.Affiliated to the company is Thuraya, a UAE-basedtelecommunications company providing cost-effectivemobile satellite services in more than 110 countries inAsia, Africa, Europe and the Middle East. The servicesprovided by Thuraya include mobile voice, broadband,maritime, rural telephony, fleet management and other advanced applications that enable peopleand businesses everywhere under its coverage to enjoy constant access to communications andinformation.

The company has launched its third satellite on 15January this year, bringing countries of the Asia-Pacific region under its footprint and extending itscoverage to nearly two thirds of the globe's population.

On 31 December 2005, the Emirates IntegratedTelecommunications Company PJSC acquired fromTecom Investments FZ LLC the business and assets ofSama Communications Company, DIC Telecom(International Operations) and its technology division.Under this deal du, the company’s service brand,acquired a subscriber base of 19,100 containing bothenterprise customers and a consumer base. Accordingto the management, this acquisition will put du in theperfect position of pursuing its strategic vision forintegrated telecommunications services across the

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UAE. On 12 February 2006 the TelecommunicationsRegulatory Authority and du signed a 20 year licenseto provide wire line, wireless, international and datatelecommunications services across the entirecountry. Also in February, the company completed thesuccessful launch of its Brand „du“ to the press andpublic. Presently, the new competitor, du, has only asmall share of the market, but growth has beensteady.

Last but not least, 40 small and medium-sizedtelecommunications companies provide businessvalue-added services, such as access to internet andother media related needs of households and privateindividuals.

IT EducationCourses on IT applications are very popular in the UAE,given the advanced state of the telecommunicationssector and the ease of public access to facilities andequipment. These courses are offered in both publicand private higher educational institutions, the lattermostly being branches of universities and colleges inEurope, USA, Canada, Australia and in other large Asiancities. On the contrary, engineering courses are not verycommon.

The three main entities comprising the DubaiTechnology and Media Free Zone are Dubai Media

City, Dubai Internet City, and Dubai KnowledgeVillage, with the latter engaged in the developmentof the region’s talents pool. As part of the DubaiHolding, this zone is a vibrant, connected learningcommunity that houses leading educational institutions.As a free zone, it is open to global universities andcolleges for opening of branches and extensions, aswell as for teaching and research. It also has facilitiesfor foreign students wishing join the Emirate’sacademic community.

Future DevelopmentsDubai is a user of technology, but it does not engageinto inventions and development of new technologies.Dubai hopes to take knowledge to new heights byopening its doors to global companies, which wouldserve as conduit to facilitate diffusion of technologyand, ultimately, of capability for such higher level ofdevelopment. Dubai Technology and Media Free Zoneare expected to remain the centre of media and ITdevelopments in Dubai.

Dubai’s telecommunications sector is currentlydominated by the two operators – Etisal and du.Although the lack of competition slow down theimprovement of services Dubai’s telecommunicationsservices remains at par with the world’s best. The twoindustry leaders are expected to continue theirexpansion programs, with Etisalat expanding to other

countries while du still striving to achieve an attainablelevel in the domestic market.

As long as oil prices remain high, the continuing highliquidity will sustain the growth of the UAE’s economy.With Dubai being the trading and services centre of thecountry, demand for technology-driven products andservices is expected to remain high.


Germany is regarded as a world leader in inventionsand new technologies, as well as in transforming theirinventions into marketable products. In the followingareas German investments in Dubai could be of mutual benefit:• Joint ventures in the provision of highly specialized

value-added services to businesses, such as:- E-Commerce and communication support and

services- Business information services

• Such type of business arrangements would havegreater access to financing and technology

• Education and training in the latest technology, in the form of investments in education /traininginstitutions in the Knowledge Village

• Fully German-owned technology firms at any of theDubai Free Zones (Dubai Media City, Dubai InternetCity, Knowledge Village, Dubai TechnoPark). Suchinvestments would bring a greater awareness of theavailability of new technologies, of their applications,and of latest media and IT gadgets in the market atlower prices. This will increase competition inDubai’s export markets for these products.

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Abstract

Hamburg is Germany’s number one media capital:some 62,000 people work in 15,025 companies activein the advertising and publishing sectors, cultural sector,print and broadcasting media, or in the music, games,TV and film industries (result of the number of companiescounted on 1st July 2008). Publishing has a very long-standing tradition in Hamburg and its soundreputation still applies today. For more than twentyyears, Hamburg has been the city with the mostsuccessful advertising agencies in Germany. The filmindustry in Hamburg is lively and benefits frominternationally acclaimed directors such as Fatih Akin.The many attractive sites make Hamburg a popularlocation for film and TV companies with the port, St. Pauli and the Alster also attracting internationalproductions. Studio Hamburg GmbH is Germany’slargest TV studio and the second-largest TV producer.With Norddeutscher Rundfunk (NDR), Hamburg hoststhe third largest ARD public broadcasting station. ARDhas been broadcasting its daily news Tagesschau fromHamburg for 50 years, with regional broadcastingsproduced by the local studios of ZDF, RTL and SAT1 andthe ,local station Hamburg1. Hamburg-based companiesin the music business rank among the top players.Hamburg is also a stronghold of the fast-growinggames industry. The diversified Hanseatic medialandscape is favourable to game producers. The culturalindustry in Hamburg is of much higher local value thanthe German average in terms of sales and number of employees in the sector. The success of the concept is underlined by tourist figures: Over ten mil-lion visitors frequented the cultural institutions,which are continually promoted by the Hamburgcultural board.

