Content

Economy

Massive development project planned for The Suez Canal Energy

Renewable Resource Atlas Launched in Saudi Arabia

Energy

Power sector developments in Kuwait

Economy

New oil and gas discoveries in Lebanese wa-

ters

Danish Foreign Services

Trade office in Erbil, Iraq

This issue’s spotlight:

The Crown Prince and the Minister of Devel-opment of Denmark visit a sustainable Abu Dhabi

Meet a commercial advisor in Denmark

Event calendar

THE TRADE COUNCIL’S

NEWSLETTER FOR THE MENA REGION February 2014

Welcome to the Regional Newsletter

Dear Reader, Welcome to the first issue in 2014 of The Trade Council’s Regional Newsletter for the MENA countries. We are pleased that you are taking the time to read our newsletter, where we aim to highlight some of the news and sectors that could be of interest for your personal and business related purposes. This edition of the Regional Newsletter will provide you with infor-mation on a severe expansion of the fiscal policy in Egypt involving an exploitation of the Suez Canal and its business opportunities. Moreover, we elaborate on the energy sector in Saudi Arabia and Ku-wait. These energy sectors are extensively focused on renewable energy as an instrument to encourage foreign investments within their respec-tive regions. Another country encouraging international investments is Lebanon, which is undergoing a shift from service into industry becoming an oil producing player in the international field of oil drilling. The Danish foreign services abroad have been undergoing radical mod-ernization reforms causing the closure of several representations, how-ever, this has also created the opportunity to set up new trade offices: In this edition you can read about our new initiative in Erbil, Iraq. The Newsletter Spotlight covers the visit from HRH Crown Prince Freder-ik and the Minister of Development from Denmark, who were signing a mutual memorandum of understanding for renewable energy and sus-tainability at WFES in Abu Dhabi. We hope that the MENA Newsletter will enlighten your knowledge about the Middle East, and we will be looking forward to a future coop-eration with you.

Astrid Svitzer Ching Nielsen Head of Commercial Section E-mail: asthan@um.dk

2

Economy

Massive development project planned for The Suez Canal

In an attempt to make Egypt live up to its former nickname “The Arab tiger on the Nile”, the Egyptian interim gov-

ernment is pursuing an expansionary fiscal policy. A key element in this strategy that aims to regain the pre-2011

growth rates and to promote social and economic equality,

are two economic stimulus packages worth USD 4.4 bn. and

USD 4.3 bn. Respectively, presented and partially imple-

mented by the Egyptian Government. Part of the second

stimulus package is an investment into a massive develop-

ment project in the Suez Canal and surrounding areas - USD

287 mil. has, this far, been allocated for preliminary studies

and infrastructure.

The 193-kilometre long Suez Canal, connecting the Mediterranean Sea and the Red Sea, is a unique East-West ship-

ping route, and 8 % of the world’s total shipping freight passes through here every year. A number the Egyptian au-

thorities are keen to increase this. A tender has, therefore, been made with 14 international joint ventures qualified

for the project. Forthcoming, a committee is going more thoroughly over the propositions, and the winner is going to

be announced in October 2014, with work set to begin on the project in 2015. The project on the Suez Canal itself

includes the development of four seaports in the three canal-bordering provinces – Suez, Ismailia and Port Said – as

well as a seaport in Al-Arish, the capital of the North Sinai governorate.

With the Suez Canal already being a focal point for international trade, a position only set to increase with the com-

ing expansion, the Egyptian authorities are looking to develop the surrounding area with a number of large scale

projects. This includes a “Technology Valley” in Ismailia, which is going to host several technology projects, as well as

a new industrial zone west of the Gulf of Suez. The idea is to make clusters of companies working in the same indus-

tries, thereby creating positive spill-over effects – as seen, for instance, in the “Silicon Valley”, California.

For further information, please contact: The Commercial Section at the Embassy of Denmark in Cairo Engy Basiouny - Head of the Commercial Section, engmet@um.dk Marwa El Tawil - Commercial Adviser, martaw@um.dk Phone: +20 2 2739 6500

Container ships passing through the Suez Canal

3

Economy

Renewable Resource Atlas Launched in Saudi Arabia

In line with its ambitious renewable energy plans Saudi Arabia has taken a vital step by launching a renewable re-

source atlas on 18th December 2013. The launch was attended by several academic entities, utility companies, indus-

try players and policy makers and, furthermore, by relevant Saudi ministers.

Prior to this launch, international companies in-

terested in the Saudi energy market had to de-

pend on data gathered mainly through satellite

observations and not on-the-ground stations.

However, this proved to be inefficient as the rate

of accuracy was inconsistent and unreliable not

meeting the standards demanded by developers.

