CONTENT
Economy and Environment
The Boom of Egyptian Petrochemicals
Energy
Kuwait Works Hard on Increasing its Water
Supply
Environment
Lebanese Waste, a Future Energy Source
Healthcare
Rising Demands in the UAE Healthcare Sector
This issue’s spotlight:
Increasing Investments in the Saudi Healthcare Sector
Meet a commercial advisor in Denmark
Event calendar
Key economic figures for the MENA region
About us
THE TRADE COUNCIL’S
NEWSLETTER FOR THE MENA REGION May 2014
Welcome to the Regional Newsletter
Dear Reader, Welcome to the 2014 second quarter issue of the Trade Council’s Regional Newsletter for the MENA countries. The Mena region is a very diverse region with a wide range of new opportunities for Danish Companies. This newsletter reflects the diversity with a wide range of opportunities: from Petrochemicals in Egypt, Waste Management in Lebanon, Water Supply in Kuwait to the Health Sectors in Saudi Arabia and UAE. Apart from the above highlights there are plenty of opportunities in almost all sectors. If you are in doubt about the specific possibilities for your company, please contact our Embassies and Consulates in the region. We have skilled commercial advisors in our missions who will be happy to provide your company with a brief evaluation of the possibilities in a given country. All the Danish representations in the MENA region are part of a regional cooperation; our advisors in any country will also be happy to refer you to colleagues in other countries where there might be other opportunities. At the end of this newsletter you can find a list of commercial advisors from MENA visiting Denmark in near future. Please contact the relevant advisor for an appointment. We hope that you will enjoy reading this issue of the MENA Regional Newsletter, and we will look forward to working with you in the future. Bo Bjerregaard Rasmussen Consul General Regional Coordinator
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Economy and Environment
The Boom of Egyptian Petrochemicals The sector for petrochemicals is becoming increasingly more important with the recent discoveries of large gas
recourses. The industry is growing from a low base and has a lot of unexplored opportunities to offer. The
government has created a 20 year plan for the industry and incentives to attract foreign investors. Several
international companies including Methanex and Dhunseri have already entered or expanded their business in Egypt
taking advantage of the increasing demand in the region along with the strategic location, perfect for regional
export.
The Egyptian Ministry of Petroleum has established EChem to manage the Petrochemicals industry in Egypt and set
up strategic alliances with local producers, off-takers and international shareholders. The 2002-2022 Plan outlines a
total investment estimated at USD 10 bn. to cover 14 petrochemical complexes including 24 projects and 50
production units. The production will reach 15 million tons annually. EChem is currently in the process of developing
Phase II projects which now includes recent discoveries of significant gas fields in Egypt, including the natural gas
plant in Damietta Free Zone considered the largest in the world, handling 7.6 billion cubic meters of natural gas
annually.
Several joint-ventures between foreign investors and Egypt partners have already been established and more are on
their way. EMethanex is partially owned by the multinational Metanex and by the Egyptian government. EMethanex
established a plant at Damietta that has transformed Egypt into a methanol exporter and is among the most
competitive methanol plants in the world. The
Egyptian-Indian Polyester Company (EIPET), a
joint-venture between the Indian multinational
Dhunseri and EChem is planning to bring on-
stream its PET facility in the free zone area at Ain
Sokhna during 2014. The plant will be the first of
its kind in North Africa and one of the largest of
such units in the Middle East.
Chemicals and fertilizers products represent 18
% of Egypt’s total exports. Egypt supplies
petrochemical products to about 50 countries
worldwide, with Europe being the largest market
for Egyptian exports.
For further information, please contact: The Trade Council at the Embassy of Denmark Engy Basiouny - Head of Commercial Section Tel.: +20 (2) 2739 6500 / [email protected]
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Energy
Kuwait Works Hard on Increasing its Water Supply Kuwait has one of the driest lands in the world, yet at the same time, Kuwaitis are worldwide among consumers with
the highest water consumption per capita. This has put a burden on the government who works hard to invest
heavily in water projects. Water prices are significantly subsidised in Kuwait which makes it difficult to limit
consumption rates. Hence, the Kuwaiti government is facing a serious supply issue. Thus, projects are awarded to
international companies to set up new desalination plants in the centre and north of the country.