The media sector in Hamburg also enjoys promisingprospects for the future. Due to long-standing tradition,the large variety of businesses in different mediasegments, and the presence of global players as well asinnovative start-ups, the media sector promises toremain one of the most relevant industries in Hamburg.Scope for bilateral co-operation between Hamburg andDubai in the media sector could come about with regardto knowledge transfer and investments.

Current Situation: Facts and FiguresThe number of media companies in Hamburg hasincreased by 31 per cent since 2003. Thus, the city onthe Elbe river clearly outpaces competitors like Berlin,Cologne and Munich. The publishing and advertisingsectors show the healthiest margin and regularly holdtop rankings at national and international competitions.The Norddeutsche Rundfunk (NDR), the third largestARD public broadcasting agency for television andradio, is also based in Hamburg. This industry sector alsoplays a major role in the political landscape: Thecompetence cluster media is part of the Hamburg senate’soverall concept „Metropolis Hamburg – Growing City”.The city of Hamburg offers media companies a uniquecombination of location advantages: • A media landscape representing all industries with a

large variety of businesses. This is a vital issue interms of increasing media convergence

• A large variety of competent service providers,particularly including small and medium-sizedenterprises

• Qualified and skilled personnel• The high quality of life and infrastructure in the city.• A creative environment with many interesting

contacts and active networks


Publishing In June 2008, some 1,514 publishing companies; 656print companies operated in Hamburg. Publishing has avery long-standing tradition in Hamburg. As early as1830, Hamburg was known as „Germany’s strongholdof newspapers”, a reputation still valid today. Both AxelSpringer Verlag, Europe’s third-largest newspaperpublisher, and Gruner + Jahr, Europe's largest magazinepublisher, are located in Hamburg.

The Heinrich Bauer Verlag, the Jahreszeitenverlag and theSpiegel-Verlag Rudolf Augstein are also establishednames within the German media landscape. The DeutschePresse-Agentur (dpa), as the largest German news

agency and as one of the leading agencies worldwide,sells reports to almost every editorial office in Germany.

In Hamburg, Gerd Bucerius founded the newspaper DieZeit, Rudolf Augstein came up with Der Spiegel, HenriNannen created the magazine Stern and Axel Springerfounded the tabloid Bild and the local newspaperHamburger Abendblatt. A large variety of other news-papers and magazines add to this list, includingFinancial Times Deutschland, Geo and TV Movie as wellas award-winning trade journals such as Mare or BrandEins. When reading a German newspaper or magazine,the chances are that it is a publication from Hamburg:Nine out of ten best-selling titles with the highestcirculation originate from the city.

Hamburg hosts the LeadAwards, Germany’s mostrenowned award for print media, every year. Youngjournalists with outstanding achievements in news-paper and magazine journalism are awarded the Henri-Nannen Prize or the Axel-Springer Prize for YoungJournalists.

The publishing houses in Hamburg are also strong in thespecialised press and sales bulletins sectors. The twolargest German tourism magazines – FVW Internationaland Travel Talk – are printed by the Hamburg-basedpublisher Dieter Niedecken. Deutsche Verkehrs-VerlagGmbH publishes the leading logistics magazine calledDeutsche Verkehrs-Zeitung. The corporate publishingproducts of Hoffmann & Campe, Gruner + Jahr,Corporate Media and schmitz-komm.de rank among thesector’s most successful products.

AdvertisingAccording to the data collected in July 2008, almost9,908 companies, 2599 of which active in the multimediasector operates in Hamburg. For more than twentyyears, Hamburg has been the city with the mostsuccessful advertising agencies in Germany: Companiessuch as Jung von Matt have always held top national and international rankings for example at thecompetition of the Art Directors Club ADC or at theCannes Lions International Advertising Festival.

Other Hamburg agencies regularly appear among thegroup of top creatives, among them Grabarz & Partner,kempertrautmann, Kolle Rebbe, Nordpol Hamburg, Scholz& Friends and Zum Goldenen Hirschen. Alongside the

much sought-after ADC-Nails and the Cannes Lions, ouragencies regularly engage in bringing awards such as theGWA Effie, Das Plakat or the Clio Award to Hamburg.Hamburg's advertising competence is also reflected in thesector’s diversified structure. Important media agenciessuch as pilot media and GFMO.OMD as well as importantopinion research institutes such as Nielsen MediaResearch, Ipsos and United Research are all based inHamburg.

