Middle East presentationIHMEC 20.04.2018Jukka Hahlanterä

2

1% = 800 bUSD

Easiness of doing business

3

United Arab Emirates 21Bahrain 66Oman 71Qatar 83Saudi Arabia 92Kuwait 96Iran 124

Country Overview KSA

4

Population: 29 millionPopulation growth: 1.5% (est.)Size of country: 2,149,690 sq km

GDP: $646billion (2015)

GDP growth: 3.4% (2015 est.)GDP/capita (PPP): $25,642

Inflation: 3% (2015)Main cities: Riyadh,Jeddah, Makkah & DammamReligion:: MuslimLanguage: Arabic

BA

SIC

ST

RA

DE

2015 Figures

Finnish export: € 371 Million

Finnish import: € 26 Million

MA

IN I

ND

US

TR

IES

Crude oil production,

petroleum refining,

basic petrochemicals,

industrial gases, cement,

fertilizer, plastics, metals,

telecommunication, construction

Executive Summary• Saudi Arabia is the 20th largest economy in the world and the largest economy in

the Middle East and North Africa Region - MENA.

• The Kingdom is one of the world's fastest growing countries worldwide, with per-capita income forecast to rise from USD $21,000 in 2015 to USD $33,500 by 2020.

• It has substantial cost advantages due to the low domestic cost of energy and industrial land due to generous subsidies and incentives.

• It provides duty free access to other GCC and MENA economies and enjoys good transport and infrastructure links which will soon be supplemented by a national rail system.

• Despite the low price of oil being experienced in the market, GDP is forecasted to grow 1.9% in 2017 . Oil prices now at 60+ level.

Business Opportunities KSA• Oil, gas and petrochemicals

• Power, including nuclear and renewable energy

• Water and wastewater

• Education, training and human capital development

• Mass transport infrastructure including new rail, metro and bus links

• Environmental technology and services

• ICT

• Consumer and luxury goods

• Defense and security / cyber security

• Healthcare and Life Sciences

• Mining

• Very big known reserves

• Tourism

UAE

7

General facts UAE

• Total area of UAE is 83,600 sq km (equivalent to Austria)• Abu Dhabi 62,340 sq km

• Dubai 4,100 sq km

• Total population is 9,5 million• Abu Dhabi 3,0 million

• Dubai 2,6 million

• In 1971 the total population was 272 000

• Expats make up to 80-90 % of the population

UAE Economy• Main industries

• Oil and petroleum

• Fishing

• Cement

• Ship yards

• Construction material

• Fertilizers

• GDP 400 b$

• GDP growth was 1,3 % in 2017, forecast for 2018 is 3,4 %

• FDI 10 b$

Business opportunities UAE• Cleantech

• Water management

• Renewable energies

• Smart Grids

• Education

• Exam exchange

• Finnish CV schools

• Health Care

• Preventive health care

• Rehabilitation

• Medical Technology

• Bioeconomy

• W2E

Gulf area business opportunities• WATER

• White and grey water management

• Ground water

• Lakes

• ENERGY AND RENEWABLE ENERGY (incl. nuclear power)

• Solar energy

• W2E

• Smart Grids and Smart metering

• MINING

• Mining and refining technology

• HEALTH CARE

• Hospital and clinical equipment

• Preventive health care

• Pharmaceuticals

• EDUCATION

• Vocational training

• PRODUCTION EFFICIENCY

GCC countries’ visions

• Diversification of industry base away from dependance on

petrochemical industry

• Welfare of citizens and inhabitants

• Health: life style diseases

• Education: vocational training for young people

• Sustainable infrastructure and construction

BF services in ME

• Offices in Dubai and Riad (TF commercial attache in Tehran)

• Go-to-market services

• Advice

• Local networks

• Business opportunities

• Invest in Finland

• Visit Finland

7 things to remember

• Do not rush while greeting people

• Building trust is important since personal and professional relationships are not considered separate

• Remember that verbal commitments are valued more than contracts and agreements (honesty)

• Have patience before and during business meetings

• Negotiations will be tough and sales cycles will be long

• Best way to communicate is face-to-face

• Avoid business talk at social gatherings

Notes

• NOT email countries

• It is not what you know, it is who you know

• Very competitive environment

• Not necessarily better prices

• Get yourself in and you stay in

• Local presence

Service Portfolio for Finnish Organizations

DiscoverOpportunities

Build Your Network

Funding

Innovate Go to Market Scale YourBusiness

FUTURE

Go to MarketPlan your international go-to-market strategy, i.e. how do you deliver your value proposition to customers and achieve competitive advantage. Define your target market, target customers, value proposition, product portfolio, business model, distribution channels and marketing

Advice for go-to-market and international growth• Find customers and partners

• Get feedback of your valueproposition from customers

• Establish your business in target markets

• Work with consultants orexperts in targets markets

Market entry services:• Global Access Program by

UCLA, Gaselli acceleratorprogram, Nordic Innovation House (USA)

• FinChi Shanghai, Fudan iLab, Tshinghua Finlab (China)

• NUS Mgmt (Singapore)• Funding for participation in

global accelerator programs

Expert Search

• Digital service

• Find consultants and other experts across theworld

Shipping handbook

• Digital service and physical book

• Information on shippingrequirements to countriesacross the world

Business delegations• High-level and high-

impact support for yourmarket entry and customer/decision makerintroductions

BF programs• Enter target markets

effectively by meeting buyers, participating to trade fairs, and building your offering together with other Finnish companies

Funding• Explorer funding

• TF trade fair grant

Introbot/X-bot

Business Finland digital self-service

BUSINESS FINLAND’S GLOBAL NETWORK

Silicon ValleyStamfordWashington DC

Mexico CityLimaRio de JaneiroSao PaoloSantiago de Chile

HelsinkiyStockholmOsloCopenhagenSt. PetersburgMoscowWarsawBrusselsLondonMunichViennaBucharestMadridIstanbul

LagosAbujaNairobiJohannesburg

AlmatiNew DelhiDubaiRyiadh

BeijingShanghaiTaipeiGuangzhouSeoulTokyo

Ho Chi MinhKuala LumpurJakarta

40 locationsglobally and 20 in Finland

WORLD IDEAS

Jukka Hahlanterä

Commercial Counsellor, Middle East

Business Finland

Mobile: +971 (0)5 67 82 97 45

Office: +971 4 313 2559

Tel: Business Skype: +358 294 695 753

Finland Trade Center, Embassy of Finland

Level 05, Standard Chartered Tower Dubai Downtown

Regus Office Room 505, PO Box 35482

Dubai, UAE

Internet: http://www.businessfinland.fi

E-mail: Jukka.Hahlantera@businessfinland.fi