The water distribution network in Kuwait is responsible for losing a
good portion of the treated water. To put that to an end, Kuwait has
awarded a contract to Honeywell to monitor and control the water
distribution network and the efficiency of the network was improved
by 11 %. At the same time, Kuwait suffers from a serious water
storage problem. In reaction to this, the Government awarded a
project to a Swedish company to develop and devise a plan for a
modern water supply system which is expected to help the country in
facing its water scarcity problem.
Waste water management is a basic concern in Kuwait at present time. The Government is working aggressively to
find new technologies that will maximise the use of wastewater as a growing resource in the country. Plans of
setting up new sanitation plants have been announced recently by the Ministry of Water and Electricity.
The growing population and low tariff prices are the key drivers behind the fast growing water consumption rates in
Kuwait. Kuwaitis are used to the welfare state making it very difficult for the government to seriously change the
current tariff structure that has been in place for a long time. Demands for technology, management systems,
distribution and maintenance expertise is growing as fast as the consumption in Kuwait.
Total population Approx. 3.8 million (2014 estimates)
Kuwait’s total area 17,820 square kilometres
Kuwait’s maximum desalination capacity 950,000 cubic metres per da
per capita daily water consumption 482.8 litres per day in 2013.
land that is potentially cultivable 154,000 hectares (ha)
For further information, please contact: The Commercial Section at the Royal Danish Embassy in Riyadh Safiye Kucukkaraca – Commercial Advisor Phone: +966569302173 / e-mail: [email protected]
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Environment
Lebanese Waste, a Future Energy Source An urbanization rate of 90 % as well as the many refuges entering the Country has created a tremendous waste
problem in Lebanon. This means there are many opportunities for Danish companies providing equipment, methods
and consultancy for environmentally friendly waste management. Furthermore, the large amount of organic waste
make Lebanon an opportunity of investment for companies operating in the domain of waste management and
biogas production.
Currently, the problem of waste management
in Lebanon has reached a critical point due to a
deficit of national plans and scarce finances. In
Lebanon, municipalities are responsible for
waste management. However, lack of funding,
weak technical know-how, and the absence of
environmental awareness have forced most
municipalities to pay only minimal attention to
this issue. Meanwhile, only 8 % of all waste
officially managed is recycled, 9 % is
composted, 30 % is disposed in open dumps, while 53 % is disposed of in landfills. This issue provides Danish
companies and stakeholders, being known as world leaders in waste management, with a promising market
opportunity in terms of turning waste into renewable energy in addition to common beneficial solutions.
Solid waste management in Lebanon relies on an emergency plan put into effect in 1997 and has been the working
strategy ever since. It grants private contracting companies, Averda Group's Sukleen and Sukomi, the job of col-
lecting and landfilling of solid wastes in the Greater Beirut and Mount Lebanon Areas. Outside these areas,
municipalities assume the responsibility of waste collection, treatment and disposal. Moreover, Naameh is the
biggest sanitary controlled landfill in Lebanon, serving the Greater Beirut and Mount Lebanon area since its inception
in 1997.
Lebanon’s waste profile is chiefly dominated by organic waste, followed by paper and plastics. Whereas landfills are
still foreseen as having a role, this is planned to be supplemented by waste minimizing, conversion to energy,
composting and recycling.
The above means that there will be a need for developing comprehensive overall plans and strategies.
For further information, please contact:
The Commercial Section at the Royal Danish Embassy in Beirut
Ahmad El Loubani – Head of Commercial Section
Phone: +961 1 970 804 / e-mail: [email protected]
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Healthcare
Rising Demands in the UAE Healthcare Sector The UAE healthcare and pharmaceutical industry has shown extraordinary growth rates and a significant lift in
quality in the past few years. This growth is a result of a generally growing population, the introduction of mandatory
health insurances, a growing private sector and the government’s focus on improving the healthcare industry.
Standards of healthcare are generally high in the UAE, which is reflected by high levels of public spending by the
government and investments from the private sector.
In 2012 the total healthcare expenditure in UAE reached USD 14.3 bn, which is
equivalent to 3.7 % of total GDP. Compared to Denmark where the total health
expenditure in 2011 was USD 37 bn equivalent to 11.2 % of GDP, the UAE has significant
growth potential (World Bank, 2014). In a future prospect, it has been forecasted by
Business Monitor International (BMI, 2014) that the healthcare expenditure will grow at
an average rate of 6.8 % annually from 2012 to 2023 and total health expenditure in UAE
will rise to USD 39.1 bn by 2023.