Additionally, a number of leading direct marketingagencies are based in Hamburg including Proximity,which was awarded the German direct marketing prize2005 by the Deutscher Direktmarketingverband e.V.

MultimediaIn Hamburg there are 2,599 multimedia companies.

As the digital network of the media world continues togrow, Hamburg has developed into the leading locationin Germany for this key sector of media convergence.Alongside six of the top ten online promoters, AOLGermany and freenet.de, two of the three mainInternet providers, and the leading Internet searchengine Google all have their headquarters in Hamburg.In addition, specialised business-to-business providerslike „Wer liefert was?“ are also represented by the riverElbe, and the Internet provider www.hamburg.de,Hamburg’s online business card, counts among themost successful city portals in Germany.

According to the trade journal Horizont, six out oftwenty of Germany’s best websites are designed byHamburg-based companies; this comes as no surprisesince Hamburg is also home to leading and award-winning Internet agencies such as SinnerSchrader,Fittkau & Maaß Consulting and Nasa 3.0. The industrynetwork Hamburg@work offers a platform for cross-linking suppliers from the IT industry and thedigital communication sector.

Film Industry„Sorry Berlin, but Hamburg is the most beautiful city inGermany“. These were the words of the Hamburgproducer Fatih Akin as he received the Golden Bear forhis film Gegen die Wand (Head on) at the Berlinale2004; he has also received other awards such as the

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German and the European Film Prize. Films made inHamburg, just like Akin’s masterpiece, have beensponsored in an efficient and goal-oriented way for the past 25 years. Lauras Stern, Rosenstraße orMännerpension are just a few of the 1,283 titles thathave received public support since 1995.

Trends such as web TV, video on demand, mobile TV orIPTV are revitalising TV as an economic factor. New TVstands for TV via new channels, and Hamburg is a trail-blazer in this respect. No other location in Germany hassuch a powerful and balanced structure combined with aplethora of technology and content providers as Hamburg.This in turn leads to a vast reduction in investment costswhen it comes to the infrastructure required to broadcastTV content. The result of this is the opening up of numer-ous opportunities, especially for innovative, flexible smalland medium-sized enterprises. In order to drive digital TVdevelopments in Hamburg the Hamburg@work initiativeset up a specialist group for new TV.

Hamburg is the most important German advertising filmlocation with a market share of 40 per cent. Cobblestone,Five Three Double Ninety, Production International andMarkenfilm figure among the most successful advertisingfilm producers; Markenfilm is one of the largest producersworldwide and is based in Wedel near Hamburg. Withfilms like Der kleine Eisbär and Käpt'n Blaubär, Hamburghas also acquired a reputation as a centre for cartoons.Renowned suppliers of the post-production sector are alsobased in Hamburg: the image sector (VCC Perfect Pictures,OPTIX DigitalPictures) and also the audio sector isrepresented with many outstanding sound studios(Studio Funk, Hastings Music, Konken Studios). ProconEvent Engineering is the leading equipment supplier.Furthermore, CinemaxX, one of the leading Germancinema operators, and Deutsche Filmversicherungs-gemeinschaft (DFG), the largest German film insurer,have their head offices in Hamburg.

Radio and Television72 companies; 12 locally producing radio stations (with7 private stations); 31 available radio stations operatein Hamburg’s metropolitan area. With NorddeutscherRundfunk (NDR), Hamburg hosts the third largest-ARDpublic broadcasting station. ARD has been broadcastingits daily news Tagesschau from Hamburg for 50 years,with regional broadcasts being produced by the localstudios of ZDF, RTL and SAT1. The Media Centre

Rotherbaum was founded in 1995 and has sincebecome the base of Germany’s most successful local TVstation, Hamburg 1. The same building also accommo-dates the ZDF talk show Johannes B. Kerner. TheHamburgische Anstalt für neue Medien (HAM) hasgranted licences to seven private radio stations includ-ing Oldie 95, Klassik Radio, which is broadcast nation-wide, and Germany’s leading local radio station RadioHamburg with a local listener share of about 30 percent. The market leader and second-largest private radiostation Oldie 95 is serviced by the regional marketingcompany More, which is successful throughoutGermany. The European market leader in radio promotion,Radio Marketing Service (RMS), is also based in Hamburg.