In order to overcome this situation, King Abdullah

City for Atomic and Renewable Energy (K.A.CARE)

decided to put together a reliable and accurate

renewable resource dataset reflecting the country’s solar radiation spectrum, humidity and wind speeds in addition

to dust and atmospheric conditions. Due to the planning efforts and strategic design efforts the results of Saudi Ara-

bia’s Renewable Resource and Environmental Measurement and Monitoring (RRMM) project are now accessible via

the K.A. CARE website.

Furthermore, the atlas includes maps for Saudi Arabia’s electrical grid, roads, environmentally protected areas, pop-

ulation densities, elevations and slopes. Solar resource data will be collected at annual, monthly and daily average

levels and will be accessible publicly.

The Saudi national project is expected to attract national and international companies that are willing to engage in

initiatives for this type of investment. These initiatives are completely new to the Kingdom of Saudi Arabia.

For further information, please contact: The Commercial Section at the Royal Danish Embassy in Riyadh Safiye Kücükkaraca – Commercial Advisor Phone: +966 (0)11 488 0101 / e-mail: safkuc@um.dk

4

Energy

Power sector developments in Kuwait

The laws of Kuwait have helped private power and water schemes by making it

obligatory for all power schemes larger than 500MW to be developed as inde-

pendent water and power projects (IWPPs). Smaller power projects continue

to be carried out as lump sum turnkey projects for the Ministry of Electricity &

Water.

Following the passing of a parliamentary bill, allowing increased privatization in the power sector, there is reason to

think that Kuwait's energy sector may have turned a crucial corner. For the first time, private companies can hold a

stake in Kuwait's power sector and facilitate the channeling of foreign capital and expertise into the sector.

Kuwait's government aims to produce 10 % of its power from renewable sources by 2020, according to Eyad Ali al-

Falah, Assistant Under Secretary for Technical Services at the Ministry of Electricity & Water. The country is to collect

data on sunshine and wind speeds in order to secure its target for clean energy. As part of the five-year development

plan, the government is aiming to increase its power generation capacity to support growth in the manufacturing,

tourism and home building sectors, as well as freeing more oil for export.

The country's water distribution network will receive an overhaul following news that Kuwait's Ministry of Electricity

and Water awarded a USD 11.8 mil. contract to upgrade the network. Through the modernization project, the gov-

ernment is aiming to improve efficiency and cut costs in order to fulfil its development plans.

Another planned power linkup between grids in all GCC countries has noted down Kuwait and Qatar align their pow-

er networks and successfully test the synchronized network in preparation for the first stage of the GCC power grid

plan. This extensive commitment is crucial for Kuwait in order to reach its further goals.

In line with its vision Kuwait is fully committed to boost the clean energy production – and moreover the country

aims to save its crude for export by launching a programme to install 2GW of renewable energy capacity by 2030,

amounting to 15% of the country's electricity supply.

For further information, please contact: The Commercial Section at the Royal Danish Embassy in Riyadh Safiye Kücükkaraca – Commercial Advisor Phone: +966 (0)11 488 0101 / e-mail: safkuc@um.dk

Kuwait has launched a renewable energy

programme.

5

Economy

Business Opportunities in the Lebanese Oil and Gas Industry

Lebanon is predicted to witness a historical reshuffling of the economy and the country has the potential of seeing

substantial economic growth in the near future. The Lebanese economy will structurally change from a service ori-

ented economy to becoming a member of the oil and gas producing countries following the discovery of offshore oil

and gas reserves. Lebanon will benefit from an expected substantial rise in demand on the domestic skilled and un-

skilled workforce in the early stages of exploration, as the initial massive investments by foreign oil and gas compa-

nies to create the infrastructure, kick in prior to the

commencement of exploration operations. In addi-

tion, more than 30 different service subsectors will

need to be fully engaged in the build-up of exploration.

However, to build the necessary infrastructure, it is

estimated that foreign companies will need to invest

around USD 250 mil. for each operated block and ap-

proximately USD 1.5 bn. for the exploration, drilling

and production processes.

The Lebanese government is committed to exploit its offshore resources, even though the neighbouring countries

are much more advanced in the drilling process. Experts predict that Lebanon has higher deposits of offshore gas

than its neighbours - estimated to be around 25 trillion cubic feet. Lebanon enjoys huge oil reserves along the south-

ern coast that are classified as the most preeminent in the area. International experts’ prediction indicates that Leb-

anon will be ready to yield gas and oil in 2019.

In view of the future perspectives in the oil and gas sector and supporting industries, we encourage Danish oil and

gas related companies, logistics and service providers to grasp this opportunity. Lebanon is a newcomer to the oil

and gas production industry and will need all sorts of cooperation with foreign businesses.