Due to the growth potential in the UAE, healthcare firms are increasingly looking to expand in the Middle East.
According to BMI the Middle East was former known for sending its wealthy citizens to the US or Europe for
treatment, but the region is now becoming a popular location for medical tourism itself. Initiatives such as allowing
hospitals to sponsor visa applications for medical tourists, as proposed in Dubai, and the extension of medical
tourists' visas to up to nine months - also in Dubai - will facilitate further growth of the market.
Part of the Dubai Health Authority’s (DHA) strategy for promoting Dubai as destination for medical tourism is to use
the EXPO 2020 as a vehicle. DHA states that their aim is to ensure that Dubai in the future will be among
the top medical tourism destinations around the world.
As for the UAE health sector, the number of health facilities in Dubai is roughly 2,500 with more than 70 % of those
healthcare clinics and hospitals having internationally accreditation. With the strategy of medical tourism it is
expected that thousands of staff will be needed and new visas offered as part of the emirate’s plan to become a
major centre for medical tourism by the time Dubai hosts Expo 2020. In the next few years 18 private hospitals and
four public hospitals and clinics will be built in the emirate of Dubai.
The medical strategy is to attract patients from the CIS, including Belarus, Uzbekistan and Kazakhstan, and in South
Asia as well as neighbouring Arabian Gulf nations. Treatments to be offered include orthopaedic and sports
medicine, plastic surgery, ophthalmology, dental procedures, dermatology, preventive medicine and skin care. DHA
estimates that private healthcare staff is to increase by more than 3,800.
As this need for skilled staff can not in any way be met by local supply, this development calls for specialized
healthcare recruitment agencies and healthcare targeted contracting companies to facilitate the rising demand.
Apart from the above, not only opportunities for health care, medical equipment and prescription drugs are relevant
for Danish companies. Also food supplements and various kinds of OTC remedies are in demand.
For further information, please contact: The Royal Danish Consulate General in Dubai Edith Mathilde Estrup Christmas, Commercial Advisor Phone: +971 4 348 0877 / e-mail: [email protected]
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King Faisal Specialist Hospital; The largest hospital in Saudi
Arabia, with annual budget of SAR 8 bn.
Spotlight
Increasing Investments in the Saudi Healthcare Sector The population in Saudi Arabia is growing at a fast rate of 3.1 % annually and is a relatively young population with an
increasing life expectancy. As a result lifestyle diseases are increasing.
Currently, the population size of people above the age of 65 is approximately 1 mil. and the country has a steady but
very slow growth improvement meaning that the life expectancy for people above the age of 65 is increasing in a
slow pace. Subsequently, compared to western countries, Saudi Arabia will not have a burden on its healthcare
resulting from an aging population in the near future. Another positive development is the infant mortality rate that
is decreasing at a steady rate. In 2008 the mortality rate was 20.6 per 1,000 live births. This number is expected to be
16.7 in 2014 and to decrease further in the coming years.
The rise in the living standards in Saudi Arabia has led to an
increase in lifestyle diseases. As in many developed countries the
main causes of deaths in Saudi Arabia are cardiovascular diseases
and cancer. Furthermore, diseases as obesity, diabetes and other
non-communicable diseases are expected to become more
widespread. Young Saudis have a low exercise level and they are
adopting western eating habits in terms of a high consumption of
unhealthy food, which means that fast food restaurants are
continuing to open outlets all over the country. However, there
is a slightly growing awareness off healthy dietary habits among
elderly Saudis.
The World Health Organization (WHO) predicts that by the year 2030 there will be 2.5 mil. people with diabetes in
Saudi Arabia. WHO also states that Saudi Arabia currently is the country in the world with the highest traffic fatality
rate and has the 23rd largest consumption of cigarettes.
Saudi Arabia still needs a lot of improvement within the healthcare sector according to international standards.
Hence, the government is building five mega medical cities across the country in addition to central hospitals and
medical centers in rural areas. The governmental investment in healthcare facilities is expected to increase at least
for the next seven years.
There are about nine mil. expats living in Saudi Arabia, all of which are medically insured according to the Saudi labor
law. This gives expats easy access to good healthcare facilities. On the other hand, all Saudis have free access to
government hospitals which have better equipment and more qualified staff. In the coming 10 years the number of
hospital beds will increase by 65 %, which in turn provides good opportunities for all healthcare, medical equipment
and pharmaceutical international companies. Saudi Arabia is also in need of qualified medical staff, e.g. 75 % of all
nurses and doctors working in the country are expats. This creates lucrative work opportunities for qualified western
medical staff.
