DOING BUSINESS WITH ARAB COUNTRIES

FIT at your service

Arab countries, (still) a place for business? 1

The Arab world?

Reasons for optimism

• Oil importing countries- Economic growth impacted by political transitions, social

and security tensions- Structural reforms to raise growth - Fiscal reforms and donor financing to improve confidence

• Oil exporting countries- Natural resources- Stable near-term growth prospects, but risk of low(er) oil

prices- Economic diversification - long term development strategies

Population (mio)

GDP/capita GDP growth %2013 2014 2015

Doing Business ‘14

Corruption Perception ‘13

Algeria 36,5 $ 5,659 2,7 4,3 4,1 153 94Bahrein 1,2 $ 23,027 4,9 4,7 3,3 46 57

Egypt 82 $ 3,109 2,1 2,3 4,1 128 114

Iraq 33,6 $ 3,882 4,2 5,9 6,7 151 171

Jordan 6,4 $ 4,901 3,3 3,5 4,0 119 66

Kuwait 3,8 $ 46,142 0,8 2,6 3,0 104 69

Lebanon 4 $ 10,416 1 1 2,5 111 127

Libya 6,6 $ 12,878 -9,4 -7,8 29,8 187 172

Morocco 32,5 $ 2,987 4,5 3,9 4,9 87 91

Oman 3,2 $ 25,152 5,1 3,4 3,4 47 61

Qatar 1,8 $ 100,377 6,1 5,9 7,1 48 28

Saudi-Arabia 28,8 $ 22,822 3,8 4,1 4,2 26 63

Tunisia 10,8 $ 4,151 2,7 3 4,5 51 77

UAE 5,5 $ 65,377 4,8 4,4 4,2 23 26

Yemen 25,9 $ 1,405 4,4 5,1 4,4 133 167

Source: IMF, WB, TI

Promising sectors

• Oil & gas• Infrastructure• Construction & housing• Green energy• Healthcare • …

Market approach

• Business is more than just business• Personal contact• Carefully select and manage your local partner• Seek advice from a local lawyer• Show respect• Be patient!

Bilateral trade2

Bilateral trade Flanders – MENA

2012 2013 2014 Share2014 in %

2012 - 2013 2013 - 2014

EXPORT

Middle East 3.705.444 3.989.639 4.356.743 2,96% 7,67% 9,20%

North Africa 1.790.692 1.788.029 1.679.757 1,14% -0,15% -6,06%

IMPORT

Middle East 3.804.510 3.930.027 3.358.910 2,32% 3,30% -14,53%

North Africa 1.435.020 1.254.891 1.170.323 0,81% -12,55% -6,74%

Period: jan-jun

Export markets Rank 2013 2014 2013 - 14UAE 16 1.320.282 1.721.756 30,41%Saudi-Arabia 33 734.159 675.458 -8,00%Algeria 38 522.926 554.717 6,08%Egypt 41 647.162 536.663 -17,07%Morocco 46 335.213 325.417 -2,92%Lebanon 55 145.572 176.624 21,33%Tunisia 60 173.314 158.919 -8,31%Jordan 63 88.362 129.066 46,06%Iraq 72 84.078 109.355 30,06%Libya 79 109.086 99.766 -8,54%Yemen 82 151.211 80.661 -46,66%Qatar 85 60.701 74.426 22,61%Oman 87 94.320 70.585 -25,16%Kuwait 89 69.182 61.514 -11,08%Bahrein 115 26.315 26.684 1,40%

Import markets Rank 2013 2014 2013 - 14UAE 22 1.316.859 1.147.101 -12,89%Algeria 29 757.289 750.881 -0,85%Saudi-Arabia 31 800.075 655.215 -18,11%Qatar 38 586.024 478.150 -18,41%Morocco 52 227.570 211.419 -7,10%Egypt 64 127.177 124.393 -2,19%Kuwait 76 32.284 79.999 147,79%Tunisia 78 104.973 75.565 -28,02%Oman 95 38.930 40.562 4,19%Bahrein 100 95.500 31.001 -67,54%Lebanon 107 33.822 17.449 -48,41%Jordan 123 5.739 8.542 48,83%Libya 124 37.870 8.066 -78,70%Yemen 152 34.764 1.145 -96,71%Iraq 180 249 88 -64,44%

Flanders Investment & Trade3

Mission statement

• Actively and sustainably promoting international trade to, from and in Flanders

StructureBoard of Directors

Headquarters

Provincial Network

Foreign Network

Foreign network …

… in Arab countries

• FIT Casablanca Conny Van Wulpen• BIE Algiers Rudy Mertens• AWEX Tunis Frédéric Du Bois• FIT Tripoli Naser Eltarhouni• FIT Cairo Haguer Magdi• AWEX Amman Patrice Le Grelle• BIE Beirut Nada Abdul Rahim• FIT Riyadh Kris Castelein• FIT Dubai/ Abu Dhabi Edouard Renson• FIT Doha Charlotte Struye• BIE Kuwait Mounif Kilani

How can FIT help you?

Information

Personal Advice

Subsidies

Action program

Information

• Country files• Market studies• Trade proposals• Statistical information• Manuals on doing business• …

www.flanderstrade.be

Personal advice

• Provincial office• First point of contact • International Trade Advisors

• Mini-audit “Exportmeter”• 90 questions on 8 fields of doing business • Rapport with score/benchmark• Concrete action plan with tips and recommendations to

optimise your business methods and processes to improve your export performance

Personal advice

• Foreign network • Address specific questions from Flemish companies• Provide contact details of prospects• Prepare individual prospection trips• Provide on site help• Organisation of trade missions and events• Pro-active market prospection• Network of crucial contactpersons

Subsidies

• Product documentation, commercial translations, publications in specialised media

• Participation in trade fairs and niche-events • Prospection trips outside EER• Business trips to seats of multilateral institutions for

projects outside of the EER • Invitation of buyers and decision makers • Costs related to registration, homologation and certification• Entering a service center• Setting up a prospection office

FIT-events

• Contactdays Middle East: 2 - 11/12/2014• meet our representatives from Saudi-Arabia, UAE, Qatar, Kuwait,

Jordan, Lebanon, Iran

• Trade missions• Multisectoral mission Egypt 25-28/11/2014• Princely mission Qatar, UAE 21-27/03/2015

• Trade fairs• Gulfood, Adipec, Arab Health, Big 5, Hotel Show, Sweets & Snacks

• Invitations of buyers• Saudi Aramco Overseas, 02/2015

Evelien StaelensAreamanager MENA

Koning Albert II-laan 37 │ 1030 Brussels – Belgiumevelien.staelens@fitagency.be – 02 504 88 48

www.flanderstrade.be twitter.com/flanderstrade │ www.linkedin.com/groups