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 / engmet@um.dk

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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: safkuc@um.dk

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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: ahmlou@um.dk

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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: edichr@um.dk

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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: safkuc@um.dk

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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 asthan@um.dk.

If you wish to receive this newsletter, please send an email to dxbhkt@um.dk.

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