For further information, please contact: The Royal Danish Embassy in Beirut Ahmad Mahmoud El Loubani – Head of Commercial Section Tel. 009611970804 Mobile: 0096170222956 / E-mail: ahmlou@um.dk

6

Danish Foreign Services

Trade office in Erbil, Iraq

The Ministry of Foreign Affairs of Denmark recently launched a large reform that is to modernise the Danish Foreign

Service abroad to match international standards.

In brief the new representation structure is based on: “More focus on the World, less on Europe – and more on the

EU”. With the new structure came what

was the end of a number of representa-

tions, but also the announcement of a

new trade office in the city Erbil in Kurdi-

stan. Denmark will now provide a sharper

representation of the Danish interests in

the Kurdish region of Iraq.

Covering some of the world's largest un-

tapped oil and natural gas reserves, the Kurdish region of Iraq is experiencing a surge in investment and construc-

tion. This new demand for business support, combined with liberal investment laws, is opening up the economy in a

part of the world where business was once reserved for people with family or political connections. Forthcoming,

this means that the need for improved infrastructure, housing and educational options will increase rapidly. Some of

these needs will be financed by reinvesting revenue from local oil production.

Danish companies find great interest in the markets of oil industry, agriculture, agro industry and food supplies as

well as social and physical infrastructure. Furthermore, the long heritage of Danish-speaking Kurds and Kurdish-

speaking Danes, and the fact that Danish products are well known in this particular region, creates a strong funda-

mental ground for future mutual business cooperation and opportunities in Iraq.

Iraq is expected to experience the largest growth rate in the world from 2010 – 2017, which indicates a lucrative

market for Danish investment initiatives. Moreover, Erbil itself is a market going through great growth, and supple-

mented by its position as gateway to the wide-ranging market of Iraq, it makes the city essential for a representation

of a Danish trade Office.

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

Aerial view of Erbil, Iraq. Kurdistan Region

7

Spotlight

The Crown Prince and the Minister of Development visit a sustainable Abu

Dhabi.

This year’s Abu Dhabi Sustainability Week was enriched with a significant Danish attendance by HRH Crown Prince

Frederik and Minister of Development Rasmus Helveg Petersen. The visit centred round the signing of a Memoran-

dum of Understanding for cooperation regarding renewable energy and sustainability.

The signing ceremony took place at a separate Dan-

ish/Emirate event after the opening ceremony of the con-

ference. The event was held under attendance of HRH

Crown Prince Frederik and the UAE foreign minister and

member of the reigning family, Sheik Abdullah bin Zayed Al-

Nahyan.

The Crown Prince opened the ceremony with a speech ac-

knowledging the UAE’s sustainable visions and furthermore

praised the effort that the country has made to convert

ambition into action. Simultaneously, the Crown Prince,

emphasized that Denmark, likewise, focuses on a green profile and, therefore, the two countries make ideal partners

for global sustainability.

The Minister of Development, Rasmus Helveg Petersen, signed the framework agreement on behalf of Denmark,

while the UAE Minister of State, Dr. Sultan al Jaber, signed on behalf of the United Arab Emirates. Dr. Sultan Al Jaber

furthermore holds the position as CEO for the government-owned prestige business, Masdar City, a city designed to

be a hub for cleantech companies and to be a sustainable zero-carbon car-free city focussing on sustainable energy -

and who, furthermore, holds the role as organiser of Sustainability Week.

The framework agreement paves the way for mutual cooperation within both commercial and research matters as

well as a strengthened cooperation between state-launched green initiatives and projects.

The agreement has already given rise to numerous significant agreements. The most advanced development exam-

ple is the cooperation of the programme “Wind for Prosperity” between Vestas and Masdar. During his speech at

Cooperation: The Danish Minister of Development, Rasmus

Helveg Petersen and Minister of UAE, Dr. Sultan Al Jaber sign-

ing the bilateral MoU.

8

the event the CEO of Vestas, Anders Runevad, emphasized that Wind for Prosperity was inspired by the bilateral

agreement between Denmark and the United Arabian Emirates.

The Minister of Development took part in a panel debate about Wind for Prosperity, arranged by Vestas, since the

program opens up to large development political perspectives: Older windmill models will be set up in the poorest

regions of the World in order to supply access to energy and thereby generate ground for further development that

combines growth and sustainability.

The Crown Prince experienced numerous samples of the Emirates´ dedication towards green adjustments during the

days in Abu Dhabi. The Crown Prince visited both SHAMS 1, which is one of the World’s largest solar cell facilities

placed in the desert of Abu Dhabi, just as he was introduced to the CO2 neutral Masdar City, accompanied by the

Danish Minister of Development.