Music IndustryData of July 2008 show 1,079 companies operating inthe music industry. Hamburg-based companies in themusic industry rank among the top players. Leadingrecord labels like Warner Music Group and Europe’slargest independent label edel music are both locatedin Hamburg. A large number of music publishers likeEMI Music Publishing Germany, Peermusic, Sikorski orWarner Chapel add to these. Almost a dozen companiesline up to create Hamburg’s subculture vibrations.Hamburg has always been a talent factory for creativemusicians: Udo Lindenberg, Fünf Sterne Deluxe, FettesBrot, Lotto King Karl, Stefan Gwildis as well as Echolaureate Annett Louisan all started their career inHamburg. The German Rock and Pop Award has beenpresented in Hamburg since 2000 and constitutes animportant competitive event for young talents.Hamburg’s concert operators such as Karsten JahnkeKonzertdirektion or FunkeMedia also enjoy aninternational reputation. Large arenas like the ColorLine Arena, HSH Nordbank Arena or the Laeizhallemusic hall host top quality concerts for national andinternational stars. Many successful event agenciesoperating nationwide like Vagedes + Partner,Kontrapunkt and Vion are located in Hamburg.

GamesHamburg is also a stronghold of the fast-growinggames industry. With more than 1,500 peopleemployed in over 180 games companies, Hamburg isone of the games industry’s leading locations withinGermany. In times of increasing media convergence,

the proximity to more than 20,000 companies in themedia and IT sectors offer a perfect environment forboth new and established games companies alike Thediversified Hanseatic media landscape is favourable togame producers. The German versions of several of themost important computer games like Tomb Raider(Eidos interactive) or RTL-ski jumping (49 games) weredeveloped in Hamburg. The Hamburg-based companyFishlabs ranks internationally among the top businessesin the mobile games segment.

The Gamecity Hamburg project from the Hamburg@work initiative has been supporting games companiessince 2003 under the motto „Hafen der Games-Branche” (Port of the Games Industry). The formerGames workgroup has moved on to create Germany'slargest games network for the games industry with awide range of activities.

Cultural IndustryWith 499 companies; 15,000 theatres; 83 museums andcollections, among which 75 privately owned, Hamburgis a leader in the cultural industry.

The cultural industry in Hamburg achieves much higherlocal value than the German average in terms of salesand number of employees in the sector. The success ofthe concept is underlined by tourist figures: Over tenmillion visitors frequented the cultural institutions, whichare continually promoted by the Hamburg cultural board.Apart from the three state theatres (HamburgerStaatsoper, Deutsches Schauspielhaus and ThaliaTheater), more than 30 theatres seek to attract audienceswith a diversified selection of plays. The Schmidt-Theater,extensively modernised only recently, the Ohnsorg-Theater, or the Ernst Deutsch Theater as Germany’slargest private theatre – are all institutions well-knownbeyond the borders of Hamburg. John Neumeier’s balletensemble has reached world-class standard.

Hamburg is Germany’s musical capital and on a par withNew York and London. More than five million visitors sofar have seen Stage Entertainment’s three currentmusicals: Lion King, Mamma Mia and The fearless vampirekillers. In March 2005, a new musical has celebrated itsEuropean premiere in Hamburg: Dirty Dancing. In October2008 the musical „Tarzan” celebrates its premiere inHamburg. The former Hamburg factory Kampnagel is nowan established platform for independent dance and theatre

groups while also serving as a centre for contemporaryperforming arts. Hamburg’s museums and collectionsalso attract many visitors, among them many privatelyowned institutions such as the Bucerius Art Forum, themuseum ship Cap San Diego and the Deichtorhallen withthe newly opened International House of Photography.The planned projects in the HafenCity also promisespectacular developments: The Peter Tamm InternationalShipping and Maritime museum, which has been recentlyopened, is attracting an international audience.

Future DevelopmentsHamburg’s media sector can look forward to a promisingfuture. Due to long-standing tradition, the large varietyof businesses in different media segments, and thepresence of global players as well as innovative start-ups,the media sector promises to remain one of the mostrelevant industries in Hamburg. However, Hamburg hasto face the challenges of other German cities trying tomake up ground in the media sector.


Hamburg and Dubai already share some common interestsin the media sector. On the occasion of the HamburgAnimation Award 2007, the „Länderpreis HamburgAnimation Award” went to „Freej”, by Mohammed SaeedHarib from the American University of Dubai. The Ham-burg Animation Award, an international award for ani-mated cartoons, is a concept organised and sponsored bythe Hamburg Chamber of Commerce, the BildungswerkMedien e.V. (a society supporting young media projectsand newcomers) and the animation school-Hamburg.

There may be scope for bilateral co-operation betweenHamburg and Dubai in the media sector with regard toknowledge transfer and investments. Young professionalsor students from Dubai could visit companies in Hamburgto learn about the media sector, or senior professionalsfrom Hamburg could give lectures at a high-class mediacongress in Dubai. On the other hand, investors fromDubai might be interested in financing innovative start-ups in industries such as games or new TV.

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HamburgChamber of Commerce


dubai hamburg business forum 2008

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