The healthcare market in Saudi Arabia is supervised by the Ministry of Health and the private sector only covers 35 %
of the market. As a result, huge investment opportunities are present for investors as the market is still unsaturated.
Uniquely, there are hospitals which are financed and supervised by the Ministry of Defense, others by the Ministry of
Interior and a third type is totally supported by the National Guard. This unique structure creates competition
amongst these organizations to equip their hospitals with the latest state of the art medical equipment and
diagnostic devices in addition to applying the most recent systems.
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The Saudi Food and Drug Authority (SFDA) is responsible for registering and approving all medical equipment and
drugs. The process of registering devices and drugs is bureaucratic and time consuming. SFDA still lacks some
efficiency which leads to delay in approvals and this is a major challenge for newcomers in the market. Having a local
partner proves necessary to overcome such logistical challenges.
Danish companies who entered the market at an early stage enjoy a very competitive position. There are still very
good opportunities for rehabilitation equipment and expertise. Aids for young people with special needs are also on
demand. Hospital management systems represent another opportunity for Danish companies. The model of the
‘super hospitals’ in Denmark could have many aspects in common with the medical cities in Saudi Arabia.
Consequently Denmark can provide training and management consultation to Saudi medical cities.
Based on feedback from an ongoing program in one of the most prestigious universities in Saudi Arabia medical
qualification programs from Denmark are highly appreciated. The Danish healthcare system is also inspirational to
the Saudi Ministry of Health which continues to extend its reach to all Saudis all over the country for free.
For further information, please contact: The Commercial Section at the Royal Danish Embassy in Riyadh Safiye Kucukkaraca – Commercial Advisor Phone: +966569302173 / e-mail: [email protected]
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Meet a Commercial Advisor in Denmark
Get a chance to meet some of the commercial advisors from the MENA region in Denmark and boost your business opportunities in the Middle East and North Africa. Date: Commercial advisor:
13.05 – 16.05 Astrid Svitzer Ching Nielsen, Royal Danish Consulate General, Dubai
14.05 – 15.05 Ahmad Mahmoud El Loubani, Royal Danish Embassy, Lebanon
14.05 – 15.05 Engy Basiouny Ahmed Metwali, Royal Danish Embassy, Cairo
18.05 – 23.05 Edith Mathilde Estrup Christmas, Royal Danish Consulate General, Dubai
02.06 – 04.06 Astrid Svitzer Ching Nielsen, Royal Danish Consulate General, Dubai
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Event Calendar
UAE:
Airport Show and Global Airport Leaders Forum
Date: May 11th – 13th 2014
Location: Dubai International Convention and Exhibition Centre
Web: www.theairportshow.com
Description: As one of the world’s largest airport-focused exhibitions, Airport Show provides an ideal B2B platform
for companies to present airport and aviation-related products and services. In 2013, the event
gathered 6,581 aviation professionals who networked, sourced their product requirements and
created USD 20 billion worth of regional business opportunities.
Middle East Waste & Recycling
Date: May 19th – 21st 2014
Location: Dubai World Trade Centre
Web: www.middleeastwaste.ae
Description: Middle East Waste & Recycling is a dedicated waste event addressing the
needs and challenges of the waste & recycling industries in the Middle East. Get the chance to meet
with the top regional suppliers of waste management and recycling products and equipment and
learn from industry leading experts about the challenges faced in the Middle East.
Hospital Build and Infrastructure Middle East 2014
Date: June 2nd – 4th 2014
Location: Dubai Internatinal Convention & Exhibition Centre
Web: www.hospitalbuild-me.com
Description: Hospital Build & Infrastructure Middle East covers the full sphere of healthcare design, construction,
innovation and management solutions. The event brings together investors, commissioners, senior
executives and planners of public and private healthcare estates. It also attracts the wider spectrum of
healthcare build and management including medical directors, department heads, facility managers as
well as consultants, contractors and developers. The forefront of healthcare design and management
will offer their updates and perspectives on current and future infrastructure projects and examine
how to set up healthcare facilities in the Middle East.