For further information, please contact: The Royal Danish Consulate General in Dubai Astrid Svitzer Ching Nielsen – Head of Commercial Section Phone: +971 4 348 0877 / e-mail: asthan@um.dk

UAE’s sustainable flagship:

HRH Crown Prince Frederik, Danish

Minister of Development, Helveg Pe-

tersen, and Danish Ambassador, Poul

Hoiness, being introduced to the CO2-

neutral city by Masdar City by Christo-

pher D. Sorensen (on the right)

9

Events, exhibitions and other

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:

24.03 – 27.03 Vibeke Nurgberg, Royal Danish Consulate General, Dubai

24.03 – 27.03 Safiye Kücükkaraca, Royal Danish Embassy, Riyadh

28.04 – 30.04 Edit Christmas, 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

14.05 – 15.05 Astrid Svitzer Ching Nielsen, Royal Danish Consulate General, Dubai

02.06 – 04.06 Astrid Svitzer Ching Nielsen, Royal Danish Consulate General, Dubai

02.06 – 04.06 Safiye Kücükkaraca, Royal Danish Embassy, Riyadh

10

Events

UAE:

For further information, please contact: The Royal Danish Consulate General in Dubai Astrid Svitzer Ching Nielsen – Head of Commercial Section Phone: +971 4 348 0877 / e-mail: asthan@um.dk

Gulfood

Date: February 23th – 27th 2014

Location: Dubai International Convention and Exhibition Centre

Web: www.gulfood.com

Description: When you invest in Gulfood you are choosing a trade show with proven credentials. Established over

25 years, Gulfood has a well deserved reputation amongst exporters for delivering spectacular return

on investment. For the exporter seeking new sales from the Middle East, Africa and South Asia,

Gulfood provides a trade and sourcing platform without equal, where international flavours find

world-class business. Benefit from the region's premier knowledge exchange from education, training,

competitions & live events. Gulfood strives to inspire and inform.

11

Egypt

For further information, please contact: The Royal Danish Embassy in Egypt Engy Basiouny – Head of Commercial Section Phone: +20 2 2739 6500/ e-mail: engmet@um.dk

CAIRO INTERNATIONAL FAIR 47

Date: March 19th – 28th 2014

Location: Fair Ground – Nasr City, Cairo

Web: www.cairofair.com

Description: This event is a well-established multi-sectorial trade event that has been taking place for the last 46

years; providing a unique platform for marketing products and services, enabling participants from

overseas to introduce new and improved technologies to Egyptian and Middle- Eastern markets.

CIF attracts more than 800 exhibitors from 17 countries, and the number of visitors for this year was

estimated to be more than one million attendees.

12

Key economic figures for the MENA region

Population (2013)

Bahrain 1.2 million

Egypt 84.2 million

Iran 77.1 million

Iraq 34.8 million

Jordan 6.5 million

Kuwait 3.9 million

Lebanon 4.1 million

Oman 3.2 million

Qatar 1.9 million

Saudi Arabia 29.6 million

United Arab Emirates 9.0 million

Yemen 26.6 million

Syria N/A

Total 282.1 million

Source: All figures are estimates from IMF

13

Key economic figures for the MENA region

GDP per capita - Purchasing Power Parity (2013)

Bahrain USD 29,775

Egypt USD 6,553

Iran USD 12,803

Iraq USD 7,132

Jordan USD 6,115

Kuwait USD 39,647

Lebanon USD 15,832

Oman USD 29,772

Qatar USD 103,400

Saudi Arabia USD 31,309

United Arab Emirates USD 29,877

Yemen USD 2,348

Syria USD N/A

Total USD 314,563

Source: All figures are estimates from IMF

14

Key economic figures for the MENA region

GDP - Real Growth Rate, percentage change (2013)

Bahrain 4.4 %

Egypt 1.8 %

Iran -1.5 %

Iraq 3.6 %

Jordan 3.3 %

Kuwait 0.8 %

Lebanon 1.5 %

Oman 5.1 %

Qatar 5.1 %

Saudi Arabia 3.6 %

United Arab Emirates 4.0 %

Yemen 5.9 %

Syria N/A

Source: All figures are estimates from IMF

15

Key economic figures for the MENA region

Inflation rate – Average consumer Prices (2013)

Source: All figures are estimates from IMF

Bahrain 2.6 %

Egypt 6.9 %

Iran 42.3 %

Iraq 2.2 %

Jordan 5.9 %

Kuwait 3.0 %

Lebanon 6.3 %

Oman 2.8 %

Qatar 3.7 %

Saudi Arabia 3.7 %

United Arab Emirates 1.5 %

Yemen 11.9 %

Syria N/A

16

Danish companies’ entry to the Middle Eastern market The Trade Council is the official Danish Ex-port and Investment Organisation. Its pur-pose is to promote and help Danish compa-nies with matters relating to their export and internationalisation. In the Middle East, we are represented in Egypt, Iran, Iraq, Leba-non, 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, Bah-rain, 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 conse-quent expansion, to the Middle Eastern markets.

If you or your firm is interested in more than one market in the Middle East, please con-tact 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 infor-

mation, 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