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Saudi Arabia:
Cityscape Jeddah
Date: May 4th – 6th 2014
Location: Jeddah Centre for Forums and Events
Web: www.cityscapejeddah.com
Description: Cityscape Jeddah brings the full spectrum of real estate professionals together to network and discuss
the business critical issues affecting business decisions in the Jeddah and Saudi Arabian real estate
market place. The event attracts regional and international real estate investors and financiers,
developers across all asset classes, architects and urban planners, consultants, representatives from
investment and economic agencies and cities.
Saudi Health 2014
Date: May 19th – 21st 2014
Location: Riyadh International Convention & Exhibition Center, KSA
Web: www.saudihealthexhibition.com
Description: Saudi Health Exhibition is the largest platform in the Kingdom for regional and international
healthcare stakeholders, dealers, distributors, suppliers and service providers to interact and network
with new buyers and key industry players. At the exhibition you get the chance to connect with local
government authorities, key decision-makers, investors, healthcare professionals and specialists from
across the globe.
Saudi Energy
Date: May 26th – 28th 2014
Location: Riyadh International Convention & Exhibition Center, KSA
Web: www.saudi-energy.com
Description: Saudi Energy is one of the largest energy exhibitions in the region. Visit the show and discover the
latest technologies in the power, alternative energy, lighting and water industries and get access to
hundreds of local, regional and international suppliers and distributors.
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Riyadh International Exhibition
Date: May 5th – 8th 2014
Location: Riyadh International Convention & Exhibition Center, KSA
Web: www.riyadhinterexpo.com/EN
Description: The objectives of the Riyahd International Exhibition are to show the investment trade and business
opportunities offered by the Saudi economy to your business community, to develop the level of the
economic exchange between the Kingdom of Saudi Arabia and your country, to create new markets in
the Kingdom for current and new products and services from your country, to create a venue for
further contacts and cooperation and to deepen the international cooperation in all areas, enhance
relationships and to bring views of exporters and importers closer through direct meetings at the
exhibition.
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Key economic figures for the MENA region
Population (million)
GDP per capita - Purchasing Power Parity (USD)
GDP - Real Growth Rate, Percentage change
Inflation Rate - Average Consumer Prices
Bahrain 1.2 36,039 4.7% 2.5%
Egypt 85.8 6,695 2.3% 10.7%
Iran 78.1 12,478 1.5% 23.0%
Iraq 35.8 7,702 5.9% 1.9%
Jordan 6.7 6,281 3.5% 3.0%
Kuwait 4.0 40,222 2.6% 3.4%
Lebanon 4.5 15,077 1.0% 2.0%
Oman 3.3 30,325 3.4% 2.7%
Qatar 2.2 96,992 5.1% 3.6%
Saudi Arabia
30.6 32,340 4.1% 3.0%
UAE 9.3 30,984 4.4% 2.2%
Yemen 27.5 2,399 5.1% 10.4%
Syria N/A N/A N/A N/A
Source: All figures are estimates from IMF, April 2014
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Danish companies’ entry to the Middle Eastern market The Trade Council is the official Danish Export and Investment Organisation. Its purpose is to promote and help Danish companies with matters relating to their export and internationalisation. In the Middle East, we are represented in Egypt, Iran, Iraq, Lebanon, Saudi Arabia, Syria, and the United Arab Emirates, but our network and competences cover several other markets in the region, including Kuwait, Jordan, Oman, Qatar, Bahrain, and Yemen.
Because the Middle East is a very diverse area and presents great opportunities for competitive Danish firms, your business can benefit from the Trade Council’s local knowledge and network. We offer a range of services within the commercial area and can help your business with entry, and consequent expansion, to the Middle Eastern markets.
If you or your firm is interested in more than one market in the Middle East, please contact Astrid Svitzer Ching Nielsen [email protected].
If you wish to receive this newsletter, please send an email to [email protected].
About Us
For more country specific information and contact
information, please refer to the specific websites:
EGYPT
Danish Embassy - Cairo
http://egypten.um.dk/en.aspx
IRAN
Danish Embassy - Tehran
http://iran.um.dk/en.aspx
LEBANON
Danish Embassy - Beirut
http://libanon.um.dk/en.aspx
SAUDI ARABIA
Including: Bahrain, Kuwait, Oman and Yemen
Danish Embassy - Riyadh
http://saudiarabien.um.dk/en.aspx
UNITED ARAB EMIRATES
Including: Qatar and Iraq
Royal Danish Consulate General - Dubai
http://fae.um.dk/en.aspx